N-CSR 1 primary-document.htm
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-
01608
 
Franklin High Income Trust
(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
 
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 9/30
 
Date of reporting period: 9/30/23
 
 
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
High
Income
Fund
A
Series
of
Franklin
High
Income
Trust
September
30,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
Franklin
High
Income
Fund
1
franklintempleton.com
Aannual
Report
SHAREHOLDER
LETTER
Dear
Shareholder,
We
are
pleased
to
provide
the
annual
report
of
Franklin
High
Income
Fund
for
the
12-month
reporting
period
ended
September
30,
2023.
Please
read
on
for
a
detailed
look
at
prevailing
economic
and
market
conditions
during
the
Fund’s
reporting
period
and
to
learn
how
those
conditions
have
affected
Fund
performance.
As
always,
we
remain
committed
to
providing
you
with
excellent
service
and
a
full
spectrum
of
investment
choices.
We
also
remain
committed
to
supplementing
the
support
you
receive
from
your
financial
advisor.
One
way
we
accomplish
this
is
through
our
website,
www.franklintempleton.com
.
Here
you
can
gain
immediate
access
to
market
and
investment
information,
including:
•
Fund
prices
and
performance.
•
Market
insights
and
commentaries
from
our
portfolio
Managers,
and
•
A
host
of
educational
resources.
We
look
forward
to
helping
you
meet
your
financial
goals.
Sincerely,
Sonal
Desai,
Ph.D.
Executive
Vice
President,
Chief
Investment
Officer
of
Franklin
Templeton
Fixed
Income
franklintempleton.com
Annual
Report
2
Contents
Fund
Overview
3
Performance
Summary
5
Your
Fund’s
Expenses
8
Financial
Highlights
and
Schedule
of
Investments
9
Financial
Statements
28
Notes
to
Financial
Statements
32
Report
of
Independent
Registered
Public
Accounting
Firm
44
Tax
Information
45
Board
Members
and
Officers
46
Shareholder
Information
51
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
Fund
Overview
Q.
What
is
the
Fund’s
investment
strategy?
A.
We
are
research
driven,
fundamental
investors
who
rely
on
our
team
of
analysts
to
provide
in-depth
industry
expertise
and
use
qualitative
and
quantitative
analysis
to
evaluate
security
issuers.
As
bottom-up
investors,
we
focus
primarily
on
individual
securities
but
consider
sectors
when
choosing
investments
and,
from
time
to
time,
may
have
significant
investments
in
certain
sectors.
In
selecting
securities,
we
do
not
rely
principally
on
the
ratings
assigned
by
rating
agencies
but
perform
our
own
independent
investment
analysis
to
evaluate
the
creditworthiness
of
the
issuer.
We
consider
a
variety
of
factors,
including
the
issuer’s
experience
and
managerial
strength,
its
sensitivity
to
economic
conditions,
and
its
current
and
prospective
financial
condition.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
Inflation
levels
and
central
bank
action
remained
the
focus
of
financial
markets
during
the
12-month
period
under
review,
during
which
the
U.S.
Federal
Reserve
(Fed)
continued
its
aggressive
action
to
address
the
decades-high
levels
of
inflation
in
the
U.S.
The
Fed
took
a
breather
at
its
June
meeting
after
a
15-month
long
rate
hiking
campaign,
followed
by
a
25-basis
point
increase
in
the
Fed
funds
target
rate
in
July’s
meeting.
Although
the
Fed
kept
its
policy
rate
unchanged
in
September,
Fed
Chair
Jerome
Powell
stressed
that
the
pause
was
no
indication
that
policy
is
sufficiently
restrictive.
The
UST
yield
curve
shifted
higher
during
the
12-month
period
under
review,
especially
the
shorter
end
of
the
curve,
such
as
the
2-year
yield.
The
yield
curve
remains
inverted,
often
a
sign
of
a
slowing
economy.
Over
the
period,
headline
inflation
measures
moved
significantly
lower
such
that
a
soft-landing
scenario
for
the
U.S.
economy
has
increasingly
become
a
general
market
consensus.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
As
interest
rates
are
likely
to
remain
higher
for
longer
than
markets
anticipate,
issuers
with
sizeable
bank
borrowings
will
continue
to
experience
rising
interest
expenses,
especially
for
those
that
have
not
hedged
their
interest
rate
exposure.
We
expect
a
continued
divergence
in
earnings
trends
between
winners
and
losers
against
a
backdrop
of
elevated
interest
expenses
and
a
potentially
slowing
economy.
We
are
responding
to
the
challenges
by
reiterating
our
focus
on
prudent
security
selection
and
individual
company
fundamentals.
Q.
What
were
the
leading
contributors
to
performance?
A.
Security
selection
was
a
leading
contributor
to
performance.
In
particular,
while
the
broader
market
was
shunning
risk
in
anticipation
of
an
imminent
recession,
our
fundamental
research
led
to
investments
in
several
lower-
rated
bonds
that
we
believed
had
strong
credit
profiles
that
would
withstand
a
potential
recession.
These
types
of
bonds
outperformed
over
the
past
year
as
market
views
changed
toward
a
soft-landing
consensus.
Industry
positioning
also
benefited
performance,
in
particular
our
underweighted
exposure
to
some
of
the
more
challenged
sectors
such
as
PayTV
(subscription-based
cable
or
satellite
television
services)
and
Telecommunications.
High
Yield
(HY)
bonds
rebounded
from
their
selloff
prior
to
the
fiscal
year
under
review
and
generated
positive
returns.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+12.06%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
Fund’s
primary
benchmark,
the
ICE
BofA
U.S.
High
Yield
Constrained
Index,
which
tracks
the
performance
of
U.S.
dollar
denominated
below
investment-grade
corporate
debt
publicly
issued
in
the
U.S.
domestic
market,
posted
a
+10.19%
cumulative
total
return.
1
You
can
find
more
of
the
Fund’s
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
.
Portfolio
Composition
9/30/23
%
of
Total
Net
Assets
Corporate
Bonds
92.2%
Senior
Floating
Rate
Interests
2.7%
Common
Stocks
1.6%
Other
*
0.0%
Short-Term
Investments
&
Other
Net
Assets
3.5%
*
Includes
financial
instruments
determined
to
have
no
value.
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Franklin
High
Income
Fund
4
franklintempleton.com
Annual
Report
Q.
What
were
the
leading
detractors
from
performance?
A.
Our
overweight
exposures
to
the
utility
and
media
non-
cable
industries
detracted
from
performance.
Our
cash
exposure
also
hindered
results.
Thank
you
for
your
continued
participation
in
Franklin
High
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Glenn
I.
Voyles,
CFA
Bryant
Dieffenbacher,
CFA
S.
James
McGiveran
III,
CFA,
CPA,
FRM
Patricia
O’Connor,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
September
30,
2023,
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
9/30/23
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Tenet
Healthcare
Corp.
1.6%
Health
Care
Providers
&
Services,
United
States
CSC
Holdings
LLC
1.4%
Media,
United
States
Mauser
Packaging
Solutions
Holding
Co.
1.4%
Containers
&
Packaging,
United
States
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
1.3%
Diversified
Telecommunication
Services,
United
States
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
1.2%
Oil,
Gas
&
Consumable
Fuels,
United
States
Talen
Energy
Corp.
1.2%
Independent
Power
and
Renewable
Electricity
Producers,
United
States
Royal
Caribbean
Cruises
Ltd.
1.1%
Hotels,
Restaurants
&
Leisure,
United
States
Carnival
Corp.
1.1%
Hotels,
Restaurants
&
Leisure,
United
States
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
1.1%
Oil,
Gas
&
Consumable
Fuels,
United
States
Civitas
Resources,
Inc.
1.0%
Oil,
Gas
&
Consumable
Fuels,
United
States
CFA
®
is
a
trademark
owned
by
CFA
Institute.
FRM
®
is
a
trademark
owned
by
Global
Association
of
Risk
Professionals
(GARP).
Performance
Summary
as
of
September
30,
2023
Franklin
High
Income
Fund
5
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
9/30/23
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
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
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
4,5
1-Year
+12.06%
+7.86%
5-Year
+16.07%
+2.24%
10-Year
+39.46%
+2.99%
Advisor
1-Year
+11.52%
+11.52%
5-Year
+17.27%
+3.24%
10-Year
+42.00%
+3.57%
30-Day
Standardized
Yield
7
Share
Class
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
A
6.00%
7.47%
7.46%
Advisor
6.40%
8.04%
8.03%
See
page
7
for
Performance
Summary
footnotes.
Franklin
High
Income
Fund
Performance
Summary
6
franklintempleton.com
Annual
Report
See
page
7
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
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
(9/30/13–9/30/23)
Class
Advisor
(9/30/13–9/30/23)
Franklin
High
Income
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.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
Fixed
income
secu-
rities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets
.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
01/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
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.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
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
3.75%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
September
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
9/30/23.
7.
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.
8.
Source:
FactSet.
The
ICE
BofA
U.S.
High
Yield
Constrained
Index
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-grade
corporate
debt
publicly
issued
in
the
U.S.
domestic
market.
9.
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
(10/1/22–9/30/23)
Share
Class
Net
Investment
Income
A
$0.1024
A1
$0.1040
C
$0.0952
R
$0.0979
R6
$0.1081
Advisor
$0.1065
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.88%
0.89%
Advisor
0.63%
0.64%
Your
Fund’s
Expenses
Franklin
High
Income
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
183/365
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
4/1/23
Ending
Account
Value
9/30/23
Expenses
Paid
During
Period
4/1/23–9/30/23
1,2
Ending
Account
Value
9/30/23
Expenses
Paid
During
Period
4/1/23–9/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,025.60
$4.24
$1,020.88
$4.23
0.83%
A1
$1,000
$1,025.80
$3.73
$1,021.39
$3.72
0.73%
C
$1,000
$1,016.60
$6.24
$1,018.88
$6.25
1.23%
R
$1,000
$1
,023.30
$5.50
$1,019.63
$5.49
1.08%
R6
$1,000
$1,027.20
$2.47
$1,022.63
$2.47
0.49%
Advisor
$1,000
$1,020.30
$2.96
$1,022.14
$2.97
0.58%
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
Year
Ended
May
31,
2019
b
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
.......
$1.54
$1.69
$1.87
$1.72
$1.80
$1.84
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.10
0.03
0.08
0.09
0.09
0.07
Net
realized
and
unrealized
gains
(losses)
0.08
(0.15)
(0.17)
0.16
(0.07)
(0.03)
Total
from
investment
operations
........
0.18
(0.12)
(0.09)
0.25
0.02
0.04
Less
distributions
from:
Net
investment
income
..............
(0.10)
(0.03)
(0.09)
(0.10)
(0.10)
(0.08)
Net
asset
value,
end
of
year
...........
$1.62
$1.54
$1.69
$1.87
$1.72
$1.80
Total
return
e
.......................
12.06%
(7.03)%
(5.15)%
14.52%
0.88%
2.17%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.86%
0.88%
0.87%
0.86%
0.86%
0.87%
Expenses
net
of
waiver
and
payments
by
affiliates
g
..........................
0.85%
0.87%
0.87%
h
0.85%
0.86%
h
0.86%
Net
investment
income
...............
6.05%
6.02%
4.66%
5.10%
5.19%
5.27%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.........
$713,381
$642,620
$689,210
$553,316
$309,844
$182,551
Portfolio
turnover
rate
................
34.60%
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019
.
c
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.
d
Based
on
average
daily
shares
outstanding.
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.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
.......
$1.56
$1.71
$1.88
$1.73
$1.81
$1.82
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.10
0.03
0.09
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
0.08
(0.15)
(0.17)
0.15
(0.08)
(0.01)
Total
from
investment
operations
........
0.18
(0.12)
(0.08)
0.25
0.02
0.09
Less
distributions
from:
Net
investment
income
..............
(0.10)
(0.03)
(0.09)
(0.10)
(0.10)
(0.10)
Net
asset
value,
end
of
year
...........
$1.64
$1.56
$1.71
$1.88
$1.73
$1.81
Total
return
d
.......................
12.02%
(6.90)%
(4.51)%
14.52%
0.95%
5.35%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.76%
0.78%
0.77%
0.76%
0.76%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.75%
0.77%
0.76%
0.76%
g
0.76%
g
0.76%
Net
investment
income
...............
6.15%
6.12%
4.74%
5.18%
5.29%
5.37%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.........
$1,276,764
$1,311,893
$1,483,888
$1,758,443
$1,759,206
$2,054,455
Portfolio
turnover
rate
................
34.60%
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
.......
$1.58
$1.74
$1.91
$1.76
$1.83
$1.85
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.09
0.03
0.08
0.09
0.09
0.09
Net
realized
and
unrealized
gains
(losses)
0.09
(0.16)
(0.17)
0.15
(0.07)
(0.01)
Total
from
investment
operations
........
0.18
(0.13)
(0.09)
0.24
0.02
0.08
Less
distributions
from:
Net
investment
income
..............
(0.10)
(0.03)
(0.08)
(0.09)
(0.09)
(0.10)
Net
asset
value,
end
of
year
...........
$1.66
$1.58
$1.74
$1.91
$1.76
$1.83
Total
return
d
.......................
11.25%
(7.53)%
(4.93)%
13.69%
0.99%
4.17%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.26%
1.28%
1.26%
1.26%
1.26%
1.27%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.25%
1.27%
1.26%
g
1.26%
g
1.26%
g
1.26%
Net
investment
income
...............
5.64%
5.63%
4.22%
4.68%
4.79%
4.87%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.........
