UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number

811-07851

Franklin Fund Allocator Series

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

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: 12/31

Date of reporting period: 12/31/22

Item 1. Reports to Stockholders.

a.)

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

b.)

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

Not Applicable

.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

December

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

LifeSmart

TM

Retirement

Income

Fund

2020

Retirement

Target

Fund

2025

Retirement

Target

Fund

2030

Retirement

Target

Fund

2035

Retirement

Target

Fund

2040

Retirement

Target

Fund

2045

Retirement

Target

Fund

2050

Retirement

Target

Fund

2055

Retirement

Target

Fund

2060

Retirement

Target

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

12

months

ended

December

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

first

two

quarters

given

high

trade

deficits

and

declines

in

inventory

and

business

investment,

but

GDP

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

2022’s

first

half

to

the

highest

level

in

decades,

influenced

by

pandemic-

related

supply-chain

disruptions,

strong

consumer

demand,

volatile

energy

and

commodity

prices

worsened

by

Russia’s

invasion

of

Ukraine,

and

broader

price

pressures.

Inflation

remained

high

but

eased

during

the

remainder

of

the

year.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

continued

the

reversal

of

its

quantitative

easing

measures,

increased

its

asset

purchase

tapering

and

ended

purchases

by

March

2022.

The

Federal

Reserve

raised

the

federal

funds

target

rate

by

0.25%

in

March,

0.50%

in

May,

0.75%

in

each

of

June,

July,

September

and

November,

and

0.50%

in

December

2022,

totaling

4.25%,

increasing

the

rate

from

0.25%

to

4.50%

during

the

period.

The

Federal

Reserve

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

rate

increases

to

counter

inflation.

Resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

numerous

countries

and

tighter

monetary

policies

by

many

central

banks,

which

hindered

the

global

economy

and

equities.

Russia’s

invasion

of

Ukraine

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

economic

activity

and

commodity

markets.

New

COVID

lockdowns

imposed

by

China

early

in

the

period

slowed

economic

activity,

and

protests

late

in

the

period

led

China

to

relax

its

“zero-COVID”

policy.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-19.44%

(the

index

decreasing

from

4,766.18

to

3,839.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-19.46%

(the

index

decreasing

from

3,231.727

to

2,602.685).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-13.01%

total

return

(an

index

decrease

from

2,355.14

to

2,048.73),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

As

you

know,

as

rates

rise,

principal

declines.

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2023,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-18.11%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

8,178.02)

and

MSCI

World

Index

-17.73%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,700.992).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

LifeSmart

™

Retirement

Income

Fund

4

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

11

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

17

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

23

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

29

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

35

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

41

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

47

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

53

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

59

Financial

Highlights

and

Schedules

of

Investments

65

Financial

Statements

133

Notes

to

Financial

Statements

150

Report

of

Independent

Registered

Public

Accounting

Firm

181

Tax

Information

183

Board

Members

and

Officers

185

Shareholder

Information

190

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2022.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

Retirement

Income

Fund

This

annual

report

for

Franklin

LifeSmart

TM

Retirement

Income

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

make

monthly

distributions,

while

preserving

the

investors’

capital

over

the

long

term.

The

Fund

employs

an

asset

allocation

strategy,

combined

with

an

income

generation

strategy,

designed

for

investors

in

retirement.

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-11.83%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Under

normal

market

conditions,

40%

of

the

Fund’s

assets

are

allocated

to

equity

investments

and

60%

of

the

Fund’s

assets

are

allocated

to

fixed-income

investments.

The

underlying

funds

and

the

percentage

allocations

to

each

asset

class

may

be

changed

from

time

to

time

by

the

Fund’s

investment

manager

without

the

approval

of

shareholders,

and,

under

normal

market

conditions,

the

percentage

allocations

for

equity

and

fixed-income

funds

may

vary

up

to

10%

from

the

stated

allocations.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Tactical

Dividend

Income

Fund

contributed

to

relative

performance

as

the

relative

stability

of

dividend-paying

stocks

were

sought

amidst

market

volatility.

Templeton

Developing

Markets

Trust

detracted

from

relative

performance

as

emerging

markets

stocks

tended

to

underperform

their

developed

markets

counterparts.

Within

fixed

income,

the

shorter

duration

positioning

of

Western

Asset

Short

Duration

High

Income

Fund

benefited

relative

performance

in

a

rising

interest-rate

environment.

Meanwhile,

Franklin

Investment

Grade

Corporate

ETF’s

longer

duration

exposure

weighed

on

performance

for

the

12-month

period.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

53.3%

Domestic

Equity

24.2%

Index-Linked

Notes

10.0%

Foreign

Equity

7.2%

Foreign

Fixed

Income

4.4%

Short-Term

Investments

&

Other

Net

Assets

0.9%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

70

.

Franklin

LifeSmart™

Retirement

Income

Fund

5

franklintempleton.com

Annual

Report

The

Fund

holds

two

index-linked

notes

for

their

equity

exposure

and

income

generation.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

Retirement

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Western

Asset

Income

Fund,

Class

IS

14.8%

JPMorgan

Equity

Premium

Income

ETF

11.8%

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

11.0%

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

9.4%

Franklin

U.S.

Core

Bond

ETF

8.8%

Franklin

Investment

Grade

Corporate

ETF

5.7%

Credit

Suisse

AG

into

S&P

500

Index,

Senior

Note

5.5%

Franklin

U.S.

Government

Securities

Fund,

Class

R6

5.2%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

5.0%

UBS

AG

into

S&P

500

Index,

Senior

Note

4.5%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

Retirement

Income

Fund

6

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-11.83%

-16.68%

5-Year

+9.96%

+0.78%

10-Year

+36.75%

+2.60%

Advisor

1-Year

-11.62%

-11.62%

5-Year

+11.30%

+2.16%

10-Year

+40.29%

+3.44%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

4.59%

5.77%

5.17%

Advisor

5.16%

6.48%

5.84%

See

page

9

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

9

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

op-

posite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investments

in

equity-linked

notes

(ELNs)

often

have

risks

similar

to

their

underlying

securities,

which

could

include

management,

market,

and,

as

applicable,

foreign

securi-

ties

and

currency

risks.

In

addition,

ELNs

are

subject

to

certain

debt

securities

risks,

such

as

interest

rate

and

credit

risks,

as

well

as

counterparty

and

liquidity

risk.

Investments

in

equity

index-linked

notes

(ILNs)

often

have

risks

similar

to

securities

in

the

underlying

index,

which

could

include

management

risk,

market

risk

and,

as

applicable,

foreign

securities

and

currency

risks.

Investments

in

derivatives

involve

costs

and

can

create

economic

leverage,

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

gains)

that

exceed

the

Fund’s

initial

investment.

The

Fund

is

not

guaranteed

to

achieve

its

investment

goal

of

preserving

capital

while

making

monthly

distributions

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

In

addition,

some

of

its

distributions

may

be

treated

in

part

as

a

return

of

capital

which

will

de-

crease

shareholders’

cost

basis

in

the

Fund

and

affect

the

amount

of

any

capital

gain

or

loss

that

shareholders

realize

when

selling

or

exchanging

Fund

shares.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year,

and

could

vary

substantially

over

time.

It

is

possible

for

the

Fund

to

suffer

substantial

investment

losses

and

simultaneously

experience

additional

asset

reductions

as

a

result

of

its

distributions

to

shareholders

under

the

managed

distribution

policy.

Investors

who

hold

the

Fund

within

a

tax-advantaged

retirement

account

should

consult

their

tax

advisors

to

discuss

tax

consequences

of

receiving

cash

distributions.

In

addition,

use

of

the

Fund

or

election

of

the

option

to

receive

distribution

payments

in

cash

may

be

restricted

in

certain

retirement

plans

by

the

terms

of

the

governing

plan

documents

and/or

the

discretion

of

the

plan

administrator.

Investors

are

strongly

advised

to

consult

with

their

financial

advisor

for

assistance

before

selecting

the

appropriate

fund,

based

on

their

goals

and

personal

situations,

including

time

horizon,

retirement

income

needs,

risk

tolerance

and

tax

bracket.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

and

other

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Net

Asset

Value

Share

Class

12/31/22

12/31/21

Change

A

(FTRAX)

$9.59

$11.50

-$1.91

C

(FRTCX)

$9.47

$11.36

-$1.89

R

(FBRLX)

$9.56

$11.47

-$1.91

R6

(FLMTX)

$9.63

$11.55

-$1.92

Advisor

(FLRDX)

$9.62

$11.55

-$1.93

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.4661

$0.0915

$0.5576

C

$0.3749

$0.0915

$0.4664

R

$0.4373

$0.0915

$0.5288

R6

$0.5021

$0.0915

$0.5936

Advisor

$0.4961

$0.0915

$0.5876

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.57%

1.22%

Advisor

0.32%

0.97%

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

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

4/30/23

without

Board

con-

sent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

change

its

strategic

asset

allocation

40%

to

equity

funds

and

60%

to

fixed

income

funds

aligning

it

to

the

landing

point

of

the

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

of

other

Franklin

LifeSmart

retirement

funds.

Previously,

as

of

5/1/16,

the

Fund

changed

its

name

from

Franklin

LifeSmart

2015

Retirement

Target

Date

Fund

in

connection

with

changes

to

its

strategies

including,

among

other

things,

the

addition

of

an

income

generation

strategy

to

support

the

Fund’s

managed

distribution

policy.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

December

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

12/31/22.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

Franklin

LifeSmart™

Retirement

Income

Fund

10

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,012.90

$1.53

$1,023.69

$1.54

0.30%

C

$1,000

$1,008.20

$5.36

$1,019.87

$5.39

1.06%

R

$1,000

$1,011.40

$2.79

$1,022.43

$2.81

0.55%

R6

$1,000

$1,013.60

$0.00

$1,025.21

$0.00

0.00%

Advisor

$1,000

$1,013.30

$0.25

$1,024.96

$0.25

0.05%

11

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-15.58%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

13

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

47.3%

Domestic

Equity

32.5%

Foreign

Equity

14.3%

Foreign

Fixed

Income

3.8%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.1%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

77

.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

12

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Within

fixed

income,

the

shorter

duration

positioning

of

Franklin

International

Aggregate

Bond

ETF

benefited

relative

performance

in

a

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund’s

longer

duration

exposure

weighed

on

performance

for

the

12-month

period.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2020

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Bond

ETF

17.6%

Franklin

U.S.

Core

Equity

(IU)

Fund

16.3%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

10.1%

Franklin

Growth

Fund,

Class

R6

7.3%

Franklin

International

Core

Equity

(IU)

Fund

6.5%

Franklin

U.S.

Treasury

Bond

ETF

4.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

3.8%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

3.5%

Schwab

U.S.

TIPS

ETF

3.5%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

3.2%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2020

Retirement

Target

Fund

13

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-15.58%

-20.24%

5-Year

+10.16%

+0.82%

Since

Inception

(7/1/13)

+43.69%

+3.27%

Advisor

1-Year

-15.37%

-15.37%

5-Year

+11.60%

+2.22%

Since

Inception

(7/1/13)

+47.39%

+4.17%

See

page

15

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

See

page

15

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index

.

Class

A

(7/1/13–12/31/22)

Advisor

Class

(7/1/13–12/31/22)

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

15

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1575

$0.2354

$0.3929

C

$0.0784

$0.2354

$0.3138

R

$0.1308

$0.2354

$0.3662

R6

$0.1918

$0.2354

$0.4272

Advisor

$0.1859

$0.2354

$0.4213

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.23%

Advisor

0.45%

0.98%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2020

Retirement

Target

Fund

16

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,001.10

$2.43

$1,022.78

$2.45

0.48%

C

$1,000

$997.90

$6.16

$1,019.04

$6.23

1.22%

R

$1,000

$999.80

$3.69

$1,021.51

$3.73

0.73%

R6

$1,000

$1,004.60

$0.94

$1,024.27

$0.95

0.19%

Advisor

$1,000

$1,002.50

$1.12

$1,024.09

$1.13

0.22%

17

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.06%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

19

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

39.0%

Domestic

Equity

38.5%

Foreign

Equity

17.1%

Foreign

Fixed

Income

2.9%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

84

.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

18

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Within

fixed

income,

the

shorter

duration

positioning

of

Franklin

International

Aggregate

Bond

ETF

benefited

relative

performance

in

a

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund’s

longer

duration

exposure

weighed

on

performance

for

the

12-month

period.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2025

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

19.4%

Franklin

U.S.

Core

Bond

ETF

14.6%

Franklin

Growth

Fund,

Class

R6

8.5%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

8.4%

Franklin

International

Core

Equity

(IU)

Fund

7.6%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

4.5%

Franklin

U.S.

Treasury

Bond

ETF

4.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

3.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.9%

Schwab

U.S.

TIPS

ETF

2.9%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2025

Retirement

Target

Fund

19

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/2

2

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-16.06%

-20.70%

5-Year

+13.70%

+1.45%

10-Year

+65.32%

+4.56%

Advisor

1-Year

-15.79%

-15.79%

5-Year

+15.21%

+2.87%

10-Year

+69.92%

+5.44%

See

page

21

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

20

franklintempleton.com

Annual

Report

See

page

21

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

21

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1429

$0.2881

$0.4310

C

$0.0682

$0.2881

$0.3563

R

$0.1124

$0.2881

$0.4005

R6

$0.1819

$0.2881

$0.4700

Advisor

$0.1723

$0.2881

$0.4604

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.01%

Advisor

0.45%

0.76%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2025

Retirement

Target

Fund

22

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Refl

ects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,005.90

$2.45

$1,022.76

$2.47

0.48%

C

$1,000

$1,002.70

$6.24

$1,018.97

$6.29

1.24%

R

$1,000

$1,005.40

$3.72

$1,021.50

$3.75

0.74%

R6

$1,000

$1,008.60

$0.66

$1,024.55

$0.66

0.13%

Advisor

$1,000

$1,008.10

$1.18

$1,024.03

$1.19

0.23%

23

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.57%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

25

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

44.6%

Domestic

Fixed

Income

31.0%

Foreign

Equity

19.8%

Foreign

Fixed

Income

2.2%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

91

.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

24

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

International

Aggregate

Bond

ETF

benefited

relative

performance

in

a

rising

interest

rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund’s

longer

duration

exposure

weighed

on

performance

for

the

12-month

period.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2030

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

22.3%

Franklin

U.S.

Core

Bond

ETF

11.6%

Franklin

Growth

Fund,

Class

R6

10.0%

Franklin

International

Core

Equity

(IU)

Fund

9.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

6.7%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

5.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.2%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.3%

Franklin

U.S.

Treasury

Bond

ETF

3.2%

Templeton

Developing

Markets

Trust,

Class

R6

2.3%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2030

Retirement

Target

Fund

25

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-16.57%

-21.18%

5-Year

+16.91%

+2.01%

Since

Inception

(7/1/13)

+63.01%

+4.65%

Advisor

1-Year

-16.34%

-16.34%

5-Year

+18.51%

+3.45%

Since

Inception

(7/1/13)

+67.07%

+5.55%

See

page

27

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

26

franklintempleton.com

Annual

Report

See

page

27

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(7/1/13–12/31/22)

Advisor

Class

(7/1/13–12/31/22)

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

27

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1264

$0.3034

$0.4298

C

$0.0594

$0.3034

$0.3628

R

$0.1035

$0.3034

$0.4069

R6

$0.1586

$0.3034

$0.4620

Advisor

$0.1494

$0.3034

$0.4528

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.18%

Advisor

0.45%

0.93%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2030

Retirement

Target

Fund

28

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,008.60

$2.47

$1,022.75

$2.49

0.49%

C

$1,000

$1,005.60

$6.30

$1,018.92

$6.34

1.25%

R

$1,000

$1,007.20

$3.78

$1,021.44

$3.81

0.75%

R6

$1,000

$1,011.40

$0.79

$1,024.42

$0.79

0.16%

Advisor

$1,000

$1,010.80

$1.23

$1,023.98

$1.24

0.24%

29

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.69%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

31

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

50.2%

Domestic

Fixed

Income

23.2%

Foreign

Equity

22.3%

Foreign

Fixed

Income

1.7%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.6%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

98

.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

30

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Within

fixed

income,

the

shorter

duration

positioning

of

Franklin

International

Aggregate

Bond

ETF

benefited

relative

performance

in

a

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund’s

longer

duration

exposure

weighed

on

performance

for

the

12-month

period.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2035

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.7%

Franklin

Growth

Fund,

Class

R6

11.3%

Franklin

International

Core

Equity

(IU)

Fund

9.8%

Franklin

U.S.

Core

Bond

ETF

8.6%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

6.0%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.8%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.8%

Templeton

Developing

Markets

Trust,

Class

R6

2.7%

Templeton

Foreign

Fund,

Class

R6

2.5%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2035

Retirement

Target

Fund

31

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-16.69%

-21.25%

5-Year

+20.98%

+2.71%

10-Year

+84.71%

+5.73%

Advisor

1-Year

-16.54%

-16.54%

5-Year

+22.45%

+4.13%

10-Year

+89.49%

+6.60%

See

page

33

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

32

franklintempleton.com

Annual

Report

See

page

33

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

33

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individ-

ual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1147

$0.3492

$0.4639

C

$0.0461

$0.3492

$0.3953

R

$0.0920

$0.3492

$0.4412

R6

$0.1457

$0.3492

$0.4949

Advisor

$0.1375

$0.3492

$0.4867

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.06%

Advisor

0.45%

0.81%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2035

Retirement

Target

Fund

34

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

2

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,016.60

$2.51

$1,022.72

$2.52

0.49%

C

$1,000

$1,012.00

$6.34

$1,018.91

$6.36

1.25%

R

$1,000

$1,014.40

$3.78

$1,021.45

$3.80

0.75%

R6

$1,000

$1,018.20

$0.64

$1,024.57

$0.65

0.13%

Advisor

$1,000

$1,016.80

$1.26

$1,023.96

$1.26

0.25%

35

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.06%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

37

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

56.2%

Foreign

Equity

24.9%

Domestic

Fixed

Income

15.9%

Alternative

Strategies

1.0%

Foreign

Fixed

Income

0.6%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

105

.

FranklinLifeSmart™

2040

Retirement

Target

Fund

36

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Meanwhile,

international

developed

market

equities

detracted

from

relative

performance.

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2040

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.9%

Franklin

Growth

Fund,

Class

R6

12.7%

Franklin

International

Core

Equity

(IU)

Fund

11.0%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

9.4%

Franklin

U.S.

Core

Bond

ETF

6.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.4%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.6%

Templeton

Developing

Markets

Trust,

Class

R6

3.0%

Templeton

Foreign

Fund,

Class

R6

2.9%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2040

Retirement

Target

Fund

37

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/2

2

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-17.06%

-21.62%

5-Year

+25.06%

+3.39%

Since

Inception

(7/1/13)

+78.42%

+5.65%

Advisor

1-Year

-16.87%

-16.87%

5-Year

+26.54%

+4.82%

Since

Inception

(7/1/13)

+82.86%

+6.56%

See

page

39

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

38

franklintempleton.com

Annual

Report

See

page

39

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index

.

Class

A

(7/1/13–12/31/22)

Advisor

Class

(7/1/13–12/31/22)

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

39

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1030

$0.3496

$0.4526

C

$0.0206

$0.3496

$0.3702

R

$0.0618

$0.3496

$0.4114

R6

$0.1377

$0.3496

$0.4873

Advisor

$0.1320

$0.3496

$0.4816

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.37%

Advisor

0.45%

1.12%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2040

Retirement

Target

Fund

40

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,021.00

$2.61

$1,022.62

$2.61

0.51%

C

$1,000

$1,017.50

$6.43

$1,018.83

$6.44

1.27%

R

$1,000

$1,019.70

$3.95

$1,021.29

$3.95

0.78%

R6

$1,000

$1,022.40

$1.09

$1,024.13

$1.09

0.21%

Advisor

$1,000

$1,022.20

$1.35

$1,023.87

$1.35

0.26%

41

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.67%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

43

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

61.5%

Foreign

Equity

27.4%

Domestic

Fixed

Income

8.8%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

112

.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

42

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Meanwhile,

international

developed

market

equities

detracted

from

relative

performance.

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

29.0%

Franklin

Growth

Fund,

Class

R6

13.7%

Franklin

International

Core

Equity

(IU)

Fund

12.5%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

8.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.8%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.6%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.2%

Franklin

U.S.

