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: 12/31/21

Item 1. Reports to Stockholders.

a.)

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

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

December

31,

2021

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

2060

Retirement

Target

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

12

months

ended

December

31,

2021,

the

U.S.

economy

continued

to

recover

from

the

COVID-19

pandemic,

benefiting

equities.

Growth

accelerated

in

2021’s

first

half

as

the

reopening

of

businesses,

widespread

COVID-19

vaccinations

and

federal

assistance

programs

continued

to

boost

consumer

spending.

Inflation

increased

during

the

reporting

period

due

to

increased

demand

for

goods

amid

supply-chain

bottlenecks.

During

the

period’s

second

half,

investors

became

concerned

that

new,

swiftly

spreading

COVID-19

variants

could

hinder

the

economic

recovery,

and

growth

slowed

in

2021’s

third

quarter.

During

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

held

the

federal

funds

rate

unchanged

at

0.25%,

and

it

continued

broad

quantitative

easing

measures

to

bolster

credit

markets.

However,

the

Federal

Reserve

began

decreasing

its

asset

purchases

in

November

and

accelerated

its

tapering

in

December,

while

reiterating

its

intention

to

delay

interest

rate

increases

until

reaching

its

goal

of

maximum

U.S.

employment.

Rebounding

global

economies,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

pandemic

restrictions

and

expanding

vaccination

programs

benefited

global

equities,

but

some

business

restrictions

by

China,

the

spread

of

COVID-19

variants

and

higher

inflation

amid

supply-chain

disruptions

hindered

global

stocks

near

period-end.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+26.89%

(the

index

increasing

from

3,756.07

to

4,766.18).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+20.14%

(the

index

increasing

from

2,690.044

to

3,231.727).

2,3

Investment-

grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.54%

total

return

(an

index

decrease

from

2,392.02

to

2,355.14),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2021,

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

©

2022,

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

+28.71%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

9,986.70)

and

MSCI

World

Index

+22.35%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

14,223.137).

4.

Sources:

Morningstar

and

Bloomberg

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

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

59

Financial

Highlights

and

Statements

of

Investments

65

Financial

Statements

133

Notes

to

Financial

Statements

150

Report

of

Independent

Registered

Public

Accounting

Firm

182

Tax

Information

184

Board

Members

and

Officers

186

Shareholder

Information

191

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-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+18.54%

total

return

for

the

12

months

ended

December

31,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

easing

COVID-19

pandemic

restrictions

in

certain

regions

and

the

development

of

treatments

and

vaccines.

However,

the

Chinese

government’s

imposition

of

additional

restrictions

on

some

businesses

pressured

Asian

and

global

emerging

market

stocks.

Additionally,

the

spread

of

the

Delta

and

Omicron

variants

and

higher

inflation

in

an

environment

of

persistent

supply-chain

disruptions

hindered

global

equities

at

certain

points

during

the

12-month

period.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

monetary

and

fiscal

stimulus

measures

and

the

continued

progress

of

vaccination

programs.

Gross

domestic

product

(GDP)

growth

was

generally

robust,

as

the

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

supported

the

economy.

A

rebound

in

corporate

earnings

and

the

passage

of

a

bipartisan

infrastructure

bill

further

bolstered

investor

sentiment.

In

an

effort

to

support

the

economy,

the

U.S.

Federal

Reserve

(Fed)

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%.

While

the

Fed

also

maintained

quantitative

easing

measures

with

U.S.

Treasury

and

mortgage

bond

purchasing,

it

began

to

reduce

the

rate

of

purchases

beginning

in

November

2021

and

accelerated

the

pace

of

tapering

in

December.

The

Fed

also

noted

that

it

expected

easing

supply

constraints

to

help

reduce

inflationary

pressures

and

that

further

employment

progress

was

needed

before

the

Fed

would

consider

raising

the

range

for

the

federal

funds

target

rate.

The

economic

recovery

in

the

eurozone

was

slow,

as

quarter-over-quarter

GDP

growth

contracted

in

2021’s

first

quarter

before

returning

to

growth

in

2021’s

second

and

third

quarters.

GDP

growth

rates

were

initially

sluggish

among

the

region’s

largest

economies,

although

most

showed

signs

of

improvement

later

in

the

12-month

period.

Business

activity

growth

also

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+16.30%

total

return

for

the

12

months

under

review.

1

However,

in

November

2021,

the

annual

inflation

rate

in

the

eurozone

reached

the

highest

level

since

the

introduction

of

the

euro,

and

the

prospect

of

energy

shortages

during

the

winter

months

tempered

investor

optimism.

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-2.49%

total

return

for

the

12-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

quarter-over-quarter

GDP

contracted

in

2021’s

third

quarter.

China’s

economic

recovery

continued,

although

the

country’s

quarter-over-quarter

GDP

growth

in

2021’s

first

three

quarters

was

slower

than

in

2020’s

second

half,

pressured

by

higher

commodity

prices.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-related

businesses,

and

concerns

about

a

large

Chinese

property

developer’s

solvency

pressured

Asian

stocks

during

2021’s

fourth

quarter.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-2.54%

total

return

for

the

12

months

under

review.

1

Higher

inflation

led

many

central

banks

in

emerging

market

countries

to

raise

interest

rates,

which

dampened

economic

growth.

The

Omicron

variant

of

COVID-19

also

negatively

impacted

global

emerging

markets,

as

some

countries

reimplemented

restrictions

in

an

effort

to

counter

rising

infections.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2021.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

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,

2021.

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

+5.41%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

.

Investment

Strategy

Under

normal

market

conditions,

40%

of

the

Fund’s

assets

are

allocated

to

equity

investments

and

60%

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.

*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

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.

At

period-end,

our

largest

domestic

fixed

income

fund

holding,

Franklin

U.S.

Government

Securities

Fund

–

Class

R6,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Brandywine

GLOBAL

-

Global

Opportunities

Bond

Fund

-

USD

Hedged

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index.

Our

largest

domestic

equity

fund

holding,

Global

X

U.S.

Preferred

ETF,

underperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR

and

our

largest

foreign

equity

fund

holding,

iShares

International

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Fixed

Income

51.8%

Domestic

Equity

23.6%

Index-Linked

Notes

11.3%

Foreign

Equity

7.4%

Foreign

Fixed

Income

4.9%

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.

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

70

.

Franklin

LifeSmart™

Retirement

Income

Fund

5

franklintempleton.com

Annual

Report

Select

Dividend

ETF,

underperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR.

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Global

X

U.S.

Preferred

ETF

11.6%

Franklin

U.S.

Government

Securities

Fund,

Class

R6

10.0%

Western

Asset

Income

Fund,

Class

IS

9.9%

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

9.0%

Franklin

Liberty

U.S.

Core

Bond

ETF

9.0%

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

8.0%

Franklin

Liberty

Investment

Grade

Corporate

ETF

5.9%

Credit

Suisse

AG,

Senior

Note

5.7%

UBS

AG,

Senior

Note

5.6%

Franklin

Liberty

High

Yield

Corporate

ETF

5.0%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+5.41%

-0.42%

5-Year

+30.74%

+4.32%

10-Year

+69.37%

+4.81%

Advisor

1-Year

+5.58%

+5.58%

5-Year

+32.34%

+5.76%

10-Year

+73.96%

+5.69%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

3.53%

3.26%

2.70%

Advisor

3.99%

3.74%

3.14%

See

page

8

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

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.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

and

other

risks

are

described

more

fully

in

the

Fund’s

prospectus.

1.

The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

change

its

strategic

asset

allocation

40%

to

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.

Previously,

as

of

5/1/16,

the

Fund

changed

its

name

from

Franklin

LifeSmart

2015

Retirement

Target

Date

Fund

in

connection

with

changes

to

its

strategies

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

changes

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%.

Net

Asset

Value

Share

Class

12/31/21

12/31/20

Change

A

(FTRAX)

$11.50

$11.62

-$0.12

C

(FRTCX)

$11.36

$11.48

-$0.12

R

(FBRLX)

$11.47

$11.59

-$0.12

R6

(FLMTX)

$11.55

$11.67

-$0.12

Advisor

(FLRDX)

$11.55

$11.66

-$0.11

Distributions

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4296

$0.2599

$0.0369

$0.7264

C

$0.3384

$0.2599

$0.0369

$0.6352

R

$0.4092

$0.2599

$0.0369

$0.7060

R6

$0.4668

$0.2599

$0.0369

$0.7636

Advisor

$0.4608

$0.2599

$0.0369

$0.7576

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.54%

1.19%

Advisor

0.29%

0.94%

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

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

12/31/21.

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

All

Country

World

Index

(ACWI)

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,020.70

$1.53

$1,023.69

$1.53

0.30%

C

$1,000

$1,016.10

$5.34

$1,019.91

$5.35

1.05%

R

$1,000

$1,019.10

$2.80

$1,022.43

$2.80

0.55%

R6

$1,000

$1,021.40

$0.00

$1,025.21

$0.00

0.00%

Advisor

$1,000

$1,021.10

$0.25

$1,024.95

$0.26

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,

2021

.

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

approximately

seven

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

+9.62%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Fixed

Income

42.6%

Domestic

Equity

38.9%

Foreign

Equity

14.3%

Foreign

Fixed

Income

2.7%

Alternative

Strategies

0.5%

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.

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

77

.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

12

franklintempleton.com

Annual

Report

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.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

19.8%

Franklin

Liberty

U.S.

Core

Bond

ETF

17.9%

Franklin

Growth

Fund,

Class

R6

9.8%

Franklin

International

Core

Equity

(IU)

Fund

6.4%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

6.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.9%

Franklin

Liberty

High

Yield

Corporate

ETF

3.6%

Schwab

U.S.

TIPS

ETF

3.2%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

3.2%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

2.7%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+9.62%

+3.57%

5-Year

+45.53%

+6.58%

Since

Inception

(7/1/13)

+70.20%

+5.75%

Advisor

1-Year

+9.95%

+9.95%

5-Year

+47.54%

+8.09%

Since

Inception

(7/1/13)

+74.17%

+6.74%

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

(7/1/13–12/31/21)

Advisor

Class

(7/1/13–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

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.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.3372

$0.2911

$0.6034

$1.2317

C

$0.2416

$0.2911

$0.6034

$1.1361

R

$0.2938

$0.2911

$0.6034

$1.1883

R6

$0.3796

$0.2911

$0.6034

$1.2741

Advisor

$0.3707

$0.2911

$0.6034

$1.2652

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.21%

Advisor

0.45%

0.96%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,034.20

$2.35

$1,022.89

$2.34

0.46%

C

$1,000

$1,030.80

$6.19

$1,019.11

$6.15

1.21%

R

$1,000

$1,033.70

$3.63

$1,021.63

$3.61

0.71%

R6

$1,000

$1,035.90

$0.78

$1,024.44

$0.78

0.15%

Advisor

$1,000

$1,036.30

$1.07

$1,024.15

$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

3

1

,

2021

.

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

approximately

seven

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

+11.21%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

44.0%

Domestic

Fixed

Income

34.7%

Foreign

Equity

18.0%

Foreign

Fixed

Income

2.0%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.8%

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.

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

84

.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

18

franklintempleton.com

Annual

Report

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.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

22.2%

Franklin

Liberty

U.S.

Core

Bond

ETF

14.8%

Franklin

Growth

Fund,

Class

R6

11.2%

Franklin

International

Core

Equity

(IU)

Fund

7.6%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.5%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.9%

Franklin

Liberty

High

Yield

Corporate

ETF

2.9%

Vanguard

S&P

500

ETF

2.8%

Templeton

Foreign

Fund,

Class

R6

2.8%

Schwab

U.S.

TIPS

ETF

2.6%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+11.21%

+5.12%

5-Year

+55.71%

+8.03%

10-Year

+117.23%

+7.46%

Advisor

1-Year

+11.53%

+11.53%

5-Year

+57.75%

+9.54%

10-Year

+123.17%

+8.36%

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

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.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.3677

$0.3070

$0.9918

$1.6665

C

$0.2646

$0.3070

$0.9918

$1.5634

R

$0.3296

$0.3070

$0.9918

$1.6284

R6

$0.4105

$0.3070

$0.9918

$1.7093

Advisor

$0.4034

$0.3070

$0.9918

$1.7022

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.01%

Advisor

0.45%

0.76%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,037.40

$2.46

$1,022.79

$2.45

0.48%

C

$1,000

$1,033.40

$6.29

$1,019.02

$6.24

1.23%

R

$1,000

$1,036.10

$3.74

$1,021.53

$3.72

0.73%

R6

$1,000

$1,038.90

$0.79

$1,024.43

$0.78

0.15%

Advisor

$1,000

$1,038.70

$1.18

$1,024.05

$1.17

0.23%

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,

2021.

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

approximately

seven

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

+12.91%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

49.2%

Domestic

Fixed

Income

26.2%

Foreign

Equity

21.4%

Foreign

Fixed

Income

1.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.2%

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.

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

91

.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

24

franklintempleton.com

Annual

Report

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.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.8%

Franklin

Growth

Fund,

Class

R6

12.6%

Franklin

Liberty

U.S.

Core

Bond

ETF

11.3%

Franklin

International

Core

Equity

(IU)

Fund

9.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.6%

Templeton

Foreign

Fund,

Class

R6

3.3%

Vanguard

S&P

500

ETF

3.2%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.6%

Franklin

LibertyQ

U.S.

Equity

ETF

2.5%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+12.91%

+6.68%

5-Year

+63.57%

+9.11%

Since

Inception

(7/1/13)

+95.39%

+7.48%

Advisor

1-Year

+13.28%

+13.28%

5-Year

+65.69%

+10.63%

Since

Inception

(7/1/13)

+99.69%

+8.47%

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

(7/1/13–12/31/21)

Advisor

Class

(7/1/13–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

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.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4051

$0.5339

$1.1001

$2.0391

C

$0.3060

$0.5339

$1.1001

$1.9400

R

$0.3674

$0.5339

$1.1001

$2.0014

R6

$0.4494

$0.5339

$1.1001

$2.0834

Advisor

$0.4419

$0.5339

$1.1001

$2.0759

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.20%

Advisor

0.45%

0.95%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,042.10

$2.40

$1,022.86

$2.38

0.47%

C

$1,000

$1,038.40

$6.24

$1,019.08

$6.19

1.22%

R

$1,000

$1,040.70

$3.68

$1,021.60

$3.65

0.72%

R6

$1,000

$1,043.50

$0.80

$1,024.42

$0.79

0.16%

Advisor

$1,000

$1,043.90

$1.12

$1,024.11

$1.11

0.22%

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,

2021.

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

approximately

seven

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

+14.20%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

54.0%

Foreign

Equity

24.8%

Domestic

Fixed

Income

18.5%

Foreign

Fixed

Income

1.2%

Alternative

Strategies

0.5%

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.

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

98

.

Franklin

LifeSmart™t

2035

Retirement

Target

Fund

30

franklintempleton.com

Annual

Report

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.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

26.0%

Franklin

Growth

Fund,

Class

R6

13.7%

Franklin

International

Core

Equity

(IU)

Fund

10.3%

Franklin

Liberty

U.S.

Core

Bond

ETF

7.7%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.8%

Vanguard

S&P

500

ETF

4.7%

Templeton

Foreign

Fund,

Class

R6

3.5%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.3%

Templeton

Developing

Markets

Trust,

Class

R6

3.2%

Franklin

LibertyQ

U.S.

Equity

ETF

2.8%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+14.20%

+7.94%

5-Year

+71.25%

+10.11%

10-Year

+144.61%

+8.74%

Advisor

1-Year

+14.46%

+14.46%

5-Year

+73.47%

+11.65%

10-Year

+151.53%

+9.66%

See

page

33

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

32

franklintempleton.com

Annual

Report

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

See

page

33

for

Performance

Summary

footnotes.

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

individ-

ual

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.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4221

$0.4978

$1.7310

$2.6509

C

$0.2974

$0.4978

$1.7310

$2.5262

R

$0.3726

$0.4978

$1.7310

$2.6014

R6

$0.4701

$0.4978

$1.7310

$2.6989

Advisor

$0.4619

$0.4978

$1.7310

$2.6907

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.08%

Advisor

0.45%

0.83%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,044.30

$2.50

$1,022.76

$2.47

0.48%

C

$1,000

$1,040.90

$6.34

$1,018.99

$6.27

1.23%

R

$1,000

$1,042.90

$3.78

$1,021.50

$3.74

0.73%

R6

$1,000

$1,046.10

$0.76

$1,024.46

$0.76

0.15%

Advisor

$1,000

$1,045.90

$1.20

$1,024.03

$1.19

0.23%

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,

2021.

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

approximately

seven

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

+15.99%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

59.3%

Foreign

Equity

28.0%

Domestic

Fixed

Income

10.9%

Alternative

Strategies

0.5%

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.

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

105

.

FranklinLifeSmart™

2040

Retirement

Target

Fund

36

franklintempleton.com

Annual

Report

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

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

26.9%

Franklin

Growth

Fund,

Class

R6

15.5%

Franklin

International

Core

Equity

(IU)

Fund

11.4%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

7.3%

Vanguard

S&P

500

ETF

6.5%

Franklin

Liberty

U.S.

Core

Bond

ETF

5.0%

Templeton

Foreign

Fund,

Class

R6

4.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.8%

Templeton

Developing

Markets

Trust,

Class

R6

3.7%

Franklin

LibertyQ

U.S.

Equity

ETF

3.1%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+15.99%

+9.62%

5-Year

+78.67%

+11.05%

Since

Inception

(7/1/13)

+115.11%

+8.70%

Advisor

1-Year

+16.40%

+16.40%

5-Year

+80.95%

+12.59%

Since

Inception

(7/1/13)

+119.96%

+9.72%

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

(7/1/13–12/31/21)

Advisor

Class

(7/1/13–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

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.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4301

$0.8440

$2.0388

$3.3129

C

$0.3166

$0.8440

$2.0388

$3.1994

R

$0.3849

$0.8440

$2.0388

$3.2677

R6

$0.4776

$0.8440

$2.0388

$3.3604

Advisor

$0.4702

$0.8440

$2.0388

$3.3530

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.38%

Advisor

0.45%

1.13%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,049.50

$2.47

$1,022.80

$2.43

0.48%

C

$1,000

$1,046.30

$6.32

$1,019.03

$6.24

1.23%

R

$1,000

$1,048.20

$3.75

$1,021.55

$3.70

0.73%

R6

$1,000

$1,051.50

$0.68

$1,024.55

$0.67

0.13%

Advisor

$1,000

$1,051.30

$1.17

$1,024.06

$1.16

0.23%

41

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2021.

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

approximately

seven

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

+17.06%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

62.5%

Foreign

Equity

31.7%

Domestic

Fixed

Income

4.4%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.9%

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.

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

112

.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

42

franklintempleton.com

Annual

Report

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

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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,

Western

Asset

Core

Plus

Bond

Fund

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

29.3%

Franklin

Growth

Fund,

Class

R6

16.1%

Franklin

International

Core

Equity

(IU)

Fund

12.8%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

7.9%

Vanguard

S&P

500

ETF

6.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.5%

Templeton

Foreign

Fund,

Class

R6

4.4%

Templeton

Developing

Markets

Trust,

Class

R6

4.4%

Franklin

LibertyQ

U.S.

Equity

ETF

3.2%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

2.2%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+17.06%

+10.62%

5-Year

+82.21%

+11.48%

10-Year

+163.03%

+9.54%

Advisor

1-Year

+17.32%

+17.32%

5-Year

+84.42%

+13.02%

10-Year

+169.83%

+10.44%

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

required

minimum

distribution

(RMD)

age

of

72.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4504

$0.6657

$2.1725

$3.2886

C

$0.3400

$0.6657

$2.1725

$3.1782

R

$0.4098

$0.6657

$2.1725

$3.2480

R6

$0.5015

$0.6657

$2.1725

$3.3397

Advisor

$0.4933

$0.6657

$2.1725

$3.3315

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.21%

Advisor

0.45%

0.96%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,051.00

$2.51

$1,022.76

$2.47

0.48%

C

$1,000

$1,046.30

$6.36

$1,018.99

$6.28

1.23%

R

$1,000

$1,049.30

$3.80

$1,021.50

$3.74

0.73%

R6

$1,000

$1,052.10

$0.78

$1,024.44

$0.77

0.15%

Advisor

$1,000

$1,051.80

$1.22

$1,024.02

$1.20

0.24%

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,

2021.

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

approximately

seven

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

+17.58%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

64.2%

Foreign

Equity

34.1%

Alternative

Strategies

0.5%

Domestic

Fixed

Income

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.7%

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.

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

119

.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

48

franklintempleton.com

Annual

Report

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

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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,

Western

Asset

Core

Plus

Bond

Fund

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

26.7%

Franklin

Growth

Fund,

Class

R6

17.5%

Franklin

International

Core

Equity

(IU)

Fund

13.2%

Vanguard

S&P

500

ETF

8.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

8.2%

Templeton

Foreign

Fund,

Class

R6

5.1%

Templeton

Developing

Markets

Trust,

Class

R6

4.9%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.6%

Franklin

LibertyQ

U.S.

Equity

ETF

3.5%

iShares

Core

MSCI

EAFE

ETF

2.5%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+17.58%

+11.09%

5-Year

+83.66%

+11.65%

Since

Inception

(7/1/13)

+123.15%

+9.18%

Advisor

1-Year

+17.77%

+17.77%

5-Year

+85.83%

+13.19%

Since

Inception

(7/1/13)

+128.26%

+10.19%

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

(7/1/13–12/31/21)

Advisor

Class

(7/1/13–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

modified

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.

Previously

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-ad-

justed,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4345

$1.0458

$2.4318

$3.9121

C

$0.3230

$1.0458

$2.4318

$3.8006

R

$0.3758

$1.0458

$2.4318

$3.8534

R6

$0.4854

$1.0458

$2.4318

$3.9630

Advisor

$0.4751

$1.0458

$2.4318

$3.9527

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.55%

Advisor

0.45%

1.30%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,053.70

$2.40

$1,022.87

$2.36

0.46%

C

$1,000

$1,049.10

$6.26

$1,019.10

$6.17

1.21%

R

$1,000

$1,051.40

$3.68

$1,021.61

$3.63

0.71%

R6

$1,000

$1,054.80

$0.66

$1,024.56

$0.65

0.13%

Advisor

$1,000

$1,054.40

$1.10

$1,024.13

$1.08

0.21%

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,

2021.

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

approximately

seven

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

+17.34%

cumulative

total

return

for

the

12

months

ended

December

31,

2021.

In

comparison,

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

+18.54%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+19.04%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

63.7%

Foreign

Equity

33.7%

Alternative

Strategies

0.5%

Domestic

Fixed

Income

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.6%

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.

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

126

.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

54

franklintempleton.com

Annual

Report

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

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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,

Western

Asset

Core

Plus

Bond

Fund

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

28.5%

Franklin

Growth

Fund,

Class

R6

16.7%

Franklin

International

Core

Equity

(IU)

Fund

13.5%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

8.0%

Vanguard

S&P

500

ETF

7.2%

Templeton

Foreign

Fund,

Class

R6

4.9%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.8%

Templeton

Developing

Markets

Trust,

Class

R6

4.7%

Franklin

LibertyQ

U.S.

Equity

ETF

3.3%

Franklin

International

Growth

Fund,

Class

R6

2.3%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+17.34%

+10.89%

5-Year

+83.64%

+11.66%

Since

Inception

(5/1/15)

+79.16%

+8.22%

Advisor

1-Year

+17.60%

+17.60%

5-Year

+85.59%

+13.17%

Since

Inception

(5/1/15)

+81.68%

+9.37%

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

(5/1/15–12/31/21)

Advisor

Class

(5/1/15–12/31/21)

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

modified

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.

Previously,

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.

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

changes

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

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

MSCI

ACWI

is

a

free

float-

adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.3956

$0.9476

$1.1700

$2.5132

C

$0.3061

$0.9476

$1.1700

$2.4237

R

$0.3625

$0.9476

$1.1700

$2.4801

R6

$0.4388

$0.9476

$1.1700

$2.5564

Advisor

$0.4307

$0.9476

$1.1700

$2.5483

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

2.30%

Advisor

0.45%

2.05%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,051.40

$2.48

$1,022.79

$2.44

0.48%

C

$1,000

$1,047.60

$6.34

$1,019.01

$6.25

1.23%

R

$1,000

$1,050.20

$3.76

$1,021.54

$3.71

0.73%

R6

$1,000

$1,053.80

$0.27

$1,024.94

$0.27

0.05%

Advisor

$1,000

$1,052.80

$1.19

$1,024.05

$1.17

0.23%

59

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

This

inaugural

annual

report

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund

covers

the

period

since

the

Fund's

inception

on

January

29,

2021,

through

December

31,

2021.

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

approximately

seven

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

+18.52%

cumulative

total

return

for

the

period

since

the

Fund’s

inception

through

December

31,

2021.

In

comparison,

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

+19.08%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-3.68%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

61

.

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

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

62.8%

Foreign

Equity

33.4%

Alternative

Strategies

0.5%

Domestic

Fixed

Income

0.5%

Short-Term

Investments

&

Other

Net

Assets

2.8%

1.

Source:

FactSet.

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.

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

132

.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

60

franklintempleton.com

Annual

Report

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

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

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,

Western

Asset

Core

Plus

Bond

Fund

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2060

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

A

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.8%

Franklin

Growth

Fund,

Class

R6

16.4%

Franklin

International

Core

Equity

(IU)

Fund

13.2%

Vanguard

S&P

500

ETF

10.4%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

7.9%

Templeton

Foreign

Fund,

Class

R6

4.9%

Templeton

Developing

Markets

Trust,

Class

R6

4.7%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.6%

Franklin

LibertyQ

U.S.

Equity

ETF

3.3%

iShares

Core

MSCI

EAFE

ETF

2.4%

Performance

Summary

as

of

December

31,

2021

Franklin

LifeSmart™

2060

Retirement

Target

Fund

61

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

12/31/21

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

Since

Inception

(1/29/21)

+18.52%

+12.03%

Advisor

Since

Inception

(1/29/21)

+18.41%

+18.41%

See

page

63

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

62

franklintempleton.com

Annual

Report

See

page

63

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

(1/29/21–12/31/21)

Advisor

Class

(1/29/21–12/31/21)

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

63

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.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

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

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

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.

Source:

Morningstar.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

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.

5.

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

(1/29/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Total

A

$0.3182

$0.2715

$0.5897

C

$0.3185

$0.2715

$0.5900

R

$0.3180

$0.2715

$0.5895

R6

$0.3217

$0.2715

$0.5932

Advisor

$0.3168

$0.2715

$0.5883

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.57%

Advisor

0.45%

1.32%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2060

Retirement

Target

Fund

64

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

184/365

to

reflect

the

one-half

year

period

for

Hypothetical

expenses.

Non-recurring

expenses

are

not

annualized.

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

1

A

$1,000

$1,053.90

$1.10

$1,024.14

$1.08

0.21%

C

$1,000

$1,053.10

$1.10

$1,024.13

$1.08

0.21%

R

$1,000

$1,053.00

$1.08

$1,024.16

$1.06

0.21%

R6

$1,000

$1,054.20

$0.75

$1,024.47

$0.74

0.15%

Advisor

$1,000

$1,053.00

$1.08

$1,024.16

$1.06

0.21%

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

65

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.62

$11.15

$10.35

$11.06

$10.96

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.36

0.39

0.43

0.50

0.43

Net

realized

and

unrealized

gains

(losses)

...........

0.25

0.52

0.79

(0.77)

0.10

Total

from

investment

operations

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

0.61

0.91

1.22

(0.27)

0.53

Less

distributions

from:

Net

investment

income

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

(0.43)

(0.44)

(0.42)

(0.44)

(0.43)

Net

realized

gains

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

(0.30)

—

—

—

—

Total

distributions

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

(0.73)

(0.44)

(0.42)

(0.44)

(0.43)

Net

asset

value,

end

of

year

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

$11.50

$11.62

$11.15

$10.35

$11.06

Total

return

d

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

5.41%

8.40%

11.93%

(2.48)%

4.84%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.95%

0.94%

0.95%

0.90%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

e,f

.....

0.30%

0.30%

0.30%

0.30%

0.30%

Net

investment

income

c

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

3.05%

3.56%

3.91%

4.63%

3.89%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$46,058

$40,343

$34,363

$31,461

$32,397

Portfolio

turnover

rate

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

121.26%

51.13%

82.72%

46.27%

28.12%

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

0.29%

for

the

year

ended

December

31,

2021.

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.

66

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.48

$11.01

$10.23

$10.92

$10.83

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.25

0.30

0.34

0.42

0.34

Net

realized

and

unrealized

gains

(losses)

...........

0.27

0.52

0.78

(0.76)

0.10

Total

from

investment

operations

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

0.52

0.82

1.12

(0.34)

0.44

Less

distributions

from:

Net

investment

income

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

(0.34)

(0.35)

(0.34)

(0.35)

(0.35)

Net

realized

gains

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

(0.30)

—

—

—

—

Total

distributions

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

(0.64)

(0.35)

(0.34)

(0.35)

(0.35)

Net

asset

value,

end

of

year

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

$11.36

$11.48

$11.01

$10.23

$10.92

Total

return

d

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

4.56%

7.62%

11.14%

(3.29)%

4.07%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.70%

1.69%

1.69%

1.65%

1.67%

Expenses

net

of

waiver

and

payments

by

affiliates

e,f

.....

1.05%

1.05%

1.04%

1.05%

1.05%

Net

investment

income

c

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

2.20%

2.80%

3.17%

3.88%

3.14%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$6,803

$9,355

$10,568

$11,796

$16,070

Portfolio

turnover

rate

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

121.26%

51.13%

82.72%

46.27%

28.12%

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

0.29%

for

the

year

ended

December

31,

2021.

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

67

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.59

$11.11

$10.31

$11.01

$10.92

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.33

0.37

0.40

0.48

0.40

Net

realized

and

unrealized

gains

(losses)

...........

0.26

0.52

0.79

(0.77)

0.09

Total

from

investment

operations

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

0.59

0.89

1.19

(0.29)

0.49

Less

distributions

from:

Net

investment

income

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

(0.41)

(0.41)

(0.39)

(0.41)

(0.40)

Net

realized

gains

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

(0.30)

—

—

—

—

Total

distributions

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

(0.71)

(0.41)

(0.39)

(0.41)

(0.40)

Net

asset

value,

end

of

year

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

$11.47

$11.59

$11.11

$10.31

$11.01

Total

return

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

5.15%

8.22%

11.69%

(2.67)%

4.57%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.19%

1.11%

1.16%

1.11%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

d,e

.....

0.54%

0.47%

0.51%

0.51%

0.55%

Net

investment

income

c

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

2.80%

3.39%

3.70%

4.42%

3.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,197

$2,108

$2,336

$2,876

$4,071

Portfolio

turnover

rate

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

121.26%

51.13%

82.72%

46.27%

28.12%

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

0.29%

for

the

year

ended

December

31,

2021.

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.

68

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.67

$11.20

$10.40

$11.11

$11.01

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.34

0.43

0.47

0.54

0.47

Net

realized

and

unrealized

gains

(losses)

...........

0.31

0.52

0.78

(0.78)

0.10

Total

from

investment

operations

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

0.65

0.95

1.25

(0.24)

0.57

Less

distributions

from:

Net

investment

income

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

(0.47)

(0.48)

(0.45)

(0.47)

(0.47)

Net

realized

gains

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

(0.30)

—

—

—

—

Total

distributions

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

(0.77)

(0.48)

(0.45)

(0.47)

(0.47)

Net

asset

value,

end

of

year

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

$11.55

$11.67

$11.20

$10.40

$11.11

Total

return

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

5.63%

8.81%

12.20%

(2.16)%

5.14%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.57%

0.58%

0.59%

0.54%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

d,e

.....

—%

—%

—%

—%

—%

Net

investment

income

c

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

2.88%

3.84%

4.21%

4.93%

4.19%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$56

$4,092

$2,043

$1,798

$4,031

Portfolio

turnover

rate

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

121.26%

51.13%

82.72%

46.27%

28.12%

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

0.29%

for

the

year

ended

December

31,

2021.

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

69

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.66

$11.19

$10.39

$11.10

$11.00

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.39

0.42

0.46

0.53

0.46

Net

realized

and

unrealized

gains

(losses)

...........

0.26

0.52

0.79

(0.77)

0.10

Total

from

investment

operations

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

0.65

0.94

1.25

(0.24)

0.56

Less

distributions

from:

Net

investment

income

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

(0.46)

(0.47)

(0.45)

(0.47)

(0.46)

Net

realized

gains

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

(0.30)

—

—

—

—

Total

distributions

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

(0.76)

(0.47)

(0.45)

(0.47)

(0.46)

Net

asset

value,

end

of

year

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

$11.55

$11.66

$11.19

$10.39

$11.10

Total

return

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

5.58%

8.75%

12.16%

(2.21)%

5.09%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.70%

0.69%

0.70%

0.65%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

d,e

.....

0.05%

0.05%

0.05%

0.05%

0.05%

Net

investment

income

c

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

3.34%

3.83%

4.16%

4.88%

4.14%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,837

$2,021

$1,875

$1,409

$2,122

Portfolio

turnover

rate

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

121.26%

51.13%

82.72%

46.27%

28.12%

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

0.29%

for

the

year

ended

December

31,

2021.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

See

Abbreviations

on

page

181

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

87.7%

Domestic

Equity

23.6%

a

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

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

212,452

$

4,644,204

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

153,177

2,308,371

Global

X

U.S.

Preferred

ETF

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

260,192

6,702,546

13,655,121

Domestic

Fixed

Income

51.8%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

109,775

2,877,203

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

133,235

3,435,358

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

207,638

5,216,759

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

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

986,158

5,769,024

Schwab

U.S.

TIPS

ETF

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

27,553

1,732,808

a

Western

Asset

Income

Fund,

Class

IS

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

946,333

5,753,705

a

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

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

986,236

5,227,049

30,011,906

Foreign

Equity

7.4%

iShares

International

Select

Dividend

ETF

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

83,608

2,606,898

a

Templeton

Developing

Markets

Trust,

Class

R6

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

24,792

550,869

a

Templeton

Foreign

Fund,

Class

R6

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

164,606

1,160,475

4,318,242

Foreign

Fixed

Income

4.9%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund

-

USD

Hedged,

Class

IS

....

291,085

2,864,272

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$50,303,830)

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

50,849,541

Units

a

a

a

a

b

Index-Linked

Notes

11.3%

Capital

Markets

11.3%

c,d

Credit

Suisse

AG,

Senior

Note,

144A,

15.194%,

9/06/22

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

812

3,309,448

c,d

UBS

AG,

Senior

Note

,

144A,

7.15%,

11/07/22

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

2,624

3,231,802

6,541,250

Total

Index-Linked

Notes

(Cost

$5,753,564)

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

6,541,250

Total

Long

Term

Investments

(Cost

$56,057,394)

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

57,390,791

a

a

a

a

a

Short

Term

Investments

0.9%

Shares

a

Money

Market

Funds

0.9%

a,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

515,239

515,239

Total

Money

Market

Funds

(Cost

$515,239)

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

515,239

Total

Short

Term

Investments

(Cost

$515,239

)

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

515,239

a

Total

Investments

(Cost

$56,572,633)

99.9%

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

$57,906,030

Other

Assets,

less

Liabilities

0.1%

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

45,677

Net

Assets

100.0%

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

$57,951,707

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

71

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,

2021,

the

value

of

these

securities

was

$6,541,250,

representing

11.3%

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.

72

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.99

$12.17

$11.00

$11.76

$10.68

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.22

0.19

0.29

0.35

0.18

Net

realized

and

unrealized

gains

(losses)

...........

1.02

0.89

1.18

(0.79)

1.05

Total

from

investment

operations

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

1.24

1.08

1.47

(0.44)

1.23

Less

distributions

from:

Net

investment

income

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

(0.34)

(0.26)

(0.30)

(0.32)

(0.15)

Net

realized

gains

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

(0.89)

—

—

—

—

Total

distributions

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

(1.23)

(0.26)

(0.30)

(0.32)

(0.15)

Net

asset

value,

end

of

year

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

$13.00

$12.99

$12.17

$11.00

$11.76

Total

return

d

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

9.62%

9.06%

13.43%

(3.78)%

11.53%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.98%

0.98%

0.97%

0.94%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.46%

0.47%

f

0.35%

0.30%

0.30%

Net

investment

income

c

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

1.63%

1.61%

2.47%

2.92%

1.58%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$36,698

$30,265

$27,016

$24,108

$20,289

Portfolio

turnover

rate

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

79.95%

68.93%

120.35%

57.42%

47.93%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

73

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.91

$12.09

$10.93

$11.69

$10.62

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.11

0.10

0.20

0.24

0.10

Net

realized

and

unrealized

gains

(losses)

...........

1.02

0.89

1.17

(0.76)

1.03

Total

from

investment

operations

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

1.13

0.99

1.37

(0.52)

1.13

Less

distributions

from:

Net

investment

income

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

(0.24)

(0.17)

(0.21)

(0.24)

(0.06)

Net

realized

gains

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

(0.89)

—

—

—

—

Total

distributions

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

(1.13)

(0.17)

(0.21)

(0.24)

(0.06)

Net

asset

value,

end

of

year

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

$12.91

$12.91

$12.09

$10.93

$11.69

Total

return

d

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

8.85%

8.29%

12.59%

(4.53)%

10.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.72%

1.73%

1.72%

1.69%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

1.22%

f

1.10%

1.05%

1.05%

Net

investment

income

c

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

0.79%

0.85%

1.72%

2.17%

0.83%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$6,235

$7,118

$6,811

$6,364

$6,287

Portfolio

turnover

rate

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

79.95%

68.93%

120.35%

57.42%

47.93%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

74

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.98

$12.16

$10.99

$11.75

$10.66

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.16

0.26

0.29

0.12

Net

realized

and

unrealized

gains

(losses)

...........

1.03

0.89

1.17

(0.76)

1.08

Total

from

investment

operations

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

1.20

1.05

1.43

(0.47)

1.20

Less

distributions

from:

Net

investment

income

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

(0.29)

(0.23)

(0.26)

(0.29)

(0.11)

Net

realized

gains

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

(0.89)

—

—

—

—

Total

distributions

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

(1.18)

(0.23)

(0.26)

(0.29)

(0.11)

Net

asset

value,

end

of

year

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

$13.00

$12.98

$12.16

$10.99

$11.75

Total

return

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

9.37%

8.79%

13.25%

(4.14)%

11.26%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.22%

1.23%

1.22%

1.19%

1.27%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.71%

0.72%

e

0.60%

0.55%

0.55%

Net

investment

income

c

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

1.23%

1.35%

2.22%

2.67%

1.33%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$758

$786

$745

$767

$969

Portfolio

turnover

rate

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

79.95%

68.93%

120.35%

57.42%

47.93%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

75

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.03

$12.20

$11.02

$11.79

$10.70

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.19

0.22

0.32

0.37

0.21

Net

realized

and

unrealized

gains

(losses)

...........

1.09

0.90

1.19

(0.78)

1.06

Total

from

investment

operations

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

1.28

1.12

1.51

(0.41)

1.27

Less

distributions

from:

Net

investment

income

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

(0.38)

(0.29)

(0.33)

(0.36)

(0.18)

Net

realized

gains

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

(0.89)

—

—

—

—

Total

distributions

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

(1.27)

(0.29)

(0.33)

(0.36)

(0.18)

Net

asset

value,

end

of

year

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

$13.04

$13.03

$12.20

$11.02

$11.79

Total

return

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

9.93%

9.45%

13.83%

(3.57)%

11.93%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.59%

0.62%

0.60%

0.58%

0.59%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.16%

0.16%

e

0.05%

—%

—%

Net

investment

income

c

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

1.40%

1.83%

2.77%

3.22%

1.88%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$5

$4,855

$7,429

$8,562

$8,831

Portfolio

turnover

rate

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

79.95%

68.93%

120.35%

57.42%

47.93%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

76

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.03

$12.20

$11.03

$11.79

$10.70

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.26

0.22

0.32

0.35

0.23

Net

realized

and

unrealized

gains

(losses)

...........

1.02

0.90

1.17

(0.76)

1.04

Total

from

investment

operations

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

1.28

1.12

1.49

(0.41)

1.27

Less

distributions

from:

Net

investment

income

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

(0.37)

(0.29)

(0.32)

(0.35)

(0.18)

Net

realized

gains

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

(0.89)

—

—

—

—

Total

distributions

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

(1.26)

(0.29)

(0.32)

(0.35)

(0.18)

Net

asset

value,

end

of

year

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

$13.05

$13.03

$12.20

$11.03

$11.79

Total

return

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

9.95%

9.39%

13.77%

(3.62)%

11.88%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.73%

0.73%

0.72%

0.69%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.21%

0.21%

e

0.10%

0.05%

0.05%

Net

investment

income

c

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

1.88%

1.80%

2.72%

3.17%

1.83%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$826

$685

$745

$637

$691

Portfolio

turnover

rate

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

79.95%

68.93%

120.35%

57.42%

47.93%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

77

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.0%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

10,598

$

229,241

Domestic

Equity

38.9%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

54,787

2,169,022

a

Franklin

Growth

Fund,

Class

R6

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

28,924

4,373,598

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

18,743

881,483

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

585,415

8,822,202

Vanguard

S&P

500

ETF

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

2,414

1,053,880

17,300,185

Domestic

Fixed

Income

42.6%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

109,719

1,213,493

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

60,886

1,595,822

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

27,363

705,533

a

Franklin

Liberty

Senior

Loan

ETF

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

35,527

887,464

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

317,077

7,966,338

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

59,333

1,417,988

Schwab

U.S.