$77,923
$98,923
$119,630
$220,646
$251,930
$304,072
Portfolio
turnover
rate
................
34.60%
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
.......
$1.59
$1.75
$1.92
$1.77
$1.84
$1.86
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.10
0.03
0.08
0.09
0.09
0.09
Net
realized
and
unrealized
gains
(losses)
0.09
(0.16)
(0.17)
0.15
(0.07)
(0.01)
Total
from
investment
operations
........
0.19
(0.13)
(0.09)
0.24
0.02
0.08
Less
distributions
from:
Net
investment
income
..............
(0.10)
(0.03)
(0.08)
(0.09)
(0.09)
(0.10)
Net
asset
value,
end
of
year
...........
$1.68
$1.59
$1.75
$1.92
$1.77
$1.84
Total
return
d
.......................
12.01%
(7.44)%
(4.75)%
13.78%
1.14%
4.31%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.11%
1.13%
1.12%
1.11%
1.11%
1.12%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.10%
1.12%
1.11%
1.11%
g
1.11%
g
1.11%
Net
investment
income
...............
5.80%
5.77%
4.39%
4.83%
4.94%
5.02%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.........
$57,051
$57,909
$64,250
$74,532
$77,148
$101,783
Portfolio
turnover
rate
................
34.60%
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
.......
$1.55
$1.71
$1.88
$1.73
$1.80
$1.82
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.10
0.03
0.09
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
0.09
(0.16)
(0.17)
0.15
(0.07)
(0.01)
Total
from
investment
operations
........
0.19
(0.13)
(0.08)
0.25
0.03
0.09
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.03)
(0.09)
(0.10)
(0.10)
(0.11)
Net
asset
value,
end
of
year
...........
$1.63
$1.55
$1.71
$1.88
$1.73
$1.80
Total
return
d
.......................
12.37%
(7.42)%
(4.24)%
14.82%
1.80%
5.05%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.53%
0.55%
0.55%
0.54%
0.55%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.49%
0.50%
0.51%
0.51%
0.50%
0.50%
Net
investment
income
...............
6.42%
6.39%
5.01%
5.39%
5.55%
5.63%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.........
$115,142
$90,344
$98,282
$88,257
$66,681
$64,681
Portfolio
turnover
rate
................
34.60%
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
.......
$1.56
$1.71
$1.88
$1.73
$1.81
$1.83
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.10
0.03
0.09
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
0.08
(0.15)
(0.17)
0.15
(0.08)
(0.01)
Total
from
investment
operations
........
0.18
(0.12)
(0.08)
0.25
0.02
0.09
Less
distributions
from:
Net
investment
income
..............
(0.11)
(0.03)
(0.09)
(0.10)
(0.10)
(0.11)
Net
asset
value,
end
of
year
...........
$1.63
$1.56
$1.71
$1.88
$1.73
$1.81
Total
return
d
.......................
11.52%
(6.86)%
(4.37)%
14.68%
1.12%
4.92%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.61%
0.63%
0.62%
0.61%
0.61%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.60%
0.62%
0.61%
0.61%
g
0.61%
g
0.61%
Net
investment
income
...............
6.31%
6.32%
4.89%
5.34%
5.44%
5.52%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.........
$295,183
$257,358
$353,786
$341,889
$299,110
$320,010
Portfolio
turnover
rate
................
34.60%
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Schedule
of
Investments,
September
30,
2023
Franklin
High
Income
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
1.6%
Independent
Power
and
Renewable
Electricity
Producers
1.2%
a
Talen
Energy
Corp.
....................................
United
States
236,906
$
12,532,327
a
Talen
Energy
Corp.
....................................
United
States
319,744
16,914,458
29,446,785
Metals
&
Mining
0.0%
†
Alpha
Metallurgical
Resources,
Inc.
........................
United
States
4,346
1,128,787
Oil,
Gas
&
Consumable
Fuels
0.4%
a
Amplify
Energy
Corp.
..................................
United
States
8,816
64,798
b
Birch
Permian
Holdings,
Inc.
.............................
United
States
690,410
8,716,426
California
Resources
Corp.
..............................
United
States
1,425
79,814
Chesapeake
Energy
Corp.
..............................
United
States
17,102
1,474,705
10,335,743
Total
Common
Stocks
(Cost
$46,920,975)
......................................
40,911,315
Warrants
Warrants
0.0%
†
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a
California
Resources
Corp.,
10/27/24
......................
United
States
3,278
69,854
a,c
Canvas
Energy,
Inc.,
10/01/24
............................
United
States
13
—
a,c
Canvas
Energy,
Inc.,
10/01/25
............................
United
States
13
—
69,854
Total
Warrants
(Cost
$–)
......................................................
69,854
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
d,e,f,g
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
466,985
10,882
Total
Convertible
Bonds
(Cost
$128,933)
.......................................
10,882
Corporate
Bonds
92.2%
Aerospace
&
Defense
0.3%
g
TransDigm
,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
8/15/28
....
United
States
8,500,000
8,378,778
Automobile
Components
2.5%
g
Adient
Global
Holdings
Ltd.
,
Senior
Note,
144A,
8.25%,
4/15/31
......................
United
States
13,100,000
13,132,069
Senior
Secured
Note,
144A,
7%,
4/15/28
..................
United
States
7,900,000
7,844,486
g
Allison
Transmission,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
1/30/31
...
United
States
5,400,000
4,370,792
g
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
19,500,000
16,144,280
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note,
9.5%,
5/31/25
............................
United
States
9,100,000
9,245,562
Senior
Note,
5%,
7/15/29
.............................
United
States
15,000,000
12,940,140
63,677,329
Automobiles
0.7%
g
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
...........................................
United
Kingdom
22,200,000
19,006,428
Banks
0.6%
f,h
JPMorgan
Chase
&
Co.
,
R
,
Junior
Sub.
Bond
,
FRN
,
8.934
%
,
(
3-month
SOFR
+
3.562
%
),
Perpetual
....................
United
States
15,000,000
15,088,380
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Beverages
0.4%
g
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
11,500,000
$
9,844,920
Building
Products
2.7%
g
Advanced
Drainage
Systems,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/30
...........................................
United
States
6,200,000
5,961,827
g
AmeriTex
HoldCo
Intermediate
LLC
,
Senior
Secured
Note
,
144A,
10.25
%
,
10/15/28
....................................
United
States
8,800,000
8,712,000
g
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....................................
United
States
5,100,000
4,926,198
g
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
...........................................
United
States
2,000,000
1,518,548
g
Eco
Material
Technologies,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
1/31/27
.....................................
United
States
10,500,000
10,022,140
g
Emerald
Debt
Merger
Sub
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
....................................
United
States
20,500,000
19,760,456
g
JELD-WEN,
Inc.
,
Senior
Bond,
144A,
4.875%,
12/15/27
....................
United
States
2,000,000
1,766,920
Senior
Note,
144A,
4.625%,
12/15/25
....................
United
States
3,804,000
3,656,671
g
Standard
Industries,
Inc.
,
Senior
Bond,
144A,
4.75%,
1/15/28
......................
United
States
5,800,000
5,238,844
Senior
Bond,
144A,
4.375%,
7/15/30
.....................
United
States
6,800,000
5,638,859
67,202,463
Capital
Markets
0.7%
g
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/15/29
......................................
United
States
8,700,000
7,486,869
UBS
Group
AG
,
Senior
Note
,
4.55
%
,
4/17/26
................
Switzerland
9,900,000
9,510,488
16,997,357
Chemicals
3.4%
d,g
Anagram
International,
Inc.
/
Anagram
Holdings
LLC
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
..............................
United
States
1,891,272
1,299,199
g
ASP
Unifrax
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
9/30/28
...........................................
United
States
5,000,000
3,568,550
g
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
Mexico
4,100,000
2,469,135
Celanese
US
Holdings
LLC
,
Senior
Note
,
6.33
%
,
7/15/29
.......
United
States
14,000,000
13,734,665
g
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........................................
Switzerland
12,700,000
10,505,948
g
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
5,400,000
4,665,853
g
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
19,500,000
18,000,761
g
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
9.25
%
,
11/01/26
.....
United
States
4,800,000
3,510,000
g
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
..
United
States
19,000,000
19,950,000
g
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
313,000
303,938
g
Vibrantz
Technologies,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
.....
United
States
11,800,000
9,407,807
87,415,856
Commercial
Services
&
Supplies
1.1%
g
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
...........
United
States
15,300,000
12,909,943
g
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
16,100,000
14,121,268
27,031,211
Communications
Equipment
0.6%
g
CommScope
Technologies
LLC
,
Senior
Bond
,
144A,
6
%
,
6/15/25
.
United
States
1,635,000
1,558,577
g
CommScope
,
Inc.
,
Senior
Note,
144A,
7.125%,
7/01/28
.....................
United
States
11,700,000
7,020,000
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Communications
Equipment
(continued)
g
CommScope,
Inc.,
(continued)
Senior
Secured
Note,
144A,
6%,
3/01/26
..................
United
States
2,500,000
$
2,336,498
g
Viasat
,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
5/30/31
................
United
States
6,100,000
4,036,675
14,951,750
Construction
&
Engineering
0.5%
g
Arcosa
,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
5,400,000
4,718,209
g
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.......
United
States
8,800,000
7,930,902
12,649,111
Construction
Materials
0.1%
g
Knife
River
Corp.
,
Senior
Note
,
144A,
7.75
%
,
5/01/31
..........
United
States
2,800,000
2,809,282
Consumer
Finance
2.4%
g
GGAM
Finance
Ltd.
,
Senior
Note
,
144A,
8
%
,
6/15/28
..........
Ireland
15,400,000
15,385,178
OneMain
Finance
Corp.
,
Senior
Bond,
5.375%,
11/15/29
.........................
United
States
7,600,000
6,374,120
Senior
Note,
6.625%,
1/15/28
..........................
United
States
10,400,000
9,607,884
Senior
Note,
9%,
1/15/29
.............................
United
States
5,000,000
4,988,800
g
PRA
Group,
Inc.
,
Senior
Note,
144A,
8.375%,
2/01/28
.....................
United
States
9,300,000
8,468,812
Senior
Note,
144A,
5%,
10/01/29
.......................
United
States
5,000,000
3,803,348
g
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.........
United
States
15,000,000
13,105,500
61,733,642
Consumer
Staples
Distribution
&
Retail
1.1%
g
Albertsons
Cos.,
Inc.
/
Safeway,
Inc.
/
New
Albertsons
LP
/
Albertsons
LLC
,
Senior
Note
,
144A,
3.5
%
,
3/15/29
...........
United
States
16,800,000
14,338,303
g
US
Foods,
Inc.
,
Senior
Note,
144A,
6.875%,
9/15/28
.....................
United
States
3,400,000
3,397,110
Senior
Note,
144A,
7.25%,
1/15/32
......................
United
States
9,000,000
9,002,160
26,737,573
Containers
&
Packaging
4.5%
g
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
8,100,000
6,770,142
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
11,400,000
11,124,477
g
LABL,
Inc.
,
Senior
Secured
Note
,
144A,
9.5
%
,
11/01/28
........
United
States
6,200,000
6,362,749
g
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note,
144A,
9.25%,
4/15/27
.....................
United
States
30,000,000
26,264,247
Senior
Secured
Note,
144A,
7.875%,
8/15/26
..............
United
States
10,500,000
10,141,750
g
OI
European
Group
BV
,
Senior
Note
,
144A,
4.75
%
,
2/15/30
......
United
States
9,800,000
8,537,717
g
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
6.625%,
5/13/27
.....................
United
States
4,961,000
4,841,995
Senior
Note,
144A,
7.25%,
5/15/31
......................
United
States
9,800,000
9,591,750
g
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
..........
United
States
2,800,000
2,432,485
g
Pactiv
Evergreen
Group
Issuer,
Inc.
/
Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
22,800,000
20,260,080
g
Trivium
Packaging
Finance
BV
,
Senior
Note,
144A,
8.5%,
8/15/27
.......................
Netherlands
2,100,000
1,921,615
Senior
Secured
Note,
144A,
5.5%,
8/15/26
................
Netherlands
5,600,000
5,227,785
113,476,792
Distributors
0.5%
g
Ritchie
Bros
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
3/15/31
......................
Canada
6,500,000
6,605,625
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Distributors
(continued)
g
Ritchie
Bros
Holdings,
Inc.,
(continued)
Senior
Secured
Note,
144A,
6.75%,
3/15/28
...............
Canada
6,300,000
$
6,293,385
12,899,010
Diversified
Consumer
Services
0.5%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
......
United
States
14,300,000
13,027,872
Diversified
REITs
1.5%
g
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
15,900,000
12,324,185
g
Necessity
Retail
REIT,
Inc.
(The)
/
American
Finance
Operating
Partner
LP
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
...............
United
States
14,500,000
11,030,585
g
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note,
144A,
5.75%,
2/01/27
......................
United
States
2,500,000
2,422,644
Senior
Note,
144A,
3.75%,
2/15/27
......................
United
States
8,000,000
7,266,387
Senior
Note,
144A,
