UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

               Investment Company Act file number

_811-07851

Franklin Fund Allocator Series

 (Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:(650) 312-2000

Date of fiscal year end: 12/31

Date of reporting period: 12/31/20

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

December

31,

2020

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

LifeSmart

TM

Retirement

Income

Fund

2020

Retirement

Target

Fund

2025

Retirement

Target

Fund

2030

Retirement

Target

Fund

2035

Retirement

Target

Fund

2040

Retirement

Target

Fund

2045

Retirement

Target

Fund

2050

Retirement

Target

Fund

2055

Retirement

Target

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

annual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2020,

reported

first-

and

second-quarter

2020

data

indicated

the

U.S.

economy

contracted

in

response

to

the

novel

coronavirus

(COVID-19)

pandemic.

In

2020’s

third

quarter,

the

economy

recovered

substantially

based

on

increased

business

and

residential

investment

and

consumer

spending,

although

growth

slowed

in

the

fourth

quarter.

The

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

for

a

total

of

1.50%,

decreasing

the

rate

from

1.75%

to

0.25%.

The

Federal

Reserve

also

announced

broad

quantitative

easing

measures

to

aid

credit

markets

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

Global

stocks

sold

off

in

early

2020

amid

the

worldwide

economic

slowdown.

Equities

began

recovering

in

late

March

given

optimism

about

easing

lockdowns,

vaccines,

and

economic

stimulus,

and

continued

to

rebound

by

period-end

amid

successful

vaccine

trials

and

reduced

political

uncertainty.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+16.26%

(the

index

increasing

from

3,230.78

to

3,756.07).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+14.06%

(the

index

increasing

from

2,358.468

to

2,690.044).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

+7.51%

total

return

(an

index

increase

from

2,225.00

to

2,392.02),

which

includes

reinvestment

of

income

and

distributions.

4

We

recognize

the

important

role

of

financial

advisors

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

As

you

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2020

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

+18.40%

(index

total

return

resulting

in

an

increase

from

6,553.57

to

7,759.35)

and

MSCI

World

Index

+16.50%

(index

total

return

resulting

in

an

increase

from

9,979.034

to

11,625.199).

4.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

LifeSmart™

Retirement

Income

Fund

4

Franklin

LifeSmart™

2020

Retirement

Target

Fund

11

Franklin

LifeSmart™

2025

Retirement

Target

Fund

17

Franklin

LifeSmart™

2030

Retirement

Target

Fund

23

Franklin

LifeSmart™

2035

Retirement

Target

Fund

29

Franklin

LifeSmart™

2040

Retirement

Target

Fund

35

Franklin

LifeSmart™

2045

Retirement

Target

Fund

41

Franklin

LifeSmart™

2050

Retirement

Target

Fund

47

Franklin

LifeSmart™

2055

Retirement

Target

Fund

53

Financial

Highlights

and

Statements

of

Investments

59

Financial

Statements

120

Notes

to

Financial

Statements

134

Report

of

Independent

Registered

Public

Accounting

Firm

165

Tax

Information

166

Board

Members

and

Officers

170

Shareholder

Information

175

Visit

franklintempleton.com

for

fund

updates

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index

(USD),

posted

a

+16.82%

total

return

for

the

12

months

ended

December

31,

2020.

1

Stocks

fell

sharply

in

early

2020

as

many

investors

sold

equities

amid

fears

of

a

global

economic

slowdown

due

to

the

novel

coronavirus

(COVID-19)

pandemic.

Global

equities

began

to

rebound

in

late

March

2020

amid

optimism

about

easing

lockdown

restrictions,

vaccine

and

treatment

development

and

economic

stimulus

measures.

Despite

declines

in

September

and

October

due

to

geopolitical

tensions

and

rising

infection

rates,

markets

rebounded

in

November

and

December,

as

positive

sentiment

about

successful

trials

of

COVID-19

vaccines,

the

beginning

of

vaccination

programs

in

some

countries

and

apparent

resolution

of

political

uncertainty

supported

markets.

In

the

U.S.,

pandemic-related

restrictions

caused

stiff

economic

headwinds,

including

mass

layoffs

that

drove

the

unemployment

rate

to

14.8%

in

April

2020.

2

According

to

the

National

Bureau

of

Economic

Research,

the

longest

U.S.

economic

expansion

in

history

ended

in

February,

and

the

country

slipped

into

a

deep

recession.

Equities

began

to

rebound

in

the

spring

amid

the

government’s

fiscal

and

monetary

stimulus,

declining

jobless

claims,

rising

retail

sales

and

optimism

about

treatments

and

potential

vaccines

for

COVID-19.

Following

a

record

annualized

decline

in

second-quarter

gross

domestic

product

(GDP),

resilient

consumer

spending

helped

drive

third-quarter

GDP

to

expand

at

a

record

annualized

rate,

although

growth

slowed

in

the

fourth

quarter.

Equities

continued

to

rise

during

the

summer

but

declined

in

the

fall

due

to

concerns

about

possible

new

restrictions

amid

rising

COVID-19

infection

rates

and

uncertainties

about

additional

fiscal

stimulus

and

the

U.S.

presidential

election.

Despite

signs

that

the

economic

recovery

was

stalling

as

the

unemployment

rate

remained

relatively

high

(6.7%

at

period-end)

and

consumer

spending

declined,

stocks

rallied

in

November

and

December,

buoyed

by

the

outcome

of

the

U.S.

presidential

election,

the

start

of

COVID-19

vaccination

programs

and

the

passage

of

a

new

U.S.

stimulus

bill.

2

In

an

effort

to

support

the

economy,

the

U.S.

Federal

Reserve

(Fed)

lowered

the

federal

funds

target

rate

to

a

range

of

0.00%–0.25%

in

March

2020.

The

Fed

also

enacted

quantitative

easing

measures

aimed

at

ensuring

credit

flows

to

borrowers

and

supporting

credit

markets

with

open-

ended

bond

purchasing.

Furthermore,

the

Fed

signaled

that

interest

rates

would

potentially

remain

low,

even

if

inflation

moderately

exceeded

its

2%

target.

In

the

eurozone,

the

economy

contracted

again

in

the

fourth

quarter

of

2020,

following

quarter-on-quarter

expansion

in

the

third

quarter

and

contractions

in

the

first

and

second

quarters.

After

several

months

of

gains

due

to

easing

restrictions

and

robust

stimulus

measures,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index

(USD),

declined

in

September

and

October

as

rising

infection

rates

heightened

investor

concerns

that

the

nascent

economic

revival

could

stall.

Nevertheless,

successful

vaccine

development

and

a

Brexit

resolution

supported

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index

(USD),

to

post

a

+5.93%

total

return

for

the

period.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index

(USD),

posted

a

+21.30%

total

return

for

the

12

months

under

review.

1

Although

pandemic-related

lockdowns

derailed

economic

growth

in

early

2020,

sharp

market

declines

were

followed

by

rebounds

as

China’s

economy,

a

key

driver

of

the

region’s

economic

activity,

recovered

from

the

contraction

in

the

first

quarter

and

expanded

during

the

rest

of

2020.

Asian

stocks

rose

as

the

region’s

economies

reopened,

aided

by

robust

stimulus

measures

and

optimism

that

economic

revitalization

would

be

further

spurred

by

COVID-19

vaccines.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index

(USD),

posted

a

+18.69%

total

return

for

the

period,

despite

steep

pandemic-related

declines

in

early

2020,

benefiting

from

improving

economic

activity,

stabilizing

oil

prices

and

U.S.

dollar

weakness.

1

In

spite

of

higher

COVID-19

cases

in

some

countries,

emerging

market

stocks

rallied

near

the

end

of

2020,

bolstered

by

easing

political

uncertainty,

commencement

of

COVID-19

vaccinations

and

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2020

.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

2.

Source:

U.S.

Bureau

of

Labor

Statistics.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

Retirement

Income

Fund

This

annual

report

for

Franklin

LifeSmart

TM

Retirement

Income

Fund

covers

the

fiscal

year

ended

December

31,

2020.

Effective

on

or

about

January

29,

2021,

this

Fund

will

change

its

asset

allocation

so

that

its

portfolio

is

allocated

to

40%

equity

funds

and

60%

to

fixed

income

funds—aligning

it

to

the

landing

point

of

the

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

of

other

Franklin

LifeSmart

retirement

funds.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

make

monthly

distributions,

while

preserving

the

investors’

capital

over

the

long

term.

The

Fund

employs

an

asset

allocation

strategy,

combined

with

an

income

generation

strategy,

designed

for

investors

in

retirement.

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+8.40%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

30%

of

the

Fund’s

assets

are

allocated

to

equity

investments

and

70%

of

the

Fund’s

assets

are

allocated

to

fixed-income

investments.

The

underlying

funds

and

the

percentage

allocations

to

each

asset

class

may

be

changed

from

time

to

time

by

the

Fund’s

investment

manager

without

the

approval

of

shareholders,

and,

under

normal

market

conditions,

the

percentage

allocations

for

equity

and

fixed-income

funds

may

vary

up

to

10%

from

the

stated

allocations.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

The

Fund

was

able

to

successfully

meet

its

monthly

distributions

without

the

return

of

capital.

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Fixed

Income

45.4%

Domestic

Hybrid

20.6%

Domestic

Equity

11.5%

Index-Linked

Notes

9.3%

Foreign

Equity

8.1%

Foreign

Fixed

Income

2.4%

Short-Term

Investments

&

Other

Net

Assets

2.7%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).The

SOI

begins

on

page

64

.

Franklin

LifeSmart™

Retirement

Income

Fund

5

franklintempleton.com

Annual

Report

At

period-end,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

domestic

equity

fund

holding,

Franklin

LibertyQ

U.S.

Equity

ETF,

underperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI.

Our

domestic

hybrid

fund

holding,

Franklin

Income

Fund

–

Class

R6,

underperformed

both

the

MSCI

ACWI

and

the

Bloomberg

Barclays

Multiverse

Index.

The

index-linked

note

increased

the

level

of

income

the

Fund

was

able

to

generate.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

Retirement

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Income

Fund,

Class

R6

20.6%

Franklin

Liberty

U.S.

Core

Bond

ETF

19.9%

Franklin

Liberty

Investment

Grade

Corporate

ETF

8.9%

Franklin

US

Government

Securities

Fund,

Class

R6

6.8%

Franklin

LibertyQ

U.S.

Equity

ETF

6.1%

Franklin

US

Core

Equity

IU

Fund

5.4%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

4.9%

Franklin

International

Growth

Fund,

Class

R6

4.9%

Credit

Suisse

AG,

Senior

Note

4.7%

UBS

AG,

Senior

Note

4.6%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

Retirement

Income

Fund

6

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+8.40%

+2.43%

5-Year

+30.55%

+4.28%

10-Year

+59.36%

+4.18%

Advisor

1-Year

+8.75%

+8.75%

5-Year

+32.31%

+5.76%

10-Year

+63.76%

+5.06%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

3.59%

3.07%

2.41%

Advisor

4.04%

3.41%

2.72%

See

page

9

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

9

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

1/1/11–

12/31/20

)

Advisor

Class

(1/1/11

–

12/31/20

)

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investments

in

equity-linked

notes

(ELNs)

often

have

risks

similar

to

their

underlying

securities,

which

could

include

management,

market,

and,

as

applicable,

foreign

securities

and

currency

risks.

In

addition,

ELNs

are

subject

to

certain

debt

securities

risks,

such

as

interest

rate

and

credit

risks,

as

well

as

counterparty

and

liquidity

risk.

Investments

in

equity

index-linked

notes

(ILNs)

often

have

risks

similar

to

securities

in

the

underlying

index,

which

could

include

management

risk,

market

risk

and,

as

applicable,

foreign

securities

and

currency

risks.

Investments

in

derivatives

involve

costs

and

can

create

economic

leverage,

which

may

result

in

significant

volatility

and

cause

the

fund

to

participate

in

losses

(as

well

as

gains)

that

exceed

the

fund’s

initial

investment.

The

Fund

is

not

guaranteed

to

achieve

its

investment

goal

of

preserving

capital

while

making

monthly

distributions

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

In

addition,

some

of

its

distributions

may

be

treated

in

part

as

a

return

of

capital

which

will

de-

crease

shareholders’

cost

basis

in

the

Fund

and

affect

the

amount

of

any

capital

gain

or

loss

that

shareholders

realize

when

selling

or

exchanging

Fund

shares.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year,

and

could

vary

substantially

over

time.

It

is

possible

for

the

Fund

to

suffer

substantial

investment

losses

and

simultaneously

experience

additional

asset

reductions

as

a

result

of

its

distributions

to

shareholders

under

the

managed

distribution

policy.

Investors

who

hold

the

Fund

within

a

tax-advantaged

retirement

account

should

consult

their

tax

advisors

to

discuss

tax

consequences

of

receiving

cash

distributions.

In

addition,

use

of

the

Fund

or

election

of

the

option

to

receive

distribution

payments

in

cash

may

be

restricted

in

certain

retirement

plans

by

the

terms

of

the

governing

plan

documents

and/or

the

discretion

of

the

plan

administrator.

Investors

are

strongly

advised

to

consult

with

their

financial

advisor

for

assistance

before

selecting

the

appropriate

fund,

based

on

their

goals

and

personal

situations,

including

time

horizon,

retirement

income

needs,

risk

tolerance

and

tax

bracket.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

polit-

ical

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

and

other

risks

are

described

more

fully

in

the

Fund’s

prospectus.

1.

The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

As

of

May

1,

2016,

the

Fund

changed

its

name

from

Franklin

LifeSmart

2015

Retirement

Target

Date

Fund

in

connection

with

changes

to

its

strat-

egies

including,

among

other

things,

the

addition

of

an

income

generation

strategy

to

support

the

Fund’s

managed

distribution

policy.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

Net

Asset

Value

Share

Class

(Symbol)

12/31/20

12/31/19

Change

A

(FTRAX)

$11.62

$11.15

+$0.47

C

(FRTCX)

$11.48

$11.01

+$0.47

R

(FBRLX)

$11.59

$11.11

+$0.48

R6

(FLMTX)

$11.67

$11.20

+$0.47

Advisor

(FLRDX)

$11.66

$11.19

+$0.47

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

A

$0.4416

C

$0.3528

R

$0.4116

R6

$0.4776

Advisor

$0.4716

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.63%

1.28%

Advisor

0.38%

1.03%

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

December

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

12/31/20.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

Franklin

LifeSmart™

Retirement

Income

Fund

10

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,091.40

$1.58

$1,023.63

$1.52

0.30%

C

$1,000

$1,088.20

$5.45

$1,019.91

$5.28

1.04%

R

$1,000

$1,091.20

$2.41

$1,022.83

$2.33

0.46%

R6

$1,000

$1,093.60

$0.00

$1,025.14

$0.00

0.00%

Advisor

$1,000

$1,093.40

$0.26

$1,024.89

$0.25

0.05%

11

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2020

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+9.06%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

13

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Fixed

Income

42.3%

Domestic

Equity

36.1%

Foreign

Equity

15.5%

Foreign

Fixed

Income

4.4%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

71

.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

12

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

Additionally,

the

risk

indicator

triggered

the

risk-off

signal

on

April

6,

2020,

which

prompted

the

shift

from

the

Neutral

to

the

Defensive

glide

path.

It

remained

on

the

Defensive

glide

path

until

July

31,

2020,

when

the

indicator

signaled

risk-on.

Unfortunately,

as

the

market

continued

to

rally,

the

shift

to

the

Defensive

glide

path

negatively

impacted

performance.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2020

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

20.9%

Franklin

Growth

Fund,

Class

R6

10.5%

Franklin

US

Core

Equity

(IU)

Fund

9.4%

Franklin

LibertyQ

U.S.

Equity

ETF

7.7%

Franklin

Rising

Dividends

Fund,

Class

R6

5.4%

Franklin

International

Core

Equity

(IU)

Fund

4.8%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

4.3%

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

3.8%

Franklin

Liberty

Investment

Grade

Corporate

ETF

3.5%

Franklin

Liberty

International

Aggregate

Bond

ETF

3.4%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2020

Retirement

Target

Fund

13

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+9.06%

+3.05%

5-Year

+36.78%

+5.26%

Since

Inception

(7/1/13)

+55.26%

+5.25%

Advisor

1-Year

+9.39%

+9.39%

5-Year

+38.60%

+6.75%

Since

Inception

(7/1/13)

+58.41%

+6.32%

See

page

15

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

See

page

15

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

7/1/13–

12/31/20

)

Advisor

Class

(7/1/13

–

12/31/20

)

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

15

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

A

$0.2578

C

$0.1667

R

$0.2268

R6

$0.2939

Advisor

$0.2874

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.33%

Advisor

0.45%

1.08%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2020

Retirement

Target

Fund

16

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,108.50

$2.47

$1,022.79

$2.37

0.47%

C

$1,000

$1,103.80

$6.40

$1,019.05

$6.14

1.21%

R

$1,000

$1,107.10

$3.80

$1,021.53

$3.64

0.72%

R6

$1,000

$1,109.90

$0.86

$1,024.33

$0.82

0.16%

Advisor

$1,000

$1,109.50

$1.12

$1,024.08

$1.07

0.21%

17

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+10.26%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

19

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

42.5%

Domestic

Fixed

Income

34.0%

Foreign

Equity

18.5%

Foreign

Fixed

Income

3.6%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.0%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

78

.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

18

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

Additionally,

the

risk

indicator

triggered

the

risk-off

signal

on

April

6,

2020,

which

prompted

the

shift

from

the

Neutral

to

the

Defensive

glide

path.

It

remained

on

the

Defensive

glide

path

until

July

31,

2020,

when

the

indicator

signaled

risk-on.

Unfortunately,

as

the

market

continued

to

rally,

the

shift

to

the

Defensive

glide

path

negatively

impacted

performance.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Core

Bond

ETF,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2025

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

17.2%

Franklin

Growth

Fund,

Class

R6

13.0%

Franklin

U.S.

Core

Equity

(IU)

Fund

11.2%

Franklin

LibertyQ

U.S.

Equity

ETF

8.9%

Franklin

Rising

Dividends

Fund,

Class

R6

6.5%

Franklin

International

Core

Equity

(IU)

Fund

5.7%

Franklin

Liberty

US

Treasury

Bond

ETF

3.5%

Franklin

Low

Duration

Total

Return

Fund,

Class

R6,

3.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.8%

Templeton

Foreign

Fund,

Class

R6

2.7%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2025

Retirement

Target

Fund

19

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+10.26%

+4.16%

5-Year

+44.16%

+6.37%

10-Year

+89.75%

+6.02%

Advisor

1-Year

+10.51%

+10.51%

5-Year

+45.96%

+7.86%

10-Year

+94.78%

+6.89%

See

page

21

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

20

franklintempleton.com

Annual

Report

See

page

21

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

1/1/11–

12/31/20

)

Advisor

Class

(1/1/11

–

12/31/20

)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

21

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.2138

$0.2487

$0.4625

C

$0.1186

$0.2487

$0.3673

R

$0.1790

$0.2487

$0.4277

R6

$0.2519

$0.2487

$0.5006

Advisor

$0.2456

$0.2487

$0.4943

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.17%

Advisor

0.45%

0.92%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2025

Retirement

Target

Fund

22

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,129.00

$2.43

$1,022.86

$2.31

0.45%

C

$1,000

$1,125.20

$6.39

$1,019.12

$6.07

1.20%

R

$1,000

$1,127.90

$3.81

$1,021.56

$3.62

0.71%

R6

$1,000

$1,131.20

$0.83

$1,024.36

$0.79

0.16%

Advisor

$1,000

$1,130.20

$1.11

$1,024.09

$1.06

0.21%

23

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.52%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

25

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

49.5%

Domestic

Fixed

Income

24.1%

Foreign

Equity

21.9%

Foreign

Fixed

Income

2.7%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

85

.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

24

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

Additionally,

the

risk

indicator

triggered

the

risk-off

signal

on

April

6,

2020,

which

prompted

the

shift

from

the

Neutral

to

the

Defensive

glide

path.

It

remained

on

the

Defensive

glide

path

until

July

31,

2020,

when

the

indicator

signaled

risk-on.

Unfortunately,

as

the

market

continued

to

rally,

the

shift

to

the

Defensive

glide

path

negatively

impacted

performance.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2030

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund,

Class

R6

14.5%

Franklin

U.S.

Core

Equity

(IU)

Fund

13.1%

Franklin

Liberty

U.S.

Core

Bond

ETF

12.1%

Franklin

LibertyQ

U.S.

Equity

ETF

10.2%

Franklin

Rising

Dividends

Fund,

Class

R6

7.3%

Franklin

International

Core

Equity

(IU)

Fund

6.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.5%

Templeton

Foreign

Fund,

Class

R6

3.0%

Templeton

Developing

Markets

Trust,

Class

R6

2.9%

Franklin

Liberty

US

Treasury

Bond

ETF

2.4%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2030

Retirement

Target

Fund

25

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+11.52%

+5.41%

5-Year

+49.12%

+7.10%

Since

Inception

(7/1/13)

+73.06%

+6.78%

Advisor

1-Year

+11.68%

+11.68%

5-Year

+50.88%

+8.57%

Since

Inception

(7/1/13)

+76.28%

+7.85%

See

page

27

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

26

franklintempleton.com

Annual

Report

See

page

27

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

7/1/13–

12/31/20

)

Advisor

Class

(

7/1/13–

12/31/20

)

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

27

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.2202

$0.1443

$0.3645

C

$0.1255

$0.1443

$0.2698

R

$0.1871

$0.1443

$0.3314

R6

$0.2588

$0.1443

$0.4031

Advisor

$0.2527

$0.1443

$0.3970

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.39%

Advisor

0.45%

1.14%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2030

Retirement

Target

Fund

28

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,151.50

$2.40

$1,022.91

$2.25

0.44%

C

$1,000

$1,146.40

$6.42

$1,019.15

$6.04

1.19%

R

$1,000

$1,150.10

$3.73

$1,021.67

$3.50

0.69%

R6

$1,000

$1,153.40

$0.78

$1,024.41

$0.74

0.14%

Advisor

$1,000

$1,152.50

$0.99

$1,024.21

$0.93

0.18%

29

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+13.44%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

31

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

54.6%

Foreign

Equity

25.3%

Domestic

Fixed

Income

16.1%

Foreign

Fixed

Inco

me

2.3%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

92

.

Franklin

LifeSmart™t

2035

Retirement

Target

Fund

30

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

Additionally,

the

risk

indicator

triggered

the

risk-off

signal

on

April

6,

2020,

which

prompted

the

shift

from

the

Neutral

to

the

Defensive

glide

path.

It

remained

on

the

Defensive

glide

path

until

July

31,

2020,

when

the

indicator

signaled

risk-on.

Unfortunately,

as

the

market

continued

to

rally,

the

shift

to

the

Defensive

glide

path

negatively

impacted

performance.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2035

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund,

Class

R6

16.0%

Franklin

U.S.

Core

Equity

(IU)

Fund

14.5%

Franklin

LibertyQ

U.S.

Equity

ETF

11.3%

Franklin

Rising

Dividends

Fund,

Class

R6

8.1%

Franklin

Liberty

U.S.

Core

Bond

ETF

7.7%

Franklin

International

Core

Equity

(IU)

Fund

7.4%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.3%

Templeton

Developing

Markets

Trust,

Class

R6

3.6%

Templeton

Foreign

Fund,

Class

R6

3.3%

SPDR

Portfolio

S&P

500

Value

ETF

2.7%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2035

Retirement

Target

Fund

31

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+13.44%

+7.21%

5-Year

+54.62%

+7.87%

10-Year

+107.84%

+6.98%

Advisor

1-Year

+13.75%

+13.75%

5-Year

+56.73%

+9.40%

10-Year

+113.85%

+7.90%

See

page

33

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

32

franklintempleton.com

Annual

Report

See

page

33

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

1/1/11–

12/31/20

)

Advisor

Class

(1/1/11

–

12/31/20

)

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

33

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2063

$0.0037

$0.3523

$0.5623

C

$0.1125

$0.0037

$0.3523

$0.4685

R

$0.1698

$0.0037

$0.3523

$0.5258

R6

$0.2470

$0.0037

$0.3523

$0.6030

Advisor

$0.2404

$0.0037

$0.3523

$0.5964

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.24%

Advisor

0.45%

0.99%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2035

Retirement

Target

Fund

34

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,169.80

$2.43

$1,022.90

$2.27

0.45%

C

$1,000

$1,165.80

$6.46

$1,019.17

$6.03

1.19%

R

$1,000

$1,169.20

$3.76

$1,021.67

$3.50

0.69%

R6

$1,000

$1,172.60

$0.80

$1,024.40

$0.75

0.15%

Advisor

$1,000

$1,172.10

$1.06

$1,024.16

$0.99

0.19%

35

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2040

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+15.04%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

37

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

60.6%

Foreign

Equity

27.8%

Domestic

Fixed

Income

9.9%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

99

.

FranklinLifeSmart™

2040

Retirement

Target

Fund

36

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2040

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund,

Class

R6

17.8%

Franklin

U.S.

Core

Equity

(IU)

Fund

16.5%

Franklin

LibertyQ

U.S.

Equity

ETF

12.7%

Franklin

Rising

Dividends

Fund,

Class

R6

8.9%

Franklin

International

Core

Equity

(IU)

Fund

8.4%

Franklin

Liberty

U.S.

Core

Bond

ETF

4.9%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.6%

Templeton

Developing

Markets

Trust,

Class

R6

3.7%

Templeton

Foreign

Fund,

Class

R6

3.6%

SPDR

Portfolio

S&P

500

Value

ETF

3.0%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2040

Retirement

Target

Fund

37

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+15.04%

+8.72%

5-Year

+58.51%

+8.42%

Since

Inception

(7/1/13)

+85.45%

+7.77%

Advisor

1-Year

+15.33%

+15.33%

5-Year

+60.34%

+9.90%

Since

Inception

(7/1/13)

+88.96%

+8.85%

See

page

39

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

38

franklintempleton.com

Annual

Report

See

page

39

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(7/1/13

–

12/31/20

)

Advisor

Class

(7

/1/13–

12/31/20

)

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

39

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2283

$0.0262

$0.2061

$0.4606

C

$0.1303

$0.0262

$0.2061

$0.3626

R

$0.1904

$0.0262

$0.2061

$0.4227

R6

$0.2684

$0.0262

$0.2061

$0.5007

Advisor

$0.2618

$0.0262

$0.2061

$0.4941

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.56%

Advisor

0.45%

1.31%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2040

Retirement

Target

Fund

40

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,191.50

$2.37

$1,022.97

$2.19

0.43%

C

$1,000

$1,186.50

$6.48

$1,019.21

$5.99

1.18%

R

$1,000

$1,189.00

$3.72

$1,021.74

$3.44

0.68%

R6

$1,000

$1,192.80

$0.74

$1,024.46

$0.68

0.13%

Advisor

$1,000

$1,192.00

$0.94

$1,024.28

$0.87

0.17%

41

franklintempleton.com

Annual

Report

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart™

2045

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+15.76%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

43

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

65.7%

Foreign

Equity

29.2%

Domestic

Fixed

Income

3.2%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

106

.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

42

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2045

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund,

Class

R6

19.3%

Franklin

U.S.

Core

Equity

(IU)

Fund

17.6%

Franklin

LibertyQ

U.S.

Equity

ETF

13.6%

Franklin

Rising

Dividends

Fund,

Class

R6

9.6%

Franklin

International

Core

Equity

(IU)

Fund

8.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.0%

Templeton

Developing

Markets

Trust,

Class

R6

4.0%

Templeton

Foreign

Fund,

Class

R6

4.0%

SPDR

Portfolio

S&P

500

Value

ETF

3.2%

Franklin

International

Growth

Fund,

Class

R6

2.8%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2045

Retirement

Target

Fund

43

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+15.76%

+9.40%

5-Year

+60.77%

+8.73%

10-Year

+118.37%

+7.51%

Advisor

1-Year

+16.06%

+16.06%

5-Year

+62.68%

+10.22%

10-Year

+124.14%

+8.41%

See

page

45

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

44

franklintempleton.com

Annual

Report

See

page

45

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

1/1/11–

12/31/20

)

Advisor

Class

(

1/1/11–

12/31/20

)

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

45

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.1900

$0.0354

$0.3988

$0.6242

C

$0.1127

$0.0354

$0.3988

$0.5469

R

$0.1455

$0.0354

$0.3988

$0.5797

R6

$0.2317

$0.0354

$0.3988

$0.6659

Advisor

$0.2249

$0.0354

$0.3988

$0.6591

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.36%

Advisor

0.45%

1.11%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2045

Retirement

Target

Fund

46

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,203.60

$2.38

$1,022.98

$2.19

0.43%

C

$1,000

$1,199.90

$6.44

$1,019.28

$5.91

1.17%

R

$1,000

$1,202.50

$3.77

$1,021.71

$3.46

0.68%

R6

$1,000

$1,205.30

$0.72

$1,024.49

$0.66

0.13%

Advisor

$1,000

$1,205.00

$1.03

$1,024.21

$0.94

0.19%

47

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+16.22%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

49

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

66.4%

Foreign

Equity

30.6%

Domestic

Fixed

Income

1.3%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

113

.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

48

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2050

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund,

Class

R6

18.7%

Franklin

U.S.

Core

Equity

(IU)

Fund

17.5%

Franklin

LibertyQ

U.S.

Equity

ETF

14.0%

Franklin

Rising

Dividends

Fund,

Class

R6

9.5%

Franklin

International

Core

Equity

(IU)

Fund

9.3%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.1%

Templeton

Foreign

Fund,

Class

R6

4.1%

Templeton

Developing

Markets

Trust,

Class

R6

4.0%

SPDR

Portfolio

S&P

500

Value

ETF

3.3%

Vanguard

S&P

500

ETF

3.3%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2050

Retirement

Target

Fund

49

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+16.22%

+9.79%

5-Year

+61.39%

+8.80%

Since

Inception

(7/1/13)

+89.79%

+8.10%

Advisor

1-Year

+16.54%

+16.54%

5-Year

+63.45%

+10.33%

Since

Inception

(7/1/13)

+93.82%

+9.22%

See

page

51

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

50

franklintempleton.com

Annual

Report

See

page

51

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

7/1/13–

12/31/20

)

Advisor

Class

(7/1/13–

12/31/20

)

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

51

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2229

$0.0244

$0.2016

$0.4489

C

$0.1452

$0.0244

$0.2016

$0.3712

R

$0.1860

$0.0244

$0.2016

$0.4120

R6

$0.2636

$0.0244

$0.2016

$0.4896

Advisor

$0.2566

$0.0244

$0.2016

$0.4826

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.73%

Advisor

0.45%

1.48%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2050

Retirement

Target

Fund

52

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,207.20

$2.37

$1,022.99

$2.17

0.43%

C

$1,000

$1,203.10

$6.50

$1,019.23

$5.96

1.17%

R

$1,000

$1,206.30

$3.74

$1,021.75

$3.43

0.67%

R6

$1,000

$1,210.00

$0.70

$1,024.51

$0.64

0.13%

Advisor

$1,000

$1,209.70

$0.99

$1,024.24

$0.91

0.18%

53

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2020.

Effective

on

or

about

January

29,

2021,

this

Fund

will

modify

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Additionally,

the

Fund

will

change

its

primary

equity

benchmark

from

MSCI

All

Country

World

Index

(ACWI)

gross

of

taxes

on

dividends

to

MSCI

ACWI

net

of

taxes

on

dividends.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

five

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+15.95%

cumulative

total

return

for

the

12

months

ended

December

31,

2020.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.82%

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

55

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

five

years

after

the

stated

target

date.

At

approximately

five

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

66.2%

Foreign

Equity

30.5%

Domestic

Fixed

Income

1.4%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

119

.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

54

franklintempleton.com

Annual

Report

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

value

fund

holding,

Franklin

Rising

Dividends

Fund

–

Class

R6,

performed

in

line

with

the

Fund’s

equity

benchmark,

the

MSCI

ACWI,

and

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

iShares

Core

U.S.

Aggregate

Bond

ETF,

underperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2055

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund,

Class

R6

18.8%

Franklin

US

Core

Equity

(IU)

Fund

17.4%

Franklin

LibertyQ

U.S.

Equity

ETF

13.9%

Franklin

Rising

Dividends

Fund,

Class

R6

9.4%

Franklin

International

Core

Equity

(IU)

Fund

9.2%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.0%

Templeton

Foreign

Fund,

Class

R6

4.3%

Templeton

Developing

Markets

Trust,

Class

R6

4.0%

SPDR

Portfolio

S&P

500

Value

ETF

3.3%

Vanguard

S&P

500

ETF

3.3%

Performance

Summary

as

of

December

31,

2020

Franklin

LifeSmart™

2055

Retirement

Target

Fund

55

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+15.95%

+9.58%

5-Year

+61.40%

+8.82%

Since

Inception

(5/1/15)

+52.69%

+6.69%

Advisor

1-Year

+16.19%

+16.19%

5-Year

+63.26%

+10.30%

Since

Inception

(5/1/15)

+54.49%

+7.98%

See

page

57

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

56

franklintempleton.com

Annual

Report

See

page

57

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(

5/1/15–

12/31/20

)

Advisor

Class

(5/1/15–

12/31/20

)

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

57

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/21.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

Morningstar.

The

MSCI

ACWI

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high

yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.1870

$0.0011

$0.1016

$0.2897

C

$0.1242

$0.0011

$0.1016

$0.2269

R

$0.1547

$0.0011

$0.1016

$0.2574

R6

$0.2203

$0.0011

$0.1016

$0.3230

Advisor

$0.2131

$0.0011

$0.1016

$0.3158

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

2.87%

Advisor

0.45%

2.62%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2055

Retirement

Target

Fund

58

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,207.80

$2.38

$1,022.98

$2.18

0.43%

C

$1,000

$1,202.10

$6.52

$1,019.22

$5.98

1.18%

R

$1,000

$1,205.60

$3.74

$1,021.75

$3.42

0.67%

R6

$1,000

$1,209.20

$0.72

$1,024.49

$0.66

0.13%

Advisor

$1,000

$1,207.90

$1.08

$1,024.16

$0.99

0.19%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

59

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.15

$10.35

$11.06

$10.96

$10.78

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.39

0.43

0.50

0.43

0.27

Net

realized

and

unrealized

gains

(losses)

...........

0.52

0.79

(0.77)

0.10

0.28

Total

from

investment

operations

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

0.91

1.22

(0.27)

0.53

0.55

Less

distributions

from:

Net

investment

income

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

(0.44)

(0.42)

(0.44)

(0.43)

(0.28)

Net

realized

gains

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

—

—

—

—

(0.05)

Tax

return

of

capital

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

—

—

—

—

(0.04)

Total

distributions

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

(0.44)

(0.42)

(0.44)

(0.43)

(0.37)

Net

asset

value,

end

of

year

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

$11.62

$11.15

$10.35

$11.06

$10.96

Total

return

d

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

8.40%

11.93%

(2.48)%

4.84%

5.25%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.94%

0.95%

0.90%

0.92%

0.90%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.30%

f

0.30%

f

0.30%

f

0.30%

f

0.30%

Net

investment

income

c

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

3.56%

3.91%

4.63%

3.89%

2.50%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$40,343

$34,363

$31,461

$32,397

$39,713

Portfolio

turnover

rate

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

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.01

$10.23

$10.92

$10.83

$10.66

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.30

0.34

0.42

0.34

0.19

Net

realized

and

unrealized

gains

(losses)

...........

0.52

0.78

(0.76)

0.10

0.28

Total

from

investment

operations

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

0.82

1.12

(0.34)

0.44

0.47

Less

distributions

from:

Net

investment

income

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

(0.35)

(0.34)

(0.35)

(0.35)

(0.22)

Net

realized

gains

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

—

—

—

—

(0.05)

Tax

return

of

capital

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

—

—

—

—

(0.03)

Total

distributions

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

(0.35)

(0.34)

(0.35)

(0.35)

(0.30)

Net

asset

value,

end

of

year

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

$11.48

$11.01

$10.23

$10.92

$10.83

Total

return

d

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

7.62%

11.14%

(3.29)%

4.07%

4.50%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.69%

1.69%

1.65%

1.67%

1.64%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.05%

f

1.04%

f

1.05%

f

1.05%

f

1.04%

Net

investment

income

c

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

2.80%

3.17%

3.88%

3.14%

1.76%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$9,355

$10,568

$11,796

$16,070

$17,570

Portfolio

turnover

rate

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

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

61

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.11

$10.31

$11.01

$10.92

$10.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.37

0.40

0.48

0.40

0.25

Net

realized

and

unrealized

gains

(losses)

...........

0.52

0.79

(0.77)

0.09

0.28

Total

from

investment

operations

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

0.89

1.19

(0.29)

0.49

0.53

Less

distributions

from:

Net

investment

income

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

(0.41)

(0.39)

(0.41)

(0.40)

(0.26)

Net

realized

gains

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

—

—

—

—

(0.05)

Tax

return

of

capital

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

—

—

—

—

(0.04)

Total

distributions

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

(0.41)

(0.39)

(0.41)

(0.40)

(0.35)

Net

asset

value,

end

of

year

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

$11.59

$11.11

$10.31

$11.01

$10.92

Total

return

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

8.22%

11.69%

(2.67)%

4.57%

4.94%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.11%

1.16%

1.11%

1.17%

1.15%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.47%

e

0.51%

e

0.51%

e

0.55%

e

0.55%

Net

investment

income

c

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

3.39%

3.70%

4.42%

3.64%

2.25%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,108

$2,336

$2,876

$4,071

$4,920

Portfolio

turnover

rate

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

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.20

$10.40

$11.11

$11.01

$10.82

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.43

0.47

0.54

0.47

0.30

Net

realized

and

unrealized

gains

(losses)

...........

0.52

0.78

(0.78)

0.10

0.29

Total

from

investment

operations

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

0.95

1.25

(0.24)

0.57

0.59

Less

distributions

from:

Net

investment

income

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

(0.48)

(0.45)

(0.47)

(0.47)

(0.31)

Net

realized

gains

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

—

—

—

—

(0.05)

Tax

return

of

capital

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

—

—

—

—

(0.04)

Total

distributions

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

(0.48)

(0.45)

(0.47)

(0.47)

(0.40)

Net

asset

value,

end

of

year

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

$11.67

$11.20

$10.40

$11.11

$11.01

Total

return

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

8.81%

12.20%

(2.16)%

5.14%

5.60%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.58%

0.59%

0.54%

0.52%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

—%

e

—%

e

—%

e

—%

e

—%

Net

investment

income

c

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

3.84%

4.21%

4.93%

4.19%

2.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,092

$2,043

$1,798

$4,031

$3,930

Portfolio

turnover

rate

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

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

63

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.19

$10.39

$11.10

$11.00

$10.81

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.42

0.46

0.53

0.46

0.29

Net

realized

and

unrealized

gains

(losses)

...........

0.52

0.79

(0.77)

0.10

0.29

Total

from

investment

operations

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

0.94

1.25

(0.24)

0.56

0.58

Less

distributions

from:

Net

investment

income

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

(0.47)

(0.45)

(0.47)

(0.46)

(0.30)

Net

realized

gains

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

—

—

—

—

(0.05)

Tax

return

of

capital

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

—

—

—

—

(0.04)

Total

distributions

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

(0.47)

(0.45)

(0.47)

(0.46)

(0.39)

Net

asset

value,

end

of

year

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

$11.66

$11.19

$10.39

$11.10

$11.00

Total

return

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

8.75%

12.16%

(2.21)%

5.09%

5.55%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.69%

0.70%

0.65%

0.67%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.05%

e

0.05%

e

0.05%

e

0.05%

e

0.05%

Net

investment

income

c

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

3.83%

4.16%

4.88%

4.14%

2.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,021

$1,875

$1,409

$2,122

$1,696

Portfolio

turnover

rate

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

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

88.0%

Domestic

Equity

11.5%

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

92,917

$

3,520,625

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

250,409

3,140,134

6,660,759

Domestic

Fixed

Income

45.4%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

42,375

1,128,022

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

189,700

5,137,342

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

440,911

11,529,824

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

114,775

2,864,210

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

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

645,579

3,944,487

Schwab

U.S.