TIPS

ETF

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

22,644

1,424,081

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

226,051

2,694,526

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

276,765

1,073,847

18,979,092

Foreign

Equity

14.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

56,706

630,569

a

Franklin

FTSE

Europe

ETF

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

8,624

253,373

a

Franklin

International

Core

Equity

(IU)

Fund

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

229,485

2,866,263

a

Franklin

International

Growth

Fund,

Class

R6

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

23,120

496,395

iShares

Core

MSCI

EAFE

ETF

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

6,600

492,624

a

Templeton

Developing

Markets

Trust,

Class

R6

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

27,250

605,500

a

Templeton

Foreign

Fund,

Class

R6

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

147,800

1,041,988

6,386,712

Foreign

Fixed

Income

2.7%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

48,326

1,183,504

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$38,719,205)

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

44,078,734

a

a

a

a

Short

Term

Investments

1.0%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

3

3

Total

Money

Market

Funds

(Cost

$3)

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

3

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.

78

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

1.0%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$454,972)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$192,708)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$23,304)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$238,960)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$464,207)

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

$

454,970

$

454,971

Total

Repurchase

Agreements

(Cost

$454,970)

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

454,971

Total

Short

Term

Investments

(Cost

$454,973

)

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

454,974

a

Total

Investments

(Cost

$39,174,178)

100.0%

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

$44,533,708

Other

Assets,

less

Liabilities

(0.0)%

†

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

(12,170)

Net

Assets

100.0%

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

$44,521,538

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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

79

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.80

$12.98

$11.52

$12.97

$11.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.20

0.27

0.32

0.19

Net

realized

and

unrealized

gains

(losses)

...........

1.31

1.08

1.66

(1.02)

1.52

Total

from

investment

operations

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

1.54

1.28

1.93

(0.70)

1.71

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.37)

(0.21)

(0.28)

(0.33)

(0.23)

Net

realized

gains

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

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(1.67)

(0.46)

(0.47)

(0.75)

(0.23)

Net

asset

value,

end

of

year

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

$13.67

$13.80

$12.98

$11.52

$12.97

Total

return

d

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

11.21%

10.26%

16.85%

(5.46)%

14.95%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.76%

0.77%

0.80%

0.77%

0.80%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.47%

0.45%

f

0.35%

0.30%

f

0.30%

Net

investment

income

c

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

1.57%

1.53%

2.15%

2.41%

1.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$118,521

$96,973

$86,084

$76,050

$77,510

Portfolio

turnover

rate

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

69.35%

66.87%

84.18%

52.98%

34.08%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

80

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.56

$12.76

$11.34

$12.77

$11.32

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.10

0.09

0.17

0.20

0.09

Net

realized

and

unrealized

gains

(losses)

...........

1.30

1.08

1.62

(0.97)

1.50

Total

from

investment

operations

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

1.40

1.17

1.79

(0.77)

1.59

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.12)

(0.18)

(0.24)

(0.14)

Net

realized

gains

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

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(1.56)

(0.37)

(0.37)

(0.66)

(0.14)

Net

asset

value,

end

of

year

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

$13.40

$13.56

$12.76

$11.34

$12.77

Total

return

d

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

10.40%

9.44%

15.90%

(6.12)%

14.06%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.50%

1.51%

1.55%

1.51%

1.55%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

1.20%

f

1.10%

1.04%

f

1.05%

Net

investment

income

c

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

0.70%

0.76%

1.40%

1.67%

0.77%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$17,778

$21,991

$23,450

$21,907

$27,301

Portfolio

turnover

rate

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

69.35%

66.87%

84.18%

52.98%

34.08%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

81

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.75

$12.93

$11.48

$12.93

$11.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.16

0.23

0.26

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.31

1.09

1.65

(0.99)

1.54

Total

from

investment

operations

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

1.49

1.25

1.88

(0.73)

1.68

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.33)

(0.18)

(0.24)

(0.30)

(0.19)

Net

realized

gains

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

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(1.63)

(0.43)

(0.43)

(0.72)

(0.19)

Net

asset

value,

end

of

year

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

$13.61

$13.75

$12.93

$11.48

$12.93

Total

return

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

10.89%

10.00%

16.52%

(5.73)%

14.73%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.01%

1.02%

1.05%

1.02%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.72%

0.70%

e

0.60%

0.55%

e

0.55%

Net

investment

income

c

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

1.26%

1.24%

1.90%

2.16%

1.27%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,069

$3,117

$3,930

$4,510

$6,166

Portfolio

turnover

rate

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

69.35%

66.87%

84.18%

52.98%

34.08%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

82

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.85

$13.02

$11.56

$13.01

$11.52

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.19

0.23

0.31

0.34

0.23

Net

realized

and

unrealized

gains

(losses)

...........

1.39

1.10

1.65

(1.00)

1.53

Total

from

investment

operations

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

1.58

1.33

1.96

(0.66)

1.76

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.41)

(0.25)

(0.31)

(0.37)

(0.27)

Net

realized

gains

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

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(1.71)

(0.50)

(0.50)

(0.79)

(0.27)

Net

asset

value,

end

of

year

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

$13.72

$13.85

$13.02

$11.56

$13.01

Total

return

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

11.49%

10.64%

17.14%

(5.15)%

15.34%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.39%

0.39%

0.41%

0.38%

0.37%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.15%

0.15%

e

0.05%

—%

e

—%

Net

investment

income

c

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

1.34%

1.83%

2.45%

2.71%

1.82%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$544

$16,094

$14,717

$14,228

$17,009

Portfolio

turnover

rate

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

69.35%

66.87%

84.18%

52.98%

34.08%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

83

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.83

$13.01

$11.55

$13.00

$11.51

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.26

0.24

0.30

0.33

0.23

Net

realized

and

unrealized

gains

(losses)

...........

1.32

1.07

1.66

(1.00)

1.52

Total

from

investment

operations

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

1.58

1.31

1.96

(0.67)

1.75

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.40)

(0.24)

(0.31)

(0.36)

(0.26)

Net

realized

gains

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

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(1.70)

(0.49)

(0.50)

(0.78)

(0.26)

Net

asset

value,

end

of

year

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

$13.71

$13.83

$13.01

$11.55

$13.00

Total

return

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

11.53%

10.51%

17.09%

(5.20)%

15.30%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.51%

0.52%

0.55%

0.52%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.22%

0.20%

e

0.10%

0.05%

e

0.05%

Net

investment

income

c

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

1.80%

1.90%

2.40%

2.66%

1.77%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,055

$2,872

$1,532

$1,449

$1,866

Portfolio

turnover

rate

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

69.35%

66.87%

84.18%

52.98%

34.08%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.2%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

34,184

$

739,420

Domestic

Equity

44.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

199,569

7,900,941

a

Franklin

Growth

Fund,

Class

R6

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

105,629

15,972,227

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

68,528

3,222,872

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

2,107,285

31,756,777

Vanguard

S&P

500

ETF

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

9,130

3,985,884

62,838,701

Domestic

Fixed

Income

34.7%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

255,448

2,825,250

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

159,710

4,185,999

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

71,833

1,852,156

a

Franklin

Liberty

Senior

Loan

ETF

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

93,257

2,329,560

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

843,467

21,191,518

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

155,772

3,722,764

Schwab

U.S.

TIPS

ETF

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

59,207

3,723,528

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

589,890

7,031,491

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

722,246

2,802,314

49,664,580

Foreign

Equity

18.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

278,552

3,097,498

a

Franklin

FTSE

Europe

ETF

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

32,953

968,159

a

Franklin

International

Core

Equity

(IU)

Fund

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

872,573

10,898,437

a

Franklin

International

Growth

Fund,

Class

R6

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

88,265

1,895,053

iShares

Core

MSCI

EAFE

ETF

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

25,300

1,888,392

a

Templeton

Developing

Markets

Trust,

Class

R6

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

136,128

3,024,775

a

Templeton

Foreign

Fund,

Class

R6

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

564,376

3,978,852

25,751,166

Foreign

Fixed

Income

2.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

113,263

2,773,811

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$119,747,126)

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

141,767,678

a

a

a

a

Short

Term

Investments

0.9%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

13

13

Total

Money

Market

Funds

(Cost

$13)

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

13

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

85

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.9%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$1,282,598)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$543,257)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$65,695)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$673,646)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$1,308,633)

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

$

1,282,595

$

1,282,595

Total

Repurchase

Agreements

(Cost

$1,282,595)

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

1,282,595

Total

Short

Term

Investments

(Cost

$1,282,608

)

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

1,282,608

a

Total

Investments

(Cost

$121,029,734)

100.1%

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

$143,050,286

Other

Assets,

less

Liabilities

(0.1)%

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

(83,773)

Net

Assets

100.0%

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

$142,966,513

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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.

86

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.40

$13.28

$11.50

$12.70

$11.08

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.19

0.25

0.29

0.19

Net

realized

and

unrealized

gains

(losses)

...........

1.61

1.29

1.90

(1.09)

1.65

Total

from

investment

operations

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

1.85

1.48

2.15

(0.80)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.41)

(0.22)

(0.23)

(0.32)

(0.22)

Net

realized

gains

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

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(2.04)

(0.36)

(0.37)

(0.40)

(0.22)

Net

asset

value,

end

of

year

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

$14.21

$14.40

$13.28

$11.50

$12.70

Total

return

d

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

12.91%

11.52%

18.80%

(6.32)%

16.73%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.93%

0.95%

1.02%

0.98%

1.08%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.46%

0.44%

f

0.34%

f

0.30%

f

0.30%

Net

investment

income

c

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

1.57%

1.46%

1.96%

2.24%

1.60%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$49,835

$34,019

$27,248

$22,447

$19,270

Portfolio

turnover

rate

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

82.69%

67.25%

93.46%

47.37%

37.45%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

87

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.22

$13.13

$11.37

$12.56

$10.97

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.11

0.09

0.15

0.18

0.11

Net

realized

and

unrealized

gains

(losses)

...........

1.61

1.27

1.89

(1.06)

1.63

Total

from

investment

operations

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

1.72

1.36

2.04

(0.88)

1.74

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.31)

(0.13)

(0.14)

(0.23)

(0.15)

Net

realized

gains

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

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(1.94)

(0.27)

(0.28)

(0.31)

(0.15)

Net

asset

value,

end

of

year

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

$14.00

$14.22

$13.13

$11.37

$12.56

Total

return

d

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

12.13%

10.60%

17.98%

(7.02)%

15.89%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.68%

1.70%

1.77%

1.73%

1.83%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

1.19%

f

1.09%

f

1.05%

f

1.05%

Net

investment

income

c

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

0.74%

0.71%

1.21%

1.49%

0.85%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$12,281

$10,937

$9,146

$7,460

$7,642

Portfolio

turnover

rate

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

82.69%

67.25%

93.46%

47.37%

37.45%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

88

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.38

$13.27

$11.48

$12.68

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.20

0.15

0.22

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.61

1.29

1.91

(1.06)

1.65

Total

from

investment

operations

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

1.81

1.44

2.13

(0.83)

1.80

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.37)

(0.19)

(0.20)

(0.29)

(0.18)

Net

realized

gains

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

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(2.00)

(0.33)

(0.34)

(0.37)

(0.18)

Net

asset

value,

end

of

year

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

$14.19

$14.38

$13.27

$11.48

$12.68

Total

return

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

12.65%

11.17%

18.64%

(6.59)%

16.39%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.18%

1.20%

1.27%

1.23%

1.33%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.71%

0.69%

e

0.59%

e

0.55%

e

0.55%

Net

investment

income

c

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

1.29%

1.19%

1.71%

1.99%

1.35%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,512

$1,186

$1,058

$816

$1,148

Portfolio

turnover

rate

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

82.69%

67.25%

93.46%

47.37%

37.45%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

89

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.46

$13.34

$11.54

$12.74

$11.12

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.23

0.29

0.32

0.23

Net

realized

and

unrealized

gains

(losses)

...........

1.72

1.29

1.92

(1.08)

1.65

Total

from

investment

operations

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

1.90

1.52

2.21

(0.76)

1.88

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.45)

(0.26)

(0.27)

(0.36)

(0.26)

Net

realized

gains

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

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(2.08)

(0.40)

(0.41)

(0.44)

(0.26)

Net

asset

value,

end

of

year

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

$14.28

$14.46

$13.34

$11.54

$12.74

Total

return

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

13.24%

11.80%

19.26%

(6.02)%

17.01%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.45%

0.50%

0.53%

0.52%

0.54%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.15%

0.15%

e

0.04%

e

—%

e

—%

Net

investment

income

c

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

1.20%

1.72%

2.26%

2.54%

1.90%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$40

$23,717

$22,064

$18,389

$18,260

Portfolio

turnover

rate

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

82.69%

67.25%

93.46%

47.37%

37.45%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

90

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.44

$13.33

$11.53

$12.73

$11.11

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.28

0.23

0.28

0.31

0.23

Net

realized

and

unrealized

gains

(losses)

...........

1.62

1.28

1.92

(1.08)

1.64

Total

from

investment

operations

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

1.90

1.51

2.20

(0.77)

1.87

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.44)

(0.26)

(0.26)

(0.35)

(0.25)

Net

realized

gains

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

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(2.07)

(0.40)

(0.40)

(0.43)

(0.25)

Net

asset

value,

end

of

year

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

$14.27

$14.44

$13.33

$11.53

$12.73

Total

return

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

13.28%

11.68%

19.22%

(6.08)%

16.97%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.68%

0.70%

0.77%

0.73%

0.83%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.21%

0.19%

e

0.09%

e

0.05%

e

0.05%

Net

investment

income

c

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

1.81%

1.74%

2.21%

2.49%

1.85%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,937

$1,546

$997

$785

$662

Portfolio

turnover

rate

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

82.69%

67.25%

93.46%

47.37%

37.45%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

91

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.8%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

15,737

$

340,401

Domestic

Equity

49.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

101,016

3,999,208

a

Franklin

Growth

Fund,

Class

R6

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

54,781

8,283,384

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

35,457

1,667,543

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,079,878

16,273,762

Vanguard

S&P

500

ETF

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

4,755

2,075,890

32,299,787

Domestic

Fixed

Income

26.2%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

85,883

949,870

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

55,452

1,453,397

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

24,908

642,233

a

Franklin

Liberty

Senior

Loan

ETF

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

32,366

808,503

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

293,962

7,385,589

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

54,090

1,292,686

Schwab

U.S.

TIPS

ETF

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

20,517

1,290,314

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

200,233

2,386,772

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

245,242

951,538

17,160,902

Foreign

Equity

21.4%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

152,159

1,692,004

a

Franklin

FTSE

Europe

ETF

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

17,807

523,170

a

Franklin

International

Core

Equity

(IU)

Fund

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

478,222

5,972,992

a

Franklin

International

Growth

Fund,

Class

R6

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

47,849

1,027,329

iShares

Core

MSCI

EAFE

ETF

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

13,550

1,011,372

a

Templeton

Developing

Markets

Trust,

Class

R6

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

74,965

1,665,712

a

Templeton

Foreign

Fund,

Class

R6

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

304,922

2,149,699

14,042,278

Foreign

Fixed

Income

1.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

38,907

952,832

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$54,190,531)

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

64,796,200

a

a

a

a

Short

Term

Investments

1.3%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

6

6

Total

Money

Market

Funds

(Cost

$6)

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

6

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.

92

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

1.3%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$848,191)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$359,260)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$43,444)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$445,487)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$865,408)

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

$

848,189

$

848,189

Total

Repurchase

Agreements

(Cost

$848,189)

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

848,189

Total

Short

Term

Investments

(Cost

$848,195

)

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

848,195

a

Total

Investments

(Cost

$55,038,726)

100.1%

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

$65,644,395

Other

Assets,

less

Liabilities

(0.1)%

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

(39,659)

Net

Assets

100.0%

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

$65,604,736

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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

93

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.18

$13.94

$12.03

$13.70

$11.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.19

0.24

0.29

0.20

Net

realized

and

unrealized

gains

(losses)

...........

1.90

1.61

2.19

(1.21)

1.92

Total

from

investment

operations

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

2.14

1.80

2.43

(0.92)

2.12

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.42)

(0.20)

(0.24)

(0.30)

(0.28)

Net

realized

gains

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

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(2.65)

(0.56)

(0.52)

(0.75)

(0.28)

Net

asset

value,

end

of

year

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

$14.67

$15.18

$13.94

$12.03

$13.70

Total

return

d

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

14.20%

13.44%

20.36%

(6.87)%

17.93%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.81%

0.81%

0.86%

0.81%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.47%

0.43%

f

0.34%

0.30%

f

0.30%

Net

investment

income

c

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

1.45%

1.38%

1.81%

2.04%

1.55%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$104,174

$84,029

$72,425

$60,087

$61,238

Portfolio

turnover

rate

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

69.46%

47.82%

79.04%

47.85%

31.98%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

94

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.79

$13.60

$11.75

$13.40

$11.61

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.08

0.14

0.16

0.10

Net

realized

and

unrealized

gains

(losses)

...........

1.88

1.58

2.13

(1.16)

1.88

Total

from

investment

operations

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

1.97

1.66

2.27

(1.00)

1.98

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.30)

(0.11)

(0.14)

(0.20)

(0.19)

Net

realized

gains

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

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(2.53)

(0.47)

(0.42)

(0.65)

(0.19)

Net

asset

value,

end

of

year

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

$14.23

$14.79

$13.60

$11.75

$13.40

Total

return

d

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

13.36%

12.62%

19.46%

(7.58)%

17.09%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.55%

1.56%

1.61%

1.56%

1.60%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

1.18%

f

1.09%

1.05%

f

1.04%

Net

investment

income

c

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

0.60%

0.60%

1.06%

1.29%

0.81%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$18,502

$21,329

$21,115

$18,350

$21,451

Portfolio

turnover

rate

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

69.46%

47.82%

79.04%

47.85%

31.98%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

95

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.17

$13.92

$12.01

$13.69

$11.84

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.15

0.20

0.24

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.91

1.63

2.20

(1.20)

1.94

Total

from

investment

operations

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

2.09

1.78

2.40

(0.96)

2.09

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.37)

(0.17)

(0.21)

(0.27)

(0.24)

Net

realized

gains

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

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(2.60)

(0.53)

(0.49)

(0.72)

(0.24)

Net

asset

value,

end

of

year

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

$14.66

$15.17

$13.92

$12.01

$13.69

Total

return

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

13.87%

13.23%

20.10%

(7.18)%

17.71%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.05%

1.05%

1.10%

1.05%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.71%

0.68%

e

0.58%

0.54%

e

0.55%

Net

investment

income

c

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

1.08%

1.07%

1.57%

1.80%

1.30%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,113

$4,530

$4,966

$4,762

$5,745

Portfolio

turnover

rate

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

69.46%

47.82%

79.04%

47.85%

31.98%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

96

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.31

$14.05

$12.12

$13.80

$11.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.23

0.29

0.31

0.25

Net

realized

and

unrealized

gains

(losses)

...........

2.02

1.63

2.20

(1.20)

1.93

Total

from

investment

operations

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

2.20

1.86

2.49

(0.89)

2.18

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.47)

(0.24)

(0.28)

(0.34)

(0.32)

Net

realized

gains

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

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(2.70)

(0.60)

(0.56)

(0.79)

(0.32)

Net

asset

value,

end

of

year

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

$14.81

$15.31

$14.05

$12.12

$13.80

Total

return

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

14.46%

13.82%

20.73%

(6.63)%

18.31%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.38%

0.40%

0.41%

0.39%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.14%

0.13%

e

0.04%

—%

e

—%

Net

investment

income

c

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

1.10%

1.66%

2.11%

2.34%

1.85%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$93

$30,069

$28,513

$22,207

$26,497

Portfolio

turnover

rate

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

69.46%

47.82%

79.04%

47.85%

31.98%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

97

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.33

$14.07

$12.13

$13.81

$11.95

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.27

0.23

0.28

0.32

0.23

Net

realized

and

unrealized

gains

(losses)

...........

1.93

1.63

2.21

(1.22)

1.94

Total

from

investment

operations

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

2.20

1.86

2.49

(0.90)

2.17

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.46)

(0.24)

(0.27)

(0.33)

(0.31)

Net

realized

gains

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

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(2.69)

(0.60)

(0.55)

(0.78)

(0.31)

Net

asset

value,

end

of

year

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

$14.84

$15.33

$14.07

$12.13

$13.81

Total

return

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

14.46%

13.75%

20.73%

(6.67)%

18.24%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.56%

0.56%

0.61%

0.56%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.21%

0.18%

e

0.09%

0.05%

e

0.05%

Net

investment

income

c

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

1.67%

1.67%

2.06%

2.29%

1.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,911

$3,438

$2,145

$1,723

$1,578

Portfolio

turnover

rate

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

69.46%

47.82%

79.04%

47.85%

31.98%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.0%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

31,195

$

674,767

Domestic

Equity

54.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

225,369

8,922,369

a

Franklin

Growth

Fund,

Class

R6

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

118,728

17,952,826

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

77,333

3,636,971

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

2,254,943

33,981,989

Vanguard

S&P

500

ETF

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

14,117

6,163,059

70,657,214

Domestic

Fixed

Income

18.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

146,065

1,615,481

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

77,378

2,028,077

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

34,787

896,955

a

Franklin

Liberty

Senior

Loan

ETF

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

45,176

1,128,497

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

402,776

10,119,465

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

75,407

1,802,137

Schwab

U.S.

TIPS

ETF

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

28,700

1,804,943

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

286,177

3,411,230

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

350,339

1,359,316

24,166,101

Foreign

Equity

24.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

393,141

4,371,726

a

Franklin

FTSE

Europe

ETF

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

39,879

1,171,645

a

Franklin

International

Core

Equity

(IU)

Fund

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

1,079,874

13,487,630

a

Franklin

International

Growth

Fund,

Class

R6

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

106,716

2,291,201

iShares

Core

MSCI

EAFE

ETF

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

30,425

2,270,922

a

Templeton

Developing

Markets

Trust,

Class

R6

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

190,525

4,233,465

a

Templeton

Foreign

Fund,

Class

R6

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

652,482

4,599,997

32,426,586

Foreign

Fixed

Income

1.2%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

64,646

1,583,181

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$102,990,618)

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

129,507,849

a

a

a

a

Short

Term

Investments

1.0%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

9

9

Total

Money

Market

Funds

(Cost

$9)

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

9

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

99

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

1.0%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$1,320,366)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$559,254)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$67,629)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$693,483)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$1,347,167)

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

$

1,320,363

$

1,320,363

Total

Repurchase

Agreements

(Cost

$1,320,363)

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

1,320,363

Total

Short

Term

Investments

(Cost

$1,320,372

)

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

1,320,372

a

Total

Investments

(Cost

$104,310,990)

100.0%

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

$130,828,221

Other

Assets,

less

Liabilities

(0.0)%

†

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

(34,344)

Net

Assets

100.0%

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

$130,793,877

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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.

100

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.30

$13.76

$11.61

$13.03

$11.20

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.18

0.22

0.27

0.18

Net

realized

and

unrealized

gains

(losses)

...........

2.19

1.82

2.25

(1.17)

1.88

Total

from

investment

operations

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

2.43

2.00

2.47

(0.90)

2.06

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.43)

(0.23)

(0.18)

(0.30)

(0.23)

Net

realized

gains

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

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(3.31)

(0.46)

(0.32)

(0.52)

(0.23)

Net

asset

value,

end

of

year

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

$14.42

$15.30

$13.76

$11.61

$13.03

Total

return

d

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

15.99%

15.04%

21.50%

(7.00)%

18.50%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.11%

1.11%

1.18%

1.14%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.46%

0.43%

f

0.34%

f

0.30%

f

0.30%

Net

investment

income

c

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

1.43%

1.30%

1.67%

2.03%

1.55%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$35,193

$24,809

$19,322

$15,921

$14,001

Portfolio

turnover

rate

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

86.92%

37.54%

90.08%

41.77%

39.11%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

101

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.02

$13.52

$11.42

$12.83

$11.05

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.10

0.07

0.12

0.16

0.11

Net

realized

and

unrealized

gains

(losses)

...........

2.18

1.79

2.21

(1.14)

1.83

Total

from

investment

operations

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

2.28

1.86

2.33

(0.98)

1.94

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.32)

(0.13)

(0.09)

(0.21)

(0.16)

Net

realized

gains

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

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(3.20)

(0.36)

(0.23)

(0.43)

(0.16)

Net

asset

value,

end

of

year

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

$14.10

$15.02

$13.52

$11.42

$12.83

Total

return

d

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

15.25%

14.15%

20.56%

(7.71)%

17.63%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.85%

1.86%

1.93%

1.89%

2.01%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

1.18%

f

1.09%

f

1.05%

f

1.05%

Net

investment

income

c

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

0.62%

0.55%

0.92%

1.28%

0.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$7,989

$6,867

$5,630

$4,286

$4,015

Portfolio

turnover

rate

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

86.92%

37.54%

90.08%

41.77%

39.11%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

102

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.28

$13.74

$11.60

$13.02

$11.17

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.14

0.18

0.22

0.13

Net

realized

and

unrealized

gains

(losses)

...........

2.21

1.82

2.25

(1.16)

1.91

Total

from

investment

operations

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

2.39

1.96

2.43

(0.94)

2.04

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.38)

(0.19)

(0.15)

(0.26)

(0.19)

Net

realized

gains

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

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(3.26)

(0.42)

(0.29)

(0.48)

(0.19)

Net

asset

value,

end

of

year

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

$14.41

$15.28

$13.74

$11.60

$13.02

Total

return

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

15.78%

14.74%

21.13%

(7.27)%

18.31%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.35%

1.36%

1.43%

1.39%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.71%

0.68%

e

0.59%

e

0.55%

e

0.55%

Net

investment

income

c

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

1.09%

1.02%

1.42%

1.78%

1.30%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,806

$1,540

$1,528

$1,273

$1,519

Portfolio

turnover

rate

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

86.92%

37.54%

90.08%

41.77%

39.11%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

103

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.40

$13.85

$11.69

$13.11

$11.26

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.21

0.25

0.30

0.23

Net

realized

and

unrealized

gains

(losses)

...........

2.33

1.84

2.27

(1.16)

1.89

Total

from

investment

operations

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

2.50

2.05

2.52

(0.86)

2.12

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.48)

(0.27)

(0.22)

(0.34)

(0.27)

Net

realized

gains

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

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(3.36)

(0.50)

(0.36)

(0.56)

(0.27)

Net

asset

value,

end

of

year

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

$14.54

$15.40

$13.85

$11.69

$13.11

Total

return

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

16.42%

15.35%

21.89%

(6.77)%

18.92%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.49%

0.55%

0.58%

0.58%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.14%

0.13%

e

0.04%

e

—%

e

—%

Net

investment

income

c

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

1.01%

1.58%

1.97%

2.33%

1.85%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$310

$25,450

$22,250

$18,247

$17,521

Portfolio

turnover

rate

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

86.92%

37.54%

90.08%

41.77%

39.11%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

104

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.37

$13.82

$11.67

$13.10

$11.25

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.29

0.22

0.33

0.27

0.22

Net

realized

and

unrealized

gains

(losses)

...........

2.21

1.82

2.18

(1.15)

1.89

Total

from

investment

operations

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

2.50

2.04

2.51

(0.88)

2.11

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.47)

(0.26)

(0.22)

(0.33)

(0.26)

Net

realized

gains

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

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(3.35)

(0.49)

(0.36)

(0.55)

(0.26)

Net

asset

value,

end

of

year

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

$14.52

$15.37

$13.82

$11.67

$13.10

Total

return

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

16.40%

15.33%

21.68%

(6.82)%

18.88%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.86%

0.86%

0.93%

0.89%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.22%

0.18%

e

0.09%

e

0.05%

e

0.05%

Net

investment

income

c

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

1.75%

1.60%

1.92%

2.28%

1.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$937

$506

$146

$165

$155

Portfolio

turnover

rate

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

86.92%

37.54%

90.08%

41.77%

39.11%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

105

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

11,080

$

239,667

Domestic

Equity

59.3%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

85,830

3,398,026

a

Franklin

Growth

Fund,

Class

R6

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

47,272

7,148,048

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

30,211

1,420,823

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

824,966

12,432,235

Vanguard

S&P

500

ETF

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

6,885

3,005,784

27,404,916

Domestic

Fixed

Income

10.9%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

17,257

452,306

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

7,782

200,653

a

Franklin

Liberty

Senior

Loan

ETF

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

10,062

251,349

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

91,226

2,291,989

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

16,839

402,432

Schwab

U.S.

TIPS

ETF

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

6,413

403,314

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

62,113

740,382

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

76,150

295,463

5,037,888

Foreign

Equity

28.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

156,016

1,734,895

a

Franklin

FTSE

Europe

ETF

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

16,083

472,518

a

Franklin

International

Core

Equity

(IU)

Fund

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

423,187

5,285,608

a

Franklin

International

Growth

Fund,

Class

R6

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

42,958

922,300

iShares

Core

MSCI

EAFE

ETF

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

12,275

916,206

a

Templeton

Developing

Markets

Trust,

Class

R6

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

77,363

1,719,000

a

Templeton

Foreign

Fund,

Class

R6

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

268,572

1,893,431

12,943,958

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$35,472,788)

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

45,626,429

a

a

a

a

Short

Term

Investments

1.4%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

4

4

Total

Money

Market

Funds

(Cost

$4)

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

4

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.

106

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

1.4%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$626,365)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$265,304)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$32,082)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$328,979)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$639,079)

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

$

626,364

$

626,364

Total

Repurchase

Agreements

(Cost

$626,364)

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

626,364

Total

Short

Term

Investments

(Cost

$626,368

)

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

626,368

a

Total

Investments

(Cost

$36,099,156)

100.1%

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

$46,252,797

Other

Assets,

less

Liabilities

(0.1)%

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

(18,239)

Net

Assets

100.0%

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

$46,234,558

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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

107

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.80

$14.27

$12.04

$13.78

$11.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.17

0.21

0.27

0.20

Net

realized

and

unrealized

gains

(losses)

...........

2.45

1.98

2.45

(1.26)

2.01

Total

from

investment

operations

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

2.68

2.15

2.66

(0.99)

2.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.45)

(0.19)

(0.21)

(0.27)

(0.29)

Net

realized

gains

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

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(3.29)

(0.62)

(0.43)

(0.75)

(0.29)

Net

asset

value,

end

of

year

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

$15.19

$15.80

$14.27

$12.04

$13.78

Total

return

d

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

17.06%

15.76%

22.33%

(7.42)%

18.72%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.91%

0.94%

0.98%

0.93%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.46%

0.43%

f

0.34%

f

0.30%

f

0.30%

Net

investment

income

c

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

1.32%

1.22%

1.57%

1.91%

1.53%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$72,764

$59,801

$51,412

$44,978

$46,783

Portfolio

turnover

rate

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

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

108

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.33

$13.88

$11.72

$13.44

$11.57

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.08

0.06

0.11

0.15

0.10

Net

realized

and

unrealized

gains

(losses)

...........

2.38

1.94

2.38

(1.22)

1.96

Total

from

investment

operations

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

2.46

2.00

2.49

(1.07)

2.06

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.34)

(0.12)

(0.11)

(0.17)

(0.19)

Net

realized

gains

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

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(3.18)

(0.55)

(0.33)

(0.65)

(0.19)

Net

asset

value,

end

of

year

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

$14.61

$15.33

$13.88

$11.72

$13.44

Total

return

d

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

16.10%

15.00%

21.35%

(8.07)%

17.92%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.66%

1.68%

1.73%

1.67%

1.75%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

1.17%

f

1.09%

f

1.04%

f

1.04%

Net

investment

income

c

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

0.48%

0.46%

0.82%

1.17%

0.79%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$13,509

$14,502

$13,333

$11,738

$13,190

Portfolio

turnover

rate

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

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

109

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.74

$14.20

$11.98

$13.72

$11.81

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.19

0.11

0.17

0.23

0.17

Net

realized

and

unrealized

gains

(losses)

...........

2.43

2.01

2.45

(1.25)

2.00

Total

from

investment

operations

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

2.62

2.12

2.62

(1.02)

2.17

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.41)

(0.15)

(0.18)

(0.24)

(0.26)

Net

realized

gains

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

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(3.25)

(0.58)

(0.40)

(0.72)

(0.26)

Net

asset

value,

end

of

year

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

$15.11

$15.74

$14.20

$11.98

$13.72

Total

return

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

16.73%

15.55%

21.95%

(7.61)%

18.43%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.16%

1.18%

1.22%

1.17%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.71%

0.67%

e

0.58%

e

0.54%

e

0.55%

Net

investment

income

c

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

1.08%

0.80%

1.33%

1.67%

1.28%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,348

$2,620

$4,838

$5,146

$5,464

Portfolio

turnover

rate

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

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

110

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.93

$14.38

$12.12

$13.88

$11.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.15

0.21

0.27

0.30

0.25

Net

realized

and

unrealized

gains

(losses)

...........

2.60

2.01

2.46

(1.27)

2.02

Total

from

investment

operations

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

2.75

2.22

2.73

(0.97)

2.27

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.50)

(0.24)

(0.25)

(0.31)

(0.33)

Net

realized

gains

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

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(3.34)

(0.67)

(0.47)

(0.79)

(0.33)

Net

asset

value,

end

of

year

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

$15.34

$15.93

$14.38

$12.12

$13.88

Total

return

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

17.37%

16.11%

22.69%

(7.16)%

19.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.41%

0.44%

0.46%

0.46%

0.43%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.14%

0.13%

e

0.04%

e

—%

e

—%

Net

investment

income

c

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

0.87%

1.52%

1.87%

2.21%

1.83%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4

$23,504

$20,022

$12,681

$13,787

Portfolio

turnover

rate

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

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

111

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.93

$14.38

$12.13

$13.88

$11.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.28

0.21

0.25

0.31

0.23

Net

realized

and

unrealized

gains

(losses)

...........

2.46

2.00

2.46

(1.28)

2.03

Total

from

investment

operations

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

2.74

2.21

2.71

(0.97)

2.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.49)

(0.23)

(0.24)

(0.30)

(0.32)

Net

realized

gains

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

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(3.33)

(0.66)

(0.46)

(0.78)

(0.32)

Net

asset

value,

end

of

year

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

$15.34

$15.93

$14.38

$12.13

$13.88

Total

return

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

17.32%

16.06%

22.53%

(7.13)%

19.04%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.67%

0.69%

0.73%

0.68%

0.76%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.22%

0.18%

e

0.09%

e

0.05%

e

0.05%

Net

investment

income

c

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

1.63%

1.49%

1.82%

2.16%

1.78%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,584

$1,089

$819

$639

$602

Portfolio

turnover

rate

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

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.1%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

21,830

$

472,196

Domestic

Equity

62.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

181,649

7,191,500

a

Franklin

Growth

Fund,

Class

R6

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

97,317

14,715,308

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

62,735

2,950,427

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,774,949

26,748,484

Vanguard

S&P

500

ETF

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

12,511

5,461,927

57,067,646

Domestic

Fixed

Income

4.4%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

80,470

2,021,752

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

170,194

2,028,708

4,050,460

Foreign

Equity

31.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

372,087

4,137,604

a

Franklin

FTSE

Europe

ETF

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

34,540

1,014,785

a

Franklin

International

Core

Equity

(IU)

Fund

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

931,857

11,638,898

a

Franklin

International

Growth

Fund,

Class

R6

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

92,423

1,984,318

iShares

Core

MSCI

EAFE

ETF

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

26,425

1,972,362

a

Templeton

Developing

Markets

Trust,

Class

R6

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

181,407

4,030,870

a

Templeton

Foreign

Fund,

Class

R6

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

573,180

4,040,920

28,819,757

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$68,629,453)

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

90,410,059

a

a

a

a

Short

Term

Investments

1.0%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

6

6

Total

Money

Market

Funds

(Cost

$6)

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

6

Principal

Amount

Repurchase

Agreements

1.0%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$925,677)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$392,080)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$47,413)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$486,184)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$944,467)

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

$

925,675

925,675

Total

Repurchase

Agreements

(Cost

$925,675)

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

925,675

Total

Short

Term

Investments

(Cost

$925,681

)

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

925,681

a

Total

Investments

(Cost

$69,555,134)

100.1%

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

$91,335,740

Other

Assets,

less

Liabilities

(0.1)%

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

(125,472)

Net

Assets

100.0%

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

$91,210,268

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

113

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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™

2050

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.76

$14.01

$11.74

$13.19

$11.29

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.17

0.19

0.27

0.20

Net

realized

and

unrealized

gains

(losses)

...........

2.51

2.03

2.37

(1.23)

1.93

Total

from

investment

operations

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

2.75

2.20

2.56

(0.96)

2.13

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.43)

(0.22)

(0.16)

(0.30)

(0.23)

Net

realized

gains

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

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(3.91)

(0.45)

(0.29)

(0.49)

(0.23)

Net

asset

value,

end

of

year

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

$14.60

$15.76

$14.01

$11.74

$13.19

Total

return

d

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

17.58%

16.22%

22.00%

(7.40)%

18.96%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.28%

1.28%

1.35%

1.30%

1.53%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.45%

0.42%

f

0.34%

f

0.30%

f

0.30%

Net

investment

income

c

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

1.42%

1.23%

1.55%

1.98%

1.62%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$30,413

$20,709

$16,729

$16,856

$13,823

Portfolio

turnover

rate

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

85.61%

35.30%

94.67%

43.18%

35.70%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

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,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.61

$13.91

$11.66

$13.11

$11.24

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.10

0.07

0.11

0.16

0.11

Net

realized

and

unrealized

gains

(losses)

...........

2.49

2.00

2.34

(1.22)

1.91

Total

from

investment

operations

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

2.59

2.07

2.45

(1.06)

2.02

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.32)

(0.14)

(0.07)

(0.20)

(0.15)

Net

realized

gains

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

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(3.80)

(0.37)

(0.20)

(0.39)

(0.15)

Net

asset

value,

end

of

year

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

$14.40

$15.61

$13.91

$11.66

$13.11

Total

return

d

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

16.66%

15.35%

21.13%

(8.12)%

18.03%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.02%

2.03%

2.10%

2.05%

2.28%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.20%

1.17%

f

1.09%

f

1.05%

f

1.05%

Net

investment

income

c

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

0.57%

0.48%

0.80%

1.23%

0.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$8,038

$7,014

$5,658

$4,167

$3,797

Portfolio

turnover

rate

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

85.61%

35.30%

94.67%

43.18%

35.70%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

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,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.76

$14.01

$11.74

$13.19

$11.29

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.13

0.17

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

...........

2.54

2.03

2.36

(1.22)

1.94

Total

from

investment

operations

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

2.71

2.16

2.53

(0.99)

2.10

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.38)

(0.18)

(0.13)

(0.27)

(0.20)

Net

realized

gains

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

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(3.86)

(0.41)

(0.26)

(0.46)

(0.20)

Net

asset

value,

end

of

year

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

$14.61

$15.76

$14.01

$11.74

$13.19

Total

return

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

17.23%

15.92%

21.72%

(7.62)%

18.67%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.51%

1.53%

1.60%

1.55%

1.78%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.70%

0.67%

e

0.59%

e

0.55%

e

0.55%

Net

investment

income

c

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

0.97%

0.91%

1.30%

1.73%

1.37%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,857

$2,468

$2,364

$1,814

$1,608

Portfolio

turnover

rate

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

85.61%

35.30%

94.67%

43.18%

35.70%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

117

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.87

$14.10

$11.80

$13.26

$11.34

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.14

0.21

0.26

0.29

0.24

Net

realized

and

unrealized

gains

(losses)

...........

2.68

2.05

2.37

(1.23)

1.94

Total

from

investment

operations

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

2.82

2.26

2.63

(0.94)

2.18

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.49)

(0.26)

(0.20)

(0.33)

(0.26)

Net

realized

gains

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

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(3.97)

(0.49)

(0.33)

(0.52)

(0.26)

Net

asset

value,

end

of

year

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

$14.72

$15.87

$14.10

$11.80

$13.26

Total

return

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

17.84%

16.59%

22.50%

(7.18)%

19.36%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.51%

0.59%

0.62%

0.65%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.14%

0.12%

e

0.04%

e

—%

e

—%

Net

investment

income

c

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

0.85%

1.54%

1.85%

2.28%

1.92%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2

$22,839

$17,560

$11,800

$12,099

Portfolio

turnover

rate

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

85.61%

35.30%

94.67%

43.18%

35.70%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

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,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.87

$14.10

$11.80

$13.26

$11.35

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.28

0.20

0.24

0.28

0.23

Net

realized

and

unrealized

gains

(losses)

...........