3.875%,
2/15/29
.....................
United
States
7,000,000
6,056,249
39,100,050
Diversified
Telecommunication
Services
3.4%
g
Altice
France
Holding
SA
,
Senior
Note,
144A,
6%,
2/15/28
........................
Luxembourg
8,100,000
4,017,121
Senior
Secured
Note,
144A,
10.5%,
5/15/27
...............
Luxembourg
22,400,000
14,001,483
g
Altice
France
SA
,
Senior
Secured
Note
,
144A,
5.5
%
,
1/15/28
....
France
7,500,000
5,788,256
g
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.5%,
5/01/26
.......................
United
States
2,400,000
2,320,756
Senior
Bond,
144A,
5%,
2/01/28
........................
United
States
3,000,000
2,727,700
Senior
Bond,
144A,
5.375%,
6/01/29
.....................
United
States
10,900,000
9,790,796
Senior
Bond,
144A,
4.5%,
8/15/30
.......................
United
States
10,500,000
8,632,240
Senior
Bond,
144A,
4.25%,
2/01/31
......................
United
States
3,400,000
2,709,846
Senior
Note,
144A,
6.375%,
9/01/29
.....................
United
States
8,000,000
7,467,763
g
Iliad
Holding
SASU
,
Senior
Secured
Note,
144A,
6.5%,
10/15/26
...............
France
5,200,000
4,891,084
Senior
Secured
Note,
144A,
7%,
10/15/28
.................
France
10,400,000
9,478,001
g
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
......................................
United
Kingdom
18,500,000
15,306,336
87,131,382
Electric
Utilities
1.0%
g
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
5.625%,
2/15/27
.....................
United
States
21,300,000
20,219,074
Senior
Secured
Note,
144A,
3.7%,
1/30/27
................
United
States
5,700,000
5,203,492
25,422,566
Electrical
Equipment
1.6%
g
Regal
Rexnord
Corp.
,
Senior
Bond,
144A,
6.4%,
4/15/33
.......................
United
States
7,900,000
7,617,591
Senior
Note,
144A,
6.3%,
2/15/30
.......................
United
States
9,700,000
9,377,404
g
Sensata
Technologies
BV
,
Senior
Note
,
144A,
4
%
,
4/15/29
......
United
States
11,000,000
9,482,472
g
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
16,400,000
14,430,538
40,908,005
Electronic
Equipment,
Instruments
&
Components
0.3%
g
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
........
United
States
9,300,000
7,722,194
Energy
Equipment
&
Services
3.6%
g
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.
,
d
Secured
Note,
144A,
PIK,
10%,
4/01/26
..................
United
States
17,833,800
15,856,637
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Energy
Equipment
&
Services
(continued)
g
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.,
(continued)
Senior
Secured
Note,
144A,
7.5%,
4/01/25
................
United
States
7,501,000
$
7,303,274
g
Enerflex
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
10/15/27
........
Canada
15,100,000
14,927,029
g
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
9,900,000
9,577,260
g
Nabors
Industries,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
5/15/27
.....
United
States
6,200,000
6,003,440
g,i
Oceaneering
International,
Inc.
,
Senior
Note
,
144A,
6
%
,
2/01/28
..
United
States
6,000,000
5,658,540
g
Transocean
Titan
Financing
Ltd.
,
Senior
Secured
Note
,
144A,
8.375
%
,
2/01/28
.....................................
United
States
1,800,000
1,833,021
g
Transocean,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
2/15/30
....
United
States
15,010,000
15,361,084
g
Weatherford
International
Ltd.
,
Senior
Note,
144A,
8.625%,
4/30/30
.....................
United
States
11,000,000
11,093,940
Senior
Secured
Note,
144A,
6.5%,
9/15/28
................
United
States
3,600,000
3,603,906
91,218,131
Entertainment
0.6%
g
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
8.125
%
,
5/01/29
...........................................
France
15,300,000
15,196,342
Financial
Services
1.8%
g
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6
%
,
8/15/26
..
United
States
17,600,000
15,588,596
MGIC
Investment
Corp.
,
Senior
Note
,
5.25
%
,
8/15/28
..........
United
States
5,000,000
4,661,276
g
Oxford
Finance
LLC
/
Oxford
Finance
Co-Issuer
II,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
2/01/27
................................
United
States
3,400,000
3,163,548
Radian
Group,
Inc.
,
Senior
Note
,
6.625
%
,
3/15/25
.............
United
States
14,900,000
14,825,649
g
United
Wholesale
Mortgage
LLC
,
Senior
Note
,
144A,
5.5
%
,
11/15/25
United
States
7,100,000
6,761,065
45,000,134
Food
Products
1.3%
B&G
Foods,
Inc.
,
Senior
Note,
5.25%,
4/01/25
...........................
United
States
9,100,000
8,938,818
Senior
Note,
5.25%,
9/15/27
...........................
United
States
4,800,000
4,024,852
i
Pilgrim's
Pride
Corp.
,
Senior
Bond
,
6.875
%
,
5/15/34
...........
United
States
19,600,000
19,258,515
32,222,185
Ground
Transportation
1.2%
g
Ashtead
Capital,
Inc.
,
Senior
Note
,
144A,
1.5
%
,
8/12/26
........
United
Kingdom
1,800,000
1,584,959
g
EquipmentShare.com,
Inc.
,
Secured
Note
,
144A,
9
%
,
5/15/28
....
United
States
15,400,000
14,822,500
g
First
Student
Bidco
,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
..............................
United
States
14,700,000
12,455,972
g
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
600,000
537,660
29,401,091
Health
Care
Equipment
&
Supplies
1.3%
g
Bausch
&
Lomb
Escrow
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
..........................................
United
States
10,000,000
10,042,200
g
Garden
Spinco
Corp.
,
Senior
Note
,
144A,
8.625
%
,
7/20/30
......
United
States
9,000,000
9,403,699
g
Medline
Borrower
LP
,
Senior
Note,
144A,
5.25%,
10/01/29
.....................
United
States
10,300,000
8,914,714
Senior
Secured
Note,
144A,
3.875%,
4/01/29
..............
United
States
6,200,000
5,247,138
33,607,751
Health
Care
Providers
&
Services
5.7%
Centene
Corp.
,
Senior
Bond,
2.5%,
3/01/31
............................
United
States
12,000,000
9,232,663
Senior
Note,
4.25%,
12/15/27
..........................
United
States
12,700,000
11,719,115
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
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)
Health
Care
Providers
&
Services
(continued)
Centene
Corp.,
(continued)
Senior
Note,
4.625%,
12/15/29
.........................
United
States
4,300,000
$
3,877,719
Senior
Note,
2.625%,
8/01/31
..........................
United
States
1,400,000
1,074,028
g
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
6,800,000
3,469,802
Senior
Secured
Note,
144A,
8%,
3/15/26
..................
United
States
5,000,000
4,771,079
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
5,900,000
5,068,098
Senior
Secured
Note,
144A,
8%,
12/15/27
.................
United
States
1,200,000
1,120,404
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
6,000,000
4,851,996
Senior
Secured
Note,
144A,
5.25%,
5/15/30
...............
United
States
6,500,000
4,949,662
g
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
16,700,000
13,733,434
g
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
........
Italy
18,700,000
16,128,750
g
ModivCare
Escrow
Issuer,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
.
United
States
8,500,000
6,113,030
g
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
24,600,000
18,498,339
Tenet
Healthcare
Corp.
,
Secured
Note,
6.25%,
2/01/27
..........................
United
States
14,500,000
14,044,234
Senior
Secured
Note,
4.875%,
1/01/26
...................
United
States
5,000,000
4,795,073
Senior
Secured
Note,
4.25%,
6/01/29
....................
United
States
8,500,000
7,324,304
Senior
Secured
Note,
6.125%,
6/15/30
...................
United
States
14,600,000
13,706,470
144,478,200
Health
Care
REITs
0.8%
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond,
5.25%,
8/01/26
...........................
United
States
11,400,000
9,726,130
Senior
Bond,
3.5%,
3/15/31
............................
United
States
16,200,000
10,136,175
19,862,305
Hotel
&
Resort
REITs
0.5%
g
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
Senior
Note,
144A,
7.25%,
7/15/28
......................
United
States
6,000,000
5,900,600
Senior
Note,
144A,
4.5%,
2/15/29
.......................
United
States
6,500,000
5,577,878
11,478,478
Hotels,
Restaurants
&
Leisure
7.8%
g
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4
%
,
10/15/30
.......................................
Canada
8,500,000
7,073,221
c,e,g
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
.
United
States
23,000,000
—
g
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875
%
,
4/30/29
.....................................
Czech
Republic
15,500,000
15,713,125
g
Boyne
USA,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
5/15/29
...........
United
States
6,600,000
5,780,512
g
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note,
144A,
6.25%,
7/01/25
...............
United
States
15,600,000
15,400,207
Senior
Secured
Note,
144A,
7%,
2/15/30
..................
United
States
6,800,000
6,624,028
g
Caesars
Resort
Collection
LLC
/
CRC
Finco
,
Inc.
,
Senior
Secured
Note
,
144A,
5.75
%
,
7/01/25
............................
United
States
7,000,000
6,976,005
g
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
.....................
United
States
7,300,000
7,106,324
Senior
Note,
144A,
5.75%,
3/01/27
......................
United
States
24,000,000
21,746,141
g
Carnival
Holdings
Bermuda
Ltd.
,
Senior
Note
,
144A,
10.375
%
,
5/01/28
...........................................
United
States
10,000,000
10,729,790
g
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.......................
United
States
13,200,000
10,775,098
Las
Vegas
Sands
Corp.
,
Senior
Note
,
3.2
%
,
8/08/24
...........
United
States
5,300,000
5,130,854
g
Motion
Bondco
DAC
,
Senior
Note
,
144A,
6.625
%
,
11/15/27
......
United
Kingdom
4,400,000
4,074,906
g
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
...........
United
States
5,200,000
4,806,896
g
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/15/29
United
States
800,000
661,296
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
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)
Hotels,
Restaurants
&
Leisure
(continued)
g
Premier
Entertainment
Sub
LLC
/
Premier
Entertainment
Finance
Corp.
,
Senior
Bond,
144A,
5.875%,
9/01/31
.....................
United
States
4,700,000
$
3,471,444
Senior
Note,
144A,
5.625%,
9/01/29
.....................
United
States
4,400,000
3,393,258
g
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note,
144A,
5.5%,
8/31/26
.......................
United
States
9,200,000
8,691,841
Senior
Note,
144A,
5.375%,
7/15/27
.....................
United
States
5,800,000
5,373,333
Senior
Note,
144A,
11.625%,
8/15/27
....................
United
States
13,900,000
15,088,770
g
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
........
United
States
9,800,000
8,559,467
g
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
21,500,000
16,194,230
g
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
...........................
United
States
15,000,000
14,256,509
197,627,255
Household
Durables
1.8%
g
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
Senior
Note,
144A,
4.625%,
8/01/29
.....................
United
States
13,000,000
10,984,668
Senior
Note,
144A,
4.625%,
4/01/30
.....................
United
States
8,000,000
6,557,516
g
Dream
Finders
Homes,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
8/15/28
..
United
States
9,000,000
9,069,840
KB
Home
,
Senior
Note
,
7.25
%
,
7/15/30
.....................
United
States
9,000,000
8,852,018
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
................
United
States
12,600,000
10,290,252
45,754,294
Independent
Power
and
Renewable
Electricity
Producers
1.6%
g
Calpine
Corp.
,
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
12,900,000
11,501,423
Senior
Secured
Note,
144A,
4.5%,
2/15/28
................
United
States
12,200,000
11,007,650
g
Clearway
Energy
Operating
LLC
,
Senior
Bond,
144A,
3.75%,
1/15/32
......................
United
States
8,800,000
6,850,844
Senior
Note,
144A,
4.75%,
3/15/28
......................
United
States
7,000,000
6,267,939
Senior
Note,
144A,
3.75%,
2/15/31
......................
United
States
7,000,000
5,530,620
41,158,476
Insurance
0.8%
g
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note,
144A,
6.75%,
10/15/27
.....................
United
States
5,400,000
5,027,706
Senior
Secured
Note,
144A,
6.75%,
4/15/28
...............
United
States
2,500,000
2,415,086
g
Jones
Deslauriers
Insurance
Management,
Inc.
,
Senior
Note
,
144A,
10.5
%
,
12/15/30
.....................................
Canada
12,000,000
12,231,110
19,673,902
IT
Services
1.8%
g
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
8,500,000
7,107,828
g
Cogent
Communications
Group,
Inc.
,
Senior
Note,
144A,
7%,
6/15/27
........................
United
States
4,000,000
3,823,840
Senior
Secured
Note,
144A,
3.5%,
5/01/26
................
United
States
3,900,000
3,606,135
g
Gartner,
Inc.
,
Senior
Bond,
144A,
3.75%,
10/01/30
.....................
United
States
6,000,000
5,041,040
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
9,300,000
8,495,542
Senior
Note,
144A,
3.625%,
6/15/29
.....................
United
States
4,400,000
3,768,546
g
Northwest
Fiber
LLC
/
Northwest
Fiber
Finance
Sub,
Inc.
,
Senior
Note
,
144A,
6
%
,
2/15/28
..............................
United
States
4,500,000
3,688,039
g
Presidio
Holdings,
Inc.
,
Senior
Note,
144A,
8.25%,
2/01/28
......................
United
States
3,700,000
3,540,703
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
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)
IT
Services
(continued)
g
Presidio
Holdings,
Inc.,
(continued)
Senior
Secured
Note,
144A,
4.875%,
2/01/27