Core

Bond

ETF

4.1%

Templeton

Developing

Markets

Trust,

Class

R6

3.2%

Templeton

Foreign

Fund,

Class

R6

3.1%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2045

Retirement

Target

Fund

43

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/2

2

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-17.67%

-22.18%

5-Year

+26.36%

+3.61%

10-Year

+95.77%

+6.34%

Advisor

1-Year

-17.40%

-17.40%

5-Year

+27.97%

+5.06%

10-Year

+101.04%

+7.23%

See

page

45

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

44

franklintempleton.com

Annual

Report

See

page

45

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index

.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

45

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0821

$0.4132

$0.4953

C

$0.0151

$0.4132

$0.4283

R

$0.0576

$0.4132

$0.4708

R6

$0.1108

$0.4132

$0.5240

Advisor

$0.1059

$0.4132

$0.5191

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.17%

Advisor

0.45%

0.92%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2045

Retirement

Target

Fund

46

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,023.30

$2.60

$1,022.64

$2.60

0.51%

C

$1,000

$1,019.30

$6.42

$1,018.85

$6.42

1.26%

R

$1,000

$1,021.90

$3.89

$1,021.36

$3.89

0.76%

R6

$1,000

$1,025.50

$1.23

$1,023.99

$1.23

0.24%

Advisor

$1,000

$1,025.30

$1.33

$1,023.89

$1.33

0.26%

47

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.52%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

49

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

64.5%

Foreign

Equity

28.8%

Domestic

Fixed

Income

4.3%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

119

.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

48

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Meanwhile,

international

developed

market

equities

detracted

from

relative

performance.

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2050

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

27.0%

Franklin

Growth

Fund,

Class

R6

14.5%

Franklin

International

Core

Equity

(IU)

Fund

12.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

12.6%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.8%

Templeton

Developing

Markets

Trust,

Class

R6

3.4%

Templeton

Foreign

Fund,

Class

R6

3.3%

Franklin

U.S.

Equity

Index

ETF

3.2%

iShares

Core

MSCI

EAFE

ETF

2.4%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2050

Retirement

Target

Fund

49

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-17.52%

-22.06%

5-Year

+27.34%

+3.77%

Since

Inception

(7/1/13)

+84.05%

+6.00%

Advisor

1-Year

-17.30%

-17.30%

5-Year

+28.93%

+5.21%

Since

Inception

(7/1/13)

+88.77%

+6.92%

See

page

51

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

50

franklintempleton.com

Annual

Report

See

page

51

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(7/1/13–12/31/22)

Advisor

Class

(7/1/13–12/31/22)

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

51

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0837

$0.3985

$0.4822

C

$0.0144

$0.3985

$0.4129

R

$0.0565

$0.3985

$0.4550

R6

$0.1205

$0.3985

$0.5190

Advisor

$0.1135

$0.3985

$0.5120

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.54%

Advisor

0.45%

1.29%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2050

Retirement

Target

Fund

52

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,026.80

$2.55

$1,022.69

$2.55

0.50%

C

$1,000

$1,023.00

$6.36

$1,018.92

$6.34

1.25%

R

$1,000

$1,026.20

$3.84

$1,021.41

$3.83

0.75%

R6

$1,000

$1,029.20

$0.86

$1,024.36

$0.86

0.17%

Advisor

$1,000

$1,027.90

$1.34

$1,023.88

$1.34

0.26%

53

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.54%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

55

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

65.0%

Foreign

Equity

28.7%

Domestic

Fixed

Income

3.9%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

126

.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

54

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Meanwhile,

international

developed

market

equities

detracted

from

relative

performance.

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.3%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

15.2%

Franklin

Growth

Fund,

Class

R6

14.8%

Franklin

International

Core

Equity

(IU)

Fund

12.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.2%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.8%

Templeton

Developing

Markets

Trust,

Class

R6

3.5%

Templeton

Foreign

Fund,

Class

R6

3.3%

Franklin

U.S.

Equity

Index

ETF

3.3%

iShares

Core

MSCI

EAFE

ETF

2.2%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2055

Retirement

Target

Fund

55

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-17.54%

-22.08%

5-Year

+27.19%

+3.75%

Since

Inception

(5/1/15)

+47.73%

+4.45%

Advisor

1-Year

-17.30%

-17.30%

5-Year

+28.69%

+5.17%

Since

Inception

(5/1/15)

+50.25%

+5.45%

See

page

57

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

56

franklintempleton.com

Annual

Report

See

page

57

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(5/1/15–12/31/22)

Advisor

Class

(5/1/15–12/31/22)

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

57

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0689

$0.3342

$0.4031

C

$0.0094

$0.3342

$0.3436

R

$0.0486

$0.3342

$0.3828

R6

$0.0941

$0.3342

$0.4283

Advisor

$0.0877

$0.3342

$0.4219

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

2.05%

Advisor

0.45%

1.80%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2055

Retirement

Target

Fund

58

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,027.20

$2.54

$1,022.70

$2.54

0.50%

C

$1,000

$1,022.70

$6.33

$1,018.94

$6.32

1.24%

R

$1,000

$1,025.90

$3.81

$1,021.44

$3.80

0.75%

R6

$1,000

$1,027.40

$0.20

$1,025.01

$0.20

0.04%

Advisor

$1,000

$1,028.40

$1.28

$1,023.94

$1.28

0.25%

59

franklintempleton.com

Annual

Report

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

This

annual

report

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.81%

cumulative

total

return

for

the

12

months

ended

December

31,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

61

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

63.5%

Foreign

Equity

28.1%

Domestic

Fixed

Income

3.9%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

3.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

132

.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

60

franklintempleton.com

Annual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

the

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Large

Cap

Value

Fund

contributed

to

relative

performance

as

its

value

style

bias

performed

better

than

other

style

factors.

Franklin

Growth

Fund,

however,

detracted

on

a

relative

basis

as

the

fund’s

growth

factor

tended

to

be

out

of

favor

with

investors.

Meanwhile,

international

developed

market

equities

detracted

from

relative

performance.

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2060

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

22.6%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

15.9%

Franklin

Growth

Fund,

Class

R6

14.5%

Franklin

International

Core

Equity

(IU)

Fund

12.8%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.7%

Templeton

Developing

Markets

Trust,

Class

R6

3.4%

Templeton

Foreign

Fund,

Class

R6

3.3%

Franklin

U.S.

Equity

Index

ETF

3.2%

Franklin

International

Growth

Fund,

Class

R6

2.0%

Performance

Summary

as

of

December

31,

2022

Franklin

LifeSmart™

2060

Retirement

Target

Fund

61

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

1-Year

-17.81%

-22.36%

Since

Inception

(1/29/21)

-2.59%

-4.21%

Advisor

1-Year

-17.59%

-17.59%

Since

Inception

(1/29/21)

-2.42%

-1.27%

See

page

63

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

62

franklintempleton.com

Annual

Report

See

page

63

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(1/29/21–12/31/22)

Advisor

Class

(1/29/21–12/31/22)

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

63

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

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

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Source:

FactSet.

The

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index,

the

Global

High-Yield

Index

and

the

Euro

Treasury

High

Yield

Index

and

captures

emerging

market

local

currency

debt

not

already

included

in

the

Global

Aggregate

Index.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0650

$0.1838

$0.2488

C

$0.0214

$0.1838

$0.2052

R

$0.0461

$0.1838

$0.2299

R6

$0.0841

$0.1838

$0.2679

Advisor

$0.0804

$0.1838

$0.2642

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

6.35%

Advisor

0.45%

4.65%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2060

Retirement

Target

Fund

64

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period

for

Hypothetical

expenses.

Non-recurring

expenses

are

not

annualized.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,025.80

$2.45

$1,022.79

$2.45

0.48%

C

$1,000

$1,022.20

$6.30

$1,018.97

$6.29

1.24%

R

$1,000

$1,024.30

$3.88

$1,021.37

$3.88

0.76%

R6

$1,000

$1,028.50

$1.36

$1,023.86

$1.36

0.27%

Advisor

$1,000

$1,027.10

$1.37

$1,023.86

$1.36

0.27%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

65

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.50

$11.62

$11.15

$10.35

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.53

0.36

0.39

0.43

0.50

Net

realized

and

unrealized

gains

(losses)

...........

(1.88)

0.25

0.52

0.79

(0.77)

Total

from

investment

operations

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

(1.35)

0.61

0.91

1.22

(0.27)

Less

distributions

from:

Net

investment

income

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

(0.47)

(0.43)

(0.44)

(0.42)

(0.44)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.56)

(0.73)

(0.44)

(0.42)

(0.44)

Net

asset

value,

end

of

year

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

$9.59

$11.50

$11.62

$11.15

$10.35

Total

return

d

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

(11.83)%

5.41%

8.40%

11.93%

(2.48)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.98%

0.95%

0.94%

0.95%

0.90%

Expenses

net

of

waiver

and

payments

by

affiliates

e,f

.....

0.30%

0.30%

0.30%

0.30%

0.30%

Net

investment

income

c

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

5.20%

3.05%

3.56%

3.91%

4.63%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$36,999

$46,058

$40,343

$34,363

$31,461

Portfolio

turnover

rate

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

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.42%

for

the

year

ended

December

31,

2022.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.36

$11.48

$11.01

$10.23

$10.92

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.44

0.25

0.30

0.34

0.42

Net

realized

and

unrealized

gains

(losses)

...........

(1.86)

0.27

0.52

0.78

(0.76)

Total

from

investment

operations

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

(1.42)

0.52

0.82

1.12

(0.34)

Less

distributions

from:

Net

investment

income

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

(0.37)

(0.34)

(0.35)

(0.34)

(0.35)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.46)

(0.64)

(0.35)

(0.34)

(0.35)

Net

asset

value,

end

of

year

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

$9.48

$11.36

$11.48

$11.01

$10.23

Total

return

d

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

(12.53)%

4.56%

7.62%

11.14%

(3.29)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.73%

1.70%

1.69%

1.69%

1.65%

Expenses

net

of

waiver

and

payments

by

affiliates

e,f

.....

1.05%

1.05%

1.05%

1.04%

1.05%

Net

investment

income

c

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

4.29%

2.20%

2.80%

3.17%

3.88%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4,145

$6,803

$9,355

$10,568

$11,796

Portfolio

turnover

rate

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

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.42%

for

the

year

ended

December

31,

2022.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

67

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.47

$11.59

$11.11

$10.31

$11.01

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.50

0.33

0.37

0.40

0.48

Net

realized

and

unrealized

gains

(losses)

...........

(1.88)

0.26

0.52

0.79

(0.77)

Total

from

investment

operations

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

(1.38)

0.59

0.89

1.19

(0.29)

Less

distributions

from:

Net

investment

income

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

(0.44)

(0.41)

(0.41)

(0.39)

(0.41)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.53)

(0.71)

(0.41)

(0.39)

(0.41)

Net

asset

value,

end

of

year

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

$9.56

$11.47

$11.59

$11.11

$10.31

Total

return

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

(12.03)%

5.15%

8.22%

11.69%

(2.67)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.23%

1.19%

1.11%

1.16%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

d

,

e

.....

0.55%

0.54%

0.47%

0.51%

0.51%

Net

investment

income

c

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

4.96%

2.80%

3.39%

3.70%

4.42%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,748

$2,197

$2,108

$2,336

$2,876

Portfolio

turnover

rate

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

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.42%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.55

$11.67

$11.20

$10.40

$11.11

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.55

0.34

0.43

0.47

0.54

Net

realized

and

unrealized

gains

(losses)

...........

(1.87)

0.31

0.52

0.78

(0.78)

Total

from

investment

operations

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

(1.32)

0.65

0.95

1.25

(0.24)

Less

distributions

from:

Net

investment

income

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

(0.50)

(0.47)

(0.48)

(0.45)

(0.47)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.59)

(0.77)

(0.48)

(0.45)

(0.47)

Net

asset

value,

end

of

year

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

$9.64

$11.55

$11.67

$11.20

$10.40

Total

return

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

(11.56)%

5.63%

8.81%

12.20%

(2.16)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.64%

0.57%

0.58%

0.59%

0.54%

Expenses

net

of

waiver

and

payments

by

affiliates

d,e

.....

—%

—%

—%

—%

—%

Net

investment

income

c

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

5.43%

2.88%

3.84%

4.21%

4.93%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$67

$56

$4,092

$2,043

$1,798

Portfolio

turnover

rate

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

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.42%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.55

$11.66

$11.19

$10.39

$11.10

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.56

0.39

0.42

0.46

0.53

Net

realized

and

unrealized

gains

(losses)

...........

(1.89)

0.26

0.52

0.79

(0.77)

Total

from

investment

operations

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

(1.33)

0.65

0.94

1.25

(0.24)

Less

distributions

from:

Net

investment

income

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

(0.50)

(0.46)

(0.47)

(0.45)

(0.47)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.59)

(0.76)

(0.47)

(0.45)

(0.47)

Net

asset

value,

end

of

year

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

$9.63

$11.55

$11.66

$11.19

$10.39

Total

return

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

(11.62)%

5.58%

8.75%

12.16%

(2.21)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.73%

0.70%

0.69%

0.70%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

d,e

.....

0.05%

0.05%

0.05%

0.05%

0.05%

Net

investment

income

c

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

5.45%

3.34%

3.83%

4.16%

4.88%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,414

$2,837

$2,021

$1,875

$1,409

Portfolio

turnover

rate

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

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.42%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

See

Abbreviations

on

page

180

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

89.1%

Domestic

Equity

24.2%

a

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

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

226,059

$

4,254,426

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

113,652

1,352,460

JPMorgan

Equity

Premium

Income

ETF

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

98,575

5,371,352

10,978,238

Domestic

Fixed

Income

53.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

257,775

2,252,957

a

Franklin

Investment

Grade

Corporate

ETF

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

123,629

2,580,137

a

Franklin

U.S.

Core

Bond

ETF

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

188,169

3,983,538

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

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

458,498

2,338,342

Schwab

U.S.

TIPS

ETF

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

25,248

1,307,594

a

Western

Asset

Income

Fund,

Class

IS

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

1,332,686

6,703,412

a

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

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

1,068,800

5,001,984

24,167,964

Foreign

Equity

7.2%

iShares

International

Select

Dividend

ETF

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

68,179

1,851,743

a

Templeton

Developing

Markets

Trust,

Class

R6

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

26,559

434,775

a

Templeton

Foreign

Fund,

Class

R6

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

147,838

993,468

3,279,986

Foreign

Fixed

Income

4.4%

a

Franklin

High

Yield

Corporate

ETF

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

90,705

2,000,045

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$45,924,703)

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

40,426,233

Units

a

a

a

a

b

Index-Linked

Notes

10.0%

Capital

Markets

10.0%

c,d,e

Credit

Suisse

AG

into

S&P

500

Index,

Senior

Note,

144A,

27.356%,

3/04/24

.......

812

2,502,677

c,d,e

UBS

AG

into

S&P

500

Index,

Senior

Note,

144A,

8.24%,

5/07/24

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

2,223

2,054,045

4,556,722

Total

Index-Linked

Notes

(Cost

$4,850,571)

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

4,556,722

Total

Long

Term

Investments

(Cost

$50,775,274)

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

44,982,955

a

a

a

a

a

Short

Term

Investments

0.2%

Shares

a

Money

Market

Funds

0.2%

a,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

108,271

108,271

Total

Money

Market

Funds

(Cost

$108,271)

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

108,271

Total

Short

Term

Investments

(Cost

$108,271

)

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

108,271

a

Total

Investments

(Cost

$50,883,545)

99.3%

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

$45,091,226

Other

Assets,

less

Liabilities

0.7%

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

281,540

Net

Assets

100.0%

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

$45,372,766

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(c)

regarding

index-linked

notes.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

d

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

e

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2022,

the

value

of

these

securities

was

$4,556,722,

representing

10.0%

of

net

assets.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.00

$12.99

$12.17

$11.00

$11.76

Income

from

investment

operations

a

:

Net

investment

income

b

,

c

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

0.25

0.22

0.19

0.29

0.35

Net

realized

and

unrealized

gains

(losses)

...........

(2.27)

1.02

0.89

1.18

(0.79)

Total

from

investment

operations

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

(2.02)

1.24

1.08

1.47

(0.44)

Less

distributions

from:

Net

investment

income

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

(0.16)

(0.34)

(0.26)

(0.30)

(0.32)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.40)

(1.23)

(0.26)

(0.30)

(0.32)

Net

asset

value,

end

of

year

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

$10.58

$13.00

$12.99

$12.17

$11.00

Total

return

d

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

(15.58)%

9.62%

9.06%

13.43%

(3.78)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.98%

0.98%

0.98%

0.97%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.47%

f

0.46%

0.47%

f

0.35%

0.30%

Net

investment

income

c

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

2.19%

1.63%

1.61%

2.47%

2.92%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$27,491

$36,698

$30,265

$27,016

$24,108

Portfolio

turnover

rate

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

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

73

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.91

$12.91

$12.09

$10.93

$11.69

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.15

0.11

0.10

0.20

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(2.24)

1.02

0.89

1.17

(0.76)

Total

from

investment

operations

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

(2.09)

1.13

0.99

1.37

(0.52)

Less

distributions

from:

Net

investment

income

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

(0.08)

(0.24)

(0.17)

(0.21)

(0.24)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.32)

(1.13)

(0.17)

(0.21)

(0.24)

Net

asset

value,

end

of

year

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

$10.50

$12.91

$12.91

$12.09

$10.93

Total

return

d

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

(16.23)%

8.85%

8.29%

12.59%

(4.53)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.73%

1.72%

1.73%

1.72%

1.69%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.22%

f

1.21%

1.22%

f

1.10%

1.05%

Net

investment

income

c

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

1.36%

0.79%

0.85%

1.72%

2.17%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,796

$6,235

$7,118

$6,811

$6,364

Portfolio

turnover

rate

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

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.00

$12.98

$12.16

$10.99

$11.75

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.23

0.17

0.16

0.26

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(2.29)

1.03

0.89

1.17

(0.76)

Total

from

investment

operations

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

(2.06)

1.20

1.05

1.43

(0.47)

Less

distributions

from:

Net

investment

income

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

(0.13)

(0.29)

(0.23)

(0.26)

(0.29)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.37)

(1.18)

(0.23)

(0.26)

(0.29)

Net

asset

value,

end

of

year

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

$10.57

$13.00

$12.98

$12.16

$10.99

Total

return

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

(15.86)%

9.37%

8.79%

13.25%

(4.14)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.23%

1.22%

1.23%

1.22%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.72%

e

0.71%

0.72%

e

0.60%

0.55%

Net

investment

income

c

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

2.01%

1.23%

1.35%

2.22%

2.67%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$650

$758

$786

$745

$767

Portfolio

turnover

rate

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

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

75

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.04

$13.03

$12.20

$11.02

$11.79

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.29

0.19

0.22

0.32

0.37

Net

realized

and

unrealized

gains

(losses)

...........

(2.29)

1.09

0.90

1.19

(0.78)

Total

from

investment

operations

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

(2.00)

1.28

1.12

1.51

(0.41)

Less

distributions

from:

Net

investment

income

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

(0.19)

(0.38)

(0.29)

(0.33)

(0.36)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.43)

(1.27)

(0.29)

(0.33)

(0.36)

Capital

contributions

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

0.25

—

—

—

—

Net

asset

value,

end

of

year

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

$10.86

$13.04

$13.03

$12.20

$11.02

Total

return

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

(13.38)%

d

9.93%

9.45%

13.83%

(3.57)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.31%

0.59%

0.62%

0.60%

0.58%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.16%

f

0.16%

0.16%

f

0.05%

—%

Net

investment

income

c

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

2.54%

1.40%

1.83%

2.77%

3.22%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4

$5

$4,855

$7,429

$8,562

Portfolio

turnover

rate

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

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(15.38)%.

See

Note

2.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.05

$13.03

$12.20

$11.03

$11.79

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.28

0.26

0.22

0.32

0.35

Net

realized

and

unrealized

gains

(losses)

...........

(2.28)

1.02

0.90

1.17

(0.76)

Total

from

investment

operations

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

(2.00)

1.28

1.12

1.49

(0.41)

Less

distributions

from:

Net

investment

income

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

(0.19)

(0.37)

(0.29)

(0.32)

(0.35)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.43)

(1.26)

(0.29)

(0.32)

(0.35)

Net

asset

value,

end

of

year

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

$10.62

$13.05

$13.03

$12.20

$11.03

Total

return

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

(15.37)%

9.95%

9.39%

13.77%

(3.62)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.73%

0.73%

0.73%

0.72%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.22%

e

0.21%

0.21%

e

0.10%

0.05%

Net

investment

income

c

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

2.44%

1.88%

1.80%

2.72%

3.17%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$620

$826

$685

$745

$637

Portfolio

turnover

rate

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

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

year

ended

December

31,

2022.The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

77

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.9%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

14,685

$

311,909

Domestic

Equity

32.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

27,248

993,724

a

Franklin

Growth

Fund,

Class

R6

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

22,992

2,365,638

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

446,906

5,318,184

a

Franklin

U.S.