2.53

2.05

2.38

(1.22)

1.94

Total

from

investment

operations

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

2.81

2.25

2.62

(0.94)

2.17

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.48)

(0.25)

(0.19)

(0.33)

(0.26)

Net

realized

gains

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

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(3.96)

(0.48)

(0.32)

(0.52)

(0.26)

Net

asset

value,

end

of

year

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

$14.72

$15.87

$14.10

$11.80

$13.26

Total

return

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

17.77%

16.54%

22.44%

(7.23)%

19.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.03%

1.03%

1.10%

1.05%

1.28%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.20%

0.18%

e

0.09%

e

0.05%

e

0.05%

Net

investment

income

c

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

1.62%

1.45%

1.80%

2.23%

1.87%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$942

$720

$617

$468

$512

Portfolio

turnover

rate

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

85.61%

35.30%

94.67%

43.18%

35.70%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

119

See

Abbreviations

on

page

181

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.3%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

10,497

$

227,056

Domestic

Equity

64.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

84,976

3,364,181

a

Franklin

Growth

Fund,

Class

R6

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

47,653

7,205,622

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

30,499

1,434,368

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

732,115

11,032,966

Vanguard

S&P

500

ETF

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

7,853

3,428,384

26,465,521

Domestic

Fixed

Income

0.5%

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

17,120

204,076

Foreign

Equity

34.1%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

172,290

1,915,868

a

Franklin

FTSE

Europe

ETF

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

17,635

518,116

a

Franklin

International

Core

Equity

(IU)

Fund

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

435,344

5,437,449

a

Franklin

International

Growth

Fund,

Class

R6

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

47,314

1,015,837

iShares

Core

MSCI

EAFE

ETF

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

13,875

1,035,630

a

Templeton

Developing

Markets

Trust,

Class

R6

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

91,529

2,033,777

a

Templeton

Foreign

Fund,

Class

R6

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

299,336

2,110,317

14,066,994

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$31,627,263)

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

40,963,647

a

a

a

a

Short

Term

Investments

0.1%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

4

4

Total

Money

Market

Funds

(Cost

$4)

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

4

Principal

Amount

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$51,907)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$21,985)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$2,659)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$27,263)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$52,961)

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

$

51,907

51,907

Total

Repurchase

Agreements

(Cost

$51,907)

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

51,907

Total

Short

Term

Investments

(Cost

$51,911

)

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

51,911

a

Total

Investments

(Cost

$31,679,174)

99.4%

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

$41,015,558

Other

Assets,

less

Liabilities

0.6%

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

234,566

Net

Assets

100.0%

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

$41,250,124

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

†

Rounds

to

less

than

0.1%

of

net

assets.

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™

2055

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

121

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.41

$11.86

$9.88

$11.05

$9.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.20

0.15

0.18

0.23

0.18

Net

realized

and

unrealized

gains

(losses)

...........

2.12

1.69

2.02

(1.03)

1.62

Total

from

investment

operations

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

2.32

1.84

2.20

(0.80)

1.80

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.40)

(0.19)

(0.12)

(0.20)

(0.19)

Net

realized

gains

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

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(2.52)

(0.29)

(0.22)

(0.37)

(0.22)

Net

asset

value,

end

of

year

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

$13.21

$13.41

$11.86

$9.88

$11.05

Total

return

d

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

17.34%

15.95%

22.39%

(7.37)%

19.06%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.79%

2.03%

2.50%

2.51%

3.18%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.46%

f

0.43%

f

0.34%

0.30%

f

0.30%

Net

investment

income

c

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

1.38%

1.27%

1.65%

2.01%

1.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$17,727

$12,408

$8,254

$6,104

$4,684

Portfolio

turnover

rate

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

87.74%

32.75%

90.64%

42.85%

31.85%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

122

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.18

$11.69

$9.75

$10.92

$9.39

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.06

0.09

0.15

0.12

Net

realized

and

unrealized

gains

(losses)

...........

2.08

1.66

1.99

(1.02)

1.58

Total

from

investment

operations

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

2.17

1.72

2.08

(0.87)

1.70

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.31)

(0.13)

(0.04)

(0.13)

(0.14)

Net

realized

gains

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

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(2.43)

(0.23)

(0.14)

(0.30)

(0.17)

Net

asset

value,

end

of

year

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

$12.92

$13.18

$11.69

$9.75

$10.92

Total

return

d

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

16.49%

15.07%

21.45%

(8.04)%

18.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.54%

2.78%

3.25%

3.26%

3.93%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.21%

f

1.18%

f

1.09%

1.05%

f

1.05%

Net

investment

income

c

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

0.60%

0.51%

0.90%

1.26%

1.00%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$6,236

$5,083

$3,563

$2,338

$1,428

Portfolio

turnover

rate

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

87.74%

32.75%

90.64%

42.85%

31.85%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

123

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.36

$11.82

$9.85

$11.01

$9.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.11

0.15

0.19

0.13

Net

realized

and

unrealized

gains

(losses)

...........

2.10

1.69

2.01

(1.01)

1.63

Total

from

investment

operations

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

2.27

1.80

2.16

(0.82)

1.76

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.36)

(0.16)

(0.09)

(0.17)

(0.16)

Net

realized

gains

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

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(2.48)

(0.26)

(0.19)

(0.34)

(0.19)

Net

asset

value,

end

of

year

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

$13.15

$13.36

$11.82

$9.85

$11.01

Total

return

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

17.07%

15.61%

22.08%

(7.53)%

18.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

2.04%

2.29%

2.75%

2.76%

3.43%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.71%

e

0.67%

e

0.59%

0.55%

e

0.55%

Net

investment

income

c

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

1.16%

0.95%

1.40%

1.76%

1.50%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$936

$580

$539

$425

$354

Portfolio

turnover

rate

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

87.74%

32.75%

90.64%

42.85%

31.85%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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.

124

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.43

$11.87

$9.89

$11.06

$9.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.13

0.18

0.22

0.24

0.22

Net

realized

and

unrealized

gains

(losses)

...........

2.24

1.70

2.01

(1.01)

1.61

Total

from

investment

operations

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

2.37

1.88

2.23

(0.77)

1.83

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.44)

(0.22)

(0.15)

(0.23)

(0.22)

Net

realized

gains

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

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(2.56)

(0.32)

(0.25)

(0.40)

(0.25)

Net

asset

value,

end

of

year

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

$13.24

$13.43

$11.87

$9.89

$11.06

Total

return

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

17.72%

16.34%

22.72%

(7.12)%

19.32%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.67%

0.87%

1.18%

1.35%

1.85%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.12%

e

0.13%

e

0.04%

—%

e

—%

Net

investment

income

c

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

0.87%

1.57%

1.95%

2.31%

2.05%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$8

$12,017

$7,296

$3,573

$3,184

Portfolio

turnover

rate

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

87.74%

32.75%

90.64%

42.85%

31.85%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

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

125

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.42

$11.87

$9.90

$11.06

$9.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.21

0.23

0.25

0.20

Net

realized

and

unrealized

gains

(losses)

...........

2.11

1.66

1.99

(1.02)

1.62

Total

from

investment

operations

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

2.35

1.87

2.22

(0.77)

1.82

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.43)

(0.22)

(0.15)

(0.22)

(0.21)

Net

realized

gains

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

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(2.55)

(0.32)

(0.25)

(0.39)

(0.24)

Net

asset

value,

end

of

year

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

$13.22

$13.42

$11.87

$9.90

$11.06

Total

return

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

17.60%

16.19%

22.67%

(7.16)%

19.27%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.54%

1.77%

2.25%

2.26%

2.93%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.21%

e

0.19%

e

0.09%

0.05%

e

0.05%

Net

investment

income

c

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

1.61%

1.74%

1.90%

2.26%

2.00%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$505

$378

$134

$46

$32

Portfolio

turnover

rate

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

87.74%

32.75%

90.64%

42.85%

31.85%

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,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.4%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

6,105

$

132,055

Domestic

Equity

63.7%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

51,249

2,028,956

a

Franklin

Growth

Fund,

Class

R6

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

28,019

4,236,751

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

17,847

839,344

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

481,291

7,253,054

Vanguard

S&P

500

ETF

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

4,217

1,841,016

16,199,121

Domestic

Fixed

Income

0.5%

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

10,703

127,578

Foreign

Equity

33.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

109,921

1,222,321

a

Franklin

FTSE

Europe

ETF

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

10,305

302,761

a

Franklin

International

Core

Equity

(IU)

Fund

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

273,895

3,420,945

a

Franklin

International

Growth

Fund,

Class

R6

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

27,664

593,953

iShares

Core

MSCI

EAFE

ETF

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

7,875

587,790

a

Templeton

Developing

Markets

Trust,

Class

R6

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

53,726

1,193,793

a

Templeton

Foreign

Fund,

Class

R6

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

175,067

1,234,222

8,555,785

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$19,374,781)

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

25,014,539

a

a

a

a

Short

Term

Investments

0.0%

†

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

2

2

Total

Money

Market

Funds

(Cost

$2)

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

2

Total

Short

Term

Investments

(Cost

$2

)

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

2

a

Total

Investments

(Cost

$19,374,783)

98.4%

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

$25,014,541

Other

Assets,

less

Liabilities

1.6%

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

397,223

Net

Assets

100.0%

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

$25,411,764

See

Abbreviations

on

page

181

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

127

a

Year

Ended

December

31,

2021

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.27

Net

realized

and

unrealized

gains

(losses)

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

1.58

Total

from

investment

operations

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

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.32)

Net

realized

gains

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

(0.27)

Total

distributions

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

(0.59)

Net

asset

value,

end

of

year

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

$11.26

Total

return

e

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

18.52%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

13.83%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.21%

Net

investment

income

d

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

2.34%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$325

Portfolio

turnover

rate

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

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

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

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.26%

for

the

year

ended

December

31,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

a

Year

Ended

December

31,

2021

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.28

Net

realized

and

unrealized

gains

(losses)

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

1.56

Total

from

investment

operations

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

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.32)

Net

realized

gains

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

(0.27)

Total

distributions

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

(0.59)

Net

asset

value,

end

of

year

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

$11.25

Total

return

e

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

18.43%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

14.00%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.21%

Net

investment

income

d

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

2.49%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$68

Portfolio

turnover

rate

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

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

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

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.26%

for

the

year

ended

December

31,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

129

a

Year

Ended

December

31,

2021

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.23

Net

realized

and

unrealized

gains

(losses)

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

1.61

Total

from

investment

operations

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

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.32)

Net

realized

gains

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

(0.27)

Total

distributions

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

(0.59)

Net

asset

value,

end

of

year

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

$11.25

Total

return

e

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

18.42%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

12.86%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.21%

Net

investment

income

d

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

2.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$37

Portfolio

turnover

rate

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

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

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

exchange

traded

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,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.26%

for

the

year

ended

December

31,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

a

Year

Ended

December

31,

2021

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.16

Net

realized

and

unrealized

gains

(losses)

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

1.69

Total

from

investment

operations

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

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.32)

Net

realized

gains

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

(0.27)

Total

distributions

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

(0.59)

Net

asset

value,

end

of

year

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

$11.26

Total

return

e

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

18.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

13.90%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.15%

Net

investment

income

d

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

1.38%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$11

Portfolio

turnover

rate

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

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

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

exchange

traded

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,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.26%

for

the

year

ended

December

31,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

131

a

Year

Ended

December

31,

2021

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.20

Net

realized

and

unrealized

gains

(losses)

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

1.64

Total

from

investment

operations

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

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.32)

Net

realized

gains

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

(0.27)

Total

distributions

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

(0.59)

Net

asset

value,

end

of

year

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

$11.25

Total

return

e

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

18.41%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

14.59%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.20%

Net

investment

income

d

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

1.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,096

Portfolio

turnover

rate

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

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

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

exchange

traded

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,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.26%

for

the

year

ended

December

31,

2021.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.2%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

372

$

8,047

Domestic

Equity

62.8%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

3,072

121,636

a

Franklin

Growth

Fund,

Class

R6

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

1,669

252,340

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

1,079

50,745

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

25,302

381,307

Vanguard

S&P

500

ETF

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

365

159,348

965,376

Domestic

Fixed

Income

0.5%

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

592

7,062

Foreign

Equity

33.4%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

6,390

71,054

a

Franklin

FTSE

Europe

ETF

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

667

19,596

a

Franklin

International

Core

Equity

(IU)

Fund

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

16,279

203,327

a

Franklin

International

Growth

Fund,

Class

R6

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

1,687

36,231

iShares

Core

MSCI

EAFE

ETF

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

500

37,320

a

Templeton

Developing

Markets

Trust,

Class

R6

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

3,226

71,685

a

Templeton

Foreign

Fund,

Class

R6

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

10,621

74,879

514,092

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,405,417)

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

1,494,577

a

a

a

a

Short

Term

Investments

1.1%

a

Money

Market

Funds

1.1%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

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

16,296

16,296

Total

Money

Market

Funds

(Cost

$16,296)

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

16,296

Total

Short

Term

Investments

(Cost

$16,296

)

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

16,296

a

Total

Investments

(Cost

$1,421,713)

98.3%

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

$1,510,873

Other

Assets,

less

Liabilities

1.7%

.............................................

26,036

Net

Assets

100.0%

...........................................................

$1,536,909

See

Abbreviations

on

page

181

.

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,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

133

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$16,699,549

$2,847,017

$9,168,908

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

39,873,084

35,872,191

110,578,231

Cost

-

Unaffiliated

repurchase

agreements

....................

—

454,970

1,282,595

Value

-

Unaffiliated

issuers

................................

$17,583,502

$2,970,585

$9,597,804

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

40,322,528

41,108,152

132,169,887

Value

-

Unaffiliated

repurchase

agreements

....................

—

454,971

1,282,595

Cash

..................................................

—

—

2,237

Receivables:

Investment

securities

sold

.................................

6,931,052

—

—

Capital

shares

sold

......................................

4,519

6,809

47,612

Dividends

and

interest

...................................

66,204

814

3,132

Affiliates

..............................................

11,944

16,199

—

Other

assets

............................................

545

—

—

Total

assets

........................................

64,920,294

44,557,530

143,103,267

Liabilities:

Payables:

Investment

securities

purchased

............................

6,929,482

—

—

Capital

shares

redeemed

.................................

2,405

3,902

52,172

Management

&

Asset

allocation

fees

.........................

—

—

16,932

Distribution

fees

........................................

16,454

13,288

40,907

Reports

to

shareholders

fees

..............................

9,371

10,063

18,655

Professional

fees

.......................................

10,388

8,428

7,494

Accrued

expenses

and

other

liabilities

.........................

487

311

594

Total

liabilities

.......................................

6,968,587

35,992

136,754

Net

assets,

at

value

...............................

$57,951,707

$44,521,538

$142,966,513

Net

assets

consist

of:

Paid-in

capital

...........................................

$56,317,388

$38,688,996

$118,664,017

Total

distributable

earnings

(losses)

...........................

1,634,319

5,832,542

24,302,496

Net

assets,

at

value

...............................

$57,951,707

$44,521,538

$142,966,513

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

134

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$46,058,434

$36,698,062

$118,520,587

Shares

outstanding

......................................

4,003,350

2,822,639

8,670,810

Net

asset

value

per

share

a

................................

$11.50

$13.00

$13.67

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$12.17

$13.76

$14.47

Class

C:

Net

assets,

at

value

.....................................

$6,803,462

$6,234,639

$17,778,222

Shares

outstanding

......................................

598,932

482,999

1,326,792

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.36

$12.91

$13.40

Class

R:

Net

assets,

at

value

.....................................

$2,197,201

$757,713

$3,068,576

Shares

outstanding

......................................

191,644

58,296

225,434

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.47

$13.00

$13.61

Class

R6:

Net

assets,

at

value

.....................................

$55,602

$4,674

$544,097

Shares

outstanding

......................................

4,812

358

39,655

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.55

$13.04

$13.72

Advisor

Class:

Net

assets,

at

value

.....................................

$2,837,008

$826,450

$3,055,031

Shares

outstanding

......................................

245,677

63,342

222,896

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.55

$13.05

$13.71

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,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

135

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

.................................

$4,179,502

$9,653,897

$4,056,501

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

50,011,035

93,336,730

31,416,291

Cost

-

Unaffiliated

repurchase

agreements

....................

848,189

1,320,363

626,364

Value

-

Unaffiliated

issuers

................................

$4,377,576

$10,238,924

$4,325,304

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

60,418,630

119,268,934

41,301,129

Value

-

Unaffiliated

repurchase

agreements

....................

848,189

1,320,363

626,364

Cash

..................................................

—

3,287

—

Receivables:

Capital

shares

sold

......................................

71,448

101,059

16,754

Dividends

and

interest

...................................

1,673

3,763

1,515

Total

assets

........................................

65,717,516

130,936,330

46,271,066

Liabilities:

Payables:

Capital

shares

redeemed

.................................

68,386

65,572

133

Management

&

Asset

allocation

fees

.........................

782

11,117

1,165

Distribution

fees

........................................

21,156

38,804

14,508

Reports

to

shareholders

fees

..............................

13,584

19,099

12,308

Professional

fees

.......................................

8,665

7,404

8,249

Accrued

expenses

and

other

liabilities

.........................

207

457

145

Total

liabilities

.......................................

112,780

142,453

36,508

Net

assets,

at

value

...............................

$65,604,736

$130,793,877

$46,234,558

Net

assets

consist

of:

Paid-in

capital

...........................................

$54,021,115

$101,720,618

$35,067,995

Total

distributable

earnings

(losses)

...........................

11,583,621

29,073,259

11,166,563

Net

assets,

at

value

...............................

$65,604,736

$130,793,877

$46,234,558

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

136

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$49,835,380

$104,174,158

$35,192,728

Shares

outstanding

......................................

3,507,008

7,101,781

2,439,876

Net

asset

value

per

share

a

................................

$14.21

$14.67

$14.42

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$15.04

$15.52

$15.26

Class

C:

Net

assets,

at

value

.....................................

$12,280,858

$18,502,336

$7,989,019

Shares

outstanding

......................................

877,384

1,300,474

566,727

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$14.00

$14.23

$14.10

Class

R:

Net

assets,

at

value

.....................................

$1,512,438

$4,113,030

$1,806,403

Shares

outstanding

......................................

106,605

280,565

125,365

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.19

$14.66

$14.41

Class

R6:

Net

assets,

at

value

.....................................

$39,519

$93,373

$309,844

Shares

outstanding

......................................

2,769

6,303

21,303

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.28

$14.81

$14.54

Advisor

Class:

Net

assets,

at

value

.....................................

$1,936,541

$3,910,980

$936,564

Shares

outstanding

......................................

135,729

263,625

64,515

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.27

$14.84

$14.52

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,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

137

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

.................................

$6,932,617

$4,189,529

$2,262,191

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

61,696,842

27,437,738

17,112,592

Cost

-

Unaffiliated

repurchase

agreements

....................

925,675

51,907

—

Value

-

Unaffiliated

issuers

................................

$7,434,289

$4,464,014

$2,428,806

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

82,975,776

36,499,637

22,585,735

Value

-

Unaffiliated

repurchase

agreements

....................

925,675

51,907

—

Cash

..................................................

—

13

370,047

Receivables:

Investment

securities

sold

.................................

—

178,189

—

Capital

shares

sold

......................................

105,890

1,348,278

58,926

Dividends

and

interest

...................................

3,259

1,629

973

Affiliates

..............................................

—

2,032

2,529

Other

assets

............................................

—

—

420

Total

assets

........................................

91,444,889

42,545,699

25,447,436

Liabilities:

Payables:

Investment

securities

purchased

............................

—

318,392

—

Capital

shares

redeemed

.................................

169,155

939,000

2,988

Management

&

Asset

allocation

fees

.........................

11,628

—

—

Distribution

fees

........................................

27,822

13,659

9,218

Reports

to

shareholders

fees

..............................

18,621

16,356

15,544

Professional

fees

.......................................

7,090

8,054

7,882

Accrued

expenses

and

other

liabilities

.........................

305

114

40

Total

liabilities

.......................................

234,621

1,295,575

35,672

Net

assets,

at

value

...............................

$91,210,268

$41,250,124

$25,411,764

Net

assets

consist

of:

Paid-in

capital

...........................................

$67,331,170

$31,028,990

$19,191,926

Total

distributable

earnings

(losses)

...........................

23,879,098

10,221,134

6,219,838

Net

assets,

at

value

...............................

$91,210,268

$41,250,124

$25,411,764

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

138

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$72,764,418

$30,412,504

$17,727,087

Shares

outstanding

......................................

4,791,414

2,083,582

1,341,817

Net

asset

value

per

share

a

................................

$15.19

$14.60

$13.21

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$16.07

$15.45

$13.98

Class

C:

Net

assets,

at

value

.....................................

$13,509,156

$8,037,644

$6,235,926

Shares

outstanding

......................................

924,461

558,213

482,689

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$14.61

$14.40

$12.92

Class

R:

Net

assets,

at

value

.....................................

$3,348,235

$1,856,702

$936,011

Shares

outstanding

......................................

221,636

127,069

71,171

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.11

$14.61

$13.15

Class

R6:

Net

assets,

at

value

.....................................

$4,262

$1,650

$7,811

Shares

outstanding

......................................

278

111

590

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.34

$14.72

$13.24

Advisor

Class:

Net

assets,

at

value

.....................................

$1,584,197

$941,624

$504,929

Shares

outstanding

......................................

103,259

63,965

38,182

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.34

$14.72

$13.22

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,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

139

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$183,775

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

1,237,938

Value

-

Unaffiliated

issuers

..................................................................

$196,668

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

1,314,205

Receivables:

Capital

shares

sold

........................................................................

1,253

Dividends

...............................................................................

62

Affiliates

................................................................................

25,088

Offering

costs

.............................................................................

8,617

Total

assets

..........................................................................

1,545,893

Liabilities:

Payables:

Professional

fees

.........................................................................

4,152

Offering

costs

.............................................................................

1,900

Funds

advanced

by

custodian

.................................................................

2,318

Accrued

expenses

and

other

liabilities

...........................................................

614

Total

liabilities

.........................................................................

8,984

Net

assets,

at

value

.................................................................

$1,536,909

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$1,412,467

Total

distributable

earnings

(losses)

.............................................................

124,442

Net

assets,

at

value

.................................................................

$1,536,909

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

140

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$324,642

Shares

outstanding

........................................................................

28,825

Net

asset

value

per

share

a

..................................................................

$11.26

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$11.92

Class

C:

Net

assets,

at

value

.......................................................................

$67,519

Shares

outstanding

........................................................................

6,002

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$11.25

Class

R:

Net

assets,

at

value

.......................................................................

$37,358

Shares

outstanding

........................................................................

3,320

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.25

Class

R6:

Net

assets,

at

value

.......................................................................

$11,255

Shares

outstanding

........................................................................

1,000

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.26

Advisor

Class:

Net

assets,

at

value

.......................................................................

$1,096,135

Shares

outstanding

........................................................................

97,438

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.25

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,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

141

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$512,478

$122,042

$361,758

Non-controlled

affiliates

(Note

3

f

)

...........................

1,040,111

806,383

2,517,945

Interest:

Unaffiliated

issuers

......................................

387,814

14

49

Total

investment

income

.................................

1,940,403

928,439

2,879,752

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

146,213

114,098

363,898

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

107,324

84,429

270,219

    Class

C

..............................................

82,839

68,721

204,541

    Class

R

..............................................

10,195

4,376

15,216

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

62,227

43,622

145,978

    Class

C

..............................................

12,098

8,910

27,878

    Class

R

..............................................

3,039

1,138

4,125

    Class

R6

.............................................

1,451

1,698

3,701

    Advisor

Class

..........................................

3,395

972

3,917

Custodian

fees

(Note

4

)

....................................

1,748

124

43

Reports

to

shareholders

fees

................................

13,073

10,879

23,646

Registration

and

filing

fees

..................................

77,627

77,732

81,986

Professional

fees

.........................................

77,212

62,877

61,507

Trustees'

fees

and

expenses

................................

1,670

1,551

2,430

Other

..................................................

6,597

5,177

6,844

Total

expenses

.......................................

606,708

486,304

1,215,929

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(378,522)

(234,387)

(415,822)

Net

expenses

.......................................

228,186

251,917

800,107

Net

investment

income

..............................

1,712,217

676,522

2,079,645

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

1,115,093

554,077

1,698,930

Non-controlled

affiliates

(Note

3

f

)

..........................

2,084,469

2,278,634

10,779,566

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

499,503

1,232,324

4,483,023

Net

realized

gain

(loss)

................................

3,699,065

4,065,035

16,961,519

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

401,138

(119,669)

(266,547)

Non-controlled

affiliates

(Note

3

f

)

..........................

(2,741,470)

(385,390)

(3,137,619)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(2,340,332)

(505,059)

(3,404,166)

Net

realized

and

unrealized

gain

(loss)

..........................

1,358,733

3,559,976

13,557,353

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$3,070,950

$4,236,498

$15,636,998

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

142

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$164,809

$310,113

$122,293

Non-controlled

affiliates

(Note

3

f

)

...........................

1,198,033

2,300,119

837,952

Interest:

Unaffiliated

issuers

......................................

21

43

18

Total

investment

income

.................................

1,362,863

2,610,275

960,263

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

183,226

363,192

145,860

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

104,710

236,079

74,246

    Class

C

..............................................

115,461

205,276

74,531

    Class

R

..............................................

6,583

21,415

8,297

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

80,974

172,839

90,309

    Class

C

..............................................

22,419

37,875

22,745

    Class

R

..............................................

2,549

7,932

5,066

    Class

R6

.............................................

4,752

6,605

5,283

    Advisor

Class

..........................................

2,962

7,025

2,288

Custodian

fees

(Note

4

)

....................................

71

31

18

Reports

to

shareholders

fees

................................

13,809

23,367

12,814

Registration

and

filing

fees

..................................

80,284

80,513

77,173

Professional

fees

.........................................

62,985

61,205

61,536

Trustees'

fees

and

expenses

................................

1,828

2,464

1,709

Other

..................................................

5,371

6,609

4,645

Total

expenses

.......................................

687,984

1,232,427

586,520

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(316,800)

(473,502)

(317,934)

Net

expenses

.......................................

371,184

758,925

268,586

Net

investment

income

..............................

991,679

1,851,350

691,677

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

982,148

1,842,188

889,983

Non-controlled

affiliates

(Note

3

f

)

..........................

6,751,706

16,675,367

7,959,476

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

2,305,411

4,981,048

1,870,148

Net

realized

gain

(loss)

................................

10,039,265

23,498,603

10,719,607

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(163,036)

(106,772)

1,487

Non-controlled

affiliates

(Note

3

f

)

..........................

(1,432,261)

(5,223,983)

(2,016,654)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(1,595,297)

(5,330,755)

(2,015,167)

Net

realized

and

unrealized

gain

(loss)

..........................

8,443,968

18,167,848

8,704,440

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$9,435,647

$20,019,198

$9,396,117

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

143

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$200,765

$108,418

$64,335

Non-controlled

affiliates

(Note

3

f

)

...........................

1,495,079

709,912

438,884

Interest:

Unaffiliated

issuers

......................................

30

15

—

Total

investment

income

.................................

1,695,874

818,345

503,219

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

258,768

131,131

79,610

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

168,206

60,354

38,411

    Class

C

..............................................

142,556

78,865

56,456

    Class

R

..............................................

14,747

12,170

3,932

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

162,572

102,508

113,239

    Class

C

..............................................

34,629

33,652

41,662

    Class

R

..............................................

7,145

10,462

5,792

    Class

R6

.............................................

5,064

5,093

3,479

    Advisor

Class

..........................................

3,241

3,595

3,308

Custodian

fees

(Note

4

)

....................................

65

33

—

Reports

to

shareholders

fees

................................

23,474

15,843

15,335

Registration

and

filing

fees

..................................

79,741

80,124

78,408

Professional

fees

.........................................

60,876

61,018

61,242

Trustees'

fees

and

expenses

................................

2,095

1,649

1,454

Other

..................................................

5,422

4,543

4,030

Total

expenses

.......................................

968,601

601,040

506,358

Expense

reductions

(Note

4

)

.............................

—

—

(2)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(433,915)

(354,510)

(349,364)

Net

expenses

.......................................

534,686

246,530

156,992

Net

investment

income

..............................

1,161,188

571,815

346,227

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

1,635,174

946,021

542,073

Non-controlled

affiliates

(Note

3

f

)

..........................

13,812,126

8,312,466

3,476,713

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

4,024,041

1,746,935

1,124,745

Net

realized

gain

(loss)

................................

19,471,341

11,005,422

5,143,531

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(69,735)

(21,871)

10,858

Non-controlled

affiliates

(Note

3

f

)

..........................

(3,629,684)

(2,296,816)

(13,148)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(3,699,419)

(2,318,687)

(2,290)

Net

realized

and

unrealized

gain

(loss)

..........................

15,771,922

8,686,735

5,141,241

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$16,933,110

$9,258,550

$5,487,468

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

144

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$3,057

Non-controlled

affiliates

(Note

3

f

)

.............................................................

21,328

Total

investment

income

...................................................................

24,385

Expenses:

Management

fees

(Note

3

a

)

...................................................................

2,991

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

341

    Class

C

................................................................................

61

    Class

R

................................................................................

62

    Class

R6

...............................................................................

194

    Advisor

Class

............................................................................

2,440

Reports

to

shareholders

fees

..................................................................

1,567

Registration

and

filing

fees

....................................................................

16,697

Professional

fees

...........................................................................

38,551

Trustees'

fees

and

expenses

..................................................................

9

Organization

costs

(Note

1f)

...................................................................

13,355

Amortization

of

offering

costs

(

Note

1f

)

...........................................................

103,709

Other

....................................................................................

1,582

Total

expenses

.........................................................................

181,559

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(179,121)

Net

expenses

.........................................................................

2,438

Net

investment

income

................................................................

21,947

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

10,761

Non-controlled

affiliates

(Note

3

f

)

............................................................

14,994

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

............................................................

65,445

Net

realized

gain

(loss)

..................................................................

91,200

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

12,893

Non-controlled

affiliates

(Note

3

f

)

............................................................

76,267

Net

change

in

unrealized

appreciation

(depreciation)

............................................

89,160

Net

realized

and

unrealized

gain

(loss)

............................................................

180,360

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$202,307

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

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

145

)

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,712,217

$1,786,002

$676,522

$610,606

Net

realized

gain

(loss)

............

3,699,065

859,056

4,065,035

626,102

Net

change

in

unrealized

appreciation

(depreciation)

.................

(2,340,332)

1,779,713

(505,059)

2,334,384

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

3,070,950

4,424,771

4,236,498

3,571,092

Distributions

to

shareholders:

Class

A

........................

(2,738,432)

(1,431,728)

(3,188,266)

(579,093)

Class

C

........................

(412,129)

(310,829)

(525,427)

(91,739)

Class

R

........................

(128,601)

(75,140)

(63,968)

(13,764)

Class

R6

.......................

(115,087)

(126,010)

(81,115)

(118,084)

Advisor

Class

...................

(164,457)

(81,732)

(73,902)

(15,234)

Total

distributions

to

shareholders

.....

(3,558,706)

(2,025,439)

(3,932,678)

(817,914)

Capital

share

transactions:

(Note

2

)

Class

A

........................

6,205,539

4,280,624

6,563,995

1,395,022

Class

C

........................

(2,523,293)

(1,558,006)

(953,946)

(177,758)

Class

R

........................

113,112

(316,845)

(47,956)

(10,195)

Class

R6

.......................

(4,124,405)

1,865,913

(5,197,373)

(2,898,275)

Advisor

Class

...................

849,592

63,117

144,346

(100,804)

Total

capital

share

transactions

.......

520,545

4,334,803

509,066

(1,792,010)

Net

increase

(decrease)

in

net

assets

.....................

32,789

6,734,135

812,886

961,168

Net

assets:

Beginning

of

year

..................

57,918,918

51,184,783

43,708,652

42,747,484

End

of

year

......................

$57,951,707

$57,918,918

$44,521,538

$43,708,652

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.

146

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$2,079,645

$1,826,080

$991,679

$888,705

Net

realized

gain

(loss)

............

16,961,519

2,155,334

10,039,265

615,220

Net

change

in

unrealized

appreciation

(depreciation)

.................

(3,404,166)

8,475,037

(1,595,297)

5,500,376

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

15,636,998

12,456,451

9,435,647

7,004,301

Distributions

to

shareholders:

Class

A

........................

(12,998,389)

(3,138,792)

(6,264,146)

(807,598)

Class

C

........................

(1,952,002)

(618,884)

(1,503,515)

(200,244)

Class

R

........................

(332,811)

(111,129)

(187,569)

(29,298)

Class

R6

.......................

(341,402)

(559,279)

(350,602)

(664,249)

Advisor

Class

...................

(346,827)

(73,032)

(243,779)

(37,401)

Total

distributions

to

shareholders

.....

(15,971,431)

(4,501,116)

(8,549,611)

(1,738,790)

Capital

share

transactions:

(Note

2

)

Class

A

........................

23,268,401

5,186,019

17,136,403

4,231,485

Class

C

........................

(4,380,046)

(2,618,700)

1,538,532

918,822

Class

R

........................

(29,946)

(967,437)

360,153

25,856

Class

R6

.......................

(16,817,248)

591,525

(26,167,778)

23,761

Advisor

Class

...................

212,806

1,186,713

446,814

425,860

Total

capital

share

transactions

.......

2,253,967

3,378,120

(6,685,876)

5,625,784

Net

increase

(decrease)

in

net

assets

.....................

1,919,534

11,333,455

(5,799,840)

10,891,295

Net

assets:

Beginning

of

year

..................

141,046,979

129,713,524

71,404,576

60,513,281

End

of

year

......................

$142,966,513

$141,046,979

$65,604,736

$71,404,576

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

147

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,851,350

$1,664,747

$691,677

$666,546

Net

realized

gain

(loss)

............

23,498,603

3,082,389

10,719,607

1,332,860

Net

change

in

unrealized

appreciation

(depreciation)

.................

(5,330,755)

11,892,209

(2,015,167)

5,896,778

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

20,019,198

16,639,345

9,396,117

7,896,184

Distributions

to

shareholders:

Class

A

........................

(16,155,657)

(2,987,236)

(6,619,494)

(703,811)

Class

C

........................

(2,902,391)

(693,308)

(1,504,259)

(157,724)

Class

R

........................

(632,310)

(172,276)

(337,502)

(48,153)

Class

R6

.......................

(721,983)

(1,170,436)

(625,662)

(802,620)

Advisor

Class

...................

(621,466)

(117,157)

(177,487)

(14,462)

Total

distributions

to

shareholders

.....

(21,033,807)

(5,140,413)

(9,264,404)

(1,726,770)

Capital

share

transactions:

(Note

2

)

Class

A

........................

24,068,445

4,709,793

12,737,030

2,863,001

Class

C

........................

(2,596,763)

(1,419,278)

1,583,625

516,299

Class

R

........................

(367,212)

(856,195)

359,360

(199,753)

Class

R6

.......................

(33,272,877)

(745,308)

(28,247,644)

634,184

Advisor

Class

...................

580,342

1,045,342

499,245

311,307

Total

capital

share

transactions

.......

(11,588,065)

2,734,354

(13,068,384)

4,125,038

Net

increase

(decrease)

in

net

assets

.....................

(12,602,674)

14,233,286

(12,936,671)

10,294,452

Net

assets:

Beginning

of

year

..................

143,396,551

129,163,265

59,171,229

48,876,777

End

of

year

......................

$130,793,877

$143,396,551

$46,234,558

$59,171,229

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.

148

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,161,188

$1,026,483

$571,815

$554,196

Net

realized

gain

(loss)

............

19,471,341

2,548,837

11,005,422

1,192,234

Net

change

in

unrealized

appreciation

(depreciation)

.................

(3,699,419)

10,128,466

(2,318,687)

5,771,640

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

16,933,110

13,703,786

9,258,550

7,518,070

Distributions

to

shareholders:

Class

A

........................

(13,185,030)

(2,266,459)

(6,412,318)

(560,602)

Class

C

........................

(2,492,203)

(508,543)

(1,716,148)

(158,983)

Class

R

........................

(598,679)

(129,183)

(498,620)

(68,720)

Class

R6

.......................

(584,253)

(959,318)

(541,844)

(660,907)

Advisor

Class

...................

(284,717)

(39,718)

(203,092)

(21,331)

Total

distributions

to

shareholders

.....

(17,144,882)

(3,903,221)

(9,372,022)

(1,470,543)

Capital

share

transactions:

(Note

2

)

Class

A

........................

15,804,135

2,576,701

12,297,908

1,755,282

Class

C

........................

(689,917)

(150,475)

1,540,871

571,449

Class

R

........................

881,792

(2,355,016)

(522,124)

(202,010)

Class

R6

.......................

(26,662,590)

1,037,663

(25,991,520)

2,628,556

Advisor

Class

...................

572,962

183,396

288,068

21,276

Total

capital

share

transactions

.......

(10,093,618)

1,292,269

(12,386,797)

4,774,553

Net

increase

(decrease)

in

net

assets

.....................

(10,305,390)

11,092,834

(12,500,269)

10,822,080

Net

assets:

Beginning

of

year

..................

101,515,658

90,422,824

53,750,393

42,928,313

End

of

year

......................

$91,210,268

$101,515,658

$41,250,124

$53,750,393

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

149

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

..............................

$346,227

$290,756

$21,947

Net

realized

gain

(loss)

..............................

5,143,531

532,338

91,200

Net

change

in

unrealized

appreciation

(depreciation)

........

(2,290)

3,531,937

89,160

Net

increase

(decrease)

in

net

assets

resulting

from

operations

...................................

5,487,468

4,355,031

202,307

Distributions

to

shareholders:

Class

A

..........................................

(2,853,427)

(243,069)

(15,484)

Class

C

..........................................

(994,136)

(80,496)

(3,154)

Class

R

..........................................

(149,684)

(12,920)

(1,891)

Class

R6

.........................................

(267,234)

(258,075)

(597)

Advisor

Class

.....................................

(82,790)

(5,555)

(57,208)

Total

distributions

to

shareholders

.......................

(4,347,271)

(600,115)

(78,334)

Capital

share

transactions:

(Note

2

)

Class

A

..........................................

5,782,053

2,616,597

322,209

Class

C

..........................................

1,308,941

917,117

67,409

Class

R

..........................................

386,733

(51,701)

35,624

Class

R6

.........................................

(13,811,173)

3,228,549

9,229

Advisor

Class

.....................................

139,711

215,067

978,465

Total

capital

share

transactions

.........................

(6,193,735)

6,925,629

1,412,936

Net

increase

(decrease)

in

net

assets

................

(5,053,538)

10,680,545

1,536,909

Net

assets:

Beginning

of

year

....................................

30,465,302

19,784,757

—

End

of

year

........................................

$25,411,764

$30,465,302

$1,536,909

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

150

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

eighteen

separate

funds, ten

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.

Effective

August

2,

2021,

Class

C

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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.

Effective

January

29,

2021,

the

Trust

began

offering

shares

of

the

Franklin

LifeSmart

™

2060

Retirement

Target

Fund.

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.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

151

franklintempleton.com

Annual

Report

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,

2021.

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,

2021, 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

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

152

franklintempleton.com

Annual

Report

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.

f.

Organization

and

Offering

Costs

Organization

costs

were

expensed

as

incurred.

Offering

costs

are

amortized

on

a

straight

line

basis

over

twelve

months.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

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

153

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

December

31,

2021,

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,

2021

Shares

sold

a

...................................

878,539

$10,294,955

767,024

$10,342,759

Shares

issued

in

reinvestment

of

distributions

..........

233,814

2,710,183

242,737

3,182,560

Shares

redeemed

...............................

(581,442)

(6,799,599)

(516,263)

(6,961,324)

Net

increase

(decrease)

..........................

530,911

$6,205,539

493,498

$6,563,995

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

Class

C

Class

C

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

130,078

$1,504,498

82,486

$1,095,715

Shares

issued

in

reinvestment

of

distributions

..........

35,197

402,711

40,159

522,493

Shares

redeemed

a

..............................

(381,629)

(4,430,502)

(190,825)

(2,572,154)

Net

increase

(decrease)

..........................

(216,354)

$(2,523,293)

(68,180)

$(953,946)

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)

Class

R

Class

R

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

19,568

$227,826

33,424

$442,150

Shares

issued

in

reinvestment

of

distributions

..........

11,132

128,601

4,886

63,967

Shares

redeemed

...............................

(21,006)

(243,315)

(40,555)

(554,073)

Net

increase

(decrease)

..........................

9,694

$113,112

(2,245)

$(47,956)

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)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

154

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,

2021

Shares

sold

...................................

167,173

$1,964,575

40,240

$539,421

Shares

issued

in

reinvestment

of

distributions

..........

148

1,712

3

48

Shares

redeemed

...............................

(513,086)

(6,090,692)

(412,496)

(5,736,842)

Net

increase

(decrease)

..........................

(345,765)

$(4,124,405)

(372,253)

$(5,197,373)

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)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

86,986

$1,024,260

13,132

$176,166

Shares

issued

in

reinvestment

of

distributions

..........

13,648

158,707

5,616

73,902

Shares

redeemed

...............................

(28,235)

(333,375)

(7,987)

(105,722)

Net

increase

(decrease)

..........................