..............
United
States
7,500,000
$
6,946,933
46,018,606
Machinery
1.2%
g
Calderys
Financing
LLC
,
Senior
Secured
Note
,
144A,
11.25
%
,
6/01/28
...........................................
France
15,300,000
15,691,022
g
Chart
Industries,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
1/01/30
.
United
States
11,400,000
11,476,722
g
Titan
Acquisition
Ltd.
/
Titan
Co-Borrower
LLC
,
Senior
Note
,
144A,
7.75
%
,
4/15/26
.....................................
Canada
3,500,000
3,434,463
30,602,207
Media
4.4%
g
Clear
Channel
International
BV
,
Senior
Secured
Note
,
144A,
6.625
%
,
8/01/25
.....................................
United
Kingdom
3,000,000
2,968,987
g
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
5,700,000
4,559,553
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
10,700,000
8,197,848
Senior
Secured
Note,
144A,
9%,
9/15/28
..................
United
States
3,500,000
3,469,970
CSC
Holdings
LLC
,
Senior
Bond,
5.25%,
6/01/24
...........................
United
States
21,000,000
20,009,602
g
Senior
Note,
144A,
11.25%,
5/15/28
.....................
United
States
16,700,000
16,658,447
e,g
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Secured
Note,
144A,
5.375%,
8/15/26
....................
United
States
13,300,000
299,250
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
11,300,000
233,063
g
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
10,400,000
9,208,679
DISH
DBS
Corp.
,
Senior
Note,
5.875%,
11/15/24
.........................
United
States
9,700,000
9,044,118
g
Senior
Secured
Note,
144A,
5.75%,
12/01/28
..............
United
States
10,000,000
7,706,250
g
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
.....................................
United
States
3,990,000
3,669,842
g
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
.............
United
States
4,400,000
3,788,664
g
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Note
,
144A,
4.25
%
,
1/15/29
............................
United
States
8,000,000
6,356,720
g
Sirius
XM
Radio,
Inc.
,
Senior
Note
,
144A,
4
%
,
7/15/28
.........
United
States
12,600,000
10,767,873
g
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
..............
United
States
2,110,000
2,058,928
Senior
Secured
Note,
144A,
4.5%,
5/01/29
................
United
States
4,000,000
3,261,234
112,259,028
Metals
&
Mining
1.7%
ATI,
Inc.
,
Senior
Note
,
7.25
%
,
8/15/30
......................
United
States
11,900,000
11,825,268
g
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
16,000,000
13,422,185
g
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...........................................
Australia
9,500,000
7,828,811
g
Novelis
Corp.
,
Senior
Bond,
144A,
4.75%,
1/30/30
......................
United
States
7,700,000
6,674,281
Senior
Bond,
144A,
3.875%,
8/15/31
.....................
United
States
2,200,000
1,759,812
Senior
Note,
144A,
3.25%,
11/15/26
.....................
United
States
1,600,000
1,430,938
42,941,295
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.9%
g
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
................................
United
States
24,900,000
18,806,158
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
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
Corporate
Bonds
(continued)
Mortgage
Real
Estate
Investment
Trusts
(REITs)
(continued)
g
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
5,700,000
$
4,611,843
23,418,001
Oil,
Gas
&
Consumable
Fuels
12.4%
g
Antero
Resources
Corp.
,
Senior
Note,
144A,
7.625%,
2/01/29
.....................
United
States
4,422,000
4,485,306
Senior
Note,
144A,
5.375%,
3/01/30
.....................
United
States
4,300,000
3,964,056
g
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
144A,
8.125
%
,
1/15/27
......................
United
States
7,400,000
7,098,349
Cheniere
Energy
Partners
LP
,
Senior
Note,
4.5%,
10/01/29
...........................
United
States
2,600,000
2,357,143
Senior
Note,
4%,
3/01/31
.............................
United
States
14,300,000
12,240,814
Cheniere
Energy,
Inc.
,
Senior
Secured
Note
,
4.625
%
,
10/15/28
...
United
States
4,800,000
4,417,758
g
Chesapeake
Energy
Corp.
,
Senior
Note,
144A,
5.875%,
2/01/29
.....................
United
States
5,000,000
4,709,310
Senior
Note,
144A,
6.75%,
4/15/29
......................
United
States
13,300,000
13,028,784
g
CITGO
Petroleum
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
1/15/29
...........................................
United
States
11,200,000
11,192,892
g
Civitas
Resources,
Inc.
,
Senior
Note,
144A,
8.375%,
7/01/28
.....................
United
States
12,800,000
13,040,000
Senior
Note,
144A,
8.75%,
7/01/31
......................
United
States
12,800,000
13,090,804
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note,
5.75%,
4/01/25
...........................
United
States
9,900,000
9,748,827
g
Senior
Note,
144A,
6%,
2/01/29
........................
United
States
3,000,000
2,898,870
g
Senior
Note,
144A,
8%,
4/01/29
........................
United
States
2,300,000
2,361,140
g
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
5,100,000
4,783,801
g
DT
Midstream,
Inc.
,
Senior
Bond,
144A,
4.375%,
6/15/31
.....................
United
States
3,900,000
3,283,913
Senior
Note,
144A,
4.125%,
6/15/29
.....................
United
States
5,600,000
4,848,881
g
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
1/30/28
.................................
United
States
27,800,000
26,853,650
EnLink
Midstream
LLC
,
Senior
Bond,
5.375%,
6/01/29
..........................
United
States
2,100,000
1,944,550
g
Senior
Note,
144A,
5.625%,
1/15/28
.....................
United
States
4,400,000
4,164,601
g
Senior
Note,
144A,
6.5%,
9/01/30
.......................
United
States
12,200,000
11,847,320
g
EQM
Midstream
Partners
LP
,
Senior
Note
,
144A,
7.5
%
,
6/01/27
..
United
States
1,900,000
1,905,637
g
Harbour
Energy
plc
,
Senior
Note
,
144A,
5.5
%
,
10/15/26
........
United
Kingdom
14,800,000
13,816,096
g
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
........................
United
States
5,000,000
4,417,769
Senior
Bond,
144A,
6.25%,
4/15/32
......................
United
States
4,300,000
3,827,945
Senior
Note,
144A,
5.75%,
2/01/29
......................
United
States
2,400,000
2,169,777
Senior
Note,
144A,
6%,
4/15/30
........................
United
States
4,000,000
3,611,094
g
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
........
United
States
10,300,000
9,668,095
g
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note
,
144A,
11.5
%
,
2/15/28
.....................
United
States
30,800,000
31,332,070
c,d,e,g
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
...
United
States
18,564,500
—
Occidental
Petroleum
Corp.
,
Senior
Bond,
8.875%,
7/15/30
..........................
United
States
6,000,000
6,751,980
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
5,100,000
5,013,300
g
PBF
Holding
Co.
LLC
/
PBF
Finance
Corp.
,
Senior
Note
,
144A,
7.875
%
,
9/15/30
.....................................
United
States
2,800,000
2,791,516
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
6%,
4/15/27
.............................
United
States
4,800,000
4,657,314
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
Sunoco
LP
/
Sunoco
Finance
Corp.,
(continued)
Senior
Note,
4.5%,
5/15/29
............................
United
States
4,600,000
$
4,042,442
Senior
Note,
4.5%,
4/30/30
............................
United
States
5,000,000
4,336,189
g
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
..............
United
States
4,900,000
4,025,991
Senior
Secured
Note,
144A,
3.875%,
8/15/29
..............
United
States
5,900,000
4,971,123
Senior
Secured
Note,
144A,
6.25%,
1/15/30
...............
United
States
4,100,000
3,915,027
g
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note,
144A,
8.125%,
6/01/28
..............
United
States
12,900,000
12,782,260
Senior
Secured
Note,
144A,
8.375%,
6/01/31
..............
United
States
9,800,000
9,643,613
Vital
Energy,
Inc.
,
Senior
Note,
10.125%,
1/15/28
.........................
United
States
9,000,000
9,183,473
Senior
Note,
9.75%,
10/15/30
..........................
United
States
9,000,000
9,208,783
314,432,263
Paper
&
Forest
Products
0.2%
g
Glatfelter
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
...........
United
States
8,200,000
5,412,000
Passenger
Airlines
1.3%
g
American
Airlines
Inc
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note,
144A,
5.5%,
4/20/26
................
United
States
15,583,333
15,233,530
Senior
Secured
Note,
144A,
5.75%,
4/20/29
...............
United
States
2,000,000
1,861,750
g
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.....................................
United
States
10,200,000
9,697,264
g
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
2,700,000
2,499,621
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
5,500,000
4,733,166
34,025,331
Personal
Care
Products
0.9%
g
BellRing
Brands,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/30
.........
United
States
12,200,000
12,029,009
g
Coty,
Inc./HFC
Prestige
Products,
Inc./HFC
Prestige
International
US
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
7/15/30
...........
United
States
12,200,000
11,925,134
23,954,143
Pharmaceuticals
2.0%
g
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
......
Canada
6,021,000
5,958,762
g
Bausch
Health
Cos.,
Inc.
,
Secured
Note,
144A,
14%,
10/15/30
.....................
United
States
2,114,000
1,258,464
Senior
Secured
Note,
144A,
6.125%,
2/01/27
..............
United
States
3,100,000
1,932,995
Senior
Secured
Note,
144A,
4.875%,
6/01/28
..............
United
States
9,800,000
5,589,638
Senior
Secured
Note,
144A,
11%,
9/30/28
.................
United
States
7,692,000
5,237,867
e,g
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco
,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
7,104,000
506,160
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
4,473,000
324,292
e,g
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
4,700,000
3,346,118
e,g
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
4,273,000
3,050,837
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
4.75%,
5/09/27
...........................
Israel
10,600,000
9,739,100
Senior
Note,
5.125%,
5/09/29
..........................
Israel
900,000
814,612
Senior
Note,
7.875%,
9/15/29
..........................
Israel
6,400,000
6,491,610
Senior
Note,
8.125%,
9/15/31
..........................
Israel
6,400,000
6,629,133
50,879,588
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Real
Estate
Management
&
Development
1.6%
g
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
13,900,000
$
13,131,156
g
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
3.85
%
,
5/15/26
........
United
States
11,000,000
10,002,547
g
Greystar
Real
Estate
Partners
LLC
,
Senior
Secured
Note
,
144A,
7.75
%
,
9/01/30
.....................................
United
States
8,800,000
8,702,599
g
Howard
Hughes
Corp.
(The)
,
Senior
Note,
144A,
5.375%,
8/01/28
.....................
United
States
5,200,000
4,587,882
Senior
Note,
144A,
4.125%,
2/01/29
.....................
United
States
3,700,000
2,963,774
39,387,958
Software
1.1%
g
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
.
United
States
14,600,000
13,494,912
g
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
............
United
States
9,400,000
7,880,611
g
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
6,700,000
5,536,478
26,912,001
Specialized
REITs
0.7%
g
Iron
Mountain,
Inc.
,
Senior
Bond,
144A,
5.625%,
7/15/32
.....................
United
States
6,400,000
5,532,237
Senior
Note,
144A,
7%,
2/15/29
........................
United
States
12,600,000
12,334,685
17,866,922
Specialty
Retail
1.6%
g
Evergreen
Acqco
1
LP
/
TVI,
Inc.
,
Senior
Secured
Note
,
144A,
9.75
%
,
4/26/28
.....................................
United
States
14,310,000
14,748,244
g
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
..........
United
States
12,800,000
9,487,763
g
Michaels
Cos.,
Inc.
(The)
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
15,600,000
10,206,017
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
4,200,000
3,359,097
e,h
Party
City
Holdings,
Inc.
,
Senior
Secured
Note
,
FRN
,
10.27
%
,
(
6-month
USD
LIBOR
+
5
%
),
7/15/25
.....................
United
States
1,851,810
249,995
g
Victoria's
Secret
&
Co.
,
Senior
Note
,
144A,
4.625
%
,
7/15/29
.....
United
States
2,800,000
2,033,306
40,084,422
Textiles,
Apparel
&
Luxury
Goods
0.3%
g,j
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
............
United
States
8,600,000
8,206,727
Trading
Companies
&
Distributors
0.6%
g
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
10,900,000
9,319,653
g
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
6/15/28
....
United
States
4,600,000
4,626,872
13,946,525
Wireless
Telecommunication
Services
0.3%
T-Mobile
USA,
Inc.
,
Senior
Note
,
2.625
%
,
2/15/29
.............
United
States
9,200,000
7,802,962
Total
Corporate
Bonds
(Cost
$2,655,652,884)
...................................
2,338,040,474
k
Senior
Floating
Rate
Interests
2.7%
l
Chemicals
1.1%
Hexion
Holdings
Corp.
,
First
Lien,
Initial
CME
Term
Loan,
10.033%,
(3-month
SOFR
+
4.5%),
3/15/29
......................................
United
States
8,613,000
8,209,825
Second
Lien,
Initial
CME
Term
Loan,
12.856%,
(1-month
SOFR
+
7.438%),
3/15/30
....................................
United
States
9,279,070
7,643,634
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
k
Senior
Floating
Rate
Interests
(continued)
l
Chemicals
(continued)
PMHC
II,
Inc.
,
Initial
CME
Term
Loan,
B
,
9.698
%
,