TIPS

ETF

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

27,800

1,725,824

26,329,709

Domestic

Hybrid

20.6%

a

Franklin

Income

Fund,

Class

R6

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

5,237,792

11,942,166

Foreign

Equity

8.1%

a

Franklin

International

Growth

Fund,

Class

R6

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

129,958

2,809,700

a

Templeton

Developing

Markets

Trust,

Class

R6

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

24,435

616,505

a

Templeton

Foreign

Fund,

Class

R6

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

181,929

1,273,505

4,699,710

Foreign

Fixed

Income

2.4%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

42,475

1,085,024

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

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

2,350

272,388

1,357,412

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$47,777,640)

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

50,989,756

Units

a

a

a

a

b

Index-Linked

Notes

9.3%

Capital

Markets

9.3%

c,d

Credit

Suisse

AG,

Senior

Note,

144A,

11.06%,

2/08/21

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

800

2,694,768

c,d

UBS

AG,

Senior

Note,

144A,

0%,

5/07/21

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

2,500

2,678,725

5,373,493

Total

Index-Linked

Notes

(Cost

$4,911,880)

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

5,373,493

Total

Long

Term

Investments

(Cost

$52,689,520)

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

56,363,249

a

a

a

a

a

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

65

Short

Term

Investments

2.2%

a

a

Shares

a

Value

a

Money

Market

Funds

2.2%

a,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

1,298,368

$

1,298,368

Total

Money

Market

Funds

(Cost

$1,298,368)

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

1,298,368

Total

Short

Term

Investments

(Cost

$1,298,368

)

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

1,298,368

a

Total

Investments

(Cost

$53,987,888)

99.5%

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

$57,661,617

Other

Assets,

less

Liabilities

0.5%

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

257,301

Net

Assets

100.0%

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

$57,918,918

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(c)

regarding

index-linked

notes.

c

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2020,

the

aggregate

value

of

these

securities

was

$5,373,493,

representing

9.3%

of

net

assets.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.17

$11.00

$11.76

$10.68

$10.61

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.19

0.29

0.35

0.18

0.13

Net

realized

and

unrealized

gains

(losses)

...........

0.89

1.18

(0.79)

1.05

0.19

Total

from

investment

operations

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

1.08

1.47

(0.44)

1.23

0.32

Less

distributions

from:

Net

investment

income

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

(0.26)

(0.30)

(0.32)

(0.15)

(0.17)

Net

realized

gains

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

—

—

—

—

(0.08)

Total

distributions

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

(0.26)

(0.30)

(0.32)

(0.15)

(0.25)

Net

asset

value,

end

of

year

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

$12.99

$12.17

$11.00

$11.76

$10.68

Total

return

d

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

9.06%

13.43%

(3.78)%

11.53%

3.03%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.98%

0.97%

0.94%

1.02%

0.98%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.47%

f

0.35%

0.30%

0.30%

0.30%

Net

investment

income

c

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

1.61%

2.47%

2.92%

1.58%

1.25%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$30,265

$27,016

$24,108

$20,289

$19,292

Portfolio

turnover

rate

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

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

67

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.09

$10.93

$11.69

$10.62

$10.56

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.10

0.20

0.24

0.10

0.05

Net

realized

and

unrealized

gains

(losses)

...........

0.89

1.17

(0.76)

1.03

0.18

Total

from

investment

operations

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

0.99

1.37

(0.52)

1.13

0.23

Less

distributions

from:

Net

investment

income

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

(0.17)

(0.21)

(0.24)

(0.06)

(0.09)

Net

realized

gains

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

—

—

—

—

(0.08)

Total

distributions

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

(0.17)

(0.21)

(0.24)

(0.06)

(0.17)

Net

asset

value,

end

of

year

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

$12.91

$12.09

$10.93

$11.69

$10.62

Total

return

d

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

8.29%

12.59%

(4.53)%

10.69%

2.29%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.73%

1.72%

1.69%

1.77%

1.73%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.22%

f

1.10%

1.05%

1.05%

1.05%

Net

investment

income

c

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

0.85%

1.72%

2.17%

0.83%

0.50%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$7,118

$6,811

$6,364

$6,287

$5,138

Portfolio

turnover

rate

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

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.16

$10.99

$11.75

$10.66

$10.59

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.16

0.26

0.29

0.12

0.10

Net

realized

and

unrealized

gains

(losses)

...........

0.89

1.17

(0.76)

1.08

0.18

Total

from

investment

operations

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

1.05

1.43

(0.47)

1.20

0.28

Less

distributions

from:

Net

investment

income

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

(0.23)

(0.26)

(0.29)

(0.11)

(0.13)

Net

realized

gains

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

—

—

—

—

(0.08)

Total

distributions

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

(0.23)

(0.26)

(0.29)

(0.11)

(0.21)

Net

asset

value,

end

of

year

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

$12.98

$12.16

$10.99

$11.75

$10.66

Total

return

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

8.79%

13.25%

(4.14)%

11.26%

2.74%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.23%

1.22%

1.19%

1.27%

1.23%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.72%

e

0.60%

0.55%

0.55%

0.55%

Net

investment

income

c

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

1.35%

2.22%

2.67%

1.33%

1.00%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$786

$745

$767

$969

$3,145

Portfolio

turnover

rate

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

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.20

$11.02

$11.79

$10.70

$10.64

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.22

0.32

0.37

0.21

0.17

Net

realized

and

unrealized

gains

(losses)

...........

0.90

1.19

(0.78)

1.06

0.17

Total

from

investment

operations

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

1.12

1.51

(0.41)

1.27

0.34

Less

distributions

from:

Net

investment

income

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

(0.29)

(0.33)

(0.36)

(0.18)

(0.20)

Net

realized

gains

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

—

—

—

—

(0.08)

Total

distributions

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

(0.29)

(0.33)

(0.36)

(0.18)

(0.28)

Net

asset

value,

end

of

year

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

$13.03

$12.20

$11.02

$11.79

$10.70

Total

return

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

9.45%

13.83%

(3.57)%

11.93%

3.33%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.62%

0.60%

0.58%

0.59%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.16%

e

0.05%

—%

—%

—%

Net

investment

income

c

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

1.83%

2.77%

3.22%

1.88%

1.55%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,855

$7,429

$8,562

$8,831

$6,670

Portfolio

turnover

rate

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

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.20

$11.03

$11.79

$10.70

$10.63

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.22

0.32

0.35

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

...........

0.90

1.17

(0.76)

1.04

0.18

Total

from

investment

operations

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

1.12

1.49

(0.41)

1.27

0.34

Less

distributions

from:

Net

investment

income

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

(0.29)

(0.32)

(0.35)

(0.18)

(0.19)

Net

realized

gains

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

—

—

—

—

(0.08)

Total

distributions

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

(0.29)

(0.32)

(0.35)

(0.18)

(0.27)

Net

asset

value,

end

of

year

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

$13.03

$12.20

$11.03

$11.79

$10.70

Total

return

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

9.39%

13.77%

(3.62)%

11.88%

3.28%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.73%

0.72%

0.69%

0.77%

0.73%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.21%

e

0.10%

0.05%

0.05%

0.05%

Net

investment

income

c

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

1.80%

2.72%

3.17%

1.83%

1.50%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$685

$745

$637

$691

$317

Portfolio

turnover

rate

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

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

9,525

$

187,254

Domestic

Equity

36.1%

a

Franklin

Growth

Fund,

Class

R6

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

33,735

4,577,804

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

88,412

3,349,931

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

29,735

2,381,190

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

327,134

4,102,258

SPDR

Portfolio

S&P

500

Value

ETF

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

23,075

793,549

Vanguard

S&P

500

ETF

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

1,550

532,719

15,737,451

Domestic

Fixed

Income

42.3%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

21,354

568,443

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

56,575

1,532,130

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

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

15,225

1,457,794

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

349,319

9,134,692

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

75,275

1,878,488

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

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

173,096

1,679,031

iShares

Core

U.S.

Aggregate

Bond

ETF

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

10,958

1,295,126

Schwab

U.S.

TIPS

ETF

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

15,375

954,480

18,500,184

Foreign

Equity

15.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

86,786

1,009,327

a

Franklin

FTSE

China

ETF

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

6,075

193,240

a

Franklin

FTSE

Europe

ETF

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

25,922

675,662

a

Franklin

FTSE

Japan

ETF

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

11,744

349,736

a

Franklin

International

Core

Equity

(IU)

Fund

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

177,994

2,107,449

a

Franklin

International

Growth

Fund,

Class

R6

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

32,501

702,671

a

Templeton

Developing

Markets

Trust,

Class

R6

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

32,205

812,524

a

Templeton

Foreign

Fund,

Class

R6

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

138,694

970,861

6,821,470

Foreign

Fixed

Income

4.4%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

58,000

1,481,610

a

Templeton

Global

Total

Return

Fund,

Class

R6

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

43,087

430,004

1,911,614

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$37,293,385)

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

43,157,973

a

a

a

a

Short

Term

Investments

0.7%

a

Money

Market

Funds

0.3%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

153,283

153,283

Total

Money

Market

Funds

(Cost

$153,283)

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

153,283

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.4%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$160,414)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$102,479)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$30,607)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$27,328)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$163,641)

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

$

160,413

$

160,413

Total

Repurchase

Agreements

(Cost

$160,413)

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

160,413

Total

Short

Term

Investments

(Cost

$313,696

)

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

313,696

a

Total

Investments

(Cost

$37,607,081)

99.4%

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

$43,471,669

Other

Assets,

less

Liabilities

0.6%

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

236,983

Net

Assets

100.0%

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

$43,708,652

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

73

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.98

$11.52

$12.97

$11.49

$11.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.20

0.27

0.32

0.19

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.08

1.66

(1.02)

1.52

0.19

Total

from

investment

operations

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

1.28

1.93

(0.70)

1.71

0.33

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.21)

(0.28)

(0.33)

(0.23)

(0.13)

Net

realized

gains

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

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

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

(0.46)

(0.47)

(0.75)

(0.23)

(0.28)

Net

asset

value,

end

of

year

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

$13.80

$12.98

$11.52

$12.97

$11.49

Total

return

d

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

10.26%

16.85%

(5.46)%

14.95%

2.96%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.77%

0.80%

0.77%

0.80%

0.76%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.45%

f

0.35%

0.30%

f

0.30%

0.30%

Net

investment

income

c

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

1.53%

2.15%

2.41%

1.52%

1.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$96,973

$86,084

$76,050

$77,510

$74,746

Portfolio

turnover

rate

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

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.76

$11.34

$12.77

$11.32

$11.27

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.17

0.20

0.09

0.05

Net

realized

and

unrealized

gains

(losses)

...........

1.08

1.62

(0.97)

1.50

0.20

Total

from

investment

operations

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

1.17

1.79

(0.77)

1.59

0.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.12)

(0.18)

(0.24)

(0.14)

(0.05)

Net

realized

gains

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

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

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

(0.37)

(0.37)

(0.66)

(0.14)

(0.20)

Net

asset

value,

end

of

year

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

$13.56

$12.76

$11.34

$12.77

$11.32

Total

return

d

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

9.44%

15.90%

(6.12)%

14.06%

2.21%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.51%

1.55%

1.51%

1.55%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.20%

f

1.10%

1.04%

f

1.05%

1.05%

Net

investment

income

c

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

0.76%

1.40%

1.67%

0.77%

0.43%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$21,991

$23,450

$21,907

$27,301

$26,401

Portfolio

turnover

rate

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

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

75

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.93

$11.48

$12.93

$11.44

$11.40

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.16

0.23

0.26

0.14

0.11

Net

realized

and

unrealized

gains

(losses)

...........

1.09

1.65

(0.99)

1.54

0.19

Total

from

investment

operations

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

1.25

1.88

(0.73)

1.68

0.30

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.18)

(0.24)

(0.30)

(0.19)

(0.11)

Net

realized

gains

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

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

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

(0.43)

(0.43)

(0.72)

(0.19)

(0.26)

Net

asset

value,

end

of

year

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

$13.75

$12.93

$11.48

$12.93

$11.44

Total

return

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

10.00%

16.52%

(5.73)%

14.73%

2.65%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.02%

1.05%

1.02%

1.05%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.70%

e

0.60%

0.55%

e

0.55%

0.55%

Net

investment

income

c

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

1.24%

1.90%

2.16%

1.27%

0.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,117

$3,930

$4,510

$6,166

$7,411

Portfolio

turnover

rate

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

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.02

$11.56

$13.01

$11.52

$11.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.31

0.34

0.23

0.17

Net

realized

and

unrealized

gains

(losses)

...........

1.10

1.65

(1.00)

1.53

0.20

Total

from

investment

operations

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

1.33

1.96

(0.66)

1.76

0.37

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.25)

(0.31)

(0.37)

(0.27)

(0.17)

Net

realized

gains

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

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

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

(0.50)

(0.50)

(0.79)

(0.27)

(0.32)

Net

asset

value,

end

of

year

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

$13.85

$13.02

$11.56

$13.01

$11.52

Total

return

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

10.64%

17.14%

(5.15)%

15.34%

3.24%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.39%

0.41%

0.38%

0.37%

0.37%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.15%

e

0.05%

—%

e

—%

—%

Net

investment

income

c

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

1.83%

2.45%

2.71%

1.82%

1.48%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$16,094

$14,717

$14,228

$17,009

$13,936

Portfolio

turnover

rate

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

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

77

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.01

$11.55

$13.00

$11.51

$11.46

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.30

0.33

0.23

0.17

Net

realized

and

unrealized

gains

(losses)

...........

1.07

1.66

(1.00)

1.52

0.19

Total

from

investment

operations

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

1.31

1.96

(0.67)

1.75

0.36

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.24)

(0.31)

(0.36)

(0.26)

(0.16)

Net

realized

gains

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

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

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

(0.49)

(0.50)

(0.78)

(0.26)

(0.31)

Net

asset

value,

end

of

year

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

$13.83

$13.01

$11.55

$13.00

$11.51

Total

return

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

10.51%

17.09%

(5.20)%

15.30%

3.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.52%

0.55%

0.52%

0.55%

0.51%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.20%

e

0.10%

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.90%

2.40%

2.66%

1.77%

1.43%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,872

$1,532

$1,449

$1,866

$1,381

Portfolio

turnover

rate

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

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.0%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

29,825

$

586,336

Domestic

Equity

42.5%

a

Franklin

Growth

Fund,

Class

R6

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

134,907

18,306,866

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

332,071

12,582,170

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

113,748

9,108,959

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,259,177

15,790,078

SPDR

Portfolio

S&P

500

Value

ETF

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

86,575

2,977,314

Vanguard

S&P

500

ETF

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

3,350

1,151,362

59,916,749

Domestic

Fixed

Income

34.0%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

54,126

1,440,834

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

139,375

3,774,470

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

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

37,650

3,604,988

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

928,201

24,272,456

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

196,150

4,894,923

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

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

452,634

4,390,545

iShares

Core

U.S.

Aggregate

Bond

ETF

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

26,960

3,186,402

Schwab

U.S.

TIPS

ETF

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

37,500

2,328,000

47,892,618

Foreign

Equity

18.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

339,435

3,947,628

a

Franklin

FTSE

China

ETF

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

23,400

744,331

a

Franklin

FTSE

Europe

ETF

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

95,796

2,496,942

a

Franklin

FTSE

Japan

ETF

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

44,455

1,323,870

a

Franklin

International

Core

Equity

(IU)

Fund

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

676,304

8,007,443

a

Franklin

International

Growth

Fund,

Class

R6

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

125,858

2,721,050

a

Templeton

Developing

Markets

Trust,

Class

R6

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

124,746

3,147,351

a

Templeton

Foreign

Fund,

Class

R6

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

540,532

3,783,721

26,172,336

Foreign

Fixed

Income

3.6%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

143,550

3,666,985

a

Templeton

Global

Total

Return

Fund,

Class

R6

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

134,957

1,346,867

5,013,852

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$114,157,173)

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

139,581,891

a

a

a

a

Short

Term

Investments

1.2%

a

Money

Market

Funds

0.6%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

910,873

910,873

Total

Money

Market

Funds

(Cost

$910,873)

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

910,873

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

79

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.6%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$778,884)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$497,582)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$148,611)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$132,691)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$794,551)

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

$

778,879

$

778,879

Total

Repurchase

Agreements

(Cost

$778,879)

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

778,879

Total

Short

Term

Investments

(Cost

$1,689,752

)

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

1,689,752

a

Total

Investments

(Cost

$115,846,925)

100.2%

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

$141,271,643

Other

Assets,

less

Liabilities

(0.2)%

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

(224,664)

Net

Assets

100.0%

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

$141,046,979

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.28

$11.50

$12.70

$11.08

$10.95

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.19

0.25

0.29

0.19

0.13

Net

realized

and

unrealized

gains

(losses)

...........

1.29

1.90

(1.09)

1.65

0.19

Total

from

investment

operations

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

1.48

2.15

(0.80)

1.84

0.32

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.23)

(0.32)

(0.22)

(0.09)

Net

realized

gains

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

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

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

(0.36)

(0.37)

(0.40)

(0.22)

(0.19)

Net

asset

value,

end

of

year

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

$14.40

$13.28

$11.50

$12.70

$11.08

Total

return

d

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

11.52%

18.80%

(6.32)%

16.73%

2.93%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.95%

1.02%

0.98%

1.08%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.44%

f

0.34%

f

0.30%

f

0.30%

0.30%

Net

investment

income

c

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

1.46%

1.96%

2.24%

1.60%

1.17%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$34,019

$27,248

$22,447

$19,270

$16,788

Portfolio

turnover

rate

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

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

81

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.13

$11.37

$12.56

$10.97

$10.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.15

0.18

0.11

0.05

Net

realized

and

unrealized

gains

(losses)

...........

1.27

1.89

(1.06)

1.63

0.17

Total

from

investment

operations

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

1.36

2.04

(0.88)

1.74

0.22

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.13)

(0.14)

(0.23)

(0.15)

(0.01)

Net

realized

gains

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

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

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

(0.27)

(0.28)

(0.31)

(0.15)

(0.11)

Net

asset

value,

end

of

year

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

$14.22

$13.13

$11.37

$12.56

$10.97

Total

return

d

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

10.60%

17.98%

(7.02)%

15.89%

2.08%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.70%

1.77%

1.73%

1.83%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.19%

f

1.09%

f

1.05%

f

1.05%

1.05%

Net

investment

income

c

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

0.71%

1.21%

1.49%

0.85%

0.42%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$10,937

$9,146

$7,460

$7,642

$5,127

Portfolio

turnover

rate

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

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.27

$11.48

$12.68

$11.06

$10.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.15

0.22

0.23

0.15

0.10

Net

realized

and

unrealized

gains

(losses)

...........

1.29

1.91

(1.06)

1.65

0.18

Total

from

investment

operations

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

1.44

2.13

(0.83)

1.80

0.28

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.19)

(0.20)

(0.29)

(0.18)

(0.06)

Net

realized

gains

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

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

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

(0.33)

(0.34)

(0.37)

(0.18)

(0.16)

Net

asset

value,

end

of

year

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

$14.38

$13.27

$11.48

$12.68

$11.06

Total

return

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

11.17%

18.64%

(6.59)%

16.39%

2.60%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.20%

1.27%

1.23%

1.33%

1.27%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.69%

e

0.59%

e

0.55%

e

0.55%

0.55%

Net

investment

income

c

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

1.19%

1.71%

1.99%

1.35%

0.92%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,186

$1,058

$816

$1,148

$1,398

Portfolio

turnover

rate

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

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

83

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.34

$11.54

$12.74

$11.12

$10.99

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.29

0.32

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

...........

1.29

1.92

(1.08)

1.65

0.19

Total

from

investment

operations

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

1.52

2.21

(0.76)

1.88

0.35

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.27)

(0.36)

(0.26)

(0.12)

Net

realized

gains

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

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

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

(0.40)

(0.41)

(0.44)

(0.26)

(0.22)

Net

asset

value,

end

of

year

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

$14.46

$13.34

$11.54

$12.74

$11.12

Total

return

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

11.80%

19.26%

(6.02)%

17.01%

3.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.50%

0.53%

0.52%

0.54%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.15%

e

0.04%

e

—%

e

—%

—%

Net

investment

income

c

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

1.72%

2.26%

2.54%

1.90%

1.47%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$23,717

$22,064

$18,389

$18,260

$14,455

Portfolio

turnover

rate

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

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.33

$11.53

$12.73

$11.11

$10.98

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.28

0.31

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.28

1.92

(1.08)

1.64

0.19

Total

from

investment

operations

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

1.51

2.20

(0.77)

1.87

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.26)

(0.35)

(0.25)

(0.11)

Net

realized

gains

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

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

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

(0.40)

(0.40)

(0.43)

(0.25)

(0.21)

Net

asset

value,

end

of

year

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

$14.44

$13.33

$11.53

$12.73

$11.11

Total

return

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

11.68%

19.22%

(6.08)%

16.97%

3.15%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.70%

0.77%

0.73%

0.83%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.19%

e

0.09%

e

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.74%

2.21%

2.49%

1.85%

1.42%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,546

$997

$785

$662

$332

Portfolio

turnover

rate

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

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

85

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

14,475

$

284,567

Domestic

Equity

49.5%

a

Franklin

Growth

Fund,

Class

R6

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

76,239

10,345,578

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

192,428

7,291,097

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

65,496

5,244,910

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

745,783

9,352,120

SPDR

Portfolio

S&P

500

Value

ETF

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

49,850

1,714,342

Vanguard

S&P

500

ETF

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

4,100

1,409,129

35,357,176

Domestic

Fixed

Income

24.1%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

19,661

523,376

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

50,519

1,368,125

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

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

13,956

1,336,287

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

329,336

8,612,136

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

69,490

1,734,123

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

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

161,543

1,566,968

iShares

Core

U.S.

Aggregate

Bond

ETF

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

10,031

1,185,564

Schwab

U.S.

TIPS

ETF

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

13,976

867,630

17,194,209

Foreign

Equity

21.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

214,943

2,499,782

a

Franklin

FTSE

China

ETF

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

15,812

502,964

a

Franklin

FTSE

Europe

ETF

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

56,256

1,466,324

a

Franklin

FTSE

Japan

ETF

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

24,569

731,665

a

Franklin

International

Core

Equity

(IU)

Fund

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

395,616

4,684,093

a

Franklin

International

Growth

Fund,

Class

R6

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

69,694

1,506,778

a

Templeton

Developing

Markets

Trust,

Class

R6

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

81,965

2,067,967

a

Templeton

Foreign

Fund,

Class

R6

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

310,245

2,171,717

15,631,290

Foreign

Fixed

Income

2.7%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

49,033

1,252,548

a

Templeton

Global

Total

Return

Fund,

Class

R6

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

66,445

663,118

1,915,666

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$58,181,942)

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

70,382,908

a

a

a

a

Short

Term

Investments

1.0%

a

Money

Market

Funds

0.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

461,257

461,257

Total

Money

Market

Funds

(Cost

$461,257)

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

461,257

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$219,081)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$139,957)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$41,801)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$37,323)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$223,488)

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

$

219,080

$

219,080

Total

Repurchase

Agreements

(Cost

$219,080)

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

219,080

Total

Short

Term

Investments

(Cost

$680,337

)

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

680,337

a

Total

Investments

(Cost

$58,862,279)

99.6%

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

$71,063,245

Other

Assets,

less

Liabilities

0.4%

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

341,331

Net

Assets

100.0%

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

$71,404,576

See

abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

87

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.94

$12.03

$13.70

$11.86

$11.78

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.19

0.24

0.29

0.20

0.13

Net

realized

and

unrealized

gains

(losses)

...........

1.61

2.19

(1.21)

1.92

0.23

Total

from

investment

operations

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

1.80

2.43

(0.92)

2.12

0.36

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.20)

(0.24)

(0.30)

(0.28)

(0.10)

Net

realized

gains

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

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

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

(0.56)

(0.52)

(0.75)

(0.28)

(0.28)

Net

asset

value,

end

of

year

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

$15.18

$13.94

$12.03

$13.70

$11.86

Total

return

d

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

13.44%

20.36%

(6.87)%

17.93%

3.11%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.81%

0.86%

0.81%

0.86%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.43%

f

0.34%

0.30%

f

0.30%

0.30%

Net

investment

income

c

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

1.38%

1.81%

2.04%

1.55%

1.15%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$84,029

$72,425

$60,087

$61,238

$56,650

Portfolio

turnover

rate

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

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.60

$11.75

$13.40

$11.61

$11.54

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.08

0.14

0.16

0.10

0.04

Net

realized

and

unrealized

gains

(losses)

...........

1.58

2.13

(1.16)

1.88

0.22

Total

from

investment

operations

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

1.66

2.27

(1.00)

1.98

0.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.14)

(0.20)

(0.19)

(0.01)

Net

realized

gains

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

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

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

(0.47)

(0.42)

(0.65)

(0.19)

(0.19)

Net

asset

value,

end

of

year

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

$14.79

$13.60

$11.75

$13.40

$11.61

Total

return

d

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

12.62%

19.46%

(7.58)%

17.09%

2.34%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.56%

1.61%

1.56%

1.60%

1.57%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.18%

f

1.09%

1.05%

f

1.04%

1.05%

Net

investment

income

c

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

0.60%

1.06%

1.29%

0.81%

0.40%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$21,329

$21,115

$18,350

$21,451

$18,781

Portfolio

turnover

rate

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

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

89

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.92

$12.01

$13.69

$11.84

$11.77

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.15

0.20

0.24

0.15

0.12

Net

realized

and

unrealized

gains

(losses)

...........

1.63

2.20

(1.20)

1.94

0.21

Total

from

investment

operations

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

1.78

2.40

(0.96)

2.09

0.33

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.17)

(0.21)

(0.27)

(0.24)

(0.08)

Net

realized

gains

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

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

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

(0.53)

(0.49)

(0.72)

(0.24)

(0.26)

Net

asset

value,

end

of

year

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

$15.17

$13.92

$12.01

$13.69

$11.84

Total

return

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

13.23%

20.10%

(7.18)%

17.71%

2.87%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.05%

1.10%

1.05%

1.11%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.68%

e

0.58%

0.54%

e

0.55%

0.55%

Net

investment

income

c

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

1.07%

1.57%

1.80%

1.30%

0.90%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,530

$4,966

$4,762

$5,745

$6,080

Portfolio

turnover

rate

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

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.05

$12.12

$13.80

$11.94

$11.85

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.29

0.31

0.25

0.17

Net

realized

and

unrealized

gains

(losses)

...........

1.63

2.20

(1.20)

1.93

0.23

Total

from

investment

operations

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

1.86

2.49

(0.89)

2.18

0.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.24)

(0.28)

(0.34)

(0.32)

(0.13)

Net

realized

gains

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

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

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

(0.60)

(0.56)

(0.79)

(0.32)

(0.31)

Net

asset

value,

end

of

year

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

$15.31

$14.05

$12.12

$13.80

$11.94

Total

return

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

13.82%

20.73%

(6.63)%

18.31%

3.48%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.40%

0.41%

0.39%

0.38%

0.39%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.13%

e

0.04%

—%

e

—%

—%

Net

investment

income

c

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

1.66%

2.11%

2.34%

1.85%

1.45%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$30,069

$28,513

$22,207

$26,497

$22,068

Portfolio

turnover

rate

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

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

91

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.07

$12.13

$13.81

$11.95

$11.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.28

0.32

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

...........

1.63

2.21

(1.22)

1.94

0.23

Total

from

investment

operations

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

1.86

2.49

(0.90)

2.17

0.39

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.24)

(0.27)

(0.33)

(0.31)

(0.12)

Net

realized

gains

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

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

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

(0.60)

(0.55)

(0.78)

(0.31)

(0.30)

Net

asset

value,

end

of

year

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

$15.33

$14.07

$12.13

$13.81

$11.95

Total

return

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

13.75%

20.73%

(6.67)%

18.24%

3.42%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.56%

0.61%

0.56%

0.61%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.18%

e

0.09%

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.67%

2.06%

2.29%

1.80%

1.40%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,438

$2,145

$1,723

$1,578

$1,451

Portfolio

turnover

rate

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

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

inco

me

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

29,400

$

577,980

Domestic

Equity

54.6%

a

Franklin

Growth

Fund,

Class

R6

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

169,444

22,993,541

a

Franklin

LibertyQ

U.S

.

Equity

ETF

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

429,076

16,257,690

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

145,865

11,680,863

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,658,993

20,803,766

SPDR

Portfolio

S&P

500

Value

ETF

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

112,550

3,870,595

Vanguard

S&P

500

ETF

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

8,375

2,878,404

78,484,859

Domestic

Fixed

Income

16.1%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

27,977

744,748

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

72,025

1,950,538

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

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

20,100

1,924,575

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

421,740

11,028,501

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

95,825

2,391,313

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

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

229,382

2,225,009

iShares

Core

U.S.

Aggregate

Bond

ETF

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

13,012

1,537,888

Schwab

U.S.

TIPS

ETF

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

18,900

1,173,312

22,975,884

Foreign

Equity

25.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

535,840

6,231,816

a

Franklin

FTSE

China

ETF

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

36,925

1,174,547

a

Franklin

FTSE

Europe

ETF

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

126,032

3,285,049

a

Franklin

FTSE

Japan

ETF

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

58,492

1,741,892

a

Franklin

International

Core

Equity

(IU)

Fund

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

891,621

10,556,792

a

Franklin

International

Growth

Fund,

Class

R6

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

153,398

3,316,469

a

Templeton

Developing

Markets

Trust,

Class

R6

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

202,875

5,118,546

a

Templeton

Foreign

Fund,

Class

R6

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

668,839

4,681,872

36,106,983

Foreign

Fixed

Income

2.3%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

79,875

2,040,407

a

Templeton

Global

Total

Return

Fund,

Class

R6

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

135,362

1,350,909

3,391,316

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$109,689,037)

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

141,537,022

a

a

a

a

Short

Term

Investments

0.9%

a

Money

Market

Funds

0.1%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

150,290

150,290

Total

Money

Market

Funds

(Cost

$150,290)

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

150,290

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

93

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.8%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$1,198,354)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$765,556)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$228,646)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$204,152)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$1,222,458)

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

$

1,198,347

$

1,198,347

Total

Repurchase

Agreements

(Cost

$1,198,347)

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

1,198,347

Total

Short

Term

Investments

(Cost

$1,348,637

)

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

1,348,637

a

Total

Investments

(Cost

$111,037,674)

99.6%

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

$142,885,659

Other

Assets,

less

Liabilities

0.4%

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

510,892

Net

Assets

100.0%

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

$143,396,551

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.76

$11.61

$13.03

$11.20

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.22

0.27

0.18

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.82

2.25

(1.17)

1.88

0.17

Total

from

investment

operations

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

2.00

2.47

(0.90)

2.06

0.31

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.23)

(0.18)

(0.30)

(0.23)

(0.08)

Net

realized

gains

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

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

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

(0.46)

(0.32)

(0.52)

(0.23)

(0.17)

Net

asset

value,

end

of

year

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

$15.30

$13.76

$11.61

$13.03

$11.20

Total

return

d

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

15.04%

21.50%

(7.00)%

18.50%

2.91%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.11%

1.18%

1.14%

1.26%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.43%

f

0.34%

f

0.30%

f

0.30%

0.30%

Net

investment

income

c

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

1.30%

1.67%

2.03%

1.55%

1.22%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$24,809

$19,322

$15,921

$14,001

$13,213

Portfolio

turnover

rate

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

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

95

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.52

$11.42

$12.83

$11.05

$10.97

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.07

0.12

0.16

0.11

0.05

Net

realized

and

unrealized

gains

(losses)

...........

1.79

2.21

(1.14)

1.83

0.18

Total

from

investment

operations

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

1.86

2.33

(0.98)

1.94

0.23

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.13)

(0.09)

(0.21)

(0.16)

(0.06)

Net

realized

gains

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

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

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

(0.36)

(0.23)

(0.43)

(0.16)

(0.15)

Net

asset

value,

end

of

year

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

$15.02

$13.52

$11.42

$12.83

$11.05

Total

return

d

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

14.15%

20.56%

(7.71)%

17.63%

2.17%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.86%

1.93%

1.89%

2.01%

1.94%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.18%

f

1.09%

f

1.05%

f

1.05%

1.05%

Net

investment

income

c

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

0.55%

0.92%

1.28%

0.80%

0.47%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$6,867

$5,630

$4,286

$4,015

$2,686

Portfolio

turnover

rate

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

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.74

$11.60

$13.02

$11.17

$11.05

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.14

0.18

0.22

0.13

0.13

Net

realized

and

unrealized

gains

(losses)

...........

1.82

2.25

(1.16)

1.91

0.16

Total

from

investment

operations

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

1.96

2.43

(0.94)

2.04

0.29

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.19)

(0.15)

(0.26)

(0.19)

(0.08)

Net

realized

gains

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

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

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

(0.42)

(0.29)

(0.48)

(0.19)

(0.17)

Net

asset

value,

end

of

year

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

$15.28

$13.74

$11.60

$13.02

$11.17

Total

return

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

14.74%

21.13%

(7.27)%

18.31%

2.66%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.36%

1.43%

1.39%

1.51%

1.43%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.68%

e

0.59%

e

0.55%

e

0.55%

0.54%

Net

investment

income

c

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

1.02%

1.42%

1.78%

1.30%

0.98%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,540

$1,528

$1,273

$1,519

$2,188

Portfolio

turnover

rate

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

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

97

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.85

$11.69

$13.11

$11.26

$11.10

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.25

0.30

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

...........

1.84

2.27

(1.16)

1.89

0.18

Total

from

investment

operations

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

2.05

2.52

(0.86)

2.12

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.27)

(0.22)

(0.34)

(0.27)

(0.09)

Net

realized

gains

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

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

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

(0.50)

(0.36)

(0.56)

(0.27)

(0.18)

Net

asset

value,

end

of

year

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

$15.40

$13.85

$11.69

$13.11

$11.26

Total

return

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

15.35%

21.89%

(6.77)%

18.92%

3.16%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.55%

0.58%

0.58%

0.61%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.13%

e

0.04%

e

—%

e

—%

—%

Net

investment

income

c

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

1.58%

1.97%

2.33%

1.85%

1.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$25,450

$22,250

$18,247

$17,521

$13,867

Portfolio

turnover

rate

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

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.82

$11.67

$13.10

$11.25

$11.09

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.22

0.33

0.27

0.22

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.82

2.18

(1.15)

1.89

0.19

Total

from

investment

operations

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

2.04

2.51

(0.88)

2.11

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.22)

(0.33)

(0.26)

(0.09)

Net

realized

gains

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

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

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

(0.49)

(0.36)

(0.55)

(0.26)

(0.18)

Net

asset

value,

end

of

year

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

$15.37

$13.82

$11.67

$13.10

$11.25

Total

return

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

15.33%

21.68%

(6.82)%

18.88%

3.15%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.86%

0.93%

0.89%

1.01%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.18%

e

0.09%

e

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.60%

1.92%

2.28%

1.80%

1.47%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$506

$146

$165

$155

$141

Portfolio

turnover

rate

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

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

99

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

12,325

$

242,300

Domestic

Equity

60.6%

a

Franklin

Growth

Fund,

Class

R6

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

77,822

10,560,384

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

198,223

7,510,669

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

65,435

5,240,035

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

780,894

9,792,410

SPDR

Portfolio

S&P

500

Value

ETF

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

51,225

1,761,628

Vanguard

S&P

500

ETF

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

2,675

919,371

35,784,497

Domestic

Fixed

Income

9.9%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

7,130

189,800

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

18,350

496,944

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

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

5,100

488,325

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

110,298

2,884,293

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

24,425

609,526

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

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

58,458

567,043

iShares

Core

U.S.

Aggregate

Bond

ETF

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

3,178

375,608

Schwab

U.S.

TIPS

ETF

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

4,975

308,848

5,920,387

Foreign

Equity

27.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

232,437

2,703,240

a

Franklin

FTSE

China

ETF

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

16,000

508,944

a

Franklin

FTSE

Europe

ETF

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

57,777

1,505,969

a

Franklin

FTSE

Japan

ETF

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

26,971

803,196

a

Franklin

International

Core

Equity

(IU)

Fund

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

422,224

4,999,128

a

Franklin

International

Growth

Fund,

Class

R6

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

73,120

1,580,855

a

Templeton

Developing

Markets

Trust,

Class

R6

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

86,205

2,174,948

a

Templeton

Foreign

Fund,

Class

R6

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

307,699

2,153,890

16,430,170

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$46,208,546)

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

58,377,354

a

a

a

a

Short

Term

Investments

0.7%

a

Money

Market

Funds

0.2%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

137,383

137,383

Total

Money

Market

Funds

(Cost

$137,383)

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

137,383

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.5%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$261,617)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$167,131)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$49,917)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$44,569)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$266,879)

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

$

261,615

$

261,615

Total

Repurchase

Agreements

(Cost

$261,615)

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

261,615

Total

Short

Term

Investments

(Cost

$398,998

)

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

398,998

a

Total

Investments

(Cost

$46,607,544)

99.4%

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

$58,776,352

Other

Assets,

less

Liabilities

0.6%

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

394,877

Net

Assets

100.0%

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

$59,171,229

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

101

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.27

$12.04

$13.78

$11.86

$11.75

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.21

0.27

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.98

2.45

(1.26)

2.01

0.24

Total

from

investment

operations

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

2.15

2.66

(0.99)

2.21

0.38

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.19)

(0.21)

(0.27)

(0.29)

(0.10)

Net

realized

gains

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

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

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

(0.62)

(0.43)

(0.75)

(0.29)

(0.27)

Net

asset

value,

end

of

year

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

$15.80

$14.27

$12.04

$13.78

$11.86

Total

return

d

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

15.76%

22.33%

(7.42)%

18.72%

3.29%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.94%

0.98%

0.93%

1.01%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.43%

f

0.34%

f

0.30%

f

0.30%

0.30%

Net

investment

income

c

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

1.22%

1.57%

1.91%

1.53%

1.15%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$59,801

$51,412

$44,978

$46,783

$44,521

Portfolio

turnover

rate

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

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.88

$11.72

$13.44

$11.57

$11.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.11

0.15

0.10

0.04

Net

realized

and

unrealized

gains

(losses)

...........

1.94

2.38

(1.22)

1.96

0.23

Total

from

investment

operations

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

2.00

2.49

(1.07)

2.06

0.27

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

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

(0.12)

(0.11)

(0.17)

(0.19)

(0.01)

Net

realized

gains

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

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

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

(0.55)

(0.33)

(0.65)

(0.19)

(0.18)

Net

asset

value,

end

of

year

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

$15.33

$13.88

$11.72

$13.44

$11.57

Total

return

d

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

15.00%

21.35%

(8.07)%

17.92%

2.43%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.68%

1.73%

1.67%

1.75%

1.72%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.17%

f

1.09%

f

1.04%

f

1.04%

1.05%

Net

investment

income

c

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

0.46%

0.82%

1.17%

0.79%

0.40%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$14,502

$13,333

$11,738

$13,190

$12,527

Portfolio

turnover

rate

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

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

103

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.20

$11.98

$13.72

$11.81

$11.71

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.11

0.17

0.23

0.17

0.11

Net

realized

and

unrealized

gains

(losses)

...........

2.01

2.45

(1.25)

2.00

0.23

Total

from

investment

operations

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

2.12

2.62

(1.02)

2.17

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.15)

(0.18)

(0.24)

(0.26)

(0.07)

Net

realized

gains

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

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

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

(0.58)

(0.40)

(0.72)

(0.26)

(0.24)

Net

asset

value,

end

of

year

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

$15.74

$14.20

$11.98

$13.72

$11.81

Total

return

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

15.55%

21.95%

(7.61)%

18.43%

2.99%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.18%

1.22%

1.17%

1.26%

1.22%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.67%

e

0.58%

e

0.54%

e

0.55%

0.55%

Net

investment

income

c

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

0.80%

1.33%

1.67%

1.28%

0.90%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,620

$4,838

$5,146

$5,464

$4,682

Portfolio

turnover

rate

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

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.38

$12.12

$13.88

$11.94

$11.83

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.27

0.30

0.25

0.17

Net

realized

and

unrealized

gains

(losses)

...........