72,399

$849,592

10,761

$144,346

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)

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,

2021

Shares

sold

a

...................................

1,995,202

$29,010,592

1,118,157

$17,123,074

Shares

issued

in

reinvestment

of

distributions

..........

935,404

12,920,431

435,728

6,246,397

Shares

redeemed

...............................

(1,286,278)

(18,662,622)

(409,816)

(6,233,068)

Net

increase

(decrease)

..........................

1,644,328

$23,268,401

1,144,069

$17,136,403

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

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

155

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

247,050

$3,501,733

209,976

$3,148,993

Shares

issued

in

reinvestment

of

distributions

..........

144,046

1,951,938

106,489

1,502,679

Shares

redeemed

a

..............................

(685,739)

(9,833,717)

(208,118)

(3,113,140)

Net

increase

(decrease)

..........................

(294,643)

$(4,380,046)

108,347

$1,538,532

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

Class

R

Class

R

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

25,401

$365,549

22,477

$342,363

Shares

issued

in

reinvestment

of

distributions

..........

24,200

332,811

13,106

187,569

Shares

redeemed

...............................

(50,873)

(728,306)

(11,447)

(169,779)

Net

increase

(decrease)

..........................

(1,272)

$(29,946)

24,136

$360,153

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

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

181,182

$2,609,770

344,614

$5,214,446

Shares

issued

in

reinvestment

of

distributions

..........

4,384

60,810

386

5,596

Shares

redeemed

...............................

(1,308,198)

(19,487,828)

(1,982,748)

(31,387,820)

Net

increase

(decrease)

..........................

(1,122,632)

$(16,817,248)

(1,637,748)

$(26,167,778)

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

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

156

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

56,538

$797,042

44,175

$692,384

Shares

issued

in

reinvestment

of

distributions

..........

23,267

322,458

16,837

242,368

Shares

redeemed

...............................

(64,542)

(906,694)

(32,315)

(487,938)

Net

increase

(decrease)

..........................

15,263

$212,806

28,697

$446,814

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

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,

2021

Shares

sold

a

...................................

1,319,958

$21,444,570

707,756

$11,755,225

Shares

issued

in

reinvestment

of

distributions

..........

1,081,774

16,083,299

452,373

6,616,403

Shares

redeemed

...............................

(834,142)

(13,459,424)

(342,250)

(5,634,598)

Net

increase

(decrease)

..........................

1,567,590

$24,068,445

817,879

$12,737,030

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

Class

C

Class

C

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

215,158

$3,391,865

95,273

$1,537,776

Shares

issued

in

reinvestment

of

distributions

..........

201,075

2,901,877

105,040

1,499,819

Shares

redeemed

a

..............................

(557,504)

(8,890,505)

(90,679)

(1,453,970)

Net

increase

(decrease)

..........................

(141,271)

$(2,596,763)

109,634

$1,583,625

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

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

157

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

71,468

$1,150,481

23,581

$387,809

Shares

issued

in

reinvestment

of

distributions

..........

42,337

628,619

23,118

337,502

Shares

redeemed

...............................

(131,902)

(2,146,312)

(22,113)

(365,951)

Net

increase

(decrease)

..........................

(18,097)

$(367,212)

24,586

$359,360

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)

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

327,590

$5,312,608

340,093

$5,572,350

Shares

issued

in

reinvestment

of

distributions

..........

978

14,707

4,036

59,699

Shares

redeemed

...............................

(2,286,573)

(38,600,192)

(1,975,209)

(33,879,693)

Net

increase

(decrease)

..........................

(1,958,005)

$(33,272,877)

(1,631,080)

$(28,247,644)

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

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

24,576

$396,685

22,682

$372,451

Shares

issued

in

reinvestment

of

distributions

..........

40,058

603,559

11,918

175,331

Shares

redeemed

...............................

(25,324)

(419,902)

(2,996)

(48,537)

Net

increase

(decrease)

..........................

39,310

$580,342

31,604

$499,245

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

158

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,

2021

Shares

sold

a

...................................

736,080

$12,605,794

628,036

$10,661,579

Shares

issued

in

reinvestment

of

distributions

..........

849,185

13,083,221

433,200

6,411,353

Shares

redeemed

...............................

(577,974)

(9,884,880)

(291,313)

(4,775,024)

Net

increase

(decrease)

..........................

1,007,291

$15,804,135

769,923

$12,297,908

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

Class

C

Class

C

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

154,021

$2,551,169

123,755

$2,065,942

Shares

issued

in

reinvestment

of

distributions

..........

167,778

2,488,961

117,416

1,716,159

Shares

redeemed

a

..............................

(343,510)

(5,730,047)

(132,180)

(2,241,230)

Net

increase

(decrease)

..........................

(21,711)

$(689,917)

108,991

$1,540,871

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

Class

R

Class

R

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

42,492

$730,310

33,070

$560,640

Shares

issued

in

reinvestment

of

distributions

..........

38,951

595,892

33,649

498,620

Shares

redeemed

...............................

(26,296)

(444,410)

(96,208)

(1,581,384)

Net

increase

(decrease)

..........................

55,147

$881,792

(29,489)

$(522,124)

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)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

159

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,

2021

Shares

sold

...................................

246,381

$4,211,143

279,109

$4,774,889

Shares

issued

in

reinvestment

of

distributions

..........

48

835

54

879

Shares

redeemed

...............................

(1,721,200)

(30,874,568)

(1,718,603)

(30,767,288)

Net

increase

(decrease)

..........................

(1,474,771)

$(26,662,590)

(1,439,440)

$(25,991,520)

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

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

25,416

$434,424

6,394

$109,125

Shares

issued

in

reinvestment

of

distributions

..........

18,300

284,717

13,570

203,092

Shares

redeemed

...............................

(8,782)

(146,179)

(1,369)

(24,149)

Net

increase

(decrease)

..........................

34,934

$572,962

18,595

$288,068

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

160

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2021

b

Shares

sold

a

...................................

392,623

$5,682,892

38,966

$425,182

Shares

issued

in

reinvestment

of

distributions

..........

213,346

2,852,970

1,321

14,893

Shares

redeemed

...............................

(189,747)

(2,753,809)

(11,462)

(117,866)

Net

increase

(decrease)

..........................

416,222

$5,782,053

28,825

$322,209

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

—

$—

Class

C

Class

C

Shares:

Year

ended

December

31,

2021

b

Shares

sold

...................................

129,120

$1,846,042

6,853

$77,148

Shares

issued

in

reinvestment

of

distributions

..........

76,168

994,120

228

2,565

Shares

redeemed

a

..............................

(108,345)

(1,531,221)

(1,079)

(12,304)

Net

increase

(decrease)

..........................

96,943

$1,308,941

6,002

$67,409

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

—

$—

Class

R

Class

R

Shares:

Year

ended

December

31,

2021

b

Shares

sold

...................................

26,931

$389,407

3,207

$34,334

Shares

issued

in

reinvestment

of

distributions

..........

11,253

149,684

116

1,302

Shares

redeemed

...............................

(10,394)

(152,358)

(3)

(12)

Net

increase

(decrease)

..........................

27,790

$386,733

3,320

$35,624

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)

—

$—

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

161

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

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2021

b

Shares

sold

...................................

260,819

$3,744,627

3,695

$40,469

Shares

issued

in

reinvestment

of

distributions

..........

134

1,854

—

—

Shares

redeemed

...............................

(1,155,363)

(17,557,654)

(2,695)

(31,240)

Net

increase

(decrease)

..........................

(894,410)

$(13,811,173)

1,000

$9,229

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

—

$—

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2021

b

Shares

sold

...................................

7,070

$103,158

97,373

$977,734

Shares

issued

in

reinvestment

of

distributions

..........

6,179

82,789

65

731

Shares

redeemed

...............................

(3,212)

(46,236)

—

—

Net

increase

(decrease)

..........................

10,037

$139,711

97,438

$978,465

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

—

$—

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

b

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

162

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

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$13,363

$8,037

$28,188

$26,721

CDSC

retained

...........................

$519

$760

$2,157

$2,710

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$26,604

$17,462

$24,376

$21,010

3.

Transactions

with

Affiliates

(continued)

a.

Management

and

Asset

Allocation

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

163

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,

2021,

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™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

CDSC

retained

...........................

$2,281

$946

$1,828

$1,944

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

.............

$18,328

$—

CDSC

retained

.............................................................

$1,821

$—

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Transfer

agent

fees

........................

$59,614

$40,682

$140,140

$92,103

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Transfer

agent

fees

........................

$180,738

$101,333

$173,944

$128,635

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Transfer

agent

fees

..........................................................

$140,423

$2,514

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

164

franklintempleton.com

Annual

Report

f.

Investments

in

FT

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,

2021,

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

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

—

$

580,901

$

(591,503)

$

10,602

$

—

$

—

—

$

4,504

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund

-

USD

Hedged,

Class

IS

...........

—

3,207,750

(158,085)

(604)

(184,789)

2,864,272

291,085

147,406

a

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

.......

—

4,610,615

—

—

33,589

4,644,204

212,452

25,928

Franklin

Income

Fund,

Class

R6

.

11,942,166

53,949

(11,891,359)

717,949

(822,705)

—

—

53,949

Franklin

International

Growth

Fund,

Class

R6

................

2,809,700

—

(2,946,802)

485,848

(348,746)

—

—

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,128,022

2,582,853

(810,997)

5,609

(28,284)

2,877,203

109,775

131,494

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,085,024

142,100

(1,210,071)

(9,089)

(7,964)

—

—

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

5,137,342

729,679

(2,202,019)

(90,569)

(139,075)

3,435,358

133,235

120,699

a

Franklin

Liberty

Senior

Loan

ETF

—

2,397,618

(2,398,183)

565

—

—

—

27,793

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

11,529,824

4,495,101

(10,343,131)

(120,541)

(344,494)

5,216,759

207,638

235,055

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

2,864,210

569,652

(3,350,098)

(122,914)

39,150

—

—

26,604

Franklin

LibertyQ

U.S.

Equity

ETF

3,520,625

—

(3,590,129)

783,117

(713,613)

—

—

7,059

Franklin

U.S.

Core

Equity

(IU)

Fund

3,140,134

2,091,843

(3,563,686)

473,864

166,216

2,308,371

153,177

345,267

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

.....

3,944,487

3,871,824

(1,848,959)

1,644

(199,972)

5,769,024

986,158

117,563

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

1,298,368

30,996,913

(31,780,042)

—

—

515,239

515,239

55

Templeton

Developing

Markets

Trust,

Class

R6

............

616,505

84,925

(88,108)

11,109

(73,562)

550,869

24,792

37,442

a

Templeton

Foreign

Fund,

Class

R6

1,273,505

2,906,175

(2,946,171)

(62,347)

(10,687)

1,160,475

164,606

57,980

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

165

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™

Retirement

Income

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Income

Fund,

Class

IS

.....................

$

—

$

6,184,426

$

(356,872)

$

543

$

(74,392)

$

5,753,705

946,333

$

133,939

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

........

—

5,428,901

(169,393)

(317)

(32,142)

5,227,049

986,236

66,877

Total

Non-Controlled

Affiliates

$50,289,912

$70,935,225

$(80,245,608)

$2,084,469

$(2,741,470)

$40,322,528

$1,539,614

Total

Affiliated

Securities

....

$50,289,912

$70,935,225

$(80,245,608)

$2,084,469

$(2,741,470)

$40,322,528

$1,539,614

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

1,349,823

(84,781)

(2,175)

(49,374)

1,213,493

109,719

26,387

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

2,871,296

(985,648)

47,905

235,469

2,169,022

54,787

110,910

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,009,327

82,496

(461,958)

66,042

(65,338)

630,569

56,706

22,543

Franklin

FTSE

China

ETF

.....

193,240

5,548

(198,531)

542

(799)

—

—

—

Franklin

FTSE

Europe

ETF

....

675,662

39,942

(540,151)

98,567

(20,647)

253,373

8,624

9,591

Franklin

FTSE

Japan

ETF

.....

349,736

381,168

(742,144)

83,254

(72,014)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

4,577,804

828,698

(1,623,312)

327,690

262,718

4,373,598

28,924

367,363

a

Franklin

International

Core

Equity

(IU)

Fund

................

2,107,449

1,371,308

(698,892)

29,200

57,198

2,866,263

229,485

218,597

a

Franklin

International

Growth

Fund,

Class

R6

................

702,671

52,024

(268,602)

59,612

(49,310)

496,395

23,120

10,617

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

568,443

1,484,582

(443,077)

(1,308)

(12,818)

1,595,822

60,886

82,307

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,481,610

415,650

(654,790)

(9,401)

(49,565)

1,183,504

48,326

26,956

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,532,130

727,786

(1,486,965)

(60,588)

(6,830)

705,533

27,363

30,090

a

Franklin

Liberty

Senior

Loan

ETF

—

1,486,577

(594,047)

(3,393)

(1,673)

887,464

35,527

32,786

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

1,457,794

35,961

(1,488,273)

(4,336)

(1,146)

—

—

2,548

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

187,254

51,405

(29,923)

(7,253)

27,758

229,241

10,598

3,018

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

9,134,692

3,329,609

(4,137,595)

(52,851)

(307,517)

7,966,338

317,077

181,974

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,878,488

775,049

(1,159,360)

(59,414)

(16,775)

1,417,988

59,333

27,707

Franklin

LibertyQ

U.S.

Equity

ETF

3,349,931

391,747

(3,294,586)

784,714

(350,323)

881,483

18,743

33,290

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

166

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)

Non-Controlled

Affiliates

(continued)

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

$

1,679,031

$

3,663

$

(1,684,317)

$

20,534

$

(18,911)

$

—

—

$

5,208

Franklin

Rising

Dividends

Fund,

Class

R6

................

2,381,190

102,022

(2,573,667)

929,863

(839,408)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

4,102,258

5,336,413

(1,683,890)

63,728

1,003,693

8,822,202

585,415

680,491

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

153,283

12,435,033

(12,588,313)

—

—

3

3

34

Templeton

Developing

Markets

Trust,

Class

R6

............

812,524

127,213

(266,010)

17,984

(86,211)

605,500

27,250

41,546

a

Templeton

Foreign

Fund,

Class

R6

970,861

573,735

(491,034)

(11,843)

269

1,041,988

147,800

46,688

Templeton

Global

Total

Return

Fund,

Class

R6

............

430,004

18,717

(430,072)

(38,648)

19,999

—

—

7,241

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

3,342,709

(621,087)

581

(27,677)

2,694,526

226,051

52,173

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

2,319,122

(1,228,745)

(372)

(16,158)

1,073,847

276,765

18,642

Total

Non-Controlled

Affiliates

$39,735,382

$39,939,296

$(40,459,770)

$2,278,634

$(385,390)

$41,108,152

$2,038,707

Total

Affiliated

Securities

....

$39,735,382

$39,939,296

$(40,459,770)

$2,278,634

$(385,390)

$41,108,152

$2,038,707

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

3,106,916

(170,880)

(3,235)

(107,551)

2,825,250

255,448

63,514

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

10,098,172

(3,186,063)

139,063

849,769

7,900,941

199,569

397,612

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

3,947,628

263,164

(1,043,913)

161,426

(230,807)

3,097,498

278,552

105,069

Franklin

FTSE

China

ETF

.....

744,331

—

(746,284)

5,030

(3,077)

—

—

—

Franklin

FTSE

Europe

ETF

....

2,496,942

70,443

(1,934,022)

376,696

(41,900)

968,159

32,953

36,611

Franklin

FTSE

Japan

ETF

.....

1,323,870

933,465

(2,303,075)

306,837

(261,097)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

18,306,866

1,924,667

(6,438,683)

1,696,789

482,588

15,972,227

105,629

1,332,258

a

Franklin

International

Core

Equity

(IU)

Fund

................

8,007,443

4,601,197

(2,044,957)

100,779

233,975

10,898,437

872,573

826,581

a

Franklin

International

Growth

Fund,

Class

R6

................

2,721,050

134,818

(1,005,930)

263,653

(218,538)

1,895,053

88,265

40,341

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,440,834

4,003,820

(1,224,090)

(1,465)

(33,100)

4,185,999

159,710

217,697

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

3,666,985

383,559

(1,140,156)

(15,195)

(121,382)

2,773,811

113,263

62,421

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

167

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)

Non-Controlled

Affiliates

(continued)

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

$

3,774,470

$

1,392,958

$

(3,156,097)

$

(116,664)

$

(42,511)

$

1,852,156

71,833

$

81,825

a

Franklin

Liberty

Senior

Loan

ETF

—

3,798,141

(1,455,635)

(8,333)

(4,613)

2,329,560

93,257

85,813

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

3,604,988

—

(3,591,604)

(10,330)

(3,054)

—

—

6,309

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

586,336

161,501

(73,112)

(18,368)

83,063

739,420

34,184

9,609

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

24,272,456

7,011,523

(9,184,280)

(132,781)

(775,400)

21,191,518

843,467

480,926

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

4,894,923

2,428,704

(3,408,553)

(172,585)

(19,725)

3,722,764

155,772

68,544

Franklin

LibertyQ

U.S.

Equity

ETF

12,582,170

363,631

(11,353,926)

3,055,341

(1,424,344)

3,222,872

68,528

123,881

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

4,390,545

9,573

(4,404,425)

88,720

(84,413)

—

—

13,670

Franklin

Rising

Dividends

Fund,

Class

R6

................

9,108,959

186,317

(9,646,102)

5,033,039

(4,682,213)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

15,790,078

17,003,176

(4,950,864)

195,956

3,718,431

31,756,777

2,107,285

2,462,786

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

910,873

24,278,332

(25,189,192)

—

—

13

13

114

Templeton

Developing

Markets

Trust,

Class

R6

............

3,147,351

823,358

(561,705)

25,227

(409,456)

3,024,775

136,128

204,965

a

Templeton

Foreign

Fund,

Class

R6

3,783,721

1,696,399

(1,434,987)

(57,761)

(8,520)

3,978,852

564,376

176,199

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,346,867

22,269

(1,311,932)

(134,474)

77,270

—

—

22,269

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

8,565,157

(1,467,857)

2,746

(68,555)

7,031,491

589,890

138,466

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

4,394,458

(1,549,140)

(545)

(42,459)

2,802,314

722,246

43,488

Total

Non-Controlled

Affiliates

$130,849,686

$97,655,718

$(103,977,464)

$10,779,566

$(3,137,619)

$132,169,887

$7,000,968

Total

Affiliated

Securities

....

$130,849,686

$97,655,718

$(103,977,464)

$10,779,566

$(3,137,619)

$132,169,887

$7,000,968

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

1,267,972

(279,889)

(5,299)

(32,914)

949,870

85,883

22,639

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

6,107,138

(2,713,442)

162,303

443,209

3,999,208

101,016

205,242

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,499,782

386,789

(1,173,728)

143,463

(164,302)

1,692,004

152,159

61,234

Franklin

FTSE

China

ETF

.....

502,964

69,268

(572,853)

2,991

(2,370)

—

—

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

168

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)

Non-Controlled

Affiliates

(continued)

Franklin

FTSE

Europe

ETF

....

$

1,466,324

$

92,093

$

(1,239,799)

$

248,344

$

(43,792)

$

523,170

17,807

$

21,775

Franklin

FTSE

Japan

ETF

.....

731,665

977,296

(1,742,194)

177,244

(144,011)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

10,345,578

2,036,028

(5,523,618)

1,789,413

(364,017)

8,283,384

54,781

686,762

a

Franklin

International

Core

Equity

(IU)

Fund

................

4,684,093

3,901,489

(2,854,536)

87,782

154,164

5,972,992

478,222

455,674

a

Franklin

International

Growth

Fund,

Class

R6

................

1,506,778

198,581

(718,135)

203,513

(163,408)

1,027,329

47,849

21,857

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

523,376

2,120,385

(1,177,888)

(977)

(11,499)

1,453,397

55,452

86,504

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,252,548

468,382

(722,944)

(7,817)

(37,337)

952,832

38,907

21,445

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,368,125

485,839

(1,157,267)

(38,005)

(16,459)

642,233

24,908

32,955

a

Franklin

Liberty

Senior

Loan

ETF

—

1,463,817

(649,808)

(4,113)

(1,393)

808,503

32,366

30,295

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

1,336,287

—

(1,331,326)

(3,830)

(1,131)

—

—

2,339

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

284,567

135,518

(111,708)

(28,183)

60,207

340,401

15,737

5,062

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

8,612,136

4,526,067

(5,418,549)

(76,154)

(257,911)

7,385,589

293,962

194,875

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,734,123

789,521

(1,164,219)

(56,177)

(10,562)

1,292,686

54,090

26,620

Franklin

LibertyQ

U.S.

Equity

ETF

7,291,097

474,665

(7,035,981)

1,791,957

(854,195)

1,667,543

35,457

70,241

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

1,566,968

3,427

(1,572,014)

48,336

(46,717)

—

—

4,960

Franklin

Rising

Dividends

Fund,

Class

R6

................

5,244,910

193,387

(5,660,900)

1,980,736

(1,758,133)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

9,352,120

10,962,895

(6,435,136)

333,985

2,059,898

16,273,762

1,079,878

1,270,244

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

461,257

19,894,945

(20,356,196)

—

—

6

6

62

Templeton

Developing

Markets

Trust,

Class

R6

............

2,067,967

641,798

(850,469)

54,917

(248,501)

1,665,712

74,965

112,752

a

Templeton

Foreign

Fund,

Class

R6

2,171,717

1,657,146

(1,692,701)

505

13,032

2,149,699

304,922

95,151

Templeton

Global

Total

Return

Fund,

Class

R6

............

663,118

93,398

(726,015)

(56,934)

26,433

—

—

11,904

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

3,717,046

(1,318,347)

4,447

(16,374)

2,386,772

200,233

52,077

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

169

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)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

1,257,663

$

(291,206)

$

(741)

$

(14,178)

$

951,538

245,242

$

10,775

Total

Non-Controlled

Affiliates

$65,667,500

$63,922,553

$(74,490,868)

$6,751,706

$(1,432,261)

$60,418,630

$3,503,444

Total

Affiliated

Securities

....

$65,667,500

$63,922,553

$(74,490,868)

$6,751,706

$(1,432,261)

$60,418,630

$3,503,444

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

1,993,728

(320,130)

(6,061)

(52,056)

1,615,481

146,065

38,111

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

13,397,386

(5,752,168)

287,236

989,915

8,922,369

225,369

456,205

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

6,231,816

402,690

(2,191,933)

287,546

(358,393)

4,371,726

393,141

157,431

Franklin

FTSE

China

ETF

.....

1,174,547

—

(1,177,628)

7,937

(4,856)

—

—

—

Franklin

FTSE

Europe

ETF

....

3,285,049

64,021

(2,632,578)

509,158

(54,005)

1,171,645

39,879

48,001

Franklin

FTSE

Japan

ETF

.....

1,741,892

1,694,669

(3,493,342)

371,576

(314,795)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

22,993,541

2,138,414

(10,186,912)

4,232,143

(1,224,360)

17,952,826

118,728

1,516,087

a

Franklin

International

Core

Equity

(IU)

Fund

................

10,556,792

7,139,661

(4,707,724)

175,187

323,714

13,487,630

1,079,874

1,033,259

a

Franklin

International

Growth

Fund,

Class

R6

................

3,316,469

347,834

(1,449,606)

437,339

(360,835)

2,291,201

106,716

48,938

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

744,748

3,228,693

(1,933,692)

4,415

(16,087)

2,028,077

77,378

124,366

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

2,040,407

266,702

(650,449)

(5,813)

(67,666)

1,583,181

64,646

35,746

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,950,538

332,442

(1,311,957)

(44,329)

(29,739)

896,955

34,787

44,929

a

Franklin

Liberty

Senior

Loan

ETF

—

2,373,965

(1,237,125)

(6,220)

(2,123)

1,128,497

45,176

47,408

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

1,924,575

—

(1,917,430)

(5,771)

(1,374)

—

—

3,368

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

577,980

195,720

(160,116)

(40,154)

101,337

674,767

31,195

9,862

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

11,028,501

6,177,936

(6,657,175)

(57,842)

(371,955)

10,119,465

402,776

256,318

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

2,391,313

1,384,276

(1,879,537)

(94,977)

1,062

1,802,137

75,407

34,819

Franklin

LibertyQ

U.S.

Equity

ETF

16,257,690

112,117

(14,729,957)

4,060,766

(2,063,645)

3,636,971

77,333

152,942

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

2,225,009

4,866

(2,232,174)

34,331

(32,032)

—

—

7,042

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

170

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)

Non-Controlled

Affiliates

(continued)

Franklin

Rising

Dividends

Fund,

Class

R6

................

$

11,680,863

$

—

$

(12,070,198)

$

6,121,810

$

(5,732,475)

$

—

—

$

—

Franklin

U.S.

Core

Equity

(IU)

Fund

20,803,766

17,769,810

(9,701,653)

477,040

4,633,026

33,981,989

2,254,943

2,665,755

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

150,290

24,538,622

(24,688,903)

—

—

9

9

112

Templeton

Developing

Markets

Trust,

Class

R6

............

5,118,546

698,175

(1,052,793)

90,044

(620,507)

4,233,465

190,525

287,881

a

Templeton

Foreign

Fund,

Class

R6

4,681,872

2,787,156

(2,846,566)

(49,136)

26,671

4,599,997

652,482

204,348

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,350,909

22,336

(1,315,869)

(114,738)

57,362

—

—

22,336

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

5,238,070

(1,801,767)

4,602

(29,675)

3,411,230

286,177

70,820

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

1,664,254

(283,724)

(722)

(20,492)

1,359,316

350,339

15,083

Total

Non-Controlled

Affiliates

$132,227,113

$93,973,543

$(118,383,106)

$16,675,367

$(5,223,983)

$119,268,934

$7,281,167

Total

Affiliated

Securities

....

$132,227,113

$93,973,543

$(118,383,106)

$16,675,367

$(5,223,983)

$119,268,934

$7,281,167

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

6,494,099

(3,693,883)

203,762

394,048

3,398,026

85,830

176,524

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,703,240

270,846

(1,212,284)

141,903

(168,810)

1,734,895

156,016

68,710

Franklin

FTSE

China

ETF

.....

508,944

108,733

(617,915)

2,342

(2,104)

—

—

—

Franklin

FTSE

Europe

ETF

....

1,505,969

86,106

(1,329,894)

250,896

(40,559)

472,518

16,083

22,079

Franklin

FTSE

Japan

ETF

.....

803,196

873,805

(1,705,589)

177,769

(149,181)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

10,560,384

1,933,565

(6,832,944)

2,443,035

(955,992)

7,148,048

47,272

588,152

a

Franklin

International

Core

Equity

(IU)

Fund

................

4,999,128

3,862,900

(3,869,482)

156,295

136,767

5,285,608

423,187

422,429

a

Franklin

International

Growth

Fund,

Class

R6

................

1,580,855

330,199

(1,057,304)

292,761

(224,211)

922,300

42,958

18,957

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

189,800

1,188,407

(924,789)

2,568

(3,680)

452,306

17,257

34,070

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

496,944

159,532

(438,547)

(13,871)

(3,405)

200,653

7,782

11,256

a

Franklin

Liberty

Senior

Loan

ETF

—

693,483

(439,567)

(2,231)

(336)

251,349

10,062

12,289

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

488,325

—

(486,513)

(1,569)

(243)

—

—

855

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

242,300

124,929

(150,136)

(37,302)

59,876

239,667

11,080

4,260

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

171

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)

Non-Controlled

Affiliates

(continued)

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

$

2,884,293

$

2,461,794

$

(2,949,847)

$

(18,051)

$

(86,200)

$

2,291,989

91,226

$

64,052

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

609,526

417,344

(601,846)

(28,616)

6,024

402,432

16,839

8,656

Franklin

LibertyQ

U.S.

Equity

ETF

7,510,669

458,381

(7,502,880)

1,946,990

(992,337)

1,420,823

30,211

67,407

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

567,043

1,240

(568,869)

8,030

(7,444)

—

—

1,795

Franklin

Rising

Dividends

Fund,

Class

R6

................

5,240,035

221,186

(5,684,646)

1,890,226

(1,666,801)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

9,792,410

7,038,974

(6,818,784)

456,629

1,963,006

12,432,235

824,966

994,114

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

137,383

18,823,332

(18,960,711)

—

—

4

4

49

Templeton

Developing

Markets

Trust,

Class

R6

............

2,174,948

1,324,875

(1,561,214)

50,076

(269,685)

1,719,000

77,363

112,556

a

Templeton

Foreign

Fund,

Class

R6

2,153,890

2,338,620

(2,644,304)

36,088

9,137

1,893,431

268,572

80,987

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

1,324,090

(575,727)

2,280

(10,261)

740,382

62,113

15,292

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

479,100

(178,840)

(534)

(4,263)

295,463

76,150

3,611

Total

Non-Controlled

Affiliates

$55,149,282

$51,015,540

$(70,806,515)

$7,959,476

$(2,016,654)

$41,301,129

$2,708,100

Total

Affiliated

Securities

....

$55,149,282

$51,015,540

$(70,806,515)

$7,959,476

$(2,016,654)

$41,301,129

$2,708,100

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

10,856,104

(4,732,820)

263,424

804,792

7,191,500

181,649

370,256

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

5,125,258

655,679

(1,512,250)

140,347

(271,430)

4,137,604

372,087

148,210

Franklin

FTSE

China

ETF

.....

966,198

91,014

(1,058,828)

5,610

(3,994)

—

—

—

Franklin

FTSE

Europe

ETF

....

2,648,329

165,601

(2,174,378)

398,847

(23,614)

1,014,785

34,540

42,774

Franklin

FTSE

Japan

ETF

.....

1,342,125

2,147,444

(3,535,562)

289,109

(243,116)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

19,573,768

1,666,551

(9,123,166)

3,831,416

(1,233,261)

14,715,308

97,317

1,235,294

a

Franklin

International

Core

Equity

(IU)

Fund

................

8,702,913

7,043,654

(4,495,589)

140,330

247,590

11,638,898

931,857

891,321

a

Franklin

International

Growth

Fund,

Class

R6

................

2,798,056

353,054

(1,247,454)

372,168

(291,506)

1,984,318

92,423

42,383

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

414,809

147,744

(133,525)

(33,687)

76,855

472,196

21,830

7,154

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

1,614,658

3,256,355

(2,779,783)

(9,828)

(59,650)

2,021,752

80,470

44,860

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

172

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™

2045

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

LibertyQ

U.S.

Equity

ETF

$

13,815,338

$

17,099

$

(12,594,729)

$

3,420,090

$

(1,707,371)

$

2,950,427

62,735

$

128,463

Franklin

Rising

Dividends

Fund,

Class

R6

................

9,742,984

154,346

(10,321,192)

4,723,981

(4,300,119)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

17,842,471

9,739,126

(5,049,460)

339,139

3,877,208

26,748,484

1,774,949

2,109,756

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

57,646

18,090,957

(18,148,597)

—

—

6

6

77

Templeton

Developing

Markets

Trust,

Class

R6

............

4,089,916

2,017,985

(1,513,273)

(61,256)

(502,502)

4,030,870

181,407

274,067

a

Templeton

Foreign

Fund,

Class

R6

4,023,269

3,309,133

(3,306,927)

(12,665)

28,110

4,040,920

573,180

179,512

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

2,642,591

(591,308)

5,101

(27,676)

2,028,708

170,194

44,993

a

Total

Non-Controlled

Affiliates

$92,757,738

$62,354,437

$(82,318,841)

$13,812,126

$(3,629,684)

$82,975,776

$5,519,120

Total

Affiliated

Securities

....

$92,757,738

$62,354,437

$(82,318,841)

$13,812,126

$(3,629,684)

$82,975,776

$5,519,120

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

6,339,451

(3,565,701)

222,290

368,141

3,364,181

84,976

168,934

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,749,839

790,885

(1,589,103)

129,576

(165,329)

1,915,868

172,290

74,631

Franklin

FTSE

China

ETF

.....

558,248

13,693

(573,267)

4,600

(3,274)

—

—

—

Franklin

FTSE

Europe

ETF

....

1,526,769

280,786

(1,516,823)

267,987

(40,603)

518,116

17,635

22,844

Franklin

FTSE

Japan

ETF

.....

772,464

1,145,761

(1,939,789)

165,787

(144,223)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

10,032,925

2,251,933

(6,568,614)

2,518,057

(1,028,679)

7,205,622

47,653

553,808

a

Franklin

International

Core

Equity

(IU)

Fund

................

5,008,274

4,251,369

(4,136,682)

195,815

118,673

5,437,449

435,344

430,138

a

Franklin

International

Growth

Fund,

Class

R6

................

1,525,111

820,258

(1,422,440)

318,203

(225,295)

1,015,837

47,314

20,384

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

208,879

131,049

(134,212)

(33,447)

54,787

227,056

10,497

3,877

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

347,612

704,125

(1,041,572)

3,449

(13,614)

—

—

2,558

Franklin

LibertyQ

U.S.

Equity

ETF

7,526,545

503,624

(7,570,674)

1,961,262

(986,389)

1,434,368

30,499

65,814

Franklin

Rising

Dividends

Fund,

Class

R6

................

5,121,977

454,070

(5,791,678)

1,799,506

(1,583,875)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

9,397,730

5,618,517

(6,322,571)

712,896

1,626,394

11,032,966

732,115

888,564

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

13,163,302

(13,163,298)

—

—

4

4

43

Templeton

Developing

Markets

Trust,

Class

R6

............

2,163,284

1,606,827

(1,464,815)

6,944

(278,463)

2,033,777

91,529

130,649

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

173

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)

Non-Controlled

Affiliates

(continued)

Templeton

Foreign

Fund,

Class

R6

$

2,197,341

$

2,379,402

$

(2,512,350)

$

38,117

$

7,807

$

2,110,317

299,336

$

88,670

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

340,657

(135,131)

1,424

(2,874)

204,076

17,120

5,933

a

Total

Non-Controlled

Affiliates

$49,136,998

$40,795,709

$(59,448,720)

$8,312,466

$(2,296,816)

$36,499,637

$2,456,847

Total

Affiliated

Securities

....

$49,136,998

$40,795,709

$(59,448,720)

$8,312,466

$(2,296,816)

$36,499,637

$2,456,847

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

3,725,868

(2,045,137)

116,047

232,178

2,028,956

51,249

106,236

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,532,282

746,700

(1,021,156)

47,764

(83,269)

1,222,321

109,921

46,194

Franklin

FTSE

China

ETF

.....

314,018

21,747

(336,370)

2,555

(1,950)

—

—

—

Franklin

FTSE

Europe

ETF

....

837,553

183,930

(849,121)

142,347

(11,948)

302,761

10,305

13,916

Franklin

FTSE

Japan

ETF

.....

434,996

689,332

(1,137,150)

91,598

(78,776)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

5,738,706

965,483

(3,346,490)

875,483

3,569

4,236,751

28,019

353,139

a

Franklin

International

Core

Equity

(IU)

Fund

................

2,803,333

2,761,312

(2,303,503)

30,054

129,749

3,420,945

273,895

268,983

a

Franklin

International

Growth

Fund,

Class

R6

................

863,616

450,107

(781,202)

153,642

(92,210)

593,953

27,664

12,634

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

111,075

76,232

(68,381)

(17,021)

30,150

132,055

6,105

2,306

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

224,001

383,712

(601,989)

1,362

(7,086)

—

—

1,466

Franklin

LibertyQ

U.S.

Equity

ETF

4,237,997

394,544

(4,368,192)

986,986

(411,991)

839,344

17,847

40,057

Franklin

Rising

Dividends

Fund,

Class

R6

................

2,867,319

352,461

(3,346,885)

840,470

(713,365)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

5,291,921

3,751,361

(3,156,269)

236,565

1,129,476

7,253,054

481,291

579,081

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

222,738

8,705,030

(8,927,766)

—

—

2

2

29

Templeton

Developing

Markets

Trust,

Class

R6

............

1,207,703

978,502

(810,506)

(33,642)

(148,264)

1,193,793

53,726

81,117

a

Templeton

Foreign

Fund,

Class

R6

1,298,745

1,515,487

(1,594,207)

1,722

12,475

1,234,222

175,067

54,829

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

174

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™

2055

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

$

—

$

221,779

$

(93,096)

$

781

$

(1,886)

$

127,578

10,703

$

3,642

a

Total

Non-Controlled

Affiliates

$27,986,003

$25,923,587

$(34,787,420)

$3,476,713

$(13,148)

$22,585,735

$1,563,629

Total

Affiliated

Securities

....

$27,986,003

$25,923,587

$(34,787,420)

$3,476,713

$(13,148)

$22,585,735

$1,563,629

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

144,760

(34,454)

368

10,962

121,636

3,072

6,136

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

—

99,779

(22,898)

(817)

(5,010)

71,054

6,390

2,143

Franklin

FTSE

Europe

ETF

....

—

44,220

(29,027)

2,519

1,884

19,596

667

591

Franklin

Growth

Fund,

Class

R6

.

—

307,273

(79,509)

(1,318)

25,894

252,340

1,669

21,345

a

Franklin

International

Core

Equity

(IU)

Fund

................

—

238,414

(35,886)

(725)

1,524

203,327

16,279

14,853

a

Franklin

International

Growth

Fund,

Class

R6

................

—

57,553

(22,074)

329

423

36,231

1,687

770

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

9,577

(2,134)

24

580

8,047

372

80

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

—

17,890

(17,780)

(110)

—

—

—

31

Franklin

LibertyQ

U.S.

Equity

ETF

—

187,639

(158,337)

11,471

9,972

50,745

1,079

1,649

Franklin

Rising

Dividends

Fund,

Class

R6

................

—

114,360

(120,722)

6,362

—

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

—

379,872

(40,607)

220

41,822

381,307

25,302

30,505

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

395,294

(378,998)

—

—

16,296

16,296

1

Templeton

Developing

Markets

Trust,

Class

R6

............

—

102,034

(17,869)

(1,888)

(10,592)

71,685

3,226

5,068

a

Templeton

Foreign

Fund,

Class

R6

—

123,170

(45,783)

(1,426)

(1,082)

74,879

10,621

3,446

Western

Asset

Core

Plus

Bond

Fund,

Class

I

S

............

—

7,742

(555)

(15)

(110)

7,062

592

155

a

Total

Non-Controlled

Affiliates

$—

$2,229,577

$(1,006,633)

$14,994

$76,267

$1,314,205

$86,773

Total

Affiliated

Securities

....

$—

$2,229,577

$(1,006,633)

$14,994

$76,267

$1,314,205

$86,773

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.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

175

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

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

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

interest

expense,

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.

h.

Other

Affiliated

Transactions

At

December

31,

2021,

Templeton

International

Inc.

owned

73.2%

of

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund’s

outstanding

shares.

Investment

activities

of

this

investment

company

could

have

a

material

impact

on

the

Fund.

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,

2021, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

During

the

year

ended

December

31,

2021,

the

following

Fund

utilized

capital

loss

carryforwards

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Capital

loss

utilized

carryforwards

................................................................

$1,334,004

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

176

franklintempleton.com

Annual

Report

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

deferred

losses

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

Franklin

LifeSmart

2020

Retirement™

Target

Fund

Franklin

LifeSmart

2025

Retirement™

Target

Fund

Franklin

LifeSmart

2030

Retirement™

Target

Fund

Franklin

LifeSmart

2035

Retirement™

Target

Fund

Post-October

capital

loss

...................

$15,081

$62,000

$6,716

$8,047

Franklin

LifeSmart

2045

Retirement™

Target

Fund

Franklin

LifeSmart

2055

Retirement™

Target

Fund

Franklin

LifeSmart

2060

Retirement™

Target

Fund

Post-October

capital

loss

...................

$15,799

$10,561

$2,022

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

2021

2020

2021

2020

Distributions

paid

from:

Ordinary

income

........................

$3,377,223

$2,025,439

$1,981,886

$817,914

Long

term

capital

gain

....................

181,483

—

1,950,792

—

$3,558,706

$2,025,439

$3,932,678

$817,914

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

2021

2020

2021

2020

Distributions

paid

from:

Ordinary

income

........................

$6,367,131

$2,029,059

$3,876,465

$1,051,011

Long

term

capital

gain

....................

9,604,300

2,472,057

4,673,146

687,779

$15,971,431

$4,501,116

$8,549,611

$1,738,790

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

2021

2020

2021

2020

Distributions

paid

from:

Ordinary

income

........................

$7,271,766

$1,891,407

$3,560,350

$973,437

Long

term

capital

gain

....................

13,762,041

3,249,006

5,704,054

753,333

$21,033,807

$5,140,413

$9,264,404

$1,726,770

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

2021

2020

2021

2020

Distributions

paid

from:

Ordinary

income

........................

$5,804,716

$1,406,789

$3,529,391

$831,990

Long

term

capital

gain

....................

11,340,166

2,496,432

5,842,631

638,553

$17,144,882

$3,903,221

$9,372,022

$1,470,543

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

177

franklintempleton.com

Annual

Report

At

December

31,

2021,

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™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

2021

2020

2021

Distributions

paid

from:

Ordinary

income

.........................................

$2,284,264

$398,408

$78,334

Long

term

capital

gain

.....................................

2,063,007

201,707

—

$4,347,271

$600,115

$78,334

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$56,769,655

$39,451,006

$121,592,174

$55,489,842

Unrealized

appreciation

.....................