(
3-month
SOFR
+
4.25
%
),
4/23/29
.....................................
United
States
12,969,000
$
12,274,835
28,128,294
a
a
a
a
a
a
Health
Care
Technology
0.5%
l
athenahealth
Group,
Inc.
,
Initial
CME
Term
Loan
,
8.568
%
,
(
1-month
SOFR
+
3.25
%
),
2/15/29
..............................
United
States
11,532,491
11,348,721
Hotels,
Restaurants
&
Leisure
0.5%
l
Fertitta
Entertainment
LLC
,
Initial
CME
Term
Loan,
B
,
9.316
%
,
(
1-month
SOFR
+
4
%
),
1/27/29
.........................
United
States
12,903,500
12,795,304
l
Media
0.2%
Clear
Channel
Outdoor
Holdings,
Inc.
,
Term
Loan,
B
,
9.13
%
,
(
1-month
SOFR
+
3.5%;
3-month
SOFR
+
3.5%
),
8/21/26
.....
United
States
2,931,472
2,853,905
e
Diamond
Sports
Group
LLC
,
First
Lien,
CME
Term
Loan
,
12.775
%
,
(
3-month
SOFR
+
8
%
),
5/25/26
.........................
United
States
2,644,257
1,375,014
4,228,919
a
a
a
a
a
a
Software
0.4%
l
McAfee
Corp.
,
CME
Term
Loan,
B1
,
9.18
%
,
(
1-month
SOFR
+
3.75
%
),
3/01/29
.....................................
United
States
10,270,000
10,048,527
Total
Senior
Floating
Rate
Interests
(Cost
$70,378,706)
..........................
66,549,765
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a,c
Alpha
Natural
Resources,
Inc.,
Escrow
Account
...............
United
States
25,000,000
—
a
Chesapeake
Energy
Corp.,
Escrow
Account
.................
United
States
13,700,000
308,250
Total
Escrows
and
Litigation
Trusts
(Cost
$450,960)
.............................
308,250
Total
Long
Term
Investments
(Cost
$2,773,532,458)
.............................
2,445,890,540
a
Short
Term
Investments
1.9%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
1.9%
m,n
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.019%
....
United
States
49,084,957
49,084,957
Total
Money
Market
Funds
(Cost
$49,084,957)
..................................
49,084,957
Total
Short
Term
Investments
(Cost
$49,084,957
)
................................
49,084,957
a
Total
Investments
(Cost
$2,822,617,415)
98.4%
..................................
$2,494,975,497
Other
Assets,
less
Liabilities
1.6%
.............................................
40,467,860
Net
Assets
100.0%
...........................................................
$2,535,443,357
a
a
a
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
See
Abbreviations
on
page
43
.
*
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
8
regarding
holdings
of
5%
voting
securities.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
d
Income
may
be
received
in
additional
securities
and/or
cash.
e
See
Note
7
regarding
credit
risk
and
defaulted
securities.
f
Perpetual
security
with
no
stated
maturity
date.
g
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
September
30,
2023,
the
aggregate
value
of
these
securities
was
$1,935,406,327,
representing
76.3%
of
net
assets.
h
The
coupon
rate
shown
represents
the
rate
at
period
end.
i
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
j
A
portion
or
all
of
the
security
is
on
loan
at
September
30,
2023.
See
Note
1(d).
k
See
Note
1(e)
regarding
senior
floating
rate
interests.
l
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
m
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
n
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
September
30,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
Franklin
High
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,766,725,357
Cost
-
Controlled
affiliates
(Note
8)
............................................................
6,807,101
Cost
-
Non-controlled
affiliates
(Note
3f)
........................................................
49,084,957
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$2,890,486)
..................................
$2,437,174,114
Value
-
Controlled
affiliates
(Note
8)
...........................................................
8,716,426
Value
-
Non-controlled
affiliates
(Note
3f)
........................................................
49,084,957
Cash
....................................................................................
1,186,031
Receivables:
Investment
securities
sold
...................................................................
32,395,539
Capital
shares
sold
........................................................................
1,029,751
Dividends
and
interest
.....................................................................
44,586,724
Total
assets
..........................................................................
2,574,173,542
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
33,675,760
Capital
shares
redeemed
...................................................................
2,146,963
Management
fees
.........................................................................
985,104
Distribution
fees
..........................................................................
373,435
Transfer
agent
fees
........................................................................
567,689
Trustees'
fees
and
expenses
.................................................................
412
Accrued
expenses
and
other
liabilities
...........................................................
980,822
Total
liabilities
.........................................................................
38,730,185
Net
assets,
at
value
.................................................................
$2,535,443,357
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,698,654,956
Total
distributable
earnings
(losses)
.............................................................
(1,163,211,599)
Net
assets,
at
value
.................................................................
$2,535,443,357
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
September
30,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
Franklin
High
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$713,380,769
Shares
outstanding
........................................................................
441,148,066
Net
asset
value
per
share
a
..................................................................
$1.62
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$1.68
Class
A1:
Net
assets,
at
value
.......................................................................
$1,276,763,809
Shares
outstanding
........................................................................
780,672,453
Net
asset
value
per
share
a
..................................................................
$1.64
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$1.70
Class
C:
Net
assets,
at
value
.......................................................................
$77,922,654
Shares
outstanding
........................................................................
46,858,158
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$1.66
Class
R:
Net
assets,
at
value
.......................................................................
$57,050,704
Shares
outstanding
........................................................................
34,024,109
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.68
Class
R6:
Net
assets,
at
value
.......................................................................
$115,142,272
Shares
outstanding
........................................................................
70,804,484
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.63
Advisor
Class:
Net
assets,
at
value
.......................................................................
$295,183,149
Shares
outstanding
........................................................................
180,591,977
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.63
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
September
30,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Franklin
High
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$109,889
Controlled
affiliates
(Note
8)
.................................................................
5,385,198
Non-controlled
affiliates
(Note
3f)
.............................................................
3,544,651
Interest:
Unaffiliated
issuers
........................................................................
167,336,059
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
47,658
Non-controlled
affiliates
(Note
3
f
)
.............................................................
82,423
Total
investment
income
...................................................................
176,505,878
Expenses:
Management
fees
(Note
3
a
)
...................................................................
11,751,690
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
1,730,280
    Class
A1
...............................................................................
1,987,816
    Class
C
................................................................................
565,598
    Class
R
................................................................................
293,796
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
910,659
    Class
A1
...............................................................................
1,745,810
    Class
C
................................................................................
114,799
    Class
R
................................................................................
77,397
    Class
R6
...............................................................................
58,059
    Advisor
Class
............................................................................
379,270
Custodian
fees
(Note
4
)
......................................................................
7,471
Reports
to
shareholders
fees
..................................................................
99,233
Registration
and
filing
fees
....................................................................
211,599
Professional
fees
...........................................................................
89,376
Trustees'
fees
and
expenses
..................................................................
31,811
Other
....................................................................................
62,220
Total
expenses
.........................................................................
20,116,884
Expense
reductions
(Note
4
)
...............................................................
(9,557)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(356,230)
Net
expenses
.........................................................................
19,751,097
Net
investment
income
................................................................
156,754,781
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(88,757,297)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
220,405,008
Controlled
affiliates
(Note
8)
................................................................
(1,605,203)
Unfunded
loan
commitments
.................................................................
(192,703)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
218,607,102
Net
realized
and
unrealized
gain
(loss)
............................................................
129,849,805
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$286,604,586
Franklin
High
Income
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
Franklin
High
Income
Fund
Year
Ended
September
30,
2023
Year
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
..............................
$156,754,781
$53,454,211
$141,887,283
Net
realized
gain
(loss)
..............................
(88,757,297)
(20,986,843)
5,354,464
Net
change
in
unrealized
appreciation
(depreciation)
........
218,607,102
(230,770,311)
(281,870,267)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...................................
286,604,586
(198,302,943)
(134,628,520)
Distributions
to
shareholders:
Class
A
..........................................
(43,793,651)
(13,261,109)
(33,006,563)
Class
A1
.........................................
(83,818,560)
(27,993,501)
(80,385,925)
Class
C
..........................................
(4,908,488)
(1,931,850)
(6,601,409)
Class
R
..........................................
(3,415,674)
(1,119,263)
(3,110,688)
Class
R6
.........................................
(7,037,744)
(1,976,651)
(5,072,921)
Advisor
Class
.....................................
(18,731,050)
(5,677,999)
(16,855,191)
Total
distributions
to
shareholders
.......................
(161,705,167)
(51,960,373)
(145,032,697)
Capital
share
transactions:
(Note
2
)
Class
A
..........................................
38,806,961
17,572,211
205,233,436
Class
A1
.........................................
(102,183,735)
(38,912,059)
(123,808,795)
Class
C
..........................................
(25,867,345)
(10,462,896)
(88,405,043)
Class
R
..........................................
(3,916,072)
(529,081)
(3,898,286)
Class
R6
.........................................
20,255,453
1,097,161
19,909,942
Advisor
Class
.....................................
24,401,685
(68,500,066)
42,592,559
Total
capital
share
transactions
.........................
(48,503,053)
(99,734,730)
51,623,813
Net
increase
(decrease)
in
net
assets
................
76,396,366
(349,998,046)
(228,037,404)
Net
assets:
Beginning
of
year
....................................
2,459,046,991
2,809,045,037
3,037,082,441
End
of
year
........................................
$2,535,443,357
$2,459,046,991
$2,809,045,037
a
For
the
period
June
1,
2022
to
September
30,
2022.
Franklin
High
Income
Trust
Notes
to
Financial
Statements
Franklin
High
Income
Fund
32
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
High
Income
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