2.01

2.46

(1.27)

2.02

0.24

Total

from

investment

operations

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

2.22

2.73

(0.97)

2.27

0.41

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.24)

(0.25)

(0.31)

(0.33)

(0.13)

Net

realized

gains

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

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

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

(0.67)

(0.47)

(0.79)

(0.33)

(0.30)

Net

asset

value,

end

of

year

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

$15.93

$14.38

$12.12

$13.88

$11.94

Total

return

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

16.11%

22.69%

(7.16)%

19.10%

3.55%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.44%

0.46%

0.46%

0.43%

0.44%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.13%

e

0.04%

e

—%

e

—%

—%

Net

investment

income

c

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

1.52%

1.87%

2.21%

1.83%

1.45%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$23,504

$20,022

$12,681

$13,787

$10,912

Portfolio

turnover

rate

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

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

105

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.38

$12.13

$13.88

$11.94

$11.83

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.25

0.31

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

...........

2.00

2.46

(1.28)

2.03

0.25

Total

from

investment

operations

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

2.21

2.71

(0.97)

2.26

0.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.23)

(0.24)

(0.30)

(0.32)

(0.12)

Net

realized

gains

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

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

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

(0.66)

(0.46)

(0.78)

(0.32)

(0.29)

Net

asset

value,

end

of

year

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

$15.93

$14.38

$12.13

$13.88

$11.94

Total

return

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

16.06%

22.53%

(7.13)%

19.04%

3.49%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.69%

0.73%

0.68%

0.76%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.18%

e

0.09%

e

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.49%

1.82%

2.16%

1.78%

1.40%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,089

$819

$639

$602

$479

Portfolio

turnover

rate

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

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.5%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

21,100

$

414,809

Domestic

Equity

65.7%

a

Franklin

Growth

Fund,

Class

R6

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

144,243

19,573,768

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

364,617

13,815,338

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

121,666

9,742,984

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,422,845

17,842,471

SPDR

Portfolio

S&P

500

Value

ETF

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

94,825

3,261,032

Vanguard

S&P

500

ETF

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

6,950

2,388,645

66,624,238

Domestic

Fixed

Income

3.2%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

61,746

1,614,658

iShares

Core

U.S.

Aggregate

Bond

ETF

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

13,652

1,613,530

3,228,188

Foreign

Equity

29.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

440,693

5,125,258

a

Franklin

FTSE

China

ETF

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

30,375

966,198

a

Franklin

FTSE

Europe

ETF

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

101,604

2,648,329

a

Franklin

FTSE

Japan

ETF

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

45,068

1,342,125

a

Franklin

International

Core

Equity

(IU)

Fund

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

735,043

8,702,913

a

Franklin

International

Growth

Fund,

Class

R6

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

129,420

2,798,056

a

Templeton

Developing

Markets

Trust,

Class

R6

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

162,105

4,089,916

a

Templeton

Foreign

Fund,

Class

R6

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

574,753

4,023,269

29,696,064

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$74,483,274)

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

99,963,299

a

a

a

a

Short

Term

Investments

1.0%

a

Money

Market

Funds

0.1%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

57,646

57,646

Total

Money

Market

Funds

(Cost

$57,646)

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

57,646

Principal

Amount

Repurchase

Agreements

0.9%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$911,398)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$582,237)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$173,895)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$155,266)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$929,731)

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

$

911,393

911,393

Total

Repurchase

Agreements

(Cost

$911,393)

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

911,393

Total

Short

Term

Investments

(Cost

$969,039

)

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

969,039

a

Total

Investments

(Cost

$75,452,313)

99.5%

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

$100,932,338

Other

Assets,

less

Liabilities

0.5%

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

583,320

Net

Assets

100.0%

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

$101,515,658

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

107

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.01

$11.74

$13.19

$11.29

$11.11

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.19

0.27

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

...........

2.03

2.37

(1.23)

1.93

0.23

Total

from

investment

operations

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

2.20

2.56

(0.96)

2.13

0.37

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.16)

(0.30)

(0.23)

(0.09)

Net

realized

gains

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

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

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

(0.45)

(0.29)

(0.49)

(0.23)

(0.19)

Net

asset

value,

end

of

year

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

$15.76

$14.01

$11.74

$13.19

$11.29

Total

return

d

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

16.22%

22.00%

(7.40)%

18.96%

3.32%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.28%

1.35%

1.30%

1.53%

1.47%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.42%

f

0.34%

f

0.30%

f

0.30%

0.30%

Net

investment

income

c

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

1.23%

1.55%

1.98%

1.62%

1.17%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$20,709

$16,729

$16,856

$13,823

$10,597

Portfolio

turnover

rate

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

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

109

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.91

$11.66

$13.11

$11.24

$11.07

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.07

0.11

0.16

0.11

0.05

Net

realized

and

unrealized

gains

(losses)

...........

2.00

2.34

(1.22)

1.91

0.23

Total

from

investment

operations

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

2.07

2.45

(1.06)

2.02

0.28

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.14)

(0.07)

(0.20)

(0.15)

(0.01)

Net

realized

gains

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

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

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

(0.37)

(0.20)

(0.39)

(0.15)

(0.11)

Net

asset

value,

end

of

year

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

$15.61

$13.91

$11.66

$13.11

$11.24

Total

return

d

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

15.35%

21.13%

(8.12)%

18.03%

2.56%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.03%

2.10%

2.05%

2.28%

2.22%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.17%

f

1.09%

f

1.05%

f

1.05%

1.05%

Net

investment

income

c

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

0.48%

0.80%

1.23%

0.87%

0.42%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$7,014

$5,658

$4,167

$3,797

$2,675

Portfolio

turnover

rate

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

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.01

$11.74

$13.19

$11.29

$11.12

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.13

0.17

0.23

0.16

0.11

Net

realized

and

unrealized

gains

(losses)

...........

2.03

2.36

(1.22)

1.94

0.22

Total

from

investment

operations

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

2.16

2.53

(0.99)

2.10

0.33

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.18)

(0.13)

(0.27)

(0.20)

(0.06)

Net

realized

gains

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

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

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

(0.41)

(0.26)

(0.46)

(0.20)

(0.16)

Net

asset

value,

end

of

year

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

$15.76

$14.01

$11.74

$13.19

$11.29

Total

return

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

15.92%

21.72%

(7.62)%

18.67%

3.01%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.53%

1.60%

1.55%

1.78%

1.71%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.67%

e

0.59%

e

0.55%

e

0.55%

0.54%

Net

investment

income

c

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

0.91%

1.30%

1.73%

1.37%

0.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,468

$2,364

$1,814

$1,608

$1,219

Portfolio

turnover

rate

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

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

111

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.10

$11.80

$13.26

$11.34

$11.16

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.26

0.29

0.24

0.15

Net

realized

and

unrealized

gains

(losses)

...........

2.05

2.37

(1.23)

1.94

0.24

Total

from

investment

operations

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

2.26

2.63

(0.94)

2.18

0.39

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.20)

(0.33)

(0.26)

(0.11)

Net

realized

gains

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

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

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

(0.49)

(0.33)

(0.52)

(0.26)

(0.21)

Net

asset

value,

end

of

year

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

$15.87

$14.10

$11.80

$13.26

$11.34

Total

return

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

16.59%

22.50%

(7.18)%

19.36%

3.55%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.59%

0.62%

0.65%

0.69%

0.75%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.12%

e

0.04%

e

—%

e

—%

—%

Net

investment

income

c

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

1.54%

1.85%

2.28%

1.92%

1.47%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$22,839

$17,560

$11,800

$12,099

$9,174

Portfolio

turnover

rate

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

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.10

$11.80

$13.26

$11.35

$11.16

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.20

0.24

0.28

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

...........

2.05

2.38

(1.22)

1.94

0.25

Total

from

investment

operations

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

2.25

2.62

(0.94)

2.17

0.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.25)

(0.19)

(0.33)

(0.26)

(0.11)

Net

realized

gains

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

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

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

(0.48)

(0.32)

(0.52)

(0.26)

(0.21)

Net

asset

value,

end

of

year

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

$15.87

$14.10

$11.80

$13.26

$11.35

Total

return

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

16.54%

22.44%

(7.23)%

19.20%

3.59%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.03%

1.10%

1.05%

1.28%

1.22%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.18%

e

0.09%

e

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.45%

1.80%

2.23%

1.87%

1.42%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$720

$617

$468

$512

$395

Portfolio

turnover

rate

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

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

113

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

10,625

$

208,879

Domestic

Equity

66.4%

a

Franklin

Growth

Fund,

Class

R6

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

73,935

10,032,925

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

198,642

7,526,545

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

63,961

5,121,977

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

749,420

9,397,730

SPDR

Portfolio

S&P

500

Value

ETF

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

52,325

1,799,457

Vanguard

S&P

500

ETF

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

5,200

1,787,188

35,665,822

Domestic

Fixed

Income

1.3%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

13,293

347,612

iShares

Core

U.S.

Aggregate

Bond

ETF

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

2,896

342,278

689,890

Foreign

Equity

30.6%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

236,444

2,749,839

a

Franklin

FTSE

China

ETF

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

17,550

558,248

a

Franklin

FTSE

Europe

ETF

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

58,575

1,526,769

a

Franklin

FTSE

Japan

ETF

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

25,939

772,464

a

Franklin

International

Core

Equity

(IU)

Fund

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

422,996

5,008,274

a

Franklin

International

Growth

Fund,

Class

R6

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

70,542

1,525,111

a

Templeton

Developing

Markets

Trust,

Class

R6

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

85,743

2,163,284

a

Templeton

Foreign

Fund,

Class

R6

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

313,906

2,197,341

16,501,330

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$41,410,850)

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

53,065,921

a

a

a

a

Short

Term

Investments

0.5%

Principal

Amount

Repurchase

Agreements

0.5%

b

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$255,857)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$163,451)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$48,818)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$43,588)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$261,004)

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

$

255,856

255,856

Total

Repurchase

Agreements

(Cost

$255,856)

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

255,856

Total

Short

Term

Investments

(Cost

$255,856

)

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

255,856

a

Total

Investments

(Cost

$41,666,706)

99.2%

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

$53,321,777

Other

Assets,

less

Liabilities

0.8%

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

428,616

Net

Assets

100.0%

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

$53,750,393

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.86

$9.88

$11.05

$9.47

$9.34

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.15

0.18

0.23

0.18

0.12

Net

realized

and

unrealized

gains

(losses)

...........

1.69

2.02

(1.03)

1.62

0.17

Total

from

investment

operations

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

1.84

2.20

(0.80)

1.80

0.29

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.19)

(0.12)

(0.20)

(0.19)

(0.10)

Net

realized

gains

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

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

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

(0.29)

(0.22)

(0.37)

(0.22)

(0.16)

Net

asset

value,

end

of

year

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

$13.41

$11.86

$9.88

$11.05

$9.47

Total

return

d

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

15.95%

22.39%

(7.37)%

19.06%

3.13%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.03%

2.50%

2.51%

3.18%

5.09%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.43%

f

0.34%

0.30%

f

0.30%

0.32%

Net

investment

income

c

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

1.27%

1.65%

2.01%

1.75%

1.43%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$12,408

$8,254

$6,104

$4,684

$2,732

Portfolio

turnover

rate

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

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

115

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.69

$9.75

$10.92

$9.39

$9.30

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.09

0.15

0.12

0.08

Net

realized

and

unrealized

gains

(losses)

...........

1.66

1.99

(1.02)

1.58

0.14

Total

from

investment

operations

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

1.72

2.08

(0.87)

1.70

0.22

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.13)

(0.04)

(0.13)

(0.14)

(0.07)

Net

realized

gains

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

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

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

(0.23)

(0.14)

(0.30)

(0.17)

(0.13)

Net

asset

value,

end

of

year

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

$13.18

$11.69

$9.75

$10.92

$9.39

Total

return

d

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

15.07%

21.45%

(8.04)%

18.10%

2.36%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.78%

3.25%

3.26%

3.93%

5.82%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.18%

f

1.09%

1.05%

f

1.05%

1.05%

Net

investment

income

c

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

0.51%

0.90%

1.26%

1.00%

0.70%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$5,083

$3,563

$2,338

$1,428

$572

Portfolio

turnover

rate

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

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.82

$9.85

$11.01

$9.44

$9.33

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.11

0.15

0.19

0.13

0.12

Net

realized

and

unrealized

gains

(losses)

...........

1.69

2.01

(1.01)

1.63

0.14

Total

from

investment

operations

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

1.80

2.16

(0.82)

1.76

0.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.16)

(0.09)

(0.17)

(0.16)

(0.09)

Net

realized

gains

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

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

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

(0.26)

(0.19)

(0.34)

(0.19)

(0.15)

Net

asset

value,

end

of

year

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

$13.36

$11.82

$9.85

$11.01

$9.44

Total

return

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

15.61%

22.08%

(7.53)%

18.69%

2.84%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

2.29%

2.75%

2.76%

3.43%

5.32%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.67%

e

0.59%

0.55%

e

0.55%

0.55%

Net

investment

income

c

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

0.95%

1.40%

1.76%

1.50%

1.20%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$580

$539

$425

$354

$357

Portfolio

turnover

rate

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

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

117

Ent

year

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.87

$9.89

$11.06

$9.48

$9.34

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.22

0.24

0.22

0.21

Net

realized

and

unrealized

gains

(losses)

...........

1.70

2.01

(1.01)

1.61

0.11

Total

from

investment

operations

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

1.88

2.23

(0.77)

1.83

0.32

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.15)

(0.23)

(0.22)

(0.12)

Net

realized

gains

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

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

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

(0.32)

(0.25)

(0.40)

(0.25)

(0.18)

Net

asset

value,

end

of

year

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

$13.43

$11.87

$9.89

$11.06

$9.48

Total

return

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

16.34%

22.72%

(7.12)%

19.32%

3.49%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.87%

1.18%

1.35%

1.85%

4.21%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.13%

e

0.04%

—%

e

—%

—%

Net

investment

income

c

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

1.57%

1.95%

2.31%

2.05%

1.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$12,017

$7,296

$3,573

$3,184

$1,618

Portfolio

turnover

rate

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

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.87

$9.90

$11.06

$9.48

$9.35

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.23

0.25

0.20

0.13

Net

realized

and

unrealized

gains

(losses)

...........

1.66

1.99

(1.02)

1.62

0.18

Total

from

investment

operations

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

1.87

2.22

(0.77)

1.82

0.31

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.15)

(0.22)

(0.21)

(0.12)

Net

realized

gains

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

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

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

(0.32)

(0.25)

(0.39)

(0.24)

(0.18)

Net

asset

value,

end

of

year

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

$13.42

$11.87

$9.90

$11.06

$9.48

Total

return

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

16.19%

22.67%

(7.16)%

19.27%

3.45%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.77%

2.25%

2.26%

2.93%

4.82%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.19%

e

0.09%

0.05%

e

0.05%

0.05%

Net

investment

income

c

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

1.74%

1.90%

2.26%

2.00%

1.70%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$378

$134

$46

$32

$13

Portfolio

turnover

rate

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

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

119

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.5%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

5,650

$

111,075

Domestic

Equity

66.2%

a

Franklin

Growth

Fund,

Class

R6

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

42,290

5,738,706

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

111,850

4,237,997

a

Franklin

Rising

Dividends

Fund,

Class

R6

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

35,806

2,867,319

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

422,003

5,291,921

SPDR

Portfolio

S&P

500

Value

ETF

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

29,450

1,012,786

Vanguard

S&P

500

ETF

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

2,925

1,005,293

20,154,022

Domestic

Fixed

Income

1.4%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

8,566

224,001

iShares

Core

U.S.

Aggregate

Bond

ETF

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

1,897

224,206

448,207

Foreign

Equity

30.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

131,753

1,532,282

a

Franklin

FTSE

China

ETF

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

9,872

314,018

a

Franklin

FTSE

Europe

ETF

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

32,133

837,553

a

Franklin

FTSE

Japan

ETF

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

14,607

434,996

a

Franklin

International

Core

Equity

(IU)

Fund

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

236,768

2,803,333

a

Franklin

International

Growth

Fund,

Class

R6

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

39,945

863,616

a

Templeton

Developing

Markets

Trust,

Class

R6

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

47,868

1,207,703

a

Templeton

Foreign

Fund,

Class

R6

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

185,535

1,298,745

9,292,246

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$24,363,502)

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

30,005,550

a

a

a

a

Short

Term

Investments

0.7%

a

Money

Market

Funds

0.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

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

222,738

222,738

Total

Money

Market

Funds

(Cost

$222,738)

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

222,738

Total

Short

Term

Investments

(Cost

$222,738

)

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

222,738

a

Total

Investments

(Cost

$24,586,240)

99.2%

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

$30,228,288

Other

Assets,

less

Liabilities

0.8%

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

237,014

Net

Assets

100.0%

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

$30,465,302

See

Abbreviations

on

page

164

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$6,888,890

$3,332,637

$8,947,635

Cost

-

Non-controlled

affiliates

(Note

3f)

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

47,098,998

34,114,031

106,120,411

Cost

-

Unaffiliated

repurchase

agreements

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

—

160,413

778,879

Value

-

Unaffiliated

issuers

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

$7,371,705

$3,575,874

$9,643,078

Value

-

Non-controlled

affiliates

(Note

3f)

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

50,289,912

39,735,382

130,849,686

Value

-

Unaffiliated

repurchase

agreements

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

—

160,413

778,879

Cash

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

155

7,378

19,288

Receivables:

Capital

shares

sold

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

11,807

126,411

196,473

Dividends

and

interest

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

81,331

32,698

87,694

Affiliates

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

93,896

76,758

75,620

Other

assets

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

184,853

79,576

207,135

Total

assets

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

58,033,659

43,794,490

141,857,853

Liabilities:

Payables:

Investment

securities

purchased

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

—

7,375

627,015

Capital

shares

redeemed

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

37,109

14,660

62,549

Management

&

Asset

allocation

fees

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

12,070

9,146

22,885

Distribution

fees

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

17,024

12,633

39,754

Transfer

agent

fees

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

10,935

7,157

21,095

Reports

to

shareholders

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

5,474

6,107

10,943

Professional

fees

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

31,769

25,823

26,023

Accrued

expenses

and

other

liabilities

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

360

2,937

610

Total

liabilities

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

114,741

85,838

810,874

Net

assets,

at

value

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

$57,918,918

$43,708,652

$141,046,979

Net

assets

consist

of:

Paid-in

capital

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

$55,597,801

$37,754,596

$114,755,143

Total

distributable

earnings

(losses)

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

2,321,117

5,954,056

26,291,836

Net

assets,

at

value

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

$57,918,918

$43,708,652

$141,046,979

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

121

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

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

$40,343,011

$30,265,049

$96,972,915

Shares

outstanding

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

3,472,439

2,329,141

7,026,482

Net

asset

value

per

share

a

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

$11.62

$12.99

$13.80

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

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

$12.30

$13.75

$14.60

Class

C:

Net

assets,

at

value

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

$9,355,423

$7,117,825

$21,990,934

Shares

outstanding

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

815,286

551,179

1,621,435

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.48

$12.91

$13.56

Class

R:

Net

assets,

at

value

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

$2,108,267

$785,961

$3,116,865

Shares

outstanding

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

181,950

60,541

226,706

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.59

$12.98

$13.75

Class

R6:

Net

assets,

at

value

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

$4,091,630

$4,854,519

$16,093,805

Shares

outstanding

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

350,577

372,611

1,162,287

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.67

$13.03

$13.85

Advisor

Class:

Net

assets,

at

value

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

$2,020,587

$685,298

$2,872,460

Shares

outstanding

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

173,278

52,581

207,633

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.66

$13.03

$13.83

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$4,815,555

$8,768,400

$3,098,139

Cost

-

Non-controlled

affiliates

(Note

3f)

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

53,827,644

101,070,926

43,247,790

Cost

-

Unaffiliated

repurchase

agreements

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

219,080

1,198,347

261,615

Value

-

Unaffiliated

issuers

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

$5,176,665

$9,460,199

$3,365,455

Value

-

Non-controlled

affiliates

(Note

3f)

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

65,667,500

132,227,113

55,149,282

Value

-

Unaffiliated

repurchase

agreements

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

219,080

1,198,347

261,615

Cash

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

6,885

9,773

2,495

Receivables:

Capital

shares

sold

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

219,239

519,870

310,867

Dividends

and

interest

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

33,734

50,874

16,014

Affiliates

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

96,927

94,975

118,624

Other

assets

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

74,374

96,943

25,243

Total

assets

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

71,494,404

143,658,094

59,249,595

Liabilities:

Payables:

Investment

securities

purchased

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

6,883

9,773

2,491

Capital

shares

redeemed

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

4,448

131,116

3,039

Management

&

Asset

allocation

fees

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

14,836

21,009

12,317

Distribution

fees

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

16,672

37,250

11,499

Transfer

agent

fees

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

11,210

23,953

11,656

Reports

to

shareholders

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

9,664

11,753

8,596

Professional

fees

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

25,850

26,103

25,764

Accrued

expenses

and

other

liabilities

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

265

586

3,004

Total

liabilities

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

89,828

261,543

78,366

Net

assets,

at

value

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

$71,404,576

$143,396,551

$59,171,229

Net

assets

consist

of:

Paid-in

capital

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

$59,141,459

$110,122,626

$46,174,163

Total

distributable

earnings

(losses)

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

12,263,117

33,273,925

12,997,066

Net

assets,

at

value

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

$71,404,576

$143,396,551

$59,171,229

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

123

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

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

$34,018,911

$84,029,469

$24,808,650

Shares

outstanding

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

2,362,939

5,534,191

1,621,997

Net

asset

value

per

share

a

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

$14.40

$15.18

$15.30

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50

%)

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

$15.24

$16.06

$16.19

Class

C:

Net

assets,

at

value

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

$10,936,754

$21,329,155

$6,867,043

Shares

outstanding

......................................

769,037

1,441,745

457,093

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$14.22

$14.79

$15.02

Class

R:

Net

assets,

at

value

.....................................

$1,185,652

$4,530,390

$1,539,999

Shares

outstanding

......................................

82,469

298,662

100,779

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.38

$15.17

$15.28

Class

R6:

Net

assets,

at

value

.....................................

$23,717,294

$30,069,392

$25,449,597

Shares

outstanding

......................................

1,640,517

1,964,308

1,652,383

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.46

$15.31

$15.40

Advisor

Class:

Net

assets,

at

value

.....................................

$1,545,965

$3,438,145

$505,940

Shares

outstanding

......................................

107,032

224,315

32,911

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.44

$15.33

$15.37

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$6,691,800

$3,632,567

$2,086,528

Cost

-

Non-controlled

affiliates

(Note

3f)

......................

67,849,120

37,778,283

22,499,712

Cost

-

Unaffiliated

repurchase

agreements

....................

911,393

255,856

—

Value

-

Unaffiliated

issuers

................................

$7,263,207

$3,928,923

$2,242,285

Value

-

Non-controlled

affiliates

(Note

3f)

......................

92,757,738

49,136,998

27,986,003

Value

-

Unaffiliated

repurchase

agreements

....................

911,393

255,856

—

Cash

..................................................

—

—

23,594

Receivables:

Investment

securities

sold

.................................

—

171,465

58,334

Capital

shares

sold

......................................

535,821

269,772

111,845

Dividends

and

interest

...................................

14,327

6,975

3,989

Affiliates

..............................................

180,330

141,939

160,042

Other

assets

............................................

11,766

2,539

9,599

Total

assets

........................................

101,674,582

53,914,467

30,595,691

Liabilities:

Payables:

Investment

securities

purchased

............................

—

—

58,334

Capital

shares

redeemed

.................................

15,149

90,684

9,089

Management

&

Asset

allocation

fees

.........................

57,755

11,180

6,289

Distribution

fees

........................................

25,322

11,133

6,355

Transfer

agent

fees

......................................

23,512

14,806

14,287

Reports

to

shareholders

..................................

11,114

10,504

10,196

Professional

fees

.......................................

25,754

25,667

25,603

Accrued

expenses

and

other

liabilities

.........................

318

100

236

Total

liabilities

.......................................

158,924

164,074

130,389

Net

assets,

at

value

...............................

$101,515,658

$53,750,393

$30,465,302

Net

assets

consist

of:

Paid-in

capital

...........................................

$74,661,794

$41,424,499

$24,474,974

Total

distributable

earnings

(losses)

...........................

26,853,864

12,325,894

5,990,328

Net

assets,

at

value

...............................

$101,515,658

$53,750,393

$30,465,302

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

125

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$59,801,321

$20,709,498

$12,407,686

Shares

outstanding

......................................

3,784,123

1,313,659

925,595

Net

asset

value

per

share

a

................................

$15.80

$15.76

$13.41

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$16.72

$16.68

$14.19

Class

C:

Net

assets,

at

value

.....................................

$14,501,747

$7,014,130

$5,083,033

Shares

outstanding

......................................

946,172

449,222

385,746

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$15.33

$15.61

$13.18

Class

R:

Net

assets,

at

value

.....................................

$2,620,239

$2,467,992

$579,524

Shares

outstanding

......................................

166,489

156,558

43,381

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.74

$15.76

$13.36

Class

R6:

Net

assets,

at

value

.....................................

$23,503,660

$22,838,925

$12,017,433

Shares

outstanding

......................................

1,475,049

1,439,551

895,000

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.93

$15.87

$13.43

Advisor

Class:

Net

assets,

at

value

.....................................

$1,088,691

$719,848

$377,626

Shares

outstanding

......................................

68,325

45,370

28,145

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.93

$15.87

$13.42

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$146,845

$98,850

$246,231

Non-controlled

affiliates

(Note

3f)

...........................

1,393,341

734,296

2,271,646

Interest:

Unaffiliated

issuers

......................................

463,263

99

3,982

Total

investment

income

.................................

2,003,449

833,245

2,521,859

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

129,864

100,935

318,181

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

88,838

67,610

216,454

    Class

C

..............................................

95,672

66,466

212,648

    Class

R

..............................................

8,408

3,688

16,163

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

55,513

37,984

130,188

    Class

C

..............................................

15,054

9,353

32,266

    Class

R

..............................................

3,142

1,038

4,908

    Class

R6

.............................................

1,200

1,626

3,808

    Advisor

Class

..........................................

2,971

1,002

2,744

Custodian

fees

(Note

4

)

....................................

102

785

1,506

Reports

to

shareholders

....................................

7,756

10,878

17,420

Registration

and

filing

fees

..................................

77,192

77,145

80,882

Professional

fees

.........................................

59,384

43,354

43,640

Trustees'

fees

and

expenses

................................

320

—

1,049

Other

..................................................

4,595

4,291

5,241

Total

expenses

.......................................

550,011

426,155

1,087,098

Expense

reductions

(Note

4

)

.............................

(58)

(3)

(14)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

............

(332,506)

(203,513)

(391,305)

Net

expenses

.......................................

217,447

222,639

695,779

Net

investment

income

..............................

1,786,002

610,606

1,826,080

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

668,6

22

446,581

1,270,402

Non-controlled

affiliates

(Note

3f)

..........................

(21,250)

(291,737)

(870,745)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

Note

3f)

..........................

211,684

471,258

1,755,677

Net

realized

gain

(loss)

................................

859,056

626,102

2,155,334

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

73,621

114,331

385,537

Non-controlled

affiliates

(Note

3f)

..........................

1,706,092

2,220,053

8,089,500

Net

change

in

unrealized

appreciation

(depreciation)

..........

1,779,713

2,334,384

8,475,037

Net

realized

and

unrealized

gain

(loss)

..........................

2,638,769

2,960,486

10,630,371

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$4,424,771

$3,571,092

$12,456,451

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

127

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$96,914

$154,359

$44,982

Non-controlled

affiliates

(Note

3f)

...........................

1,070,622

2,131,143

815,897

Interest:

Unaffiliated

issuers

......................................

2,239

4,248

1,636

Total

investment

income

.................................

1,169,775

2,289,750

862,515

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

154,459

317,625

125,301

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

71,158

181,836

51,056

    Class

C

..............................................

94,495

199,932

57,422

    Class

R

..............................................

5,703

22,618

8,100

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

64,628

138,907

67,403

    Class

C

..............................................

21,452

38,331

18,952

    Class

R

..............................................

2,587

8,842

5,346

    Class

R6

.............................................

5,356

7,331

5,476

    Advisor

Class

..........................................

2,745

4,865

1,289

Custodian

fees

(Note

4

)

....................................

633

1,562

667

Reports

to

shareholders

....................................

14,368

17,770

13,403

Registration

and

filing

fees

..................................

73,822

79,054

77,365

Professional

fees

.........................................

45,618

45,546

44,524

Trustees'

fees

and

expenses

................................

499

1,044

109

Other

..................................................

4,363

5,137

4,151

Total

expenses

.......................................

561,886

1,070,400

480,564

Expense

reductions

(Note

4

)

.............................

(6)

(13)

(44)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

............

(280,810)

(445,384)

(284,551)

Net

expenses

.......................................

281,070

625,003

195,969

Net

investment

income

..............................

888,705

1,664,747

666,546

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

587,000

1,119,384

430,380

Non-controlled

affiliates

(Note

3f)

..........................

(922,832)

(98,466)

(33,925)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3f)

..........................

951,052

2,061,471

936,405

Net

realized

gain

(loss)

................................

615,220

3,082,389

1,332,860

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

243,948

463,213

174,908

Non-controlled

affiliates

(Note

3f)

..........................

5,256,428

11,428,996

5,721,870

Net

change

in

unrealized

appreciation

(depreciation)

..........

5,500,376

11,892,209

5,896,778

Net

realized

and

unrealized

gain

(loss)

..........................

6,115,596

14,974,598

7,229,638

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$7,004,301

$16,639,345

$7,896,184

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$89,124

$39,351

$20,983

Non-controlled

affiliates

(Note

3f)

...........................

1,349,930

693,588

372,173

Interest:

Unaffiliated

issuers

......................................

2,482

1,345

767

Total

investment

income

.................................

1,441,536

734,284

393,923

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

219,934

110,997

58,027

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

126,981

42,534

23,651

    Class

C

..............................................

125,964

57,917

40,038

    Class

R

..............................................

16,351

11,585

3,000

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

139,683

79,569

89,469

    Class

C

..............................................

35,005

27,095

37,869

    Class

R

..............................................

9,192

10,860

5,679

    Class

R6

.............................................

5,269

5,211

3,065

    Advisor

Class

..........................................

2,215

2,916

1,558

Custodian

fees

(Note

4

)

....................................

1,415

912

272

Reports

to

shareholders

....................................

17,371

15,133

15,210

Registration

and

filing

fees

..................................

77,950

73,496

72,922

Professional

fees

.........................................

42,437

44,715

44,044

Trustees'

fees

and

expenses

................................

720

—

—

Other

..................................................

4,685

3,812

4,038

Total

expenses

.......................................

825,172

486,752

398,842

Expense

reductions

(Note

4

)

.............................

(70)

(7)

(247)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

............

(410,049)

(306,657)

(295,428)

Net

expenses

.......................................

415,053

180,088

103,167

Net

investment

income

..............................

1,026,483

554,196

290,756

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

771,557

402,395

192,103

Non-controlled

affiliates

(Note

3f)

..........................

109,355

(83,730)

(143,083)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3f)

..........................

1,667,925

873,569

483,318

Net

realized

gain

(loss)

................................

2,548,837

1,192,234

532,338

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

356,190

195,531

130,971

Non-controlled

affiliates

(Note

3f)

..........................

9,772,276

5,576,109

3,400,966

Net

change

in

unrealized

appreciation

(depreciation)

..........

10,128,466

5,771,640

3,531,937

Net

realized

and

unrealized

gain

(loss)

..........................

12,677,303

6,963,874

4,064,275

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$13,703,786

$7,518,070

$4,355,031

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

129

)

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,786,002

$1,929,623

$610,606

$1,044,833

Net

realized

gain

(loss)

............

859,056

(24,498)

626,102

596,220

Net

change

in

unrealized

appreciation

(depreciation)

.................

1,779,713

3,763,488

2,334,384

3,716,713

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

4,424,771

5,668,613

3,571,092

5,357,766

Distributions

to

shareholders:

Class

A

........................

(1,431,728)

(1,276,767)

(579,093)

(681,367)

Class

C

........................

(310,829)

(354,915)

(91,739)

(117,703)

Class

R

........................

(75,140)

(92,451)

(13,764)

(15,536)

Class

R6

.......................

(126,010)

(92,676)

(118,084)

(233,070)

Advisor

Class

...................

(81,732)

(72,973)

(15,234)

(19,078)

Total

distributions

to

shareholders

.....

(2,025,439)

(1,889,782)

(817,914)

(1,066,754)

Capital

share

transactions:

(Note

2

)

Class

A

........................

4,280,624

466,914

1,395,022

251,395

Class

C

........................

(1,558,006)

(2,093,619)

(177,758)

(203,456)

Class

R

........................

(316,845)

(742,153)

(10,195)

(98,631)

Class

R6

.......................

1,865,913

87,827

(2,

898,275)

(1,970,403)

Advisor

Class

...................

63,117

347,505

(100,804)

39,851

Total

capital

share

transactions

.......

4,334,803

(1,933,526)

(1,792,010)

(1,981,244)

Net

increase

(decrease)

in

net

assets

.....................

6,734,135

1,845,305

961,168

2,309,768

Net

assets:

Beginning

of

year

..................

51,184,783

49,339,478

42,747,484

40,437,716

End

of

year

......................

$57,918,918

$51,184,783

$43,708,652

$42,747,484

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,826,080

$2,574,620

$888,705

$1,083,899

Net

realized

gain

(loss)

............

2,155,334

6,068,390

615,220

1,145,047

Net

change

in

unrealized

appreciation

(depreciation)

.................

8,475,037

10,546,320

5,500,376

7,128,879

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

12,456,451

19,189,330

7,004,301

9,357,825

Distributions

to

shareholders:

Class

A

........................

(3,138,792)

(3,045,510)

(807,598)

(731,665)

Class

C

........................

(618,884)

(688,301)

(200,244)

(177,159)

Class

R

........................

(111,129)

(142,497)

(29,298)

(26,329)

Class

R6

.......................

(559,279)

(562,509)

(664,249)

(639,478)

Advisor

Class

...................

(73,032)

(59,263)

(37,401)

(28,917)

Total

distributions

to

shareholders

.....

(4,501,116)

(4,498,080)

(1,738,790)

(1,603,548)

Capital

share

transactions:

(Note

2

)

Class

A

........................

5,186,019

486,785

4,231,485

1,275,501

Class

C

........................

(2,618,700)

(1,149,678)

918,822

524,197

Class

R

........................

(967,437)

(1,103,245)

25,856

107,214

Class

R6

.......................

591,525

(1,254,003)

23,761

868,076

Advisor

Class

...................

1,186,713

(102,196)

425,860

86,613

Total

capital

share

transactions

.......

3,378,120

(3,122,337)

5,625,784

2,861,601

Net

increase

(decrease)

in

net

assets

.....................

11,333,455

11,568,913

10,891,295

10,615,878

Net

assets:

Beginning

of

year

..................

129,713,524

118,144,611

60,513,281

49,897,403

End

of

year

......................

$141,046,979

$129,713,524

$71,404,576

$60,513,281

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

131

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,664,747

$2,106,342

$666,546

$782,052

Net

realized

gain

(loss)

............

3,082,389

5,195,025

1,332,860

1,213,339

Net

change

in

unrealized

appreciation

(depreciation)

.................

11,892,209

14,574,839

5,896,778

6,654,502

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

16,639,345

21,876,206

7,896,184

8,649,893

Distributions

to

shareholders:

Class

A

........................

(2,987,236)

(2,650,612)

(703,811)

(454,576)

Class

C

........................

(693,308)

(642,691)

(157,724)

(94,774)

Class

R

........................

(172,276)

(176,421)

(48,153)

(34,053)

Class

R6

.......................

(1,170,436)

(1,090,008)

(802,620)

(606,642)

Advisor

Class

...................

(117,157)

(83,743)

(14,462)

(2,459)

Total

distributions

to

shareholders

.....

(5,140,413)

(4,643,475)

(1,726,770)

(1,192,504)

Capital

share

transactions:

(Note

2

)

Class

A

........................

4,709,793

2,644,878

2,863,001

455,027

Class

C

........................

(1,419,278)

(109,181)

516,299

524,059

Class

R

........................

(856,195)

(515,294)

(199,753)

13,556

Class

R6

.......................

(745,308)

2,641,808

634,184

563,689

Advisor

Class

...................

1,045,342

138,806

311,307

(30,122)

Total

capital

share

transactions

.......

2,734,354

4,801,017

4,125,038

1,526,209

Net

increase

(decrease)

in

net

assets

.....................

14,233,286

22,033,748

10,294,452

8,983,598

Net

assets:

Beginning

of

year

..................

129,163,265

107,129,517

48,876,777

39,893,179

End

of

year

......................

$143,396,551

$129,163,265

$59,171,229

$48,876,777

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,026,483

$1,276,187

$554,196

$640,922

Net

realized

gain

(loss)

............

2,548,837

3,555,665

1,192,234

1,006,816

Net

change

in

unrealized

appreciation

(depreciation)

.................

10,128,466

11,840,160

5,771,640

6,233,822

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

13,703,786

16,672,012

7,518,070

7,881,560

Distributions

to

shareholders:

Class

A

........................

(2,266,459)

(1,557,379)

(560,602)

(420,909)

Class

C

........................

(508,543)

(310,595)

(158,983)

(75,423)

Class

R

........................

(129,183)

(149,104)

(68,720)

(42,749)

Class

R6

.......................

(959,318)

(616,228)

(660,907)

(399,544)

Advisor

Class

...................

(39,718)

(25,065)

(21,331)

(13,716)

Total

distributions

to

shareholders

.....

(3,903,221)

(2,658,371)

(1,470,543)

(952,341)

Capital

share

transactions:

(Note

2

)

Class

A

........................

2,576,701

(1,767,654)

1,755,282

(3,200,320)

Class

C

........................

(150,475)

(516,518)

571,449

654,068

Class

R

........................

(2,355,016)

(1,190,716)

(202,010)

184,278

Class

R6

.......................

1,037,663

4,646,121

2,628,556

3,204,608

Advisor

Class

...................

183,396

56,659

21,276

51,345

Total

capital

share

transactions

.......

1,292,269

1,227,892

4,774,553

893,979

Net

increase

(decrease)

in

net

assets

.....................

11,092,834

15,241,533

10,822,080

7,823,198

Net

assets:

Beginning

of

year

..................

90,422,824

75,181,291

42,928,313

35,105,115

End

of

year

......................

$101,515,658

$90,422,824

$53,750,393

$42,928,313

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

133

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$290,756

$257,646

Net

realized

gain

(loss)

.................................................

532,338

336,271

Net

change

in

unrealized

appreciation

(depreciation)

...........................

3,531,937

2,557,528

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

4,355,031

3,151,445

Distributions

to

shareholders:

Class

A

.............................................................

(243,069)

(134,928)

Class

C

.............................................................

(80,496)

(39,940)

Class

R

.............................................................

(12,920)

(8,843)

Class

R6

............................................................

(258,075)

(136,446)

Advisor

Class

........................................................

(5,555)

(2,359)

Total

distributions

to

shareholders

..........................................

(600,115)

(322,516)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

2,616,597

883,611

Class

C

.............................................................

917,117

707,288

Class

R

.............................................................

(51,701)

30,079

Class

R6

............................................................

3,228,549

2,775,929

Advisor

Class

........................................................

215,067

73,474

Total

capital

share

transactions

............................................

6,925,629

4,470,381

Net

increase

(decrease)

in

net

assets

...................................

10,680,545

7,299,310

Net

assets:

Beginning

of

year

.......................................................

19,784,757

12,485,447

End

of

year

...........................................................

$30,465,302

$19,784,757

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

134

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twenty-one

separate

funds, nine

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sale

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

135

franklintempleton.com

Annual

Report

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

year

end,

as

indicated

in

the

Statements

of

Investments,

had

been

entered

into

on

December

31,

2020.

c.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

d.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2020, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

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.

Dividend

income

and

realized

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

The

Franklin

LifeSmart

TM

Retirement

Income

Fund

employs

a

managed

distribution

policy.

Under

this

policy,

the

Fund

will

distribute

level

monthly

distributions

in

any

given

year

regardless

of

the

performance

of

the

Fund;

however,

the

twelfth

monthly

payment

may

be

greater

than

the

initially

anticipated

amount

if

additional

income

or

capital

gains

are

required

to

be

distributed.