Equity

Index

ETF

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

13,925

462,737

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

31,703

1,244,111

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

4,900

186,396

10,570,790

Domestic

Fixed

Income

47.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

131,423

1,148,635

a

Franklin

Investment

Grade

Corporate

ETF

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

35,503

740,948

a

Franklin

U.S.

Core

Bond

ETF

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

270,263

5,721,468

a

Franklin

U.S.

Treasury

Bond

ETF

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

76,773

1,589,201

iShares

Floating

Rate

Bond

ETF

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

14,225

715,943

Schwab

U.S.

TIPS

ETF

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

21,829

1,130,525

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

351,889

3,293,679

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

287,941

1,039,466

15,379,865

Foreign

Equity

14.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

89,795

796,484

a

Franklin

International

Core

Equity

(IU)

Fund

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

211,089

2,121,449

a,b

Franklin

International

Growth

Fund,

Class

R6

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

22,310

321,494

iShares

Core

MSCI

EAFE

ETF

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

5,979

368,545

a

Templeton

Developing

Markets

Trust,

Class

R6

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

34,005

556,657

a

Templeton

Foreign

Fund,

Class

R6

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

78,447

527,165

4,691,794

Foreign

Fixed

Income

3.8%

a

Franklin

High

Yield

Corporate

ETF

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

25,613

564,767

a

Franklin

International

Aggregate

Bond

ETF

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

35,821

687,942

1,252,709

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$33,809,040)

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

32,207,067

a

a

a

a

Short

Term

Investments

1.5%

a

Money

Market

Funds

1.1%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

365,822

365,822

Total

Money

Market

Funds

(Cost

$365,822)

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

365,822

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.4%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$123,474)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$14,167)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$12,978)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$96,329)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$125,909)

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

$

123,416

$

123,416

Total

Repurchase

Agreements

(Cost

$123,416)

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

123,416

Total

Short

Term

Investments

(Cost

$489,238

)

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

489,238

a

Total

Investments

(Cost

$34,298,278)

100.4%

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

$32,696,305

Other

Assets,

less

Liabilities

(0.4)%

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

(134,762)

Net

Assets

100.0%

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

$32,561,543

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

79

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.67

$13.80

$12.98

$11.52

$12.97

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.23

0.23

0.20

0.27

0.32

Net

realized

and

unrealized

gains

(losses)

...........

(2.43)

1.31

1.08

1.66

(1.02)

Total

from

investment

operations

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

(2.20)

1.54

1.28

1.93

(0.70)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.14)

(0.37)

(0.21)

(0.28)

(0.33)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.43)

(1.67)

(0.46)

(0.47)

(0.75)

Net

asset

value,

end

of

year

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

$11.04

$13.67

$13.80

$12.98

$11.52

Total

return

d

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

(16.06)%

11.21%

10.26%

16.85%

(5.46)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.76%

0.76%

0.77%

0.80%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.48%

f

0.47%

0.45%

f

0.35%

0.30%

f

Net

investment

income

c

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

1.97%

1.57%

1.53%

2.15%

2.41%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$97,043

$118,521

$96,973

$86,084

$76,050

Portfolio

turnover

rate

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

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.40

$13.56

$12.76

$11.34

$12.77

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.13

0.10

0.09

0.17

0.20

Net

realized

and

unrealized

gains

(losses)

...........

(2.36)

1.30

1.08

1.62

(0.97)

Total

from

investment

operations

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

(2.23)

1.40

1.17

1.79

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.07)

(0.26)

(0.12)

(0.18)

(0.24)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.36)

(1.56)

(0.37)

(0.37)

(0.66)

Net

asset

value,

end

of

year

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

$10.81

$13.40

$13.56

$12.76

$11.34

Total

return

d

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

(16.66)%

10.40%

9.44%

15.90%

(6.12)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.51%

1.50%

1.51%

1.55%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.23%

f

1.21%

1.20%

f

1.10%

1.04%

f

Net

investment

income

c

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

1.16%

0.70%

0.76%

1.40%

1.67%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$12,140

$17,778

$21,991

$23,450

$21,907

Portfolio

turnover

rate

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

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

81

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.61

$13.75

$12.93

$11.48

$12.93

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.19

0.18

0.16

0.23

0.26

Net

realized

and

unrealized

gains

(losses)

...........

(2.40)

1.31

1.09

1.65

(0.99)

Total

from

investment

operations

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

(2.21)

1.49

1.25

1.88

(0.73)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.33)

(0.18)

(0.24)

(0.30)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.40)

(1.63)

(0.43)

(0.43)

(0.72)

Net

asset

value,

end

of

year

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

$11.00

$13.61

$13.75

$12.93

$11.48

Total

return

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

(16.21)%

10.89%

10.00%

16.52%

(5.73)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.01%

1.01%

1.02%

1.05%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.73%

e

0.72%

0.70%

e

0.60%

0.55%

e

Net

investment

income

c

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

1.61%

1.26%

1.24%

1.90%

2.16%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,954

$3,069

$3,117

$3,930

$4,510

Portfolio

turnover

rate

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

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.72

$13.85

$13.02

$11.56

$13.01

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.29

0.19

0.23

0.31

0.34

Net

realized

and

unrealized

gains

(losses)

...........

(2.45)

1.39

1.10

1.65

(1.00)

Total

from

investment

operations

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

(2.16)

1.58

1.33

1.96

(0.66)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.18)

(0.41)

(0.25)

(0.31)

(0.37)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.47)

(1.71)

(0.50)

(0.50)

(0.79)

Net

asset

value,

end

of

year

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

$11.09

$13.72

$13.85

$13.02

$11.56

Total

return

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

(15.71)%

11.49%

10.64%

17.14%

(5.15)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.38%

0.39%

0.39%

0.41%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.14%

e

0.15%

0.15%

e

0.05%

—%

e

Net

investment

income

c

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

2.48%

1.34%

1.83%

2.45%

2.71%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$670

$544

$16,094

$14,717

$14,228

Portfolio

turnover

rate

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

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

83

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.71

$13.83

$13.01

$11.55

$13.00

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.27

0.26

0.24

0.30

0.33

Net

realized

and

unrealized

gains

(losses)

...........

(2.44)

1.32

1.07

1.66

(1.00)

Total

from

investment

operations

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

(2.17)

1.58

1.31

1.96

(0.67)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.17)

(0.40)

(0.24)

(0.31)

(0.36)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.46)

(1.70)

(0.49)

(0.50)

(0.78)

Net

asset

value,

end

of

year

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

$11.08

$13.71

$13.83

$13.01

$11.55

Total

return

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

(15.79)%

11.53%

10.51%

17.09%

(5.20)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.51%

0.51%

0.52%

0.55%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.23%

e

0.22%

0.20%

e

0.10%

0.05%

e

Net

investment

income

c

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

2.25%

1.80%

1.90%

2.40%

2.66%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,572

$3,055

$2,872

$1,532

$1,449

Portfolio

turnover

rate

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

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.5%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

51,333

$

1,090,313

Domestic

Equity

38.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

113,083

4,124,126

a

Franklin

Growth

Fund,

Class

R6

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

95,015

9,776,078

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,860,392

22,138,668

a

Franklin

U.S.

Equity

Index

ETF

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

59,400

1,973,904

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

131,886

5,175,563

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

20,600

783,624

43,971,963

Domestic

Fixed

Income

39.0%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

333,772

2,917,165

a

Franklin

Investment

Grade

Corporate

ETF

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

103,890

2,168,184

a

Franklin

U.S.

Core

Bond

ETF

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

790,183

16,728,174

a

Franklin

U.S.

Treasury

Bond

ETF

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

224,588

4,648,972

iShares

Floating

Rate

Bond

ETF

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

41,725

2,100,019

Schwab

U.S.

TIPS

ETF

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

64,036

3,316,425

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

1,028,700

9,628,633

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

866,670

3,128,680

44,636,252

Foreign

Equity

17.1%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

374,165

3,318,843

a

Franklin

International

Core

Equity

(IU)

Fund

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

869,424

8,737,714

a,b

Franklin

International

Growth

Fund,

Class

R6

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

92,613

1,334,547

iShares

Core

MSCI

EAFE

ETF

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

27,067

1,668,410

a

Templeton

Developing

Markets

Trust,

Class

R6

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

140,612

2,301,822

a

Templeton

Foreign

Fund,

Class

R6

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

325,771

2,189,180

19,550,516

Foreign

Fixed

Income

2.9%

a

Franklin

High

Yield

Corporate

ETF

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

74,978

1,653,265

a

Franklin

International

Aggregate

Bond

ETF

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

91,083

1,749,249

3,402,514

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$114,435,744)

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

112,651,558

a

a

a

a

Short

Term

Investments

1.6%

a

Money

Market

Funds

1.4%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

1,580,072

1,580,072

Total

Money

Market

Funds

(Cost

$1,580,072)

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

1,580,072

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

85

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.2%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$254,760)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$29,228)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$26,778)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$198,754)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$259,784)

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

$

254,641

$

254,641

Total

Repurchase

Agreements

(Cost

$254,641)

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

254,641

Total

Short

Term

Investments

(Cost

$1,834,713

)

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

1,834,713

a

Total

Investments

(Cost

$116,270,457)

100.1%

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

$114,486,271

Other

Assets,

less

Liabilities

(0.1)%

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

(107,240)

Net

Assets

100.0%

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

$114,379,031

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.21

$14.40

$13.28

$11.50

$12.70

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.22

0.24

0.19

0.25

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(2.58)

1.61

1.29

1.90

(1.09)

Total

from

investment

operations

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

(2.36)

1.85

1.48

2.15

(0.80)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.13)

(0.41)

(0.22)

(0.23)

(0.32)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.43)

(2.04)

(0.36)

(0.37)

(0.40)

Net

asset

value,

end

of

year

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

$11.42

$14.21

$14.40

$13.28

$11.50

Total

return

d

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

(16.57)%

12.91%

11.52%

18.80%

(6.32)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.94%

0.93%

0.95%

1.02%

0.98%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.48%

f

0.46%

0.44%

f

0.34%

f

0.30%

f

Net

investment

income

c

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

1.78%

1.57%

1.46%

1.96%

2.24%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$44,099

$49,835

$34,019

$27,248

$22,447

Portfolio

turnover

rate

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

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

87

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.00

$14.22

$13.13

$11.37

$12.56

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.12

0.11

0.09

0.15

0.18

Net

realized

and

unrealized

gains

(losses)

...........

(2.53)

1.61

1.27

1.89

(1.06)

Total

from

investment

operations

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

(2.41)

1.72

1.36

2.04

(0.88)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.06)

(0.31)

(0.13)

(0.14)

(0.23)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.36)

(1.94)

(0.27)

(0.28)

(0.31)

Net

asset

value,

end

of

year

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

$11.23

$14.00

$14.22

$13.13

$11.37

Total

return

d

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

(17.18)%

12.13%

10.60%

17.98%

(7.02)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.69%

1.68%

1.70%

1.77%

1.73%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.23%

f

1.21%

1.19%

f

1.09%

f

1.05%

f

Net

investment

income

c

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

0.99%

0.74%

0.71%

1.21%

1.49%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$9,642

$12,281

$10,937

$9,146

$7,460

Portfolio

turnover

rate

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

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.19

$14.38

$13.27

$11.48

$12.68

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.18

0.20

0.15

0.22

0.23

Net

realized

and

unrealized

gains

(losses)

...........

(2.58)

1.61

1.29

1.91

(1.06)

Total

from

investment

operations

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

(2.40)

1.81

1.44

2.13

(0.83)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.10)

(0.37)

(0.19)

(0.20)

(0.29)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.40)

(2.00)

(0.33)

(0.34)

(0.37)

Net

asset

value,

end

of

year

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

$11.39

$14.19

$14.38

$13.27

$11.48

Total

return

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

(16.84)%

12.65%

11.17%

18.64%

(6.59)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.19%

1.18%

1.20%

1.27%

1.23%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.74%

e

0.71%

0.69%

e

0.59%

e

0.55%

e

Net

investment

income

c

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

1.51%

1.29%

1.19%

1.71%

1.99%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,295

$1,512

$1,186

$1,058

$816

Portfolio

turnover

rate

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

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

89

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.28

$14.46

$13.34

$11.54

$12.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.36

0.18

0.23

0.29

0.32

Net

realized

and

unrealized

gains

(losses)

...........

(2.67)

1.72

1.29

1.92

(1.08)

Total

from

investment

operations

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

(2.31)

1.90

1.52

2.21

(0.76)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.16)

(0.45)

(0.26)

(0.27)

(0.36)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.46)

(2.08)

(0.40)

(0.41)

(0.44)

Capital

contributions

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

0.06

—

—

—

—

Net

asset

value,

end

of

year

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

$11.57

$14.28

$14.46

$13.34

$11.54

Total

return

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

(15.68)%

d

13.24%

11.80%

19.26%

(6.02)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.18%

0.45%

0.50%

0.53%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.15%

f

0.15%

0.15%

f

0.04%

f

—%

f

Net

investment

income

c

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

3.02%

1.20%

1.72%

2.26%

2.54%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$51

$40

$23,717

$22,064

$18,389

Portfolio

turnover

rate

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

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(16.08)%.

See

Note

2.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.27

$14.44

$13.33

$11.53

$12.73

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.25

0.28

0.23

0.28

0.31

Net

realized

and

unrealized

gains

(losses)

...........

(2.59)

1.62

1.28

1.92

(1.08)

Total

from

investment

operations

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

(2.34)

1.90

1.51

2.20

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.15)

(0.44)

(0.26)

(0.26)

(0.35)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.45)

(2.07)

(0.40)

(0.40)

(0.43)

Net

asset

value,

end

of

year

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

$11.48

$14.27

$14.44

$13.33

$11.53

Total

return

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

(16.34)%

13.28%

11.68%

19.22%

(6.08)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.69%

0.68%

0.70%

0.77%

0.73%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.23%

e

0.21%

0.19%

e

0.09%

e

0.05%

e

Net

investment

income

c

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

2.05%

1.81%

1.74%

2.21%

2.49%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,770

$1,937

$1,546

$997

$785

Portfolio

turnover

rate

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

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23

%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

91

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

25,636

$

544,509

Domestic

Equity

44.6%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

65,572

2,391,404

a

Franklin

Growth

Fund,

Class

R6

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

55,152

5,674,604

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,067,754

12,706,277

a

Franklin

U.S.

Equity

Index

ETF

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

33,075

1,099,105

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

76,326

2,995,238

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

11,925

453,627

25,320,255

Domestic

Fixed

Income

31.0%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

125,190

1,094,160

a

Franklin

Investment

Grade

Corporate

ETF

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

41,042

856,547

a

Franklin

U.S.

Core

Bond

ETF

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

312,279

6,610,946

a

Franklin

U.S.

Treasury

Bond

ETF

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

88,736

1,836,835

iShares

Floating

Rate

Bond

ETF

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

16,450

827,929

Schwab

U.S.

TIPS

ETF

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

25,249

1,307,646

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

406,551

3,805,315

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

359,289

1,297,032

17,636,410

Foreign

Equity

19.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

212,029

1,880,693

a

Franklin

International

Core

Equity

(IU)

Fund

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

516,997

5,195,817

a,b

Franklin

International

Growth

Fund,

Class

R6

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

54,265

781,964

iShares

Core

MSCI

EAFE

ETF

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

12,953

798,423

a

Templeton

Developing

Markets

Trust,

Class

R6

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

81,540

1,334,804

a

Templeton

Foreign

Fund,

Class

R6

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

189,683

1,274,672

11,266,373

Foreign

Fixed

Income

2.2%

a

Franklin

High

Yield

Corporate

ETF

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

29,583

652,305

a

Franklin

International

Aggregate

Bond

ETF

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

33,850

650,089

1,302,394

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$55,599,359)

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

56,069,941

a

a

a

a

Short

Term

Investments

1.9%

a

Money

Market

Funds

1.3%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

755,711

755,711

Total

Money

Market

Funds

(Cost

$755,711)

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

755,711

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.6%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$329,401)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$37,793)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$34,623)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$256,985)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$335,897)

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

$

329,247

$

329,247

Total

Repurchase

Agreements

(Cost

$329,247)

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

329,247

Total

Short

Term

Investments

(Cost

$1,084,958

)

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

1,084,958

a

Total

Investments

(Cost

$56,684,317)

100.5%

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

$57,154,899

Other

Assets,

less

Liabilities

(0.5)%

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

(297,520)

Net

Assets

100.0%

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

$56,857,379

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

93

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.67

$15.18

$13.94

$12.03

$13.70

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.20

0.24

0.19

0.24

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(2.66)

1.90

1.61

2.19

(1.21)

Total

from

investment

operations

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

(2.46)

2.14

1.80

2.43

(0.92)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.42)

(0.20)

(0.24)

(0.30)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.46)

(2.65)

(0.56)

(0.52)

(0.75)

Net

asset

value,

end

of

year

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

$11.75

$14.67

$15.18

$13.94

$12.03

Total

return

d

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

(16.69)%

14.20%

13.44%

20.36%

(6.87)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.77%

0.81%

0.81%

0.86%

0.81%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.49%

f

0.47%

0.43%

f

0.34%

0.30%

f

Net

investment

income

c

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

1.60%

1.45%

1.38%

1.81%

2.04%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$91,064

$104,174

$84,029

$72,425

$60,087

Portfolio

turnover

rate

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

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.23

$14.79

$13.60

$11.75

$13.40

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.10

0.09

0.08

0.14

0.16

Net

realized

and

unrealized

gains

(losses)

...........

(2.57)

1.88

1.58

2.13

(1.16)

Total

from

investment

operations

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

(2.47)

1.97

1.66

2.27

(1.00)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.05)

(0.30)

(0.11)

(0.14)

(0.20)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.40)

(2.53)

(0.47)

(0.42)

(0.65)

Net

asset

value,

end

of

year

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

$11.36

$14.23

$14.79

$13.60

$11.75

Total

return

d

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

(17.36)%

13.36%

12.62%

19.46%

(7.58)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.53%

1.55%

1.56%

1.61%

1.56%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.24%

f

1.21%

1.18%

f

1.09%

1.05%

f

Net

investment

income

c

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

0.81%

0.60%

0.60%

1.06%

1.29%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$14,549

$18,502

$21,329

$21,115

$18,350

Portfolio

turnover

rate

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

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

95

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.66

$15.17

$13.92

$12.01

$13.69

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.17

0.18

0.15

0.20

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(2.66)

1.91

1.63

2.20

(1.20)

Total

from

investment

operations

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

(2.49)

2.09

1.78

2.40

(0.96)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.09)

(0.37)

(0.17)

(0.21)

(0.27)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.44)

(2.60)

(0.53)

(0.49)

(0.72)

Net

asset

value,

end

of

year

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

$11.73

$14.66

$15.17

$13.92

$12.01

Total

return

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

(16.93)%

13.87%

13.23%

20.10%

(7.18)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.02%

1.05%

1.05%

1.10%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.74%

e

0.71%

0.68%

e

0.58%

0.54%

e

Net

investment

income

c

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

1.38%

1.08%

1.07%

1.57%

1.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,881

$4,113

$4,530

$4,966

$4,762

Portfolio

turnover

rate

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

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.81

$15.31

$14.05

$12.12

$13.80

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.25

0.18

0.23

0.29

0.31

Net

realized

and

unrealized

gains

(losses)

...........

(2.68)

2.02

1.63

2.20

(1.20)

Total

from

investment

operations

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

(2.43)

2.20

1.86

2.49

(0.89)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.15)

(0.47)

(0.24)

(0.28)

(0.34)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.50)

(2.70)

(0.60)

(0.56)

(0.79)

Net

asset

value,

end

of

year

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

$11.88

$14.81

$15.31

$14.05

$12.12

Total

return

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

(16.38)%

14.46%

13.82%

20.73%

(6.63)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.79%

0.38%

0.40%

0.41%

0.39%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.15%

e

0.14%

0.13%

e

0.04%

—%

e

Net

investment

income

c

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

1.98%

1.10%

1.66%

2.11%

2.34%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$91

$93

$30,069

$28,513

$22,207

Portfolio

turnover

rate

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

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

97

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.84

$15.33

$14.07

$12.13

$13.81

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.23

0.27

0.23

0.28

0.32

Net

realized

and

unrealized

gains

(losses)

...........