one
fund, Franklin
High
Income
Fund
(Fund).
The
Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Fund
offers
six
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Subsequent
to
May
31,
2022,
the
Fund’s
fiscal
year
end
changed
to
September
30.
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 Fund's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
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
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.
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,
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
Franklin
High
Income
Trust
Notes
to
Financial
Statements
33
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
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
September
30,
2023,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
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.
Securities
Purchased
on
a
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
d.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
34
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Fund.
Additionally,
at
September
30,
2023,
the
Fund
held
$2,967,545
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Fund's
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-cash
collateral
is
excluded
from
the
Statement
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
e.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank,
or
the
London
Interbank
Offered
Rate
(LIBOR), or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
f.
Income
and
Deferred
Taxes
It
is the
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and 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
September
30,
2023,
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. 
g.
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.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-
dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Securities
Lending
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
35
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
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.
h.
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.
i.
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.
2.
Shares
of
Beneficial
Interest
At
September
30,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Year
Ended
September
30,
2023
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
164,259,008
$266,498,198
Shares
issued
in
reinvestment
of
distributions
..........
25,369,529
40,986,737
Shares
redeemed
...............................
(165,727,347)
(268,677,974)
Net
increase
(decrease)
..........................
23,901,190
$38,806,961
Class
A1
Shares:
Shares
sold
...................................
31,275,796
$51,183,105
Shares
issued
in
reinvestment
of
distributions
..........
45,166,418
73,731,606
Shares
redeemed
...............................
(138,736,468)
(227,098,446)
Net
increase
(decrease)
..........................
(62,294,254)
$(102,183,735)
Class
C
Shares:
Shares
sold
...................................
8,237,311
$13,715,527
Shares
issued
in
reinvestment
of
distributions
..........
2,765,299
4,586,429
Shares
redeemed
a
..............................
(26,737,253)
(44,169,301)
Net
increase
(decrease)
..........................
(15,734,643)
$(25,867,345)
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
36
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
Year
Ended
September
30,
2023
Shares
Amount
Class
R
Shares:
Shares
sold
...................................
5,971,275
$10,046,457
Shares
issued
in
reinvestment
of
distributions
..........
2,034,038
3,401,699
Shares
redeemed
...............................
(10,333,832)
(17,364,228)
Net
increase
(decrease)
..........................
(2,328,519)
$(3,916,072)
Class
R6
Shares:
Shares
sold
...................................
54,327,226
$88,684,219
Shares
issued
in
reinvestment
of
distributions
..........
4,118,456
6,697,631
Shares
redeemed
...............................
(45,938,906)
(75,126,397)
Net
increase
(decrease)
..........................
12,506,776
$20,255,453
Advisor
Class
Shares:
Shares
sold
...................................
117,682,569
$192,591,222
Shares
issued
in
reinvestment
of
distributions
..........
10,742,738
17,526,512
Shares
redeemed
...............................
(113,307,304)
(185,716,049)
Net
increase
(decrease)
..........................
15,118,003
$24,401,685
Year
Ended
September
30,
2022
b
Year
Ended
May
31,
2022
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
46,670,596
$76,460,014
200,948,612
$370,941,307
Shares
issued
in
reinvestment
of
distributions
..........
7,775,977
12,438,206
17,092,553
30,970,243
Shares
redeemed
...............................
(43,869,515)
(71,326,009)
(107,938,951)
(196,678,114)
Net
increase
(decrease)
..........................
10,577,058
$17,572,211
110,102,214
$205,233,436
Class
A1
Shares:
Shares
sold
...................................
7,608,875
$12,533,587
39,484,317
$72,976,305
Shares
issued
in
reinvestment
of
distributions
..........
15,218,988
24,649,562
38,385,436
70,510,008
Shares
redeemed
...............................
(46,472,390)
(76,095,208)
(144,890,033)
(267,295,108)
Net
increase
(decrease)
..........................
(23,644,527)
$(38,912,059)
(67,020,280)
$(123,808,795)
Class
C
Shares:
Shares
sold
...................................
1,948,654
$3,240,404
12,604,351
$23,778,635
Shares
issued
in
reinvestment
of
distributions
..........
1,110,296
1,821,048
3,304,666
6,182,808
Shares
redeemed
a
..............................
(9,293,865)
(15,524,348)
(62,543,521)
(118,366,486)
Net
increase
(decrease)
..........................
(6,234,915)
$(10,462,896)
(46,634,504)
$(88,405,043)
Class
R
Shares:
Shares
sold
...................................
1,702,263
$2,874,342
5,263,216
$9,879,452
Shares
issued
in
reinvestment
of
distributions
..........
673,624
1,116,413
1,652,660
3,103,115
Shares
redeemed
...............................
(2,701,596)
(4,519,836)
(8,965,664)
(16,880,853)
Net
increase
(decrease)
..........................
(325,709)
$(529,081)
(2,049,788)
$(3,898,286)
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
37
franklintempleton.com
Annual
Report
Franklin
High
Income
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
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly, to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
Year
Ended
September
30,
2022
b
Year
Ended
May
31,
2022
Shares
Amount
Shares
Amount
Class
R6
Shares:
Shares
sold
...................................
4,488,274
$7,352,933
20,707,734
$38,283,732
Shares
issued
in
reinvestment
of
distributions
..........
1,207,499
1,943,563
2,724,050
4,966,000
Shares
redeemed
...............................
(5,040,205)
(8,199,335)
(12,826,935)
(23,339,790)
Net
increase
(decrease)
..........................
655,568
$1,097,161
10,604,849
$19,909,942
Advisor
Class
Shares:
Shares
sold
...................................
13,929,184
$22,892,050
118,594,870
$214,891,375
Shares
issued
in
reinvestment
of
distributions
..........
3,272,102
5,293,260
8,487,738
15,593,616
Shares
redeemed
...............................
(58,534,993)
(96,685,376)
(101,961,748)
(187,892,432)
Net
increase
(decrease)
..........................
(41,333,707)
$(68,500,066)
25,120,860
$42,592,559
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
b
For
the
period
June
1,
2022
to
September
30,
2022.
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
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
38
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
For
the
year
ended
September
30,
2023,
the
gross
effective
investment
management
fee
rate
was 0.459%
of
the
Fund’s
average daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
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 and
A1 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
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
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:
d.
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:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
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
September
30,
2023,
the
Fund
paid
transfer
agent
fees
of
$3,285,994,
of
which
$1,295,576
was
retained
by
Investor
Services.
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.15%
Class
C
....................................................................................
0.65%
Class
R
....................................................................................
0.50%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$52,132
CDSC
retained
..............................................................................
$50,347
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
39
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
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
September
30,
2023,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
g.
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
January
31,
2024.
4.
Expense
Offset
Arrangement
The Fund has
previously
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
September
30,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
Effective
July
10,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
September
30,
2023,
the
capital
loss
carryforwards
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
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
High
Income
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.019%
$81,816,490
$872,880,898
$(905,612,431)
$—
$—
$49,084,957
49,084,957
$3,544,651
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.019%
$—
$24,926,000
$(24,926,000)
$—
$—
$—
—
$82,423
Total
Affiliated
Securities
...
$81,816,490
$897,806,898
$(930,538,431)
$—
$—
$49,084,957
$3,627,074
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
................................................................................
$825,279,484
3.
Transactions
with
Affiliates
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
40
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
The
tax
character
of
distributions
paid
during
the
years
ended
September
30,
2023
and
2022,
was
as
follows:
At
September
30,
2023,
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
defaulted
securities
and
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
September
30,
2023,
aggregated
$845,405,805
and
$880,566,645,
respectively. 
7.
Credit Risk
and
Defaulted
Securities
At
September
30,
2023,
the
Fund
had
84.2%
of
its
portfolio
invested
in
high
yield
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
September
30,
2023,
the
aggregate
value
of
these
securities
represents
0.4%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
8.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
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
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
year
ended
September
30,
2023
,
investments
in
“affiliated
companies”
were
as
follows:
2023
2022
Distributions
paid
from:
Ordinary
income
..........................................................
$161,705,167
$51,960,373
Cost
of
investments
..........................................................................
$2,834,926,402
Unrealized
appreciation
........................................................................
$41,455,138
Unrealized
depreciation
........................................................................
(381,406,043)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(339,950,905)
Distributable
earnings:
Undistributed
ordinary
income
...................................................................
$2,018,790
5.
Income
Taxes
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
41
franklintempleton.com
Annual
Report
Franklin
High
Income
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
matures
on
February
2,
2024.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
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
September
30,
2023,
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
September
30,
2023,
in
valuing
the
Fund's assets
carried
at
fair
value,
is
as
follows:
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
Franklin
High
Income
Fund
Controlled
Affiliates
Dividends
Birch
Permian
Holdings,
Inc
.............
$
10,321,629
$
—
$
—
$
—
$
(1,605,203)
$
8,716,426
690,410
$
5,385,198
Total
Affiliated
Securities
(Value
is
0.3%
of
Net
Assets)
..........
$10,321,629
$—
$—
$—
$(1,605,203)
$8,716,426
$5,385,198
8.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
42
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Independent
Power
and
Renewable
Electricity
Producers
..........................
$
16,914,458
$
12,532,327
$
—
$
29,446,785
Metals
&
Mining
.......................
1,128,787
—
—
1,128,787
Oil,
Gas
&
Consumable
Fuels
.............
1,619,317
8,716,426
—
10,335,743
Warrants
:
Oil,
Gas
&
Consumable
Fuels
.............
69,854
—
—
a
69,854
Convertible
Bonds
.......................
—
10,882
—
10,882
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
8,378,778
—
8,378,778
Automobile
Components
.................
—
63,677,329
—
63,677,329
Automobiles
..........................
—
19,006,428
—
19,006,428
Banks
...............................
—
15,088,380
—
15,088,380
Beverages
...........................
—
9,844,920
—
9,844,920
Building
Products
......................
—
67,202,463
—
67,202,463
Capital
Markets
........................
—
16,997,357
—
16,997,357
Chemicals
...........................
—
87,415,856
—
87,415,856
Commercial
Services
&
Supplies
...........
—
27,031,211
—
27,031,211
Communications