These

distributions

may

include

income

and

capital

gains

generated

by

the

Underlying

Funds,

as

well

as

a

possible

return

of

capital

component,

if

necessary,

to

meet

the

annual

distribution

rate.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year

in

response

to

market

conditions.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Joint

Repurchase

Agreement

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

136

franklintempleton.com

Annual

Report

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

137

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

December

31,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

999,176

$10,949,641

521,618

$6,272,385

Shares

issued

in

reinvestment

of

distributions

..........

128,732

1,412,523

48,098

575,850

Shares

redeemed

...............................

(737,552)

(8,081,540)

(460,593)

(5,453,213)

Net

increase

(decrease)

..........................

390,356

$4,280,624

109,123

$1,395,022

Year

ended

December

31,

2019

Shares

sold

a

...................................

559,233

$6,108,032

607,030

$7,094,411

Shares

issued

in

reinvestment

of

distributions

..........

114,983

1,257,350

57,341

677,198

Shares

redeemed

...............................

(631,790)

(6,898,468)

(636,674)

(7,520,214)

Net

increase

(decrease)

..........................

42,426

$466,914

27,697

$251,395

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

95,645

$1,037,510

137,168

$1,602,207

Shares

issued

in

reinvestment

of

distributions

..........

27,449

297,040

7,712

91,371

Shares

redeemed

a

..............................

(267,615)

(2,892,556)

(156,863)

(1,871,336)

Net

increase

(decrease)

..........................

(144,521)

$(1,558,006)

(11,983)

$(177,758)

Year

ended

December

31,

2019

Shares

sold

...................................

205,376

$2,214,834

199,052

$2,321,159

Shares

issued

in

reinvestment

of

distributions

..........

31,448

339,465

10,032

117,703

Shares

redeemed

a

..............................

(430,570)

(4,647,918)

(228,092)

(2,642,318)

Net

increase

(decrease)

..........................

(193,746)

$(2,093,619)

(19,008)

$(203,456)

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

54,509

$611,878

30,130

$367,112

Shares

issued

in

reinvestment

of

distributions

..........

5,534

60,616

1,155

13,764

Shares

redeemed

...............................

(88,384)

(989,339)

(32,037)

(391,071)

Net

increase

(decrease)

..........................

(28,341)

$(316,845)

(752)

$(10,195)

Year

ended

December

31,

2019

Shares

sold

...................................

26,806

$291,111

19,468

$227,258

Shares

issued

in

reinvestment

of

distributions

..........

6,150

66,979

1,315

15,536

Shares

redeemed

...............................

(101,605)

(1,100,243)

(29,264)

(341,425)

Net

increase

(decrease)

..........................

(68,649)

$(742,153)

(8,481)

$(98,631)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

138

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

217,344

$2,400,375

170,728

$2,049,625

Shares

issued

in

reinvestment

of

distributions

..........

—

—

1

8

Shares

redeemed

...............................

(49,147)

(534,462)

(407,102)

(4,947,908)

Net

increase

(decrease)

..........................

168,197

$1,865,913

(236,373)

$(2,898,275)

Year

ended

December

31,

2019

Shares

sold

...................................

130,363

$1,418,631

151,042

$1,772,745

Shares

issued

in

reinvestment

of

distributions

..........

197

2,137

50

576

Shares

redeemed

...............................

(121,096)

(1,332,941)

(318,860)

(3,743,724)

Net

increase

(decrease)

..........................

9,464

$87,827

(167,768)

$(1,970,403)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

47,082

$522,691

30,068

$362,458

Shares

issued

in

reinvestment

of

distributions

..........

7,099

78,129

1,273

15,234

Shares

redeemed

...............................

(48,424)

(537,703)

(39,825)

(478,496)

Net

increase

(decrease)

..........................

5,757

$63,117

(8,484)

$(100,804)

Year

ended

December

31,

2019

Shares

sold

...................................

41,829

$456,585

7,814

$93,111

Shares

issued

in

reinvestment

of

distributions

..........

6,437

70,687

1,609

19,078

Shares

redeemed

...............................

(16,343)

(179,767)

(6,090)

(72,338)

Net

increase

(decrease)

..........................

31,923

$347,505

3,333

$39,851

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

139

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

1,391,393

$17,778,097

645,574

$8,463,985

Shares

issued

in

reinvestment

of

distributions

..........

247,921

3,124,391

62,213

807,054

Shares

redeemed

...............................

(1,245,619)

(15,716,469)

(396,048)

(5,039,554)

Net

increase

(decrease)

..........................

393,695

$5,186,019

311,739

$4,231,485

Year

ended

December

31,

2019

Shares

sold

a

...................................

1,094,603

$13,746,669

602,484

$7,611,523

Shares

issued

in

reinvestment

of

distributions

..........

238,365

3,036,346

57,127

731,551

Shares

redeemed

...............................

(1,299,276)

(16,296,230)

(560,958)

(7,067,573)

Net

increase

(decrease)

..........................

33,692

$486,785

98,653

$1,275,501

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

292,316

$3,644,257

176,304

$2,254,235

Shares

issued

in

reinvestment

of

distributions

..........

49,297

609,582

15,634

200,178

Shares

redeemed

a

..............................

(558,064)

(6,872,539)

(119,569)

(1,535,591)

Net

increase

(decrease)

..........................

(216,451)

$(2,618,700)

72,369

$918,822

Year

ended

December

31,

2019

Shares

sold

...................................

357,759

$4,413,141

240,212

$2,967,689

Shares

issued

in

reinvestment

of

distributions

..........

52,237

655,098

13,930

176,408

Shares

redeemed

a

..............................

(504,442)

(6,217,917)

(213,721)

(2,619,900)

Net

increase

(decrease)

..........................

(94,446)

$(1,149,678)

40,421

$524,197

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

69,441

$872,096

21,792

$281,999

Shares

issued

in

reinvestment

of

distributions

..........

8,860

110,702

2,275

29,298

Shares

redeemed

...............................

(155,589)

(1,950,235)

(21,390)

(285,441)

Net

increase

(decrease)

..........................

(77,288)

$(967,437)

2,677

$25,856

Year

ended

December

31,

2019

Shares

sold

...................................

54,755

$683,429

25,408

$320,374

Shares

issued

in

reinvestment

of

distributions

..........

10,128

128,541

2,060

26,329

Shares

redeemed

...............................

(153,741)

(1,915,215)

(18,780)

(239,489)

Net

increase

(decrease)

..........................

(88,858)

$(1,103,245)

8,688

$107,214

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

140

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

466,207

$6,033,871

554,467

$7,153,865

Shares

issued

in

reinvestment

of

distributions

..........

1,044

13,267

14

189

Shares

redeemed

...............................

(435,342)

(5,455,613)

(568,388)

(7,130,293)

Net

increase

(decrease)

..........................

31,909

$591,525

(13,907)

$23,761

Year

ended

December

31,

2019

Shares

sold

...................................

285,703

$3,601,451

415,710

$5,242,377

Shares

issued

in

reinvestment

of

distributions

..........

875

11,183

26

330

Shares

redeemed

...............................

(387,125)

(4,866,637)

(355,006)

(4,374,631)

Net

increase

(decrease)

..........................

(100,547)

$(1,254,003)

60,730

$868,076

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

98,827

$1,296,987

36,337

$479,768

Shares

issued

in

reinvestment

of

distributions

..........

5,188

66,372

2,858

37,315

Shares

redeemed

...............................

(14,119)

(176,646)

(6,949)

(91,223)

Net

increase

(decrease)

..........................

89,896

$1,186,713

32,246

$425,860

Year

ended

December

31,

2019

Shares

sold

...................................

19,706

$242,320

11,684

$148,467

Shares

issued

in

reinvestment

of

distributions

..........

4,141

52,819

2,251

28,917

Shares

redeemed

...............................

(31,572)

(397,335)

(7,240)

(90,771)

Net

increase

(decrease)

..........................

(7,725)

$(102,196)

6,695

$86,613

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

141

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

984,096

$13,596,049

497,483

$6,570,044

Shares

issued

in

reinvestment

of

distributions

..........

218,158

2,973,830

52,134

704,076

Shares

redeemed

...............................

(863,437)

(11,860,086)

(332,166)

(4,411,119)

Net

increase

(decrease)

..........................

338,817

$4,709,793

217,451

$2,863,001

Year

ended

December

31,

2019

Shares

sold

a

...................................

952,514

$12,623,647

424,447

$5,488,272

Shares

issued

in

reinvestment

of

distributions

..........

193,791

2,637,056

34,671

454,570

Shares

redeemed

...............................

(945,824)

(12,615,825)

(425,571)

(5,487,815)

Net

increase

(decrease)

..........................

200,481

$2,644,878

33,547

$455,027

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

268,130

$3,553,214

123,874

$1,590,076

Shares

issued

in

reinvestment

of

distributions

..........

51,755

685,266

11,857

157,724

Shares

redeemed

a

..............................

(430,290)

(5,657,758)

(95,131)

(1,231,501)

Net

increase

(decrease)

..........................

(110,405)

$(1,419,278)

40,600

$516,299

Year

ended

December

31,

2019

Shares

sold

...................................

252,589

$3,280,827

98,079

$1,245,027

Shares

issued

in

reinvestment

of

distributions

..........

45,597

607,021

7,362

94,765

Shares

redeemed

a

..............................

(307,638)

(3,997,029)

(64,241)

(815,733)

Net

increase

(decrease)

..........................

(9,452)

$(109,181)

41,200

$524,059

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

93,384

$1,230,778

21,891

$290,820

Shares

issued

in

reinvestment

of

distributions

..........

12,258

165,884

3,609

48,153

Shares

redeemed

...............................

(163,649)

(2,252,857)

(35,947)

(538,726)

Net

increase

(decrease)

..........................

(58,007)

$(856,195)

(10,447)

$(199,753)

Year

ended

December

31,

2019

Shares

sold

...................................

75,334

$997,069

29,039

$379,133

Shares

issued

in

reinvestment

of

distributions

..........

11,988

162,960

2,605

34,053

Shares

redeemed

...............................

(127,008)

(1,675,323)

(30,192)

(399,630)

Net

increase

(decrease)

..........................

(39,686)

$(515,294)

1,452

$13,556

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

142

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

430,880

$5,884,018

378,906

$5,090,496

Shares

issued

in

reinvestment

of

distributions

..........

152

2,104

582

7,964

Shares

redeemed

...............................

(496,277)

(6,631,430)

(333,835)

(4,464,276)

Net

increase

(decrease)

..........................

(65,245)

$(745,308)

45,653

$634,184

Year

ended

December

31,

2019

Shares

sold

...................................

419,754

$5,648,454

434,017

$5,617,339

Shares

issued

in

reinvestment

of

distributions

..........

707

9,518

570

7,487

Shares

redeemed

...............................

(223,416)

(3,016,164)

(389,390)

(5,061,137)

Net

increase

(decrease)

..........................

197,045

$2,641,808

45,197

$563,689

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

75,674

$1,103,938

23,274

$324,325

Shares

issued

in

reinvestment

of

distributions

..........

8,190

113,188

1,061

14,462

Shares

redeemed

...............................

(12,035)

(171,784)

(1,967)

(27,480)

Net

increase

(decrease)

..........................

71,829

$1,045,342

22,368

$311,307

Year

ended

December

31,

2019

Shares

sold

...................................

24,716

$329,525

7,315

$96,559

Shares

issued

in

reinvestment

of

distributions

..........

5,834

80,057

185

2,459

Shares

redeemed

...............................

(20,087)

(270,776)

(11,116)

(129,140)

Net

increase

(decrease)

..........................

10,463

$138,806

(3,616)

$(30,122)

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

143

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

595,211

$8,286,188

305,277

$4,167,208

Shares

issued

in

reinvestment

of

distributions

..........

162,012

2,250,820

40,845

560,509

Shares

redeemed

...............................

(576,915)

(7,960,307)

(226,302)

(2,972,435)

Net

increase

(decrease)

..........................

180,308

$2,576,701

119,820

$1,755,282

Year

ended

December

31,

2019

Shares

sold

a

...................................

593,185

$7,926,250

546,568

$7,111,903

Shares

issued

in

reinvestment

of

distributions

..........

112,785

1,550,074

31,696

420,832

Shares

redeemed

...............................

(839,331)

(11,243,978)

(820,620)

(10,733,055)

Net

increase

(decrease)

..........................

(133,361)

$(1,767,654)

(242,356)

$(3,200,320)

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

150,974

$2,042,530

110,367

$1,505,401

Shares

issued

in

reinvestment

of

distributions

..........

37,615

503,738

11,812

158,976

Shares

redeemed

a

..............................

(202,957)

(2,696,743)

(79,660)

(1,092,928)

Net

increase

(decrease)

..........................

(14,368)

$(150,475)

42,519

$571,449

Year

ended

December

31,

2019

Shares

sold

...................................

161,488

$2,102,339

120,250

$1,566,273

Shares

issued

in

reinvestment

of

distributions

..........

21,997

295,130

5,701

75,396

Shares

redeemed

a

..............................

(224,331)

(2,913,987)

(76,625)

(987,601)

Net

increase

(decrease)

..........................

(40,846)

$(516,518)

49,326

$654,068

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

38,249

$525,037

32,563

$444,531

Shares

issued

in

reinvestment

of

distributions

..........

9,145

123,980

5,064

68,720

Shares

redeemed

...............................

(221,575)

(3,004,033)

(49,817)

(715,261)

Net

increase

(decrease)

..........................

(174,181)

$(2,355,016)

(12,190)

$(202,010)

Year

ended

December

31,

2019

Shares

sold

...................................

58,943

$786,075

59,561

$784,449

Shares

issued

in

reinvestment

of

distributions

..........

9,740

133,313

3,210

42,748

Shares

redeemed

...............................

(157,555)

(2,110,104)

(48,603)

(642,919)

Net

increase

(decrease)

..........................

(88,872)

$(1,190,716)

14,168

$184,278

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

144

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

389,524

$5,397,365

405,186

$5,532,677

Shares

issued

in

reinvestment

of

distributions

..........

18

285

13

199

Shares

redeemed

...............................

(307,199)

(4,359,987)

(211,312)

(2,904,320)

Net

increase

(decrease)

..........................

82,343

$1,037,663

193,887

$2,628,556

Year

ended

December

31,

2019

Shares

sold

...................................

529,427

$7,107,373

462,889

$6,054,148

Shares

issued

in

reinvestment

of

distributions

..........

24

337

1

16

Shares

redeemed

...............................

(182,629)

(2,461,589)

(216,990)

(2,849,556)

Net

increase

(decrease)

..........................

346,822

$4,646,121

245,900

$3,204,608

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

19,633

$296,010

6,539

$88,953

Shares

issued

in

reinvestment

of

distributions

..........

2,819

39,717

1,546

21,331

Shares

redeemed

...............................

(11,049)

(152,331)

(6,491)

(89,008)

Net

increase

(decrease)

..........................

11,403

$183,396

1,594

$21,276

Year

ended

December

31,

2019

Shares

sold

...................................

10,884

$146,062

9,846

$126,331

Shares

issued

in

reinvestment

of

distributions

..........

1,807

25,066

1,023

13,716

Shares

redeemed

...............................

(8,476)

(114,469)

(6,702)

(88,702)

Net

increase

(decrease)

..........................

4,215

$56,659

4,167

$51,345

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

145

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

366,475

$4,201,261

Shares

issued

in

reinvestment

of

distributions

..........

21,021

243,053

Shares

redeemed

...............................

(158,030)

(1,827,717)

Net

increase

(decrease)

..........................

229,466

$2,616,597

Year

ended

December

31,

2019

Shares

sold

a

...................................

309,652

$3,402,692

Shares

issued

in

reinvestment

of

distributions

..........

12,013

134,886

Shares

redeemed

...............................

(243,462)

(2,653,967)

Net

increase

(decrease)

..........................

78,203

$883,611

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

118,761

$1,355,736

Shares

issued

in

reinvestment

of

distributions

..........

7,215

80,424

Shares

redeemed

a

..............................

(45,018)

(519,043)

Net

increase

(decrease)

..........................

80,958

$917,117

Year

ended

December

31,

2019

Shares

sold

...................................

125,134

$1,361,318

Shares

issued

in

reinvestment

of

distributions

..........

3,622

39,940

Shares

redeemed

a

..............................

(63,795)

(693,970)

Net

increase

(decrease)

..........................

64,961

$707,288

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

25,592

$295,783

Shares

issued

in

reinvestment

of

distributions

..........

1,149

12,920

Shares

redeemed

...............................

(28,943)

(360,404)

Net

increase

(decrease)

..........................

(2,202)

$(51,701)

Year

ended

December

31,

2019

Shares

sold

...................................

23,437

$257,833

Shares

issued

in

reinvestment

of

distributions

..........

793

8,843

Shares

redeemed

...............................

(21,798)

(236,597)

Net

increase

(decrease)

..........................

2,432

$30,079

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

146

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Management

and

Asset

Allocation

Fees

The

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

404,086

$4,666,387

Shares

issued

in

reinvestment

of

distributions

..........

14

171

Shares

redeemed

...............................

(123,550)

(1,438,009)

Net

increase

(decrease)

..........................

280,550

$3,228,549

Year

ended

December

31,

2019

Shares

sold

...................................

350,574

$3,859,523

Shares

issued

in

reinvestment

of

distributions

..........

8

90

Shares

redeemed

...............................

(97,304)

(1,083,684)

Net

increase

(decrease)

..........................

253,278

$2,775,929

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

19,447

$244,925

Shares

issued

in

reinvestment

of

distributions

..........

463

5,555

Shares

redeemed

...............................

(3,037)

(35,413)

Net

increase

(decrease)

..........................

16,873

$215,067

Year

ended

December

31,

2019

Shares

sold

...................................

8,142

$90,279

Shares

issued

in

reinvestment

of

distributions

..........

209

2,359

Shares

redeemed

...............................

(1,751)

(19,164)

Net

increase

(decrease)

..........................

6,600

$73,474

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

147

franklintempleton.com

Annual

Report

Franklin

LifeSmart

TM

Retirement

Income

Fund pays

an

investment

management

fee

to Advisers of

0.25%

per

year

of

the

average

daily

net

assets

of

the

Fund. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$10,155

$5,901

$19,988

CDSC

retained

............................................

$301

$1,028

$794

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$14,435

$24,858

$13,758

3.

Transactions

with

Affiliates

(continued)

a.

Management

and

Asset

Allocation

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

148

franklintempleton.com

Annual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

year

ended

December

31,

2020,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

CDSC

retained

............................................

$417

$7,965

$817

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$21,668

$13,829

$14,550

CDSC

retained

............................................

$1,699

$374

$1,190

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Transfer

agent

fees

.........................................

$54,605

$36,883

$132,060

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Transfer

agent

fees

.........................................

$79,892

$156,283

$81,905

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Transfer

agent

fees

.........................................

$149,454

$105,369

$117,344

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

149

franklintempleton.com

Annual

Report

f.

Investments

in

Underlying

Funds

The

Funds

invest

in

FT

Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

FT

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

and

asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund. 

Investments

in

FT

Underlying

Funds

for

the

year

ended

December

31,

2020,

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Non-Controlled

Affiliates

Franklin

Income

Fund,

Class

R6

.

$

10,341,156

$

2,082,912

$

(480,100)

$

(10,343)

$

8,541

$

11,942,166

5,237,792

$

607,526

Franklin

International

Growth

Fund,

Class

R6

................

—

2,460,953

—

—

348,747

2,809,700

129,958

63,814

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

—

1,092,064

—

—

35,958

1,128,022

42,375

18,218

Franklin

Liberty

International

Aggregate

Bond

ETF

........

—

1,077,060

—

—

7,964

1,085,024

42,475

1,799

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

5,239,629

(99,982)

(1,559)

(746)

5,137,342

189,700

100,962

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

10,153,406

2,835,772

(1,847,371)

(8,385)

396,402

11,529,824

440,911

348,938

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

3,639,477

(734,592)

(1,525)

(39,150)

2,864,210

114,775

28,991

Franklin

LibertyQ

U.S.

Equity

ETF

5,190,696

1,563,672

(3,367,274)

(35,720)

169,251

3,520,625

92,917

75,560

Franklin

U.S.

Core

Equity

(IU)

Fund

—

2,558,849

—

—

581,285

3,140,134

250,409

58,848

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

.....

10,217,615

1,132,281

(7,539,339)

163,548

(29,618)

3,944,487

645,579

204,750

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

870,194

17,652,932

(17,224,758)

—

—

1,298,368

1,298,368

1,845

Templeton

Developing

Markets

Trust,

Class

R6

............

—

537,022

—

—

79,483

616,505

24,435

15,124

a

Templeton

Foreign

Fund,

Class

R6

—

1,084,215

—

—

189,290

1,273,505

181,929

21,725

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,821,838

238,464

(1,891,721)

(127,266)

(41,315)

—

b

56,925

Total

Non-Controlled

Affiliates

$38,594,905

$43,195,302

$(33,185,137)

$

(21,250)

$

1,706,

0

92

$50,289,912

$

1,605,025

Total

Affiliated

Securities

....

$38,594,905

$43,195,302

$(33,185,137)

$(21,250)

$1,706,092

$50,289,912

$1,605,025

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,235,597

422,911

(610,102)

(109,602)

70,523

1,009,327

86,786

31,692

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

150

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

Franklin

FTSE

China

ETF

.....

$

—

$

196,401

$

(3,938)

$

(22)

$

799

$

193,240

6,075

$

1,512

Franklin

FTSE

Europe

ETF

....

481,694

428,549

(237,196)

(57,079)

59,694

675,662

25,922

11,975

Franklin

FTSE

Japan

ETF

.....

233,206

192,505

(110,384)

(16,515)

50,924

349,736

11,744

4,802

Franklin

Growth

Fund,

Class

R6

.

4,136,520

1,695,527

(1,975,340)

236,679

484,418

4,577,804

33,735

344,817

a

Franklin

International

Core

Equity

(IU)

Fund

................

2,199,303

665,409

(816,980)

(77,407)

137,124

2,107,449

177,994

46,029

Franklin

International

Growth

Fund,

Class

R6

................

948,429

203,786

(580,750)

25,116

106,090

702,671

32,501

15,959

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

555,914

182,717

(193,833)

(1,711)

25,356

568,443

21,354

30,656

Franklin

Liberty

International

Aggregate

Bond

ETF

........

—

1,759,436

(288,085)

8

10,251

1,481,610

58,000

6,921

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

1,568,076

(38,649)

63

2,640

1,532,130

56,575

30,464

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

1,681,600

(224,927)

(25)

1,146

1,457,794

15,225

11,718

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

243,842

(4,804)

(949)

(50,835)

187,254

9,525

15,053

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

9,127,756

3,402,177

(3,737,347)

8,931

333,175

9,134,692

349,319

289,906

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

2,151,193

(246,050)

1,109

(27,764)

1,878,488

75,275

16,739

Franklin

LibertyQ

Emerging

Markets

ETF

..............

814,265

—

(710,047)

(31,745)

(72,473)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

3,843,792

1,770,953

(2,337,607)

(32,113)

104,906

3,349,931

88,412

64,396

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

3,679,911

200,541

(2,175,097)

(34,385)

8,061

1,679,031

173,096

80,469

Franklin

Rising

Dividends

Fund,

Class

R6

................

2,066,897

694,035

(675,499)

19,044

276,713

2,381,190

29,735

25,983

Franklin

U.S.

Core

Equity

(IU)

Fund

3,553,150

1,271,927

(1,302,657)

10,458

569,380

4,102,258

327,134

89,674

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

272,558

10,714,738

(10,834,013)

—

—

153,283

153,283

1,026

Templeton

Developing

Markets

Trust,

Class

R6

............

—

1,174,524

(429,575)

(80,269)

147,844

812,524

32,205

21,304

a

Templeton

Foreign

Fund,

Class

R6

944,789

440,006

(382,147)

(82,515)

50,728

970,861

138,694

16,562

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

151

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

Templeton

Global

Total

Return

Fund,

Class

R6

............

$

1,624,246

$

128,196

$

(1,184,983)

$

(68,808)

$

(68,647)

$

430,004

43,087

$

47,897

Total

Non-Controlled

Affiliates

$35,718,027

$31,189,049

$(29,100,010)

(291,737)

2,220,053

$39,735,382

1,205,554

Total

Affiliated

Securities

....

$35,718,027

$31,189,049

$(29,100,010)

$(291,737)

$2,220,053

$39,735,382

$1,205,554

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,520,225

1,256,583

(1,849,540)

(270,652)

291,012

3,947,628

339,435

132,668

Franklin

FTSE

China

ETF

.....

—

741,253

—

—

3,078

744,331

23,400

5,823

Franklin

FTSE

Europe

ETF

....

1,695,209

1,471,697

(668,490)

(177,460)

175,986

2,496,942

95,796

44,977

Franklin

FTSE

Japan

ETF

.....

820,404

751,463

(379,761)

(58,514)

190,278

1,323,870

44,455

18,599

Franklin

Growth

Fund,

Class

R6

.

15,490,253

5,696,392

(5,502,358)

696,348

1,926,231

18,306,866

134,907

1,378,940

a

Franklin

International

Core

Equity

(IU)

Fund

................

7,730,338

2,234,683

(2,206,991)

(288,269)

537,682

8,007,443

676,304

172,524

Franklin

International

Growth

Fund,

Class

R6

................

3,473,014

664,996

(1,935,131)

100,504

417,667

2,721,050

125,858

61,800

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,314,947

572,596

(510,123)

(11,051)

74,465

1,440,834

54,126

78,983

Franklin

Liberty

International

Aggregate

Bond

ETF

........

—

4,402,533

(761,916)

(43)

26,411

3,666,985

143,550

16,911

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

3,765,220

—

—

9,250

3,774,470

139,375

73,778

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

4,180,539

(579,291)

686

3,054

3,604,988

37,650

28,890

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

750,013

—

—

(163,677)

586,336

29,825

47,178

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

22,419,105

13,546,242

(12,626,707)

107,859

825,957

24,272,456

928,201

764,302

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

5,638,851

(682,927)

6,256

(67,257)

4,894,923

196,150

40,705

Franklin

LibertyQ

Emerging

Markets

ETF

..............

2,992,786

—

(2,609,737)

(116,691)

(266,358)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

14,316,509

6,005,227

(7,913,231)

(143,775)

317,440

12,582,170

332,071

241,234

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

8,795,133

1,319,005

(5,641,893)

(159,385)

77,685

4,390,545

452,634

203,444

Franklin

Rising

Dividends

Fund,

Class

R6

................

7,727,333

2,294,455

(1,979,928)

179,216

887,883

9,108,959

113,748

99,433

Franklin

U.S.

Core

Equity

(IU)

Fund

12,862,146

4,062,958

(3,271,890)

(105,781)

2,242,645

15,790,078

1,259,177

340,052

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

1,981

23,687,047

(22,778,155)

—

—

910,873

910,873

3,561

Templeton

Developing

Markets

Trust,

Class

R6

............

—

3,852,574

(1,110,892)

(217,151)

622,820

3,147,351

124,746

84,150

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

152

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

Templeton

Foreign

Fund,

Class

R6

$

3,424,502

$

1,503,279

$

(1,044,749)

$

(239,575)

$

140,264

$

3,783,721

540,532

$

64,548

Templeton

Global

Total

Return

Fund,

Class

R6

............

3,958,203

406,537

(2,661,590)

(173,267)

(183,016)

1,346,867

134,957

124,823

Total

Non-Controlled

Affiliates

$111,542,088

$88,804,143

$(76,715,300)

(870,745)

8,089,500

$130,849,686

4,027,323

Total

Affiliated

Securities

....

$111,542,088

$88,804,143

$(76,715,300)

$(870,745)

$8,089,500

$130,849,686

$4,027,323

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,399,088

821,024

(812,275)

(106,562)

198,507

2,499,782

214,943

81,471

Franklin

FTSE

China

ETF

.....

—

500,594

—

—

2,370

502,964

15,812

3,683

Franklin

FTSE

Europe

ETF

....

909,126

872,298

(334,583)

(91,535)

111,018

1,466,324

56,256

25,759

Franklin

FTSE

Japan

ETF

.....

459,325

415,249

(219,193)

(30,681)

106,965

731,665

24,569

10,296

Franklin

Growth

Fund,

Class

R6

.

8,511,403

3,332,019

(3,029,281)

114,774

1,416,663

10,345,578

76,239

779,267

a

Franklin

International

Core

Equity

(IU)

Fund

................

4,146,561

1,551,213

(1,173,847)

(187,371)

347,537

4,684,093

395,616

97,986

Franklin

International

Growth

Fund,

Class

R6

................

1,862,871

291,419

(938,240)

40,318

250,410

1,506,778

69,694

34,222

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

454,394

238,307

(197,108)

(5,085)

32,868

523,376

19,661

27,816

Franklin

Liberty

International

Aggregate

Bond

ETF

........

—

1,757,707

(514,875)

(86)

9,802

1,252,548

49,033

6,024

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

1,427,290

(60,839)

(925)

2,599

1,368,125

50,519

26,478

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

1,614,435

(279,689)

410

1,131

1,336,287

13,956

10,639

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

362,971

—

—

(78,404)

284,567

14,475

22,873

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

7,599,279

7,195,741

(6,505,541)

47,129

275,528

8,612,136

329,336

272,212

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

2,140,294

(385,992)

2,127

(22,306)

1,734,123

69,490

14,455

Franklin

LibertyQ

Emerging

Markets

ETF

..............

1,627,606

27,027

(1,442,662)

(70,531)

(141,440)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

7,938,636

3,413,590

(4,195,470)

(142,777)

277,118

7,291,097

192,428

139,962

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

3,046,531

933,396

(2,397,748)

(55,025)

39,814

1,566,968

161,543

71,523

Franklin

Rising

Dividends

Fund,

Class

R6

................

4,255,533

1,361,865

(1,005,668)

(56,242)

689,422

5,244,910

65,496

56,915

Franklin

U.S.

Core

Equity

(IU)

Fund

7,042,457

2,738,596

(1,656,928)

(104,982)

1,332,977

9,352,120

745,783

199,740

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

687,164

18,041,616

(18,267,523)

—

—

461,257

461,257

2,155

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

153

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

Templeton

Developing

Markets

Trust,

Class

R6

............

$

—

$

2,210,886

$

(444,426)

$

(80,009)

$

381,516

$

2,067,967

81,965

$

54,997

a

Templeton

Foreign

Fund,

Class

R6

1,836,950

905,466

(516,483)

(142,627)

88,411

2,171,717

310,245

37,048

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,279,699

301,687

(799,038)

(53,152)

(66,078)

663,118

66,445

46,153

Total

Non-Controlled

Affiliates

$54,056,623

$52,454,690

$(45,177,409)

(922,832)

5,256,428

$65,667,500

2,021,674

Total

Affiliated

Securities

....

$54,056,623

$52,454,690

$(45,177,409)

$(922,832)

$5,256,428

$65,667,500

$2,021,674

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

5,841,353

1,305,800

(1,359,265)

(13,928)

457,856

6,231,816

535,840

208,859

Franklin

FTSE

China

ETF

.....

—

1,169,692

—

—

4,855

1,174,547

36,925

9,188

Franklin

FTSE

Europe

ETF

....

2,174,909

1,480,465

(449,116)

(111,816)

190,607

3,285,049

126,032

61,332

Franklin

FTSE

Japan

ETF

.....

1,052,721

760,638

(265,335)

(43,135)

237,003

1,741,892

58,492

25,475

Franklin

Growth

Fund,

Class

R6

.

20,506,241

3,631,330

(5,004,308)

726,420

3,133,858

22,993,541

169,444

1,745,372

a

Franklin

International

Core

Equity

(IU)

Fund

................

9,919,205

1,663,931

(1,551,134)

(232,992)

757,782

10,556,792

891,621

226,537

Franklin

International

Growth

Fund,

Class

R6

................

4,457,050

302,430

(2,191,376)

191,127

557,238

3,316,469

153,398

75,324

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

694,303

222,419

(199,532)

(6,773)

34,331

744,748

27,977

38,948

Franklin

Liberty

International

Aggregate

Bond

ETF

........

—

2,317,801

(292,010)

169

14,447

2,040,407

79,875

9,167

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

1,947,243

—

—

3,295

1,950,538

72,025

38,515

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

2,030,803

(107,806)

204

1,374

1,924,575

20,100

14,832

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

740,229

—

—

(162,249)

577,980

29,400

46,515

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

11,589,828

6,474,232

(7,487,636)

47,307

404,770

11,028,501

421,740

366,216

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

2,586,704

(162,778)

1,515

(34,128)

2,391,313

95,825

20,539

Franklin

LibertyQ

Emerging

Markets

ETF

..............

3,892,441

—

(3,394,245)

(156,530)

(341,666)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

19,129,698

5,448,976

(8,764,204)

(112,050)

555,270

16,257,690

429,076

319,844

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

4,689,585

483,400

(2,898,235)

(74,590)

24,849

2,225,009

229,382

103,094

Franklin

Rising

Dividends

Fund,

Class

R6

................

10,199,784

1,154,116

(1,192,029)

(49,293)

1,568,285

11,680,863

145,865

131,630

Franklin

U.S.

Core

Equity

(IU)

Fund

17,214,672

3,708,179

(3,150,420)

(34,447)

3,065,782

20,803,766

1,658,993

455,771

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

154

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$

1,866

$

20,488,367

$

(20,339,943)

$

—

$

—

$

150,290

150,290

$

3,933

Templeton

Developing

Markets

Trust,

Class

R6

............

—

4,640,053

(508,637)

(22,788)

1,009,918

5,118,546

202,875

137,482

a

Templeton

Foreign

Fund,

Class

R6

4,394,327

1,247,011

(880,105)

(173,307)

93,946

4,681,872

668,839

79,870

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,924,420

253,245

(644,770)

(33,559)

(148,427)

1,350,909

135,362

74,171

Total

Non-Controlled

Affiliates

$117,682,403

$64,057,064

$(60,842,884)

(98,466)

11,428,996

$132,227,113

4,192,614

Total

Affiliated

Securities

....

$117,682,403

$64,057,064

$(60,842,884)

$(98,466)

$11,428,996

$132,227,113

$4,192,614

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,391,108

679,923

(597,866)

10,469

219,606

2,703,240

232,437

90,168

Franklin

FTSE

China

ETF

.....

—

509,216

(2,379)

3

2,104

508,944

16,000

3,981

Franklin

FTSE

Europe

ETF

....

893,395

701,392

(172,243)

(11,403)

94,828

1,505,969

57,777

28,184

Franklin

FTSE

Japan

ETF

.....

431,998

368,807

(98,708)

(12,872)

113,971

803,196

26,971

11,707

Franklin

Growth

Fund,

Class

R6

.

8,663,276

1,551,169

(1,426,721)

93,012

1,679,648

10,560,384

77,822

812,514

a

Franklin

International

Core

Equity

(IU)

Fund

................

4,075,168

892,804

(322,088)

(28,786)

382,030

4,999,128

422,224

102,918

Franklin

International

Growth

Fund,

Class

R6

................

1,811,218

172,712

(773,864)

72,213

298,576

1,580,855

73,120

35,904

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

172,928

53,935

(42,347)

(2,457)

7,741

189,800

7,130

9,278

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

498,254

(2,033)

2

721

496,944

18,350

9,862

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

492,876

(4,789)

(6)

244

488,325

5,100

3,654

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

307,528

—

—

(65,228)

242,300

12,325

19,450

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

3,042,427

1,918,218

(2,174,511)

(143)

98,302

2,884,293

110,298

89,568

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

622,621

(4,418)

(53)

(8,624)

609,526

24,425

5,127

Franklin

LibertyQ

Emerging

Markets

ETF

..............

1,596,720

38,288

(1,425,469)

(69,408)

(140,131)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

8,091,613

2,376,676

(3,268,856)

(43,123)

354,359

7,510,669

198,223

142,462

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

1,215,264

126,096

(756,743)

(21,904)

4,330

567,043

58,458

25,165

Franklin

Rising

Dividends

Fund,

Class

R6

................

4,338,643

492,105

(326,146)

1,239

734,194

5,240,035

65,435

58,066

Franklin

U.S.

Core

Equity

(IU)

Fund

7,192,094

1,795,234

(640,630)

15,099

1,430,613

9,792,410

780,894

207,556

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

155

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$

800,528

$

10,050,921

$

(10,714,066)

$

—

$

—

$

137,383

137,383

$

1,589

Templeton

Developing

Markets

Trust,

Class

R6

............

—

2,041,774

(316,949)

(2,871)

452,994

2,174,948

86,205

58,405

a

Templeton

Foreign

Fund,

Class

R6

1,826,881

622,400

(324,047)

(32,936)

61,592

2,153,890

307,699

36,744

Total

Non-Controlled

Affiliates

$46,543,261

$26,312,949

$(23,394,873)

(33,925)

5,721,870

$55,149,282

1,752,302

Total

Affiliated

Securities

....

$46,543,261

$26,312,949

$(23,394,873)

$(33,925)

$5,721,870

$55,149,282

$1,752,302

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,842,006

896,869

(1,024,387)

26,194

384,576

5,125,258

440,693

172,564

Franklin

FTSE

China

ETF

.....

—

964,581

(2,379)

3

3,993

966,198

30,375

7,558

Franklin

FTSE

Europe

ETF

....

1,754,471

1,073,756

(277,568)

(38,618)

136,288

2,648,329

101,604

49,975

Franklin

FTSE

Japan

ETF

.....

849,169

564,610

(234,053)

(14,300)

176,699

1,342,125

45,068

20,436

Franklin

Growth

Fund,

Class

R6

.

17,291,424

1,889,144

(2,914,008)

337,585

2,969,623

19,573,768

144,243

1,478,167

a

Franklin

International

Core

Equity

(IU)

Fund

................

8,000,985

933,064

(737,208)

(97,181)

603,253

8,702,913

735,043

184,999

Franklin

International

Growth

Fund,

Class

R6

................

3,595,852

175,755

(1,622,847)

166,759

482,537

2,798,056

129,420

63,549

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

529,609

—

—

(114,800)

414,809

21,100

33,355

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

2,945,554

1,391,723

(2,798,579)

8,596

67,364

1,614,658

61,746

62,637

a

Franklin

LibertyQ

Emerging

Markets

ETF

..............

3,264,356

—

(2,846,549)

(133,903)

(283,904)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

16,145,786

3,950,154

(6,677,407)

(143,232)

540,037

13,815,338

364,617

268,707

Franklin

Rising

Dividends

Fund,

Class

R6

................

8,659,213

399,232

(624,989)

4,826

1,304,702

9,742,984

121,666

109,262

Franklin

U.S.

Core

Equity

(IU)

Fund

14,357,868

2,029,526

(1,176,611)

50,522

2,581,166

17,842,471

1,422,845

385,357

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

648,227

12,032,263

(12,622,844)

—

—

57,646

57,646

2,312

Templeton

Developing

Markets

Trust,

Class

R6

............

—

3,878,251

(653,948)

17,453

848,160

4,089,916

162,105

110,343

a

Templeton

Foreign

Fund,

Class

R6

3,544,825

853,580

(372,369)

(75,349)

72,582

4,023,269

574,753

68,634

Total

Non-Controlled

Affiliates

$85,899,736

$31,562,117

$(34,585,746)

109,355

9,772,276

$92,757,738

3,017,855

Total

Affiliated

Securities

....

$85,899,736

$31,562,117

$(34,585,746)

$109,355

$9,772,276

$92,757,738

$3,017,855

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,269,867

774,733

(529,611)

9,617

225,233

2,749,839

236,444

87,105

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

156

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

Franklin

FTSE

China

ETF

.....

$

—

$

554,974

$

—

$

—

$

3,274

$

558,248

17,550

$

3,994

Franklin

FTSE

Europe

ETF

....

839,386

671,441

(81,478)

(14,675)

112,095

1,526,769

58,575

28,120

Franklin

FTSE

Japan

ETF

.....

406,266

349,469

(85,609)

(7,663)

110,001

772,464

25,939

11,362

Franklin

Growth

Fund,

Class

R6

.

8,283,790

1,537,803

(1,479,517)

42,084

1,648,765

10,032,925

73,935

775,543

a

Franklin

International

Core

Equity

(IU)

Fund

................

3,829,422

1,113,387

(296,308)

(42,186)

403,959

5,008,274

422,996

99,166

Franklin

International

Growth

Fund,

Class

R6

................