(2.69)

1.93

1.63

2.21

(1.22)

Total

from

investment

operations

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

(2.46)

2.20

1.86

2.49

(0.90)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.14)

(0.46)

(0.24)

(0.27)

(0.33)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.49)

(2.69)

(0.60)

(0.55)

(0.78)

Net

asset

value,

end

of

year

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

$11.89

$14.84

$15.33

$14.07

$12.13

Total

return

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

(16.54)%

14.46%

13.75%

20.73%

(6.67)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.52%

0.56%

0.56%

0.61%

0.56%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.24%

e

0.21%

0.18%

e

0.09%

0.05%

e

Net

investment

income

c

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

1.85%

1.67%

1.67%

2.06%

2.29%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,496

$3,911

$3,438

$2,145

$1,723

Portfolio

turnover

rate

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

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23

%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.4%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

51,200

$

1,087,488

Domestic

Equity

50.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

147,649

5,384,764

a

Franklin

Growth

Fund,

Class

R6

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

124,110

12,769,707

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

2,348,561

27,947,872

a

Franklin

U.S.

Equity

Index

ETF

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

85,875

2,853,686

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

173,026

6,790,007

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

26,975

1,026,129

56,772,165

Domestic

Fixed

Income

23.2%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

208,008

1,817,990

a

Franklin

Investment

Grade

Corporate

ETF

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

60,096

1,254,204

a

Franklin

U.S.

Core

Bond

ETF

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

456,865

9,671,832

a

Franklin

U.S.

Treasury

Bond

ETF

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

129,862

2,688,143

iShares

Floating

Rate

Bond

ETF

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

24,125

1,214,211

Schwab

U.S.

TIPS

ETF

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

37,016

1,917,059

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

594,742

5,566,784

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

568,641

2,052,794

26,183,017

Foreign

Equity

22.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

478,604

4,245,221

a

Franklin

International

Core

Equity

(IU)

Fund

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

1,102,269

11,077,804

a,b

Franklin

International

Growth

Fund,

Class

R6

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

121,121

1,745,352

iShares

Core

MSCI

EAFE

ETF

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

36,435

2,245,854

a

Templeton

Developing

Markets

Trust,

Class

R6

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

184,404

3,018,692

a

Templeton

Foreign

Fund,

Class

R6

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

426,023

2,862,874

25,195,797

Foreign

Fixed

Income

1.7%

a

Franklin

High

Yield

Corporate

ETF

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

43,320

955,206

a

Franklin

International

Aggregate

Bond

ETF

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

55,562

1,067,068

2,022,274

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$108,390,854)

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

111,260,741

a

a

a

a

Short

Term

Investments

1.6%

a

Money

Market

Funds

1.3%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

1,530,736

1,530,736

Total

Money

Market

Funds

(Cost

$1,530,736)

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

1,530,736

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

99

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$306,787)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$35,198)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$32,246)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$239,343)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$312,837)

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

$

306,643

$

306,643

Total

Repurchase

Agreements

(Cost

$306,643)

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

306,643

Total

Short

Term

Investments

(Cost

$1,837,379

)

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

1,837,379

a

Total

Investments

(Cost

$110,228,233)

100.0%

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

$113,098,120

Other

Assets,

less

Liabilities

(0.0)%

†

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

(16,564)

Net

Assets

100.0%

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

$113,081,556

See

Abbreviations

on

page

180

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.42

$15.30

$13.76

$11.61

$13.03

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.16

0.24

0.18

0.22

0.27

Net

realized

and

unrealized

gains

(losses)

...........

(2.63)

2.19

1.82

2.25

(1.17)

Total

from

investment

operations

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

(2.47)

2.43

2.00

2.47

(0.90)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.10)

(0.43)

(0.23)

(0.18)

(0.30)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.45)

(3.31)

(0.46)

(0.32)

(0.52)

Net

asset

value,

end

of

year

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

$11.50

$14.42

$15.30

$13.76

$11.61

Total

return

d

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

(17.06)%

15.99%

15.04%

21.50%

(7.00)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.10%

1.11%

1.11%

1.18%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.50%

f

0.46%

0.43%

f

0.34%

f

0.30%

f

Net

investment

income

c

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

1.31%

1.43%

1.30%

1.67%

2.03%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$32,112

$35,193

$24,809

$19,322

$15,921

Portfolio

turnover

rate

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

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

101

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.10

$15.02

$13.52

$11.42

$12.83

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.06

0.10

0.07

0.12

0.16

Net

realized

and

unrealized

gains

(losses)

...........

(2.56)

2.18

1.79

2.21

(1.14)

Total

from

investment

operations

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

(2.50)

2.28

1.86

2.33

(0.98)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.02)

(0.32)

(0.13)

(0.09)

(0.21)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.37)

(3.20)

(0.36)

(0.23)

(0.43)

Net

asset

value,

end

of

year

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

$11.23

$14.10

$15.02

$13.52

$11.42

Total

return

d

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

(17.70)%

15.25%

14.15%

20.56%

(7.71)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.85%

1.85%

1.86%

1.93%

1.89%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.25%

f

1.21%

1.18%

f

1.09%

f

1.05%

f

Net

investment

income

c

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

0.53%

0.62%

0.55%

0.92%

1.28%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$6,697

$7,989

$6,867

$5,630

$4,286

Portfolio

turnover

rate

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

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.41

$15.28

$13.74

$11.60

$13.02

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.12

0.18

0.14

0.18

0.22

Net

realized

and

unrealized

gains

(losses)

...........

(2.62)

2.21

1.82

2.25

(1.16)

Total

from

investment

operations

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

(2.50)

2.39

1.96

2.43

(0.94)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.06)

(0.38)

(0.19)

(0.15)

(0.26)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.41)

(3.26)

(0.42)

(0.29)

(0.48)

Net

asset

value,

end

of

year

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

$11.50

$14.41

$15.28

$13.74

$11.60

Total

return

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

(17.29)%

15.78%

14.74%

21.13%

(7.27)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.35%

1.35%

1.36%

1.43%

1.39%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.75%

e

0.71%

0.68%

e

0.59%

e

0.55%

e

Net

investment

income

c

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

0.96%

1.09%

1.02%

1.42%

1.78%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,114

$1,806

$1,540

$1,528

$1,273

Portfolio

turnover

rate

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

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

103

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.54

$15.40

$13.85

$11.69

$13.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.19

0.17

0.21

0.25

0.30

Net

realized

and

unrealized

gains

(losses)

...........

(2.64)

2.33

1.84

2.27

(1.16)

Total

from

investment

operations

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

(2.45)

2.50

2.05

2.52

(0.86)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.14)

(0.48)

(0.27)

(0.22)

(0.34)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.49)

(3.36)

(0.50)

(0.36)

(0.56)

Net

asset

value,

end

of

year

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

$11.60

$14.54

$15.40

$13.85

$11.69

Total

return

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

(16.86)%

16.42%

15.35%

21.89%

(6.77)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.57%

0.49%

0.55%

0.58%

0.58%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.20%

e

0.14%

0.13%

e

0.04%

e

—%

e

Net

investment

income

c

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

1.54%

1.01%

1.58%

1.97%

2.33%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$213

$310

$25,450

$22,250

$18,247

Portfolio

turnover

rate

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

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.52

$15.37

$13.82

$11.67

$13.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.19

0.29

0.22

0.33

0.27

Net

realized

and

unrealized

gains

(losses)

...........

(2.65)

2.21

1.82

2.18

(1.15)

Total

from

investment

operations

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

(2.46)

2.50

2.04

2.51

(0.88)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.13)

(0.47)

(0.26)

(0.22)

(0.33)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.48)

(3.35)

(0.49)

(0.36)

(0.55)

Net

asset

value,

end

of

year

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

$11.58

$14.52

$15.37

$13.82

$11.67

Total

return

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

(16.87)%

16.40%

15.33%

21.68%

(6.82)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.85%

0.86%

0.86%

0.93%

0.89%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.25%

e

0.22%

0.18%

e

0.09%

e

0.05%

e

Net

investment

income

c

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

1.54%

1.75%

1.60%

1.92%

2.28%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,156

$937

$506

$146

$165

Portfolio

turnover

rate

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

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22

%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

105

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

18,937

$

402,222

Domestic

Equity

56.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

60,906

2,221,231

a

Franklin

Growth

Fund,

Class

R6

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

51,152

5,263,064

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

862,327

10,261,687

a

Franklin

U.S.

Equity

Index

ETF

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

35,275

1,172,213

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

98,867

3,879,808

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

11,050

420,342

23,218,345

Domestic

Fixed

Income

15.9%

a

Franklin

Investment

Grade

Corporate

ETF

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

16,078

335,548

a

Franklin

U.S.

Core

Bond

ETF

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

122,077

2,584,370

a

Franklin

U.S.

Treasury

Bond

ETF

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

34,721

718,725

iShares

Floating

Rate

Bond

ETF

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

6,400

322,112

Schwab

U.S.

TIPS

ETF

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

9,806

507,853

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

158,993

1,488,174

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

168,286

607,513

6,564,295

Foreign

Equity

24.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

192,733

1,709,541

a

Franklin

International

Core

Equity

(IU)

Fund

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

452,232

4,544,929

a,b

Franklin

International

Growth

Fund,

Class

R6

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

50,077

721,611

iShares

Core

MSCI

EAFE

ETF

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

14,109

869,679

a

Templeton

Developing

Markets

Trust,

Class

R6

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

75,660

1,238,555

a

Templeton

Foreign

Fund,

Class

R6

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

175,905

1,182,080

10,266,395

Foreign

Fixed

Income

0.6%

a

Franklin

High

Yield

Corporate

ETF

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

11,598

255,736

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$38,987,868)

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

40,706,993

a

a

a

a

Short

Term

Investments

2.0%

a

Money

Market

Funds

1.7%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

714,891

714,891

Total

Money

Market

Funds

(Cost

$714,891)

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

714,891

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$129,567)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$14,865)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$13,619)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$101,083)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$132,122)

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

$

129,506

$

129,506

Total

Repurchase

Agreements

(Cost

$129,506)

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

129,506

Total

Short

Term

Investments

(Cost

$844,397

)

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

844,397

a

Total

Investments

(Cost

$39,832,265)

100.6%

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

$41,551,390

Other

Assets,

less

Liabilities

(0.6)%

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

(259,578)

Net

Assets

100.0%

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

$41,291,812

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

107

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.19

$15.80

$14.27

$12.04

$13.78

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.14

0.23

0.17

0.21

0.27

Net

realized

and

unrealized

gains

(losses)

...........

(2.84)

2.45

1.98

2.45

(1.26)

Total

from

investment

operations

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

(2.70)

2.68

2.15

2.66

(0.99)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.08)

(0.45)

(0.19)

(0.21)

(0.27)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.49)

(3.29)

(0.62)

(0.43)

(0.75)

Net

asset

value,

end

of

year

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

$12.00

$15.19

$15.80

$14.27

$12.04

Total

return

d

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

(17.67)%

17.06%

15.76%

22.33%

(7.42)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.91%

0.91%

0.94%

0.98%

0.93%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.50%

f

0.46%

0.43%

f

0.34%

f

0.30%

f

Net

investment

income

c

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

1.13%

1.32%

1.22%

1.57%

1.91%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$62,061

$72,764

$59,801

$51,412

$44,978

Portfolio

turnover

rate

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

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.61

$15.33

$13.88

$11.72

$13.44

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.04

0.08

0.06

0.11

0.15

Net

realized

and

unrealized

gains

(losses)

...........

(2.71)

2.38

1.94

2.38

(1.22)

Total

from

investment

operations

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

(2.67)

2.46

2.00

2.49

(1.07)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.02)

(0.34)

(0.12)

(0.11)

(0.17)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.43)

(3.18)

(0.55)

(0.33)

(0.65)

Net

asset

value,

end

of

year

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

$11.51

$14.61

$15.33

$13.88

$11.72

Total

return

d

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

(18.25)%

16.10%

15.00%

21.35%

(8.07)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.66%

1.66%

1.68%

1.73%

1.67%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.25%

f

1.21%

1.17%

f

1.09%

f

1.04%

f

Net

investment

income

c

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

0.36%

0.48%

0.46%

0.82%

1.17%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$10,537

$13,509

$14,502

$13,333

$11,738

Portfolio

turnover

rate

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

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

109

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.11

$15.74

$14.20

$11.98

$13.72

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.10

0.19

0.11

0.17

0.23

Net

realized

and

unrealized

gains

(losses)

...........

(2.81)

2.43

2.01

2.45

(1.25)

Total

from

investment

operations

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

(2.71)

2.62

2.12

2.62

(1.02)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.06)

(0.41)

(0.15)

(0.18)

(0.24)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.47)

(3.25)

(0.58)

(0.40)

(0.72)

Net

asset

value,

end

of

year

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

$11.93

$15.11

$15.74

$14.20

$11.98

Total

return

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

(17.87)%

16.73%

15.55%

21.95%

(7.61)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.16%

1.16%

1.18%

1.22%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.75%

e

0.71%

0.67%

e

0.58%

e

0.54%

e

Net

investment

income

c

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

0.81%

1.08%

0.80%

1.33%

1.67%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,178

$3,348

$2,620

$4,838

$5,146

Portfolio

turnover

rate

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

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.34

$15.93

$14.38

$12.12

$13.88

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.24

0.15

0.21

0.27

0.30

Net

realized

and

unrealized

gains

(losses)

...........

(2.81)

2.60

2.01

2.46

(1.27)

Total

from

investment

operations

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

(2.57)

2.75

2.22

2.73

(0.97)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.50)

(0.24)

(0.25)

(0.31)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.52)

(3.34)

(0.67)

(0.47)

(0.79)

Capital

contributions

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

0.30

—

—

—

—

Net

asset

value,

end

of

year

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

$12.55

$15.34

$15.93

$14.38

$12.12

Total

return

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

(14.60)%

d

17.37%

16.11%

22.69%

(7.16)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.25%

0.41%

0.44%

0.46%

0.46%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.19%

0.14%

0.13%

f

0.04%

f

—%

f

Net

investment

income

c

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

1.85%

0.87%

1.52%

1.87%

2.21%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$15

$4

$23,504

$20,022

$12,681

Portfolio

turnover

rate

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

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(16.64)%.

See

Note

2.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

111

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.34

$15.93

$14.38

$12.13

$13.88

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.18

0.28

0.21

0.25

0.31

Net

realized

and

unrealized

gains

(losses)

...........

(2.86)

2.46

2.00

2.46

(1.28)

Total

from

investment

operations

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

(2.68)

2.74

2.21

2.71

(0.97)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.49)

(0.23)

(0.24)

(0.30)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.52)

(3.33)

(0.66)

(0.46)

(0.78)

Net

asset

value,

end

of

year

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

$12.14

$15.34

$15.93

$14.38

$12.13

Total

return

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

(17.40)%

17.32%

16.06%

22.53%

(7.13)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.66%

0.67%

0.69%

0.73%

0.68%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.25%

e

0.22%

0.18%

e

0.09%

e

0.05%

e

Net

investment

income

c

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

1.37%

1.63%

1.49%

1.82%

2.16%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,279

$1,584

$1,089

$819

$639

Portfolio

turnover

rate

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

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

34,209

$

726,599

Domestic

Equity

61.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

120,546

4,396,296

a

Franklin

Growth

Fund,

Class

R6

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

101,205

10,412,946

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,855,333

22,078,457

a

Franklin

U.S.

Equity

Index

ETF

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

69,900

2,322,826

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

171,592

6,733,733

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

21,850

831,174

46,775,432

Domestic

Fixed

Income

8.8%

a

Franklin

U.S.

Core

Bond

ETF

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

148,461

3,142,919

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

342,744

3,208,080

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

105,022

379,129

6,730,128

Foreign

Equity

27.4%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

398,438

3,534,143

a

Franklin

International

Core

Equity

(IU)

Fund

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

947,493

9,522,302

a,b

Franklin

International

Growth

Fund,

Class

R6

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

98,738

1,422,808

iShares

Core

MSCI

EAFE

ETF

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

25,802

1,590,435

a

Templeton

Developing

Markets

Trust,

Class

R6

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

149,483

2,447,029

a

Templeton

Foreign

Fund,

Class

R6

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

347,336

2,334,095

20,850,812

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$70,443,003)

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

75,082,971

a

a

a

a

Short

Term

Investments

1.3%

a

Money

Market

Funds

1.1%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

817,913

817,913

Total

Money

Market

Funds

(Cost

$817,913)

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

817,913

Principal

Amount

Repurchase

Agreements

0.2%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$195,965)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$22,483)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$20,598)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$152,884)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$199,829)

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

$

195,873

195,873

Total

Repurchase

Agreements

(Cost

$195,873)

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

195,873

Total

Short

Term

Investments

(Cost

$1,013,786

)

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

1,013,786

a

Total

Investments

(Cost

$71,456,789)

100.0%

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

$76,096,757

Other

Assets,

less

Liabilities

(0.0)%

†

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

(27,118)

Net

Assets

100.0%

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

$76,069,639

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

113

See

Abbreviations

on

page

180

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.60

$15.76

$14.01

$11.74

$13.19

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.14

0.24

0.17

0.19

0.27

Net

realized

and

unrealized

gains

(losses)

...........

(2.71)

2.51

2.03

2.37

(1.23)

Total

from

investment

operations

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

(2.57)

2.75

2.20

2.56

(0.96)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.08)

(0.43)

(0.22)

(0.16)

(0.30)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.48)

(3.91)

(0.45)

(0.29)

(0.49)

Net

asset

value,

end

of

year

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

$11.55

$14.60

$15.76

$14.01

$11.74

Total

return

d

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

(17.52)%

17.58%

16.22%

22.00%

(7.40)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.31%

1.28%

1.28%

1.35%

1.30%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.49%

f

0.45%

0.42%

f

0.34%

f

0.30%

f

Net

investment

income

c

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

1.11%

1.42%

1.23%

1.55%

1.98%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$24,594

$30,413

$20,709

$16,729

$16,856

Portfolio

turnover

rate

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

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

115

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.40

$15.61

$13.91

$11.66

$13.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.04

0.10

0.07

0.11

0.16

Net

realized

and

unrealized

gains

(losses)

...........

(2.66)

2.49

2.00

2.34

(1.22)

Total

from

investment

operations

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

(2.62)

2.59

2.07

2.45

(1.06)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.01)

(0.32)

(0.14)

(0.07)

(0.20)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.41)

(3.80)

(0.37)

(0.20)

(0.39)

Net

asset

value,

end

of

year

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

$11.37

$14.40

$15.61

$13.91

$11.66

Total

return

d

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

(18.13)%

16.66%

15.35%

21.13%

(8.12)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.06%

2.02%

2.03%

2.10%

2.05%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.24%

f

1.20%

1.17%

f

1.09%

f

1.05%

f

Net

investment

income

c

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

0.36%

0.57%

0.48%

0.80%

1.23%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$6,564

$8,038

$7,014

$5,658

$4,167

Portfolio

turnover

rate

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

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.61

$15.76

$14.01

$11.74

$13.19

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.10

0.17

0.13

0.17

0.23

Net

realized

and

unrealized

gains

(losses)

...........

(2.68)

2.54

2.03

2.36

(1.22)

Total

from

investment

operations

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

(2.58)

2.71

2.16

2.53

(0.99)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.06)

(0.38)

(0.18)

(0.13)

(0.27)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.46)

(3.86)

(0.41)

(0.26)

(0.46)

Net

asset

value,

end

of

year

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

$11.57

$14.61

$15.76

$14.01

$11.74

Total

return

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

(17.64)%

17.23%

15.92%

21.72%

(7.62)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.56%

1.51%

1.53%

1.60%

1.55%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.74%

e

0.70%

0.67%

e

0.59%

e

0.55%

e

Net

investment

income

c

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

0.84%

0.97%

0.91%

1.30%

1.73%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,608

$1,857

$2,468

$2,364

$1,814

Portfolio

turnover

rate

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

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

117

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.72

$15.87

$14.10

$11.80

$13.26

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.20

0.14

0.21

0.26

0.29

Net

realized

and

unrealized

gains

(losses)

...........

(2.76)

2.68

2.05

2.37

(1.23)

Total

from

investment

operations

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

(2.56)

2.82

2.26

2.63

(0.94)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.12)

(0.49)

(0.26)

(0.20)

(0.33)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.52)

(3.97)

(0.49)

(0.33)

(0.52)

Capital

contributions

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

0.02

—

—

—

—

Net

asset

value,

end

of

year

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

$11.66

$14.72

$15.87

$14.10

$11.80

Total

return

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

(17.18)%

d

17.84%

16.59%

22.50%

(7.18)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.43%

0.51%

0.59%

0.62%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.19%

f

0.14%

0.12%

f

0.04%

f

—%

f

Net

investment

income

c

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

1.66%

0.85%

1.54%

1.85%

2.28%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$5

$2

$22,839

$17,560

$11,800

Portfolio

turnover

rate

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

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(17.32)%.