Equipment
..............
—
14,951,750
—
14,951,750
Construction
&
Engineering
...............
—
12,649,111
—
12,649,111
Construction
Materials
..................
—
2,809,282
—
2,809,282
Consumer
Finance
.....................
—
61,733,642
—
61,733,642
Consumer
Staples
Distribution
&
Retail
......
—
26,737,573
—
26,737,573
Containers
&
Packaging
.................
—
113,476,792
—
113,476,792
Distributors
...........................
—
12,899,010
—
12,899,010
Diversified
Consumer
Services
............
—
13,027,872
—
13,027,872
Diversified
REITs
......................
—
39,100,050
—
39,100,050
Diversified
Telecommunication
Services
.....
—
87,131,382
—
87,131,382
Electric
Utilities
........................
—
25,422,566
—
25,422,566
Electrical
Equipment
....................
—
40,908,005
—
40,908,005
Electronic
Equipment,
Instruments
&
Components
........................
—
7,722,194
—
7,722,194
Energy
Equipment
&
Services
.............
—
91,218,131
—
91,218,131
Entertainment
.........................
—
15,196,342
—
15,196,342
Financial
Services
......................
—
45,000,134
—
45,000,134
Food
Products
........................
—
32,222,185
—
32,222,185
Ground
Transportation
..................
—
29,401,091
—
29,401,091
Health
Care
Equipment
&
Supplies
.........
—
33,607,751
—
33,607,751
Health
Care
Providers
&
Services
..........
—
144,478,200
—
144,478,200
Health
Care
REITs
.....................
—
19,862,305
—
19,862,305
Hotel
&
Resort
REITs
...................
—
11,478,478
—
11,478,478
Hotels,
Restaurants
&
Leisure
.............
—
197,627,255
—
a
197,627,255
Household
Durables
....................
—
45,754,294
—
45,754,294
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
41,158,476
—
41,158,476
Insurance
............................
—
19,673,902
—
19,673,902
IT
Services
...........................
—
46,018,606
—
46,018,606
Machinery
............................
—
30,602,207
—
30,602,207
Media
...............................
—
112,259,028
—
112,259,028
Metals
&
Mining
.......................
—
42,941,295
—
42,941,295
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
23,418,001
—
23,418,001
Oil,
Gas
&
Consumable
Fuels
.............
—
314,432,263
—
a
314,432,263
Paper
&
Forest
Products
.................
—
5,412,000
—
5,412,000
Passenger
Airlines
.....................
—
34,025,331
—
34,025,331
10.
Fair
Value
Measurements
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
43
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
a
Includes
financial
instruments
determined
to
have
no
value
.
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
year
.
11.
New
Accounting
Pronouncements
In
March
2020,
the 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
and
December
2022,
the
FASB
issued
ASU
No.
2021-01
and
ASU
No.
2022-06,
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
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,
2024.
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.
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Personal
Care
Products
.................
$
—
$
23,954,143
$
—
$
23,954,143
Pharmaceuticals
.......................
—
50,879,588
—
50,879,588
Real
Estate
Management
&
Development
....
—
39,387,958
—
39,387,958
Software
.............................
—
26,912,001
—
26,912,001
Specialized
REITs
......................
—
17,866,922
—
17,866,922
Specialty
Retail
........................
—
40,084,422
—
40,084,422
Textiles,
Apparel
&
Luxury
Goods
..........
—
8,206,727
—
8,206,727
Trading
Companies
&
Distributors
..........
—
13,946,525
—
13,946,525
Wireless
Telecommunication
Services
.......
—
7,802,962
—
7,802,962
Senior
Floating
Rate
Interests
...............
—
66,549,765
—
66,549,765
Escrows
and
Litigation
Trusts
...............
—
308,250
—
a
308,250
Short
Term
Investments
...................
49,084,957
—
—
49,084,957
Total
Investments
in
Securities
...........
$68,817,373
$2,426,158,124
$—
$2,494,975,497
Currency
USD
United
States
Dollar
Selected
Portfolio
CME
Chicago
Mercantile
Exchange
FRN
Floating
Rate
Note
LIBOR
London
Interbank
Offered
Rate
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
10.
Fair
Value
Measurements
(continued)
Franklin
High
Income
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
44
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
High
Income
Trust
and
Shareholders
of
Franklin
High
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
High
Income
Fund
(the
"Fund")
as
of
September
30,
2023,
the
related
statement
of
operations
for
the
year
ended
September
30,
2023,
the
statement
of
changes
in
net
assets
for
the
year
ended
September
30,
2023,
the
period
June
1,
2022
to
September
30,
2022,
and
the
year
ended
May
31,
2022
,
including
the
related
notes,
and
the
financial
highlights
for
the
year
ended
September
30,
2023,
the
period
June
1,
2022
to
September
30,
2022,
and
each
of
the
four
years
ended
May
31,
2019
(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
September
30,
2023,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
the
year
ended
September
30,
2023,
the
period
June
1,
2022
to
September
30,
2022,
and
the
year
ended
May
31,
2022
and
the
financial
highlights
for
the
year
ended
September
30,
2023,
the
period
June
1,
2022
to
September
30,
2022,
and
each
of
the
four
years
ended
May
31,
2019
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
September
30,
2023
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
November
17,
2023
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
High
Income
Trust
45
franklintempleton.com
Annual
Report
Tax
Information
(unaudited)
Franklin
High
Income
Fund
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
period.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
period
ended
September
30,
2023:
Pursuant
to:
Amount
Reported
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$5,495,099
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$5,495,099
Qualified
Net
Interest
Income
(QII)
§871(k)(1)(C)
$137,644,199
Section
163(j)
Interest
Earned
§163(j)
$151,642,137
Franklin
High
Income
Trust
Board
Members
and
Officers
46
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
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
2007
119
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
119
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
119
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
High
Income
Trust
47
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
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2005
and
Lead
Independent
Trustee
since
2019
119
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
119
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
(2019-2020);
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
119
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
High
Income
Trust
48
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
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
110
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)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
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)
and
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
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Gregory
E.
Johnson
2
(1961)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
January
2023
and
Trustee
since
2013
129
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.
3
(1940)
Trustee
Since
1978
119
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.
Ted
P.
Becker
(1951)
Chief
Compliance
Officer
Since
June
2023
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Global
Compliance
of
Franklin
Templeton
(since
2020);
Chief
Compliance
Officer
of
Legg
Mason
Partners
Fund
Advisor,
LLC
(since
2006);
Chief
Compliance
Officer
of
certain
funds
associated
with
Legg
Mason
&
Co.
or
its
affiliates
(since
2006);
formerly
,
Director
of
Global
Compliance
at
Legg
Mason
(2006
to
2020);
Managing
Director
of
Compliance
of
Legg
Mason
&
Co.
(2005
to
2020).
Independent
Board
Members
(continued)
Franklin
High
Income
Trust
49
franklintempleton.com
Annual
Report
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.
1.
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.
2.
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.
3.
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
a
major
shareholder
of
Resources,
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
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
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Sonal
Desai,
Ph.D.
(1963)
Vice
President
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
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
2021
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
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
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.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
June
2023
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.
Interested
Board
Members
and
Officers
(continued)
Franklin
High
Income
Trust
50
franklintempleton.com
Annual
Report
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.
Interested
Board
Members
and
Officers
(continued)
Franklin
High
Income
Trust
Shareholder
Information
51
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
HIGH
INCOME
TRUST
Franklin
High
Income
Fund
(Fund)
March
27,
2023
15(c)
Meeting
At
a
meeting
held
on
March
27,
2023
(March
Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
High
Income
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
the
period
May
1,
2023
through
June
30,
2023
(Stub
Period).
The
Independent
Trustees
noted
that
the
Fund’s
annual
contract
review
was
historically
held
at
the
February
Board
meeting
and
that
management
proposed
to
move
the
contract
review
to
the
May
Board
meeting.
The
Independent
Trustees
further
noted
management’s
explanation
that,
to
effect
this
change,
the
Board
needed
to
consider
the
renewal
of
the
Fund’s
Management
Agreement
prior
to
its
current
April
30,
2023
expiration
date.
The
Independent
Trustees
also
noted
that
management
would
ask
them
to
consider
the
continuation
of
the
Management
Agreement
again
at
the
May
Board
meeting
for
the
12-month
period
beginning
July
1,
2023.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement
for
the
Stub
Period.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
March
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
March
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
March
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors
(Factors).
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
Franklin
High
Income
Trust
Shareholder
Information
52
franklintempleton.com
Annual
Report
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement
and
investments
to
promote
alternative
investing.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2022.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
high
yield
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-
and
five-year
periods
was
above
the
median
of
its
Performance
Universe,
and
for
the
10-year
period
was
only
one
basis
point
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
management’s
representation
regarding
the
income-
related
attributes
of
the
Fund
(e.g.,
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Fund
and
for
Class
A
shares
and
Class
M
shares
for
the
other
funds
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
16
other
high
yield
funds.
The
Board
noted
that
the
Management
Rate
and
actual
total
expense
ratio
for
the
Fund
were
both
in
the
first
quintile
(least
expensive)
and
below
the
medians
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2022,
being
the
most
recent
fiscal
year-
Franklin
High
Income
Trust
Shareholder
Information
53
franklintempleton.com
Annual
Report
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Fund
had
experienced
a
decrease
in
assets
over
the
past
three
years
as
of
the
end
of
the
Fund’s
most
recent
fiscal
quarter
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
the
Stub
Period.
May
24,
2023
15(c)
Meeting
At
a
meeting
held
on
May
24,
2023
(May
Meeting),
the
Board
reviewed
and
approved
the
Management
Agreement
for
an
additional
twelve-month
period
beginning
July
1,
2023.
The
Board
noted
its
review
and
consideration
of
the
information
it
received
in
connection
with
both
the
March
Meeting
and
the
May
Meeting.
In
particular,
the
Board
reviewed
and
considered
information
provided
in
response
to
a
follow-up
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees,
which
included
information
on
Fund
performance
for
the
one-,
three-
and
five-year
periods
ended
March
31,
2023
and
the
other
Factors.
The
Board
determined
that
the
conclusions
it
made
at
the
March
Meeting
had
not
changed.
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
Factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
twelve-month
period
beginning
July
1,
2023.
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
Franklin
High
Income
Trust
Shareholder
Information
54
franklintempleton.com
Annual
Report
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
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
Schedule
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Franklin
High
Income
Trust
Shareholder
Information
55
franklintempleton.com
Annual
Report
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.
1105
A
11/23
©
2023
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
High
Income
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 $51,021 for the fiscal year ended September 30, 2023 and $89,730 for the fiscal year ended September 30, 2022.