$1,865,008

$5,586,455

$22,634,212

$10,786,699

Unrealized

depreciation

.....................

(728,633)

(503,753)

(1,176,100)

(632,146)

Net

unrealized

appreciation

(depreciation)

.......

$1,136,375

$5,082,702

$21,458,112

$10,154,553

Distributable

earnings:

Undistributed

ordinary

income

................

$41,386

$—

$—

$—

Undistributed

long

term

capital

gains

...........

456,546

764,931

2,906,366

1,435,782

Total

distributable

earnings

..................

$497,932

$764,931

$2,906,366

$1,435,782

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$104,932,225

$36,274,989

$69,958,407

$31,909,129

Unrealized

appreciation

.....................

$26,837,484

$10,183,387

$21,852,659

$9,341,003

Unrealized

depreciation

.....................

(941,488)

(205,579)

(475,326)

(234,574)

Net

unrealized

appreciation

(depreciation)

.......

$25,895,996

$9,977,808

$21,377,333

$9,106,429

Distributable

earnings:

Undistributed

ordinary

income

................

$—

$28,318

$—

$22,596

Undistributed

long

term

capital

gains

...........

3,185,315

1,160,433

2,517,563

1,092,102

Total

distributable

earnings

..................

$3,185,315

$1,188,751

$2,517,563

$1,114,698

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

178

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,

wash

sales,

non-

deductible

expenses

and

offering

costs.

The

Funds

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,

2021,

were

as

follows:

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

a

a

Cost

of

investments

.........................................................

$19,492,951

$1,427,850

Unrealized

appreciation

.......................................................

$5,641,644

$105,955

Unrealized

depreciation

.......................................................

(120,054)

(22,932)

Net

unrealized

appreciation

(depreciation)

.........................................

$5,521,590

$83,023

Distributable

earnings:

Undistributed

long

term

capital

gains

.............................................

$708,810

$43,441

Total

distributable

earnings

....................................................

$708,810

$43,441

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Purchases

..............................

$70,134,756

$36,037,602

$99,731,863

$60,069,552

Sales

..................................

$69,999,773

$37,452,368

$106,640,808

$71,801,738

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Purchases

..............................

$99,832,852

$50,505,069

$72,001,772

$44,695,730

Sales

..................................

$125,058,749

$70,092,462

$93,307,505

$63,738,244

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Purchases

................................................................

$27,668,556

$1,392,442

Sales

....................................................................

$36,676,345

$997,730

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

179

franklintempleton.com

Annual

Report

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

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

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,

2021,

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,

2021,

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

..........................

$

50,849,541

$

—

$

—

$

50,849,541

Index-Linked

Notes

......................

—

6,541,250

—

6,541,250

Short

Term

Investments

...................

515,239

—

—

515,239

Total

Investments

in

Securities

...........

$51,364,780

$6,541,250

$—

$57,906,030

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

180

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

44,078,734

$

—

$

—

$

44,078,734

Short

Term

Investments

...................

3

454,971

—

454,974

Total

Investments

in

Securities

...........

$44,078,737

$454,971

$—

$44,533,708

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

141,767,678

—

—

141,767,678

Short

Term

Investments

...................

13

1,282,595

—

1,282,608

Total

Investments

in

Securities

...........

$141,767,691

$1,282,595

$—

$143,050,286

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

64,796,200

—

—

64,796,200

Short

Term

Investments

...................

6

848,189

—

848,195

Total

Investments

in

Securities

...........

$64,796,206

$848,189

$—

$65,644,395

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

129,507,849

—

—

129,507,849

Short

Term

Investments

...................

9

1,320,363

—

1,320,372

Total

Investments

in

Securities

...........

$129,507,858

$1,320,363

$—

$130,828,221

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

45,626,429

—

—

45,626,429

Short

Term

Investments

...................

4

626,364

—

626,368

Total

Investments

in

Securities

...........

$45,626,433

$626,364

$—

$46,252,797

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

90,410,059

—

—

90,410,059

Short

Term

Investments

...................

6

925,675

—

925,681

Total

Investments

in

Securities

...........

$90,410,065

$925,675

$—

$91,335,740

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

40,963,647

—

—

40,963,647

Short

Term

Investments

...................

4

51,907

—

51,911

Total

Investments

in

Securities

...........

$40,963,651

$51,907

$—

$41,015,558

9.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

181

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.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

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

these

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

25,014,539

$

—

$

—

$

25,014,539

Short

Term

Investments

...................

2

—

—

2

Total

Investments

in

Securities

...........

$25,014,541

$—

$—

$25,014,541

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,494,577

—

—

1,494,577

Short

Term

Investments

...................

16,296

—

—

16,296

Total

Investments

in

Securities

...........

$1,510,873

$—

$—

$1,510,873

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

Selected

Portfolio

ETF

Exchange-Traded

Fund

9.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

182

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,

Franklin

LifeSmart™

2055

Retirement

Target

Fund

and

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

each

of

the

funds

listed

in

the

table

below

(ten

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2021,

the

related

statements

of

operations

and

changes

in

net

assets,

including

the

related

notes,

and

each

of

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

(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,

2021,

and

the

results

of

each

of

their

operations,

changes

in

each

of

their

net

assets,

and

each

of

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

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,

Franklin

LifeSmart™

2055

Retirement

Target

Fund

and

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(a)

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(b)

(a)

Statement

of

operations

for

the

year

ended

December

31,

2021,

and

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2021

(b)

Statement

of

operations,

statement

of

changes

in

net

assets,

and

the

financial

highlights

for

the

period

January

29,

2021

(commencement

of

operations)

through

December

31,

2021

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,

2021

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.

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

183

franklintempleton.com

Annual

Report

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2022

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)

184

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2021:

Pursuant

to:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$380,525

$2,376,192

$11,259,065

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$322,706

$174,685

$631,582

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$449,207

$344,542

$1,290,921

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$1,223,735

$890,048

$2,760,589

Pursuant

to:

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$6,248,260

$16,961,335

$7,666,398

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$338,425

$723,739

$292,101

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$715,541

$1,596,031

$680,371

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$2,097,718

$3,772,511

$2,286,207

Pursuant

to:

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$14,131,032

$7,833,963

$2,972,416

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$588,108

$274,205

$171,913

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$1,373,805

$686,798

$422,251

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$3,322,675

$2,426,967

$1,566,675

Pursuant

to:

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$993

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$8,158

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$20,238

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$35,351

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

185

franklintempleton.com

Annual

Report

Under

Section

853

of

the

Internal

Revenue

Code,

the

Funds

below

intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2021:

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

Foreign

Taxes

Paid

$1,483

$11,441

$47,493

$25,092

$62,038

Foreign

Source

Income

Earned

$9,026

$48,623

$198,096

$106,154

$256,966

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Foreign

Taxes

Paid

$23,087

$53,368

$24,053

$15,453

$947

Foreign

Source

Income

Earned

$100,464

$226,251

$105,062

$66,755

$3,915

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

186

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

120

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

101

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

121

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

187

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

121

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

121

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(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

121

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Franklin

Fund

Allocator

Series

188

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

May

2021

101

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(January

2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-January

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

132

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

121

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Franklin

Fund

Allocator

Series

189

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

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,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

-

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

July

2021

Not

Applicable

Not

Applicable

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Franklin

Fund

Allocator

Series

190

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Franklin

Fund

Allocator

Series

Shareholder

Information

191

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.

RTF

A

02/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

December

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

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,

2021,

the

U.S.

economy

continued

to

recover

from

the

COVID-19

pandemic,

benefiting

equities.

Growth

accelerated

in

2021’s

first

half

as

the

reopening

of

businesses,

widespread

COVID-19

vaccinations

and

federal

assistance

programs

continued

to

boost

consumer

spending.

Inflation

increased

during

the

reporting

period

due

to

increased

demand

for

goods

amid

supply-chain

bottlenecks.

During

the

period’s

second

half,

investors

became

concerned

that

new,

swiftly

spreading

COVID-19

variants

could

hinder

the

economic

recovery,

and

growth

slowed

in

2021’s

third

quarter.

During

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

held

the

federal

funds

rate

unchanged

at

0.25%,

and

it

continued

broad

quantitative

easing

measures

to

bolster

credit

markets.

However,

the

Federal

Reserve

began

decreasing

its

asset

purchases

in

November

and

accelerated

its

tapering

in

December,

while

reiterating

its

intention

to

delay

interest

rate

increases

until

reaching

its

goal

of

maximum

U.S.

employment.

Rebounding

global

economies,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

pandemic

restrictions

and

expanding

vaccination

programs

benefited

global

equities,

but

some

business

restrictions

by

China,

the

spread

of

COVID-19

variants

and

higher

inflation

amid

supply-chain

disruptions

hindered

global

stocks

near

period-end.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+26.89%

(the

index

increasing

from

3,756.07

to

4,766.18).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+20.14%

(the

index

increasing

from

2,690.044

to

3,231.727).

2,3

Investment-

grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.54%

total

return

(an

index

decrease

from

2,392.02

to

2,355.14),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2021,

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

©

2022,

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

+28.71%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

9,986.70)

and

MSCI

World

Index

+22.35%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

14,223.137).

4.

Sources:

Morningstar

and

Bloomberg

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

65

Shareholder

Information

70

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-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+18.54%

total

return

for

the

12

months

ended

December

31,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

easing

COVID-19

pandemic

restrictions

in

certain

regions

and

the

development

of

treatments

and

vaccines.

However,

the

Chinese

government’s

imposition

of

additional

restrictions

on

some

businesses

pressured

Asian

and

global

emerging

market

stocks.

Additionally,

the

spread

of

the

Delta

and

Omicron

variants

and

higher

inflation

in

an

environment

of

persistent

supply-chain

disruptions

hindered

global

equities

at

certain

points

during

the

12-month

period.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

monetary

and

fiscal

stimulus

measures

and

the

continued

progress

of

vaccination

programs.

Gross

domestic

product

(GDP)

growth

was

generally

robust,

as

the

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

supported

the

economy.

A

rebound

in

corporate

earnings

and

the

passage

of

a

bipartisan

infrastructure

bill

further

bolstered

investor

sentiment.

In

an

effort

to

support

the

economy,

the

U.S.

Federal

Reserve

(Fed)

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%.

While

the

Fed

also

maintained

quantitative

easing

measures

with

U.S.

Treasury

and

mortgage

bond

purchasing,

it

began

to

reduce

the

rate

of

purchases

beginning

in

November

2021

and

accelerated

the

pace

of

tapering

in

December.

The

Fed

also

noted

that

it

expected

easing

supply

constraints

to

help

reduce

inflationary

pressures

and

that

further

employment

progress

was

needed

before

the

Fed

would

consider

raising

the

range

for

the

federal

funds

target

rate.

The

economic

recovery

in

the

eurozone

was

slow,

as

quarter-over-quarter

GDP

growth

contracted

in

2021’s

first

quarter

before

returning

to

growth

in

2021’s

second

and

third

quarters.

GDP

growth

rates

were

initially

sluggish

among

the

region’s

largest

economies,

although

most

showed

signs

of

improvement

later

in

the

12-month

period.

Business

activity

growth

also

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+16.30%

total

return

for

the

12

months

under

review.

1

However,

in

November

2021,

the

annual

inflation

rate

in

the

eurozone

reached

the

highest

level

since

the

introduction

of

the

euro,

and

the

prospect

of

energy

shortages

during

the

winter

months

tempered

investor

optimism.

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-2.49%

total

return

for

the

12-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

quarter-over-quarter

GDP

contracted

in

2021’s

third

quarter.

China’s

economic

recovery

continued,

although

the

country’s

quarter-over-quarter

GDP

growth

in

2021’s

first

three

quarters

was

slower

than

in

2020’s

second

half,

pressured

by

higher

commodity

prices.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-related

businesses,

and

concerns

about

a

Chinese

large

property

developer’s

solvency

pressured

Asian

stocks

during

2021’s

fourth

quarter.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-2.54%

total

return

for

the

12

months

under

review.

1

Higher

inflation

led

many

central

banks

in

emerging

market

countries

to

raise

interest

rates,

which

dampened

economic

growth.

The

Omicron

variant

of

COVID-19

also

negatively

impacted

global

emerging

markets,

as

some

countries

reimplemented

restrictions

in

an

effort

to

counter

rising

infections.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2021.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

Conservative

Allocation

Fund

This

annual

report

for

Franklin

Conservative

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2021

.

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

+8.18%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Conservative

Allocation

Fund

Index-

NR

(Blended

Benchmark-NR)

posted

a

+4.26%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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.

Under

normal

market

conditions,

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.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed

income

securities,

and

may

also

have

exposure

to

derivative

instruments.

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

and

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*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.

During

the

reporting

period,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

MSCI

ACWI-NR,

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Fixed

Income

50.9%

Domestic

Equity

35.5%

Foreign

Equity

9.7%

Foreign

Fixed

Income

2.5%

Alternative

Strategies

0.5%

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:

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

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

21.7%

Franklin

U.S.

Core

Equity

(IU)

Fund

18.4%

Franklin

Growth

Fund,

Class

R6

9.3%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

7.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.5%

Franklin

Liberty

High

Yield

Corporate

ETF

4.4%

Franklin

International

Core

Equity

(IU)

Fund

4.3%

Schwab

U.S.

TIPS

ETF

3.9%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

3.9%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

2.9%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+8.18%

+2.23%

5-Year

+42.99%

+6.21%

10-Year

+79.76%

+5.44%

Advisor

1-Year

+8.45%

+8.45%

5-Year

+44.82%

+7.69%

10-Year

+84.43%

+6.31%

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

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

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

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

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

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.3514

$0.2449

$0.6813

$1.2776

C

$0.2334

$0.2449

$0.6813

$1.1596

R

$0.3087

$0.2449

$0.6813

$1.2349

R6

$0.3999

$0.2449

$0.6813

$1.3261

Advisor

$0.3899

$0.2449

$0.6813

$1.3161

Total

Annual

Operating

Expenses

7

Share

Class

A

0.87%

Advisor

0.62%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,031.20

$3.19

$1,022.07

$3.17

0.62%

C

$1,000

$1,027.10

$7.00

$1,018.29

$6.97

1.37%

R

$1,000

$1,029.70

$4.46

$1,020.81

$4.44

0.87%

R6

$1,000

$1,033.00

$1.61

$1,023.62

$1.60

0.31%

Advisor

$1,000

$1,032.60

$1.90

$1,023.34

$1.89

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,

2021

.

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

+12.38%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Moderate

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+8.86%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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.

Under

normal

market

conditions,

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.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

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

and

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*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.

During

the

reporting

period,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

MSCI

ACWI-NR,

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

50.3%

Domestic

Fixed

Income

31.7%

Foreign

Equity

15.2%

Foreign

Fixed

Income

1.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.8%

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

34

.

Franklin

Moderate

Allocation

Fund

11

franklintempleton.com

Annual

Report

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

25.8%

Franklin

Liberty

U.S.

Core

Bond

ETF

13.6%

Franklin

Growth

Fund,

Class

R6

13.0%

Franklin

International

Core

Equity

(IU)

Fund

6.5%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.4%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.6%

Franklin

Liberty

High

Yield

Corporate

ETF

2.7%

Franklin

LibertyQ

U.S.

Equity

ETF

2.5%

Vanguard

S&P

500

ETF

2.5%

Schwab

U.S.

TIPS

ETF

2.4%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+12.38%

+6.20%

5-Year

+62.25%

+8.93%

10-Year

+117.39%

+7.46%

Advisor

1-Year

+12.64%

+12.64%

5-Year

+64.26%

+10.44%

10-Year

+122.90%

+8.35%

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

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

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.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

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

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4107

$0.3277

$1.3404

$2.0788

C

$0.2804

$0.3277

$1.3404

$1.9485

R

$0.3665

$0.3277

$1.3404

$2.0346

R6

$0.4661

$0.3277

$1.3404

$2.1342

Advisor

$0.4537

$0.3277

$1.3404

$2.1218

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,043.70

$3.21

$1,022.06

$3.18

0.62%

C

$1,000

$1,040.70

$7.06

$1,018.29

$6.98

1.37%

R

$1,000

$1,042.40

$4.50

$1,020.80

$4.45

0.87%

R6

$1,000

$1,045.60

$1.53

$1,023.71

$1.52

0.30%

Advisor

$1,000

$1,045.10

$1.93

$1,023.32

$1.91

0.37%

16

franklintempleton.com

Annual

Report

Franklin

Growth

Allocation

Fund

This

annual

report

for

Franklin

Growth

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2021

.

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

+16.41%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Growth

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+13.62%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index-NR

(ACWI-NR),

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-4.51%

cumulative

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.

Under

normal

market

conditions,

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.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

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

and

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*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.

During

the

reporting

period,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

MSCI

ACWI-NR,

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

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

64.3%

Foreign

Equity

21.0%

Domestic

Fixed

Income

12.3%

Foreign

Fixed

Income

1.0%

Alternative

Strategies

0.5%

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:

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

41

.

Franklin

Growth

Allocation

Fund

17

franklintempleton.com

Annual

Report

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Bloomberg

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

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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

12/31/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

27.2%

Franklin

Growth

Fund,

Class

R6

18.5%

Franklin

International

Core

Equity

(IU)

Fund

9.0%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

8.7%

Vanguard

S&P

500

ETF

6.7%

Franklin

Liberty

U.S.

Core

Bond

ETF

5.1%

Franklin

LibertyQ

U.S.

Equity

ETF

3.3%

Templeton

Foreign

Fund,

Class

R6

3.2%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.4%

Templeton

Developing

Markets

Trust,

Class

R6

2.4%

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+16.41%

+10.03%

5-Year

+81.68%

+11.42%

10-Year

+164.18%

+9.58%

Advisor

1-Year

+16.71%

+16.71%

5-Year

+84.05%

+12.98%

10-Year

+171.02%

+10.48%

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

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

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.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

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

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.4794

$0.5179

$1.8549

$2.8522

C

$0.3676

$0.5179

$1.8549

$2.7404

R

$0.4241

$0.5179

$1.8549

$2.7969

R6

$0.5559

$0.5179

$1.8549

$2.9287

Advisor

$0.5321

$0.5179

$1.8549

$2.9049

Total

Annual

Operating

Expenses

7

Share

Class

A

0.93%

Advisor

0.68%

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,054.90

$3.50

$1,021.79

$3.45

0.68%

C

$1,000

$1,050.90

$7.40

$1,017.99

$7.29

1.43%

R

$1,000

$1,053.80

$4.81

$1,020.53

$4.73

0.93%

R6

$1,000

$1,057.30

$1.56

$1,023.69

$1.53

0.30%

Advisor

$1,000

$1,056.50

$2.21

$1,023.05

$2.18

0.43%

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,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.95

$14.08

$13.33

$14.86

$13.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.23

0.22

0.32

0.39

0.20

Net

realized

and

unrealized

gains

(losses)

...........

0.99

1.05

1.43

(0.90)

1.25

Total

from

investment

operations

....................

1.22

1.27

1.75

(0.51)

1.45

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.35)

(0.23)

(0.33)

(0.38)

(0.24)

Net

realized

gains

.............................

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...............................

(1.28)

(0.40)

(1.00)

(1.02)

(0.33)

Net

asset

value,

end

of

year

.......................

$14.89

$14.95

$14.08

$13.33

$14.86

Total

return

d

...................................

8.18%

9.30%

13.25%

(3.44)%

10.58%

Ratios

to

average

net

assets

Expenses

e,f

....................................

0.62%

0.63%

0.63%

g

0.63%

g

0.63%

Net

investment

income

c

...........................

1.47%

1.54%

2.25%

2.57%

1.37%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,081,071

$941,777

$839,134

$778,221

$800,141

Portfolio

turnover

rate

............................

61.92%

48.36%

86.76%

30.70%

17.99%

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

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

0.25%

for

the

period

ended

December

31,

2021.

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,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.62

$13.77

$13.06

$14.57

$13.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.09

0.10

0.20

0.24

0.09

Net

realized

and

unrealized

gains

(losses)

...........

0.99

1.05

1.40

(0.84)

1.23

Total

from

investment

operations

....................

1.08

1.15

1.60

(0.60)

1.32

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.23)

(0.13)

(0.22)

(0.27)

(0.13)

Net

realized

gains

.............................

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...............................

(1.16)

(0.30)

(0.89)

(0.91)

(0.22)

Net

asset

value,

end

of

year

.......................

$14.54

$14.62

$13.77

$13.06

$14.57

Total

return

d

...................................

7.40%

8.51%

12.35%

(4.14)%

9.80%

Ratios

to

average

net

assets

Expenses

e,f

....................................

1.37%

1.38%

1.38%

g

1.38%

g

1.38%

Net

investment

income

c

...........................

0.61%

0.76%

1.50%

1.82%

0.62%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$152,244

$212,656

$252,407

$285,547

$423,890

Portfolio

turnover

rate

............................

61.92%

48.36%

86.76%

30.70%

17.99%

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

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

0.25%

for

the

period

ended

December

31,

2021.

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,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.88

$14.02

$13.28

$14.80

$13.69

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.18

0.18

0.28

0.33

0.16

Net

realized

and

unrealized

gains

(losses)

...........

1.01

1.05

1.42

(0.87)

1.24

Total

from

investment

operations

....................

1.19

1.23

1.70

(0.54)

1.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.31)

(0.20)

(0.29)

(0.34)

(0.20)

Net

realized

gains

.............................

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...............................

(1.24)

(0.37)

(0.96)

(0.98)

(0.29)

Net

asset

value,

end

of

year

.......................

$14.83

$14.88

$14.02

$13.28

$14.80

Total

return

....................................

7.99%

8.98%

12.93%

(3.64)%

10.25%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.87%

0.88%

0.88%

f

0.88%

f

0.88%

Net

investment

income

c

...........................

1.14%

1.28%

2.00%

2.32%

1.12%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$55,629

$66,208

$71,153

$80,338

$103,629

Portfolio

turnover

rate

............................

61.92%

48.36%

86.76%

30.70%

17.99%

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

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

0.25%

for

the

period

ended

December

31,

2021.

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

0

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.92

$14.06

$13.31

$14.84

$13.72

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.28

0.26

0.36

0.44

0.25

Net

realized

and

unrealized

gains

(losses)

...........

1.00

1.05

1.44

(0.90)

1.25

Total

from

investment

operations

....................

1.28

1.31

1.80

(0.46)

1.50

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.40)

(0.28)

(0.38)

(0.43)

(0.29)

Net

realized

gains

.............................

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...............................

(1.33)

(0.45)

(1.05)

(1.07)

(0.38)

Net

asset

value,

end

of

year

.......................

$14.87

$14.92

$14.06

$13.31

$14.84

Total

return

....................................

8.60%

9.61%

13.64%

(3.11)%

10.99%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.39%

0.40%

0.42%

0.40%

0.32%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.30%

0.30%

0.31%

e

0.29%

e

0.28%

Net

investment

income

c

...........................

1.78%

1.86%

2.57%

2.91%

1.72%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,852

$2,537

$2,364

$2,253

$2,149

Portfolio

turnover

rate

............................

61.92%

48.36%

86.76%

30.70%

17.99%

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

period

ended

December

31,

2021.

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,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.95

$14.08

$13.33

$14.86

$13.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.27

0.25

0.36

0.43

0.25

Net

realized

and

unrealized

gains

(losses)

...........

0.99

1.06

1.43

(0.90)

1.24

Total

from

investment

operations

....................

1.26

1.31

1.79

(0.47)

1.49

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.39)

(0.27)

(0.37)

(0.42)

(0.28)

Net

realized

gains

.............................

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...............................

(1.32)

(0.44)

(1.04)

(1.06)

(0.37)

Net

asset

value,

end

of

year

.......................

$14.89

$14.95

$14.08

$13.33

$14.86

Total

return

....................................

8.45%

9.58%

13.53%

(3.19)%

10.88%

Ratios

to

average

net

assets

Expenses

d,e

....................................

0.37%

0.38%

0.38%

f

0.38%

f

0.38%

Net

investment

income

c

...........................

1.72%

1.79%

2.50%

2.82%

1.62%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$54,537

$48,041

$44,022

$38,031

$38,934

Portfolio

turnover

rate

............................

61.92%

48.36%

86.76%

30.70%

17.99%

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

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

0.25%

for

the

period

ended

December

31,

2021.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

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

99.1%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

325,713

$

7,045,368

Domestic

Equity

35.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

1,543,674

61,114,060

a

Franklin

Growth

Fund,

Class

R6

........................................

828,711

125,309,415

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

515,205

24,230,091

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

16,438,636

247,730,250

Vanguard

S&P

500

ETF

..............................................

46,180

20,160,803

478,544,619

Domestic

Fixed

Income

50.9%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,041,335

33,637,163

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

2,239,059

58,685,736

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,006,793

25,959,352

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

1,307,184

32,653,456

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

11,639,617

292,437,229

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,183,368

52,179,875

Schwab

U.S.

TIPS

ETF

...............................................

831,095

52,267,564

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

8,258,494

98,441,245

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

10,109,639

39,225,398

685,487,018

Foreign

Equity

9.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

1,137,763

12,651,929

a

Franklin

FTSE

Europe

ETF

............................................

181,099

5,320,689

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

4,622,381

57,733,541

a

Franklin

International

Growth

Fund,

Class

R6

..............................

484,139

10,394,454

iShares

Core

MSCI

EAFE

ETF

.........................................

138,875

10,365,630

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

600,167

13,335,719

a

Templeton

Foreign

Fund,

Class

R6

......................................

2,934,423

20,687,681

130,489,643

Foreign

Fixed

Income

2.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

1,350,036

33,062,382

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,167,391,617)

..............................................................

1,334,629,030

a

a

a

a

Short

Term

Investments

0.5%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

85

85

Total

Money

Market

Funds

(Cost

$85)

..........................................

85

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

0.5%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$6,496,585)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$2,751,694)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$332,755)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$3,412,136)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$6,628,456)

........................................

$

6,496,569

$

6,496,569

Total

Repurchase

Agreements

(Cost

$6,496,569)

................................

6,496,569

Total

Short

Term

Investments

(Cost

$6,496,654

)

.................................

6,496,654

a

Total

Investments

(Cost

$1,173,888,271)

99.6%

..................................

$1,341,125,684

Other

Assets,

less

Liabilities

0.4%

.............................................

5,207,403

Net

Assets

100.0%

...........................................................

$1,346,333,087

See

Abbreviations

on

page

62

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.17

$15.08

$14.06

$16.11

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.22

0.19

0.28

0.34

0.20

Net

realized

and

unrealized

gains

(losses)

...........

1.77

1.60

2.15

(1.11)

2.01

Total

from

investment

operations

....................

1.99

1.79

2.43

(0.77)

2.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.41)

(0.22)

(0.28)

(0.33)

(0.29)

Net

realized

gains

.............................

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...............................

(2.08)

(0.70)

(1.41)

(1.28)

(0.96)

Net

asset

value,

end

of

year

.......................

$16.08

$16.17

$15.08

$14.06

$16.11

Total

return

d

...................................

12.38%

12.37%

17.40%

(4.82)%

14.98%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.63%

0.64%

0.63%

0.63%

0.66%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.62%

0.64%

f,g

0.63%

f,g

0.63%

f

0.65%

Net

investment

income

c

...........................

1.29%

1.29%

1.78%

2.02%

1.23%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,794,149

$1,573,566

$1,456,531

$1,318,198

$1,407,956

Portfolio

turnover

rate

............................

56.07%

44.49%

71.70%

33.65%

16.86%

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

period

ended

December

31,

2021.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.64

$14.60

$13.65

$15.66

$14.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.07

0.07

0.15

0.17

0.07

Net

realized

and

unrealized

gains

(losses)

...........

1.73

1.56

2.09

(1.02)

1.94

Total

from

investment

operations

....................

1.80

1.63

2.24

(0.85)

2.01

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.28)

(0.11)

(0.16)

(0.21)

(0.16)

Net

realized

gains

.............................

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...............................

(1.95)

(0.59)

(1.29)

(1.16)

(0.83)

Net

asset

value,

end

of

year

.......................

$15.49

$15.64

$14.60

$13.65

$15.66

Total

return

d

...................................

11.55%

11.57%

16.52%

(5.54)%

14.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.37%

1.39%

1.38%

1.38%

1.41%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.37%

f

1.39%

f,g

1.38%

f,g

1.38%

f

1.40%

Net

investment

income

c

...........................

0.43%

0.50%

1.03%

1.27%

0.48%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$205,894

$289,283

$339,845

$375,494

$568,280

Portfolio

turnover

rate

............................

56.07%

44.49%

71.70%

33.65%

16.86%

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

period

ended

December

31,

2021.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.15

$15.05

$14.04

$16.08

$14.82

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.17

0.15

0.23

0.27

0.14

Net

realized

and

unrealized

gains

(losses)

...........

1.77

1.61

2.15

(1.07)

2.02

Total

from

investment

operations

....................

1.94

1.76

2.38

(0.80)

2.16

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.37)

(0.18)

(0.24)

(0.29)

(0.23)

Net

realized

gains

.............................

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...............................

(2.04)

(0.66)

(1.37)

(1.24)

(0.90)

Net

asset

value,

end

of

year

.......................

$16.05

$16.15

$15.05

$14.04

$16.08

Total

return

....................................

12.05%

12.17%

17.05%

(5.04)%

14.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.87%

0.89%

0.88%

0.88%

0.91%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.87%

e

0.89%

e,f

0.88%

e,f

0.88%

e

0.90%

Net

investment

income

c

...........................

1.01%

1.01%

1.53%

1.77%

0.98%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$69,211

$68,789

$78,999

$87,277

$119,920

Portfolio

turnover

rate

............................

56.07%

44.49%

71.70%

33.65%

16.86%

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

period

ended

December

31,

2021.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.17

$15.08

$14.06

$16.11

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.27

0.24

0.34

0.41

0.26

Net

realized

and

unrealized

gains

(losses)

...........

1.78

1.60

2.15

(1.12)

2.01

Total

from

investment

operations

....................

2.05

1.84

2.49

(0.71)

2.27

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.47)

(0.27)

(0.34)

(0.39)

(0.35)

Net

realized

gains

.............................

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...............................

(2.14)

(0.75)

(1.47)

(1.34)

(1.02)

Net

asset

value,

end

of

year

.......................

$16.08

$16.17

$15.08

$14.06

$16.11

Total

return

....................................

12.74%

12.76%

17.81%

(4.49)%

15.40%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.33%

0.33%

0.34%

0.35%

0.30%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.30%

0.30%

e

0.29%

e

0.29%

0.28%

Net

investment

income

c

...........................

1.60%

1.61%

2.12%

2.36%

1.60%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$7,261

$6,767

$6,666

$5,141

$4,492

Portfolio

turnover

rate

............................

56.07%

44.49%

71.70%

33.65%

16.86%

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

period

ended

December

31,

2021.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.19

$15.09

$14.07

$16.12

$14.88

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.27

0.23

0.32

0.39

0.26

Net

realized

and

unrealized

gains

(losses)

...........

1.76

1.61

2.15

(1.11)

1.98

Total

from

investment

operations

....................

2.03

1.84

2.47

(0.72)

2.24

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.45)

(0.26)

(0.32)

(0.38)

(0.33)

Net

realized

gains

.............................

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...............................

(2.12)

(0.74)

(1.45)

(1.33)

(1.00)

Net

asset

value,

end

of

year

.......................

$16.10

$16.19

$15.09

$14.07

$16.12

Total

return

....................................

12.64%

12.72%

17.68%

(4.57)%

15.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.38%

0.39%

0.38%

0.38%

0.41%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.37%

0.39%

e,f

0.38%

e,f

0.38%

e

0.40%

Net

investment

income

c

...........................

1.55%

1.53%

2.03%

2.27%

1.48%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$78,346

$66,421

$61,026

$55,052

$52,575

Portfolio

turnover

rate

............................

56.07%

44.49%

71.70%

33.65%

16.86%

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

period

ended

December

31,

2021.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

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

99.2%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

519,189

$

11,230,370

Domestic

Equity

50.3%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

3,480,130

137,778,328

a

Franklin

Growth

Fund,

Class

R6

........................................

1,859,131

281,119,140

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

1,166,237

54,848,126

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

36,947,489

556,798,655

Vanguard

S&P

500

ETF

..............................................

123,230

53,798,521

1,084,342,770

Domestic

Fixed

Income

31.7%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

2,908,875

32,172,162

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

2,244,467

58,827,480

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,009,224

26,022,034

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

1,310,341

32,732,318

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

11,656,677

292,865,850

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,188,641

52,305,894

Schwab

U.S.

TIPS

ETF

...............................................

833,102

52,393,785

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

8,279,104

98,686,924

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

10,133,878

39,319,448

685,325,895

Foreign

Equity

15.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,254,549

36,190,583

a

Franklin

FTSE

Europe

ETF

............................................

433,009

12,721,804

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

11,171,365

139,530,343

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,157,719

24,856,235

iShares

Core

MSCI

EAFE

ETF

.........................................

331,650

24,754,356

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,627,670

36,166,834

a

Templeton

Foreign

Fund,

Class

R6

......................................

7,132,475

50,283,951

324,504,106

Foreign

Fixed

Income

1.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

1,291,178

31,620,949

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,750,923,812)

..............................................................

2,137,024,090

a

a

a

a

Short

Term

Investments

0.5%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

132

132

Total

Money

Market

Funds

(Cost

$132)

.........................................

132

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.5%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$10,184,680)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$4,313,823)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$521,659)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$5,349,198)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$10,391,412)

.......................................

$

10,184,653

$

10,184,653

Total

Repurchase

Agreements

(Cost

$10,184,653)

...............................

10,184,653

Total

Short

Term

Investments

(Cost

$10,184,785

)

................................

10,184,785

a

Total

Investments

(Cost

$1,761,108,597)

99.7%

..................................

$2,147,208,875

Other

Assets,

less

Liabilities

0.3%

.............................................

7,653,445

Net

Assets

100.0%

...........................................................

$2,154,862,320

See

Abbreviations

on

page

62

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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

Growth

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.64

$18.13

$16.54

$19.34

$17.43

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.23

0.19

0.25

0.30

0.22

Net

realized

and

unrealized

gains

(losses)

...........

2.97

2.32

3.36

(1.54)

3.12

Total

from

investment

operations

....................

3.20

2.51

3.61

(1.24)

3.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.48)

(0.22)

(0.25)

(0.30)

(0.32)

Net

realized

gains

.............................

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...............................

(2.85)

(1.00)

(2.02)

(1.56)

(1.43)

Net

asset

value,

end

of

year

.......................

$19.99

$19.64

$18.13

$16.54

$19.34

Total

return

d

...................................

16.41%

14.58%

21.90%

(6.45)%

19.45%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.66%

0.68%

0.68%

0.67%

0.70%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.66%

f

0.67%

g

0.65%

g

0.65%

g

0.65%

g

Net

investment

income

c

...........................

1.07%

1.07%

1.32%

1.48%

1.14%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,258,769

$1,074,822

$974,391

$837,327

$873,011

Portfolio

turnover

rate

............................

59.90%

39.22%

63.65%

30.79%

16.90%

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

period

ended

December

31,

2021.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

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,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.03

$17.62

$16.12

$18.81

$16.99

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.04

0.05

0.10

0.10

0.07

Net

realized

and

unrealized

gains

(losses)

...........

2.91

2.25

3.27

(1.43)

3.04

Total

from

investment

operations

....................

2.95

2.30

3.37

(1.33)

3.11

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.37)

(0.11)

(0.10)

(0.10)

(0.18)

Net

realized

gains

.............................

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...............................

(2.74)

(0.89)

(1.87)

(1.36)

(1.29)

Net

asset

value,

end

of

year

.......................

$19.24

$19.03

$17.62

$16.12

$18.81

Total

return

d

...................................

15.59%

13.74%

20.95%

(7.13)%

18.56%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.41%

1.42%

1.43%

1.42%

1.45%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.41%

f

1.42%

f,g

1.40%

g

1.40%

g

1.40%

g

Net

investment

income

c

...........................

0.20%

0.28%

0.57%

0.73%

0.39%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$141,604

$186,526

$202,689

$206,933

$311,640

Portfolio

turnover

rate

............................

59.90%

39.22%

63.65%

30.79%

16.90%

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

period

ended

December

31,

2021.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

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.

38

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.38

$17.89

$16.34

$19.10

$17.22

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.16

0.14

0.18

0.22

0.15

Net

realized

and

unrealized

gains

(losses)

...........

2.93

2.30

3.33

(1.49)

3.11

Total

from

investment

operations

....................

3.09

2.44

3.51

(1.27)

3.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.42)

(0.17)

(0.19)

(0.23)

(0.27)

Net

realized

gains

.............................

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...............................

(2.79)

(0.95)

(1.96)

(1.49)

(1.38)

Net

asset

value,

end

of

year

.......................

$19.68

$19.38

$17.89

$16.34

$19.10

Total

return

....................................

16.14%

14.30%

21.56%

(6.68)%

19.17%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.91%

0.92%

0.93%

0.92%

0.95%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.91%

e

0.92%

e,f

0.90%

f

0.90%

f

0.90%

f

Net

investment

income

c

...........................

0.77%

0.77%

1.07%

1.23%

0.89%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$54,097

$54,297

$62,973

$72,100

$100,258

Portfolio

turnover

rate

............................

59.90%

39.22%

63.65%

30.79%

16.90%

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

period

ended

December

31,

2021.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

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,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.73

$18.20

$16.60

$19.40

$17.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.29

0.26

0.32

0.40

0.31

Net

realized

and

unrealized

gains

(losses)

...........

3.01

2.34

3.37

(1.57)

3.12

Total

from

investment

operations

....................

3.30

2.60

3.69

(1.17)

3.43

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.56)

(0.29)

(0.32)

(0.37)

(0.40)

Net

realized

gains

.............................

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...............................

(2.93)

(1.07)

(2.09)

(1.63)

(1.51)

Net

asset

value,

end

of

year

.......................

$20.10

$19.73

$18.20

$16.60

$19.40

Total

return

....................................

16.85%

15.06%

22.30%

(6.07)%

19.90%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.34%

0.35%

0.37%

0.36%

0.31%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.30%

0.30%

e

0.27%

e

0.28%

e

0.25%

e

Net

investment

income

c

...........................

1.37%

1.44%

1.70%

1.85%

1.54%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$5,434

$5,592

$4,806

$4,224

$3,364

Portfolio

turnover

rate

............................

59.90%

39.22%

63.65%

30.79%

16.90%

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

period

ended

December

31,

2021.

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,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.76

$18.22

$16.61

$19.42

$17.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.28

0.24

0.30

0.36

0.26

Net

realized

and

unrealized

gains

(losses)

...........

2.98

2.34

3.38

(1.56)

3.15

Total

from

investment

operations

....................

3.26

2.58

3.68

(1.20)

3.41

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.53)

(0.26)

(0.30)

(0.35)

(0.37)

Net

realized

gains

.............................

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...............................

(2.90)

(1.04)

(2.07)

(1.61)

(1.48)

Net

asset

value,

end

of

year

.......................

$20.12

$19.76

$18.22

$16.61

$19.42

Total

return

....................................

16.71%

14.90%

22.22%

(6.23)%

19.77%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.41%

0.43%

0.43%

0.42%

0.45%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.41%

e

0.42%

f

0.40%

f

0.40%

f

0.40%

f

Net

investment

income

c

...........................

1.32%

1.32%

1.57%

1.73%

1.39%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$60,851

$51,693

$44,684

$38,685

$38,912

Portfolio

turnover

rate

............................

59.90%

39.22%

63.65%

30.79%

16.90%

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

period

ended

December

31,

2021.

e

B

enefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

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

99.1%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

364,338

$

7,880,850

Domestic

Equity

64.3%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

3,330,651

131,860,456

a

Franklin

Growth

Fund,

Class

R6

........................................

1,856,873

280,777,716

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

1,071,481

50,391,751

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

27,432,020

413,400,541

Vanguard

S&P

500

ETF

..............................................

233,168

101,794,154

978,224,618

Domestic

Fixed

Income

12.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

1,364,649

15,093,015

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

593,874

15,565,438

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

267,016

6,884,794

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

346,708

8,660,766

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

3,092,616

77,699,812

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

579,087

13,839,484

Schwab

U.S.

TIPS

ETF

...............................................

220,437

13,863,283

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

2,196,867

26,186,655

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

2,688,674

10,432,054

188,225,301

Foreign

Equity

21.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,271,676

36,381,032

a

Franklin

FTSE

Europe

ETF

............................................

417,832

12,275,904

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

10,963,348

136,932,223

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,117,180

23,985,853

iShares

Core

MSCI

EAFE

ETF

.........................................

318,825

23,797,098

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,632,954

36,284,239

a

Templeton

Foreign

Fund,

Class

R6

......................................

6,955,847

49,038,723

318,695,072

Foreign

Fixed

Income

1.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

604,035

14,792,817

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,141,736,945)

..............................................................

1,507,818,658

a

a

a

a

Short

Term

Investments

0.6%

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

93

93

Total

Money

Market

Funds

(Cost

$93)

..........................................