See

Note

2.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$14.72

$15.87

$14.10

$11.80

$13.26

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.17

0.28

0.20

0.24

0.28

Net

realized

and

unrealized

gains

(losses)

...........

(2.73)

2.53

2.05

2.38

(1.22)

Total

from

investment

operations

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

(2.56)

2.81

2.25

2.62

(0.94)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.11)

(0.48)

(0.25)

(0.19)

(0.33)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.51)

(3.96)

(0.48)

(0.32)

(0.52)

Net

asset

value,

end

of

year

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

$11.65

$14.72

$15.87

$14.10

$11.80

Total

return

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

(17.30)%

17.77%

16.54%

22.44%

(7.23)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.06%

1.03%

1.03%

1.10%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.25%

e

0.20%

0.18%

e

0.09%

e

0.05%

e

Net

investment

income

c

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

1.41%

1.62%

1.45%

1.80%

2.23%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$978

$942

$720

$617

$468

Portfolio

turnover

rate

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

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22

%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

119

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

15,313

$

325,248

Domestic

Equity

64.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

56,470

2,059,453

a

Franklin

Growth

Fund,

Class

R6

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

47,452

4,882,286

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

765,270

9,106,717

a

Franklin

U.S.

Equity

Index

ETF

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

32,700

1,086,644

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

108,347

4,251,829

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

10,200

388,008

21,774,937

Domestic

Fixed

Income

4.3%

a

Franklin

U.S.

Core

Bond

ETF

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

30,125

637,746

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

69,677

652,179

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

47,092

170,002

1,459,927

Foreign

Equity

28.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

184,182

1,633,694

a

Franklin

International

Core

Equity

(IU)

Fund

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

433,941

4,361,105

a,b

Franklin

International

Growth

Fund,

Class

R6

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

46,500

670,060

iShares

Core

MSCI

EAFE

ETF

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

12,909

795,711

a

Templeton

Developing

Markets

Trust,

Class

R6

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

70,120

1,147,868

a

Templeton

Foreign

Fund,

Class

R6

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

163,370

1,097,845

9,706,283

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$31,165,865)

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

33,266,395

a

a

a

a

Short

Term

Investments

1.8%

a

Money

Market

Funds

1.5%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

513,740

513,740

Total

Money

Market

Funds

(Cost

$513,740)

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

513,740

Principal

Amount

Repurchase

Agreements

0.3%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$80,527)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$9,239)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$8,464)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$62,824)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$82,115)

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

$

80,489

80,489

Total

Repurchase

Agreements

(Cost

$80,489)

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

80,489

Total

Short

Term

Investments

(Cost

$594,229

)

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

594,229

a

Total

Investments

(Cost

$31,760,094)

100.4%

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

$33,860,624

Other

Assets,

less

Liabilities

(0.4)%

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

(111,877)

Net

Assets

100.0%

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

$33,748,747

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

121

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.21

$13.41

$11.86

$9.88

$11.05

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.13

0.20

0.15

0.18

0.23

Net

realized

and

unrealized

gains

(losses)

...........

(2.46)

2.12

1.69

2.02

(1.03)

Total

from

investment

operations

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

(2.33)

2.32

1.84

2.20

(0.80)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.07)

(0.40)

(0.19)

(0.12)

(0.20)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.40)

(2.52)

(0.29)

(0.22)

(0.37)

Net

asset

value,

end

of

year

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

$10.48

$13.21

$13.41

$11.86

$9.88

Total

return

d

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

(17.54)%

17.34%

15.95%

22.39%

(7.37)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.65%

1.79%

2.03%

2.50%

2.51%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.49%

f

0.46%

f

0.43%

f

0.34%

0.30%

f

Net

investment

income

c

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

1.16%

1.38%

1.27%

1.65%

2.01%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$17,210

$17,727

$12,408

$8,254

$6,104

Portfolio

turnover

rate

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

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$12.92

$13.18

$11.69

$9.75

$10.92

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.05

0.09

0.06

0.09

0.15

Net

realized

and

unrealized

gains

(losses)

...........

(2.41)

2.08

1.66

1.99

(1.02)

Total

from

investment

operations

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

(2.36)

2.17

1.72

2.08

(0.87)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.01)

(0.31)

(0.13)

(0.04)

(0.13)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.34)

(2.43)

(0.23)

(0.14)

(0.30)

Net

asset

value,

end

of

year

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

$10.22

$12.92

$13.18

$11.69

$9.75

Total

return

d

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

(18.19)%

16.49%

15.07%

21.45%

(8.04)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

2.40%

2.54%

2.78%

3.25%

3.26%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.24%

f

1.21%

f

1.18%

f

1.09%

1.05%

f

Net

investment

income

c

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

0.42%

0.60%

0.51%

0.90%

1.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$5,880

$6,236

$5,083

$3,563

$2,338

Portfolio

turnover

rate

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

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

123

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.15

$13.36

$11.82

$9.85

$11.01

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.10

0.17

0.11

0.15

0.19

Net

realized

and

unrealized

gains

(losses)

...........

(2.45)

2.10

1.69

2.01

(1.01)

Total

from

investment

operations

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

(2.35)

2.27

1.80

2.16

(0.82)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.05)

(0.36)

(0.16)

(0.09)

(0.17)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.38)

(2.48)

(0.26)

(0.19)

(0.34)

Net

asset

value,

end

of

year

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

$10.42

$13.15

$13.36

$11.82

$9.85

Total

return

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

(17.79)%

17.07%

15.61%

22.08%

(7.53)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.89%

2.04%

2.29%

2.75%

2.76%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.74%

e

0.71%

e

0.67%

e

0.59%

0.55%

e

Net

investment

income

c

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

0.94%

1.16%

0.95%

1.40%

1.76%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$996

$936

$580

$539

$425

Portfolio

turnover

rate

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

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.24

$13.43

$11.87

$9.89

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.15

0.13

0.18

0.22

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(2.44)

2.24

1.70

2.01

(1.01)

Total

from

investment

operations

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

(2.29)

2.37

1.88

2.23

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.09)

(0.44)

(0.22)

(0.15)

(0.23)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.42)

(2.56)

(0.32)

(0.25)

(0.40)

Capital

contributions

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

0.16

—

—

—

—

Net

asset

value,

end

of

year

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

$10.69

$13.24

$13.43

$11.87

$9.89

Total

return

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

(15.90)%

d

17.72%

16.34%

22.72%

(7.12)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.59%

0.67%

0.87%

1.18%

1.35%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.15%

f

0.12%

f

0.13%

f

0.04%

—%

f

Net

investment

income

c

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

1.29%

0.87%

1.57%

1.95%

2.31%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$4

$8

$12,017

$7,296

$3,573

Portfolio

turnover

rate

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

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(17.14)%.

See

Note

2.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

125

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.22

$13.42

$11.87

$9.90

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.16

0.24

0.21

0.23

0.25

Net

realized

and

unrealized

gains

(losses)

...........

(2.46)

2.11

1.66

1.99

(1.02)

Total

from

investment

operations

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

(2.30)

2.35

1.87

2.22

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.09)

(0.43)

(0.22)

(0.15)

(0.22)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.42)

(2.55)

(0.32)

(0.25)

(0.39)

Net

asset

value,

end

of

year

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

$10.50

$13.22

$13.42

$11.87

$9.90

Total

return

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

(17.30)%

17.60%

16.19%

22.67%

(7.16)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

1.39%

1.54%

1.77%

2.25%

2.26%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.24%

e

0.21%

e

0.19%

e

0.09%

0.05%

e

Net

investment

income

c

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

1.43%

1.61%

1.74%

1.90%

2.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$519

$505

$378

$134

$46

Portfolio

turnover

rate

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

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23

%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

11,363

$

241,350

Domestic

Equity

65.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

42,092

1,535,093

a

Franklin

Growth

Fund,

Class

R6

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

35,329

3,635,030

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

503,087

5,986,741

a

Franklin

U.S.

Equity

Index

ETF

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

24,325

808,337

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

95,074

3,730,960

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

7,625

290,055

15,986,216

Domestic

Fixed

Income

3.9%

a

Franklin

U.S.

Core

Bond

ETF

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

19,346

409,555

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

44,801

419,333

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

35,164

126,941

955,829

Foreign

Equity

28.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

132,656

1,176,660

a

Franklin

International

Core

Equity

(IU)

Fund

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

316,155

3,177,361

a,b

Franklin

International

Growth

Fund,

Class

R6

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

34,674

499,649

iShares

Core

MSCI

EAFE

ETF

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

8,905

548,904

a

Templeton

Developing

Markets

Trust,

Class

R6

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

52,327

856,596

a

Templeton

Foreign

Fund,

Class

R6

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

121,788

818,415

7,077,585

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$23,565,014)

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

24,260,980

a

a

a

a

Short

Term

Investments

1.7%

a

Money

Market

Funds

1.7%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

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

418,686

418,686

Total

Money

Market

Funds

(Cost

$418,686)

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

418,686

Total

Short

Term

Investments

(Cost

$418,686

)

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

418,686

a

Total

Investments

(Cost

$23,983,700)

100.3%

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

$24,679,666

Other

Assets,

less

Liabilities

(0.3)%

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

(69,697)

Net

Assets

100.0%

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

$24,609,969

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

127

a

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.26

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.14

0.27

Net

realized

and

unrealized

gains

(losses)

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

(2.15)

1.58

Total

from

investment

operations

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

(2.01)

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.07)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.25)

(0.59)

Net

asset

value,

end

of

year

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

$9.00

$11.26

Total

return

e

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

(17.81)%

18.52%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

7.64%

13.83%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.44%

h

0.21%

Net

investment

income

d

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

1.47%

2.34%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,631

$325

Portfolio

turnover

rate

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

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

a

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.07

0.28

Net

realized

and

unrealized

gains

(losses)

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

(2.13)

1.56

Total

from

investment

operations

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

(2.06)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.02)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.20)

(0.59)

Net

asset

value,

end

of

year

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

$8.99

$11.25

Total

return

e

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

(18.23)%

18.43%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

8.76%

14.00%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

1.10%

h

0.21%

Net

investment

income

d

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

0.80%

2.49%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$176

$68

Portfolio

turnover

rate

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

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

129

a

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.09

0.23

Net

realized

and

unrealized

gains

(losses)

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

(2.11)

1.61

Total

from

investment

operations

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

(2.02)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.05)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.23)

(0.59)

Net

asset

value,

end

of

year

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

$9.00

$11.25

Total

return

e

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

(17.91)%

18.42%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

7.79%

12.86%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.61%

h

0.21%

Net

investment

income

d

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

1.00%

2.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$32

$37

Portfolio

turnover

rate

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

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

a

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.26

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c

,d

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

0.13

0.16

Net

realized

and

unrealized

gains

(losses)

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

(2.13)

1.69

Total

from

investment

operations

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

(2.00)

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.08)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.26)

(0.59)

Capital

contributions

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

0.02

—

Net

asset

value,

end

of

year

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

$9.02

$11.26

Total

return

e

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

(17.45)%

f

18.56%

Ratios

to

average

net

assets

g

Expenses

before

waiver

and

payments

by

affiliates

h

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

6.87%

13.90%

Expenses

net

of

waiver

and

payments

by

affiliates

h

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

0.20%

i

0.15%

Net

investment

income

b

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

1.39%

1.38%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$9

$11

Portfolio

turnover

rate

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

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(17.62)%.

See

Note

2.

g

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

h

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

i

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

131

a

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c

,d

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

0.13

0.20

Net

realized

and

unrealized

gains

(losses)

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

(2.12)

1.64

Total

from

investment

operations

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

(1.99)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.08)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.26)

(0.59)

Net

asset

value,

end

of

year

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

$9.00

$11.25

Total

return

e

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

(17.59)%

18.41%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

7.40%

14.59%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.25%

h

0.20%

Net

investment

income

d

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

1.35%

1.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$888

$1,096

Portfolio

turnover

rate

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

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23

%

for

the

year

ended

December

31,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

96.5%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

1,294

$

27,485

Domestic

Equity

63.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

4,613

168,239

a

Franklin

Growth

Fund,

Class

R6

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

3,859

397,047

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

52,040

619,279

a

Franklin

U.S.

Equity

Index

ETF

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

2,650

88,061

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

11,055

433,828

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

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

850

32,334

1,738,788

Domestic

Fixed

Income

3.9%

a

Franklin

U.S.

Core

Bond

ETF

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

2,175

46,045

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

4,909

45,948

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

4,165

15,036

107,029

Foreign

Equity

28.1%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

14,429

127,983

a

Franklin

International

Core

Equity

(IU)

Fund

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

34,770

349,433

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

3,763

54,227

iShares

Core

MSCI

EAFE

ETF

.........................................

839

51,717

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

5,685

93,071

a

Templeton

Foreign

Fund,

Class

R6

......................................

13,393

89,999

766,430

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$2,932,624)

.................................................................

2,639,732

a

a

a

a

Short

Term

Investments

1.6%

a

Money

Market

Funds

1.6%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

..................

43,913

43,913

Total

Money

Market

Funds

(Cost

$43,913)

......................................

43,913

Total

Short

Term

Investments

(Cost

$43,913

)

...................................

43,913

a

Total

Investments

(Cost

$2,976,537)

98.1%

.....................................

$2,683,645

Other

Assets,

less

Liabilities

1.9%

.............................................

52,033

Net

Assets

100.0%

...........................................................

$2,735,678

See

Abbreviations

on

page

180

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

133

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$14,107,096

$2,461,600

$7,794,525

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

36,776,449

31,713,262

108,221,291

Cost

-

Unaffiliated

repurchase

agreements

....................

—

123,416

254,641

Value

-

Unaffiliated

issuers

................................

$13,087,411

$2,215,013

$7,084,854

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

32,003,815

30,357,876

107,146,776

Value

-

Unaffiliated

repurchase

agreements

....................

—

123,416

254,641

Cash

..................................................

17,986

—

205

Receivables:

Investment

securities

sold

.................................

223,951

—

—

Capital

shares

sold

......................................

12,074

1,260

12,904

Dividends

and

interest

...................................

98,594

1,458

6,068

Affiliates

..............................................

22,689

6,716

1,237

Total

assets

........................................

45,466,520

32,705,739

114,506,685

Liabilities:

Payables:

Capital

shares

redeemed

.................................

29,835

95,259

40,321

Distribution

fees

........................................

12,390

9,557

32,324

Transfer

agent

fees

......................................

14,695

8,622

29,392

Professional

fees

.......................................

26,063

17,023

17,753

Trustees'

fees

and

expenses

...............................

1,163

1,165

1,144

Accrued

expenses

and

other

liabilities

.........................

9,608

12,570

6,720

Total

liabilities

.......................................

93,754

144,196

127,654

Net

assets,

at

value

...............................

$45,372,766

$32,561,543

$114,379,031

Net

assets

consist

of:

Paid-in

capital

...........................................

$53,372,411

$34,756,342

$116,932,118

Total

distributable

earnings

(losses)

...........................

(7,999,645)

(2,194,799)

(2,553,087)

Net

assets,

at

value

...............................

$45,372,766

$32,561,543

$114,379,031

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

134

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$36,998,864

$27,491,356

$97,042,873

Shares

outstanding

......................................

3,856,780

2,598,781

8,786,763

Net

asset

value

per

share

a

................................

$9.59

$10.58

$11.04

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$10.15

$11.20

$11.68

Class

C:

Net

assets,

at

value

.....................................

$4,144,858

$3,796,130

$12,139,989

Shares

outstanding

......................................

437,238

361,590

1,122,859

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$9.48

$10.50

$10.81

Class

R:

Net

assets,

at

value

.....................................

$1,748,079

$649,807

$1,953,782

Shares

outstanding

......................................

182,817

61,448

177,621

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.56

$10.57

$11.00

Class

R6:

Net

assets,

at

value

.....................................

$67,106

$3,893

$670,453

Shares

outstanding

......................................

6,961

358

60,470

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.64

$10.86

$11.09

Advisor

Class:

Net

assets,

at

value

.....................................

$2,413,859

$620,357

$2,571,934

Shares

outstanding

......................................

250,719

58,430

232,218

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.63

$10.62

$11.08

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

135

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$3,129,282

$5,834,771

$1,844,951

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

53,225,788

104,086,819

37,857,808

Cost

-

Unaffiliated

repurchase

agreements

....................

329,247

306,643

129,506

Value

-

Unaffiliated

issuers

................................

$2,933,998

$5,377,124

$1,699,644

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

53,891,654

107,414,353

39,722,240

Value

-

Unaffiliated

repurchase

agreements

....................

329,247

306,643

129,506

Cash

..................................................

—

181

—

Receivables:

Capital

shares

sold

......................................

31,400

48,135

83,589

Dividends

and

interest

...................................

3,533

7,940

3,224

Affiliates

..............................................

13,312

3,342

13,516

Other

assets

............................................

—

17,104

—

Total

assets

........................................

57,203,144

113,174,822

41,651,719

Liabilities:

Payables:

Investment

securities

purchased

............................

245,057

—

230,387

Capital

shares

redeemed

.................................

28,471

7,786

64,341

Distribution

fees

........................................

18,360

33,794

13,083

Transfer

agent

fees

......................................

25,259

26,345

23,252

Professional

fees

.......................................

16,881

19,138

16,368

Trustees'

fees

and

expenses

...............................

1,155

1,141

1,159

Accrued

expenses

and

other

liabilities

.........................

10,582

5,062

11,317

Total

liabilities

.......................................

345,765

93,266

359,907

Net

assets,

at

value

...............................

$56,857,379

$113,081,556

$41,291,812

Net

assets

consist

of:

Paid-in

capital

...........................................

$58,364,881

$110,532,321

$39,679,613

Total

distributable

earnings

(losses)

...........................

(1,507,502)

2,549,235

1,612,199

Net

assets,

at

value

...............................

$56,857,379

$113,081,556

$41,291,812

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

136

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$44,099,214

$91,064,098

$32,111,744

Shares

outstanding

......................................

3,860,258

7,751,285

2,792,816

Net

asset

value

per

share

a

................................

$11.42

$11.75

$11.50

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$12.08

$12.43

$12.17

Class

C:

Net

assets,

at

value

.....................................

$9,642,399

$14,548,731

$6,696,942

Shares

outstanding

......................................

858,669

1,280,253

596,553

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.23

$11.36

$11.23

Class

R:

Net

assets,

at

value

.....................................

$1,294,752

$3,880,950

$1,113,618

Shares

outstanding

......................................

113,631

330,744

96,872

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.39

$11.73

$11.50

Class

R6:

Net

assets,

at

value

.....................................

$50,622

$91,462

$213,151

Shares

outstanding

......................................

4,374

7,700

18,375

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.57

$11.88

$11.60

Advisor

Class:

Net

assets,

at

value

.....................................

$1,770,392

$3,496,315

$1,156,357

Shares

outstanding

......................................

154,227

293,964

99,899

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.48

$11.89

$11.58

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

137

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$1,768,687

$852,339

$585,159

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

69,492,229

30,827,266

23,398,541

Cost

-

Unaffiliated

repurchase

agreements

....................

195,873

80,489

—

Value

-

Unaffiliated

issuers

................................

$1,590,435

$795,711

$548,904

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

74,310,449

32,984,424

24,130,762

Value

-

Unaffiliated

repurchase

agreements

....................

195,873

80,489

—

Cash

..................................................

185

—

83,639

Receivables:

Capital

shares

sold

......................................

40,639

53,405

19,161

Dividends

and

interest

...................................

6,418

2,975

3,458

Affiliates

..............................................

1,414

19,605

16,231

Total

assets

........................................

76,145,413

33,936,609

24,802,155

Liabilities:

Payables:

Investment

securities

purchased

............................

—

90,297

135,973

Capital

shares

redeemed

.................................

6,086

31,223

6,799

Distribution

fees

........................................

23,454

11,633

9,170

Transfer

agent

fees

......................................

24,006

26,594

13,949

Professional

fees

.......................................

17,200

16,944

16,102

Trustees'

fees

and

expenses

...............................

1,152

1,162

1,163

Accrued

expenses

and

other

liabilities

.........................

3,876

10,009

9,030

Total

liabilities

.......................................

75,774

187,862

192,186

Net

assets,

at

value

...............................