1,721,122

141,250

(704,587)

78,507

288,819

1,525,111

70,542

35,520

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

265,410

—

—

(56,531)

208,879

10,625

16,771

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

1,143,020

518,376

(1,340,541)

10,052

16,705

347,612

13,293

19,022

a

Franklin

LibertyQ

Emerging

Markets

ETF

..............

1,544,628

25,526

(1,369,006)

(67,528)

(133,620)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

7,704,693

2,715,947

(3,188,352)

(71,037)

365,294

7,526,545

198,642

138,259

Franklin

Rising

Dividends

Fund,

Class

R6

................

4,143,530

454,935

(182,125)

(3,098)

708,735

5,121,977

63,961

55,665

Franklin

U.S.

Core

Equity

(IU)

Fund

6,865,361

1,639,486

(473,019)

(12,422)

1,378,324

9,397,730

749,420

198,903

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

508,225

8,557,670

(9,065,895)

—

—

—

b

—

1,310

Templeton

Developing

Markets

Trust,

Class

R6

............

—

1,973,405

(257,176)

2,279

444,776

2,163,284

85,743

58,256

a

Templeton

Foreign

Fund,

Class

R6

1,696,698

628,267

(180,244)

(7,660)

60,280

2,197,341

313,906

38,161

Total

Non-Controlled

Affiliates

$40,956,008

$21,922,079

$(19,233,468)

(83,730)

5,576,109

$49,136,998

1,567,157

Total

Affiliated

Securities

....

$40,956,008

$21,922,079

$(19,233,468)

$(83,730)

$5,576,109

$49,136,998

$1,567,157

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,036,424

587,211

(246,237)

6,364

148,520

1,532,282

131,753

46,000

Franklin

FTSE

China

ETF

.....

—

313,652

(1,586)

2

1,950

314,018

9,872

2,177

Franklin

FTSE

Europe

ETF

....

388,396

408,573

(26,921)

(4,152)

71,657

837,553

32,133

15,242

Franklin

FTSE

Japan

ETF

.....

195,314

202,951

(22,613)

(3,543)

62,887

434,996

14,607

6,164

Franklin

Growth

Fund,

Class

R6

.

3,798,188

1,523,922

(517,390)

(2,609)

936,595

5,738,706

42,290

429,185

a

Franklin

International

Core

Equity

(IU)

Fund

................

1,747,933

912,332

(94,621)

(9,289)

246,978

2,803,333

236,768

52,344

Franklin

International

Growth

Fund,

Class

R6

................

780,860

190,957

(311,977)

24,647

179,129

863,616

39,945

19,614

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

139,827

—

—

(28,752)

111,075

5,650

8,892

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

539,834

335,047

(663,317)

4,256

8,181

224,001

8,566

10,335

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

157

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

operating expenses

(excluding

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

does

not

exceed

0.05%

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

expenses

(including

acquired

fund

fees

and

expenses

but

excluding

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

do not

exceed

0.45%

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds’

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.00%

based

on

the

average

net

assets

of

the

class

until

April

30,

2022.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the year

ended

December

31,

2020, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

Franklin

LibertyQ

Emerging

Markets

ETF

..............

$

709,395

$

18,769

$

(634,832)

$

(50,002)

$

(43,330)

$

—

b

—

$

—

Franklin

LibertyQ

U.S.

Equity

ETF

3,540,393

2,096,943

(1,623,139)

(72,047)

295,847

4,237,997

111,850

73,436

Franklin

Rising

Dividends

Fund,

Class

R6

................

1,898,474

680,831

(121,620)

(8,355)

417,989

2,867,319

35,806

29,561

Franklin

U.S.

Core

Equity

(IU)

Fund

3,161,422

1,533,410

(176,864)

(13,047)

787,000

5,291,921

422,003

107,275

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

396,974

7,167,248

(7,341,484)

—

—

222,738

222,738

767

Templeton

Developing

Markets

Trust,

Class

R6

............

—

1,102,554

(140,766)

(5,875)

251,790

1,207,703

47,868

32,343

a

Templeton

Foreign

Fund,

Class

R6

779,392

517,836

(53,575)

(9,433)

64,525

1,298,745

185,535

22,156

Total

Non-Controlled

Affiliates

$18,972,999

$17,732,063

$(11,976,942)

(143,083)

3,400,966

$27,986,003

855,491

Total

Affiliated

Securities

....

$18,972,999

$17,732,063

$(11,976,942)

$(143,083)

$3,400,966

$27,986,003

$855,491

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statement

of

Operations.

b

As

of

December

31,

2020,

no

longer

held

by

the

fund.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

158

franklintempleton.com

Annual

Report

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended

December

31,

2020,

the

following

Funds

utilized

capital

loss

carryforwards

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$

—

Long

term

................................................................................

1,334,004

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Capital

loss

utilized

carryforwards

...............................................

$448,603

$201

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

159

franklintempleton.com

Annual

Report

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2020

and

2019,

was

as

follows:

At

December

31,

2020,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

2020

2019

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$2,025,439

$1,889,782

$817,914

$1,066,754

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

2020

2019

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$2,029,059

$2,616,420

$1,051,011

$1,013,916

Long

term

capital

gain

....................

2,472,057

1,881,660

687,779

589,632

$4,501,116

$4,498,080

$1,738,790

$1,603,548

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

2020

2019

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$1,891,407

$2,124,369

$973,437

$675,712

Long

term

capital

gain

....................

3,249,006

2,519,106

753,333

516,792

$5,140,413

$4,643,475

$1,726,770

$1,192,504

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

2020

2019

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$1,406,789

$1,277,107

$831,990

$517,820

Long

term

capital

gain

....................

2,496,432

1,381,264

638,553

434,521

$3,903,221

$2,658,371

$1,470,543

$952,341

Franklin

LifeSmart™

2055

Retirement

Target

Fund

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$398,408

$177,815

Long

term

capital

gain

....................

201,707

144,701

$600,115

$322,516

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

160

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

return

of

capital

distributions,

short

term

capital

gains

distributions

from

Underlying

Funds,

and

wash

sales.

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

a

a

a

a

Cost

of

investments

........................................

$54,235,945

$38,033,261

$116,895,907

Unrealized

appreciation

......................................

$3,713,625

$5,981,685

$25,790,377

Unrealized

depreciation

......................................

(287,953)

(543,277)

(1,414,641)

Net

unrealized

appreciation

(depreciation)

........................

$3,425,672

$5,438,408

$24,375,736

Distributable

earnings:

Undistributed

ordinary

income

.................................

$229,437

$94,801

$45,377

Undistributed

long

term

capital

gains

............................

—

420,855

1,870,705

Total

distributable

earnings

...................................

$229,437

$515,656

$1,916,082

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

a

a

a

a

Cost

of

investments

........................................

$59,507,238

$112,139,950

$46,851,059

Unrealized

appreciation

......................................

$12,354,966

$32,161,434

$12,242,660

Unrealized

depreciation

......................................

(798,959)

(1,415,725)

(317,367)

Net

unrealized

appreciation

(depreciation)

........................

$11,556,007

$30,745,709

$11,925,293

Distributable

earnings:

Undistributed

ordinary

income

.................................

$28,197

$803,336

$330,873

Undistributed

long

term

capital

gains

............................

678,911

1,724,884

740,896

Total

distributable

earnings

...................................

$707,108

$2,528,220

$1,071,769

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

a

a

a

a

Cost

of

investments

........................................

$76,081,987

$42,051,604

$24,782,570

Unrealized

appreciation

......................................

$25,594,826

$11,711,603

$5,670,801

Unrealized

depreciation

......................................

(744,475)

(441,430)

(225,083)

Net

unrealized

appreciation

(depreciation)

........................

$24,850,351

$11,270,173

$5,445,718

Distributable

earnings:

Undistributed

ordinary

income

.................................

$638,490

$328,648

$170,378

Undistributed

long

term

capital

gains

............................

1,365,022

727,066

374,233

Total

distributable

earnings

...................................

$2,003,512

$1,055,714

$544,611

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

161

franklintempleton.com

Annual

Report

The

Funds,

except

for

Franklin

LifeSmart

TM

Retirement

Income

Fund,

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

realized

capital

gains.

6.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

year

ended

December

31,

2020,

were

as

follows:

7. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

8.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matured

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

5,

2021,

the

Borrowers,

renewed

the

Global

Credit

Facility

for

a

one

year

term,

maturing

February

4,

2022,

for

a

total

of

$2.675

billion.

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Purchases

...............................................

$29,574,469

$27,535,821

$86,674,555

Sales

...................................................

$26,059,237

$29,084,198

$84,420,997

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Purchases

...............................................

$46,868,117

$61,653,107

$22,685,880

Sales

...................................................

$40,958,412

$60,190,684

$18,570,450

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Purchases

...............................................

$31,919,743

$20,334,081

$14,521,812

Sales

...................................................

$32,345,208

$15,492,388

$7,477,264

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

162

franklintempleton.com

Annual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

December

31,

2020,

the

Funds

did

not

use

the

Global

Credit

Facility.

9.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2020,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

50,989,756

$

—

$

—

$

50,989,756

Index-Linked

Notes

......................

—

5,373,493

—

5,373,493

Short

Term

Investments

...................

1,298,368

—

—

1,298,368

Total

Investments

in

Securities

...........

$52,288,124

$5,373,493

$—

$57,661,617

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

43,157,973

—

—

43,157,973

Short

Term

Investments

...................

153,283

160,413

—

313,696

Total

Investments

in

Securities

...........

$43,311,256

$160,413

$—

$43,471,669

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

139,581,891

—

—

139,581,891

Short

Term

Investments

...................

910,873

778,879

—

1,689,752

Total

Investments

in

Securities

...........

$140,492,764

$778,879

$—

$141,271,643

8.

Credit

Facility

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

163

franklintempleton.com

Annual

Report

10.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

70,382,908

$

—

$

—

$

70,382,908

Short

Term

Investments

...................

461,257

219,080

—

680,337

Total

Investments

in

Securities

...........

$70,844,165

$219,080

$—

$71,063,245

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

141,537,022

—

—

141,537,022

Short

Term

Investments

...................

150,290

1,198,347

—

1,348,637

Total

Investments

in

Securities

...........

$141,687,312

$1,198,347

$—

$142,885,659

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

58,377,354

—

—

58,377,354

Short

Term

Investments

...................

137,383

261,615

—

398,998

Total

Investments

in

Securities

...........

$58,514,737

$261,615

$—

$58,776,352

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

99,963,299

—

—

99,963,299

Short

Term

Investments

...................

57,646

911,393

—

969,039

Total

Investments

in

Securities

...........

$100,020,945

$911,393

$—

$100,932,338

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

53,065,921

—

—

53,065,921

Short

Term

Investments

...................

—

255,856

—

255,856

Total

Investments

in

Securities

...........

$53,065,921

$255,856

$—

$53,321,777

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

30,005,550

—

—

30,005,550

Short

Term

Investments

...................

222,738

—

—

222,738

Total

Investments

in

Securities

...........

$30,228,288

$—

$—

$30,228,288

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

9.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

164

franklintempleton.com

Annual

Report

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

11.

Subsequent

Event

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

in

addition

to

those

events

previously

disclosed,

the

following

subsequent

event

requires

disclosure:

Effective

January

29,

2021,

the

Trust

began

offering

shares

of

the

Franklin

LifeSmart™

2060

Retirement

Target

Fund.

Abbreviations

Selected

Portfolio

ETF

Exchange-Traded

Fund

10.

New

Accounting

Pronouncements

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

165

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

LifeSmart™

Retirement

Income

Fund,

Franklin

LifeSmart™

2020

Retirement

Target

Fund,

Franklin

LifeSmart™

2025

Retirement

Target

Fund,

Franklin

LifeSmart™

2030

Retirement

Target

Fund,

Franklin

LifeSmart™

2035

Retirement

Target

Fund,

Franklin

LifeSmart™

2040

Retirement

Target

Fund,

Franklin

LifeSmart™

2045

Retirement

Target

Fund,

Franklin

LifeSmart™

2050

Retirement

Target

Fund

and

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

statements

of

investments,

of

Franklin

LifeSmart™

Retirement

Income

Fund,

Franklin

LifeSmart™

2020

Retirement

Target

Fund,

Franklin

LifeSmart™

2025

Retirement

Target

Fund,

Franklin

LifeSmart™

2030

Retirement

Target

Fund,

Franklin

LifeSmart™

2035

Retirement

Target

Fund,

Franklin

LifeSmart™

2040

Retirement

Target

Fund,

Franklin

LifeSmart™

2045

Retirement

Target

Fund,

Franklin

LifeSmart™

2050

Retirement

Target

Fund

and

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(nine

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2020,

the

related

statements

of

operations

for

the

year

ended

December

31,

2020,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2020,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2020

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2020,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2020

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2020

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2020

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

19,

2021

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

166

franklintempleton.com

Annual

Report

Under

Section

852(b)(3)(C)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

long

term

capital

gain

dividends

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

871(k)(2)(C)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

short

term

capital

gain

dividends

for

purposes

of

the

tax

imposed

under

Section

871(a)(1)

(A)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

854(b)(1)(A)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

following

percentage

amounts

of

the

ordinary

income

dividends

as

income

qualifying

for

the

dividends

received

deduction

for

the

fiscal

year

ended

December

31,

2020:

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

$102,668

$2,747,207

$814,247

$3,601,231

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

$888,044

$2,773,019

$743,630

$253,059

Franklin

LifeSmart

TM

2035

Retirement

Income

Fund

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

$34,594

$100,137

$224,611

$82,272

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

$2,184

Franklin

LifeSmart

TM

Retirement

Income

Fund

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

9.15%

21.70%

33.10%

37.29%

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

47.22%

41.28%

53.42%

46.77%

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

52.47%

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

167

franklintempleton.com

Annual

Report

Under

Section

854(b)(1)(B)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

qualified

dividends

for

purposes

of

the

maximum

rate

under

Section

1(h)(11)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

December

31,

2020:

Distributions,

including

qualified

dividend

income,

paid

during

calendar

year

2020

will

be

reported

to

shareholders

on

Form

1099-DIV

by

mid-February

2021.

Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

individual

income

tax

returns.

During

the

fiscal

year

ended

December

31,

2020,

the

Funds,

qualified

fund

of

funds

under

Section

852(g)(2)

of

Internal

Revenue

Code,

received

an

allocation

of

foreign

taxes

paid

from

one

or

more

of

their

underlying

funds.

As

shown

in

the

table

below,

the

Funds

hereby

report

to

shareholders

the

foreign

source

income

and

foreign

taxes

paid

by

underlying

funds,

pursuant

to

Section

853

of

the

Internal

Revenue

Code.

This

written

statement

will

allow

shareholders

of

record

on

December

28,

2020

for

Franklin

LifeSmart™

Retirement

Income

Fund

and

December

29,

2020

for

the

remaining

funds,

to

treat

their

proportionate

share

of

foreign

taxes

paid

by

the

underlying

funds

as

having

been

paid

directly

by

them.

The

shareholder

shall

consider

these

amounts

as

foreign

taxes

paid

in

the

tax

year

in

which

they

receive

the

Fund

distribution.

The

following

table

provides

a

detailed

analysis

of

foreign

tax

paid,

foreign

source

income,

and

foreign

source

qualified

dividends

as

reported

by

the

Funds,

to

shareholders

of

record.

Franklin

LifeSmart

TM

Retirement

Income

Fund

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

$320,894

$281,529

$1,073,325

$627,140

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

$1,456,385

$647,921

$1,211,669

$634,214

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

$340,977

Class

Foreign

Tax

Paid

Per

Share

Foreign

Source

Income

Per

Share

Foreign

Source

Qualified

Dividends

Per

Share

Franklin

LifeSmart

Retirement

Income

Fund

Class

A

...........................................

$0.0019

$0.0269

$0.0063

Class

C

...........................................

$0.0019

$0.0215

$0.0051

Class

R

...........................................

$0.0019

$0.0251

$0.0059

Class

R6

..........................................

$0.0019

$0.0291

$0.0069

Advisor

Class

......................................

$0.0019

$0.0287

$0.0068

Franklin

LifeSmart

2020

Retirement

Target

Fund

Class

A

..........................................

$0.0046

$0.0711

$0.0275

Class

C

..........................................

$0.0046

$0.0464

$0.0179

Class

R

..........................................

$0.0046

$0.0627

$0.0242

Class

R6

.........................................

$0.0046

$0.0809

$0.0313

Advisor

Class

......................................

$0.0046

$0.0792

$0.0306

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

168

franklintempleton.com

Annual

Report

Foreign

Tax

Paid

Per

Share

is

the

amount

per

share

available

to

you,

as

a

tax

credit

(assuming

you

held

your

shares

in

the

Fund

for

a

minimum

of

16

days

during

the

31-day

period

beginning

15

days

before

the

ex-dividend

date

of

the

Fund’s

distribution

to

which

the

foreign

taxes

relate),

or,

as

a

tax

deduction.

Class

Foreign

Tax

Paid

Per

Share

Foreign

Source

Income

Per

Share

Foreign

Source

Qualified

Dividends

Per

Share

Franklin

LifeSmart

2025

Retirement

Target

Fund

Class

A

..........................................

$0.0055

$0.0764

$0.0355

Class

C

..........................................

$0.0055

$0.0433

$0.0201

Class

R

..........................................

$0.0055

$0.0643

$0.0299

Class

R6

.........................................

$0.0055

$0.0897

$0.0417

Advisor

Class

......................................

$0.0055

$0.0875

$0.0407

Franklin

LifeSmart

2030

Retirement

Target

Fund

Class

A

..........................................

$0.0065

$0.0767

$0.0420

Class

C

..........................................

$0.0065

$0.0447

$0.0244

Class

R

..........................................

$0.0065

$0.0655

$0.0359

Class

R6

$0.0065

$0.0898

$0.0491

Advisor

Class

......................................

$0.0065

$0.0877

$0.0480

Franklin

LifeSmart

2035

Retirement

Target

Fund

Class

A

..........................................

$0.0080

$0.0887

$0.0530

Class

C

..........................................

$0.0080

$0.0505

$0.0302

Class

R

..........................................

$0.0080

$0.0738

$0.0442

Class

R6

.........................................

$0.0080

$0.1052

$0.0629

Advisor

Class

......................................

$0.0080

$0.1026

$0.0613

Franklin

LifeSmart

2040

Retirement

Target

Fund

Class

A

..........................................

$0.0083

$0.0799

$0.0569

Class

C

..........................................

$0.0083

$0.0501

$0.0357

Class

R

..........................................

$0.0083

$0.0684

$0.0487

Class

R6

.........................................

$0.0083

$0.0921

$0.0655

Advisor

Class

......................................

$0.0083

$0.0901

$0.0641

Franklin

LifeSmart

2045

Retirement

Target

Fund

Class

A

..........................................

$0.0092

$0.0894

$0.0634

Class

C

..........................................

$0.0092

$0.0600

$0.0425

Class

R

..........................................

$0.0092

$0.0725

$0.0514

Class

R6

.........................................

$0.0092

$0.1053

$0.0747

Advisor

Class

......................................

$0.0092

$0.1027

$0.0728

Franklin

LifeSmart

2050

Retirement

Target

Fund

Class

A

..........................................

$0.0093

$0.0889

$0.0633

Class

C

..........................................

$0.0093

$0.0620

$0.0441

Class

R

..........................................

$0.0093

$0.0761

$0.0542

Class

R6

.........................................

$0.0093

$0.1030

$0.0733

Advisor

Class

......................................

$0.0093

$0.1006

$0.0716

Franklin

LifeSmart

2055

Retirement

Target

Fund

Class

A

..........................................

$0.0076

$0.0765

$0.0543

Class

C

..........................................

$0.0076

$0.0519

$0.0369

Class

R

..........................................

$0.0076

$0.0639

$0.0453

Class

R6

.........................................

$0.0076

$0.0895

$0.0635

Advisor

Class

......................................

$0.0076

$0.0867

$0.0615

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

169

franklintempleton.com

Annual

Report

1.

Qualified

dividends

are

taxed

at

reduced

long

term

capital

gains

tax

rates.

In

determining

the

amount

of

foreign

tax

credit

that

may

be

applied

against

the

U.S.

tax

liability

of

individuals

receiving

foreign

source

qualified

dividends,

adjustments

may

be

required

to

the

foreign

tax

credit

limitation

calculation

to

reflect

the

rate

differential

applicable

to

such

dividend

income.

The

rules

however

permit

certain

individuals

to

elect

not

to

apply

the

rate

differential

adjustments

for

capital

gains

and/or

dividends

for

any

taxable

year.

Please

consult

your

tax

advisor

and

the

instructions

to

Form

1116

for

more

information.

Foreign

Source

Income

Per

Share

is

the

amount

per

share

of

income

dividends

attributable

to

foreign

securities

held

by

the

Fund,

plus

any

foreign

taxes

withheld

on

these

dividends.

The

amounts

reported

include

foreign

source

qualified

dividends

that

have

not

been

adjusted

for

the

rate

differential

applicable

to

such

dividend

income.

1

Foreign

Source

Qualified

Dividends

Per

Share

is

the

amount

per

share

of

foreign

source

qualified

dividends

plus

any

foreign

taxes

withheld

on

these

dividends.

These

amounts

represent

the

portion

of

the

Foreign

Source

Income

Per

Share

that

were

derived

from

qualified

foreign

securities

held

by

the

Fund.

1

At

the

beginning

of

each

calendar

year,

shareholders

will

receive

Form

1099-DIV

which

will

include

their

share

of

taxes

paid

during

the

prior

calendar

year. Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

income

tax

returns.

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

170

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

125

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

106

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

125

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-May

2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

171

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

125

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Canadian

National

Railway

(railroad)

(2001-present),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

125

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Private

investor;

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(May

2019-January

1,

2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

125

Graham

Holdings

Company

(education

and

media

organization)

(2011-present);

and

formerly

,

The

Southern

Company

(energy

company)

(2014-May

2020;

previously

2010-2012),

Cbeyond,

Inc.

(business

communications

provider)

(2010-2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-September

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Franklin

Fund

Allocator

Series

172

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

136

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

39

of

the

investment

companies

in

Franklin

Templeton;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015),

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

125

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

37

of

the

investment

companies

in

Franklin

Templeton.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

October

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Advisory

Services,

LLC,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Vice

President,

Franklin

Templeton

Distributors,

Inc.

and

FASA,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

41

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Franklin

Fund

Allocator

Series

173

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Robert

G.

Kubilis

(1973)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

December

2020

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting

and

officer

of

39

of

the

investment

companies

in

Franklin

Templeton.

Robert

Lim

(1948)

Vice

President

–

AML

Compliance

Since

2016

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Franklin

Templeton

Companies,

LLC;

Chief

Compliance

Officer,

Franklin

Templeton

Distributors,

Inc.

and

Franklin

Templeton

Investor

Services,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

eight

of

the

investment

companies

in

Franklin

Templeton

(since

December

2018).

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Associate

General

Counsel

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

Inc.;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Franklin

Fund

Allocator

Series

174

franklintempleton.com

Annual

Report

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007-May

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

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of

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Franklin

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December

31,

2020

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1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2020,

reported

first-

and

second-quarter

2020

data

indicated

the

U.S.

economy

contracted

in

response

to

the

novel

coronavirus

(COVID-19)

pandemic.

In

2020’s

third

quarter,

the

economy

recovered

substantially

based

on

increased

business

and

residential

investment

and

consumer

spending,

although

growth

slowed

in

the

fourth

quarter.

The

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

for

a

total

of

1.50%,

decreasing

the

rate

from

1.75%

to

0.25%.

The

Federal

Reserve

also

announced

broad

quantitative

easing

measures

to

aid

credit

markets

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

Global

stocks

sold

off

in

early

2020

amid

the

worldwide

economic

slowdown.

Equities

began

recovering

in

late

March

given

optimism

about

easing

lockdowns,

vaccines,

and

economic

stimulus,

and

continued

to

rebound

by

period-end

amid

successful

vaccine

trials

and

reduced

political

uncertainty.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+16.26%

(the

index

increasing

from

3,230.78

to

3,756.07).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+14.06%

(the

index

increasing

from

2,358.468

to

2,690.044).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

+7.51%

total

return

(an

index

increase

from

2,225.00

to

2,392.02),

which

includes

reinvestment

of

income

and

distributions.

4

We

recognize

the

important

role

of

financial

advisors

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

As

you

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2020

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

+18.40%

(index

total

return

resulting

in

an

increase

from

6,553.57

to

7,759.35)

and

MSCI

World

Index

+16.50%

(index

total

return

resulting

in

an

increase

from

9,979.034

to

11,625.199).

4.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

Conservative

Allocation

Fund

4

Franklin

Moderate

Allocation

Fund

10

Franklin

Growth

Allocation

Fund

16

Financial

Highlights

and

Statements

of

Investments

22

Financial

Statements

43

Notes

to

Financial

Statements

48

Report

of

Independent

Registered

Public

Accounting

Firm

63

Tax

Information

64

Board

Members

and

Officers

66

Shareholder

Information

71

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index

(USD),

posted

a

+16.82%

total

return

for

the

12

months

ended

December

31,

2020.

1

Stocks

fell

sharply

in

early

2020

as

many

investors

sold

equities

amid

fears

of

a

global

economic

slowdown

due

to

the

novel

coronavirus

(COVID-19)

pandemic.

Global

equities

began

to

rebound

in

late

March

2020

amid

optimism

about

easing

lockdown

restrictions,

vaccine

and

treatment

development

and

economic

stimulus

measures.

Despite

declines

in

September

and

October

due

to

geopolitical

tensions

and

rising

infection

rates,

markets

rebounded

in

November

and

December,

as

positive

sentiment

about

successful

trials

of

COVID-19

vaccines,

the

beginning

of

vaccination

programs

in

some

countries

and

apparent

resolution

of

political

uncertainty

supported

markets.

In

the

U.S.,

pandemic-related

restrictions

caused

stiff

economic

headwinds,

including

mass

layoffs

that

drove

the

unemployment

rate

to

14.8%

in

April

2020.

2

According

to

the

National

Bureau

of

Economic

Research,

the

longest

U.S.

economic

expansion

in

history

ended

in

February,

and

the

country

slipped

into

a

deep

recession.

Equities

began

to

rebound

in

the

spring

amid

the

government’s

fiscal

and

monetary

stimulus,

declining

jobless

claims,

rising

retail

sales

and

optimism

about

treatments

and

potential

vaccines

for

COVID-19.

Following

a

record

annualized

decline

in

second-quarter

gross

domestic

product

(GDP),

resilient

consumer

spending

helped

drive

third-quarter

GDP

to

expand

at

a

record

annualized

rate,

although

growth

slowed

in

the

fourth

quarter.

Equities

continued

to

rise

during

the

summer

but

declined

in

the

fall

due

to

concerns

about

possible

new

restrictions

amid

rising

COVID-19

infection

rates

and

uncertainties

about

additional

fiscal

stimulus

and

the

U.S.

presidential

election.

Despite

signs

that

the

economic

recovery

was

stalling

as

the

unemployment

rate

remained

relatively

high

(6.7%

at

period-end)

and

consumer

spending

declined,

stocks

rallied

in

November

and

December,

buoyed

by

the

outcome

of

the

U.S.

presidential

election,

the

start

of

COVID-19

vaccination

programs

and

the

passage

of

a

new

U.S.

stimulus

bill.

2

In

an

effort

to

support

the

economy,

the

U.S.

Federal

Reserve

(Fed)

lowered

the

federal

funds

target

rate

to

a

range

of

0.00%–0.25%

in

March

2020.

The

Fed

also

enacted

quantitative

easing

measures

aimed

at

ensuring

credit

flows

to

borrowers

and

supporting

credit

markets

with

open-

ended

bond

purchasing.

Furthermore,

the

Fed

signaled

that

interest

rates

would

potentially

remain

low,

even

if

inflation

moderately

exceeded

its

2%

target.

In

the

eurozone,

the

economy

contracted

again

in

the

fourth

quarter

of

2020,

following

quarter-on-quarter

expansion

in

the

third

quarter

and

contractions

in

the

first

and

second

quarters.

After

several

months

of

gains

due

to

easing

restrictions

and

robust

stimulus

measures,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index

(USD),

declined

in

September

and

October

as

rising

infection

rates

heightened

investor

concerns

that

the

nascent

economic

revival

could

stall.

Nevertheless,

successful

vaccine

development

and

a

Brexit

resolution

supported

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index

(USD),

to

post

a

+5.93%

total

return

for

the

period.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index

(USD),

posted

a

+21.30%

total

return

for

the

12

months

under

review.

1

Although

pandemic-related

lockdowns

derailed

economic

growth

in

early

2020,

sharp

market

declines

were

followed

by

rebounds

as

China’s

economy,

a

key

driver

of

the

region’s

economic

activity,

recovered

from

the

contraction

in

the

first

quarter

and

expanded

during

the

rest

of

2020.

Asian

stocks

rose

as

the

region’s

economies

reopened,

aided

by

robust

stimulus

measures

and

optimism

that

economic

revitalization

would

be

further

spurred

by

COVID-19

vaccines.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index

(USD),

posted

a

+18.69%

total

return

for

the

period,

despite

steep

pandemic-related

declines

in

early

2020,

benefiting

from

improving

economic

activity,

stabilizing

oil

prices

and

U.S.

dollar

weakness.

1

In

spite

of

higher

COVID-19

cases

in

some

countries,

emerging

market

stocks

rallied

near

the

end

of

2020,

bolstered

by

easing

political

uncertainty,

commencement

of

COVID-19

vaccinations

and

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2020

.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

2.

Source:

U.S.

Bureau

of

Labor

Statistics.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

Conservative

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Fund

This

annual

report

for

Franklin

Conservative

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

lower

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+9.30%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Conservative

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+12.48%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.25%

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

We

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed-

income

investments

by

investing

primarily

in

a

distinctly-

weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

fixed

income

funds

and

40%

equity

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

primarily

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

to

its

allocation

among

equity

and

fixed

income

securities

and

to

the

actual

performance

of

the

fund

investments.

At

period-end,

Franklin

Conservative

Allocation

Fund

allocated

53.8%

of

total

net

assets

to

fixed

income,

44.8%

to

equity

and

0.4%

to

alternative

strategies.

Domestic

fixed

income

exposure

was

89.2%

of

the

total

fixed

income

weighting,

with

the

balance

represented

by

foreign

fixed

income.

Franklin

Liberty

U.S.

Core

Bond

ETF

was

our

largest

fixed

income

fund

weighting

at

23.8%

of

the

Fund’s

total

net

assets.

On

the

equity

side,

domestic

exposure

was

78.3%

of

the

Fund’s

total

equity

weighting,

with

the

balance

represented

by

foreign

equity.

The

Portfolio

was

diversified

across

capitalization

sizes

and

investment

styles,

and

on

December

31,

2020,

we

held

shares

in

equity

funds

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Fixed

Income

48.0%

Domestic

Equity

35.1%

Foreign

Equity

9.7%

Foreign

Fixed

Income

5.8%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

1.0%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continuous

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

27

.

Franklin

Conservative

Allocation

Fund

5

franklintempleton.com

Annual

Report

that

invest

in

large-,

mid-

and

small-capitalization

equity

securities

and

represent

both

growth

and

value

styles.

Franklin

Growth

Fund

–

Class

R6

was

our

largest

equity

fund

weighting

at

10.0%

of

total

net

assets.

During

the

12-month

reporting

period,

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI-NR,

while

our

largest

domestic

value

fund

holding,

Franklin

LibertyQ

U.S.

Equity

ETF,

and

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

Conservative

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

23.8%

Franklin

Growth

Fund

–

Class

R6

10.0%

Franklin

U.S.

Core

Equity

(IU)

Fund

9.0%

Franklin

LibertyQ

U.S.

Equity

ETF

7.3%

Franklin

Rising

Dividends

Fund

–

Class

R6

5.3%

Franklin

Liberty

International

Aggregate

Bond

ETF

4.8%

Franklin

Liberty

US

Treasury

Bond

ETF

4.8%

Franklin

Low

Duration

Total

Return

Fund

–

Class

R6

4.4%

Franklin

Liberty

Investment

Grade

Corporate

ETF

3.9%

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

3.8%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2020

Franklin

Conservative

Allocation

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+9.30%

+3.29%

5-Year

+37.98%

+5.45%

10-Year

+64.98%

+4.54%

Advisor

1-Year

+9.58%

+9.58%

5-Year

+39.80%

+6.93%

10-Year

+69.26%

+5.40%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Conservative

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1

/11–

12/31/20

)

Advisor

Class

(1/1/11

–

12/31/20

)

Franklin

Conservative

Allocation

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

se-

lecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

6.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high-

yield

securities

in

all

eligible

currencies.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.2371

$0.1676

$0.4047

C

$0.1296

$0.1676

$0.2972

R

$0.2002

$0.1676

$0.3678

R6

$0.2832

$0.1676

$0.4508

Advisor

$0.2721

$0.1676

$0.4397

Total

Annual

Operating

Expenses

7

Share

Class

A

0.88%

Advisor

0.63%

Your

Fund’s

Expenses

Franklin

Conservative

Allocation

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,096.20

$3.29

$1,022.00

$3.17

0.63

%

C

$1,000

$1,091.60

$7.21

$1,018.25

$6.95

1.37%

R

$1,000

$1,093.60

$4.60

$1,020.75

$4.44

0.87%

R6

$1,000

$1,096.70

$1.60

$1,023.61

$1.54

0.30%

Advisor

$1,000

$1,097.70

$1.97

$1,023.26

$1.90

0.37%

10

franklintempleton.com

Annual

Report

Franklin

Moderate

Allocation

Fund

This

annual

report

for

Franklin

Moderate

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

moderate

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+12.37%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Moderate

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+13.94%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.25%

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

We

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed-

income

investments

by

investing

primarily

in

a

distinctly-

weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

equity

funds

and

40%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

primarily

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

to

its

allocation

among

equity

and

fixed

income

securities

and

to

the

actual

performance

of

the

fund

investments.

At

period-end,

Franklin

Moderate

Allocation

Fund

allocated

64.8%

of

total

net

assets

to

equity,

33.9%

to

fixed

income

and

0.4%

to

alternative

strategies.

Domestic

equity

exposure

was

76.4%

of

the

Fund’s

total

equity

weighting,

with

the

balance

represented

by

foreign

equity.

The

Portfolio

was

diversified

across

capitalization

sizes

and

investment

styles,

and

on

December

31,

2020,

we

held

shares

in

equity

funds

that

invest

in

large-,

mid-

and

small-capitalization

equity

securities

and

represent

both

growth

and

value

styles.

Franklin

Growth

Fund

–

Class

R6

was

our

largest

equity

fund

weighting

at

14.2%

of

total

net

assets.

On

the

fixed

income

side,

domestic

exposure

was

88.2%

of

the

Fund’s

total

fixed

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

49.5%

Domestic

Fixed

Income

29.9%

Foreign

Equity

15.3%

Foreign

Fixed

Income

4.0%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

0.9%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continuous

basis.

2.

Source:

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

34

.

Franklin

Moderate

Allocation

Fund

11

franklintempleton.com

Annual

Report

income

weighting,

with

the

balance

represented

by

foreign

fixed

income.

Franklin

Liberty

U.S.

Core

Bond

ETF

was

our

largest

fixed

income

fund

weighting

at

14.8%

of

the

Fund’s

total

net

assets.

During

the

12-month

reporting

period,

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI-NR,

while

our

largest

domestic

value

fund

holding,

Franklin

LibertyQ

U.S.

Equity

ETF,

and

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

Moderate

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

14.8%

Franklin

Growth

Fund

–

Class

R6

14.2%

Franklin

U.S.

Core

Equity

(IU)

Fund

12.9%

Franklin

LibertyQ

U.S.

Equity

ETF

10.2%

Franklin

Rising

Dividends

Fund

–

Class

R6

7.3%

Franklin

International

Core

Equity

(IU)

Fund

5.1%

Franklin

Liberty

International

Aggregate

Bond

ETF

3.0%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

3.0%

Franklin

Low

Duration

Total

Return

Fund

–

Class

R6

2.7%

Franklin

Liberty

Investment

Grade

Corporate

ETF

2.5%

Performance

Summary

as

of

December

31,

2020

Franklin

Moderate

Allocation

Fund

12

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+12.37%

+6.18%

5-Year

+51.51%

+7.45%

10-Year

+90.56%

+6.06%

Advisor

1-Year

+12.72%

+12.72%

5-Year

+53.50%

+8.95%

10-Year

+95.42%

+6.93%

See

page

14

for

Performance

Summary

footnotes.

Franklin

Moderate

Allocation

Fund

Performance

Summary

13

franklintempleton.com

Annual

Report

See

page

14

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/11–

12/31/20

)

Advisor

Class

(1/1/11–

12/31/20

)

Franklin

Moderate

Allocation

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Smaller

or

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Bond

prices

gen-

erally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

6.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high-

yield

securities

in

all

eligible

currencies.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2199

$0.0562

$0.4267

$0.7028

C

$0.1076

$0.0562

$0.4267

$0.5905

R

$0.1801

$0.0562

$0.4267

$0.6630

R6

$0.2709

$0.0562

$0.4267

$0.7538

Advisor

$0.2579

$0.0562

$0.4267

$0.7408

Total

Annual

Operating

Expenses

7

Share

Class

A

0.88%

Advisor

0.63%

Your

Fund’s

Expenses

Franklin

Moderate

Allocation

Fund

15

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,135.20

$3.41

$1,021.94

$3.23

0.64%

C

$1,000

$1,131.70

$7.40

$1,018.20

$7.00

1.38%

R

$1,000

$1,136.10

$4.74

$1,020.70

$4.49

0.88%

R6

$1,000

$1,138.10

$1.62

$1,023.63

$1.53

0.30%

Advisor

$1,000

$1,137.40

$2.07

$1,023.20

$1.96

0.39%

16

franklintempleton.com

Annual

Report

Franklin

Growth

Allocation

Fund

This

annual

report

for

Franklin

Growth

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

higher

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+14.58%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Growth

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+15.20%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+16.25%

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+9.02%

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

18

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

We

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed-

income

investments

by

investing

primarily

in

a

distinctly-

weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

80%

equity

funds

and

20%

fixed

income

funds

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

primarily

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

to

its

allocation

among

equity

and

fixed

income

securities

and

to

the

actual

performance

of

the

fund

investments.

At

period-end,

Franklin

Growth

Allocation

Fund

allocated

84.5%

of

total

net

assets

to

equity,

14.4%

to

fixed

income

and

0.4%

to

alternative

strategies.

Domestic

equity

exposure

was

74.2%

of

the

Fund’s

total

equity

weighting,

with

the

balance

represented

by

foreign

equity.

The

Portfolio

was

diversified

across

capitalization

sizes

and

investment

styles,

and

on

December

31,

2020,

we

held

shares

in

equity

funds

that

invest

in

large-,

mid-

and

small-capitalization

equity

securities

and

represent

both

growth

and

value

styles.

Franklin

Growth

Fund

–

Class

R6

was

our

largest

equity

fund

weighting

at

18.1%

of

total

net

assets.

On

the

fixed

income

side,

domestic

exposure

was

83.3%

of

the

Fund’s

total

fixed

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

62.7%

Foreign

Equity

21.8%

Domestic

Fixed

Income

12.0%

Foreign

Fixed

Income

2.4%

Alternative

Strategies

0.4%

Short-Term

Investments

&

Other

Net

Assets

0.7%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continuous

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

27

.

Franklin

Growth

Allocation

Fund

17

franklintempleton.com

Annual

Report

income

weighting,

with

the

balance

represented

by

foreign

fixed

income.

Franklin

Liberty

U.S.

Core

Bond

ETF

was

our

largest

fixed

income

fund

weighting

at

5.8%

of

the

Fund’s

total

net

assets.

During

the

12-month

reporting

period,

our

largest

domestic

growth

fund

holding,

Franklin

Growth

Fund

–

Class

R6,

outperformed

the

MSCI

ACWI-NR,

while

our

largest

domestic

value

fund

holding,

Franklin

LibertyQ

U.S.

Equity

ETF,

and

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

underperformed

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/20

%

of

Total

Net

Assets

a

a

Franklin

Growth

Fund

–

Class

R6

18.1%

Franklin

U.S.

Core

Equity

(IU)

Fund

16.4%

Franklin

LibertyQ

U.S.