93

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

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.6%

c

Joint

Repurchase

Agreement,

0.031%,

1/03/22

(Maturity

Value

$9,387,355)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$3,976,108)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$480,820)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$4,930,427)

Collateralized

by

U.S.

Government

Agency

Securities,

3%

-

5%,

1/20/48

-

10/20/51;

U.S.

Treasury

Note,

2.5%,

1/31/24;

and

U.S.

Cash

Management

Bill,

Discount

Note,

1/25/22

(valued

at

$9,577,903)

........................................

$

9,387,331

$

9,387,331

Total

Repurchase

Agreements

(Cost

$9,387,331)

................................

9,387,331

Total

Short

Term

Investments

(Cost

$9,387,424

)

.................................

9,387,424

a

Total

Investments

(Cost

$1,151,124,369)

99.7%

..................................

$1,517,206,082

Other

Assets,

less

Liabilities

0.3%

.............................................

3,549,920

Net

Assets

100.0%

...........................................................

$1,520,756,002

See

Abbreviations

on

page

62

.

†

Rounds

to

less

than

0.1%

of

net

assets.

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

Statements

Statements

of

Assets

and

Liabilities

December

31,

2021

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

.................................

$79,850,317

$125,131,588

$130,739,765

Cost

-

Controlled

affiliates

(Not

e

3f)

..........................

—

598,239,222

469,742,885

Cost

-

Non-controlled

affiliates

(Not

e

3f)

......................

1,087,541,385

1,027,553,134

541,254,388

Cost

-

Unaffiliated

repurchase

agreements

....................

6,496,569

10,184,653

9,387,331

Value

-

Unaffiliated

issuers

................................

$82,793,997

$130,946,662

$139,454,535

Value

-

Controlled

affiliates

(Not

e

3f)

.........................

—

732,519,581

586,713,796

Value

-

Non-controlled

affiliates

(Not

e

3f)

......................

1,251,835,118

1,273,557,979

781,650,420

Value

-

Unaffiliated

repurchase

agreements

....................

6,496,569

10,184,653

9,387,331

Cash

..................................................

359

—

—

Receivables:

Investment

securities

sold

.................................

6,171,811

9,140,603

4,600,948

Capital

shares

sold

......................................

2,063,137

3,108,657

1,728,847

Dividends

and

interest

...................................

17,211

40,899

39,333

Total

assets

........................................

1,349,378,202

2,159,499,034

1,523,575,210

Liabilities:

Payables:

Capital

shares

redeemed

.................................

2,106,068

3,167,362

1,603,761

Asset

allocation

fees

.....................................

299,609

455,656

373,524

Distribution

fees

........................................

381,205

579,438

404,042

Transfer

agent

fees

......................................

162,616

270,668

335,819

Distributions

to

shareholders

...............................

—

—

423

Accrued

expenses

and

other

liabilities

.........................

95,617

163,590

101,639

Total

liabilities

.......................................

3,045,115

4,636,714

2,819,208

Net

assets,

at

value

...............................

$1,346,333,087

$2,154,862,320

$1,520,756,002

Net

assets

consist

of:

Paid-in

capital

...........................................

$1,160,072,036

$1,723,032,692

$1,112,155,462

Total

distributable

earnings

(losses)

...........................

186,261,051

431,829,628

408,600,540

Net

assets,

at

value

...............................

$1,346,333,087

$2,154,862,320

$1,520,756,002

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2021

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

.....................................

$1,081,070,992

$1,794,148,833

$1,258,769,260

Shares

outstanding

......................................

72,587,995

111,552,723

62,954,368

Net

asset

value

per

share

a

................................

$14.89

$16.08

$19.99

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%,

94.50%

and

94.50%,

respectively)

..........................

$15.76

$17.02

$21.15

Class

C:

Net

assets,

at

value

.....................................

$152,244,163

$205,894,464

$141,604,070

Shares

outstanding

......................................

10,468,837

13,295,727

7,361,753

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$14.54

$15.49

$19.24

Class

R:

Net

assets,

at

value

.....................................

$55,629,463

$69,211,189

$54,097,311

Shares

outstanding

......................................

3,751,096

4,311,988

2,748,936

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.83

$16.05

$19.68

Class

R6:

Net

assets,

at

value

.....................................

$2,851,533

$7,261,455

$5,433,916

Shares

outstanding

......................................

191,763

451,606

270,403

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.87

$16.08

$20.10

Advisor

Class:

Net

assets,

at

value

.....................................

$54,536,936

$78,346,379

$60,851,445

Shares

outstanding

......................................

3,661,969

4,866,452

3,024,704

Net

asset

value

and

maximum

offering

price

per

share

...........

$14.89

$16.10

$20.12

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,

2021

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

......................................

$3,569,912

$4,953,721

$3,168,938

Controlled

affiliates

(Note

3f)

...............................

—

11,210,161

9,899,307

Non-controlled

affiliates

(Note

3f)

...........................

23,858,076

23,661,706

11,993,166

Interest:

Unaffiliated

issuers

......................................

367

542

436

Total

investment

income

.................................

27,428,355

39,826,130

25,061,847

Expenses:

Asset

allocation

fees

(Note

3

a

)

...............................

3,315,031

5,238,738

3,651,726

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

2,546,193

4,235,468

2,936,373

    Class

C

..............................................

1,893,519

2,517,088

1,674,838

    Class

R

..............................................

315,794

348,465

279,491

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

976,329

1,810,325

1,674,408

    Class

C

..............................................

180,965

266,352

240,364

    Class

R

..............................................

60,417

74,288

79,866

    Class

R6

.............................................

3,245

4,161

3,549

    Advisor

Class

..........................................

50,139

78,234

81,838

Custodian

fees

(Note

4

)

....................................

767

1,101

790

Reports

to

shareholders

fees

................................

96,108

136,609

110,128

Registration

and

filing

fees

..................................

128,022

142,814

111,280

Professional

fees

.........................................

53,478

57,569

54,954

Trustees'

fees

and

expenses

................................

12,435

18,905

13,441

Other

..................................................

28,963

35,102

28,453

Total

expenses

.......................................

9,661,405

14,965,219

10,941,499

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(17,787)

(70,299)

(16,628)

Net

expenses

.......................................

9,643,618

14,894,920

10,924,871

Net

investment

income

..............................

17,784,737

24,931,210

14,136,976

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

11,962,131

25,211,810

19,542,233

Controlled

affiliates

(Note

3f)

.............................

—

1,190,232

1,281,344

Non-controlled

affiliates

(Note

3f)

..........................

70,471,867

165,672,855

125,621,518

Capital

gain

distributions

from

Underlying

Funds:

Controlled

affiliates

(Note

3f)

.............................

—

43,625,956

33,846,168

Non-controlled

affiliates

(Note

3f)

..........................

33,972,607

31,912,064

30,635,637

Net

realized

gain

(loss)

................................

116,406,605

267,612,917

210,926,900

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(2,487,310)

(5,616,226)

1,498,655

Controlled

affiliates

(Note

3f)

.............................

—

63,563,417

54,427,974

Non-controlled

affiliates

(Note

3f)

..........................

(28,339,317)

(108,822,436)

(61,661,335)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(30,826,627)

(50,875,245)

(5,734,706)

Net

realized

and

unrealized

gain

(loss)

..........................

85,579,978

216,737,672

205,192,194

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$103,364,715

$241,668,882

$219,329,170

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,

2021

Year

Ended

December

31,

2020

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$17,784,737

$16,508,856

$24,931,210

$21,486,860

Net

realized

gain

(loss)

............

116,406,605

10,828,385

267,612,917

52,084,951

Net

change

in

unrealized

appreciation

(depreciation)

.................

(30,826,627)

76,644,464

(50,875,245)

138,741,590

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

103,364,715

103,981,705

241,668,882

212,313,401

Distributions

to

shareholders:

Class

A

........................

(86,399,978)

(24,460,840)

(209,165,195)

(66,300,133)

Class

C

........................

(11,677,282)

(4,684,059)

(24,425,442)

(11,584,805)

Class

R

........................

(4,419,238)

(1,713,261)

(8,018,288)

(2,947,776)

Class

R6

.......................

(235,873)

(74,133)

(857,248)

(313,717)

Advisor

Class

...................

(4,543,024)

(1,362,987)

(9,375,978)

(2,816,703)

Total

distributions

to

shareholders

.....

(107,275,395)

(32,295,280)

(251,842,151)

(83,963,134)

Capital

share

transactions:

(Note

2

)

Class

A

........................

146,064,064

48,852,200

234,619,766

14,400,299

Class

C

........................

(63,095,079)

(51,518,295)

(88,089,263)

(67,957,576)

Class

R

........................

(11,035,523)

(8,637,502)

499,570

(14,331,710)

Class

R6

.......................

325,049

34,192

537,584

(347,017)

Advisor

Class

...................

6,764,713

1,723,435

12,642,693

1,643,642

Total

capital

share

transactions

.......

79,023,224

(9,545,970)

160,210,350

(66,592,362)

Net

increase

(decrease)

in

net

assets

.....................

75,112,544

62,140,455

150,037,081

61,757,905

Net

assets:

Beginning

of

year

..................

1,271,220,543

1,209,080,088

2,004,825,239

1,943,067,334

End

of

year

......................

$1,346,333,087

$1,271,220,543

$2,154,862,320

$2,004,825,239

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,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$14,136,976

$11,739,021

Net

realized

gain

(loss)

.................................................

210,926,900

46,788,174

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(5,734,706)

113,453,268

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

219,329,170

171,980,463

Distributions

to

shareholders:

Class

A

.............................................................

(160,033,262)

(53,202,026)

Class

C

.............................................................

(18,823,850)

(9,062,162)

Class

R

.............................................................

(6,956,107)

(2,836,088)

Class

R6

............................................................

(717,514)

(285,717)

Advisor

Class

........................................................

(7,939,547)

(2,550,980)

Total

distributions

to

shareholders

..........................................

(194,470,280)

(67,936,973)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

168,099,386

17,198,516

Class

C

.............................................................

(51,602,781)

(29,089,134)

Class

R

.............................................................

(1,550,874)

(12,578,352)

Class

R6

............................................................

(296,846)

361,275

Advisor

Class

........................................................

8,318,607

3,451,500

Total

capital

share

transactions

............................................

122,967,492

(20,656,195)

Net

increase

(decrease)

in

net

assets

...................................

147,826,382

83,387,295

Net

assets:

Beginning

of

year

.......................................................

1,372,929,620

1,289,542,325

End

of

year

...........................................................

$1,520,756,002

$1,372,929,620

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

eighteen

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.

Effective

August

2,

2021,

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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,

2021.

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,

2021, 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,

2021,

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,

2021

Shares

sold

a

...................................

14,924,061

$231,532,249

17,078,662

$292,335,001

Shares

issued

in

reinvestment

of

distributions

..........

5,641,836

84,506,851

12,695,548

206,253,870

Shares

redeemed

...............................

(10,986,767)

(169,975,036)

(15,509,066)

(263,969,105)

Net

increase

(decrease)

..........................

9,579,130

$146,064,064

14,265,144

$234,619,766

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

Class

C

Class

C

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

2,430,528

$36,552,182

2,654,138

$43,455,760

Shares

issued

in

reinvestment

of

distributions

..........

792,779

11,589,606

1,551,141

24,279,944

Shares

redeemed

a

..............................

(7,301,383)

(111,236,867)

(9,408,070)

(155,824,967)

Net

increase

(decrease)

..........................

(4,078,076)

$(63,095,079)

(5,202,791)

$(88,089,263)

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)

Class

R

Class

R

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

381,609

$5,848,627

466,541

$7,885,871

Shares

issued

in

reinvestment

of

distributions

..........

296,128

4,419,140

494,163

8,008,064

Shares

redeemed

...............................

(1,374,701)

(21,303,290)

(909,188)

(15,394,365)

Net

increase

(decrease)

..........................

(696,964)

$(11,035,523)

51,516

$499,570

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)

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,

2021

Shares

sold

...................................

31,789

$488,983

57,590

$985,504

Shares

issued

in

reinvestment

of

distributions

..........

15,757

235,873

52,769

857,248

Shares

redeemed

...............................

(25,796)

(399,807)

(77,237)

(1,305,168)

Net

increase

(decrease)

..........................

21,750

$325,049

33,122

$537,584

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)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

1,061,339

$16,381,493

1,330,334

$22,629,505

Shares

issued

in

reinvestment

of

distributions

..........

240,672

3,607,232

515,427

8,385,092

Shares

redeemed

...............................

(854,332)

(13,224,012)

(1,082,185)

(18,371,904)

Net

increase

(decrease)

..........................

447,679

$6,764,713

763,576

$12,642,693

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

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,

2021

Shares

sold

a

...................................

8,658,427

$183,957,942

Shares

issued

in

reinvestment

of

distributions

..........

7,832,959

158,202,987

Shares

redeemed

...............................

(8,260,018)

(174,061,543)

Net

increase

(decrease)

..........................

8,231,368

$168,099,386

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

Class

C

Class

C

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

1,271,518

$25,846,031

Shares

issued

in

reinvestment

of

distributions

..........

964,036

18,775,043

Shares

redeemed

a

..............................

(4,674,532)

(96,223,855)

Net

increase

(decrease)

..........................

(2,438,978)

$(51,602,781)

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)

Class

R

Class

R

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

235,209

$4,899,326

Shares

issued

in

reinvestment

of

distributions

..........

349,129

6,942,891

Shares

redeemed

...............................

(638,662)

(13,393,091)

Net

increase

(decrease)

..........................

(54,324)

$(1,550,874)

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)

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,

2021

Shares

sold

...................................

50,946

$1,076,066

Shares

issued

in

reinvestment

of

distributions

..........

35,286

717,514

Shares

redeemed

...............................

(99,315)

(2,090,426)

Net

increase

(decrease)

..........................

(13,083)

$(296,846)

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

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2021

Shares

sold

...................................

622,446

$13,154,153

Shares

issued

in

reinvestment

of

distributions

..........

343,722

6,988,125

Shares

redeemed

...............................

(559,446)

(11,823,671)

Net

increase

(decrease)

..........................

406,722

$8,318,607

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

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

Distributors,

LLC

(

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,

2021,

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

..................

$201,823

$268,399

$232,072

CDSC

retained

...........................

$16,946

$27,599

$22,583

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

by

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,

2021,

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Transfer

agent

fees

........................

$645,663

$1,248,253

$1,173,687

    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

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

—

$

34,879,127

$

—

$

—

$

(1,241,964)

$

33,637,163

3,041,335

$

738,383

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

80,247,485

(27,590,883)

1,927,288

6,530,170

61,114,060

1,543,674

3,111,984

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

16,123,784

1,065,970

(4,240,664)

650,096

(947,257)

12,651,929

1,137,763

434,133

Franklin

FTSE

China

ETF

.....

3,114,896

89,404

(3,211,569)

20,146

(12,877)

—

—

—

Franklin

FTSE

Europe

ETF

....

12,816,076

228,045

(8,955,375)

1,331,823

(99,880)

5,320,689

181,099

190,821

Franklin

FTSE

Japan

ETF

.....

6,956,102

2,975,155

(10,060,528)

1,036,948

(907,677)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

126,745,749

10,520,474

(26,149,712)

10,212,997

3,979,907

125,309,415

828,711

10,519,129

a

Franklin

International

Core

Equity

(IU)

Fund

................

40,844,001

15,298,989

(347,496)

(7,502)

1,945,549

57,733,541

4,622,381

4,425,601

a

Franklin

International

Growth

Fund,

Class

R6

................

13,392,110

374,327

(3,461,504)

1,087,661

(998,140)

10,394,454

484,139

222,018

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

19,092,902

46,989,905

(6,731,663)

(42,327)

(623,081)

58,685,736

2,239,059

2,787,968

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

61,041,693

943,858

(26,988,525)

(347,839)

(1,586,805)

33,062,382

1,350,036

746,494

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

49,886,647

7,608,772

(29,424,582)

(635,443)

(1,476,042)

25,959,352

1,006,793

1,142,156

a

Franklin

Liberty

Senior

Loan

ETF

—

45,264,200

(12,459,989)

(82,623)

(68,132)

32,653,456

1,307,184

1,078,666

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

48,743,931

—

(48,562,962)

(154,368)

(26,601)

—

—

85,306

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)

Non-Controlled

Affiliates

(continued)

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

$

5,277,512

$

1,219,910

$

(96,631)

$

(23,152)

$

667,729

$

7,045,368

325,713

$

85,202

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

302,240,393

89,033,396

(86,524,331)

(381,489)

(11,930,740)

292,437,229

11,639,617

6,350,892

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

60,704,285

11,072,041

(17,070,947)

(883,567)

(1,641,937)

52,179,875

2,183,368

1,007,034

Franklin

LibertyQ

U.S.

Equity

ETF

93,294,463

16,047,532

(97,224,770)

20,701,085

(8,588,219)

24,230,091

515,205

863,986

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

55,875,006

122,193

(56,054,928)

473,865

(416,136)

—

—

176,877

Franklin

Rising

Dividends

Fund,

Class

R6

................

66,873,189

—

(68,799,427)

37,223,819

(35,297,581)

—

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

114,063,795

109,128,016

(2,543,933)

58,407

27,023,965

247,730,250

16,438,636

19,137,386

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

5,871,512

155,509,325

(161,380,752)

—

—

85

85

897

Templeton

Developing

Markets

Trust,

Class

R6

............

13,251,691

2,528,330

(880,643)

133,327

(1,696,986)

13,335,719

600,167

905,784

a

Templeton

Foreign

Fund,

Class

R6

18,026,683

8,317,807

(5,041,334)

(608,653)

(6,822)

20,687,681

2,934,423

919,021

Templeton

Global

Total

Return

Fund,

Class

R6

............

12,325,096

203,783

(12,005,404)

(1,350,484)

827,009

—

—

203,783

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

—

109,513,146

(10,056,685)

131,852

(1,147,068)

98,441,245

8,258,494

2,000,893

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

90,923,210

(51,098,111)

—

(599,701)

39,225,398

10,109,639

696,269

Total

Non-Controlled

Affiliates

$1,146,561,516

$840,104,400

$(776,963,348)

$70,471,867

$(28,339,317)

$1,251,835,118

$57,830,683

Total

Affiliated

Securities

....

$1,146,561,516

$840,104,400

$(776,963,348)

$70,471,867

$(28,339,317)

$1,251,835,118

$57,830,683

Franklin

Moderate

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$

40,977,794

$

3,319,967

$

(6,991,551)

$

1,089,612

$

(2,205,239)

$

36,190,583

3,254,549

$

1,192,184

Franklin

International

Core

Equity

(IU)

Fund

................

101,306,605

33,589,934

(433,381)

29,549

5,037,636

139,530,343

11,171,365

10,646,852

a

Franklin

U.S.

Core

Equity

(IU)

Fund

258,629,036

240,463,068

(3,095,540)

71,071

60,731,020

556,798,655

36,947,489

42,997,081

a

Total

Controlled

Affiliates

....

$400,913,435

$277,372,969

$(10,520,472)

$1,190,232

$63,563,417

$732,519,581

$54,836,117

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

33,511,818

—

—

(1,339,656)

32,172,162

2,908,875

700,206

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

159,696,269

(37,508,345)

1,074,798

14,515,606

137,778,328

3,480,130

6,873,435

a

Franklin

FTSE

China

ETF

.....

7,797,976

2,292,275

(10,087,578)

29,564

(32,237)

—

—

—

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)

Non-Controlled

Affiliates

(continued)

Franklin

FTSE

Europe

ETF

....

$

30,926,256

$

368,218

$

(22,111,734)

$

3,711,335

$

(172,271)

$

12,721,804

433,009

$

453,256

Franklin

FTSE

Japan

ETF

.....

15,981,407

3,621,102

(19,904,278)

2,208,268

(1,906,499)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

284,751,290

23,712,896

(59,881,868)

27,168,530

5,368,292

281,119,140

1,859,131

23,712,895

a

Franklin

International

Growth

Fund,

Class

R6

................

33,224,578

964,803

(9,545,773)

3,067,271

(2,854,644)

24,856,235

1,157,719

530,909

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

18,947,477

47,145,316

(6,677,181)

(42,721)

(545,411)

58,827,480

2,244,467

2,875,713

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

60,473,317

1,416,781

(28,366,660)

(377,800)

(1,524,689)

31,620,949

1,291,178

713,949

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

50,810,800

8,153,693

(30,918,446)

(1,138,833)

(885,180)

26,022,034

1,009,224

1,215,129

a

Franklin

Liberty

Senior

Loan

ETF

—

45,323,584

(12,441,530)

(79,223)

(70,513)

32,732,318

1,310,341

1,090,715

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

48,229,275

—

(48,050,217)

(156,176)

(22,882)

—

—

84,405

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

8,282,421

2,024,657

(37,218)

(9,084)

969,594

11,230,370

519,189

134,464

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

295,876,084

67,257,475

(58,555,396)

(64,609)

(11,647,704)

292,865,850

11,656,677

6,588,084

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

59,426,589

5,435,871

(10,068,449)

(528,037)

(1,960,080)

52,305,894

2,188,641

1,054,117

Franklin

LibertyQ

U.S.

Equity

ETF

204,062,468

31,234,711

(208,229,973)

46,987,958

(19,207,038)

54,848,126

1,166,237

1,976,639

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

54,722,180

119,672

(54,898,391)

527,390

(470,851)

—

—

173,227

Franklin

Rising

Dividends

Fund,

Class

R6

................

145,564,206

—

(150,002,629)

86,378,516

(81,940,093)

—

—

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

215,130,263

(215,130,131)

—

—

132

132

1,317

Templeton

Developing

Markets

Trust,

Class

R6

............

33,342,978

7,407,325

(96,860)

(10,433)

(4,476,176)

36,166,834

1,627,670

2,457,335

a

Templeton

Foreign

Fund,

Class

R6

44,361,410

19,826,307

(12,880,462)

(854,711)

(168,593)

50,283,951

7,132,475

2,233,793

Templeton

Global

Total

Return

Fund,

Class

R6

............

19,342,865

319,814

(18,841,144)

(2,197,026)

1,375,491

—

—

319,814

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

—

102,817,437

(2,878,576)

(22,122)

(1,229,815)

98,686,924

8,279,104

1,978,436

a

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

    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)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

39,916,535

$

—

$

—

$

(597,087)

$

39,319,448

10,133,878

$

405,932

Total

Non-Controlled

Affiliates

$1,416,123,577

$817,696,822

$(1,017,112,839)

$165,672,855

$(108,822,436)

$1,273,557,979

$55,573,770

Total

Affiliated

Securities

....

$1,817,037,012

$1,095,069,791

$(1,027,633,311)

$166,863,087

$(45,259,019)

$2,006,077,560

$110,409,887

Franklin

Growth

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$

42,192,366

$

4,100,893

$

(8,932,348)

$

1,271,608

$

(2,251,487)

$

36,381,032

$

3,271,676

$

1,197,893

Franklin

International

Core

Equity

(IU)

Fund

................

96,794,122

35,510,551

(142,792)

9,736

4,760,606

136,932,223

10,963,348

10,349,513

a

Franklin

U.S.

Core

Equity

(IU)

Fund

224,920,106

136,561,580

—

—

51,918,855

413,400,541

27,432,020

32,198,069

a

Total

Controlled

Affiliates

....

$363,906,594

$176,173,024

$(9,075,140)

$1,281,344

$54,427,974

$586,713,796

$43,745,475

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

15,543,254

—

—

(450,239)

15,093,015

1,364,649

330,397

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

159,992,360

(42,528,168)

1,033,139

13,363,125

131,860,456

3,330,651

6,506,940

a

Franklin

FTSE

China

ETF

.....

7,953,840

2,494,440

(10,443,975)

28,577

(32,882)

—

—

—

Franklin

FTSE

Europe

ETF

....

29,700,957

946,615

(22,198,438)

3,718,804

107,966

12,275,904

417,832

435,407

Franklin

FTSE

Japan

ETF

.....

14,977,315

3,228,547

(18,471,133)

1,719,910

(1,454,639)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

248,864,005

37,956,810

(34,699,389)

5,542,737

23,113,553

280,777,716

1,856,873

23,570,207

a

Franklin

International

Growth

Fund,

Class

R6

................

31,172,245

1,116,859

(8,444,255)

2,677,761

(2,536,757)

23,985,853

1,117,180

512,318

a

Franklin

Liberty

High

Yield

Corporate

ETF

............

5,437,401

23,037,919

(12,802,414)

13,449

(120,917)

15,565,438

593,874

893,811

a

Franklin

Liberty

International

Aggregate

Bond

ETF

........

18,704,049

1,405,236

(4,614,634)

(61,349)

(640,485)

14,792,817

604,035

333,998

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

13,319,310

1,542,355

(7,442,906)

(271,880)

(262,085)

6,884,794

267,016

311,644

a

Franklin

Liberty

Senior

Loan

ETF

—

14,190,494

(5,483,077)

(26,726)

(19,925)

8,660,766

346,708

317,077

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

13,416,969

—

(13,367,156)

(38,460)

(11,353)

—

—

23,481

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

5,628,429

1,614,061

(28,682)

(6,499)

673,541

7,880,850

364,338

93,722

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

79,864,061

28,293,657

(27,318,298)

76,267

(3,215,875)

77,699,812

3,092,616

1,646,019

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

17,377,414

11,794,613

(14,571,535)

(793,125)

32,117

13,839,484

579,087

333,229

Franklin

LibertyQ

U.S.

Equity

ETF

179,207,916

26,214,245

(178,827,623)

38,544,113

(14,746,900)

50,391,751

1,071,481

1,828,275

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

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

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

so

that

the

operating expenses

(excluding

interest

expense,

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

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

0.03%

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,

2021,

there

were

no

credits

earned.

    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)

Non-Controlled

Affiliates

(continued)

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

$

14,927,981

$

32,646

$

(14,976,050)

$

166,008

$

(150,585)

$

—

—

$

47,256

Franklin

Rising

Dividends

Fund,

Class

R6

................

123,829,549

—

(128,460,585)

75,672,210

(71,041,174)

—

—

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

156,766,096

(156,766,003)

—

—

93

93

936

Templeton

Developing

Markets

Trust,

Class

R6

............

33,686,403

7,944,703

(955,824)

102,434

(4,493,477)

36,284,239

1,632,954

2,465,7

3

1

a

Templeton

Foreign

Fund,

Class

R6

42,607,247

18,807,394

(11,377,464)

(910,508)

(87,946)

49,038,723

6,955,847

2,178,474

Templeton

Global

Total

Return

Fund,

Class

R6

............

13,148,651

217,399

(12,807,597)

(1,511,992)

953,539

—

—

217,399

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

—

29,596,896

(2,874,587)

(53,352)

(482,302)

26,186,655

2,196,867

475,453

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

10,589,689

—

—

(157,635)

10,432,054

2,688,674

107,029

Total

Non-Controlled

Affiliates

$893,823,742

$553,326,288

$(729,459,793)

$125,621,518

$(61,661,335)

$781,650,420

$42,628,803

Total

Affiliated

Securities

....

$1,257,730,336

$729,499,312

$(738,534,933)

$126,902,862

$(7,233,361)

$1,368,364,216

$86,374,278

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.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

60

franklintempleton.com

Annual

Report

5.

Income

Taxes

For

tax

purposes,

the

Growth

Allocation

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

Growth

Allocation

Fund

deferred

post-October

capital

losses

of

$188,386.

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

At

December

31,

2021,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

return

of

capital

distributions

and

short

term

capital

gains

distributions

from

Underlying

Funds.

The

Funds

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

realized

capital

gains.

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

2021

2020

2021

2020

Distributions

paid

from:

Ordinary

income

........................

$49,415,482

$18,317,790

$88,335,859

$31,777,661

Long

term

capital

gain

....................

57,859,913

13,977,490

163,506,292

52,185,473

$107,275,395

$32,295,280

$251,842,151

$83,963,134

Franklin

Growth

Allocation

Fund

2021

2020

Distributions

paid

from:

Ordinary

income

........................

$67,487,162

$19,285,290

Long

term

capital

gain

....................

126,983,118

48,651,683

$194,470,280

$67,936,973

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

a

a

a

a

Cost

of

investments

.......................

$1,175,538,665

$1,764,460,387

$1,152,063,570

Unrealized

appreciation

.....................

$175,555,791

$396,340,396

$369,251,743

Unrealized

depreciation

.....................

(9,968,772)

(13,591,908)

(4,109,231)

Net

unrealized

appreciation

(depreciation)

.......

$165,587,019

$382,748,488

$365,142,512

Distributable

earnings:

Undistributed

ordinary

income

................

$396,039

$376,651

$—

Undistributed

long

term

capital

gains

...........

20,277,980

48,704,488

43,646,844

Total

distributable

earnings

..................

$20,674,019

$49,081,139

$43,646,844

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

61

franklintempleton.com

Annual

Report

6.

Investment

Transactions

Purchases

and

sales

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

year

ended

December

31,

2021,

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

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

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,

2021,

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)

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Purchases

..............................

$834,121,841

$1,167,526,394

$866,502,491

Sales

..................................

$809,982,150

$1,159,328,179

$862,448,052

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

62

franklintempleton.com

Annual

Report

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,

2021,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

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.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

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

Level

1

Level

2

Level

3

Total

Franklin

Conservative

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

1,334,629,030

$

—

$

—

$

1,334,629,030

Short

Term

Investments

...................

85

6,496,569

—

6,496,654

Total

Investments

in

Securities

...........

$1,334,629,115

$6,496,569

$—

$1,341,125,684

Franklin

Moderate

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

2,137,024,090

—

—

2,137,024,090

Short

Term

Investments

...................

132

10,184,653

—

10,184,785

Total

Investments

in

Securities

...........

$2,137,024,222

$10,184,653

$—

$2,147,208,875

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,507,818,658

—

—

1,507,818,658

Short

Term

Investments

...................

93

9,387,331

—

9,387,424

Total

Investments

in

Securities

...........

$1,507,818,751

$9,387,331

$—

$1,517,206,082

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

Selected

Portfolio

ETF

Exchange-Traded

Fund

9.

Fair

Value

Measurements

(continued)

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,

2021,

the

related

statements

of

operations

for

the

year

ended

December

31,

2021,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2021

(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,

2021,

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,

2021

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2021

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,

2021

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

17,

2022

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

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amount

s

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2021:

Under

Section

853

of

the

Internal

Revenue

Code,

the

Funds

below

intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2021:

Pursuant

to:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$66,532,643

$179,933,119

$139,170,914

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$4,820,075

$10,683,558

$8,870,072

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$8,177,424

$18,814,429

$17,168,861

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$20,064,479

$37,753,199

$33,451,640

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Foreign

Taxes

Paid

$243,910

$591,549

$567,610

Foreign

Source

Income

Earned

$1,015,814

$2,473,235

$2,388,209

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

65

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

120

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

101

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

121

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

66

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

121

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

121

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(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

121

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

67

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

May

2021

101

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(January

2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-January

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

132

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

121

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

68

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

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,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

-

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

July

2021

Not

Applicable

Not

Applicable

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

69

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

70

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

02/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Corefolio

Allocation

Fund

A

Series

of

Franklin

Fund

Allocator

Series

December

31,

2021

Sign

up

for

electronic

delivery

at

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Guarantee

franklintempleton.com

Annual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2021,

the

U.S.

economy

continued

to

recover

from

the

COVID-19

pandemic,

benefiting

equities.

Growth

accelerated

in

2021’s

first

half

as

the

reopening

of

businesses,

widespread

COVID-19

vaccinations

and

federal

assistance

programs

continued

to

boost

consumer

spending.

Inflation

increased

during

the

reporting

period

due

to

increased

demand

for

goods

amid

supply-chain

bottlenecks.

During

the

period’s

second

half,

investors

became

concerned

that

new,

swiftly

spreading

COVID-19

variants

could

hinder

the

economic

recovery,

and

growth

slowed

in

2021’s

third

quarter.

During

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

held

the

federal

funds

rate

unchanged

at

0.25%,

and

it

continued

broad

quantitative

easing

measures

to

bolster

credit

markets.

However,

the

Federal

Reserve

began

decreasing

its

asset

purchases

in

November

and

accelerated

its

tapering

in

December,

while

reiterating

its

intention

to

delay

interest

rate

increases

until

reaching

its

goal

of

maximum

U.S.

employment.

Rebounding

global

economies,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

pandemic

restrictions

and

expanding

vaccination

programs

benefited

global

equities,

but

some

business

restrictions

by

China,

the

spread

of

COVID-19

variants

and

higher

inflation

amid

supply-chain

disruptions

hindered

global

stocks

near

period-end.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+26.89%

(the

index

increasing

from

3,756.07

to

4,766.18).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+20.14%

(the

index

increasing

from

2,690.044

to

3,231.727).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.54%

total

return

(an

index

decrease

from

2,392.02

to

2,355.14),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Corefolio

Allocation

Fund’s

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Corefolio

Allocation

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2021,

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

©

2022,

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

+28.71%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

9,986.70)

and

MSCI

World

Index

+22.35%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

14,223.137).

4.Sources:

Morningstar

and

Bloomberg

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

Franklin

Corefolio

Allocation

Fund

3

Performance

Summary

5

Your

Fund’s

Expenses

8

Financial

Highlights

and

Statement

of

Investments

9

Financial

Statements

15

Notes

to

Financial

Statements

18

Report

of

Independent

Registered

Public

Accounting

Firm

25

Tax

Information

26

Board

Members

and

Officers

27

Shareholder

Information

32

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

Corefolio

Allocation

Fund

This

annual

report

for

Franklin

Corefolio

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2021

.

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

+15.76%

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

+28.71%

cumulative

total

return,

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+22.35%

cumulative

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

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+18.54%

total

return

for

the

12

months

ended

December

31,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

easing

COVID-19

pandemic

restrictions

in

certain

regions

and

the

development

of

treatments

and

vaccines.

However,

the

Chinese

government’s

imposition

of

additional

restrictions

on

some

businesses

pressured

Asian

and

global

emerging

market

stocks.

Additionally,

the

spread

of

the

Delta

and

Omicron

variants

and

higher

inflation

in

an

environment

of

persistent

supply-chain

disruptions

hindered

global

equities

at

certain

points

during

the

12-month

period.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

monetary

and

fiscal

stimulus

measures

and

the

continued

progress

of

vaccination

programs.

Gross

domestic

product

(GDP)

growth

was

generally

robust,

as

the

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

supported

the

economy.

A

rebound

in

corporate

earnings

and

the

passage

of

a

bipartisan

infrastructure

bill

further

bolstered

investor

sentiment.

In

an

effort

to

support

the

economy,

the

U.S.

Federal

Reserve

(Fed)

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%.

While

the

Fed

also

maintained

quantitative

easing

measures

with

U.S.

Treasury

and

mortgage

bond

purchasing,

it

began

to

reduce

the

rate

of

purchases

beginning

in

November

2021

and

accelerated

the

pace

of

tapering

in

December.

The

Fed

also

noted

that

it

expected

easing

supply

constraints

to

help

reduce

inflationary

pressures

and

that

further

employment

progress

was

needed

before

the

Fed

would

consider

raising

the

range

for

the

federal

funds

target

rate.

The

economic

recovery

in

the

eurozone

was

slow,

as

quarter-over-quarter

GDP

growth

contracted

in

2021’s

first

quarter

before

returning

to

growth

in

2021’s

second

and

third

quarters.

GDP

growth

rates

were

initially

sluggish

among

the

region’s

largest

economies,

although

most

showed

signs

of

improvement

later

in

the

12-month

period.

Business

activity

growth

also

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+16.30%

total

return

for

the

12

months

under

review.

1

However,

in

November

2021,

the

annual

inflation

rate

in

the

eurozone

reached

the

highest

level

since

the

introduction

of

the

euro,

and

the

prospect

of

energy

shortages

during

the

winter

months

tempered

investor

optimism.

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Domestic

Equity

76.8%

Foreign

Equity

23.1%

Short-Term

Investments

&

Other

Net

Assets

0.1%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

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

14

.

Franklin

Corefolio

Allocation

Fund

4

franklintempleton.com

Annual

Report

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-2.49%

total

return

for

the

12-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

quarter-over-quarter

GDP

contracted

in

2021’s

third

quarter.

China’s

economic

recovery

continued,

although

the

country’s

quarter-over-quarter

GDP

growth

in

2021’s

first

three

quarters

was

slower

than

in

2020’s

second

half,

pressured

by

higher

commodity

prices.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-related

businesses,

and

concerns

about

a

large

Chinese

property

developer’s

solvency

pressured

Asian

stocks

during

2021’s

fourth

quarter.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-2.54%

total

return

for

the

12

months

under

review.

1

Higher

inflation

led

many

central

banks

in

emerging

market

countries

to

raise

interest

rates,

which

dampened

economic

growth.

The

Omicron

variant

of

COVID-19

also

negatively

impacted

global

emerging

markets,

as

some

countries

reimplemented

restrictions

in

an

effort

to

counter

rising

infections.

Investment

Strategy

The

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,

Franklin

Growth

Opportunities

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

Corefolio

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2021

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

12/31/21

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

+15.76%

+9.37%

5-Year

+92.10%

+12.67%

10-Year

+227.19%

+11.95%

Advisor

1-Year

+16.05%

+16.05%

5-Year

+94.64%

+14.25%

10-Year

+235.93%

+12.88%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Corefolio

Allocation

Fund

Performance

Summary

6

franklintempleton.com

Annual

Report

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

See

page

7

for

Performance

Summary

footnotes.

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

strategies

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

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

height-

ened

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.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

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

the

equity

market

performance

of

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2199

$0.0507

$0.6628

$0.9334

C

$0.1088

$0.0507

$0.6628

$0.8223

R

$0.1901

$0.0507

$0.6628

$0.9036

R6

$0.2650

$0.0507

$0.6628

$0.9785

Advisor

$0.2528

$0.0507

$0.6628

$0.9663

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,032.10

$2.21

$1,023.03

$2.20

0.43%

C

$1,000

$1,028.40

$6.06

$1,019.23

$6.03

1.19%

R

$1,000

$1,030.80

$3.49

$1,021.77

$3.48

0.68%

R6

$1,000

$1,034.20

$0.45

$1,024.76

$0.45

0.09%

Advisor

$1,000

$1,033.70

$0.93

$1,024.29

$0.93

0.18%

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

9

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$21.92

$20.04

$17.32

$19.68

$17.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.22

0.12

0.20

0.17

0.17

Net

realized

and

unrealized

gains

(losses)

...........

3.21

3.32

4.17

(1.51)

3.23

Total

from

investment

operations

....................

3.43

3.44

4.37

(1.34)

3.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.22)

(0.18)

(0.20)

(0.15)

(0.18)

Net

realized

gains

.............................

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...............................

(0.93)

(1.56)

(1.65)

(1.02)

(0.78)

Net

asset

value,

end

of

year

.......................

$24.42

$21.92

$20.04

$17.32

$19.68

Total

return

d

...................................

15.76%

18.28%

25.79%

(7.10)%

20.07%

Ratios

to

average

net

assets

Expenses

e

,f

....................................

0.42%

0.43%

0.44%

0.41%

0.47%

Net

investment

income

c

...........................

0.91%

0.64%

1.02%

0.76%

0.90%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$931,489

$812,250

$717,806

$593,983

$579,707

Portfolio

turnover

rate

............................

3.58%

9.29%

2.12%

3.94%

0.71%

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

0.63%

for

the

year

ended

December

31,

2021.

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.

10

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$21.57

$19.76

$17.10

$19.43

$16.85

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

....................

(0.01)

(0.03)

0.04

(0.10)

0.02

Net

realized

and

unrealized

gains

(losses)

...........

3.20

3.25

4.12

(1.35)

3.19

Total

from

investment

operations

....................

3.19

3.22

4.16

(1.45)

3.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.11)

(0.03)

(0.05)

(0.01)

(0.03)

Net

realized

gains

.............................

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...............................

(0.82)

(1.41)

(1.50)

(0.88)

(0.63)

Net

asset

value,

end

of

year

.......................

$23.94

$21.57

$19.76

$17.10

$19.43

Total

return

d

...................................

14.88%

17.41%

24.83%

(7.76)%

19.20%

Ratios

to

average

net

assets

Expenses

e

,f

....................................

1.17%

1.18%

1.19%

1.16%

1.22%

Net

investment

income

(loss)

c

......................

(0.05)%

(0.18)%

0.27%

0.01%

0.15%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$61,517

$73,513

$75,745

$72,124

$170,218

Portfolio

turnover

rate

............................

3.58%

9.29%

2.12%

3.94%

0.71%

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

0.63%

for

the

year

ended

December

31,

2021.

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

11

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$21.95

$20.07

$17.34

$19.68

$17.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.16

0.07

0.14

0.10

0.12

Net

realized

and

unrealized

gains

(losses)

...........

3.21

3.32

4.19

(1.48)

3.23

Total

from

investment

operations

....................

3.37

3.39

4.33

(1.38)

3.35

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.19)

(0.13)

(0.15)

(0.09)

(0.13)

Net

realized

gains

.............................

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...............................

(0.90)

(1.51)

(1.60)

(0.96)

(0.73)

Net

asset

value,

end

of

year

.......................

$24.42

$21.95

$20.07

$17.34

$19.68

Total

return

....................................

15.46%

18.00%

25.51%

(7.30)%

19.79%

Ratios

to

average

net

assets

Expenses

d

,e

....................................