$76,069,639

$33,748,747

$24,609,969

Net

assets

consist

of:

Paid-in

capital

...........................................

$71,372,955

$31,885,774

$23,934,573

Total

distributable

earnings

(losses)

...........................

4,696,684

1,862,973

675,396

Net

assets,

at

value

...............................

$76,069,639

$33,748,747

$24,609,969

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

138

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$62,060,825

$24,593,622

$17,210,218

Shares

outstanding

......................................

5,170,246

2,129,608

1,642,673

Net

asset

value

per

share

a

................................

$12.00

$11.55

$10.48

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

..............................................

$12.70

$12.22

$11.09

Class

C:

Net

assets,

at

value

.....................................

$10,536,929

$6,563,749

$5,879,989

Shares

outstanding

......................................

915,299

577,247

575,330

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.51

$11.37

$10.22

Class

R:

Net

assets,

at

value

.....................................

$2,178,400

$1,608,412

$996,456

Shares

outstanding

......................................

182,556

139,018

95,603

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.93

$11.57

$10.42

Class

R6:

Net

assets,

at

value

.....................................

$14,802

$4,530

$4,315

Shares

outstanding

......................................

1,180

389

404

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.55

$11.66

$10.69

Advisor

Class:

Net

assets,

at

value

.....................................

$1,278,683

$978,434

$518,991

Shares

outstanding

......................................

105,347

83,983

49,449

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.14

$11.65

$10.50

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

139

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$57,621

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

2,918,916

Value

-

Unaffiliated

issuers

..................................................................

$51,717

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

2,631,928

Receivables:

Capital

shares

sold

........................................................................

2,475

Dividends

...............................................................................

248

Affiliates

................................................................................

55,400

Other

assets

..............................................................................

24,526

Total

assets

..........................................................................

2,766,294

Liabilities:

Payables:

Distribution

fees

..........................................................................

506

Transfer

agent

fees

........................................................................

2,390

Professional

fees

.........................................................................

25,633

Accrued

expenses

and

other

liabilities

...........................................................

2,087

Total

liabilities

.........................................................................

30,616

Net

assets,

at

value

.................................................................

$2,735,678

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$3,058,736

Total

distributable

earnings

(losses)

.............................................................

(323,058)

Net

assets,

at

value

.................................................................

$2,735,678

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

140

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$1,631,142

Shares

outstanding

........................................................................

181,193

Net

asset

value

per

share

a

..................................................................

$9.00

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$9.52

Class

C:

Net

assets,

at

value

.......................................................................

$175,627

Shares

outstanding

........................................................................

19,533

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$8.99

Class

R:

Net

assets,

at

value

.......................................................................

$31,879

Shares

outstanding

........................................................................

3,543

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.00

Class

R6:

Net

assets,

at

value

.......................................................................

$9,017

Shares

outstanding

........................................................................

1,000

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.02

Advisor

Class:

Net

assets,

at

value

.......................................................................

$888,013

Shares

outstanding

........................................................................

98,714

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.00

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

141

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$633,873

$114,724

$335,883

Non-controlled

affiliates

(Note

3

f

)

...........................

1,533,082

864,824

2,630,445

Interest:

Unaffiliated

issuers

......................................

602,948

777

1,671

Total

investment

income

.................................

2,769,903

980,325

2,967,999

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

126,227

92,317

303,412

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

102,106

77,248

254,468

    Class

C

..............................................

51,353

46,205

141,545

    Class

R

..............................................

9,550

3,293

11,172

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

71,351

38,466

148,789

    Class

C

..............................................

8,857

5,733

20,572

    Class

R

..............................................

3,342

821

3,253

    Class

R6

.............................................

99

29

134

    Advisor

Class

..........................................

4,328

856

3,814

Custodian

fees

(Note

4

)

....................................

490

—

239

Registration

and

filing

fees

..................................

77,625

80,427

81,985

Professional

fees

.........................................

67,233

44,109

47,143

Trustees'

fees

and

expenses

................................

1,717

1,575

2,474

Other

..................................................

9,067

5,607

4,306

Total

expenses

.......................................

533,345

396,686

1,023,306

Expense

reductions

(Note

4

)

.............................

(19)

(10)

(35)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(344,684)

(188,561)

(337,335)

Net

expenses

.......................................

188,642

208,115

685,936

Net

investment

income

..............................

2,581,261

772,210

2,282,063

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(1,451,307)

(153,893)

(570,619)

Non-controlled

affiliates

(Note

3

f

)

..........................

(995,617)

(866,585)

(2,209,040)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

62,789

423,870

1,746,768

Net

realized

gain

(loss)

................................

(2,384,135)

(596,608)

(1,032,891)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(1,903,638)

(370,155)

(1,138,567)

Non-controlled

affiliates

(Note

3

f

)

..........................

(5,222,078)

(6,591,347)

(22,666,171)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(7,125,716)

(6,961,502)

(23,804,738)

Net

realized

and

unrealized

gain

(loss)

..........................

(9,509,851)

(7,558,110)

(24,837,629)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(6,928,590)

$(6,785,900)

$(22,555,566)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

142

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$138,282

$229,840

$69,653

Non-controlled

affiliates

(Note

3

f

)

...........................

1,175,220

2,182,514

674,409

Interest:

Unaffiliated

issuers

......................................

1,158

1,841

895

Total

investment

income

.................................

1,314,660

2,414,195

744,957

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

145,623

288,895

103,294

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

111,893

229,246

78,737

    Class

C

..............................................

103,681

156,867

69,489

    Class

R

..............................................

6,771

18,930

6,383

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

94,312

154,755

90,584

    Class

C

..............................................

21,737

26,254

19,855

    Class

R

..............................................

2,843

6,346

3,623

    Class

R6

.............................................

125

382

14

    Advisor

Class

..........................................

3,695

5,984

3,494

Custodian

fees

(Note

4

)

....................................

106

199

84

Registration

and

filing

fees

..................................

80,284

71,027

79,834

Professional

fees

.........................................

43,566

46,911

42,118

Trustees'

fees

and

expenses

................................

1,789

2,401

1,608

Interest

expense

.........................................

912

110

1,004

Other

..................................................

6,792

3,488

5,299

Total

expenses

.......................................

624,129

1,011,795

505,420

Expense

reductions

(Note

4

)

.............................

(23)

(44)

(20)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(265,447)

(328,135)

(246,553)

Net

expenses

.......................................

358,659

683,616

258,847

Net

investment

income

..............................

956,001

1,730,579

486,110

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(397,322)

(622,515)

(237,125)

Non-controlled

affiliates

(Note

3

f

)

..........................

(2,551,204)

(2,008,846)

(762,790)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

1,035,208

2,218,884

867,414

Net

realized

gain

(loss)

................................

(1,913,318)

(412,477)

(132,501)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(393,358)

(1,042,674)

(414,110)

Non-controlled

affiliates

(Note

3

f

)

..........................

(9,741,729)

(22,604,670)

(8,020,406)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(10,135,087)

(23,647,344)

(8,434,516)

Net

realized

and

unrealized

gain

(loss)

..........................

(12,048,405)

(24,059,821)

(8,567,017)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(11,092,404)

$(22,329,242)

$(8,080,907)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

143

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$67,647

$30,613

$21,458

Non-controlled

affiliates

(Note

3

f

)

...........................

1,216,879

518,629

372,516

Interest:

Unaffiliated

issuers

......................................

1,264

813

—

Total

investment

income

.................................

1,285,790

550,055

393,974

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

197,527

85,992

59,534

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

159,970

62,539

41,830

    Class

C

..............................................

110,487

67,320

57,106

    Class

R

..............................................

13,054

8,379

4,503

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

156,608

109,273

104,063

    Class

C

..............................................

27,036

29,404

35,524

    Class

R

..............................................

6,352

7,326

5,599

    Class

R6

.............................................

48

—

—

    Advisor

Class

..........................................

3,317

4,240

2,897

Custodian

fees

(Note

4

)

....................................

126

73

551

Registration

and

filing

fees

..................................

79,740

80,122

78,482

Professional

fees

.........................................

45,469

44,203

41,437

Trustees'

fees

and

expenses

................................

2,017

1,540

1,419

Other

..................................................

2,248

2,267

3,098

Total

expenses

.......................................

803,999

502,678

436,043

Expense

reductions

(Note

4

)

.............................

(36)

(20)

(27)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(323,472)

(281,857)

(276,079)

Net

expenses

.......................................

480,491

220,801

159,937

Net

investment

income

..............................

805,299

329,254

234,037

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(455,710)

(251,609)

(161,354)

Non-controlled

affiliates

(Note

3

f

)

..........................

(1,209,637)

(706,386)

(406,409)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

1,800,560

798,765

566,114

Net

realized

gain

(loss)

................................

135,213

(159,230)

(1,649)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(679,924)

(331,113)

(202,870)

Non-controlled

affiliates

(Note

3

f

)

..........................

(16,460,714)

(6,904,741)

(4,740,922)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(17,140,638)

(7,235,854)

(4,943,792)

Net

realized

and

unrealized

gain

(loss)

..........................

(17,005,425)

(7,395,084)

(4,945,441)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(16,200,126)

$(7,065,830)

$(4,711,404)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

year

ended

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

144

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$2,044

Non-controlled

affiliates

(Note

3

f

)

.............................................................

37,905

Total

investment

income

...................................................................

39,949

Expenses:

Management

fees

(Note

3

a

)

...................................................................

5,635

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

2,414

    Class

C

................................................................................

1,072

    Class

R

................................................................................

119

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

8,388

    Class

C

................................................................................

903

    Class

R

................................................................................

237

    Class

R6

...............................................................................

19

    Advisor

Class

............................................................................

6,793

Custodian

fees

(Note

4

)

......................................................................

3

Reports

to

shareholders

fees

..................................................................

3,296

Registration

and

filing

fees

....................................................................

69,152

Professional

fees

...........................................................................

62,216

Trustees'

fees

and

expenses

..................................................................

20

Amortization

of

offering

costs

(Note

1f

)

...........................................................

6,717

Other

....................................................................................

4,390

Total

expenses

.........................................................................

171,374

Expense

reductions

(Note

4

)

...............................................................

(7)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(162,419)

Net

expenses

.........................................................................

8,948

Net

investment

income

................................................................

31,001

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(15,115)

Non-controlled

affiliates

(Note

3

f

)

............................................................

(80,438)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

............................................................

60,433

Net

realized

gain

(loss)

..................................................................

(35,120)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(18,797)

Non-controlled

affiliates

(Note

3

f

)

............................................................

(363,255)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(382,052)

Net

realized

and

unrealized

gain

(loss)

............................................................

(417,172)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(386,171)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

145

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$2,581,261

$1,712,217

$772,210

$676,522

Net

realized

gain

(loss)

............

(2,384,135)

3,699,065

(596,608)

4,065,035

Net

change

in

unrealized

appreciation

(depreciation)

.................

(7,125,716)

(2,340,332)

(6,961,502)

(505,059)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(6,928,590)

3,070,950

(6,785,900)

4,236,498

Distributions

to

shareholders:

Class

A

........................

(2,225,626)

(2,738,432)

(1,072,841)

(3,188,266)

Class

C

........................

(231,774)

(412,129)

(121,787)

(525,427)

Class

R

........................

(98,684)

(128,601)

(21,475)

(63,968)

Class

R6

.......................

(6,596)

(115,087)

(153)

(81,115)

Advisor

Class

...................

(142,681)

(164,457)

(25,341)

(73,902)

Total

distributions

to

shareholders

.....

(2,705,361)

(3,558,706)

(1,241,597)

(3,932,678)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(1,281,795)

6,205,539

(2,512,663)

6,563,995

Class

C

........................

(1,666,149)

(2,523,293)

(1,393,273)

(953,946)

Class

R

........................

(89,444)

113,112

30,324

(47,956)

Class

R6

.......................

33,869

(4,124,405)

89

(5,197,373)

Advisor

Class

...................

58,529

849,592

(56,975)

144,346

Total

capital

share

transactions

.......

(2,944,990)

520,545

(3,932,498)

509,066

Net

increase

(decrease)

in

net

assets

.....................

(12,578,941)

32,789

(11,959,995)

812,886

Net

assets:

Beginning

of

year

..................

57,951,707

57,918,918

44,521,538

43,708,652

End

of

year

......................

$45,372,766

$57,951,707

$32,561,543

$44,521,538

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

146

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$2,282,063

$2,079,645

$956,001

$991,679

Net

realized

gain

(loss)

............

(1,032,891)

16,961,519

(1,913,318)

10,039,265

Net

change

in

unrealized

appreciation

(depreciation)

.................

(23,804,738)

(3,404,166)

(10,135,087)

(1,595,297)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(22,555,566)

15,636,998

(11,092,404)

9,435,647

Distributions

to

shareholders:

Class

A

........................

(3,674,030)

(12,998,389)

(1,583,281)

(6,264,146)

Class

C

........................

(429,078)

(1,952,002)

(305,484)

(1,503,515)

Class

R

........................

(69,346)

(332,811)

(45,630)

(187,569)

Class

R6

.......................

(21,254)

(341,402)

(595)

(350,602)

Advisor

Class

...................

(100,724)

(346,827)

(64,032)

(243,779)

Total

distributions

to

shareholders

.....

(4,294,432)

(15,971,431)

(1,999,022)

(8,549,611)

Capital

share

transactions:

(Note

2

)

Class

A

........................

950,061

23,268,401

4,257,445

17,136,403

Class

C

........................

(2,391,827)

(4,380,046)

(228,935)

1,538,532

Class

R

........................

(630,963)

(29,946)

84,190

360,153

Class

R6

.......................

240,106

(16,817,248)

13,369

(26,167,778)

Advisor

Class

...................

95,139

212,806

218,000

446,814

Total

capital

share

transactions

.......

(1,737,484)

2,253,967

4,344,069

(6,685,876)

Net

increase

(decrease)

in

net

assets

.....................

(28,587,482)

1,919,534

(8,747,357)

(5,799,840)

Net

assets:

Beginning

of

year

..................

142,966,513

141,046,979

65,604,736

71,404,576

End

of

year

......................

$114,379,031

$142,966,513

$56,857,379

$65,604,736

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

147

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,730,579

$1,851,350

$486,110

$691,677

Net

realized

gain

(loss)

............

(412,477)

23,498,603

(132,501)

10,719,607

Net

change

in

unrealized

appreciation

(depreciation)

.................

(23,647,344)

(5,330,755)

(8,434,516)

(2,015,167)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(22,329,242)

20,019,198

(8,080,907)

9,396,117

Distributions

to

shareholders:

Class

A

........................

(3,409,043)

(16,155,657)

(1,170,266)

(6,619,494)

Class

C

........................

(504,214)

(2,902,391)

(208,787)

(1,504,259)

Class

R

........................

(132,349)

(632,310)

(33,215)

(337,502)

Class

R6

.......................

(3,441)

(721,983)

(10,610)

(625,662)

Advisor

Class

...................

(137,211)

(621,466)

(48,604)

(177,487)

Total

distributions

to

shareholders

.....

(4,186,258)

(21,033,807)

(1,471,482)

(9,264,404)

Capital

share

transactions:

(Note

2

)

Class

A

........................

8,084,547

24,068,445

4,136,064

12,737,030

Class

C

........................

(297,182)

(2,596,763)

350,228

1,583,625

Class

R

........................

608,222

(367,212)

(346,086)

359,360

Class

R6

.......................

17,337

(33,272,877)

(33,477)

(28,247,644)

Advisor

Class

...................

390,255

580,342

502,914

499,245

Total

capital

share

transactions

.......

8,803,179

(11,588,065)

4,609,643

(13,068,384)

Net

increase

(decrease)

in

net

assets

.....................

(17,712,321)

(12,602,674)

(4,942,746)

(12,936,671)

Net

assets:

Beginning

of

year

..................

130,793,877

143,396,551

46,234,558

59,171,229

End

of

year

......................

$113,081,556

$130,793,877

$41,291,812

$46,234,558

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

148

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$805,299

$1,161,188

$329,254

$571,815

Net

realized

gain

(loss)

............

135,213

19,471,341

(159,230)

11,005,422

Net

change

in

unrealized

appreciation

(depreciation)

.................

(17,140,638)

(3,699,419)

(7,235,854)

(2,318,687)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(16,200,126)

16,933,110

(7,065,830)

9,258,550

Distributions

to

shareholders:

Class

A

........................

(2,450,238)

(13,185,030)

(960,821)

(6,412,318)

Class

C

........................

(373,600)

(2,492,203)

(222,132)

(1,716,148)

Class

R

........................

(96,145)

(598,679)

(66,384)

(498,620)

Class

R6

.......................

(205)

(584,253)

(202)

(541,844)

Advisor

Class

...................

(54,042)

(284,717)

(41,024)

(203,092)

Total

distributions

to

shareholders

.....

(2,974,230)

(17,144,882)

(1,290,563)

(9,372,022)

Capital

share

transactions:

(Note

2

)

Class

A

........................

4,747,600

15,804,135

295,982

12,297,908

Class

C

........................

(238,740)

(689,917)

168,563

1,540,871

Class

R

........................

(510,729)

881,792

129,424

(522,124)

Class

R6

.......................

12,553

(26,662,590)

3,568

(25,991,520)

Advisor

Class

...................

23,043

572,962

257,479

288,068

Total

capital

share

transactions

.......

4,033,727

(10,093,618)

855,016

(12,386,797)

Net

increase

(decrease)

in

net

assets

.....................

(15,140,629)

(10,305,390)

(7,501,377)

(12,500,269)

Net

assets:

Beginning

of

year

..................

91,210,268

101,515,658

41,250,124

53,750,393

End

of

year

......................

$76,069,639

$91,210,268

$33,748,747

$41,250,124

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

149

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$234,037

$346,227

$31,001

$21,947

Net

realized

gain

(loss)

............

(1,649)

5,143,531

(35,120)

91,200

Net

change

in

unrealized

appreciation

(depreciation)

.................

(4,943,792)

(2,290)

(382,052)

89,160

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(4,711,404)

5,487,468

(386,171)

202,307

Distributions

to

shareholders:

Class

A

........................

(606,049)

(2,853,427)

(31,483)

(15,484)

Class

C

........................

(177,071)

(994,136)

(2,940)

(3,154)

Class

R

........................

(30,805)

(149,684)

(783)

(1,891)

Class

R6

.......................

(173)

(267,234)

(268)

(597)

Advisor

Class

...................

(17,314)

(82,790)

(25,855)

(57,208)

Total

distributions

to

shareholders

.....

(831,412)

(4,347,271)

(61,329)

(78,334)

Capital

share

transactions:

(Note

2

)

Class

A

........................

3,373,309

5,782,053

1,502,222

322,209

Class

C

........................

988,485

1,308,941

130,123

67,409

Class

R

........................

263,716

386,733

2,063

35,624

Class

R6

.......................

(2,225)

(13,811,173)

17

9,229

Advisor

Class

...................

117,736

139,711

11,844

978,465

Total

capital

share

transactions

.......

4,741,021

(6,193,735)

1,646,269

1,412,936

Net

increase

(decrease)

in

net

assets

.....................

(801,795)

(5,053,538)

1,198,769

1,536,909

Net

assets:

Beginning

of

year

..................

25,411,764

30,465,302

1,536,909

—

End

of

year

......................

$24,609,969

$25,411,764

$2,735,678

$1,536,909

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

150

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds, ten

of

which

are

included

in

this

report

(Funds).

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

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.

Certain

or

all

Funds

invest

primarily

in

affiliated

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

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.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The

Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Funds

calculate

the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

151

franklintempleton.com

Annual

Report

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

year

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

December

30,

2022.

c.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

d.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2022, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

The

Franklin

LifeSmart

TM

Retirement

Income

Fund

employs

a

managed

distribution

policy.

Under

this

policy,

the

Fund

will

distribute

level

monthly

distributions

in

any

given

year

regardless

of

the

performance

of

the

Fund;

however,

the

twelfth

monthly

payment

may

be

greater

than

the

initially

anticipated

amount

if

additional

income

or

capital

gains

are

required

to

be

distributed.

These

distributions

may

include

income

and

capital

gains

generated

by

the

Underlying

Funds,

as

well

as

a

possible

return

of

capital

component,

if

necessary,

to

meet

the

annual

distribution

rate.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year

in

response

to

market

conditions.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

152

franklintempleton.com

Annual

Report

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Organization

and

Offering

Costs

Organization

costs

were

expensed

as

incurred.

Offering

costs

are

amortized

on

a

straight

line

basis

over

twelve

months.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

153

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

635,127

$6,640,061

360,430

$4,138,825

Shares

issued

in

reinvestment

of

distributions

..........