Equity

ETF

13.1%

Franklin

Rising

Dividends

Fund

–

Class

R6

9.0%

Franklin

International

Core

Equity

(IU)

Fund

7.1%

Franklin

Liberty

U.S.

Core

Bond

ETF

5.8%

Vanguard

S&P

500

ETF

3.1%

SPDR

Portfolio

S&P

500

Value

ETF

3.1%

Templeton

Foreign

Fund

–

Class

R6

3.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.1%

Performance

Summary

as

of

December

31,

2020

Franklin

Growth

Allocation

Fund

18

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

14.58%

8.25%

5-Year

64.44%

9.22%

10-Year

119.79%

7.58%

Advisor

1-Year

14.90%

14.90%

5-Year

66.54%

10.74%

10-Year

125.48%

8.47%

See

page

20

for

Performance

Summary

footnotes.

Franklin

Growth

Allocation

Fund

Performance

Summary

19

franklintempleton.com

Annual

Report

See

page

20

for

Performance

Summary

footnotes

.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/11–

12/31/20

)

Advisor

Class

(1/1/11

–

12/31/20

)

Franklin

Growth

Allocation

Fund

Performance

Summary

20

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-

made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

6.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Barclays

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high-

yield

securities

in

all

eligible

currencies.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2183

$0.0771

$0.7078

$1.0032

C

$0.1097

$0.0771

$0.7078

$0.8946

R

$0.1706

$0.0771

$0.7078

$0.9555

R6

$0.2859

$0.0771

$0.7078

$1.0708

Advisor

$0.2631

$0.0771

$0.7078

$1.0480

Total

Annual

Operating

Expenses

7

Share

Class

A

0.94%

Advisor

0.69%

Your

Fund’s

Expenses

Franklin

Growth

Allocation

Fund

21

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,176.40

$3.74

$1,021.70

$3.48

0.68%

C

$1,000

$1,171.80

$7.81

$1,017.94

$7.26

1.43%

R

$1,000

$1,174.80

$5.09

$1,020.46

$4.73

0.93%

R6

$1,000

$1,178.50

$1.75

$1,023.53

$1.63

0.32%

Advisor

$1,000

$1,178.20

$2.38

$1,022.95

$2.21

0.44%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.08

$13.33

$14.86

$13.74

$13.40

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.22

0.32

0.39

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.05

1.43

(0.90)

1.25

0.45

Total

from

investment

operations

....................

1.27

1.75

(0.51)

1.45

0.59

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.23)

(0.33)

(0.38)

(0.24)

(0.15)

Net

realized

gains

.............................

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...............................

(0.40)

(1.00)

(1.02)

(0.33)

(0.25)

Net

asset

value,

end

of

year

.......................

$14.95

$14.08

$13.33

$14.86

$13.74

Total

return

d

...................................

9.30%

13.25%

(3.44)%

10.58%

4.39%

Ratios

to

average

net

assets

Expenses

e,f

....................................

0.63%

0.63%

g

0.63%

g

0.63%

0.63%

Net

investment

income

c

...........................

1.54%

2.25%

2.57%

1.37%

1.01%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$941,777

$839,134

$778,221

$800,141

$809,039

Portfolio

turnover

rate

............................

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.77

$13.06

$14.57

$13.47

$13.15

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.10

0.20

0.24

0.09

0.04

Net

realized

and

unrealized

gains

(losses)

...........

1.05

1.40

(0.84)

1.23

0.43

Total

from

investment

operations

....................

1.15

1.60

(0.60)

1.32

0.47

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.13)

(0.22)

(0.27)

(0.13)

(0.05)

Net

realized

gains

.............................

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...............................

(0.30)

(0.89)

(0.91)

(0.22)

(0.15)

Net

asset

value,

end

of

year

.......................

$14.62

$13.77

$13.06

$14.57

$13.47

Total

return

d

...................................

8.51%

12.35%

(4.14)%

9.80%

3.55%

Ratios

to

average

net

assets

Expenses

e,f

....................................

1.38%

1.38%

g

1.38%

g

1.38%

1.37%

Net

investment

income

c

...........................

0.76%

1.50%

1.82%

0.62%

0.27%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$212,656

$252,407

$285,547

$423,890

$470,582

Portfolio

turnover

rate

............................

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.02

$13.28

$14.80

$13.69

$13.35

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.18

0.28

0.33

0.16

0.10

Net

realized

and

unrealized

gains

(losses)

...........

1.05

1.42

(0.87)

1.24

0.45

Total

from

investment

operations

....................

1.23

1.70

(0.54)

1.40

0.55

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.20)

(0.29)

(0.34)

(0.20)

(0.11)

Net

realized

gains

.............................

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...............................

(0.37)

(0.96)

(0.98)

(0.29)

(0.21)

Net

asset

value,

end

of

year

.......................

$14.88

$14.02

$13.28

$14.80

$13.69

Total

return

....................................

8.98%

12.93%

(3.64)%

10.25%

4.15%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.88%

0.88%

f

0.88%

f

0.88%

0.88%

Net

investment

income

c

...........................

1.28%

2.00%

2.32%

1.12%

0.76%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$66,208

$71,153

$80,338

$103,629

$124,018

Portfolio

turnover

rate

............................

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.06

$13.31

$14.84

$13.72

$13.39

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.26

0.36

0.44

0.25

0.18

Net

realized

and

unrealized

gains

(losses)

...........

1.05

1.44

(0.90)

1.25

0.44

Total

from

investment

operations

....................

1.31

1.80

(0.46)

1.50

0.62

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.28)

(0.38)

(0.43)

(0.29)

(0.19)

Net

realized

gains

.............................

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...............................

(0.45)

(1.05)

(1.07)

(0.38)

(0.29)

Net

asset

value,

end

of

year

.......................

$14.92

$14.06

$13.31

$14.84

$13.72

Total

return

....................................

9.61%

13.64%

(3.11)%

10.99%

4.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.40%

0.42%

0.40%

0.32%

0.30%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.30%

0.31%

e

0.29%

e

0.28%

0.28%

Net

investment

income

c

...........................

1.86%

2.57%

2.91%

1.72%

1.36%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,537

$2,364

$2,253

$2,149

$2,197

Portfolio

turnover

rate

............................

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.08

$13.33

$14.86

$13.74

$13.39

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.25

0.36

0.43

0.25

0.17

Net

realized

and

unrealized

gains

(losses)

...........

1.06

1.43

(0.90)

1.24

0.45

Total

from

investment

operations

....................

1.31

1.79

(0.47)

1.49

0.62

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.27)

(0.37)

(0.42)

(0.28)

(0.17)

Net

realized

gains

.............................

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...............................

(0.44)

(1.04)

(1.06)

(0.37)

(0.27)

Net

asset

value,

end

of

year

.......................

$14.95

$14.08

$13.33

$14.86

$13.74

Total

return

....................................

9.58%

13.53%

(3.19)%

10.88%

4.69%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.38%

0.38%

f

0.38%

f

0.38%

0.38%

Net

investment

income

c

...........................

1.79%

2.50%

2.82%

1.62%

1.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$48,041

$44,022

$38,031

$38,934

$27,578

Portfolio

turnover

rate

............................

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

Conservative

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.0%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

268,450

$

5,277,512

Domestic

Equity

35.1%

a

Franklin

Growth

Fund,

Class

R6

........................................

934,014

126,745,749

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

2,462,245

93,294,463

a

Franklin

Rising

Dividends

Fund,

Class

R6

.................................

835,080

66,873,189

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

9,095,996

114,063,795

SPDR

Portfolio

S&P

500

Value

ETF

.....................................

642,750

22,104,173

Vanguard

S&P

500

ETF

..............................................

64,975

22,331,258

445,412,627

Domestic

Fixed

Income

48.0%

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

717,239

19,092,902

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,842,100

49,886,647

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

........................

509,075

48,743,931

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

11,557,950

302,240,393

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,432,550

60,704,285

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

..........................

5,760,310

55,875,006

iShares

Core

U.S.

Aggregate

Bond

ETF

..................................

360,917

42,656,780

Schwab

U.S.

TIPS

ETF

...............................................

496,350

30,813,408

610,013,352

Foreign

Equity

9.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

1,386,396

16,123,784

a

Franklin

FTSE

China

ETF

.............................................

97,925

3,114,896

a

Franklin

FTSE

Europe

ETF

............................................

491,693

12,816,076

a

Franklin

FTSE

Japan

ETF

.............................................

233,583

6,956,102

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

3,449,662

40,844,001

a

Franklin

International

Growth

Fund,

Class

R6

..............................

619,432

13,392,110

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

525,235

13,251,691

a

Templeton

Foreign

Fund,

Class

R6

......................................

2,575,240

18,026,683

124,525,343

Foreign

Fixed

Income

5.8%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

2,389,575

61,041,693

a

Templeton

Global

Total

Return

Fund,

Class

R6

.............................

1,234,980

12,325,096

73,366,789

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,060,531,583)

..............................................................

1,258,595,623

a

a

a

a

Short

Term

Investments

0.8%

a

Money

Market

Funds

0.5%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

......................

5,871,512

5,871,512

Total

Money

Market

Funds

(Cost

$5,871,512)

...................................

5,871,512

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

c

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$3,854,181)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$2,462,205)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$735,378)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$656,598)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$3,931,707)

......................................................

$

3,854,158

$

3,854,158

Total

Repurchase

Agreements

(Cost

$3,854,158)

................................

3,854,158

Total

Short

Term

Investments

(Cost

$9,725,670

)

.................................

9,725,670

a

Total

Investments

(Cost

$1,070,257,253)

99.8%

..................................

$1,268,321,293

Other

Assets,

less

Liabilities

0.2%

.............................................

2,899,250

Net

Assets

100.0%

...........................................................

$1,271,220,543

See

abbreviations

on

page

62

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.08

$14.06

$16.11

$14.86

$14.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.19

0.28

0.34

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.60

2.15

(1.11)

2.01

0.56

Total

from

investment

operations

....................

1.79

2.43

(0.77)

2.21

0.70

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.28)

(0.33)

(0.29)

(0.12)

Net

realized

gains

.............................

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...............................

(0.70)

(1.41)

(1.28)

(0.96)

(0.33)

Net

asset

value,

end

of

year

.......................

$16.17

$15.08

$14.06

$16.11

$14.86

Total

return

d

...................................

12.37%

17.40%

(4.82)%

14.98%

4.94%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.64%

0.63%

0.63%

0.66%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.64%

f,g

0.63%

f,g

0.63%

g

0.65%

0.63%

g

Net

investment

income

c

...........................

1.29%

1.78%

2.02%

1.23%

0.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,573,566

$1,456,531

$1,318,198

$1,407,956

$1,416,532

Portfolio

turnover

rate

............................

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.60

$13.65

$15.66

$14.48

$14.12

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.07

0.15

0.17

0.07

0.03

Net

realized

and

unrealized

gains

(losses)

...........

1.56

2.09

(1.02)

1.94

0.55

Total

from

investment

operations

....................

1.63

2.24

(0.85)

2.01

0.58

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.16)

(0.21)

(0.16)

(0.01)

Net

realized

gains

.............................

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...............................

(0.59)

(1.29)

(1.16)

(0.83)

(0.22)

Net

asset

value,

end

of

year

.......................

$15.64

$14.60

$13.65

$15.66

$14.48

Total

return

d

...................................

11.57%

16.52%

(5.54)%

14.10%

4.25%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.39%

1.38%

1.38%

1.41%

1.37%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.39%

f,g

1.38%

f,g

1.38%

g

1.40%

1.37%

g

Net

investment

income

c

...........................

0.50%

1.03%

1.27%

0.48%

0.19%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$289,283

$339,845

$375,494

$568,280

$595,911

Portfolio

turnover

rate

............................

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.05

$14.04

$16.08

$14.82

$14.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.15

0.23

0.27

0.14

0.10

Net

realized

and

unrealized

gains

(losses)

...........

1.61

2.15

(1.07)

2.02

0.57

Total

from

investment

operations

....................

1.76

2.38

(0.80)

2.16

0.67

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.18)

(0.24)

(0.29)

(0.23)

(0.08)

Net

realized

gains

.............................

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...............................

(0.66)

(1.37)

(1.24)

(0.90)

(0.29)

Net

asset

value,

end

of

year

.......................

$16.15

$15.05

$14.04

$16.08

$14.82

Total

return

....................................

12.17%

17.05%

(5.04)%

14.69%

4.71%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.89%

0.88%

0.88%

0.91%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.89%

e,f

0.88%

e,f

0.88%

f

0.90%

0.88%

f

Net

investment

income

c

...........................

1.01%

1.53%

1.77%

0.98%

0.68%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$68,789

$78,999

$87,277

$119,920

$158,192

Portfolio

turnover

rate

............................

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.08

$14.06

$16.11

$14.86

$14.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.24

0.34

0.41

0.26

0.19

Net

realized

and

unrealized

gains

(losses)

...........

1.60

2.15

(1.12)

2.01

0.57

Total

from

investment

operations

....................

1.84

2.49

(0.71)

2.27

0.76

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.27)

(0.34)

(0.39)

(0.35)

(0.18)

Net

realized

gains

.............................

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...............................

(0.75)

(1.47)

(1.34)

(1.02)

(0.39)

Net

asset

value,

end

of

year

.......................

$16.17

$15.08

$14.06

$16.11

$14.86

Total

return

....................................

12.76%

17.81%

(4.49)%

15.40%

5.34%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.33%

0.34%

0.35%

0.30%

0.28%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.30%

e

0.29%

e

0.29%

0.28%

0.28%

f

Net

investment

income

c

...........................

1.61%

2.12%

2.36%

1.60%

1.28%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$6,767

$6,666

$5,141

$4,492

$5,106

Portfolio

turnover

rate

............................

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.09

$14.07

$16.12

$14.88

$14.50

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.23

0.32

0.39

0.26

0.17

Net

realized

and

unrealized

gains

(losses)

...........

1.61

2.15

(1.11)

1.98

0.58

Total

from

investment

operations

....................

1.84

2.47

(0.72)

2.24

0.75

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.32)

(0.38)

(0.33)

(0.16)

Net

realized

gains

.............................

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...............................

(0.74)

(1.45)

(1.33)

(1.00)

(0.37)

Net

asset

value,

end

of

year

.......................

$16.19

$15.09

$14.07

$16.12

$14.88

Total

return

....................................

12.72%

17.68%

(4.57)%

15.20%

5.26%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.39%

0.38%

0.38%

0.41%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.39%

e,f

0.38%

e,f

0.38%

f

0.40%

0.38%

f

Net

investment

income

c

...........................

1.53%

2.03%

2.27%

1.48%

1.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$66,421

$61,026

$55,052

$52,575

$39,052

Portfolio

turnover

rate

............................

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.1%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

421,300

$

8,282,421

Domestic

Equity

49.5%

a

Franklin

Growth

Fund,

Class

R6

........................................

2,098,388

284,751,290

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

5,385,655

204,062,468

a

Franklin

Rising

Dividends

Fund,

Class

R6

.................................

1,817,735

145,564,206

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

20,624,325

258,629,036

SPDR

Portfolio

S&P

500

Value

ETF

.....................................

1,426,325

49,051,317

Vanguard

S&P

500

ETF

..............................................

144,225

49,568,690

991,627,007

Domestic

Fixed

Income

29.9%

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

711,776

18,947,477

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,876,225

50,810,800

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

........................

503,700

48,229,275

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

11,314,573

295,876,084

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,381,350

59,426,589

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

..........................

5,641,462

54,722,180

iShares

Core

U.S.

Aggregate

Bond

ETF

..................................

352,643

41,678,876

Schwab

U.S.

TIPS

ETF

...............................................

483,300

30,003,264

599,694,545

Foreign

Equity

15.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,523,456

40,977,794

a

Franklin

FTSE

China

ETF

.............................................

245,150

7,797,976

a

Franklin

FTSE

Europe

ETF

............................................

1,186,496

30,926,256

a

Franklin

FTSE

Japan

ETF

.............................................

536,649

15,981,407

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

8,556,301

101,306,605

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,536,752

33,224,578

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,321,561

33,342,978

a

Templeton

Foreign

Fund,

Class

R6

......................................

6,337,344

44,361,410

307,919,004

Foreign

Fixed

Income

4.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

2,367,325

60,473,317

a

Templeton

Global

Total

Return

Fund,

Class

R6

.............................

1,938,163

19,342,865

79,816,182

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,550,363,636)

..............................................................

1,987,339,159

a

a

a

a

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Short

Term

Investments

0.9%

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.9%

b

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$17,191,781)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$10,982,797)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$3,280,192)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$2,982,792)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$17,537,591)

.....................................................

$

17,191,679

$

17,191,679

Total

Repurchase

Agreements

(Cost

$17,191,679)

...............................

17,191,679

Total

Short

Term

Investments

(Cost

$17,191,679

)

................................

17,191,679

a

Total

Investments

(Cost

$1,567,555,315)

100.0%

................................

$2,004,530,838

Other

Assets,

less

Liabilities

0.0%

.............................................

294,401

Net

Assets

100.0%

...........................................................

$2,004,825,239

See

Abbreviations

on

page

62

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.13

$16.54

$19.34

$17.43

$17.01

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.19

0.25

0.30

0.22

0.14

Net

realized

and

unrealized

gains

(losses)

...........

2.32

3.36

(1.54)

3.12

0.75

Total

from

investment

operations

....................

2.51

3.61

(1.24)

3.34

0.89

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.25)

(0.30)

(0.32)

(0.14)

Net

realized

gains

.............................

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...............................

(1.00)

(2.02)

(1.56)

(1.43)

(0.47)

Net

asset

value,

end

of

year

.......................

$19.64

$18.13

$16.54

$19.34

$17.43

Total

return

d

...................................

14.58%

21.90%

(6.45)%

19.45%

5.36%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.68%

0.68%

0.67%

0.70%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.67%

f,g

0.65%

f

0.65%

f

0.65%

f

0.65%

Net

investment

income

c

...........................

1.07%

1.32%

1.48%

1.14%

0.83%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,074,822

$974,391

$837,327

$873,011

$822,833

Portfolio

turnover

rate

............................

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.62

$16.12

$18.81

$16.99

$16.59

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.05

0.10

0.10

0.07

0.02

Net

realized

and

unrealized

gains

(losses)

...........

2.25

3.27

(1.43)

3.04

0.72

Total

from

investment

operations

....................

2.30

3.37

(1.33)

3.11

0.74

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.10)

(0.10)

(0.18)

(0.01)

Net

realized

gains

.............................

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...............................

(0.89)

(1.87)

(1.36)

(1.29)

(0.34)

Net

asset

value,

end

of

year

.......................

$19.03

$17.62

$16.12

$18.81

$16.99

Total

return

d

...................................

13.74%

20.95%

(7.13)%

18.56%

4.59%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.42%

1.43%

1.42%

1.45%

1.43%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.42%

f,g

1.40%

f

1.40%

f

1.40%

f

1.39%

Net

investment

income

c

...........................

0.28%

0.57%

0.73%

0.39%

0.09%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$186,526

$202,689

$206,933

$311,640

$308,736

Portfolio

turnover

rate

............................

39.22%

63.65%

30.79%

16.90

%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.89

$16.34

$19.10

$17.22

$16.80

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.14

0.18

0.22

0.15

0.09

Net

realized

and

unrealized

gains

(losses)

...........

2.30

3.33

(1.49)

3.11

0.75

Total

from

investment

operations

....................

2.44

3.51

(1.27)

3.26

0.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.17)

(0.19)

(0.23)

(0.27)

(0.09)

Net

realized

gains

.............................

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...............................

(0.95)

(1.96)

(1.49)

(1.38)

(0.42)

Net

asset

value,

end

of

year

.......................

$19.38

$17.89

$16.34

$19.10

$17.22

Total

return

....................................

14.30%

21.56%

(6.68)%

19.17%

5.12%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.92%

0.93%

0.92%

0.95%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.92%

e,f

0.90%

e

0.90%

e

0.90%

e

0.90%

Net

investment

income

c

...........................

0.77%

1.07%

1.23%

0.89%

0.58%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$54,297

$62,973

$72,100

$100,258

$112,272

Portfolio

turnover

rate

............................

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.20

$16.60

$19.40

$17.48

$17.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.26

0.32

0.40

0.31

0.22

Net

realized

and

unrealized

gains

(losses)

...........

2.34

3.37

(1.57)

3.12

0.74

Total

from

investment

operations

....................

2.60

3.69

(1.17)

3.43

0.96

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.29)

(0.32)

(0.37)

(0.40)

(0.21)

Net

realized

gains

.............................

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...............................

(1.07)

(2.09)

(1.63)

(1.51)

(0.54)

Net

asset

value,

end

of

year

.......................

$19.73

$18.20

$16.60

$19.40

$17.48

Total

return

....................................

15.06%

22.30%

(6.07)%

19.90%

5.77%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.35%

0.37%

0.36%

0.31%

0.30%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.30%

e

0.27%

e

0.28%

e

0.25%

e

0.26%

Net

investment

income

c

...........................

1.44%

1.70%

1.85%

1.54%

1.22%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$5,592

$4,806

$4,224

$3,364

$2,822

Portfolio

turnover

rate

............................

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.22

$16.61

$19.42

$17.49

$17.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.24

0.30

0.36

0.26

0.18

Net

realized

and

unrealized

gains

(losses)

...........

2.34

3.38

(1.56)

3.15

0.76

Total

from

investment

operations

....................

2.58

3.68

(1.20)

3.41

0.94

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.30)

(0.35)

(0.37)

(0.18)

Net

realized

gains

.............................

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...............................

(1.04)

(2.07)

(1.61)

(1.48)

(0.51)

Net

asset

value,

end

of

year

.......................

$19.76

$18.22

$16.61

$19.42

$17.49

Total

return

....................................

14.90%

22.22%

(6.23)%

19.77%

5.60%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.43%

0.43%

0.42%

0.45%

0.44%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.42%

e,f

0.40%

e

0.40%

e

0.40%

e

0.40%

Net

investment

income

c

...........................

1.32%

1.57%

1.73%

1.39%

1.08%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$51,693

$44,684

$38,685

$38,912

$39,211

Portfolio

turnover

rate

............................

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

year

ended

December

31,

2020.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

Growth

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.3%

Alternative

Strategies

0.4%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

286,300

$

5,628,429

Domestic

Equity

62.7%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,833,928

248,864,005

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

4,729,689

179,207,916

a

Franklin

Rising

Dividends

Fund,

Class

R6

.................................

1,546,323

123,829,549

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

17,936,213

224,920,106

SPDR

Portfolio

S&P

500

Value

ETF

.....................................

1,241,925

42,709,801

Vanguard

S&P

500

ETF

..............................................

125,575

43,158,872

862,690,249

Domestic

Fixed

Income

12.0%

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

204,260

5,437,401

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

491,825

13,319,310

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

........................

140,125

13,416,969

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

3,054,075

79,864,061

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

696,350

17,377,414

a

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

..........................

1,538,967

14,927,981

iShares

Core

U.S.

Aggregate

Bond

ETF

..................................

95,219

11,253,934

Schwab

U.S.

TIPS

ETF

...............................................

130,875

8,124,720

163,721,790

Foreign

Equity

21.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,627,890

42,192,366

a

Franklin

FTSE

China

ETF

.............................................

250,050

7,953,840

a

Franklin

FTSE

Europe

ETF

............................................

1,139,487

29,700,957

a

Franklin

FTSE

Japan

ETF

.............................................

502,932

14,977,315

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

8,175,179

96,794,122

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,441,824

31,172,245

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,335,173

33,686,403

a

Templeton

Foreign

Fund,

Class

R6

......................................

6,086,750

42,607,247

299,084,495

Foreign

Fixed

Income

2.4%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

732,200

18,704,049

a

Templeton

Global

Total

Return

Fund,

Class

R6

.............................

1,317,500

13,148,651

31,852,700

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$991,161,244)

...............................................................

1,362,977,663

a

a

a

a

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Short

Term

Investments

0.8%

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.8%

b

Joint

Repurchase

Agreement,

0.054%,

1/04/21

(Maturity

Value

$11,582,567)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$7,399,407)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$2,209,954)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$1,973,206)

Collateralized

by

U.S.

Government

Agency

Securities,

4.00%

-

5.00%,

2/20/49

-

5/20/49;

and

U.S.

Treasury

Notes,

0.13%

-

2.63%,

1/31/21

-

12/31/25

(valued

at

$11,815,548)

.....................................................

$

11,582,498

$

11,582,498

Total

Repurchase

Agreements

(Cost

$11,582,498)

...............................

11,582,498

Total

Short

Term

Investments

(Cost

$11,582,498

)

................................

11,582,498

a

Total

Investments

(Cost

$1,002,743,742)

100.1%

................................

$1,374,560,161

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(1,630,541)

Net

Assets

100.0%

...........................................................

$1,372,929,620

See

Abbreviations

on

page

62

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$112,474,629

$158,870,847

$98,031,212

Cost

-

Controlled

affiliates

(Note

3f)

..........................

60,627,532

302,988,705

328,351,669

Cost

-

Non-controlled

affiliates

(Note

3f)

......................

893,300,934

1,088,504,084

564,778,363

Cost

-

Unaffiliated

repurchase

agreements

....................

3,854,158

17,191,679

11,582,498

Value

-

Unaffiliated

issuers

................................

$117,905,619

$170,302,147

$105,247,327

Value

-

Controlled

affiliates

(Note

3f)

.........................

61,041,693

360,080,147

393,607,551

Value

-

Non-controlled

affiliates

(Note

3f)

......................

1,085,519,823

1,456,956,865

864,122,785

Value

-

Unaffiliated

repurchase

agreements

....................

3,854,158

17,191,679

11,582,498

Cash

..................................................

245,514

240,339

65,676

Receivables:

Capital

shares

sold

......................................

2,031,351

1,303,614

1,200,693

Dividends

and

interest

...................................

1,041,437

1,099,490

384,929

Other

assets

............................................

2,626,031

2,587,672

695,488

Total

assets

........................................

1,274,265,626

2,009,761,953

1,376,906,947

Liabilities:

Payables:

Investment

securities

purchased

............................

245,432

240,368

65,571

Capital

shares

redeemed

.................................

1,842,795

3,148,044

2,679,998

Asset

allocation

fees

.....................................

265,783

418,646

426,703

Distribution

fees

........................................

405,048

602,020

403,830

Transfer

agent

fees

......................................

206,987

374,120

283,489

Distributions

to

shareholders

...............................

81

2

—

Accrued

expenses

and

other

liabilities

.........................

78,957

153,514

117,736

Total

liabilities

.......................................

3,045,083

4,936,714

3,977,327

Net

assets,

at

value

...............................

$1,271,220,543

$2,004,825,239

$1,372,929,620

Net

assets

consist

of:

Paid-in

capital

...........................................

$1,072,376,082

$1,546,651,094

$977,048,508

Total

distributable

earnings

(losses)

...........................

198,844,461

458,174,145

395,881,112

Net

assets,

at

value

...............................

$1,271,220,543

$2,004,825,239

$1,372,929,620

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Class

A:

Net

assets,

at

value

.....................................

$941,777,116

$1,573,565,808

$1,074,822,191

Shares

outstanding

......................................

63,008,865

97,287,579

54,723,000

Net

asset

value

per

share

a

................................

$14.95

$16.17

$19.64

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%,

94.50%

and

94.50%,

respectively)

..........................

$15.82

$17.11

$20.78

Class

C:

Net

assets,

at

value

.....................................

$212,656,451

$289,283,384

$186,526,296

Shares

outstanding

......................................

14,546,913

18,498,518

9,800,731

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$14.62

$15.64

$19.03

Class

R:

Net

assets,

at

value

.....................................

$66,208,364

$68,788,561

$54,296,520

Shares

outstanding

......................................

4,448,060

4,260,471

2,803,259

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.88

$16.15

$19.38

Class

R6:

Net

assets,

at

value

.....................................

$2,537,414

$6,766,910

$5,591,832

Shares

outstanding

......................................

170,013

418,485

283,486

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.92

$16.17

$19.73

Advisor

Class:

Net

assets,

at

value

.....................................

$48,041,198

$66,420,576

$51,692,781

Shares

outstanding

......................................

3,214,290

4,102,876

2,617,982

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.95

$16.19

$19.76

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$2,150,108

$3,064,019

$1,462,922

Controlled

affiliates

(Note

3f)

...............................

261,234

6,096,324

7,904,544

Non-controlled

affiliates

(Note

3f)

...........................

23,238,014

26,324,477

12,039,348

Interest:

Unaffiliated

issuers

......................................

4,939

6,406

5,378

Total

investment

income

.................................

25,654,295

35,491,226

21,412,192

Expenses:

Asset

allocation

fees

(Note

3a)

...............................

2,963,318

4,627,518

3,085,332

Distribution

fees:

(Note

3c)

    Class

A

..............................................

2,131,602

3,564,444

2,381,751

    Class

C

..............................................

2,208,076

2,947,971

1,799,530

    Class

R

..............................................

331,708

343,792

270,655

Transfer

agent

fees:

(Note

3e)

    Class

A

..............................................

898,924

1,669,709

1,426,443

    Class

C

..............................................

233,269

342,980

268,558

    Class

R

..............................................

69,992

80,175

80,973

    Class

R6

.............................................

2,970

3,980

3,489

    Advisor

Class

..........................................

45,997

66,065

64,751

Custodian

fees

(Note

4)

....................................

876

1,272

427

Reports

to

shareholders

....................................

63,355

134,264

107,633

Registration

and

filing

fees

..................................

128,022

142,814

111,280

Professional

fees

.........................................

55,001

53,457

53,106

Trustees'

fees

and

expenses

................................

9,870

15,484

10,248

Other

..................................................

24,109

36,770

26,012

Total

expenses

.......................................

9,167,089

14,030,695

9,690,188

Expense

reductions

(Note

4)

.............................

—

(24)

—

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

............

(21,650)

(26,305)

(17,017)

Net

expenses

.......................................

9,145,439

14,004,366

9,673,171

Net

investment

income

..............................

16,508,856

21,486,860

11,739,021

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

5,492,540

14,551,998

10,972,253

Controlled

affiliates

(Note

3f)

.............................

(4,615)

124,151

616,843

Non-controlled

affiliates

(Note

3f)

..........................

(7,967,395)

11,005,830

13,737,203

Capital

gain

distributions

from

Underlying

Funds:

Controlled

affiliates

(Note

3f)

.............................

—

1,335,382

1,161,332

Non-controlled

affiliates

(Note

3f)

..........................

13,307,855

25,067,590

20,300,543

Net

realized

gain

(loss)

................................

10,828,385

52,084,951

46,788,174

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

5,596,122

8,255,267

5,113,860

Controlled

affiliates

(Note

3f)

.............................

414,162

40,769,241

42,468,670

Non-controlled

affiliates

(Note

3f)

..........................

70,634,180

89,717,082

65,870,738

Net

change

in

unrealized

appreciation

(depreciation)

..........

76,644,464

138,741,590

113,453,268

Net

realized

and

unrealized

gain

(loss)

..........................

87,472,849

190,826,541

160,241,442

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$103,981,705

$212,313,401

$171,980,463

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$16,508,856

$25,107,727

$21,486,860

$31,558,118

Net

realized

gain

(loss)

............

10,828,385

82,974,477

52,084,951

199,499,628

Net

change

in

unrealized

appreciation

(depreciation)

.................

76,644,464

39,708,493

138,741,590

73,867,372

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

103,981,705

147,790,697

212,313,401

304,925,118

Distributions

to

shareholders:

Class

A

........................

(24,460,840)

(57,057,141)

(66,300,133)

(127,472,477)

Class

C

........................

(4,684,059)

(15,889,976)

(11,584,805)

(28,361,419)

Class

R

........................

(1,713,261)

(4,845,238)

(2,947,776)

(6,940,804)

Class

R6

.......................

(74,133)

(171,894)

(313,717)

(596,547)

Advisor

Class

...................

(1,362,987)

(3,083,117)

(2,816,703)

(5,530,382)

Total

distributions

to

shareholders

.....

(32,295,280)

(81,047,366)

(83,963,134)

(168,901,629)

Capital

share

transactions:

(Note

2

)

Class

A

........................

48,852,200

17,443,983

14,400,299

41,588,899

Class

C

........................

(51,518,295)

(49,562,208)

(67,957,576)

(63,732,864)

Class

R

........................

(8,637,502)

(13,811,072)

(14,331,710)

(15,013,845)

Class

R6

.......................

34,192

(29,922)

(347,017)

1,178,267

Advisor

Class

...................

1,723,435

3,905,956

1,643,642

1,860,972

Total

capital

share

transactions

.......

(9,545,970)

(42,053,263)

(66,592,362)

(34,118,571)

Net

increase

(decrease)

in

net

assets

.....................

62,140,455

24,690,068

61,757,905

101,904,918

Net

assets:

Beginning

of

year

..................

1,209,080,088

1,184,390,020

1,943,067,334

1,841,162,416

End

of

year

......................

$1,271,220,543

$1,209,080,088

$2,004,825,239

$1,943,067,334

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

Franklin

Growth

Allocation

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$11,739,021

$15,053,010

Net

realized

gain

(loss)

.................................................

46,788,174

163,274,838

Net

change

in

unrealized

appreciation

(depreciation)

...........................

113,453,268

64,981,512

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

171,980,463

243,309,360

Distributions

to

shareholders:

Class

A

.............................................................

(53,202,026)

(98,874,755)

Class

C

.............................................................

(9,062,162)

(19,758,707)

Class

R

.............................................................

(2,836,088)

(6,587,169)

Class

R6

............................................................

(285,717)

(497,982)

Advisor

Class

........................................................

(2,550,980)

(4,679,908)

Total

distributions

to

shareholders

..........................................

(67,936,973)

(130,398,521)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

17,198,516

55,726,659

Class

C

.............................................................

(29,089,134)

(24,496,389)

Class

R

.............................................................

(12,578,352)

(16,283,716)

Class

R6

............................................................

361,275

161,696

Advisor

Class

........................................................

3,451,500

2,253,086

Total

capital

share

transactions

............................................

(20,656,195)

17,361,336

Net

increase

(decrease)

in

net

assets

...................................

83,387,295

130,272,175

Net

assets:

Beginning

of

year

.......................................................

1,289,542,325

1,159,270,150

End

of

year

...........................................................

$1,372,929,620

$1,289,542,325

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

48

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twenty-four

separate

funds, three

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6,

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

year

end,

as

indicated

in

the

Statements

of

Investments,

had

been

entered

into

on

December

31,

2020.

c.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

49

franklintempleton.com

Annual

Report

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2020, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

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.

Dividend

income

and

realized

capital

gain

distributions

by

Underlying

Funds

and

ETFs

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

50

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

December

31,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

15,526,759

$217,187,515

16,087,915

$240,074,630

Shares

issued

in

reinvestment

of

distributions

..........

1,720,058

23,883,961

4,393,981

65,269,069

Shares

redeemed

...............................

(13,852,905)

(192,219,276)

(19,774,427)

(290,943,400)

Net

increase

(decrease)

..........................

3,393,912

$48,852,200

707,469

$14,400,299

Year

ended

December

31,

2019

Shares

sold

a

...................................

9,240,415

$132,372,358

11,595,147

$178,905,379

Shares

issued

in

reinvestment

of

distributions

..........

3,951,904

55,815,055

8,307,144

125,651,819

Shares

redeemed

...............................

(11,945,088)

(170,743,430)

(17,069,619)

(262,968,299)

Net

increase

(decrease)

..........................

1,247,231

$17,443,983

2,832,672

$41,588,899

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

2,831,903

$38,694,729

3,106,938

$44,933,627

Shares

issued

in

reinvestment

of

distributions

..........

338,542

4,582,765

797,453

11,434,271

Shares

redeemed

a

..............................

(6,952,067)

(94,795,789)

(8,683,113)

(124,325,474)

Net

increase

(decrease)

..........................

(3,781,622)

$(51,518,295)

(4,778,722)

$(67,957,576)

Year

ended

December

31,

2019

Shares

sold

...................................

2,306,121

$32,284,847

2,880,868

$43,190,637

Shares

issued

in

reinvestment

of

distributions

..........

1,119,382

15,451,899

1,903,555

27,852,917

Shares

redeemed

a

..............................

(6,958,708)

(97,298,954)

(9,018,336)

(134,776,418)

Net

increase

(decrease)

..........................

(3,533,205)

$(49,562,208)

(4,233,913)

$(63,732,864)

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

658,070

$9,185,072

554,405

$8,325,068

Shares

issued

in

reinvestment

of

distributions

..........

124,089

1,712,015

199,063

2,943,699

Shares

redeemed

...............................

(1,410,247)

(19,534,589)

(1,740,928)

(25,600,477)

Net

increase

(decrease)

..........................

(628,088)

$(8,637,502)

(987,460)

$(14,331,710)

Year

ended

December

31,

2019

Shares

sold

...................................

810,137

$11,581,508

590,710

$9,051,968

Shares

issued

in

reinvestment

of

distributions

..........

340,829

4,792,738

452,084

6,824,543

Shares

redeemed

...............................

(2,124,391)

(30,185,318)

(2,012,772)

(30,890,356)

Net

increase

(decrease)

..........................

(973,425)

$(13,811,072)

(969,978)

$(15,013,845)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

51

franklintempleton.com

Annual

Report

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

30,722

$427,486

35,359

$530,086

Shares

issued

in

reinvestment

of

distributions

..........

5,350

74,133

21,167

313,717

Shares

redeemed

...............................

(34,257)

(467,427)

(80,124)

(1,190,820)

Net

increase

(decrease)

..........................

1,815

$34,192

(23,598)

$(347,017)

Year

ended

December

31,

2019

Shares

sold

...................................

60,936

$868,835

125,617

$1,956,765

Shares

issued

in

reinvestment

of

distributions

..........

12,180

171,894

39,446

596,547

Shares

redeemed

...............................

(74,119)

(1,070,651)

(88,644)

(1,375,045)

Net

increase

(decrease)

..........................

(1,003)

$(29,922)

76,419

$1,178,267

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

1,451,176

$20,585,073

1,414,029

$21,622,666

Shares

issued

in

reinvestment

of

distributions

..........

80,865

1,121,419

167,041

2,486,628

Shares

redeemed

...............................

(1,445,219)

(19,983,057)

(1,521,155)

(22,465,652)

Net

increase

(decrease)

..........................

86,822

$1,723,435

59,915

$1,643,642

Year

ended

December

31,

2019

Shares

sold

...................................

1,226,806

$17,518,543

1,350,825

$20,876,845

Shares

issued

in

reinvestment

of

distributions

..........

194,739

2,751,084

325,037

4,922,110

Shares

redeemed

...............................

(1,146,606)

(16,363,671)

(1,544,989)

(23,937,983)

Net

increase

(decrease)

..........................

274,939

$3,905,956

130,873

$1,860,972

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

52

franklintempleton.com

Annual

Report

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

7,827,793

$137,912,306

Shares

issued

in

reinvestment

of

distributions

..........

2,978,278

52,583,144

Shares

redeemed

...............................

(9,837,040)

(173,296,934)

Net

increase

(decrease)

..........................

969,031

$17,198,516

Year

ended

December

31,

2019

Shares

sold

a

...................................

6,259,778

$116,026,941

Shares

issued

in

reinvestment

of

distributions

..........

5,381,223

97,592,988

Shares

redeemed

...............................

(8,509,421)

(157,893,270)

Net

increase

(decrease)

..........................

3,131,580

$55,726,659

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

1,578,098

$27,019,417

Shares

issued

in

reinvestment

of

distributions

..........

527,853

8,970,791

Shares

redeemed

a

..............................

(3,807,271)

(65,079,342)

Net

increase

(decrease)

..........................

(1,701,320)

$(29,089,134)

Year

ended

December

31,

2019

Shares

sold

...................................

1,388,707

$24,985,521

Shares

issued

in

reinvestment

of

distributions

..........

1,107,638

19,536,755

Shares

redeemed

a

..............................

(3,831,975)

(69,018,665)

Net

increase

(decrease)

..........................

(1,335,630)

$(24,496,389)

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

307,850

$5,319,186

Shares

issued

in

reinvestment

of

distributions

..........

162,900

2,822,972

Shares

redeemed

...............................

(1,188,034)

(20,720,510)

Net

increase

(decrease)

..........................

(717,284)

$(12,578,352)

Year

ended

December

31,

2019

Shares

sold

...................................