0.66%

0.67%

0.67%

0.65%

0.72%

Net

investment

income

c

...........................

0.68%

0.38%

0.79%

0.52%

0.65%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,764

$1,498

$1,387

$1,412

$1,629

Portfolio

turnover

rate

............................

3.58%

9.29%

2.12%

3.94%

0.71%

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

0.63%

for

the

year

ended

December

31,

2021.

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.

12

a

Year

Ended

December

31,

Year

Ended

December

31,

2017

a

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$21.97

$20.07

$17.34

$19.67

$19.18

Income

from

investment

operations

b

:

Net

investment

income

c,d

........................

0.30

0.21

0.70

0.27

0.26

Net

realized

and

unrealized

gains

(losses)

...........

3.23

3.31

3.75

(1.52)

0.73

Total

from

investment

operations

....................

3.53

3.52

4.45

(1.25)

0.99

Less

distributions

from:

Net

investment

income

..........................

(0.27)

(0.24)

(0.27)

(0.21)

(0.25)

Net

realized

gains

.............................

(0.71)

(1.38)

(1.45)

(0.87)

(0.25)

Total

distributions

...............................

(0.98)

(1.62)

(1.72)

(1.08)

(0.50)

Net

asset

value,

end

of

year

.......................

$24.52

$21.97

$20.07

$17.34

$19.67

Total

return

e

...................................

16.16%

18.69%

26.24%

(6.78)%

5.28%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.....

0.13%

0.13%

0.12%

0.23%

3.47%

Expenses

net

of

waiver

and

payments

by

affiliates

g

......

0.09%

0.09%

0.09%

0.09%

0.08%

Net

investment

income

d

...........................

1.26%

1.05%

1.37%

1.08%

1.29%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$5,349

$4,393

$3,385

$75

$5

Portfolio

turnover

rate

............................

3.58%

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

0.63%

for

the

year

ended

December

31,

2021.

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

13

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$21.98

$20.08

$17.35

$19.71

$17.08

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.28

0.17

0.27

0.24

0.25

Net

realized

and

unrealized

gains

(losses)

...........

3.22

3.34

4.16

(1.53)

3.21

Total

from

investment

operations

....................

3.50

3.51

4.43

(1.29)

3.46

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.25)

(0.23)

(0.25)

(0.20)

(0.23)

Net

realized

gains

.............................

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...............................

(0.96)

(1.61)

(1.70)

(1.07)

(0.83)

Net

asset

value,

end

of

year

.......................

$24.52

$21.98

$20.08

$17.35

$19.71

Total

return

....................................

16.05%

18.59%

26.10%

(6.85)%

20.40%

Ratios

to

average

net

assets

Expenses

d

,e

....................................

0.17%

0.18%

0.19%

0.16%

0.22%

Net

investment

income

c

...........................

1.16%

0.90%

1.27%

1.01%

1.15%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$69,322

$61,166

$52,512

$40,399

$33,607

Portfolio

turnover

rate

............................

3.58%

9.29%

2.12%

3.94%

0.71%

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

0.63%

for

the

year

ended

December

31,

2021.

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

99.9%

Domestic

Equity

76.8%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,864,590

$

281,944,606

a,b

Franklin

Growth

Opportunities

Fund,

Class

R6

.............................

4,160,491

273,136,240

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

9,858,771

266,876,929

821,957,775

Foreign

Equity

23.1%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

10,119,512

246,916,091

Total

Investments

In

Underlying

Funds

(Cost

$656,334,856)

......................

1,068,873,866

a

a

a

a

Short

Term

Investments

0.0%

†

a

Money

Market

Funds

0.0%

†

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

1

1

Total

Money

Market

Funds

(Cost

$1)

...........................................

1

Total

Short

Term

Investments

(Cost

$1

)

........................................

1

a

Total

Investments

(Cost

$656,334,857)

99.9%

...................................

$1,068,873,867

Other

Assets,

less

Liabilities

0.1

%

.............................................

567,523

Net

Assets

100.0%

...........................................................

$1,069,441,390

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(e)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

Franklin

Corefolio

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Non-controlled

affiliates

(Not

e

3e)

........................................................

$656,334,857

Value

-

Non-controlled

affiliates

(Not

e

3e)

.......................................................

$

1,068,873,867

Receivables:

Investment

securities

sold

...................................................................

1,359,176

Capital

shares

sold

........................................................................

370,320

Affiliates

................................................................................

35

Total

assets

..........................................................................

1,070,603,398

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

360,993

Administrative

fees

........................................................................

26,854

Distribution

fees

..........................................................................

247,321

Transfer

agent

fees

........................................................................

183,749

Reports

to

shareholders

fees

................................................................

61,857

Funds

advanced

by

custodian

.................................................................

275,283

Accrued

expenses

and

other

liabilities

...........................................................

5,951

Total

liabilities

.........................................................................

1,162,008

Net

assets,

at

value

.................................................................

$1,069,441,390

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$601,203,030

Total

distributable

earnings

(losses)

.............................................................

468,238,360

Net

assets,

at

value

.................................................................

$1,069,441,390

Franklin

Corefolio

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$931,488,568

Shares

outstanding

........................................................................

38,141,507

Net

asset

value

per

share

a

..................................................................

$24.42

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$25.84

Class

C:

Net

assets,

at

value

.......................................................................

$61,516,768

Shares

outstanding

........................................................................

2,569,639

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$23.94

Class

R:

Net

assets,

at

value

.......................................................................

$1,764,490

Shares

outstanding

........................................................................

72,249

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$24.42

Class

R6:

Net

assets,

at

value

.......................................................................

$5,349,312

Shares

outstanding

........................................................................

218,204

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$24.52

Advisor

Class:

Net

assets,

at

value

.......................................................................

$69,322,252

Shares

outstanding

........................................................................

2,827,401

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$24.52

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

Franklin

Corefolio

Allocation

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Not

e

3e)

.............................................................

$13,524,558

Expenses:

Administrative

fees

(Note

3

a

)

..................................................................

309,195

Interest

expense

...........................................................................

50

Distribution

fees:

(Note

3b

)

    Class

A

................................................................................

2,218,061

    Class

C

................................................................................

708,614

    Class

R

................................................................................

8,044

Transfer

agent

fees:

(Note

3d

)

    Class

A

................................................................................

980,068

    Class

C

................................................................................

78,482

    Class

R

................................................................................

1,787

    Class

R6

...............................................................................

3,452

    Advisor

Class

............................................................................

72,858

Reports

to

shareholders

fees

..................................................................

94,237

Registration

and

filing

fees

....................................................................

99,324

Professional

fees

...........................................................................

48,195

Trustees'

fees

and

expenses

..................................................................

9,762

Other

....................................................................................

21,533

Total

expenses

.........................................................................

4,653,662

Expenses

waived/paid

by

affiliates

(Note

3

e

and

3

f

)

..............................................

(2,136)

Net

expenses

.........................................................................

4,651,526

Net

investment

income

................................................................

8,873,032

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Non-controlled

affiliates

(Not

e

3e)

...........................................................

2,371,032

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Not

e

3e)

...........................................................

62,362,752

Net

realized

gain

(loss)

..................................................................

64,733,784

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Non-controlled

affiliates

(Not

e

3e)

...........................................................

74,393,496

Net

realized

and

unrealized

gain

(loss)

............................................................

139,127,280

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$148,000,312

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

17

Franklin

Corefolio

Allocation

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$8,873,032

$4,838,645

Net

realized

gain

(loss)

.................................................

64,733,784

55,657,000

Net

change

in

unrealized

appreciation

(depreciation)

...........................

74,393,496

83,876,068

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

148,000,312

144,371,713

Distributions

to

shareholders:

Class

A

.............................................................

(34,555,673)

(55,174,587)

Class

C

.............................................................

(2,539,442)

(4,778,679)

Class

R

.............................................................

(60,862)

(100,418)

Class

R6

............................................................

(205,264)

(305,025)

Advisor

Class

........................................................

(2,654,270)

(4,203,401)

Total

distributions

to

shareholders

..........................................

(40,015,511)

(64,562,110)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

26,878,506

25,347,265

Class

C

.............................................................

(19,916,298)

(7,617,338)

Class

R

.............................................................

104,207

(25,515)

Class

R6

............................................................

436,233

614,285

Advisor

Class

........................................................

1,134,411

3,855,066

Total

capital

share

transactions

............................................

8,637,059

22,173,763

Net

increase

(decrease)

in

net

assets

...................................

116,621,860

101,983,366

Net

assets:

Beginning

of

year

.......................................................

952,819,530

850,836,164

End

of

year

...........................................................

$1,069,441,390

$952,819,530

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

Franklin

Corefolio

Allocation

Fund

18

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

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Corefolio

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

invests

in

affiliated

mutual

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Effective

August

2,

2021,

Class

C

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Fund

’

s

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Fund’s

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

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,

2021,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

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

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

19

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Fund

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Fund

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

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.

2.

Shares

of

Beneficial

Interest

At

December

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

4,582,765

$108,949,626

4,288,799

$83,034,614

Shares

issued

in

reinvestment

of

distributions

..........

1,406,638

33,873,395

2,771,931

54,092,044

Shares

redeemed

...............................

(4,902,459)

(115,944,515)

(5,827,065)

(111,779,393)

Net

increase

(decrease)

..........................

1,086,944

$26,878,506

1,233,665

$25,347,265

Class

C

Shares:

Shares

sold

...................................

524,039

$12,070,571

622,774

$11,752,863

Shares

issued

in

reinvestment

of

distributions

..........

107,106

2,519,810

248,589

4,702,959

Shares

redeemed

a

..............................

(1,469,878)

(34,506,679)

(1,296,579)

(24,073,160)

Net

increase

(decrease)

..........................

(838,733)

$(19,916,298)

(425,216)

$(7,617,338)

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

20

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Administrative

Fees

The

Fund

pays

an

administrative

fee

to

FT

Services

of

0.03%

per

year

of

the

average

daily

net

assets

of

the

Fund

for

administrative

services

including

monitoring

and

rebalancing

the

percentage

of

the

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

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

R

Shares:

Shares

sold

...................................

13,272

$312,763

6,017

$113,110

Shares

issued

in

reinvestment

of

distributions

..........

2,528

60,861

5,167

100,418

Shares

redeemed

...............................

(11,787)

(269,417)

(12,069)

(239,043)

Net

increase

(decrease)

..........................

4,013

$104,207

(885)

$(25,515)

Class

R6

Shares:

Shares

sold

...................................

18,249

$435,971

44,395

$864,832

Shares

issued

in

reinvestment

of

distributions

..........

8,245

199,489

15,272

300,242

Shares

redeemed

...............................

(8,265)

(199,227)

(28,364)

(550,789)

Net

increase

(decrease)

..........................

18,229

$436,233

31,303

$614,285

Advisor

Class

Shares:

Shares

sold

...................................

478,215

$11,337,921

652,582

$12,962,590

Shares

issued

in

reinvestment

of

distributions

..........

98,555

2,384,542

187,893

3,699,087

Shares

redeemed

...............................

(532,535)

(12,588,052)

(672,367)

(12,806,611)

Net

increase

(decrease)

..........................

44,235

$1,134,411

168,108

$3,855,066

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

Distributors,

LLC

(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

21

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31. 

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

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

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,

2021,

the

Fund

paid

transfer

agent

fees

of

$1,136,647,

of

which $652,310

was

retained

by

Investor

Services.

e.

Investments

in

Underlying

Funds

The Fund

invests in Underlying

Funds

which

are

managed

by

Advisers,

an

affiliate

of

FT

Services

or

by

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

Fund

does

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statement

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,

2021,

were

as

follows:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$148,617

CDSC

retained

..............................................................................

$4,844

3.

Transactions

with

Affiliates

(continued)

b.

Distribution

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

22

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

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,

2022.

4.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

At

December

31,

2021,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

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

Corefolio

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Growth

Fund,

Class

R6

.

$

240,674,595

$

23,843,548

$

(11,146,341)

$

1,231,106

$

27,341,698

$

281,944,606

1,864,590

$

23,843,546

a

Franklin

Growth

Opportunities

Fund,

Class

R6

............

240,066,441

19,590,530

(9,588,958)

1,336,579

21,731,648

273,136,240

4,160,491

19,590,530

a

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

234,889,839

27,628,146

(12,757,930)

(100,475)

17,217,349

266,876,929

9,858,771

27,628,145

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

21,166,905

(21,166,904)

—

—

1

1

27

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

237,214,959

4,825,062

(3,130,553)

(96,178)

8,102,801

246,916,091

10,119,512

4,825,062

Total

Non-Controlled

Affiliates

$952,845,834

$97,054,191

$(57,790,686)

$2,371,032

$74,393,496

$1,068,873,867

$75,887,310

Total

Affiliated

Securities

....

$952,845,834

$97,054,191

$(57,790,686)

$2,371,032

$74,393,496

$1,068,873,867

$75,887,310

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.

2021

2020

Distributions

paid

from:

Ordinary

income

..........................................................

$11,557,343

$7,202,185

Long

term

capital

gain

......................................................

28,458,168

57,359,925

$40,015,511

$64,562,110

Cost

of

investments

..........................................................................

$662,376,013

Unrealized

appreciation

........................................................................

$412,539,010

Unrealized

depreciation

........................................................................

(6,041,156)

Net

unrealized

appreciation

(depreciation)

..........................................................

$406,497,854

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

23

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

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

Fund

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

net

investment

income.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2021,

aggregated

$75,887,286

and

$36,623,780,

respectively.

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

7.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

year

ended

December

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

8.

Fair

Value

Measurements

The Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund’s

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Fund’s financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$518,646

Undistributed

long

term

capital

gains

..............................................................

$61,221,863

Total

distributable

earnings

.....................................................................

$61,740,509

4.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

24

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

December

31,

2021,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

9.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

10.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

8.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

25

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Corefolio

Allocation

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Franklin

Corefolio

Allocation

Fund

(one

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

ended

December

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2021

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2022

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)

26

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2021:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$28,458,168

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$6,091,402

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$10,957,951

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$2,200,150

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

27

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

120

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

101

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

121

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

28

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

121

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

121

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(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

121

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

29

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

May

2021

101

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(January

2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-January

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

132

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

121

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

30

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

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,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

-

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

July

2021

Not

Applicable

Not

Applicable

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

31

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

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

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Length

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Number

of

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in

Fund

Complex

Overseen

by

Board

Member*

Other

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Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

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and

Co-Secretary

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President

since

2011

and

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since

2019

Not

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Street

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FL

33301-

1923

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Occupation

During

at

Least

the

Past

5

Years:

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Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

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Franklin

Templeton/Legg

Mason

fund

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Interested

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ANNUAL

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AND

SHAREHOLDER

LETTER

Franklin

Global

Allocation

Fund

Formerly,

Franklin

Founding

Funds

Allocation

Fund

A

Series

of

Franklin

Fund

Allocator

Series

December

31,

2021

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franklintempleton.com

Annual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2021,

the

U.S.

economy

continued

to

recover

from

the

COVID-19

pandemic,

benefiting

equities.

Growth

accelerated

in

2021’s

first

half

as

the

reopening

of

businesses,

widespread

COVID-19

vaccinations

and

federal

assistance

programs

continued

to

boost

consumer

spending.

Inflation

increased

during

the

reporting

period

due

to

increased

demand

for

goods

amid

supply-chain

bottlenecks.

During

the

period’s

second

half,

investors

became

concerned

that

new,

swiftly

spreading

COVID-19

variants

could

hinder

the

economic

recovery,

and

growth

slowed

in

2021’s

third

quarter.

During

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

held

the

federal

funds

rate

unchanged

at

0.25%,

and

it

continued

broad

quantitative

easing

measures

to

bolster

credit

markets.

However,

the

Federal

Reserve

began

decreasing

its

asset

purchases

in

November

and

accelerated

its

tapering

in

December,

while

reiterating

its

intention

to

delay

interest

rate

increases

until

reaching

its

goal

of

maximum

U.S.

employment.

Rebounding

global

economies,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

pandemic

restrictions

and

expanding

vaccination

programs

benefited

global

equities,

but

some

business

restrictions

by

China,

the

spread

of

COVID-19

variants

and

higher

inflation

amid

supply-chain

disruptions

hindered

global

stocks

near

period-end.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+26.89%

(the

index

increasing

from

3,756.07

to

4,766.18).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+20.14%

(the

index

increasing

from

2,690.044

to

3,231.727).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.54%

total

return

(an

index

decrease

from

2,392.02

to

2,355.14),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Global

Allocation

Fund’s

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Global

Allocation

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2021,

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

©

2022,

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

+28.71%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

9,986.70)

and

MSCI

World

Index

+22.35%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

14,223.137).

4.

Sources:

Morningstar

and

Bloomberg

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

Franklin

Global

Allocation

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

9

Financial

Highlights

and

Statement

of

Investments

10

Financial

Statements

25

Notes

to

Financial

Statements

28

Report

of

Independent

Registered

Public

Accounting

Firm

40

Tax

Information

41

Board

Members

and

Officers

42

Shareholder

Information

47

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

Global

Allocation

Fund

Formerly,

Franklin

Founding

Funds

Allocation

Fund

This

annual

report

for

Franklin

Global

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

that

is

consistent

with

an

acceptable

level

of

risk.

Under

normal

market

conditions,

the

Fund

invests

in

a

diversified

portfolio

of

debt

and

equity

securities

and,

to

a

lesser

extent,

alternative

strategies.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

**Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

SOI,

which

can

be

found

later

in

this

report.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.74%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

new

primary

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+18.54%

cumulative

total

return.

1

The

Fund’s

old

primary

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+28.71%

cumulative

total

return.

1

The

investment

manager

believes

the

composition

of

the

MSCI

ACWI-NR

more

accurately

reflects

the

Fund’s

holdings.

The

Fund’s

new

Custom

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Barclays

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents

(Blended

Benchmark)

posted

a

+9.31%

cumulative

total

return.

2

The

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+22.35%

cumulative

total

return.

2

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

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

ACWI-NR,

posted

a

+18.54%

total

return

for

the

12

months

ended

December

31,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

easing

COVID-19

pandemic

restrictions

in

certain

regions

and

the

development

of

treatments

and

vaccines.

However,

the

Chinese

government’s

imposition

of

additional

restrictions

on

some

businesses

pressured

Asian

and

global

emerging

market

stocks.

Additionally,

the

spread

of

the

Delta

and

Omicron

variants

and

higher

inflation

in

an

environment

of

persistent

supply-chain

disruptions

hindered

global

equities

at

certain

points

during

the

12-month

period.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

monetary

and

fiscal

stimulus

measures

and

the

continued

progress

of

vaccination

programs.

Gross

domestic

product

(GDP)

growth

was

generally

robust,

as

the

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

supported

the

economy.

A

rebound

in

corporate

earnings

and

the

passage

of

a

bipartisan

infrastructure

bill

further

bolstered

investor

sentiment.

In

an

effort

to

support

the

Portfolio

Composition*

12/31/21

%

of

Total

Net

Assets

Diversified

Financial

Services

14.8%

Capital

Markets

10.1%

Banks

7.1%

Software

5.0%

Semiconductors

&

Semiconductor

Equipment

4.9%

Pharmaceuticals

4.2%

Oil,

Gas

&

Consumable

Fuels

3.2%

Specialty

Retail

3.0%

Interactive

Media

&

Services

2.8%

Metals

&

Mining

2.4%

Electric

Utilities

2.0%

Insurance

1.9%

Health

Care

Providers

&

Services

1.8%

Technology

Hardware,

Storage

&

Peripherals

1.8%

Other**

30.6%

Short-Term

Investments

&

Other

Net

Assets

4.4%

1.

Morningstar.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

2.

Source:

FactSet.

The

Blended

Benchmark

was

calculated

internally.

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

15

.

Franklin

Global

Allocation

Fund

4

franklintempleton.com

Annual

Report

economy,

the

U.S.

Federal

Reserve

(Fed)

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%.

While

the

Fed

also

maintained

quantitative

easing

measures

with

U.S.

Treasury

and

mortgage

bond

purchasing,

it

began

to

reduce

the

rate

of

purchases

beginning

in

November

2021

and

accelerated

the

pace

of

tapering

in

December.

The

Fed

also

noted

that

it

expected

easing

supply

constraints

to

help

reduce

inflationary

pressures

and

that

further

employment

progress

was

needed

before

the

Fed

would

consider

raising

the

range

for

the

federal

funds

target

rate.

The

economic

recovery

in

the

eurozone

was

slow,

as

quarter-over-quarter

GDP

growth

contracted

in

2021’s

first

quarter

before

returning

to

growth

in

2021’s

second

and

third

quarters.

GDP

growth

rates

were

initially

sluggish

among

the

region’s

largest

economies,

although

most

showed

signs

of

improvement

later

in

the

12-month

period.

Business

activity

growth

also

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+16.30%

total

return

for

the

12

months

under

review.

1

However,

in

November

2021,

the

annual

inflation

rate

in

the

eurozone

reached

the

highest

level

since

the

introduction

of

the

euro,

and

the

prospect

of

energy

shortages

during

the

winter

months

tempered

investor

optimism.

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-2.49%

total

return

for

the

12-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

quarter-over-quarter

GDP

contracted

in

2021’s

third

quarter.

China’s

economic

recovery

continued,

although

the

country’s

quarter-over-quarter

GDP

growth

in

2021’s

first

three

quarters

was

slower

than

in

2020’s

second

half,

pressured

by

higher

commodity

prices.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-related

businesses,

and

concerns

about

a

large

Chinese

property

developer’s

solvency

pressured

Asian

stocks

during

2021’s

fourth

quarter.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-2.54%

total

return

for

the

12

months

under

review.

1

Higher

inflation

led

many

central

banks

in

emerging

market

countries

to

raise

interest

rates,

which

dampened

economic

growth.

The

Omicron

variant

of

COVID-19

also

negatively

impacted

global

emerging

markets,

as

some

countries

reimplemented

restrictions

in

an

effort

to

counter

rising

infections.

Investment

Strategy

The

equity

securities

in

which

the

Fund

invests

are

primarily

common

stock

of

companies

in

any

economic

sector

or

market

capitalization.

The

debt

securities

in

which

the

Fund

may

invest

include

all

varieties

of

fixed,

floating

and

variable

rate

instruments.

Bond

investments

may

include

U.S.

and

foreign

corporate

debt,

U.S.

Treasuries

and

foreign

government

bonds.

The

Fund

will

invest

no

more

than

15%

of

its

assets

in

alternative

strategies,

which

may

include

investments

that

provide

exposure

to

commodities

such

as

commodity

future

and

commodity

exchange

traded

funds

(ETFs).

Manager’s

Discussion

From

January

1,

2021,

through

January

31,

2021,

the

Fund

followed

its

original

investment

strategies.

For

this

period,

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.

For

the

first

month

of

the

period

under

review,

Franklin

Income

Fund

–

Class

R6

and

Franklin

Mutual

Shares

Fund

–

Class

R6

outperformed

the

S&P

500.

Templeton

Growth

Fund

–

Class

R6

underperformed

the

MSCI

World

Index.

Because

of

its

change

in

investment

strategy,

the

Fund

generally

held

different

investments

and

had

a

different

investment

profile

starting

on

February

1,

2021.

For

the

11-month

period

from

February

1,

2021,

through

December

31,

2021,

the

Fund

outperformed

the

Blended

Benchmark.

The

asset

allocation

of

the

Fund

has

been

tilted

towards

equities

throughout

2021.

While

remaining

overweighted

in

equities

relative

to

the

Blended

Benchmark,

that

overweighting

was

moderated

in

the

second

half

of

the

year.

For

the

11-month

period

under

review,

equities

and

foreign

exchange

positions

contributed

to

absolute

returns,

while

fixed

income

and

cash

detracted.

On

a

sector

basis,

10

out

of

11

equity

sectors

contributed

to

performance,

with

information

technology

(IT),

financials

and

health

care

contributing

the

most.

The

communication

services

sector

was

the

lone

detractor.

In

fixed

income,

treasuries,

government-related

and

select

holdings

in

emerging

market

debt

detracted

from

returns

while

holdings

in

the

energy

sector

contributed

marginally

to

returns.

The

top

equity

contributors

to

absolute

returns

during

the

period

included

Microsoft,

UnitedHealth

Group,

Alphabet,

Bank

of

America

and

NVIDIA.

The

largest

detractors

were

Franklin

Global

Allocation

Fund

5

franklintempleton.com

Annual

Report

Chinese

technology

giants

Tencent

Holdings

and

Alibaba

Group

Holding,

as

well

as

a

position

in

iShares

Core

MSCI

Emerging

Markets

ETF.

The

largest

fixed

income

absolute

detractors

included

Japanese

Government

Bonds

and

a

position

in

the

Templeton

Global

Bond

Fund.

Relative

to

the

Blended

Benchmark,

outperformance

was

driven

by

equities,

foreign

exchange

and

fixed

income,

while

cash

holdings

slightly

detracted.

Holdings

in

the

consumer

discretionary,

healthcare

and

IT

sectors

contributed

the

most

to

relative

returns

in

equities,

while

the

materials

and

communications

services

sectors

detracted.

Our

overall

underweighting

to

fixed

income

contributed

to

relative

performance.

Within

fixed

income,

an

overweighted

allocation

to

corporate

credit

holdings

and

underweighted

allocation

to

government

and

government-related

bonds

contributed

to

relative

performance.

Thank

you

for

your

continued

participation

in

Franklin

Global

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Edward

D.

Perks,

CFA

Todd

Brighton,

CFA

Eugene

Podkaminer,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2021,

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.

Performance

Summary

as

of

December

31,

2021

Franklin

Global

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

12/31/21

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

+11.74%

+5.56%

5-Year

+34.05%

+4.85%

10-Year

+112.13%

+7.20%

Advisor

1-Year

+12.01%

+12.01%

5-Year

+35.77%

+6.31%

10-Year

+117.48%

+8.08%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Global

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

(1/1/12–12/31/21)

Advisor

Class

(1/1/12–12/31/21)

Franklin

Global

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.

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

issu-

ers.

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

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.

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.

In

addition

to

risks

associated

with

more

traditional

investments

(e.g.,

market

risk,

credit

risk,

etc.),

the

Fund’s

investments

in

alternative

strategies

may

expose

the

Fund

to

potentially

significant

fluctuations

in

value.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

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

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

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:

Morningstar.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

The

Bloomberg

Global

Aggregate

Bond

Index

measures

the

performance

of

the

global

invest-

ment-grade,

fixed-rate

bond

markets.

The

benchmark

includes

government,

government-related

and

corporate

bonds,

as

well

as

asset-backed,

mortgage-backed

and

commercial

mortgage-backed

securities

from

both

developed

and

emerging

markets

issuers.

The

MSCI

World

Index

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

markets.

6.

Source:

Factset.

The

Blended

Benchmark

consists

of

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents.

7.

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

(1/1/21–12/31/21)

Share

Class

Net

Investment

Income

A

$0.1189

C

$0.0667

R

$0.1033

R6

$0.1404

Advisor

$0.1353

Total

Annual

Operating

Expenses

7

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.98%

1.02%

Advisor

0.73%

0.77%

Your

Fund’s

Expenses

Franklin

Global

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

184/365

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

7/1/21

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

Ending

Account

Value

12/31/21

Expenses

Paid

During

Period

7/1/21–12/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,045.50

$4.79

$1,020.52

$4.74

0.93%

C

$1,000

$1,040.80

$8.63

$1,016.74

$8.53

1.68%

R

$1,000

$1,043.90

$6.08

$1,019.26

$6.00

1.18%

R6

$1,000

$1,047.50

$3.05

$1,022.23

$3.01

0.59%

Advisor

$1,000

$1,046.50

$3.51

$1,021.78

$3.46

0.68%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.49

$14.43

$12.63

$14.54

$13.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.19

0.34

0.42

0.41

0.40

Net

realized

and

unrealized

gains

(losses)

...........

1.39

(0.27)

1.82

(1.82)

1.10

Total

from

investment

operations

....................

1.58

0.07

2.24

(1.41)

1.50

Less

distributions

from:

Net

investment

income

..........................

(0.12)

(0.47)

(0.44)

(0.50)

(0.43)

Net

realized

gains

.............................

—

(0.54)

—

—

—

Total

distributions

...............................

(0.12)

(1.01)

(0.44)

(0.50)

(0.43)

Net

asset

value,

end

of

year

.......................

$14.95

$13.49

$14.43

$12.63

$14.54

Total

return

d

...................................

11.74%

1.55%

17.81%

(9.82)%

11.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.94%

0.42%

0.40%

0.39%

0.43%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.88%

f

0.42%

g

0.40%

g

0.39%

g

0.43%

g

Net

investment

income

c

...........................

1.33%

2.73%

2.99%

2.66%

2.81%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$3,006,324

$2,952,287

$3,397,662

$3,209,751

$3,300,005

Portfolio

turnover

rate

............................

97.19%

h

4.07%

0.29%

0.73%

0.48%

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

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.09%

for

the

year

ended

December

31,

2021.

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%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.40

$14.33

$12.54

$14.33

$13.27

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.08

0.23

0.29

0.18

0.28

Net

realized

and

unrealized

gains

(losses)

...........

1.38

(0.26)

1.82

(1.67)

1.10

Total

from

investment

operations

....................

1.46

(0.03)

2.11

(1.49)

1.38

Less

distributions

from:

Net

investment

income

..........................

(0.07)

(0.36)

(0.32)

(0.30)

(0.32)

Net

realized

gains

.............................

—

(0.54)

—

—

—

Total

distributions

...............................

(0.07)

(0.90)

(0.32)

(0.30)

(0.32)

Net

asset

value,

end

of

year

.......................

$14.79

$13.40

$14.33

$12.54

$14.33

Total

return

d

...................................

10.89%

0.79%

16.91%

(10.54)%

10.43%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.68%

1.17%

1.15%

1.14%

1.18%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.62%

f

1.17%

g

1.15%

g

1.14%

g

1.18%

g

Net

investment

income

c

...........................

0.58%

1.85%

2.24%

1.91%

2.06%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$131,347

$201,506

$300,699

$362,833

$1,261,997

Portfolio

turnover

rate

............................

97.19%

h

4.07%

0.29%

0.73%

0.48%

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

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.09%

for

the

year

ended

December

31,

2021.

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%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.54

$14.48

$12.68

$14.58

$13.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.15

0.31

0.37

0.34

0.34

Net

realized

and

unrealized

gains

(losses)

...........

1.40

(0.28)

1.83

(1.78)

1.13

Total

from

investment

operations

....................

1.55

0.03

2.20

(1.44)

1.47

Less

distributions

from:

Net

investment

income

..........................

(0.10)

(0.43)

(0.40)

(0.46)

(0.38)

Net

realized

gains

.............................

—

(0.54)

—

—

—

Total

distributions

...............................

(0.10)

(0.97)

(0.40)

(0.46)

(0.38)

Net

asset

value,

end

of

year

.......................

$14.99

$13.54

$14.48

$12.68

$14.58

Total

return

....................................

11.50%

1.28%

17.44%

(10.01)%

10.97%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.19%

0.67%

0.65%

0.64%

0.68%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.13%

d

0.67%

e

0.65%

e

0.64%

e

0.68%

e

Net

investment

income

c

...........................

1.08%

2.47%

2.74%

2.41%

2.56%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$5,229

$4,975

$5,699

$5,513

$7,843

Portfolio

turnover

rate

............................

97.19%

g

4.07%

0.29%

0.73%

0.48%

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

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

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.09%

for

the

year

ended

December

31,

2021.

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

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.89

$14.81

$12.95

$14.62

$14.46

Income

from

investment

operations

b

:

Net

investment

income

c,d

........................

0.25

0.96

0.46

0.37

0.30

Net

realized

and

unrealized

gains

(losses)

...........

1.43

(0.83)

1.88

(1.75)

0.06

Total

from

investment

operations

....................

1.68

0.13

2.34

(1.38)

0.36

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(0.51)

(0.48)

(0.29)

(0.20)

Net

realized

gains

.............................

—

(0.54)

—

—

—

Total

distributions

...............................

(0.14)

(1.05)

(0.48)

(0.29)

(0.20)

Net

asset

value,

end

of

year

.......................

$15.43

$13.89

$14.81

$12.95

$14.62

Total

return

e

...................................

12.14%

1.94%

18.18%

(9.57)%

2.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.....

0.67%

0.21%

3.23%

0.08%

4.28%

Expenses

net

of

waiver

and

payments

by

affiliates

g

......

0.54%

h

0.07%

0.07%

0.07%

0.06%

Net

investment

income

d

...........................

1.69%

7.33%

3.32%

2.98%

3.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$573

$631

$5

$4

$5

Portfolio

turnover

rate

............................

97.19%

i

4.07%

0.29%

0.73%

0.48%

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

20

17.

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

exchange

traded

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

0.09%

for

the

year

ended

December

31,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$13.58

$14.52

$12.71

$14.63

$13.54

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.23

0.37

0.45

0.43

0.46

Net

realized

and

unrealized

gains

(losses)

...........

1.40

(0.27)

1.83

(1.81)

1.10

Total

from

investment

operations

....................

1.63

0.10

2.28

(1.38)

1.56

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(0.50)

(0.47)

(0.54)

(0.47)

Net

realized

gains

.............................

—

(0.54)

—

—

—

Total

distributions

...............................

(0.14)

(1.04)

(0.47)

(0.54)

(0.47)

Net

asset

value,

end

of

year

.......................

$15.07

$13.58

$14.52

$12.71

$14.63

Total

return

....................................

12.01%

1.79%

18.06%

(9.60)%

11.58%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.69%

0.17%

0.15%

0.14%

0.18%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.63%

e

0.17%

f

0.15%

f

0.14%

f

0.18%

f

Net

investment

income

c

...........................

1.58%

2.89%

3.24%

2.91%

3.06%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$122,896

$123,049

$156,275

$145,522

$174,219

Portfolio

turnover

rate

............................

97.19%

g

4.07%

0.29%

0.73%

0.48%

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

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.09%

for

the

year

ended

December

31,

2021.

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%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Fund

Allocator

Series

Statement

of

Investments,

December

31,

2021

Franklin

Global

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

65.3%

Aerospace

&

Defense

0.8%

Raytheon

Technologies

Corp.

............................

United

States

312,000

$

26,850,720

Air

Freight

&

Logistics

0.9%

Deutsche

Post

AG

.....................................

Germany

260,000

16,710,187

United

Parcel

Service,

Inc.,

B

............................

United

States

64,600

13,846,364

30,556,551

Automobiles

0.9%

Daimler

AG

..........................................

Germany

115,000

8,779,537

Toyota

Motor

Corp.

....................................

Japan

1,137,000

21,001,927

29,781,464

Banks

4.7%

Banco

Bilbao

Vizcaya

Argentaria

SA

.......................

Spain

2,970,000

17,601,095

Bank

of

America

Corp.

.................................

United

States

700,100

31,147,449

Citigroup,

Inc.

........................................

United

States

79,300

4,788,927

Commonwealth

Bank

of

Australia

.........................

Australia

175,000

12,847,676

HSBC

Holdings

plc

....................................

United

Kingdom

1,470,000

8,870,502

JPMorgan

Chase

&

Co.

.................................

United

States

275,300

43,593,755

Royal

Bank

of

Canada

.................................

Canada

118,000

12,527,877

US

Bancorp

.........................................

United

States

419,000

23,535,230

154,912,511

Beverages

1.7%

Coca-Cola

Co.

(The)

...................................

United

States

338,000

20,012,980

Constellation

Brands,

Inc.,

A

.............................

United

States

56,700

14,229,999

PepsiCo,

Inc.

........................................

United

States

117,000

20,324,070

54,567,049

Biotechnology

1.1%

AbbVie,

Inc.

.........................................

United

States

272,000

36,828,800

Building

Products

0.5%

Trane

Technologies

plc

.................................

United

States

85,000

17,172,550

Capital

Markets

1.5%

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

82,000

4,796,363

Morgan

Stanley

.......................................

United

States

285,000

27,975,600

S&P

Global,

Inc.

......................................

United

States

33,700

15,904,041

48,676,004

Chemicals

0.8%

BASF

SE

...........................................

Germany

177,000

12,412,991

Linde

plc

............................................

United

Kingdom

44,000

15,242,920

27,655,911

Communications

Equipment

0.2%

Cisco

Systems,

Inc.

...................................

United

States

112,500

7,129,125

Diversified

Telecommunication

Services

0.3%

Verizon

Communications,

Inc.

............................

United

States

200,500

10,417,980

Electric

Utilities

2.0%

Duke

Energy

Corp.

....................................

United

States

260,000

27,274,000

Iberdrola

SA

.........................................

Spain

1,066,000

12,611,445

NextEra

Energy,

Inc.

...................................

United

States

132,000

12,323,520

Southern

Co.

(The)

....................................

United

States

184,000

12,618,720

64,827,685

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electrical

Equipment

0.4%

Mitsubishi

Electric

Corp.

................................

Japan

1,132,600

$

14,367,393

Electronic

Equipment,

Instruments

&

Components

0.5%

TE

Connectivity

Ltd.

...................................

United

States

93,000

15,004,620

Entertainment

0.8%

Electronic

Arts,

Inc.

....................................

United

States

87,000

11,475,300

Nintendo

Co.

Ltd.

.....................................

Japan

32,100

15,009,092

26,484,392

Equity

Real

Estate

Investment

Trusts

(REITs)

1.3%

American

Tower

Corp.

..................................

United

States

61,500

17,988,750

Prologis,

Inc.

.........................................

United

States

136,000

22,896,960

40,885,710

Food

&

Staples

Retailing

0.5%

Walmart,

Inc.

........................................

United

States

110,200

15,944,838

Food

Products

1.1%

Mondelez

International,

Inc.,

A

............................

United

States

250,000

16,577,500

Nestle

SA

...........................................

Switzerland

137,641

19,194,948

35,772,448

Health

Care

Equipment

&

Supplies

0.3%

Medtronic

plc

........................................

United

States

98,000

10,138,100

Health

Care

Providers

&

Services

1.7%

Anthem,

Inc.

.........................................

United

States

46,900

21,740,026

UnitedHealth

Group,

Inc.

................................

United

States

68,000

34,145,520

55,885,546

Hotels,

Restaurants

&

Leisure

0.4%

McDonald's

Corp.

.....................................

United

States

53,000

14,207,710

Household

Durables

0.8%

Sony

Group

Corp.

.....................................

Japan

206,600

26,073,222

Household

Products

0.9%

Procter

&

Gamble

Co.

(The)

.............................

United

States

180,000

29,444,400

Industrial

Conglomerates

1.7%

Hitachi

Ltd.

..........................................

Japan

284,000

15,375,870

Honeywell

International,

Inc.

.............................

United

States

110,500

23,040,355

Siemens

AG

.........................................

Germany

95,697

16,561,894

54,978,119

Insurance

1.8%

AIA

Group

Ltd.

.......................................

Hong

Kong

897,000

9,054,562

Allianz

SE

...........................................

Germany

25,000

5,891,810

MetLife,

Inc.

.........................................

United

States

273,300

17,078,517

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

..

Germany

38,000

11,209,070

Sun

Life

Financial,

Inc.

.................................

Canada

253,000

14,087,568

57,321,527

Interactive

Media

&

Services

2.6%

a

Alphabet,

Inc.,

A

......................................

United

States

15,000

43,455,600

a

Meta

Platforms,

Inc.,

A

.................................

United

States

82,000

27,580,700

Tencent

Holdings

Ltd.

..................................

China

230,000

13,422,651

84,458,951

Internet

&

Direct

Marketing

Retail

1.6%

a

Amazon.com,

Inc.

.....................................

United

States

13,000

43,346,420

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

(continued)

a

Pinduoduo

,

Inc.,

ADR

..................................

China

125,000

$

7,287,500

50,633,920

IT

Services

1.7%

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

211,200

18,737,664

Fujitsu

Ltd.

..........................................

Japan

92,000

15,798,430

Mastercard

,

Inc.,

A

....................................

United

States

28,000

10,060,960

Visa,

Inc.,

A

..........................................

United

States

54,000

11,702,340

56,299,394

Life

Sciences

Tools

&

Services

0.8%

Danaher

Corp.

.......................................

United

States

46,000

15,134,460

a

Illumina,

Inc.

.........................................

United

States

29,000

11,032,760

26,167,220

Machinery

1.4%

a

Daimler

Truck

Holding

AG

...............................

Germany

57,500

2,112,153

Deere

&

Co.

.........................................

United

States

54,000

18,516,060

Stanley

Black

&

Decker,

Inc.

.............................

United

States

68,300

12,882,746

Volvo

AB,

B

..........................................

Sweden

490,000

11,319,212

44,830,171

Marine

0.6%

AP

Moller

-

Maersk

A/S,

B

...............................

Denmark

5,655

20,167,796

Media

0.3%

Comcast

Corp.,

A

.....................................

United

States

217,700

10,956,841

Metals

&

Mining

2.3%

Agnico

Eagle

Mines

Ltd.

................................

Canada

210,000

11,158,482

BHP

Group

plc

.......................................

Australia

665,000

19,770,812

Fortescue

Metals

Group

Ltd.

.............................

Australia

615,000

8,633,620

Newmont

Corp.

.......................................