219,854

2,195,999

100,659

1,071,091

Shares

redeemed

...............................

(1,001,551)

(10,117,855)

(684,947)

(7,722,579)

Net

increase

(decrease)

..........................

(146,570)

$(1,281,795)

(223,858)

$(2,512,663)

Year

ended

December

31,

2021

Shares

sold

a

...................................

878,539

$10,294,955

767,024

$10,342,759

Shares

issued

in

reinvestment

of

distributions

..........

233,814

2,710,183

242,737

3,182,560

Shares

redeemed

...............................

(581,442)

(6,799,599)

(516,263)

(6,961,324)

Net

increase

(decrease)

..........................

530,911

$6,205,539

493,498

$6,563,995

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

67,069

$706,277

46,738

$530,032

Shares

issued

in

reinvestment

of

distributions

..........

23,051

227,867

11,499

121,107

Shares

redeemed

a

..............................

(251,814)

(2,600,293)

(179,646)

(2,044,412)

Net

increase

(decrease)

..........................

(161,694)

$(1,666,149)

(121,409)

$(1,393,273)

Year

ended

December

31,

2021

Shares

sold

...................................

130,078

$1,504,498

82,486

$1,095,715

Shares

issued

in

reinvestment

of

distributions

..........

35,197

402,711

40,159

522,493

Shares

redeemed

a

..............................

(381,629)

(4,430,502)

(190,825)

(2,572,154)

Net

increase

(decrease)

..........................

(216,354)

$(2,523,293)

(68,180)

$(953,946)

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

10,781

$109,293

10,797

$118,769

Shares

issued

in

reinvestment

of

distributions

..........

9,919

98,683

2,022

21,475

Shares

redeemed

...............................

(29,527)

(297,420)

(9,667)

(109,920)

Net

increase

(decrease)

..........................

(8,827)

$(89,444)

3,152

$30,324

Year

ended

December

31,

2021

Shares

sold

...................................

19,568

$227,826

33,424

$442,150

Shares

issued

in

reinvestment

of

distributions

..........

11,132

128,601

4,886

63,967

Shares

redeemed

...............................

(21,006)

(243,315)

(40,555)

(554,073)

Net

increase

(decrease)

..........................

9,694

$113,112

(2,245)

$(47,956)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

154

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

18,343

$203,725

—

$—

Capital

c

ontributions

.............................

—

—

—

89

b

Shares

issued

in

reinvestment

of

distributions

..........

67

742

—

—

Shares

redeemed

...............................

(16,261)

(170,598)

—

—

Net

increase

(decrease)

..........................

2,149

$33,869

—

$89

Year

ended

December

31,

2021

Shares

sold

...................................

167,173

$1,964,575

40,240

$539,421

Shares

issued

in

reinvestment

of

distributions

..........

148

1,712

3

48

Shares

redeemed

...............................

(513,086)

(6,090,692)

(412,496)

(5,736,842)

Net

increase

(decrease)

..........................

(345,765)

$(4,124,405)

(372,253)

$(5,197,373)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

88,532

$916,603

1,712

$18,993

Shares

issued

in

reinvestment

of

distributions

..........

13,681

137,345

2,370

25,341

Shares

redeemed

...............................

(97,171)

(995,419)

(8,994)

(101,309)

Net

increase

(decrease)

..........................

5,042

$58,529

(4,912)

$(56,975)

Year

ended

December

31,

2021

Shares

sold

...................................

86,986

$1,024,260

13,132

$176,166

Shares

issued

in

reinvestment

of

distributions

..........

13,648

158,707

5,616

73,902

Shares

redeemed

...............................

(28,235)

(333,375)

(7,987)

(105,722)

Net

increase

(decrease)

..........................

72,399

$849,592

10,761

$144,346

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

1,278,837

$14,936,648

987,394

$12,064,139

Shares

issued

in

reinvestment

of

distributions

..........

331,310

3,662,968

138,880

1,581,803

Shares

redeemed

...............................

(1,494,194)

(17,649,555)

(773,024)

(9,388,497)

Net

increase

(decrease)

..........................

115,953

$950,061

353,250

$4,257,445

Year

ended

December

31,

2021

Shares

sold

a

...................................

1,995,202

$29,010,592

1,118,157

$17,123,074

Shares

issued

in

reinvestment

of

distributions

..........

935,404

12,920,431

435,728

6,246,397

Shares

redeemed

...............................

(1,286,278)

(18,662,622)

(409,816)

(6,233,068)

Net

increase

(decrease)

..........................

1,644,328

$23,268,401

1,144,069

$17,136,403

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

155

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

207,295

$2,410,456

260,662

$3,130,704

Shares

issued

in

reinvestment

of

distributions

..........

39,666

429,064

27,224

305,245

Shares

redeemed

a

..............................

(450,894)

(5,231,347)

(306,601)

(3,664,884)

Net

increase

(decrease)

..........................

(203,933)

$(2,391,827)

(18,715)

$(228,935)

Year

ended

December

31,

2021

Shares

sold

...................................

247,050

$3,501,733

209,976

$3,148,993

Shares

issued

in

reinvestment

of

distributions

..........

144,046

1,951,938

106,489

1,502,679

Shares

redeemed

a

..............................

(685,739)

(9,833,717)

(208,118)

(3,113,140)

Net

increase

(decrease)

..........................

(294,643)

$(4,380,046)

108,347

$1,538,532

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

40,559

$476,198

25,207

$310,988

Shares

issued

in

reinvestment

of

distributions

..........

6,314

69,346

4,010

45,608

Shares

redeemed

...............................

(94,686)

(1,176,507)

(22,191)

(272,406)

Net

increase

(decrease)

..........................

(47,813)

$(630,963)

7,026

$84,190

Year

ended

December

31,

2021

Shares

sold

...................................

25,401

$365,549

22,477

$342,363

Shares

issued

in

reinvestment

of

distributions

..........

24,200

332,811

13,106

187,569

Shares

redeemed

...............................

(50,873)

(728,306)

(11,447)

(169,779)

Net

increase

(decrease)

..........................

(1,272)

$(29,946)

24,136

$360,153

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

19,066

$220,670

4,021

$47,255

Capital

c

ontributions

.............................

—

—

—

92

b

Shares

issued

in

reinvestment

of

distributions

..........

1,918

21,253

52

595

Shares

redeemed

...............................

(169)

(1,817)

(2,468)

(34,573)

Net

increase

(decrease)

..........................

20,815

$240,106

1,605

$13,369

Year

ended

December

31,

2021

Shares

sold

...................................

181,182

$2,609,770

344,614

$5,214,446

Shares

issued

in

reinvestment

of

distributions

..........

4,384

60,810

386

5,596

Shares

redeemed

...............................

(1,308,198)

(19,487,828)

(1,982,748)

(31,387,820)

Net

increase

(decrease)

..........................

(1,122,632)

$(16,817,248)

(1,637,748)

$(26,167,778)

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

156

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

43,449

$527,001

22,627

$274,836

Shares

issued

in

reinvestment

of

distributions

..........

8,418

93,452

5,559

63,597

Shares

redeemed

...............................

(42,545)

(525,314)

(9,688)

(120,433)

Net

increase

(decrease)

..........................

9,322

$95,139

18,498

$218,000

Year

ended

December

31,

2021

Shares

sold

...................................

56,538

$797,042

44,175

$692,384

Shares

issued

in

reinvestment

of

distributions

..........

23,267

322,458

16,837

242,368

Shares

redeemed

...............................

(64,542)

(906,694)

(32,315)

(487,938)

Net

increase

(decrease)

..........................

15,263

$212,806

28,697

$446,814

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

1,209,965

$15,192,429

555,994

$6,852,127

Shares

issued

in

reinvestment

of

distributions

..........

291,267

3,392,469

102,807

1,170,329

Shares

redeemed

...............................

(851,728)

(10,500,351)

(305,861)

(3,886,392)

Net

increase

(decrease)

..........................

649,504

$8,084,547

352,940

$4,136,064

Year

ended

December

31,

2021

Shares

sold

a

...................................

1,319,958

$21,444,570

707,756

$11,755,225

Shares

issued

in

reinvestment

of

distributions

..........

1,081,774

16,083,299

452,373

6,616,403

Shares

redeemed

...............................

(834,142)

(13,459,424)

(342,250)

(5,634,598)

Net

increase

(decrease)

..........................

1,567,590

$24,068,445

817,879

$12,737,030

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

178,539

$2,176,700

110,551

$1,342,369

Shares

issued

in

reinvestment

of

distributions

..........

44,659

504,112

18,751

208,790

Shares

redeemed

a

..............................

(243,419)

(2,977,994)

(99,476)

(1,200,931)

Net

increase

(decrease)

..........................

(20,221)

$(297,182)

29,826

$350,228

Year

ended

December

31,

2021

Shares

sold

...................................

215,158

$3,391,865

95,273

$1,537,776

Shares

issued

in

reinvestment

of

distributions

..........

201,075

2,901,877

105,040

1,499,819

Shares

redeemed

a

..............................

(557,504)

(8,890,505)

(90,679)

(1,453,970)

Net

increase

(decrease)

..........................

(141,271)

$(2,596,763)

109,634

$1,583,625

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

157

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

60,332

$748,720

33,670

$402,149

Shares

issued

in

reinvestment

of

distributions

..........

11,371

132,349

2,916

33,215

Shares

redeemed

...............................

(21,524)

(272,847)

(65,079)

(781,450)

Net

increase

(decrease)

..........................

50,179

$608,222

(28,493)

$(346,086)

Year

ended

December

31,

2021

Shares

sold

...................................

71,468

$1,150,481

23,581

$387,809

Shares

issued

in

reinvestment

of

distributions

..........

42,337

628,619

23,118

337,502

Shares

redeemed

...............................

(131,902)

(2,146,312)

(22,113)

(365,951)

Net

increase

(decrease)

..........................

(18,097)

$(367,212)

24,586

$359,360

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,123

$14,120

1,639

$20,469

Shares

issued

in

reinvestment

of

distributions

..........

292

3,441

924

10,610

Shares

redeemed

...............................

(18)

(224)

(5,491)

(64,556)

Net

increase

(decrease)

..........................

1,397

$17,337

(2,928)

$(33,477)

Year

ended

December

31,

2021

Shares

sold

...................................

327,590

$5,312,608

340,093

$5,572,350

Shares

issued

in

reinvestment

of

distributions

..........

978

14,707

4,036

59,699

Shares

redeemed

...............................

(2,286,573)

(38,600,192)

(1,975,209)

(33,879,693)

Net

increase

(decrease)

..........................

(1,958,005)

$(33,272,877)

(1,631,080)

$(28,247,644)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

36,349

$487,153

47,196

$647,725

Shares

issued

in

reinvestment

of

distributions

..........

11,365

133,972

4,236

48,536

Shares

redeemed

...............................

(17,375)

(230,870)

(16,048)

(193,347)

Net

increase

(decrease)

..........................

30,339

$390,255

35,384

$502,914

Year

ended

December

31,

2021

Shares

sold

...................................

24,576

$396,685

22,682

$372,451

Shares

issued

in

reinvestment

of

distributions

..........

40,058

603,559

11,918

175,331

Shares

redeemed

...............................

(25,324)

(419,902)

(2,996)

(48,537)

Net

increase

(decrease)

..........................

39,310

$580,342

31,604

$499,245

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

158

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

762,207

$9,891,616

524,546

$6,511,712

Shares

issued

in

reinvestment

of

distributions

..........

205,547

2,432,553

84,393

960,811

Shares

redeemed

...............................

(588,922)

(7,576,569)

(562,913)

(7,176,541)

Net

increase

(decrease)

..........................

378,832

$4,747,600

46,026

$295,982

Year

ended

December

31,

2021

Shares

sold

a

...................................

736,080

$12,605,794

628,036

$10,661,579

Shares

issued

in

reinvestment

of

distributions

..........

849,185

13,083,221

433,200

6,411,353

Shares

redeemed

...............................

(577,974)

(9,884,880)

(291,313)

(4,775,024)

Net

increase

(decrease)

..........................

1,007,291

$15,804,135

769,923

$12,297,908

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

175,032

$2,194,961

125,525

$1,530,233

Shares

issued

in

reinvestment

of

distributions

..........

32,863

373,406

19,786

222,132

Shares

redeemed

a

..............................

(217,057)

(2,807,107)

(126,277)

(1,583,802)

Net

increase

(decrease)

..........................

(9,162)

$(238,740)

19,034

$168,563

Year

ended

December

31,

2021

Shares

sold

...................................

154,021

$2,551,169

123,755

$2,065,942

Shares

issued

in

reinvestment

of

distributions

..........

167,778

2,488,961

117,416

1,716,159

Shares

redeemed

a

..............................

(343,510)

(5,730,047)

(132,180)

(2,241,230)

Net

increase

(decrease)

..........................

(21,711)

$(689,917)

108,991

$1,540,871

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

38,097

$489,715

63,265

$777,563

Shares

issued

in

reinvestment

of

distributions

..........

8,169

96,145

5,819

66,384

Shares

redeemed

...............................

(85,346)

(1,096,589)

(57,135)

(714,523)

Net

increase

(decrease)

..........................

(39,080)

$(510,729)

11,949

$129,424

Year

ended

December

31,

2021

Shares

sold

...................................

42,492

$730,310

33,070

$560,640

Shares

issued

in

reinvestment

of

distributions

..........

38,951

595,892

33,649

498,620

Shares

redeemed

...............................

(26,296)

(444,410)

(96,208)

(1,581,384)

Net

increase

(decrease)

..........................

55,147

$881,792

(29,489)

$(522,124)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

159

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,571

$21,756

393

$5,060

Capital

c

ontributions

.............................

—

131

b

—

6

b

Shares

issued

in

reinvestment

of

distributions

..........

5

60

—

—

Shares

redeemed

...............................

(674)

(9,394)

(115)

(1,498)

Net

increase

(decrease)

..........................

902

$12,553

278

$3,568

Year

ended

December

31,

2021

Shares

sold

...................................

246,381

$4,211,143

279,109

$4,774,889

Shares

issued

in

reinvestment

of

distributions

..........

48

835

54

879

Shares

redeemed

...............................

(1,721,200)

(30,874,568)

(1,718,603)

(30,767,288)

Net

increase

(decrease)

..........................

(1,474,771)

$(26,662,590)

(1,439,440)

$(25,991,520)

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

8,574

$112,346

20,407

$264,364

Shares

issued

in

reinvestment

of

distributions

..........

4,518

54,042

3,570

41,017

Shares

redeemed

...............................

(11,004)

(143,345)

(3,959)

(47,902)

Net

increase

(decrease)

..........................

2,088

$23,043

20,018

$257,479

Year

ended

December

31,

2021

Shares

sold

...................................

25,416

$434,424

6,394

$109,125

Shares

issued

in

reinvestment

of

distributions

..........

18,300

284,717

13,570

203,092

Shares

redeemed

...............................

(8,782)

(146,179)

(1,369)

(24,149)

Net

increase

(decrease)

..........................

34,934

$572,962

18,595

$288,068

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

160

franklintempleton.com

Annual

Report

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

467,245

$5,255,655

152,804

$1,509,145

Shares

issued

in

reinvestment

of

distributions

..........

58,870

606,004

3,535

31,222

Shares

redeemed

...............................

(225,259)

(2,488,350)

(3,971)

(38,145)

Net

increase

(decrease)

..........................

300,856

$3,373,309

152,368

$1,502,222

Year

ended

December

31,

2021

c

Shares

sold

a

...................................

392,623

$5,682,892

38,966

$425,182

Shares

issued

in

reinvestment

of

distributions

..........

213,346

2,852,970

1,321

14,893

Shares

redeemed

...............................

(189,747)

(2,753,809)

(11,462)

(117,866)

Net

increase

(decrease)

..........................

416,222

$5,782,053

28,825

$322,209

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

149,632

$1,635,813

13,882

$134,024

Shares

issued

in

reinvestment

of

distributions

..........

17,594

176,906

309

2,736

Shares

redeemed

a

..............................

(74,585)

(824,234)

(660)

(6,637)

Net

increase

(decrease)

..........................

92,641

$988,485

13,531

$130,123

Year

ended

December

31,

2021

c

Shares

sold

...................................

129,120

$1,846,042

6,853

$77,148

Shares

issued

in

reinvestment

of

distributions

..........

76,168

994,120

228

2,565

Shares

redeemed

a

..............................

(108,345)

(1,531,221)

(1,079)

(12,304)

Net

increase

(decrease)

..........................

96,943

$1,308,941

6,002

$67,409

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

35,910

$393,368

164

$1,540

Shares

issued

in

reinvestment

of

distributions

..........

3,008

30,805

62

553

Shares

redeemed

...............................

(14,486)

(160,457)

(3)

(30)

Net

increase

(decrease)

..........................

24,432

$263,716

223

$2,063

Year

ended

December

31,

2021

c

Shares

sold

...................................

26,931

$389,407

3,207

$34,334

Shares

issued

in

reinvestment

of

distributions

..........

11,253

149,684

116

1,302

Shares

redeemed

...............................

(10,394)

(152,358)

(3)

(12)

Net

increase

(decrease)

..........................

27,790

$386,733

3,320

$35,624

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

161

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

417

$5,173

—

$—

Capital

c

ontributions

.............................

—

70

b

—

17

b

Shares

redeemed

...............................

(603)

(7,468)

—

—

Net

increase

(decrease)

..........................

(186)

$(2,225)

—

$17

Year

ended

December

31,

2021

c

Shares

sold

...................................

260,819

$3,744,627

3,695

$40,469

Shares

issued

in

reinvestment

of

distributions

..........

134

1,854

—

—

Shares

redeemed

...............................

(1,155,363)

(17,557,654)

(2,695)

(31,240)

Net

increase

(decrease)

..........................

(894,410)

$(13,811,173)

1,000

$9,229

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

10,495

$111,106

1,228

$11,427

Shares

issued

in

reinvestment

of

distributions

..........

1,679

17,314

56

492

Shares

redeemed

...............................

(907)

(10,684)

(8)

(75)

Net

increase

(decrease)

..........................

11,267

$117,736

1,276

$11,844

Year

ended

December

31,

2021

c

Shares

sold

...................................

7,070

$103,158

97,373

$977,734

Shares

issued

in

reinvestment

of

distributions

..........

6,179

82,789

65

731

Shares

redeemed

...............................

(3,212)

(46,236)

—

—

Net

increase

(decrease)

..........................

10,037

$139,711

97,438

$978,465

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

b

An

affiliate

of

the

Fund

voluntarily

made

a

capital

contribution

to

the

Fund.

This

contribution

was

made

to

reimburse

the

Fund

for

previously

over-accrued

transfer

agent

fees.

The

affiliate

did

not

receive

any

shares

of

the

Fund

or

other

consideration

in

exchange

for

making

this

cash

contribution.

c

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

162

franklintempleton.com

Annual

Report

a.

Management

and

Asset

Allocation

Fees

The

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

pay

an

asset

allocation

fee,

calculated

daily

and

paid

monthly,

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

LifeSmart

TM

Retirement

Income

Fund pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

 Advisers of

0.25%

per

year

of

the

average

daily

net

assets

of

the

Fund. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$8,268

$3,071

$17,578

$17,798

CDSC

retained

...........................

$1,159

$1,745

$4,579

$7,313

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

163

franklintempleton.com

Annual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

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

December

31,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$27,470

$16,481

$23,175

$18,503

CDSC

retained

...........................

$1,157

$653

$1,618

$1,236

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

.............

$18,357

$5,494

CDSC

retained

.............................................................

$1,837

$34

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Transfer

agent

fees

........................

$57,142

$33,409

$124,182

$90,409

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Transfer

agent

fees

........................

$153,673

$92,618

$148,821

$119,057

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Transfer

agent

fees

..........................................................

$134,516

$13,947

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

164

franklintempleton.com

Annual

Report

f.

Investments

in

FT

Underlying

Funds

The Funds

invest in

FT Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

FT

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

and

asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

year

ended

December

31,

2022,

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

—

$

3,052,071

$

(199,779)

$

(30,106)

$

(569,229)

$

2,252,957

257,775

$

146,165

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund

-

USD

Hedged,

Class

IS

...........

2,864,272

—

(2,843,896)

(205,165)

184,789

—

—

—

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

.......

4,644,204

1,140,287

(835,677)

(69,807)

(624,581)

4,254,426

226,059

196,977

Franklin

High

Yield

Corporate

ETF

2,877,203

131,637

(542,418)

(101,080)

(365,297)

2,000,045

90,705

148,819

a

Franklin

Investment

Grade

Corporate

ETF

............