361,071

$6,612,171

Shares

issued

in

reinvestment

of

distributions

..........

365,944

6,550,138

Shares

redeemed

...............................

(1,619,946)

(29,446,025)

Net

increase

(decrease)

..........................

(892,931)

$(16,283,716)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

53

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Asset

Allocation

Fees

The

Funds

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

33,463

$596,260

Shares

issued

in

reinvestment

of

distributions

..........

16,075

285,716

Shares

redeemed

...............................

(30,104)

(520,701)

Net

increase

(decrease)

..........................

19,434

$361,275

Year

ended

December

31,

2019

Shares

sold

...................................

27,196

$506,243

Shares

issued

in

reinvestment

of

distributions

..........

27,338

497,982

Shares

redeemed

...............................

(45,001)

(842,529)

Net

increase

(decrease)

..........................

9,533

$161,696

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

730,397

$13,350,224

Shares

issued

in

reinvestment

of

distributions

..........

120,323

2,143,621

Shares

redeemed

...............................

(685,572)

(12,042,345)

Net

increase

(decrease)

..........................

165,148

$3,451,500

Year

ended

December

31,

2019

Shares

sold

...................................

521,307

$9,751,537

Shares

issued

in

reinvestment

of

distributions

..........

211,955

3,863,038

Shares

redeemed

...............................

(609,204)

(11,361,489)

Net

increase

(decrease)

..........................

124,058

$2,253,086

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

54

franklintempleton.com

Annual

Report

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

year

ended

December

31,

2020,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$165,658

$244,079

$203,979

CDSC

retained

...........................

$19,080

$22,765

$14,984

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

55

franklintempleton.com

Annual

Report

f.

Investments

in

FT

Underlying

Funds

The Funds

invest

in

Underlying

Funds

which

are

managed

by

Franklin

Advisers,

Inc.

(Advisers),

an

affiliate

of

FT

Services

or

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

year

ended

December

31,

2020,

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Transfer

agent

fees

........................

$607,256

$1,098,208

$1,005,704

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

Controlled

Affiliates

Franklin

Liberty

International

Aggregate

Bond

ETF

........

$—

$62,307,221

$(1,675,075)

$

(4,615)

$

414,162

$

61,041,693

2,389,575

$

261,234

Non-Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$

26,164,081

$

2,034,215

$

(11,771,508)

$

(1,138,906)

$

835,902

$

16,123,784

1,386,396

$

593,378

Franklin

FTSE

China

ETF

.....

—

3,102,019

—

—

12,877

3,114,896

97,925

24,366

Franklin

FTSE

Europe

ETF

....

9,768,089

4,767,590

(2,172,044)

(376,075)

828,516

12,816,076

491,693

246,122

Franklin

FTSE

Japan

ETF

.....

4,888,926

2,060,958

(797,211)

(205,540)

1,008,969

6,956,102

233,583

105,744

Franklin

Growth

Fund,

Class

R6

.

100,953,428

32,351,333

(29,490,602)

3,799,237

19,132,353

126,745,749

934,014

9,623,800

a

Franklin

International

Core

Equity

(IU)

Fund

................

44,157,780

4,560,455

(10,384,364)

84,282

2,425,848

40,844,001

3,449,662

926,806

Franklin

International

Growth

Fund,

Class

R6

................

18,620,806

2,041,735

(10,622,094)

1,230,056

2,121,607

13,392,110

619,432

304,162

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

18,669,307

2,197,912

(2,126,642)

(86,324)

438,649

19,092,902

717,239

1,035,854

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

60,127,611

23,703,409

(35,519,831)

(51,747)

1,627,205

49,886,647

1,842,100

2,038,908

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

52,463,243

(3,727,091)

(18,821)

26,600

48,743,931

509,075

423,521

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

6,767,774

—

—

(1,490,262)

5,277,512

268,450

424,904

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

297,650,265

10,548,141

(18,189,617)

130,162

12,101,442

302,240,393

11,557,950

9,759,202

a

3.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

56

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

(continued)

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

$

—

$

65,749,817

$

(4,135,136)

$

(81,869)

$

(828,527)

$

60,704,285

2,432,550

$

578,866

Franklin

LibertyQ

Emerging

Markets

ETF

..............

16,448,929

—

(14,343,619)

(567,801)

(1,537,509)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

95,440,054

44,764,019

(50,987,295)

244,105

3,833,580

93,294,463

2,462,245

1,764,457

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

175,003,128

4,170,522

(117,640,770)

(6,376,587)

718,713

55,875,006

5,760,310

3,099,521

Franklin

Rising

Dividends

Fund,

Class

R6

................

50,520,703

16,310,634

(9,480,680)

363,729

9,158,803

66,873,189

835,080

732,993

Franklin

U.S.

Core

Equity

(IU)

Fund

85,739,586

22,726,329

(12,638,864)

858,570

17,378,174

114,063,795

9,095,996

2,487,837

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

16,214

126,540,963

(120,685,665)

—

—

5,871,512

5,871,512

28,275

Templeton

Developing

Markets

Trust,

Class

R6

............

—

17,347,100

(6,250,768)

(585,701)

2,741,060

13,251,691

525,235

354,309

a

Templeton

Foreign

Fund,

Class

R6

18,827,976

4,038,470

(4,718,971)

102,747

(223,539)

18,026,683

2,575,240

307,523

Templeton

Global

Total

Return

Fund,

Class

R6

............

55,538,436

2,650,980

(40,897,127)

(5,290,912)

323,719

12,325,096

1,234,980

1,685,321

Total

Non-Controlled

Affiliates

$1,078,535,319

$450,897,618

$(506,579,899)

$

(7,967,395)

$

70,634,180

$1,085,519,823

$

36,545,869

Total

Affiliated

Securities

....

$1,078,535,319

$513,204,839

$(508,254,974)

$(7,972,010)

$71,048,342

$1,146,561,516

$36,807,103

Franklin

Moderate

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$63,064,506

$3,713,303

$(25,554,564)

(2,318,521)

2,073,070

40,977,794

3,523,456

1,503,386

Franklin

Liberty

International

Aggregate

Bond

ETF

........

$—

$62,868,548

$(2,818,254)

(6,896)

429,919

60,473,317

2,367,325

261,532

Franklin

U.S.

Core

Equity

(IU)

Fund

$207,136,477

$35,986,056

$(25,209,319)

2,449,568

38,266,254

258,629,036

20,624,325

5,666,788

a

Total

Controlled

Affiliates

....

$270,200,983

$102,567,907

$(53,582,137)

$

124,151

$

40,769,243

$360,080,147

$

7,431,706

Non-Controlled

Affiliates

Franklin

FTSE

China

ETF

.....

—

7,765,740

—

—

32,236

7,797,976

245,150

61,000

Franklin

FTSE

Europe

ETF

....

23,110,997

11,889,190

(5,078,137)

(821,088)

1,825,294

30,926,256

1,186,496

596,661

Franklin

FTSE

Japan

ETF

.....

11,234,092

5,882,633

(3,030,825)

(499,955)

2,395,462

15,981,407

536,649

250,209

Franklin

Growth

Fund,

Class

R6

.

245,225,738

50,059,831

(62,065,857)

16,195,363

35,336,215

284,751,290

2,098,388

21,588,212

a

Franklin

International

Core

Equity

(IU)

Fund

................

109,600,441

7,385,084

(21,548,998)

90,350

5,779,728

101,306,605

8,556,301

2,254,321

Franklin

International

Growth

Fund,

Class

R6

................

46,471,153

3,362,377

(24,612,304)

2,823,265

5,180,087

33,224,578

1,536,752

754,597

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

19,730,336

2,798,846

(3,888,138)

(184,313)

490,746

18,947,477

711,776

1,058,399

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

52,974,798

(2,366,537)

11,472

191,067

50,810,800

1,876,225

997,132

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

57

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Moderate

Allocation

Fund

(continued)

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

$

—

$

52,466,461

$

(4,240,615)

$

(19,454)

$

22,883

$

48,229,275

503,700

$

398,832

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

10,662,793

(24,356)

(3,768)

(2,352,248)

8,282,421

421,300

667,096

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

383,295,216

38,546,883

(139,374,365)

408,360

12,999,990

295,876,084

11,314,573

10,391,472

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

66,041,650

(5,727,678)

(83,469)

(803,914)

59,426,589

2,381,350

515,774

Franklin

LibertyQ

Emerging

Markets

ETF

..............

39,882,712

—

(34,778,097)

(1,390,622)

(3,713,993)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

230,567,515

77,174,750

(112,142,623)

2,035,325

6,427,501

204,062,468

5,385,655

3,973,685

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

130,010,994

4,349,852

(76,957,968)

(3,320,536)

639,838

54,722,180

5,641,462

2,731,780

Franklin

Rising

Dividends

Fund,

Class

R6

................

122,670,489

20,745,436

(18,828,860)

1,677,614

19,299,527

145,564,206

1,817,735

1,628,500

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

26,056

201,040,909

(201,066,965)

—

—

—

b

—

37,575

Templeton

Developing

Markets

Trust,

Class

R6

............

—

40,041,937

(12,560,410)

(1,139,318)

7,000,769

33,342,978

1,321,561

891,488

a

Templeton

Foreign

Fund,

Class

R6

47,143,784

7,395,988

(9,584,296)

(5,058)

(589,008)

44,361,410

6,337,344

756,776

Templeton

Global

Total

Return

Fund,

Class

R6

............

58,962,107

4,017,766

(38,423,570)

(4,768,338)

(445,100)

19,342,865

1,938,163

1,838,558

Total

Non-Controlled

Affiliates

$1,467,931,630

$664,602,924

$(776,300,599)

11,005,830

89,717,080

$1,456,956,865

51,392,067

Total

Affiliated

Securities

....

$1,738,132,613

$767,170,831

$(829,882,736)

$11,129,981

$130,486,323

$1,817,037,012

$58,823,773

Franklin

Growth

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$55,698,377

$3,100,492

$(17,629,771)

(1,292,546)

2,315,814

42,192,366

3,627,890

1,473,243

Franklin

FTSE

Europe

ETF

....

$21,501,637

$9,420,836

$(2,510,296)

(279,737)

1,568,517

29,700,957

1,139,487

567,190

Franklin

International

Core

Equity

(IU)

Fund

................

$96,752,117

$4,325,220

$(10,617,955)

453,456

5,881,284

96,794,122

8,175,179

2,103,031

Franklin

U.S.

Core

Equity

(IU)

Fund

$182,117,237

$26,493,307

$(18,129,165)

1,735,670

32,703,057

224,920,106

17,936,213

4,922,412

a

Total

Controlled

Affiliates

....

$356,069,368

$43,339,855

$(48,887,187)

616,843

42,468,672

$393,607,551

9,065,876

Non-Controlled

Affiliates

Franklin

FTSE

China

ETF

.....

—

7,920,958

—

—

32,882

7,953,840

250,050

62,219

Franklin

FTSE

Japan

ETF

.....

10,760,725

4,876,782

(2,494,282)

(342,585)

2,176,675

14,977,315

502,932

232,787

Franklin

Growth

Fund,

Class

R6

.

217,731,867

32,228,423

(45,049,023)

12,481,927

31,470,811

248,864,005

1,833,928

18,840,098

a

Franklin

International

Growth

Fund,

Class

R6

................

41,904,280

2,391,912

(20,792,715)

2,648,147

5,020,621

31,172,245

1,441,824

707,984

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

6,399,714

1,245,198

(2,304,867)

(90,746)

188,102

5,437,401

204,260

329,303

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

58

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Effective

May

1,

2020,

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

Franklin

Growth

Allocation

Fund

so

that

the

operating expenses

(excluding

distribution

fees,

and

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.45%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2021.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Growth

Allocation

Fund

(continued)

Franklin

Liberty

International

Aggregate

Bond

ETF

........

$

—

$

19,759,112

$

(1,190,723)

$

(4,558)

$

140,218

$

18,704,049

732,200

$

79,143

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

—

16,842,567

(3,558,179)

196

34,726

13,319,310

491,825

290,622

a

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

—

16,682,190

(3,261,208)

(15,366)

11,353

13,416,969

140,125

124,480

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

7,307,313

(91,890)

(14,216)

(1,572,778)

5,628,429

286,300

452,855

a

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

113,394,431

19,058,881

(56,553,131)

371,287

3,592,593

79,864,061

3,054,075

3,010,472

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

—

21,001,386

(3,344,150)

(44,896)

(234,926)

17,377,414

696,350

162,041

Franklin

LibertyQ

Emerging

Markets

ETF

..............

35,017,198

—

(30,535,323)

(1,230,256)

(3,251,619)

—

b

—

—

Franklin

LibertyQ

U.S.

Equity

ETF

202,717,399

55,890,321

(86,215,788)

1,266,709

5,549,275

179,207,916

4,729,689

3,464,140

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

42,170,338

1,629,581

(27,956,504)

(1,054,080)

138,646

14,927,981

1,538,967

835,129

Franklin

Rising

Dividends

Fund,

Class

R6

................

109,395,743

7,924,058

(11,093,381)

717,258

16,885,871

123,829,549

1,546,323

1,398,347

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

18,251

125,015,907

(125,034,158)

—

—

—

b

—

25,267

Templeton

Developing

Markets

Trust,

Class

R6

............

—

35,108,587

(7,874,551)

(631,471)

7,083,838

33,686,403

1,335,173

904,653

a

Templeton

Foreign

Fund,

Class

R6

43,338,229

6,915,852

(7,670,062)

277,916

(254,688)

42,607,247

6,086,750

726,852

Templeton

Global

Total

Return

Fund,

Class

R6

............

19,141,122

3,083,916

(7,337,460)

(598,063)

(1,140,864)

13,148,651

1,317,500

693,499

Total

Non-Controlled

Affiliates

$841,989,297

$384,882,944

$(442,357,395)

13,737,203

65,870,736

$864,122,785

32,339,891

Total

Affiliated

Securities

....

$1,198,058,665

$428,222,799

$(491,244,582)

$14,354,046

$108,339,408

$1,257,730,336

$41,405,767

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statement

of

Operations.

b

As

of

December

31,

2020,

no

longer

held

by

the

fund.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

59

franklintempleton.com

Annual

Report

Prior

to

May

1,

2020,

expenses

(excluding

certain

fees

and

expenses

as

previously

disclosed)

for

Franklin

Growth

Allocation

Fund

for

Class

A,

Class

C,

Class

R,

and

Advisor

Class

were

limited

to

0.40%,

and

expenses

for

Class

R6

were

limited

to

0.27%

based

on

the

average

net

assets

of

each

class.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2021.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the year

ended

December

31,

2020 the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2020

and

2019,

was

as

follows:

At

December

31,

2020,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

2020

2019

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$18,317,790

$25,683,084

$31,777,661

$32,803,976

Long

term

capital

gain

....................

13,977,490

55,364,282

52,185,473

136,097,653

$32,295,280

$81,047,366

$83,963,134

$168,901,629

Franklin

Growth

Allocation

Fund

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$19,285,290

$15,530,614

Long

term

capital

gain

....................

48,651,683

114,867,907

$67,936,973

$130,398,521

3.

Transactions

with

Affiliates

(continued)

g.

Waiver

and

Expense

Reimbursements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

60

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

return

of

capital

distributions

and

short

term

capital

gains

distributions

from

Underlying

Funds.

The

Funds,

except

for

Franklin

Conservative

Allocation

Fund,

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

realized

capital

gains.

6.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

year

ended

December

31,

2020,

were

as

follows:

7. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

8.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matured

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

5,

2021,

the

Borrowers

renewed

the

Global

Credit

facility

for

a

one

year

term,

maturing

February

5,

2022,

for

a

total

of

$2

billion. 

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

a

a

a

a

Cost

of

investments

.......................

$1,075,609,700

$1,574,770,709

$1,004,764,145

Unrealized

appreciation

.....................

$201,748,370

$442,347,458

$375,135,720

Unrealized

depreciation

.....................

(9,036,777)

(12,587,329)

(5,339,704)

Net

unrealized

appreciation

(depreciation)

.......

$192,711,593

$429,760,129

$369,796,016

Distributable

earnings:

Undistributed

ordinary

income

................

$6,132,855

$8,981,272

$8,192,037

Undistributed

long

term

capital

gains

...........

—

19,432,743

17,893,065

Total

distributable

earnings

..................

$6,132,855

$28,414,015

$26,085,102

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Purchases

..............................

$569,158,761

$819,758,292

$481,471,503

Sales

..................................

$581,206,930

$924,697,767

$536,866,781

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

61

franklintempleton.com

Annual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year

ended

December

31,

2020,

the Funds

did

not

use

the

Global

Credit

Facility.

9.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2020,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Conservative

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

................................

$

1,258,595,623

$

—

$

—

$

1,258,595,623

Short

Term

Investments

...................

5,871,512

3,854,158

—

9,725,670

Total

Investments

in

Securities

...........

$1,264,467,135

$3,854,158

$—

$1,268,321,293

Franklin

Moderate

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

................................

1,987,339,159

—

—

1,987,339,159

Short

Term

Investments

...................

—

17,191,679

—

17,191,679

Total

Investments

in

Securities

...........

$1,987,339,159

$17,191,679

$—

$2,004,530,838

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

................................

1,362,977,663

—

—

1,362,977,663

Short

Term

Investments

...................

—

11,582,498

—

11,582,498

Total

Investments

in

Securities

...........

$1,362,977,663

$11,582,498

$—

$1,374,560,161

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

8.

Credit

Facility

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

62

franklintempleton.com

Annual

Report

10.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

11.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure,

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Selected

Portfolio

ETF

Exchange-Traded

Fund

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

63

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Conservative

Allocation

Fund,

Franklin

Moderate

Allocation

Fund

and

Franklin

Growth

Allocation

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

statements

of

investments,

of

Franklin

Conservative

Allocation

Fund,

Franklin

Moderate

Allocation

Fund

and

Franklin

Growth

Allocation

Fund

(three

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2020,

the

related

statements

of

operations

for

the

year

ended

December

31,

2020,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2020,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2020

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2020,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2020

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2020

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2020

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

19,

2021

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

64

franklintempleton.com

Annual

Report

Under

Section

852(b)(3)(C)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

long

term

capital

gain

dividends

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

871(k)(2)(C)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

short

term

capital

gain

dividends

for

purposes

of

the

tax

imposed

under

Section

871(a)(1)

(A)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

854(b)(1)(A)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

following

percentage

amounts

of

the

ordinary

income

dividends

as

income

qualifying

for

the

dividends

received

deduction

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

854(b)(1)(B)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

qualified

dividends

for

purposes

of

the

maximum

rate

under

Section

1(h)(11)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

December

31,

2020:

Distributions,

including

qualified

dividend

income,

paid

during

calendar

year

2020

will

be

reported

to

shareholders

on

Form

1099-DIV

by

mid-February

2021.

Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

individual

income

tax

returns.

During

the

fiscal

year

ended

December

31,

2020,

the

Funds,

qualified

fund

of

funds

under

Section

852(g)(2)

of

Internal

Revenue

Code,

received

an

allocation

of

foreign

taxes

paid

from

one

or

more

of

their

underlying

funds.

As

shown

in

the

table

below,

the

Funds

hereby

report

to

shareholders

the

foreign

source

income

and

foreign

taxes

paid

by

underlying

funds,

pursuant

to

Section

853

of

the

Internal

Revenue

Code.

This

written

statement

will

allow

shareholders

of

record

on

December

29,

2020,

to

treat

their

proportionate

share

of

foreign

taxes

paid

by

the

underlying

funds

as

having

been

paid

directly

by

them.

The

shareholder

shall

consider

these

amounts

as

foreign

taxes

paid

in

the

tax

year

in

which

they

receive

the

Fund

distribution.

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

$13,977,490

$57,803,553

$52,833,687

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

$5,380

$6,912,340

$5,328,456

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

26.90%

35.00%

50.11%

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

$6,893,306

$15,965,874

$14,314,461

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

65

franklintempleton.com

Annual

Report

1.

Qualified

dividends

are

taxed

at

reduced

long

term

capital

gains

tax

rates.

In

determining

the

amount

of

foreign

tax

credit

that

may

be

applied

against

the

U.S.

tax

liability

of

individuals

receiving

foreign

source

qualified

dividends,

adjustments

may

be

required

to

the

foreign

tax

credit

limitation

calculation

to

reflect

the

rate

differential

applicable

to

such

dividend

income.

The

rules

however

permit

certain

individuals

to

elect

not

to

apply

the

rate

differential

adjustments

for

capital

gains

and/or

dividends

for

any

taxable

year.

Please

consult

your

tax

advisor

and

the

instructions

to

Form

1116

for

more

information.

The

following

table

provides

a

detailed

analysis

of

foreign

tax

paid,

foreign

source

income,

and

foreign

source

qualified

dividends

as

reported

by

the

Funds,

to

shareholders

of

record.

Foreign

Tax

Paid

Per

Share

is

the

amount

per

share

available

to

you,

as

a

tax

credit

(assuming

you

held

your

shares

in

the

Fund

for

a

minimum

of

16

days

during

the

31-day

period

beginning

15

days

before

the

ex-dividend

date

of

the

Fund’s

distribution

to

which

the

foreign

taxes

relate),

or,

as

a

tax

deduction.

Foreign

Source

Income

Per

Share

is

the

amount

per

share

of

income

dividends

attributable

to

foreign

securities

held

by

the

Fund,

plus

any

foreign

taxes

withheld

on

these

dividends.

The

amounts

reported

include

foreign

source

qualified

dividends

that

have

not

been

adjusted

for

the

rate

differential

applicable

to

such

dividend

income.

1

Foreign

Source

Qualified

Dividends

Per

Share

is

the

amount

per

share

of

foreign

source

qualified

dividends

plus

any

foreign

taxes

withheld

on

these

dividends.

These

amounts

represent

the

portion

of

the

Foreign

Source

Income

Per

Share

that

were

derived

from

qualified

foreign

securities

held

by

the

Fund.

1

At

the

beginning

of

each

calendar

year,

shareholders

will

receive

Form

1099-DIV

which

will

include

their

share

of

taxes

paid

during

the

prior

calendar

year. Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

income

tax

returns.

Class

Foreign

Tax

Paid

Per

Share

Foreign

Source

Income

Per

Share

Foreign

Source

Qualified

Dividends

Per

Share

Franklin

Conservative

Allocation

Fund

Class

A

$0.0039

$0.0761

$0.0216

Class

C

$0.0039

$0.0421

$0.0120

Class

R

$0.0039

$0.0644

$0.0183

Class

R6

$0.0039

$0.0906

$0.0258

Advisor

Class

$0.0039

$0.0871

$0.0248

Franklin

Moderate

Allocation

Fund

Class

A

$0.0048

$0.0499

$0.0361

Class

C

$0.0048

$0.0299

$0.0217

Class

R

$0.0048

$0.0428

$0.0310

Class

R6

$0.0048

$0.0589

$0.0427

Advisor

Class

$0.0048

$0.0566

$0.0410

Franklin

Growth

Allocation

Fund

Class

A

$0.0088

$0.1042

$0.0618

Class

C

$0.0088

$0.0670

$0.0397

Class

R

$0.0088

$0.0879

$0.0521

Class

R6

$0.0088

$0.1274

$0.0755

Advisor

Class

$0.0088

$0.1196

$0.0708

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

66

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

125

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

106

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

125

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-May

2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

67

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

125

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Canadian

National

Railway

(railroad)

(2001-present),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

125

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Private

investor;

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(May

2019-January

1,

2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

125

Graham

Holdings

Company

(education

and

media

organization)

(2011-present);

and

formerly

,

The

Southern

Company

(energy

company)

(2014-May

2020;

previously

2010-2012),

Cbeyond,

Inc.

(business

communications

provider)

(2010-2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-September

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

68

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

136

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

39

of

the

investment

companies

in

Franklin

Templeton;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015),

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

125

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

37

of

the

investment

companies

in

Franklin

Templeton.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

October

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Advisory

Services,

LLC,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Vice

President,

Franklin

Templeton

Distributors,

Inc.

and

FASA,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

41

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Franklin

Fund

Allocator

Series

69

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Robert

G.

Kubilis

(1973)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

December

2020

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting

and

officer

of

39

of

the

investment

companies

in

Franklin

Templeton.

Robert

Lim

(1948)

Vice

President

–

AML

Compliance

Since

2016

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Franklin

Templeton

Companies,

LLC;

Chief

Compliance

Officer,

Franklin

Templeton

Distributors,

Inc.

and

Franklin

Templeton

Investor

Services,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

eight

of

the

investment

companies

in

Franklin

Templeton

(since

December

2018).

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Associate

General

Counsel

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

Inc.;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

70

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007-May

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

71

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

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

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FAS

A

02/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

December

31,

2020

Sign

up

for

electronic

delivery

at

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Franklin

Corefolio

Allocation

Fund

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Founding

Funds

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Fund

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Insured

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Lose

Value

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Bank

Guarantee

franklintempleton.com

Not

part

of

the

annual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2020,

reported

first-

and

second-quarter

2020

data

indicated

the

U.S.

economy

contracted

in

response

to

the

novel

coronavirus

(COVID-19)

pandemic.

In

2020’s

third

quarter,

the

economy

recovered

substantially

based

on

increased

business

and

residential

investment

and

consumer

spending,

although

growth

slowed

in

the

fourth

quarter.

The

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

for

a

total

of

1.50%,

decreasing

the

rate

from

1.75%

to

0.25%.

The

Federal

Reserve

also

announced

broad

quantitative

easing

measures

to

aid

credit

markets

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

Global

stocks

sold

off

in

early

2020

amid

the

worldwide

economic

slowdown.

Equities

began

recovering

in

late

March

given

optimism

about

easing

lockdowns,

vaccines,

and

economic

stimulus,

and

continued

to

rebound

by

period-end

amid

successful

vaccine

trials

and

reduced

political

uncertainty.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+16.26%

(the

index

increasing

from

3,230.78

to

3,756.07).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+14.06%

(the

index

increasing

from

2,358.468

to

2,690.044).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

+7.51%

total

return

(an

index

increase

from

2,225.00

to

2,392.02),

which

includes

reinvestment

of

income

and

distributions.

4

We

recognize

the

important

role

of

financial

advisors

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

As

you

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2020

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

+18.40%

(index

total

return

resulting

in

an

increase

from

6,553.57

to

7,759.35)

and

MSCI

World

Index

+16.50%

(index

total

return

resulting

in

an

increase

from

9,979.034

to

11,625.199).

4.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

Corefolio

Allocation

Fund

4

Franklin

Founding

Funds

Allocation

Fund

9

Financial

Highlights

and

Statements

of

Investments

15

Financial

Statements

27

Notes

to

Financial

Statements

30

Report

of

Independent

Registered

Public

Accounting

Firm

39

Tax

Information

40

Special

Meeting

of

Shareholders

42

Board

Members

and

Officers

43

Shareholder

Information

48

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index

(USD),

posted

a

+16.82%

total

return

for

the

12

months

ended

December

31,

2020.

1

Stocks

fell

sharply

in

early

2020

as

many

investors

sold

equities

amid

fears

of

a

global

economic

slowdown

due

to

the

novel

coronavirus

(COVID-19)

pandemic.

Global

equities

began

to

rebound

in

late

March

2020

amid

optimism

about

easing

lockdown

restrictions,

vaccine

and

treatment

development

and

economic

stimulus

measures.

Despite

declines

in

September

and

October

due

to

geopolitical

tensions

and

rising

infection

rates,

markets

rebounded

in

November

and

December,

as

positive

sentiment

about

successful

trials

of

COVID-19

vaccines,

the

beginning

of

vaccination

programs

in

some

countries

and

apparent

resolution

of

political

uncertainty

supported

markets.

In

the

U.S.,

pandemic-related

restrictions

caused

stiff

economic

headwinds,

including

mass

layoffs

that

drove

the

unemployment

rate

to

14.8%

in

April

2020.

2

According

to

the

National

Bureau

of

Economic

Research,

the

longest

U.S.

economic

expansion

in

history

ended

in

February,

and

the

country

slipped

into

a

deep

recession.

Equities

began

to

rebound

in

the

spring

amid

the

government’s

fiscal

and

monetary

stimulus,

declining

jobless

claims,

rising

retail

sales

and

optimism

about

treatments

and

potential

vaccines

for

COVID-19.

Following

a

record

annualized

decline

in

second-quarter

gross

domestic

product

(GDP),

resilient

consumer

spending

helped

drive

third-quarter

GDP

to

expand

at

a

record

annualized

rate,

although

growth

slowed

in

the

fourth

quarter.

Equities

continued

to

rise

during

the

summer

but

declined

in

the

fall

due

to

concerns

about

possible

new

restrictions

amid

rising

COVID-19

infection

rates

and

uncertainties

about

additional

fiscal

stimulus

and

the

U.S.

presidential

election.

Despite

signs

that

the

economic

recovery

was

stalling

as

the

unemployment

rate

remained

relatively

high

(6.7%

at

period-end)

and

consumer

spending

declined,

stocks

rallied

in

November

and

December,

buoyed

by

the

outcome

of

the

U.S.

presidential

election,

the

start

of

COVID-19

vaccination

programs

and

the

passage

of

a

new

U.S.

stimulus

bill.

2

In

an

effort

to

support

the

economy,

the

U.S.

Federal

Reserve

(Fed)

lowered

the

federal

funds

target

rate

to

a

range

of

0.00%–0.25%

in

March

2020.

The

Fed

also

enacted

quantitative

easing

measures

aimed

at

ensuring

credit

flows

to

borrowers

and

supporting

credit

markets

with

open-

ended

bond

purchasing.

Furthermore,

the

Fed

signaled

that

interest

rates

would

potentially

remain

low,

even

if

inflation

moderately

exceeded

its

2%

target.

In

the

eurozone,

the

economy

contracted

again

in

the

fourth

quarter

of

2020,

following

quarter-on-quarter

expansion

in

the

third

quarter

and

contractions

in

the

first

and

second

quarters.

After

several

months

of

gains

due

to

easing

restrictions

and

robust

stimulus

measures,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index

(USD),

declined

in

September

and

October

as

rising

infection

rates

heightened

investor

concerns

that

the

nascent

economic

revival

could

stall.

Nevertheless,

successful

vaccine

development

and

a

Brexit

resolution

supported

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index

(USD),

to

post

a

+5.93%

total

return

for

the

period.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index

(USD),

posted

a

+21.30%

total

return

for

the

12

months

under

review.

1

Although

pandemic-related

lockdowns

derailed

economic

growth

in

early

2020,

sharp

market

declines

were

followed

by

rebounds

as

China’s

economy,

a

key

driver

of

the

region’s

economic

activity,

recovered

from

the

contraction

in

the

first

quarter

and

expanded

during

the

rest

of

2020.

Asian

stocks

rose

as

the

region’s

economies

reopened,

aided

by

robust

stimulus

measures

and

optimism

that

economic

revitalization

would

be

further

spurred

by

COVID-19

vaccines.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index

(USD),

posted

a

+18.69%

total

return

for

the

period,

despite

steep

pandemic-related

declines

in

early

2020,

benefiting

from

improving

economic

activity,

stabilizing

oil

prices

and

U.S.

dollar

weakness.

1

In

spite

of

higher

COVID-19

cases

in

some

countries,

emerging

market

stocks

rallied

near

the

end

of

2020,

bolstered

by

easing

political

uncertainty,

commencement

of

COVID-19

vaccinations

and

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2020

.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source.

Morningstar.

2.

Source:

U.S.

Bureau

of

Labor

Statistics.

4

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

This

annual

report

for

Franklin

Corefolio

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

through

investments

in

a

combination

of

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+18.28%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

benchmarks,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+18.40%

cumulative

total

return,

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+16.50%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Fund

invests

its

assets

allocated

approximately

25%

each

in

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

These

underlying

funds,

in

turn,

invest

primarily

in

U.S.

and

foreign

equity

securities

and,

to

a

lesser

extent,

fixed

income

and

money

market

securities.

As

market

conditions

affect

the

underlying

funds,

we

rebalance

the

Fund’s

allocations

to

maintain

the

predetermined

weightings

in

each

underlying

fund

whenever

the

actual

allocations

exceed

plus

or

minus

3%

of

the

fixed

allocation

percentages.

Portfolio

Review

The

Fund’s

performance

can

be

attributed

largely

to

maintaining

a

relatively

static

allocation

among

domestic

and

foreign

equities,

fixed

income

securities,

and

short-

term

investments

and

other

net

assets,

and

to

the

actual

performance

of

the

selected

underlying

funds.

During

the

period

under

review,

Franklin

Growth

Fund

–

Class

R6

and

Franklin

Growth

Opportunities

Fund

–

Class

R6

outperformed

the

S&P

500,

while

Franklin

Mutual

Shares

Fund

–

Class

R6

underperformed

the

index.

Templeton

Growth

Fund

–

Class

R6

underperformed

the

MSCI

World

Index.

Thank

you

for

your

continued

participation

in

Franklin

Corefolio

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

75.1%

Foreign

Equity

24.9%

Short-Term

Investments

&

Other

Net

Assets

—%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

20

.

Performance

Summary

as

of

December

31,

2020

Franklin

Corefolio

Allocation

Fund

5

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

1-Year

+18.28%

+11.75%

5-Year

+78.64%

+11.04%

10-Year

+174.44%

+10.00%

Advisor

1-Year

+18.59%

+18.59%

5-Year

+80.98%

+12.60%

10-Year

+181.73%

+10.91%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Corefolio

Allocation

Fund

Performance

Summary

6

franklintempleton.com

Annual

Report

See

page

7

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/11–12/31/20

)

Advisor

Class

(1/1/11–12/31/20

)

Franklin

Corefolio

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

the

Fund

invests

in

underlying

funds

that

may

engage

in

a

variety

of

investment

strat-

egies

involving

certain

risks,

this

fund

of

funds

may

be

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Growth

stock

prices

reflect

projections

of

future

earnings

or

reve-

nues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility,

and

political

or

social

instability;

risks

that

are

heightened

in

developing

countries.

The

Fund

includes

investments

in

specialized

industry

sectors

such

as

the

technology

sector,

which

has

been

among

the

most

volatile

in

the

market.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Source:

Morningstar.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

The

MSCI

World

Index

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

markets.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.1781

$0.0013

$1.3761

$1.5555

C

$0.0298

$0.0013

$1.3761

$1.4072

R

$0.1295

$0.0013

$1.3761

$1.5069

R6

$0.2448

$0.0013

$1.3761

$1.6222

Advisor

$0.2276

$0.0013

$1.3761

$1.6050

Total

Annual

Operating

Expenses

5

Share

Class

A

1.06%

Advisor

0.81%

Your

Fund’s

Expenses

Franklin

Corefolio

Allocation

Fund

8

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,233.60

$2.40

$1,022.98

$2.18

0.43%

C

$1,000

$1,229.20

$6.60

$1,019.22

$5.98

1.18%

R

$1,000

$1,231.90

$3.74

$1,021.78

$3.39

0.67%

R6

$1,000

$1,235.90

$0.47

$1,024.72

$0.42

0.08%

Advisor

$1,000

$1,235.60

$1.00

$1,024.24

$0.91

0.18%

9

franklintempleton.com

Annual

Report

Franklin

Founding

Funds

Allocation

Fund

This

annual

report

for

Franklin

Founding

Funds

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2020.

As

previously

communicated,

effective

February

1,

2021,

the

Fund

changed

its

name

to

Franklin

Global

Allocation

Fund,

repositioned

to

become

a

directly

managed

allocation

fund

and

entered

into

a

new

investment

management

agreement

with

Franklin

Advisers,

Inc.

Additionally,

the

Fund

modified

its

principal

investment

strategies

and

goals.

Your

Fund’s

Goal

and

Main

Investments

The

Fund’s

principal

investment

goal

is

capital

appreciation,

with

a

secondary

goal

of

income.

The

Fund

invests

in

an

equally

weighted

combination

of

Franklin

Income

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+1.55%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

benchmarks,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+18.40%

total

return

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+16.50%

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

11

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

The

Fund

invests

its

assets

in

an

equally

weighted

combination

of

Franklin

Income

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

These

underlying

funds,

in

turn,

invest

primarily

in

U.S.

and

foreign

equity

securities

and,

to

a

lesser

extent,

fixed

income

and

money

market

securities.

As

market

conditions

affect

the

underlying

funds,

we

rebalance

the

Fund’s

allocations

to

maintain

the

predetermined

equal

weightings

of

approximately

33%

of

total

net

assets

in

each

underlying

fund

whenever

the

actual

allocations

exceed

plus

or

minus

3%

of

the

fixed

allocation

percentages.

Portfolio

Review

The

Fund’s

performance

can

be

attributed

largely

to

maintaining

a

relatively

static

allocation

among

domestic

and

foreign

equities,

fixed

income

securities,

and

short-

term

investments

and

other

net

assets,

and

to

the

actual

performance

of

the

selected

underlying

funds.

During

the

period

under

review,

Franklin

Income

Fund

–

Class

R6

and

Franklin

Mutual

Shares

Fund

–

Class

R6

underperformed

the

S&P

500.

Templeton

Growth

Fund

–

Class

R6

underperformed

the

MSCI

World

Index.

Thank

you

for

your

continued

participation

in

Franklin

Founding

Funds

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Co-Lead

Portfolio

Manager

May

Tong,

CFA

Co-Lead

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

Portfolio

Composition*

12/31/20

%

of

Total

Net

Assets

Domestic

Equity

33.7%

Foreign

Equity

33.3%

Domestic

Hybrid

33.1%

Short-Term

Investments

&

Other

Net

Assets

(0.1)%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

20

.

Franklin

Founding

Funds

Allocation

Fund

10

franklintempleton.com

Annual

Report

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

December

31,

2020

Franklin

Founding

Funds

Allocation

Fund

11

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/20

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

1-Year

+1.55%

-4.04%

5-Year

+36.19%

+5.17%

10-Year

+86.14%

+5.81%

Advisor

1-Year

+1.79%

+1.79%

5-Year

+37.96%

+6.65%

10-Year

+90.70%

+6.67%

See

page

13

for

Performance

Summary

footnotes.

Franklin

Founding

Funds

Allocation

Fund

Performance

Summary

12

franklintempleton.com

Annual

Report

See

page

13

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/11–12/31/20

)

Advisor

Class

(1/1/11–12/31/20

)

Franklin

Founding

Funds

Allocation

Fund

Performance

Summary

13

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

the

Fund

invests

in

underlying

funds

that

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

these

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bonds

are

affected

by

changes

in

interest

rates

and

the

creditworthiness

of

their

issuers.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Higher-yielding,

lower-rated

corporate

bonds

entail

a

greater

degree

of

credit

risk

compared

to

investment-grade

securities.

Value

se-

curities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

that

are

heightened

in

developing

countries.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investments

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Source:

Morningstar.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

The

MSCI

World

Index

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

equity

market

performance

in

global

developed

markets.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/20–12/31/20)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4673

$0.0666

$0.4731

$1.0070

C

$0.3608

$0.0666

$0.4731

$0.9005

R

$0.4341

$0.0666

$0.4731

$0.9738

R6

$0.5146

$0.0666

$0.4731

$1.0543

Advisor

$0.4993

$0.0666

$0.4731

$1.0390

Total

Annual

Operating

Expenses

5

Share

Class

A

1.01%

Advisor

0.76%

Your

Fund’s

Expenses

Franklin

Founding

Funds

Allocation

Fund

14

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/20

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

Ending

Account

Value

12/31/20

Expenses

Paid

During

Period

7/1/20–12/31/20

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,191.60

$2.40

$1,022.95

$2.21

0.44%

C

$1,000

$1,187.00

$6.52

$1,019.18

$6.02

1.19%

R

$1,000

$1,189.30

$3.75

$1,021.71

$3.46

0.68%

R6

$1,000

$1,193.40

$0.39

$1,024.78

$0.36

0.07%

Advisor

$1,000

$1,192.60

$1.03

$1,024.20

$0.95

0.19%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.04

$17.32

$19.68

$17.06

$16.80

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.12

0.20

0.17

0.17

0.14

Net

realized

and

unrealized

gains

(losses)

...........

3.32

4.17

(1.51)

3.23

1.07

Total

from

investment

operations

....................

3.44

4.37

(1.34)

3.40

1.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.18)

(0.20)

(0.15)

(0.18)

(0.17)

Net

realized

gains

.............................