(b)      Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.


There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  





(c)      Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.





The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $140,000 for the fiscal year ended September 30, 2023, and $0 for the fiscal year ended September 30, 2022. The services for which these fees were paid included global access to tax platform International Tax View.





(d)      All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended September 30, 2023 and $1,977 for the fiscal year ended September 30, 2022. The services for which these fees were paid included professional fees in connection with SOC 1 Reports.





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 $25,699 for the fiscal year ended September 30, 2023 and $305,142 for the fiscal year ended September 30, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with license for employee development tool ProEdge,
 
professional fees relating to security counts and professional fees in connection with SOC 1 Reports.
(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 $165,699 for the fiscal year ended September 30, 2023 and $307,119 for the fiscal year ended September 30, 2022.




 
(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.

 
(i) N/A
 
 
(j) N/A
 


Item 5. Audit Committee
of Listed Registrants.
       
N/A
 
 
 
Item 6.  Schedule of Investments.                    
N/A
 
 
 
Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.             N/A
 
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                             N/A
 
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.         N/A
 
 
 
Item 10. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a)
Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
 
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.


(b) Changes in Internal Controls
.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                          N/A
 
 
Item 13. Exhibits.
 
 
(a)(1) Code of Ethics
 
 
(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
 
 
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
 
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
FRANKLIN HIGH INCOME TRUST
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  November 30, 2023

 
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  November 30, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  November 30, 2023