United

States

220,000

13,644,400

Rio

Tinto

plc

.........................................

Australia

322,000

21,217,449

74,424,763

Multiline

Retail

0.8%

a

Dollar

Tree,

Inc.

......................................

United

States

60,000

8,431,200

Target

Corp.

.........................................

United

States

78,000

18,052,320

26,483,520

Multi-Utilities

0.7%

Dominion

Energy,

Inc.

..................................

United

States

150,000

11,784,000

RWE

AG

............................................

Germany

275,000

11,133,250

22,917,250

Oil,

Gas

&

Consumable

Fuels

2.9%

Canadian

Natural

Resources

Ltd.

.........................

Canada

385,000

16,273,824

Chevron

Corp.

.......................................

United

States

275,000

32,271,250

Eni

SpA

............................................

Italy

1,850,000

25,690,588

TotalEnergies

SE

.....................................

France

410,000

20,852,596

95,088,258

Personal

Products

0.5%

Unilever

plc

..........................................

United

Kingdom

307,000

16,456,084

Pharmaceuticals

4.1%

AstraZeneca

plc

......................................

United

Kingdom

297,000

34,652,340

Bristol-Myers

Squibb

Co.

................................

United

States

260,000

16,211,000

Eisai

Co.

Ltd.

........................................

Japan

198,000

11,233,196

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Pharmaceuticals

(continued)

Eli

Lilly

&

Co.

........................................

United

States

27,800

$

7,678,916

Johnson

&

Johnson

...................................

United

States

100,000

17,107,000

Novo

Nordisk

A/S,

B

...................................

Denmark

157,000

17,620,596

Pfizer,

Inc.

...........................................

United

States

305,000

18,010,250

Takeda

Pharmaceutical

Co.

Ltd.

..........................

Japan

399,500

10,903,036

133,416,334

Road

&

Rail

1.2%

Canadian

National

Railway

Co.

...........................

Canada

95,000

11,673,468

Union

Pacific

Corp.

....................................

United

States

107,000

26,956,510

38,629,978

Semiconductors

&

Semiconductor

Equipment

4.9%

Analog

Devices,

Inc.

...................................

United

States

100,000

17,577,000

Applied

Materials,

Inc.

..................................

United

States

93,000

14,634,480

Broadcom,

Inc.

.......................................

United

States

35,000

23,289,350

Lam

Research

Corp.

...................................

United

States

9,400

6,760,010

NVIDIA

Corp.

........................................

United

States

55,000

16,176,050

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

250,000

30,077,500

Texas

Instruments,

Inc.

.................................

United

States

158,100

29,797,107

Tokyo

Electron

Ltd.

....................................

Japan

39,500

22,721,299

161,032,796

Software

5.0%

a

Adobe,

Inc.

..........................................

United

States

25,000

14,176,500

Intuit,

Inc.

...........................................

United

States

27,000

17,366,940

Microsoft

Corp.

.......................................

United

States

200,000

67,264,000

Oracle

Corp.

.........................................

United

States

129,000

11,250,090

a

salesforce.com,

Inc.

...................................

United

States

47,000

11,944,110

a

ServiceNow

,

Inc.

......................................

United

States

15,000

9,736,650

a

Synopsys,

Inc.

.......................................

United

States

50,000

18,425,000

a

Workday,

Inc.,

A

......................................

United

States

51,000

13,932,180

164,095,470

Specialty

Retail

3.0%

Home

Depot,

Inc.

(The)

.................................

United

States

39,000

16,185,390

Lowe's

Cos.,

Inc.

......................................

United

States

95,000

24,555,600

a

O'Reilly

Automotive,

Inc.

................................

United

States

20,000

14,124,600

TJX

Cos.,

Inc.

(The)

...................................

United

States

232,700

17,666,584

Tractor

Supply

Co.

....................................

United

States

104,000

24,814,400

97,346,574

Technology

Hardware,

Storage

&

Peripherals

1.8%

Apple,

Inc.

..........................................

United

States

250,000

44,392,500

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

200,000

13,133,889

57,526,389

Textiles,

Apparel

&

Luxury

Goods

0.5%

NIKE,

Inc.,

B

.........................................

United

States

95,000

15,833,650

Trading

Companies

&

Distributors

0.6%

ITOCHU

Corp.

.......................................

Japan

625,600

19,127,907

Wireless

Telecommunication

Services

0.4%

KDDI

Corp.

..........................................

Japan

418,300

12,225,212

Total

Common

Stocks

(Cost

$1,809,225,648)

....................................

2,134,002,853

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Management

Investment

Companies

8.4%

Capital

Markets

8.4%

iShares

Core

MSCI

Emerging

Markets

ETF

..................

United

States

1,600,000

$

95,776,000

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

.........

United

States

280,000

30,536,800

b

Templeton

Global

Bond

Fund,

Class

R6

....................

United

States

13,636,110

119,997,766

VanEck

J.P.

Morgan

EM

Local

Currency

Bond

ETF

............

United

States

985,000

28,171,000

274,481,566

Total

Management

Investment

Companies

(Cost

$301,937,719)

...................

274,481,566

Principal

Amount

*

Corporate

Bonds

5.6%

Auto

Components

0.1%

c

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

3,250,000

3,213,437

Automobiles

0.1%

Ford

Motor

Co.

,

Senior

Note

,

4.346

%

,

12/08/26

...............

United

States

1,207,000

1,318,122

c

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

1,600,000

1,603,968

2,922,090

Banks

1.5%

c

Australia

&

New

Zealand

Banking

Group

Ltd.

,

Sub.

Bond

,

144A,

2.57%

to

11/25/30,

FRN

thereafter

,

11/25/35

................

Australia

6,687,000

6,410,637

d

Bank

of

America

Corp.

,

U

,

Junior

Sub.

Bond

,

5.2%

to

6/01/23,

FRN

thereafter

,

Perpetual

.................................

United

States

3,994,000

4,126,301

Barclays

plc

,

Senior

Note

,

2.852%

to

5/07/25,

FRN

thereafter

,

5/07/26

...........................................

United

Kingdom

6,250,000

6,451,041

HSBC

Holdings

plc

,

Sub.

Bond

,

4.25

%

,

8/18/25

...............

United

Kingdom

6,128,000

6,594,792

d

JPMorgan

Chase

&

Co.

,

Q

,

Junior

Sub.

Bond

,

5.15%

to

5/01/23,

FRN

thereafter

,

Perpetual

.............................

United

States

4,045,000

4,149,037

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Bond

,

3.287

%

,

7/25/27

Japan

1,690,000

1,806,856

c

Societe

Generale

SA

,

d

Junior

Sub.

Bond,

144A,

4.75%

to

5/26/26,

FRN

thereafter,

Perpetual

.........................................

France

1,600,000

1,628,656

Senior

Note,

144A,

2.625%,

1/22/25

.....................

France

6,354,000

6,519,007

Sumitomo

Mitsui

Financial

Group,

Inc.

,

Sub.

Bond

,

3.202

%

,

9/17/29

Japan

1,464,000

1,525,604

Toronto-Dominion

Bank

(The)

,

Sub.

Bond

,

3.105%

to

4/22/25,

FRN

thereafter

,

4/22/30

...................................

Canada

4,900,000

CAD

4,002,732

d

US

Bancorp

,

Junior

Sub.

Bond

,

3.7%

to

1/15/27,

FRN

thereafter

,

Perpetual

..........................................

United

States

1,670,000

1,673,841

d

Wells

Fargo

&

Co.

,

S

,

Junior

Sub.

Bond

,

5.9%

to

6/15/24,

FRN

thereafter

,

Perpetual

.................................

United

States

1,504,000

1,587,871

Westpac

Banking

Corp.

,

Sub.

Bond

,

2.894%

to

2/04/25,

FRN

thereafter

,

2/04/30

...................................

Australia

1,503,000

1,535,707

48,012,082

Biotechnology

0.1%

c

Grifols

Escrow

Issuer

SA

,

Senior

Note

,

144A,

4.75

%

,

10/15/28

...

Spain

1,600,000

1,634,992

Capital

Markets

0.2%

c

Macquarie

Bank

Ltd.

,

Senior

Note

,

Reg

S,

1.125

%

,

12/15/25

.....

Australia

1,250,000

GBP

1,666,291

Nomura

Holdings,

Inc.

,

Senior

Bond

,

3.103

%

,

1/16/30

..........

Japan

6,225,000

6,423,692

8,089,983

Chemicals

0.5%

c

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,600,000

7,641,040

c

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

1,258,000

1,340,059

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

(continued)

c

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

3,200,000

$

3,263,328

Sasol

Financing

USA

LLC

,

Senior

Note

,

4.375

%

,

9/18/26

.......

South

Africa

1,600,000

1,611,824

c

SCIH

Salt

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

5/01/28

...........................................

United

States

3,400,000

3,269,321

17,125,572

Commercial

Services

&

Supplies

0.2%

c

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

3,200,000

3,156,512

c

GFL

Environmental,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

8/15/29

....

Canada

1,625,000

1,612,228

c

Verisure

Midholding

AB

,

Senior

Note

,

144A,

5.25

%

,

2/15/29

.....

Sweden

1,400,000

EUR

1,619,952

6,388,692

Communications

Equipment

0.1%

c

CommScope

Technologies

LLC

,

Senior

Bond,

144A,

6%,

6/15/25

........................

United

States

2,200,000

2,202,453

Senior

Note,

144A,

5%,

3/15/27

........................

United

States

954,000

892,944

3,095,397

Consumer

Finance

0.2%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Note

,

3

%

,

10/29/28

..................................

Ireland

1,600,000

1,623,869

c,d

Volkswagen

International

Finance

NV

,

Senior

Bond

,

Reg

S,

3.5%

to

6/17/25,

FRN

thereafter

,

Perpetual

.......................

Germany

3,200,000

EUR

3,885,587

5,509,456

Containers

&

Packaging

0.1%

c

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

......................

United

States

954,000

957,482

Senior

Secured

Note,

144A,

5.5%,

4/15/24

................

United

States

313,000

316,277

c

Trivium

Packaging

Finance

BV

,

Senior

Secured

Note

,

144A,

3.75

%

,

8/15/26

...........................................

Netherlands

521,000

EUR

602,113

1,875,872

Diversified

Telecommunication

Services

0.1%

c

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

1,243,000

1,189,303

c

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.125

%

,

7/15/29

...

France

1,675,000

1,636,793

2,826,096

Electric

Utilities

0.0%

†

Pacific

Gas

and

Electric

Co.

,

Senior

Note

,

2.1

%

,

8/01/27

........

United

States

1,600,000

1,545,969

Electrical

Equipment

0.0%

†

c

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

1,600,000

1,618,744

Electronic

Equipment,

Instruments

&

Components

0.1%

c

TTM

Technologies,

Inc.

,

Senior

Note

,

144A,

4

%

,

3/01/29

........

United

States

1,640,000

1,632,235

Energy

Equipment

&

Services

0.1%

c

Weatherford

International

Ltd.

,

Senior

Secured

Note

,

144A,

6.5

%

,

9/15/28

...........................................

United

States

3,800,000

4,026,100

Food

Products

0.1%

c

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

12/01/31

.....................

United

States

1,600,000

1,626,296

Health

Care

Equipment

&

Supplies

0.1%

c

Mozart

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

United

States

1,600,000

1,625,152

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

0.1%

c

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

950,000

$

969,266

Senior

Note,

144A,

6.875%,

4/01/28

.....................

United

States

687,000

674,232

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

1,162,000

1,222,819

c

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

1,600,000

1,640,896

4,507,213

Hotels,

Restaurants

&

Leisure

0.1%

Las

Vegas

Sands

Corp.

,

Senior

Note

,

3.2

%

,

8/08/24

...........

United

States

1,600,000

1,629,957

c

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/25

.................................

United

States

3,115,000

3,212,655

4,842,612

Household

Products

0.2%

c

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

6,180,000

6,116,006

Independent

Power

and

Renewable

Electricity

Producers

0.1%

c

Calpine

Corp.

,

Senior

Secured

Note

,

144A,

4.5

%

,

2/15/28

.......

United

States

306,000

318,004

c,d

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/15/26,

FRN

thereafter

,

Perpetual

.................................

United

States

1,640,000

1,663,936

1,981,940

Insurance

0.1%

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.375%

to

5/15/25,

FRN

thereafter

,

5/15/45

...................................

United

States

4,060,000

4,335,117

Interactive

Media

&

Services

0.2%

c

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

6,290,000

6,169,304

Internet

&

Direct

Marketing

Retail

0.2%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

3.4

%

,

12/06/27

.......

China

6,300,000

6,673,919

Media

0.2%

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

11/15/24

.........................

United

States

1,226,000

1,261,015

c

Senior

Secured

Note,

144A,

5.25%,

12/01/26

..............

United

States

1,600,000

1,628,256

c

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

6/01/27

.....................................

United

States

1,210,000

1,305,003

c

Ziggo

BV

,

Senior

Secured

Bond

,

144A,

4.875

%

,

1/15/30

........

Netherlands

1,219,000

1,252,181

5,446,455

Metals

&

Mining

0.1%

c

Cleveland-Cliffs,

Inc.

,

Senior

Secured

Note

,

144A,

9.875

%

,

10/17/25

United

States

356,000

403,337

c

CSN

Resources

SA

,

Senior

Bond

,

144A,

4.625

%

,

6/10/31

.......

Brazil

1,700,000

1,619,990

2,023,327

Oil,

Gas

&

Consumable

Fuels

0.2%

c

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note

,

144A,

11

%

,

4/15/25

........................

United

States

1,249,000

1,348,658

Occidental

Petroleum

Corp.

,

Senior

Note

,

5.55

%

,

3/15/26

.......

United

States

3,900,000

4,346,082

5,694,740

Paper

&

Forest

Products

0.1%

Suzano

Austria

GmbH

,

Senior

Bond

,

3.75

%

,

1/15/31

...........

Brazil

4,805,000

4,891,442

Pharmaceuticals

0.1%

c

Bausch

Health

Americas,

Inc.

,

Senior

Note

,

144A,

9.25

%

,

4/01/26

.

United

States

2,400,000

2,537,964

c

Bausch

Health

Cos.,

Inc.

,

Senior

Bond

,

144A,

6.125

%

,

4/15/25

...

United

States

756,000

770,995

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Pharmaceuticals

(continued)

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

2.8

%

,

7/21/23

...........................................

Israel

970,000

$

974,637

4,283,596

Road

&

Rail

0.2%

c

Ashtead

Capital,

Inc.

,

Senior

Note

,

144A,

4

%

,

5/01/28

..........

United

Kingdom

6,220,000

6,502,929

Software

0.0%

†

c

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

1,640,000

1,602,288

Tobacco

0.1%

BAT

Capital

Corp.

,

Senior

Bond

,

2.726

%

,

3/25/31

.............

United

Kingdom

4,350,000

4,226,570

Total

Corporate

Bonds

(Cost

$183,849,197)

.....................................

182,065,623

Foreign

Government

and

Agency

Securities

7.7%

c

Australia

Government

Bond,

Reg

S,

1.5%,

6/21/31

............

Australia

12,170,000

AUD

8,732,343

c

Belgium

Government

Bond,

Reg

S,

4%,

3/28/32

..............

Belgium

3,150,000

EUR

5,004,084

c

Bundesrepublik

Deutschland,

Reg

S,

2%,

1/04/22

.............

Germany

6,455,000

EUR

7,343,208

Canada

Government

Bond

,

0.25%,

2/01/23

.....................................

Canada

4,100,000

CAD

3,224,782

5.75%,

6/01/33

.....................................

Canada

2,640,000

CAD

2,997,616

c

Canada

Housing

Trust

No.

1,

Senior

Bond,

144A,

2.65%,

12/15/28

Canada

18,100,000

CAD

15,224,898

Ecopetrol

SA,

Senior

Bond,

4.625%,

11/02/31

................

Colombia

1,650,000

1,607,116

European

Investment

Bank,

Senior

Bond,

2.125%,

4/13/26

......

Supranational

e

14,750,000

15,308,474

c

Finland

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

0.75%,

4/15/31

................

Finland

1,892,000

EUR

2,300,519

Senior

Bond,

144A,

Reg

S,

1.375%,

4/15/47

...............

Finland

1,567,000

EUR

2,209,298

c

France

Government

Bond

,

Reg

S,

Zero

Cpn

.,

2/25/22

.............................

France

6,530,000

EUR

7,438,096

Reg

S,

8.25%,

4/25/22

................................

France

2,484,897

EUR

2,905,441

Reg

S,

2.5%,

5/25/30

.................................

France

4,120,000

EUR

5,672,171

Reg

S,

Zero

Cpn

.,

11/25/30

............................

France

4,350,000

EUR

4,902,868

Reg

S,

1.5%,

5/25/31

.................................

France

4,410,000

EUR

5,661,707

c

Italy

Buoni

Poliennali

del

Tesoro

,

Senior

Bond,

144A,

Reg

S,

4.75%,

9/01/44

................

Italy

1,860,000

EUR

3,280,448

Senior

Bond,

144A,

Reg

S,

3.25%,

9/01/46

................

Italy

1,884,000

EUR

2,719,189

Senior

Bond,

144A,

Reg

S,

1.7%,

9/01/51

.................

Italy

2,786,000

EUR

2,976,248

Reg

S,

5%,

3/01/22

..................................

Italy

6,133,000

EUR

7,040,648

Japan

Government

Bond

,

0.1%,

6/20/31

......................................

Japan

8,050,000,000

JPY

70,269,480

0.5%,

9/20/46

......................................

Japan

1,435,000,000

JPY

12,245,099

Mexico

Government

Bond,

Senior

Bond,

4.125%,

1/21/26

.......

Mexico

13,950,000

15,349,464

c

Netherlands

Government

Bond

,

144A,

Reg

S,

Zero

Cpn

.,

1/15/22

........................

Netherlands

5,528,000

EUR

6,289,074

144A,

Reg

S,

0.5%,

1/15/40

............................

Netherlands

1,410,000

EUR

1,709,683

144A,

Reg

S,

3.75%,

1/15/42

...........................

Netherlands

865,000

EUR

1,683,106

c

Petroleos

Mexicanos

,

Senior

Bond,

144A,

6.7%,

2/16/32

........

Mexico

1,650,000

1,669,759

Spain

Bonos

Y

Obligaciones

del

Estado

,

c

Senior

Bond,

144A,

Reg

S,

5.85%,

1/31/22

................

Spain

5,904,000

EUR

6,750,321

c

Senior

Bond,

144A,

Reg

S,

1.95%,

4/30/26

................

Spain

2,563,000

EUR

3,182,508

c

Senior

Bond,

144A,

Reg

S,

2.9%,

10/31/46

................

Spain

1,610,000

EUR

2,476,596

6%,

1/31/29

........................................

Spain

3,760,000

EUR

6,054,403

c

United

Kingdom

Gilt

,

Reg

S,

4%,

3/07/22

..................................

United

Kingdom

7,727,000

GBP

10,523,623

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

c

United

Kingdom

Gilt,

(continued)

Reg

S,

1.5%,

7/22/47

.................................

United

Kingdom

5,110,000

GBP

$

7,415,675

Total

Foreign

Government

and

Agency

Securities

(Cost

$265,667,572)

............

252,167,945

U.S.

Government

and

Agency

Securities

6.7%

U.S.

Treasury

Notes

,

0.125%,

12/31/22

....................................

United

States

55,000,000

54,832,975

0.125%,

8/31/23

.....................................

United

States

32,000,000

31,721,250

0.375%,

9/15/24

.....................................

United

States

32,000,000

31,551,250

0.375%,

12/31/25

....................................

United

States

13,000,000

12,602,890

0.875%,

11/15/30

....................................

United

States

13,000,000

12,362,695

f

0.125%,

1/15/31

.....................................

United

States

63,000,000

75,009,167

Total

U.S.

Government

and

Agency

Securities

(Cost

$218,476,589)

................

218,080,227

Mortgage-Backed

Securities

1.9%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

1.9%

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

.................

United

States

37,127,768

38,474,235

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

.................

United

States

23,230,377

24,110,654

62,584,889

Total

Mortgage-Backed

Securities

(Cost

$63,435,717)

............................

62,584,889

Total

Long

Term

Investments

(Cost

$2,842,592,442)

.............................

3,123,383,103

a

Short

Term

Investments

4.2%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

4.2%

b,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.0

1%

.....

United

States

137,626,130

137,626,130

Total

Money

Market

Funds

(Cost

$137,626,130)

.................................

137,626,130

Total

Short

Term

Investments

(Cost

$137,626,130

)

...............................

137,626,130

a

Total

Investments

(Cost

$2,980,218,572)

99.8%

..................................

$3,261,009,233

Other

Assets,

less

Liabilities

0.2%

.............................................

5,359,772

Net

Assets

100.0%

...........................................................

$3,266,369,005

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

c

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,

2021,

the

aggregate

value

of

these

securities

was

$232,861,137,

representing

7.1%

of

net

assets.

d

Perpetual

security

with

no

stated

maturity

date.

e

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

f

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(e).

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Statement

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

At

December

31,

2021,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

See

Note 8 regarding

other

derivative

information.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

British

Pound

......

JPHQ

Sell

53,168,982

71,309,228

2/09/22

$

—

$

(588,788)

Canadian

Dollar

....

BZWS

Sell

119,280,680

94,873,670

2/09/22

547,311

—

Danish

Krone

......

BZWS

Sell

246,298,513

38,052,485

2/09/22

348,217

—

Euro

.............

BZWS

Sell

83,092,162

95,477,049

2/09/22

882,443

—

Hong

Kong

Dollar

...

HSBK

Sell

389,810,445

50,033,750

2/09/22

31,974

—

Japanese

Yen

......

JPHQ

Sell

14,233,933,951

125,071,142

2/09/22

1,370,185

—

Total

Forward

Exchange

Contracts

...................................................

$3,180,130

$(588,788)

Net

unrealized

appreciation

(depreciation)

............................................

$2,591,342

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Abbreviations

on

page

39

.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

Franklin

Global

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,711,320,634

Cost

-

Non-controlled

affiliates

(Not

e

3f)

........................................................

268,897,938

Value

-

Unaffiliated

issuers

..................................................................

$3,003,385,337

Value

-

Non-controlled

affiliates

(Not

e

3f)

........................................................

257,623,896

Cash

....................................................................................

48,832

Foreign

currency,

at

value

(cost

$992,121)

........................................................

981,310

Receivables:

Capital

shares

sold

........................................................................

343,485

Dividends

and

interest

.....................................................................

5,895,673

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

3,180,130

Total

assets

..........................................................................

3,271,458,663

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

1,245,691

Management

fees

.........................................................................

1,450,893

Distribution

fees

..........................................................................

745,232

Transfer

agent

fees

........................................................................

730,306

Reports

to

shareholders

fees

................................................................

232,264

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

588,788

Accrued

expenses

and

other

liabilities

...........................................................

96,484

Total

liabilities

.........................................................................

5,089,658

Net

assets,

at

value

.................................................................

$3,266,369,005

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$3,056,861,826

Total

distributable

earnings

(losses)

.............................................................

209,507,179

Net

assets,

at

value

.................................................................

$3,266,369,005

Franklin

Global

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$3,006,324,166

Shares

outstanding

........................................................................

201,067,300

Net

asset

value

per

share

a

..................................................................

$14.95

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$15.82

Class

C:

Net

assets,

at

value

.......................................................................

$131,347,392

Shares

outstanding

........................................................................

8,878,312

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$14.79

Class

R:

Net

assets,

at

value

.......................................................................

$5,228,620

Shares

outstanding

........................................................................

348,804

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$14.99

Class

R6:

Net

assets,

at

value

.......................................................................

$572,725

Shares

outstanding

........................................................................

37,122

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.43

Advisor

Class:

Net

assets,

at

value

.......................................................................

$122,896,102

Shares

outstanding

........................................................................

8,152,429

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$15.07

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

Franklin

Global

Allocation

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$2,076,506)

Unaffiliated

issuers

........................................................................

$51,394,506

Non-controlled

affiliates

(Not

e

3f)

.............................................................

11,195,412

Interest:

Unaffiliated

issuers

........................................................................

9,432,617

Total

investment

income

...................................................................

72,022,535

Expenses:

Management

fees

(Note

3

a

)

...................................................................

17,243,281

Administrative

fees

(Note

3

b

)

..................................................................

84,292

Interest

expense

...........................................................................

1,198

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

7,406,685

    Class

C

................................................................................

1,687,004

    Class

R

................................................................................

25,180

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

3,437,725

    Class

C

................................................................................

194,938

    Class

R

................................................................................

5,846

    Class

R6

...............................................................................

574

    Advisor

Class

............................................................................

140,387

Custodian

fees

(Note

4

)

......................................................................

12,219

Reports

to

shareholders

fees

..................................................................

418,910

Registration

and

filing

fees

....................................................................

128,343

Professional

fees

...........................................................................

172,985

Trustees'

fees

and

expenses

..................................................................

29,173

Other

....................................................................................

585,118

Total

expenses

.........................................................................

31,573,858

Expense

reductions

(Note

4

)

...............................................................

(3,754)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(1,878,474)

Net

expenses

.........................................................................

29,691,630

Net

investment

income

................................................................

42,330,905

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

+

Unaffiliated

issuers

......................................................................

53,137,872

Non-controlled

affiliates

(Not

e

3f)

............................................................

(126,378,763)

Foreign

currency

transactions

................................................................

(593,466)

Forward

exchange

contracts

.................................................................

20,006,246

Net

realized

gain

(loss)

..................................................................

(53,828,111)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

292,064,703

Non-controlled

affiliates

(Not

e

3f)

............................................................

78,691,842

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(88,166)

Forward

exchange

contracts

.................................................................

2,591,342

Net

change

in

unrealized

appreciation

(depreciation)

............................................

373,259,721

Net

realized

and

unrealized

gain

(loss)

............................................................

319,431,610

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$361,762,515

+

Includes

loss

fr

om

a

redemption

in-kind

(Note

3h)

$(52,973,042)

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

27

Franklin

Global

Allocation

Fund

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$42,330,905

$85,361,860

Net

realized

gain

(loss)

.................................................

(53,828,111)

(23,951,127)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

373,259,721

(80,637,415)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

361,762,515

(19,226,682)

Distributions

to

shareholders:

Class

A

.............................................................

(24,497,459)

(220,704,366)

Class

C

.............................................................

(862,058)

(15,403,864)

Class

R

.............................................................

(36,556)

(353,284)

Class

R6

............................................................

(4,892)

(13,071)

Advisor

Class

........................................................

(1,127,709)

(10,088,728)

Total

distributions

to

shareholders

..........................................

(26,528,674)

(246,563,313)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(250,680,505)

(218,056,745)

Class

C

.............................................................

(87,521,338)

(74,351,275)

Class

R

.............................................................

(258,119)

(332,749)

Class

R6

............................................................

(118,494)

615,942

Advisor

Class

........................................................

(12,734,380)

(19,978,078)

Total

capital

share

transactions

............................................

(351,312,836)

(312,102,905)

Net

increase

(decrease)

in

net

assets

...................................

(16,078,995)

(577,892,900)

Net

assets:

Beginning

of

year

.......................................................

3,282,448,000

3,860,340,900

End

of

year

...........................................................

$3,266,369,005

$3,282,448,000

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

Franklin

Global

Allocation

Fund

28

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

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Global

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Effective

August

2,

2021,

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Prior

to

August

2,

2021,

Class

C

shares

converted

to

Class

A

shares

after

a

10-year

holding

period.

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

Fund

invests

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

Effective

February

1,

2021,

the

Fund

repositioned

to

a

direct

investment

fund

with

an

actively

managed

global

multi-asset

strategy,

which

involved

modifying

the

Fund’s

principal

investment

strategies

and

changing

the

name

of

the

Fund

from

Franklin

Founding

Funds

Allocation

Fund

to

Franklin

Global

Allocation

Fund.

The

following

summarizes

the Fund

’

s

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The

Fund’s

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Fund’s

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Fund’s

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Fund’s pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund’s net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

29

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund’s

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund’s

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund’s

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

December

31,

2021,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund’s

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund’s

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

30

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

December

31,

2021,

the

Fund

had

no

OTC

derivatives

in

a

net

liability

position

for

such

contracts. 

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

the

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund,

if

any,

is

held

in

segregated

accounts

with

the

Fund’s

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund’s

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

8

regarding

other

derivative

information.

d.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2021,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

and

capital

gain

distributions

by

Underlying

Funds

and

ETFs

are

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.  

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Fund

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Fund

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

inflation

principal

adjustments

in

the

Statement

of

Operations.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

Year

Ended

December

31,

2021

Year

Ended

December

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

11,023,554

$157,462,459

10,964,979

$137,069,304

Shares

issued

in

reinvestment

of

distributions

..........

1,637,763

23,452,834

17,872,044

211,606,921

Shares

redeemed

...............................

(30,483,052)

(431,595,798)

(45,445,000)

(566,732,970)

Net

increase

(decrease)

..........................

(17,821,735)

$(250,680,505)

(16,607,977)

$(218,056,745)

Class

C

Shares:

Shares

sold

...................................

1,088,356

$15,258,728

1,642,788

$20,362,129

Shares

issued

in

reinvestment

of

distributions

..........

60,094

854,542

1,288,035

15,022,129

Shares

redeemed

a

..............................

(7,308,840)

(103,634,608)

(8,878,491)

(109,735,533)

Net

increase

(decrease)

..........................

(6,160,390)

$(87,521,338)

(5,947,668)

$(74,351,275)

Class

R

Shares:

Shares

sold

...................................

22,067

$312,126

29,462

$373,841

Shares

issued

in

reinvestment

of

distributions

..........

2,536

36,440

29,366

348,927

Shares

redeemed

...............................

(43,174)

(606,685)

(85,098)

(1,055,517)

Net

increase

(decrease)

..........................

(18,571)

$(258,119)

(26,270)

$(332,749)

Class

R6

Shares:

Shares

sold

...................................

6,772

$102,066

46,224

$629,554

Shares

issued

in

reinvestment

of

distributions

..........

273

4,032

798

11,049

Shares

redeemed

...............................

(15,369)

(224,592)

(1,922)

(24,661)

Net

increase

(decrease)

..........................

(8,324)

$(118,494)

45,100

$615,942

Advisor

Class

Shares:

Shares

sold

...................................

1,374,798

$19,709,294

2,270,973

$30,048,973

Shares

issued

in

reinvestment

of

distributions

..........

70,480

1,016,321

757,696

9,024,083

Shares

redeemed

...............................

(2,354,441)

(33,459,995)

(4,732,163)

(59,051,134)

Net

increase

(decrease)

..........................

(909,163)

$(12,734,380)

(1,703,494)

$19,978,078

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

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

a.

Management

Fees

Effective

February

1,

2021,

the

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund as

follows:

For

the

year

ended

December

31,

2021,

the

gross

effective

investment

management

fee

rate

was

0.530%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Effective

February

1,

2021,

under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

Prior

to

February

1,

2021,

the

Fund

paid

FT

Services

for

administrative

services.

The

Fund

paid

administrative

fees

of

0.03%

per

year

of

the

average

daily

net

assets

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

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

Fund’s

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.600%

Up

to

and

including

$1

billion

0.570%

Over

$1

billion,

up

to

and

including

$5

billion

0.550%

In

excess

of

$5

billion

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$134,911

CDSC

retained

..............................................................................

$11,885

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

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,

2021,

the

Fund

paid

transfer

agent

fees

of

$3,779,470,

of

which $1,564,639

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

December

31,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

Effective

February

1,

2021,

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

and

acquired

fund

fees

and

expenses

for

each

class

of

the

Fund

do

not

exceed

0.73%,

based

on

the

average

net

assets

until

April

30,

2022.

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

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Global

Allocation

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Income

Fund,

Class

R6

$

1,087,143,048

$

4,911,216

$

(1,082,679,346)

$

(76,752,826)

$

67,377,908

$

—

$

4,911,216

Franklin

Mutual

Shares

Fund,

Class

R6

...............

1,103,704,998

—

(1,104,695,326)

a

(21,788,732)

22,779,060

—

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.

—

1,175,755,889

(1,038,129,759)

—

—

137,626,130

137,626,130

12,387

Templeton

Global

Bond

Fund,

Class

R6

...............

—

131,271,809

—

—

(11,274,043)

119,997,766

13,636,110

6,271,809

Templeton

Growth

Fund,

Inc.,

Class

R6

...............

1,093,315,104

—

(1,065,286,816)

a

(27,837,205)

(191,083)

—

—

Total

Affiliated

Securities

...

$3,284,163,150

$1,311,938,914

$(4,290,791,247)

$(126,378,763)

$78,691,842

$257,623,896

$11,195,412

a

The

Fund

sold

shares

of

the

affiliate

through

an

in-kind

transfer

of

common

stocks,

corporate

bonds

and

cash.

See

Note

3(h).

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

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,

2022.

h.

Other

Affiliated

Transactions

During

the

year

ended

December

31,

2021,

the

Fund

realized

$52,973,042

of

net

losses

resulting

from

in-kind

transactions

in

which

the

Fund

redeemed

shares

of

the

Templeton

Growth

Fund,

Inc.

and

Franklin

Mutual

Shares

Fund

for

securities

held

by

the

underlying

funds

rather

than

for

cash.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

year

ended

December

31,

2021,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2021

and

2020,

was

as

follows:

At

December

31,

2021,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

bond

discounts

and

premiums,

and

corporate

actions.

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$107,061,080

2021

2020

Distributions

paid

from:

Ordinary

income

..........................................................

$26,528,674

$129,605,860

Long

term

capital

gain

......................................................

—

116,957,453

$26,528,674

$246,563,313

Cost

of

investments

..........................................................................

$2,989,707,713

Unrealized

appreciation

........................................................................

$380,665,272

Unrealized

depreciation

........................................................................

(106,772,410)

Net

unrealized

appreciation

(depreciation)

..........................................................

$273,892,862

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$42,763,560

3.

Transactions

with

Affiliates

(continued)

g.

Waiver

and

Expense

Reimbursements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

year

ended

December

31,

2021,

aggregated

$3,000,159,478

and

$5,307,531,121,

respectively.

Purchases

and

sales

of

investments

exclude

in-kind

transactions

of

$1,831,484,282.

See

Note

3(h).

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

8.

Other

Derivative

Information

At

December

31,

2021,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statement

of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2021,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2021,

the

average

month

end

contract

value

of

forward

exchange

contracts

was

$412,638,957.

See

Note

1(c) regarding

derivative

financial

instruments. 

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Global

Allocation

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

3,180,130

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

588,788

Total

....................

$3,180,130

$588,788

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Global

Allocation

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

$20,006,246

Forward

exchange

contracts

$2,591,342

Total

.......................

$20,006,246

$2,591,342

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

9.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

year

ended

December

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2021,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

26,850,720

$

—

$

—

$

26,850,720

Air

Freight

&

Logistics

...................

13,846,364

16,710,187

—

30,556,551

Automobiles

..........................

—

29,781,464

—

29,781,464

Banks

...............................

115,593,238

39,319,273

—

154,912,511

Beverages

...........................

54,567,049

—

—

54,567,049

Biotechnology

.........................

36,828,800

—

—

36,828,800

Building

Products

......................

17,172,550

—

—

17,172,550

Capital

Markets

........................

43,879,641

4,796,363

—

48,676,004

Chemicals

...........................

15,242,920

12,412,991

—

27,655,911

Communications

Equipment

..............

7,129,125

—

—

7,129,125

Diversified

Telecommunication

Services

.....

10,417,980

—

—

10,417,980

Electric

Utilities

........................

52,216,240

12,611,445

—

64,827,685

Electrical

Equipment

....................

—

14,367,393

—

14,367,393

Electronic

Equipment,

Instruments

&

Components

........................

15,004,620

—

—

15,004,620

Entertainment

.........................

11,475,300

15,009,092

—

26,484,392

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Equity

Real

Estate

Investment

Trusts

(REITs)

.

$

40,885,710

$

—

$

—

$

40,885,710

Food

&

Staples

Retailing

.................

15,944,838

—

—

15,944,838

Food

Products

........................

16,577,500

19,194,948

—

35,772,448

Health

Care

Equipment

&

Supplies

.........

10,138,100

—

—

10,138,100

Health

Care

Providers

&

Services

..........

55,885,546

—

—

55,885,546

Hotels,

Restaurants

&

Leisure

.............

14,207,710

—

—

14,207,710

Household

Durables

....................

—

26,073,222

—

26,073,222

Household

Products

....................

29,444,400

—

—

29,444,400

Industrial

Conglomerates

................

23,040,355

31,937,764

—

54,978,119

Insurance

............................

31,166,085

26,155,442

—

57,321,527

Interactive

Media

&

Services

..............

71,036,300

13,422,651

—

84,458,951

Internet

&

Direct

Marketing

Retail

..........

50,633,920

—

—

50,633,920

IT

Services

...........................

40,500,964

15,798,430

—

56,299,394

Life

Sciences

Tools

&

Services

............

26,167,220

—

—

26,167,220

Machinery

............................

33,510,959

11,319,212

—

44,830,171

Marine

..............................

—

20,167,796

—

20,167,796

Media

...............................

10,956,841

—

—

10,956,841

Metals

&

Mining

.......................

24,802,882

49,621,881

—

74,424,763

Multiline

Retail

........................

26,483,520

—

—

26,483,520

Multi-Utilities

..........................

11,784,000

11,133,250

—

22,917,250

Oil,

Gas

&

Consumable

Fuels

.............

48,545,074

46,543,184

—

95,088,258

Personal

Products

.....................

—

16,456,084

—

16,456,084

Pharmaceuticals

.......................

59,007,166

74,409,168

—

133,416,334

Road

&

Rail

..........................

38,629,978

—

—

38,629,978

Semiconductors

&

Semiconductor

Equipment

.

138,311,497

22,721,299

—

161,032,796

Software

.............................

164,095,470

—

—

164,095,470

Specialty

Retail

........................

97,346,574

—

—

97,346,574

Technology

Hardware,

Storage

&

Peripherals

.

44,392,500

13,133,889

—

57,526,389

Textiles,

Apparel

&

Luxury

Goods

..........

15,833,650

—

—

15,833,650

Trading

Companies

&

Distributors

..........

—

19,127,907

—

19,127,907

Wireless

Telecommunication

Services

.......

—

12,225,212

—

12,225,212

Management

Investment

Companies

.........

274,481,566

—

—

274,481,566

Corporate

Bonds

........................

—

182,065,623

—

182,065,623

Foreign

Government

and

Agency

Securities

....

—

252,167,945

—

252,167,945

U.S.

Government

and

Agency

Securities

.......

—

218,080,227

—

218,080,227

Mortgage-Backed

Securities

................

—

62,584,889

—

62,584,889

Short

Term

Investments

...................

137,626,130

—

—

137,626,130

Total

Investments

in

Securities

...........

$1,971,661,002

$1,289,348,231

b

$—

$3,261,009,233

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

3,180,130

$

—

$

3,180,130

Total

Other

Financial

Instruments

.........

$—

$3,180,130

$—

$3,180,130

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

588,788

$

—

$

588,788

Total

Other

Financial

Instruments

.........

$—

$588,788

$—

$588,788

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

b

Includes

foreign

securities

valued

at

$574,449,547,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

11.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

AUD

Australian

Dollar

CAD

Canadian

Dollar

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

ETF

Exchange-Traded

Fund

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

40

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Global

Allocation

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Franklin

Global

Allocation

Fund

(one

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

ended

December

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2021

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2021

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2022

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)

41

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2021:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$20,752,959

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$46,538,226

Section

163(j)

Interest

Earned

§163(j)

$9,449,846

Interest

Earned

from

Federal

Obligations

Note

(1)

$3,564,011

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

42

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

120

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

101

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

121

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

43

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

121

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

121

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(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

121

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

44

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

May

2021

101

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(January

2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-January

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2007

132

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board

and

Trustee

Since

2013

121

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

45

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

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,

FASA,

LLC;

Assistant

Secretary,

Franklin

Distributors,

LLC;

and

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

-

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

-

AML

Compliance

Since

July

2021

Not

Applicable

Not

Applicable

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

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

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

46

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

47

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

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

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

481

A

02/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Global

Allocation

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.      

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $286,608 for the fiscal year ended December 31, 2021 and $459,813 for the fiscal year ended December 31, 2020.

(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 were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not  reported in paragraphs (a)-(c) of Item 4 were $3,845 for the fiscal year ended December 31, 2021 and $0 for the fiscal year ended December 31, 2020.  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 $90,743 for the fiscal year ended December 31, 2021 and $49,800 for the fiscal year ended December 31, 2020.  The services for which these fees were paid included benchmarking services in connection with the ICI TA Survey, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional fees in connection with SOC 1 Reports, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, and assets under management certification. 

(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 $94,588 for the fiscal year ended December 31, 2021 and $49,800 for the fiscal year ended December 31, 2020.

(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

. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12.  Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                       N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

codeofethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN FUND ALLOCATOR SERIES

By S\MATTHEW T. HINKLE______________________

      Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date February 28, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By S\MATTHEW T. HINKLE______________________

      Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date February 28, 2022

By S\Christopher Kings________________________

     Christopher Kings

     Chief Financial Officer, Chief Accounting Officer and Treasurer

Date February 28, 2022