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...............................

(1.56)

(1.65)

(1.02)

(0.78)

(0.95)

Net

asset

value,

end

of

year

.......................

$21.92

$20.04

$17.32

$19.68

$17.06

Total

return

d

...................................

18.28%

25.79%

(7.10)%

20.07%

7.64%

Ratios

to

average

net

assets

Expenses

e,f

....................................

0.43%

0.44%

0.41%

0.47%

0.45%

Net

investment

income

c

...........................

0.64%

1.02%

0.76%

0.90%

0.83%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$812,250

$717,806

$593,983

$579,707

$507,530

Portfolio

turnover

rate

............................

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.76

$17.10

$19.43

$16.85

$16.61

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

....................

(0.03)

0.04

(0.10)

0.02

0.01

Net

realized

and

unrealized

gains

(losses)

...........

3.25

4.12

(1.35)

3.19

1.05

Total

from

investment

operations

....................

3.22

4.16

(1.45)

3.21

1.06

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.03)

(0.05)

(0.01)

(0.03)

(0.04)

Net

realized

gains

.............................

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...............................

(1.41)

(1.50)

(0.88)

(0.63)

(0.82)

Net

asset

value,

end

of

year

.......................

$21.57

$19.76

$17.10

$19.43

$16.85

Total

return

d

...................................

17.41%

24.83%

(7.76)%

19.20%

6.82%

Ratios

to

average

net

assets

Expenses

e,f

....................................

1.18%

1.19%

1.16%

1.22%

1.20%

Net

investment

income

(loss)

c

......................

(0.18)%

0.27%

0.01%

0.15%

0.08%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$73,513

$75,745

$72,124

$170,218

$160,729

Portfolio

turnover

rate

............................

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.07

$17.34

$19.68

$17.06

$16.81

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.07

0.14

0.10

0.12

0.10

Net

realized

and

unrealized

gains

(losses)

...........

3.32

4.19

(1.48)

3.23

1.06

Total

from

investment

operations

....................

3.39

4.33

(1.38)

3.35

1.16

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.13)

(0.15)

(0.09)

(0.13)

(0.13)

Net

realized

gains

.............................

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...............................

(1.51)

(1.60)

(0.96)

(0.73)

(0.91)

Net

asset

value,

end

of

year

.......................

$21.95

$20.07

$17.34

$19.68

$17.06

Total

return

....................................

18.00%

25.51%

(7.30)%

19.79%

7.33%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.67%

0.67%

0.65%

0.72%

0.70%

Net

investment

income

c

...........................

0.38%

0.79%

0.52%

0.65%

0.58%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,498

$1,387

$1,412

$1,629

$1,461

Portfolio

turnover

rate

............................

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

in

a

Year

Ended

December

31,

2020

2019

2018

2017

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

................................

$20.07

$17.34

$19.67

$19.18

Income

from

investment

operations

b

:

Net

investment

income

c

,

d

.....................................

0.21

0.70

0.27

0.26

Net

realized

and

unrealized

gains

(losses)

........................

3.31

3.75

(1.52)

0.73

Total

from

investment

operations

.................................

3.52

4.45

(1.25)

0.99

Less

distributions

from:

Net

investment

income

.......................................

(0.24)

(0.27)

(0.21)

(0.25)

Net

realized

gains

..........................................

(1.38)

(1.45)

(0.87)

(0.25)

Total

distributions

............................................

(1.62)

(1.72)

(1.08)

(0.50)

Net

asset

value,

end

of

year

....................................

$21.97

$20.07

$17.34

$19.67

Total

return

e

................................................

18.69%

26.24%

(6.78)%

5.28%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..................

0.13%

0.12%

0.23%

3.47%

Expenses

net

of

waiver

and

payments

by

affiliates

g

...................

0.09%

0.09%

0.09%

0.08%

Net

investment

income

d

........................................

1.05%

1.37%

1.08%

1.29%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..................................

$4,393

$3,385

$75

$5

Portfolio

turnover

rate

.........................................

9.29%

2.12%

3.94%

0.71%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.08

$17.35

$19.71

$17.08

$16.82

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.17

0.27

0.24

0.25

0.21

Net

realized

and

unrealized

gains

(losses)

...........

3.34

4.16

(1.53)

3.21

1.04

Total

from

investment

operations

....................

3.51

4.43

(1.29)

3.46

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.23)

(0.25)

(0.20)

(0.23)

(0.21)

Net

realized

gains

.............................

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...............................

(1.61)

(1.70)

(1.07)

(0.83)

(0.99)

Net

asset

value,

end

of

year

.......................

$21.98

$20.08

$17.35

$19.71

$17.08

Total

return

....................................

18.59%

26.10%

(6.85)%

20.40%

7.90%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.18%

0.19%

0.16%

0.22%

0.20%

Net

investment

income

c

...........................

0.90%

1.27%

1.01%

1.15%

1.08%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$61,166

$52,512

$40,399

$33,607

$22,721

Portfolio

turnover

rate

............................

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

100.0%

Domestic

Equity

75.1%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,773,578

$

240,674,595

a,b

Franklin

Growth

Opportunities

Fund,

Class

R6

.............................

4,002,441

240,066,441

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

9,276,850

234,889,839

715,630,875

Foreign

Equity

24.9%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

10,047,224

237,214,959

Total

Investments

In

Underlying

Funds

(Cost

$614,700,320)

......................

952,845,834

a

a

a

a

a

Total

Investments

(Cost

$614,700,320)

100.0%

..................................

$952,845,834

Other

Assets,

less

Liabilities

0.0%

.............................................

(26,304)

Net

Assets

100.0%

...........................................................

$952,819,530

See

Abbreviations

on

page

38

.

a

See

Note

3(e)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Founding

Funds

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

74226

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.43

$12.63

$14.54

$13.47

$12.14

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.34

0.42

0.41

0.40

0.36

Net

realized

and

unrealized

gains

(losses)

...........

(0.27)

1.82

(1.82)

1.10

1.26

Total

from

investment

operations

....................

0.07

2.24

(1.41)

1.50

1.62

Less

distributions

from:

Net

investment

income

..........................

(0.47)

(0.44)

(0.50)

(0.43)

(0.29)

Net

realized

gains

.............................

(0.54)

—

—

—

—

Total

distributions

...............................

(1.01)

(0.44)

(0.50)

(0.43)

(0.29)

Net

asset

value,

end

of

year

.......................

$13.49

$14.43

$12.63

$14.54

$13.47

Total

return

d

...................................

1.55%

17.81%

(9.82)%

11.20%

13.52%

Ratios

to

average

net

assets

Expenses

e,f

....................................

0.42%

0.40%

0.39%

0.43%

0.42%

Net

investment

income

c

...........................

2.73%

2.99%

2.66%

2.81%

2.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,952,287

$3,397,662

$3,209,751

$3,300,005

$3,310,397

Portfolio

turnover

rate

............................

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.61%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Founding

Funds

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

nii

f

FR

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.33

$12.54

$14.33

$13.27

$11.96

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.23

0.29

0.18

0.28

0.26

Net

realized

and

unrealized

gains

(losses)

...........

(0.26)

1.82

(1.67)

1.10

1.25

Total

from

investment

operations

....................

(0.03)

2.11

(1.49)

1.38

1.51

Less

distributions

from:

Net

investment

income

..........................

(0.36)

(0.32)

(0.30)

(0.32)

(0.20)

Net

realized

gains

.............................

(0.54)

—

—

—

—

Total

distributions

...............................

(0.90)

(0.32)

(0.30)

(0.32)

(0.20)

Net

asset

value,

end

of

year

.......................

$13.40

$14.33

$12.54

$14.33

$13.27

Total

return

d

...................................

0.79%

16.91%

(10.54)%

10.43%

12.71%

Ratios

to

average

net

assets

Expenses

e,f

....................................

1.17%

1.15%

1.14%

1.18%

1.17%

Net

investment

income

c

...........................

1.85%

2.24%

1.91%

2.06%

2.12%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$201,506

$300,699

$362,833

$1,261,997

$1,402,623

Portfolio

turnover

rate

............................

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.61%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Founding

Funds

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.48

$12.68

$14.58

$13.49

$12.16

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.31

0.37

0.34

0.34

0.33

Net

realized

and

unrealized

gains

(losses)

...........

(0.28)

1.83

(1.78)

1.13

1.26

Total

from

investment

operations

....................

0.03

2.20

(1.44)

1.47

1.59

Less

distributions

from:

Net

investment

income

..........................

(0.43)

(0.40)

(0.46)

(0.38)

(0.26)

Net

realized

gains

.............................

(0.54)

—

—

—

—

Total

distributions

...............................

(0.97)

(0.40)

(0.46)

(0.38)

(0.26)

Net

asset

value,

end

of

year

.......................

$13.54

$14.48

$12.68

$14.58

$13.49

Total

return

....................................

1.28%

17.44%

(10.01)%

10.97%

13.22%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.67%

0.65%

0.64%

0.68%

0.67%

Net

investment

income

c

...........................

2.47%

2.74%

2.41%

2.56%

2.62%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$4,975

$5,699

$5,513

$7,843

$10,776

Portfolio

turnover

rate

............................

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.61%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Founding

Funds

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

Year

Ended

December

31,

2020

2019

2018

2017

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

................................

$14.81

$12.95

$14.62

$14.46

Income

from

investment

operations

b

:

Net

investment

income

c,d

.....................................

0.96

0.46

0.37

0.30

Net

realized

and

unrealized

gains

(losses)

........................

(0.83)

1.88

(1.75)

0.06

Total

from

investment

operations

.................................

0.13

2.34

(1.38)

0.36

Less

distributions

from:

Net

investment

income

.......................................

(0.51)

(0.48)

(0.29)

(0.20)

Net

realized

gains

..........................................

(0.54)

—

—

—

Total

distributions

............................................

(1.05)

(0.48)

(0.29)

(0.20)

Net

asset

value,

end

of

year

....................................

$13.89

$14.81

$12.95

$14.62

Total

return

e

................................................

1.94%

18.18%

(9.57)%

2.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..................

0.21%

3.23%

0.08%

4.28%

Expenses

net

of

waiver

and

payments

by

affiliates

g

...................

0.07%

0.07%

0.07%

0.06%

Net

investment

income

d

........................................

7.33%

3.32%

2.98%

3.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..................................

$631

$5

$4

$5

Portfolio

turnover

rate

.........................................

4.07%

0.29%

0.73%

0.48%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.61%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Founding

Funds

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.52

$12.71

$14.63

$13.54

$12.20

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.37

0.45

0.43

0.46

0.40

Net

realized

and

unrealized

gains

(losses)

...........

(0.27)

1.83

(1.81)

1.10

1.26

Total

from

investment

operations

....................

0.10

2.28

(1.38)

1.56

1.66

Less

distributions

from:

Net

investment

income

..........................

(0.50)

(0.47)

(0.54)

(0.47)

(0.32)

Net

realized

gains

.............................

(0.54)

—

—

—

—

Total

distributions

...............................

(1.04)

(0.47)

(0.54)

(0.47)

(0.32)

Net

asset

value,

end

of

year

.......................

$13.58

$14.52

$12.71

$14.63

$13.54

Total

return

....................................

1.79%

18.06%

(9.60)%

11.58%

13.82%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.17%

0.15%

0.14%

0.18%

0.17%

Net

investment

income

c

...........................

2.89%

3.24%

2.91%

3.06%

3.12%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$123,049

$156,275

$145,522

$174,219

$131,368

Portfolio

turnover

rate

............................

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.61%

for

the

year

ended

December

31,

2020.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2020

Franklin

Founding

Funds

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

100.1%

Domestic

Equity

33.7%

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

43,590,245

$

1,103,704,998

Domestic

Hybrid

33.1%

a

Franklin

Income

Fund,

Class

R6

........................................

476,817,126

1,087,143,048

Foreign

Equity

33.3%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

46,307,289

1,093,315,104

Total

Investments

In

Underlying

Funds

(Cost

$3,374,129,034)

....................

3,284,163,150

a

a

a

a

a

Total

Investments

(Cost

$3,374,129,034)

100.1%

................................

$3,284,163,150

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(1,715,150)

Net

Assets

100.0%

...........................................................

$3,282,448,000

a

See

Note

3

(

e

)

regarding

investments

in

FT

Underlying

Funds.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2020

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Non-controlled

affiliates

(Note

3

e

)

.......................................

614,700,320

3,374,129,034

Value

-

Non-controlled

affiliates

(Note

3

e

)

......................................

952,845,834

3,284,163,150

Receivables:

Investment

securities

sold

..................................................

617,457

5,257,594

Capital

shares

sold

.......................................................

833,695

2,127,950

Other

assets

.............................................................

106

457

Total

assets

.........................................................

954,297,092

3,291,549,151

Liabilities:

Payables:

Capital

shares

redeemed

..................................................

718,506

3,684,362

Administrative

fees

.......................................................

16,778

57,544

Distribution

fees

.........................................................

230,533

794,744

Transfer

agent

fees

.......................................................

122,058

620,359

Funds

advanced

by

custodian

................................................

343,348

3,841,000

Accrued

expenses

and

other

liabilities

..........................................

46,339

103,142

Total

liabilities

........................................................

1,477,562

9,101,151

Net

assets,

at

value

................................................

$952,819,530

$3,282,448,000

Net

assets

consist

of:

Paid-in

capital

............................................................

$592,125,964

$3,408,174,662

Total

distributable

earnings

(losses)

............................................

360,693,566

(125,726,662)

Net

assets,

at

value

................................................

$952,819,530

$3,282,448,000

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Class

A:

Net

assets,

at

value

......................................................

$812,249,766

$2,952,287,010

Shares

outstanding

.......................................................

37,054,563

218,889,035

Net

asset

value

per

share

a

.................................................

$21.92

$13.49

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

...............

$23.20

$14.28

Class

C:

Net

assets,

at

value

......................................................

$73,512,914

$201,505,778

Shares

outstanding

.......................................................

3,408,372

15,038,702

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$21.57

$13.40

Class

R:

Net

assets,

at

value

......................................................

$1,497,651

$4,974,677

Shares

outstanding

.......................................................

68,236

367,375

Net

asset

value

and

maximum

offering

price

per

share

............................

$21.95

$13.54

Class

R6:

Net

assets,

at

value

......................................................

$4,393,078

$631,106

Shares

outstanding

.......................................................

199,975

45,446

Net

asset

value

and

maximum

offering

price

per

share

............................

$21.97

$13.89

Advisor

Class:

Net

assets,

at

value

......................................................

$61,166,121

$123,049,429

Shares

outstanding

.......................................................

2,783,166

9,061,592

Net

asset

value

and

maximum

offering

price

per

share

............................

$21.98

$13.58

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

December

31,

2020

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

e

)

............................................

$8,720,910

$100,215,528

Total

investment

income

..................................................

8,720,910

100,215,528

Expenses:

Administrative

fees

(Note

3

a

)

.................................................

245,758

958,013

Distribution

fees:

(Note

3b

)

    Class

A

...............................................................

1,743,138

7,095,464

    Class

C

...............................................................

670,767

2,233,772

    Class

R

...............................................................

6,400

23,776

Transfer

agent

fees:

(Note

3d

)

    Class

A

...............................................................

856,828

3,552,601

    Class

C

...............................................................

82,290

280,020

    Class

R

...............................................................

1,616

5,991

    Class

R6

..............................................................

2,449

136

    Advisor

Class

...........................................................

62,102

160,004

Reports

to

shareholders

.....................................................

50,039

169,694

Registration

and

filing

fees

...................................................

95,905

128,343

Professional

fees

..........................................................

43,538

166,419

Trustees'

fees

and

expenses

.................................................

6,743

27,907

Other

...................................................................

16,186

51,788

Total

expenses

........................................................

3,883,759

14,853,928

Expenses

waived/paid

by

affiliates

(Note

3

e

and

3

f

)

.............................

(1,494)

(260)

Net

expenses

........................................................

3,882,265

14,853,668

Net

investment

income

...............................................

4,838,645

85,361,860

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Non-controlled

affiliates

(Note

3

e

)

..........................................

22,579,065

(42,824,335)

Capital

gain

distributions

from

management

investment

companies:

Non-controlled

affiliates

(Note

3e)

33,077,935

18,873,208

Net

realized

gain

(loss)

.................................................

55,657,000

(23,951,127)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Non-controlled

affiliates

(Note

3

e

)

..........................................

83,876,068

(80,637,415)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

83,876,068

(80,637,415)

Net

realized

and

unrealized

gain

(loss)

...........................................

139,533,068

(104,588,542)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................

$144,371,713

$(19,226,682)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Year

Ended

December

31,

2020

Year

Ended

December

31,

2019

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$4,838,645

$7,711,749

$85,361,860

$113,175,545

Net

realized

gain

(loss)

............

55,657,000

55,523,294

(23,951,127)

140,199,793

Net

change

in

unrealized

appreciation

(depreciation)

.................

83,876,068

115,385,770

(80,637,415)

371,362,001

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

144,371,713

178,620,813

(19,226,682)

624,737,339

Distributions

to

shareholders:

Class

A

........................

(55,174,587)

(56,514,085)

(220,704,366)

(102,914,076)

Class

C

........................

(4,778,679)

(5,786,775)

(15,403,864)

(7,191,749)

Class

R

........................

(100,418)

(109,031)

(353,284)

(161,302)

Class

R6

.......................

(305,025)

(165,432)

(13,071)

(256)

Advisor

Class

...................

(4,203,401)

(4,068,534)

(10,088,728)

(5,065,959)

Total

distributions

to

shareholders

.....

(64,562,110)

(66,643,857)

(246,563,313)

(115,333,342)

Capital

share

transactions:

(Note

2

)

Class

A

........................

25,347,265

29,666,701

(218,056,745)

(253,837,338)

Class

C

........................

(7,617,338)

(7,382,046)

(74,351,275)

(108,626,694)

Class

R

........................

(25,515)

(237,087)

(332,749)

(559,910)

Class

R6

.......................

614,285

3,207,157

615,942

(424)

Advisor

Class

...................

3,855,066

5,611,518

(19,978,078)

(9,661,948)

Total

capital

share

transactions

.......

22,173,763

30,866,243

(312,102,905)

(372,686,314)

Net

increase

(decrease)

in

net

assets

.....................

101,983,366

142,843,199

(577,892,900)

136,717,683

Net

assets:

Beginning

of

year

..................

850,836,164

707,992,965

3,860,340,900

3,723,623,217

End

of

year

......................

$952,819,530

$850,836,164

$3,282,448,000

$3,860,340,900

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

30

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twenty-four

separate

funds, two

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Funds

invest

in

affiliated

mutual

funds

managed

by

Franklin

Templeton

(Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

b.

Income

Taxes

It

is

each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

Each Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2020,

each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

gain

distributions

by

Underlying

Funds

are

recorded

on

the

ex-dividend

date.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Funds

may

own

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

d.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

e.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

December

31,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds’

shares

were

as

follows:

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2020

Shares

sold

a

...................................

4,288,799

$83,034,614

10,964,979

$137,069,304

Shares

issued

in

reinvestment

of

distributions

..........

2,771,931

54,092,044

17,872,044

211,606,921

Shares

redeemed

...............................

(5,827,065)

(111,779,393)

(45,445,000)

(566,732,970)

Net

increase

(decrease)

..........................

1,233,665

$25,347,265

(16,607,977)

$(218,056,745)

Year

ended

December

31,

2019

Shares

sold

a

...................................

3,752,082

$72,858,466

12,695,529

$175,645,857

Shares

issued

in

reinvestment

of

distributions

..........

2,861,103

55,420,177

6,993,175

98,632,685

Shares

redeemed

...............................

(5,084,593)

(98,611,942)

(38,238,202)

(528,115,880)

Net

increase

(decrease)

..........................

1,528,592

$29,666,701

(18,549,498)

$(253,837,338)

Class

C

Class

C

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

622,774

$11,752,863

1,642,788

$20,362,129

Shares

issued

in

reinvestment

of

distributions

..........

248,589

4,702,959

1,288,035

15,022,129

Shares

redeemed

a

..............................

(1,296,579)

(24,073,160)

(8,878,491)

(109,735,533)

Net

increase

(decrease)

..........................

(425,216)

$(7,617,338)

(5,947,668)

$(74,351,275)

Year

ended

December

31,

2019

Shares

sold

...................................

676,110

$12,900,947

2,055,351

$28,136,207

Shares

issued

in

reinvestment

of

distributions

..........

297,765

5,652,670

497,845

6,965,116

Shares

redeemed

a

..............................

(1,358,405)

(25,935,663)

(10,494,806)

(143,728,017)

Net

increase

(decrease)

..........................

(384,530)

$(7,382,046)

(7,941,610)

$(108,626,694)

Class

R

Class

R

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

6,017

$113,110

29,462

$373,841

Shares

issued

in

reinvestment

of

distributions

..........

5,167

100,418

29,366

348,927

Shares

redeemed

...............................

(12,069)

(239,043)

(85,098)

(1,055,517)

Net

increase

(decrease)

..........................

(885)

$(25,515)

(26,270)

$(332,749)

Year

ended

December

31,

2019

Shares

sold

...................................

3,112

$60,934

32,461

$449,584

Shares

issued

in

reinvestment

of

distributions

..........

5,635

109,031

11,274

159,460

Shares

redeemed

...............................

(21,072)

(407,052)

(84,995)

(1,168,954)

Net

increase

(decrease)

..........................

(12,325)

$(237,087)

(41,260)

$(559,910)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

44,395

$864,832

46,224

$629,554

Shares

issued

in

reinvestment

of

distributions

..........

15,272

300,242

798

11,049

Shares

redeemed

...............................

(28,364)

(550,789)

(1,922)

(24,661)

Net

increase

(decrease)

..........................

31,303

$614,285

45,100

$615,942

Year

ended

December

31,

2019

Shares

sold

...................................

177,781

$3,471,091

469

$6,585

Shares

issued

in

reinvestment

of

distributions

..........

8,382

165,160

6

90

Shares

redeemed

...............................

(21,826)

(429,094)

(475)

(7,099)

Net

increase

(decrease)

..........................

164,337

$3,207,157

—

$(424)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2020

Shares

sold

...................................

652,582

$12,962,590

2,270,973

$30,048,973

Shares

issued

in

reinvestment

of

distributions

..........

187,893

3,699,087

757,696

9,024,083

Shares

redeemed

...............................

(672,367)

(12,806,611)

(4,732,163)

(59,051,134)

Net

increase

(decrease)

..........................

168,108

$3,855,066

(1,703,494)

$(19,978,078)

Year

ended

December

31,

2019

Shares

sold

...................................

670,304

$12,943,164

2,558,679

$35,435,253

Shares

issued

in

reinvestment

of

distributions

..........

182,685

3,555,865

316,923

4,498,812

Shares

redeemed

...............................

(566,172)

(10,887,511)

(3,560,226)

(49,596,013)

Net

increase

(decrease)

..........................

286,817

$5,611,518

(684,624)

$(9,661,948)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

a.

Administrative

Fees

The

Funds

pay

an

administrative

fee

to

FT

Services

of

0.03%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

administrative

services

including

monitoring

and

rebalancing

the

percentage

of

each

Fund's

investment

in

the

Underlying

Funds.

b.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

c.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

d.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

year

ended

December

31,

2020,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$113,026

$149,991

CDSC

retained

...........................

$4,878

$18,419

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

e.

Investments

in

Underlying

Funds

The Funds

invest

in

Underlying

Funds

which

are

managed

by

Franklin

Advisers,

Inc.

(Advisers),

an

affiliate

of

FT

Services

or

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund. 

Investments

in

Underlying

Funds

for

the

year

ended

December

31,

2020,

were

as

follows:

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Transfer

agent

fees

........................

$625,416

$1,756,378

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Corefolio

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Growth

Fund,

Class

R6

.

$

214,690,054

$

18,144,415

$

(30,783,976)

$

14,897,994

$

23,726,108

$

240,674,595

1,773,578

$

18,144,413

a

Franklin

Growth

Opportunities

Fund,

Class

R6

............

207,896,880

11,941,618

(46,059,257)

8,728,016

57,559,184

240,066,441

4,002,441

11,941,619

a

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

214,131,158

34,065,952

(2,718,762)

(823,769)

(9,764,740)

234,889,839

9,276,850

8,703,040

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

184

27,101,562

(27,101,746)

—

—

—

b

–

947

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

213,524,625

12,090,690

(532,696)

(223,176)

12,355,516

237,214,959

10,047,224

3,008,826

Total

Non-Controlled

Affiliates

$850,242,901

$103,344,237

$(107,196,437)

$

22,579,065

$

83,876,068

$952,845,834

$

41,798,845

Total

Affiliated

Securities

....

$850,242,901

$103,344,237

$(107,196,437)

$22,579,065

$83,876,068

$952,845,834

$41,798,845

Franklin

Founding

Funds

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Income

Fund,

Class

R6

.

1,280,803,963

62,599,970

(212,975,299)

(23,427,167)

(19,858,419)

1,087,143,048

476,817,126

62,599,968

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

1,292,229,850

53,724,826

(137,129,839)

4,695,364

(109,815,203)

1,103,704,998

43,590,245

42,338,529

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

152

38,199,811

(38,199,963)

—

—

—

b

–

618

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

1,288,961,776

14,149,621

(234,739,968)

(24,092,532)

49,036,207

1,093,315,104

46,307,289

14,149,621

Total

Non-Controlled

Affiliates

$3,861,995,741

$168,674,228

$(623,045,069)

(42,824,335)

(80,637,415)

$3,284,163,150

119,088,736

Total

Affiliated

Securities

....

$3,861,995,741

$168,674,228

$(623,045,069)

$(42,824,335)

$(80,637,415)

$3,284,163,150

$119,088,736

3.

Transactions

with

Affiliates

(continued)

d.

Transfer

Agent

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2021.

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2020

and

December

31,

2019,

was

as

follows:

At

December

31,

2020,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statement

of

Operations.

b

As

of

December

31,

2020,

no

longer

held

by

the

fund.

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

—

$

10,685,693

Long

term

.............................

—

15,988,532

Total

capital

loss

carryforwards

............

$—

$26,674,225

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

2020

2019

2020

2019

Distributions

paid

from:

Ordinary

income

........................

$7,202,185

$11,702,399

$129,605,860

$115,333,342

Long

term

capital

gain

....................

57,359,925

54,941,458

116,957,453

—

$64,562,110

$66,643,857

$246,563,313

$115,333,342

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

short

term

capital

gains

distributions

from

Underlying

Funds

and

wash

sales.

The

Franklin

Corefolio

Allocation

Fund

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

net

investment

income

and

realized

capital

gains.

5.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

(excluding

short

term

securities)

for

the

year

ended

December

31,

2020,

were

as

follows:

6.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

7.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matured

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

5,

2021,

the

Borrowers,

renewed

the

Global

Credit

Facility

for

a

one

year

term,

maturing

February

4,

2022,

for

a

total

of

$2.675

billion.

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

a

a

a

Cost

of

investments

.......................

$620,724,428

$3,384,400,158

Unrealized

appreciation

.....................

$338,145,514

$191,083

Unrealized

depreciation

.....................

(6,024,108)

(100,428,091)

Net

unrealized

appreciation

(depreciation)

.......

$332,121,406

$(100,237,008)

Distributable

earnings:

Undistributed

ordinary

income

................

$114,903

$1,184,569

Undistributed

long

term

capital

gains

...........

28,457,260

—

Total

distributable

earnings

..................

$28,572,163

$1,184,569

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

Purchases

..............................

$76,242,675

$130,474,415

Sales

..................................

$80,094,690

$584,845,103

4.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

fiscal

year,

the

Funds

did

not

use

the

Global

Credit

Facility.

8.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

December

31,

2020,

all

of

the

Funds'

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

For

detailed

categories,

see

the

accompanying

Statements

of

Investments.

9.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

10.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

except

for

the

following:

On

January

21st,

2021,

as

approved

by

shareholders,

the

Franklin

Founding

Funds

Allocation

Fund

(Fund)

repositioned

to

a

direct

investment

fund.

The

Fund

entered

into

an

investment

management

arrangement

with

Franklin

Advisers,

Inc.

(Advisers),

changed

the

name

of

the

Fund

to

“Franklin

Global

Allocation

Fund”

and

modified

the

Fund’s

principal

investment

strategies.

The

services

provided

by

Advisers

to

the

Fund

include

investment

advisory

services

as

well

as

administrative

services,

for

which

the

Fund

will

pay

an

investment

management

fee

based

on

a

tiered

schedule.

7.

Credit

Facility

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

39

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Corefolio

Allocation

Fund

and

Franklin

Global

Allocation

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

statements

of

investments,

of

Franklin

Corefolio

Allocation

Fund

and

Franklin

Founding

Funds

Allocation

Fund

(two

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2020,

the

related

statements

of

operations

for

the

year

ended

December

31,

2020,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2020,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2020,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2020

and

each

of

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2020

by

correspondence

with

the

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

19,

2021

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

40

franklintempleton.com

Annual

Report

Under

Section

852(b)(3)(C)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

long

term

capital

gain

dividends

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

871(k)(2)(C)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

short

term

capital

gain

dividends

for

purposes

of

the

tax

imposed

under

Section

871(a)(1)

(A)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

854(b)(1)(A)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

following

percentage

amounts

of

the

ordinary

income

dividends

as

income

qualifying

for

the

dividends

received

deduction

for

the

fiscal

year

ended

December

31,

2020:

Under

Section

854(b)(1)(B)

of

the

Internal

Revenue

Code,

the

Funds

hereby

report

the

maximum

amount

allowable

but

no

less

than

the

following

amounts

as

qualified

dividends

for

purposes

of

the

maximum

rate

under

Section

1(h)(11)

of

the

Internal

Revenue

Code

for

the

fiscal

year

ended

December

31,

2020:

Distributions,

including

qualified

dividend

income,

paid

during

calendar

year

2020

will

be

reported

to

shareholders

on

Form

1099-DIV

by

mid-February

2021.

Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

individual

income

tax

returns.

During

the

fiscal

year

ended

December

31,

2020,

the

Funds,

qualified

fund

of

funds

under

Section

852(g)(2)

of

Internal

Revenue

Code,

received

an

allocation

of

foreign

taxes

paid

from

one

or

more

of

their

underlying

funds.

As

shown

in

the

table

below,

the

Funds

hereby

report

to

shareholders

the

foreign

source

income

and

foreign

taxes

paid

by

underlying

funds,

pursuant

to

Section

853

of

the

Internal

Revenue

Code.

This

written

statement

will

allow

shareholders

of

record

on

December

29,

2020,

to

treat

their

proportionate

share

of

foreign

taxes

paid

by

the

underlying

funds

as

having

been

paid

directly

by

them.

The

shareholder

shall

consider

these

amounts

as

foreign

taxes

paid

in

the

tax

year

in

which

they

receive

the

Fund

distribution.

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

$60,274,087

$116,957,453

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

$51,130

$16,544,729

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

99.13%

28.76%

Franklin

Corefolio

Allocation

Fund

Franklin

Founding

Funds

Allocation

Fund

$9,966,496

$59,368,613

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

41

franklintempleton.com

Annual

Report

1.

Qualified

dividends

are

taxed

at

reduced

long

term

capital

gains

tax

rates.

In

determining

the

amount

of

foreign

tax

credit

that

may

be

applied

against

the

U.S.

tax

liability

of

individuals

receiving

foreign

source

qualified

dividends,

adjustments

may

be

required

to

the

foreign

tax

credit

limitation

calculation

to

reflect

the

rate

differential

applicable

to

such

dividend

income.

The

rules

however

permit

certain

individuals

to

elect

not

to

apply

the

rate

differential

adjustments

for

capital

gains

and/or

dividends

for

any

taxable

year.

Please

consult

your

tax

advisor

and

the

instructions

to

Form

1116

for

more

information.

The

following

table

provides

a

detailed

analysis

of

foreign

tax

paid,

foreign

source

income,

and

foreign

source

qualified

dividends

as

reported

by

the

Funds,

to

shareholders

of

record.

Foreign

Tax

Paid

Per

Share

is

the

amount

per

share

available

to

you,

as

a

tax

credit

(assuming

you

held

your

shares

in

the

Fund

for

a

minimum

of

16

days

during

the

31-day

period

beginning

15

days

before

the

ex-dividend

date

of

the

Fund’s

distribution

to

which

the

foreign

taxes

relate),

or,

as

a

tax

deduction.

Foreign

Source

Income

Per

Share

is

the

amount

per

share

of

income

dividends

attributable

to

foreign

securities

held

by

the

Fund,

plus

any

foreign

taxes

withheld

on

these

dividends.

The

amounts

reported

include

foreign

source

qualified

dividends

that

have

not

been

adjusted

for

the

rate

differential

applicable

to

such

dividend

income.

1

Foreign

Source

Qualified

Dividends

Per

Share

is

the

amount

per

share

of

foreign

source

qualified

dividends

plus

any

foreign

taxes

withheld

on

these

dividends.

These

amounts

represent

the

portion

of

the

Foreign

Source

Income

Per

Share

that

were

derived

from

qualified

foreign

securities

held

by

the

Fund.

1

At

the

beginning

of

each

calendar

year,

shareholders

will

receive

Form

1099-DIV

which

will

include

their

share

of

taxes

paid

during

the

prior

calendar

year. Shareholders

are

advised

to

check

with

their

tax

advisors

for

information

on

the

treatment

of

these

amounts

on

their

income

tax

returns.

Class

Foreign

Tax

Paid

Per

Share

Foreign

Source

Income

Per

Share

Foreign

Source

Qualified

Dividends

Per

Share

Franklin

Corefolio

Allocation

Fund

Class

A

$0.0121

$0.0629

$0.0555

Class

C

$0.0121

$0.0142

$0.0125

Class

R

$0.0121

$0.0469

$0.0414

Class

R6

$0.0121

$0.0848

$0.0748

Advisor

Class

$0.0121

$0.0791

$0.0698

Franklin

Founding

Funds

Allocation

Fund

Class

A

$0.0101

$0.0493

$0.0435

Class

C

$0.0101

$0.0397

$0.0350

Class

R

$0.0101

$0.0463

$0.0409

Class

R6

$0.0101

$0.0536

$0.0473

Advisor

Class

$0.0101

$0.0522

$0.0461

Franklin

Founding

Funds

Allocation

Fund

Special

Meeting

of

Shareholders

42

franklintempleton.com

Annual

Report

September

9,

2020

and

reconvened

on

September

30,

2020

and

October

29,

2020

(unaudited)

A

Special

Meeting

of

Shareholders

of

Franklin

Founding

Funds

Allocation

Fund

(the

“Fund”)

was

held

virtually

on

September

9,

2020

and

reconvened

on

September

30,

2020

and

October

29,

2020.

The

purpose

of

the

meeting

was:

(1)

to

approve

a

new

Investment

Management

Agreement

with

Franklin

Advisers,

Inc.;

(2)

to

approve

modifications

to

the

Fund’s

current

fundamental

investment

goal;

(3)

to

approve

the

reclassification

of

the

Fund’s

investment

goal

from

a

fundamental

policy

to

a

non-fundamental

policy;

and

(4)

to

approve

the

use

of

a

“manager

of

managers”

structure

whereby

the

Fund’s

investment

manager

would

be

able

to

hire

and

replace

affiliated

and

unaffiliated

subadvisers

without

shareholder

approval.

At

the

meeting,

all

proposals

passed.

No

other

business

was

transacted

at

the

meeting

with

respect

to

the

Fund.

The

results

of

the

voting

at

the

Special

Meeting

are

as

follows:

1.

To

approve

a

new

Investment

Management

Agreement

with

Franklin

Advisers,

Inc.:

2.

To

approve

modifications

to

the

Fund’s

current

fundamental

investment

goal:

3.

To

approve

the

reclassification

of

the

Fund’s

investment

goal

from

a

fundamental

policy

to

a

non-fundamental

policy:

4.

To

approve

the

use

of

a

“manager

of

managers”

structure

whereby

the

Fund’s

investment

manager

would

be

able

to

hire

and

replace

affiliated

and

unaffiliated

subadvisers

without

shareholder

approval:

Shares

Voted

%

of

Outstanding

Shares

%

of

Shares

Present

For

91,819,445

36.81%

73.58%

Against

6,591,665

2.64%

5.28%

Abstain

26,384,471

10.58%

21.14%

Shares

Voted

%

of

Outstanding

Shares

%

of

Shares

Present

For

91,237,943

36.58%

73.11%

Against

6,966,220

2.79%

5.58%

Abstain

26,591,417

10.66%

21.31%

Shares

Voted

%

of

Outstanding

Shares

%

of

Shares

Present

For

85,023,713

34.09%

68.13%

Against

11,202,242

4.49%

8.98%

Abstain

28,569,621

11.45%

22.89%

Shares

Voted

%

of

Outstanding

Shares

%

of

Shares

Present

For

85,212,893

34.16%

68.28%

Against

12,324,096

4.94%

9.88%

Abstain

27,258,589

10.93%

21.84%

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

43

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

125

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

106

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

125

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-May

2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

44

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

125

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Canadian

National

Railway

(railroad)

(2001-present),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

125

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Private

investor;

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(May

2019-January

1,

2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

125

Graham

Holdings

Company

(education

and

media

organization)

(2011-present);

and

formerly

,

The

Southern

Company

(energy

company)

(2014-May

2020;

previously

2010-2012),

Cbeyond,

Inc.

(business

communications

provider)

(2010-2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-September

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

45

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

136

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

39

of

the

investment

companies

in

Franklin

Templeton;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015),

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

125

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

37

of

the

investment

companies

in

Franklin

Templeton.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

October

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Advisory

Services,

LLC,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Vice

President,

Franklin

Templeton

Distributors,

Inc.

and

FASA,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

41

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Franklin

Fund

Allocator

Series

46

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Robert

G.

Kubilis

(1973)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

December

2020

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting

and

officer

of

39

of

the

investment

companies

in

Franklin

Templeton.

Robert

Lim

(1948)

Vice

President

–

AML

Compliance

Since

2016

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Franklin

Templeton

Companies,

LLC;

Chief

Compliance

Officer,

Franklin

Templeton

Distributors,

Inc.

and

Franklin

Templeton

Investor

Services,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

eight

of

the

investment

companies

in

Franklin

Templeton

(since

December

2018).

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Associate

General

Counsel

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

Inc.;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

41

of

the

investment

companies

in

Franklin

Templeton.

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

41

of

the

investment

companies

in

Franklin

Templeton.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

47

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007-May

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

48

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

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

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FAS2

A

02/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Fund

Administrator

Distributor

Shareholder

Services

Franklin

Templeton

Services,

LLC

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.   

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $389,664 for the fiscal year ended December 31, 2020 and $387,483 for the fiscal year ended December 31, 2019.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended December 31, 2020 and $20,000 for the fiscal year ended December 31, 2019.  The services for which these fees were paid included professional fees in connection with an Indonesia withholding tax refund claim, professional fees in connection with tax treatment of equipment lease transactions.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not  reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended December 31, 2020 and $3,845 for the fiscal year ended December 31, 2019.  The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process. 

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $49,800 for the fiscal year ended December 31, 2020 and $160,144 for the fiscal year ended December 31, 2019.  The services for which these fees were paid included benchmarking services in connection with the ICI TA Survey, valuation services related to Fair Value engagement, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures,
 
and professional fees in connection with determining the feasibility of a U.S. direct lending structure.  

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

      (i)   pre-approval of all audit and audit related services;

      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;

      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $49,800 for the fiscal year ended December 31, 2020 and $183,989 for the fiscal year ended December 31, 2019.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5.  Audit Committee of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-

End Management Investment Companies.                  N/A

Item 8.  Portfolio Managers of Closed-End Management Investment

Companies.                                            N/A

Item 9. Purchases of Equity Securities by Closed-End Management

Investment Company and

Affiliated Purchasers.         N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) 

Changes in Internal Controls

. During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.

Item 12.  Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                      N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

Code of Ethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

Section 302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

Section 906

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 FUND ALLOCATOR SERIES

By S/MATTHEW T. HINKLE_____

Matthew T. Hinkle

Chief Executive Officer - Finance and Administration

Date February 26, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By S/MATTHEW T. HINKLE _____

Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date February 26, 2021

By S/ROBERT G. KUBILIS   ___

Robert G. Kubilis

Chief Financial Officer and Chief Accounting Officer

Date February 26, 2021