3,435,358

194,407

(384,324)

(92,241)

(573,063)

2,580,137

123,629

105,937

Franklin

U.S.

Core

Bond

ETF

...

5,216,759

198,002

(617,319)

(84,611)

(729,293)

3,983,538

188,169

115,986

Franklin

U.S.

Core

Equity

(IU)

Fund

2,308,371

267,522

(800,141)

152,056

(575,348)

1,352,460

113,652

61,326

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

.....

5,769,024

440,002

(3,298,364)

(343,698)

(228,622)

2,338,342

458,498

99,458

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

515,239

17,291,042

(17,698,010)

—

—

108,271

108,271

5,568

Templeton

Developing

Markets

Trust,

Class

R6

............

550,869

51,640

(16,327)

(8,008)

(143,399)

434,775

26,559

24,260

a

Templeton

Foreign

Fund,

Class

R6

1,160,475

15,512

(129,285)

9,070

(62,304)

993,468

147,838

15,512

Western

Asset

Income

Fund,

Class

IS

.....................

5,753,705

2,859,388

(826,415)

(140,048)

(943,218)

6,703,412

1,332,686

361,784

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

165

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

........

$

5,227,049

$

1,151,149

$

(701,722)

$

(81,979)

$

(592,513)

$

5,001,984

1,068,800

$

314,079

Total

Non-Controlled

Affiliates

$40,322,528

$26,792,659

$(28,893,677)

$(995,617)

$(5,222,078)

$32,003,815

$1,595,871

Total

Affiliated

Securities

....

$40,322,528

$26,792,659

$(28,893,677)

$(995,617)

$(5,222,078)

$32,003,815

$1,595,871

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,213,493

477,039

(254,946)

(51,865)

(235,086)

1,148,635

131,423

73,684

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,169,022

86,518

(1,103,044)

10,775

(169,547)

993,724

27,248

20,239

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

630,569

453,233

(101,376)

(12,340)

(173,602)

796,484

89,795

32,655

Franklin

FTSE

Europe

ETF

....

253,373

10,079

(226,077)

39,689

(77,064)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

4,373,598

756,735

(1,519,066)

213,958

(1,459,587)

2,365,638

22,992

229,450

a

Franklin

High

Yield

Corporate

ETF

1,595,822

177,325

(992,074)

(129,379)

(86,927)

564,767

25,613

57,931

a

Franklin

International

Aggregate

Bond

ETF

................

1,183,504

166,641

(481,796)

(34,358)

(146,049)

687,942

35,821

111,254

Franklin

International

Core

Equity

(IU)

Fund

................

2,866,263

599,084

(736,347)

(171,734)

(435,817)

2,121,449

211,089

65,620

Franklin

International

Growth

Fund,

Class

R6

................

496,395

140,782

(143,707)

(15,338)

(156,638)

321,494

22,310

5,502

a

Franklin

Investment

Grade

Corporate

ETF

............

705,533

650,488

(448,676)

(80,033)

(86,364)

740,948

35,503

28,400

Franklin

Senior

Loan

ETF

.....

887,464

26,766

(893,869)

(22,034)

1,673

—

—

7,885

Franklin

Systematic

Style

Premia

ETF

....................

229,241

208,423

(119,147)

(22,010)

15,402

311,909

14,685

6,871

Franklin

U.S.

Core

Bond

ETF

...

7,966,338

1,530,526

(2,673,704)

(220,267)

(881,425)

5,721,468

270,263

157,808

Franklin

U.S.

Core

Equity

(IU)

Fund

8,822,202

581,210

(2,490,558)

(154,342)

(1,440,328)

5,318,184

446,906

247,526

a

Franklin

U.S.

Equity

Index

ETF

.

—

534,609

(98,401)

5,318

21,211

462,737

13,925

2,555

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

881,483

1,292,968

(766,715)

9,399

(173,024)

1,244,111

31,703

26,457

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

189,864

(7,513)

(118)

4,163

186,396

4,900

2,823

Franklin

U.S.

Treasury

Bond

ETF

1,417,988

733,802

(361,786)

(53,854)

(146,949)

1,589,201

76,773

30,959

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

3

7,668,625

(7,302,806)

—

—

365,822

365,822

5,780

Templeton

Developing

Markets

Trust,

Class

R6

............

605,500

583,872

(429,418)

(60,258)

(143,039)

556,657

34,005

30,159

a

Templeton

Foreign

Fund,

Class

R6

1,041,988

71,782

(561,966)

37,153

(61,792)

527,165

78,447

8,270

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

166

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

$

2,694,526

$

2,019,108

$

(586,871)

$

(133,915)

$

(699,169)

$

3,293,679

351,889

$

110,970

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

1,073,847

352,481

(304,441)

(21,032)

(61,389)

1,039,466

287,941

25,896

Total

Non-Controlled

Affiliates

$41,108,152

$19,311,960

$(22,604,304)

$(866,585)

$(6,591,347)

$30,357,876

$1,288,694

Total

Affiliated

Securities

....

$41,108,152

$19,311,960

$(22,604,304)

$(866,585)

$(6,591,347)

$30,357,876

$1,288,694

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

2,825,250

1,126,495

(357,305)

(56,631)

(620,644)

2,917,165

333,772

182,323

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

7,900,941

269,056

(3,454,087)

15,652

(607,436)

4,124,126

113,083

78,706

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

3,097,498

1,134,300

(182,976)

(30,266)

(699,713)

3,318,843

374,165

128,084

Franklin

FTSE

Europe

ETF

....

968,159

23,469

(849,800)

114,254

(256,082)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

15,972,227

2,642,444

(4,052,860)

228,774

(5,014,507)

9,776,078

95,015

945,253

a

Franklin

High

Yield

Corporate

ETF

4,185,999

528,862

(2,486,768)

(326,096)

(248,732)

1,653,265

74,978

157,200

a

Franklin

International

Aggregate

Bond

ETF

................

2,773,811

338,832

(919,515)

(58,280)

(385,599)

1,749,249

91,083

278,968

Franklin

International

Core

Equity

(IU)

Fund

................

10,898,437

2,808,093

(2,667,327)

(653,169)

(1,648,320)

8,737,714

869,424

258,304

Franklin

International

Growth

Fund,

Class

R6

................

1,895,053

500,857

(402,276)

(73,203)

(585,884)

1,334,547

92,613

22,748

a

Franklin

Investment

Grade

Corporate

ETF

............

1,852,156

1,715,175

(956,631)

(193,513)

(249,003)

2,168,184

103,890

77,660

Franklin

Senior

Loan

ETF

.....

2,329,560

46,022

(2,322,832)

(57,363)

4,613

—

—

20,568

Franklin

Systematic

Style

Premia

ETF

....................

739,420

650,185

(277,300)

(51,049)

29,057

1,090,313

51,333

23,737

Franklin

U.S.

Core

Bond

ETF

...

21,191,518

4,291,980

(5,821,367)

(374,504)

(2,559,453)

16,728,174

790,183

430,205

Franklin

U.S.

Core

Equity

(IU)

Fund

31,756,777

2,204,280

(5,727,731)

(369,951)

(5,724,707)

22,138,668

1,860,392

1,006,181

a

Franklin

U.S.

Equity

Index

ETF

.

—

2,148,374

(280,834)

15,886

90,478

1,973,904

59,400

10,782

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

3,222,872

4,676,870

(2,081,363)

24,279

(667,095)

5,175,563

131,886

104,401

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

775,498

(9,226)

(256)

17,608

783,624

20,600

11,742

Franklin

U.S.

Treasury

Bond

ETF

3,722,764

2,107,939

(642,297)

(87,653)

(451,781)

4,648,972

224,588

86,149

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

13

19,214,501

(17,634,442)

—

—

1,580,072

1,580,072

20,879

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

167

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Templeton

Developing

Markets

Trust,

Class

R6

............

$

3,024,775

$

1,560,422

$

(1,433,301)

$

(270,971)

$

(579,103)

$

2,301,822

140,612

$

121,808

a

Templeton

Foreign

Fund,

Class

R6

3,978,852

199,259

(1,909,802)

211,919

(291,048)

2,189,180

325,771

33,992

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

7,031,491

5,632,741

(823,756)

(183,950)

(2,027,893)

9,628,633

1,028,700

304,249

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

2,802,314

1,072,257

(522,015)

(32,949)

(190,927)

3,128,680

866,670

73,274

Total

Non-Controlled

Affiliates

$132,169,887

$55,667,911

$(55,815,811)

$(2,209,040)

$(22,666,171)

$107,146,776

$4,377,213

Total

Affiliated

Securities

....

$132,169,887

$55,667,911

$(55,815,811)

$(2,209,040)

$(22,666,171)

$107,146,776

$4,377,213

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

949,870

516,766

(127,861)

(25,152)

(219,463)

1,094,160

125,190

67,754

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

3,999,208

415,840

(1,700,577)

(21,990)

(301,077)

2,391,404

65,572

44,062

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,692,004

3,459,880

(2,515,598)

(557,502)

(198,091)

1,880,693

212,029

99,076

Franklin

FTSE

Europe

ETF

....

523,170

21,238

(467,266)

59,595

(136,737)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

8,283,384

2,166,975

(2,166,753)

(258,588)

(2,350,414)

5,674,604

55,152

539,720

a

Franklin

High

Yield

Corporate

ETF

1,453,397

345,923

(936,933)

(124,891)

(85,191)

652,305

29,583

58,525

a

Franklin

International

Aggregate

Bond

ETF

................

952,832

211,244

(352,154)

(23,252)

(138,581)

650,089

33,850

102,766

Franklin

International

Core

Equity

(IU)

Fund

................

5,972,992

4,058,259

(3,936,630)

(391,993)

(506,811)

5,195,817

516,997

114,178

Franklin

International

Growth

Fund,

Class

R6

................

1,027,329

748,979

(697,011)

(34,733)

(262,600)

781,964

54,265

13,099

a

Franklin

Investment

Grade

Corporate

ETF

............

642,233

754,191

(377,717)

(79,021)

(83,139)

856,547

41,042

29,129

Franklin

Senior

Loan

ETF

.....

808,503

50,267

(839,785)

(20,378)

1,393

—

—

7,307

Franklin

Systematic

Style

Premia

ETF

....................

340,401

360,224

(144,928)

(26,098)

14,910

544,509

25,636

11,750

Franklin

U.S.

Core

Bond

ETF

...

7,385,589

2,547,586

(2,250,576)

(163,687)

(907,966)

6,610,946

312,279

160,531

Franklin

U.S.

Core

Equity

(IU)

Fund

16,273,762

1,875,379

(2,121,541)

(215,215)

(3,106,108)

12,706,277

1,067,754

571,693

a

Franklin

U.S.

Equity

Index

ETF

.

—

1,252,185

(213,526)

11,430

49,016

1,099,105

33,075

5,995

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

1,667,543

2,858,180

(1,171,102)

(23,077)

(336,306)

2,995,238

76,326

59,475

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

457,783

(13,728)

(534)

10,106

453,627

11,925

6,729

Franklin

U.S.

Treasury

Bond

ETF

1,292,686

1,023,587

(280,252)

(40,369)

(158,817)

1,836,835

88,736

32,897

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

168

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

$

6

$

11,982,487

$

(11,226,782)

$

—

$

—

$

755,711

755,711

$

10,625

Templeton

Developing

Markets

Trust,

Class

R6

............

1,665,712

2,787,776

(2,344,753)

(576,868)

(197,063)

1,334,804

81,540

112,003

a

Templeton

Foreign

Fund,

Class

R6

2,149,699

849,717

(1,748,519)

70,219

(46,444)

1,274,672

189,683

19,749

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

2,386,772

2,615,173

(390,277)

(92,948)

(713,405)

3,805,315

406,551

114,370

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

951,538

667,013

(236,426)

(16,152)

(68,941)

1,297,032

359,289

28,995

Total

Non-Controlled

Affiliates

$60,418,630

$42,026,652

$(36,260,695)

$(2,551,204)

$(9,741,729)

$53,891,654

$2,210,428

Total

Affiliated

Securities

....

$60,418,630

$42,026,652

$(36,260,695)

$(2,551,204)

$(9,741,729)

$53,891,654

$2,210,428

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,615,481

781,015

(172,541)

(23,046)

(382,919)

1,817,990

208,008

112,625

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

8,922,369

765,209

(3,598,093)

(20,769)

(683,952)

5,384,764

147,649

98,116

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,371,726

883,321

(81,824)

(12,287)

(915,715)

4,245,221

478,604

160,890

Franklin

FTSE

Europe

ETF

....

1,171,645

32,073

(1,031,022)

125,126

(297,822)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

17,952,826

4,054,618

(3,475,851)

(395,917)

(5,365,969)

12,769,707

124,110

1,209,411

a

Franklin

High

Yield

Corporate

ETF

2,028,077

529,163

(1,305,790)

(173,861)

(122,383)

955,206

43,320

83,532

a

Franklin

International

Aggregate

Bond

ETF

................

1,583,181

271,962

(520,585)

(32,874)

(234,616)

1,067,068

55,562

169,935

Franklin

International

Core

Equity

(IU)

Fund

................

13,487,630

3,418,529

(3,028,200)

(728,005)

(2,072,150)

11,077,804

1,102,269

321,928

Franklin

International

Growth

Fund,

Class

R6

................

2,291,201

673,566

(413,516)

(83,744)

(722,155)

1,745,352

121,121

29,117

a

Franklin

Investment

Grade

Corporate

ETF

............

896,955

1,065,502

(478,790)

(106,931)

(122,532)

1,254,204

60,096

41,707

Franklin

Senior

Loan

ETF

.....

1,128,497

54,128

(1,156,240)

(28,507)

2,122

—

—

10,165

Franklin

Systematic

Style

Premia

ETF

....................

674,767

691,529

(257,991)

(46,707)

25,890

1,087,488

51,200

23,190

Franklin

U.S.

Core

Bond

ETF

...

10,119,465

3,699,348

(2,634,209)

(178,291)

(1,334,481)

9,671,832

456,865

229,372

Franklin

U.S.

Core

Equity

(IU)

Fund

33,981,989

1,254,249

(101,580)

(20,220)

(7,166,566)

27,947,872

2,348,561

1,254,249

a

Franklin

U.S.

Equity

Index

ETF

.

—

2,791,736

(68,996)

3,995

126,951

2,853,686

85,875

15,588

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

3,636,971

8,052,050

(4,034,494)

(43,406)

(821,114)

6,790,007

173,026

146,103

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

169

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

$

—

$

1,007,914

$

(3,601)

$

(176)

$

21,992

$

1,026,129

26,975

$

15,162

Franklin

U.S.

Treasury

Bond

ETF

1,802,137

1,479,858

(311,088)

(40,282)

(242,482)

2,688,143

129,862

47,456

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

9

15,991,780

(14,461,053)

—

—

1,530,736

1,530,736

21,708

Templeton

Developing

Markets

Trust,

Class

R6

............

4,233,465

1,595,844

(1,681,151)

(278,408)

(851,058)

3,018,692

184,404

158,230

a

Templeton

Foreign

Fund,

Class

R6

4,599,997

415,108

(2,050,999)

191,342

(292,574)

2,862,874

426,023

44,453

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

3,411,230

3,723,433

(427,733)

(94,389)

(1,045,757)

5,566,784

594,742

163,598

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

1,359,316

1,161,699

(339,352)

(21,489)

(107,380)

2,052,794

568,641

44,863

Total

Non-Controlled

Affiliates

$119,268,934

$54,393,634

$(41,634,699)

$(2,008,846)

$(22,604,670)

$107,414,353

$4,401,398

Total

Affiliated

Securities

....

$119,268,934

$54,393,634

$(41,634,699)

$(2,008,846)

$(22,604,670)

$107,414,353

$4,401,398

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

3,398,026

376,868

(1,280,146)

(19,598)

(253,919)

2,221,231

60,906

39,147

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,734,895

372,976

(28,907)

(4,438)

(364,985)

1,709,541

192,733

64,266

Franklin

FTSE

Europe

ETF

....

472,518

12,727

(416,333)

53,233

(122,145)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

7,148,048

1,761,648

(1,359,747)

(201,723)

(2,085,162)

5,263,064

51,152

494,273

a

Franklin

High

Yield

Corporate

ETF

452,306

206,330

(333,668)

(43,675)

(25,557)

255,736

11,598

20,442

a

Franklin

International

Core

Equity

(IU)

Fund

................

5,285,608

1,539,287

(1,170,281)

(228,740)

(880,945)

4,544,929

452,232

128,893

Franklin

International

Growth

Fund,

Class

R6

................

922,300

365,725

(248,889)

(34,541)

(282,984)

721,611

50,077

11,923

a

Franklin

Investment

Grade

Corporate

ETF

............

200,653

295,751

(107,149)

(20,564)

(33,143)

335,548

16,078

10,346

Franklin

Senior

Loan

ETF

.....

251,349

18,645

(264,117)

(6,213)

336

—

—

2,262

Franklin

Systematic

Style

Premia

ETF

....................

239,667

258,888

(88,975)

(11,778)

4,420

402,222

18,937

8,479

Franklin

U.S.

Core

Bond

ETF

...

2,291,989

1,360,812

(713,480)

(48,152)

(306,799)

2,584,370

122,077

56,520

Franklin

U.S.

Core

Equity

(IU)

Fund

12,432,235

460,094

—

—

(2,630,642)

10,261,687

862,327

460,094

a

Franklin

U.S.

Equity

Index

ETF

.

—

1,142,570

(22,742)

1,302

51,083

1,172,213

35,275

6,322

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

1,420,823

4,034,415

(1,107,601)

(85,974)

(381,855)

3,879,808

98,867

77,533

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

411,318

—

—

9,024

420,342

11,050

6,140

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

170

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

U.S.

Treasury

Bond

ETF

$

402,432

$

480,207

$

(96,402)

$

(7,073)

$

(60,439)

$

718,725

34,721

$

12,071

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

4

7,425,012

(6,710,125)

—

—

714,891

714,891

8,281

Templeton

Developing

Markets

Trust,

Class

R6

............

1,719,000

665,226

(713,977)

(106,854)

(324,840)

1,238,555

75,660

63,719

a

Templeton

Foreign

Fund,

Class

R6

1,893,431

280,061

(959,425)

39,532

(71,519)

1,182,080

175,905

18,095

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

740,382

1,167,079

(154,906)

(30,968)

(233,413)

1,488,174

158,993

40,528

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

295,463

452,900

(107,362)

(6,566)

(26,922)

607,513

168,286

12,489

Total

Non-Controlled

Affiliates

$41,301,129

$23,088,539

$(15,884,232)

$(762,790)

$(8,020,406)

$39,722,240

$1,541,823

Total

Affiliated

Securities

....

$41,301,129

$23,088,539

$(15,884,232)

$(762,790)

$(8,020,406)

$39,722,240

$1,541,823

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

7,191,500

472,455

(2,694,231)

(21,440)

(551,988)

4,396,296

120,546

79,853

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,137,604

496,477

(311,872)

(21,512)

(766,554)

3,534,143

398,438

132,611

Franklin

FTSE

Europe

ETF

....

1,014,785

31,080

(897,192)

92,661

(241,334)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

14,715,308

2,710,085

(2,306,927)

(311,223)

(4,394,297)

10,412,946

101,205

1,002,432

a

Franklin

International

Core

Equity

(IU)

Fund

................

11,638,898

2,605,031

(2,398,122)

(491,006)

(1,832,499)

9,522,302

947,493

266,266

Franklin

International

Growth

Fund,

Class

R6

................

1,984,318

468,726

(354,171)

(58,275)

(617,790)

1,422,808

98,738

24,138

a

Franklin

Systematic

Style

Premia

ETF

....................

472,196

438,070

(169,778)

(30,437)

16,548

726,599

34,209

15,830

Franklin

U.S.

Core

Bond

ETF

...

2,021,752

2,267,057

(750,201)

(69,371)

(326,318)

3,142,919

148,461

66,838

Franklin

U.S.

Core

Equity

(IU)

Fund

26,748,484

989,912

—

—

(5,659,939)

22,078,457

1,855,333

989,911

a

Franklin

U.S.

Equity

Index

ETF

.

—

2,252,469

(38,368)

2,697

106,028

2,322,826

69,900

12,634

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

2,950,427

6,421,817

(1,739,566)

(90,234)

(808,711)

6,733,733

171,592

140,485

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

817,739

(4,888)

101

18,222

831,174

21,850

12,441

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

6

10,001,830

(9,183,923)

—

—

817,913

817,913

14,664

Templeton

Developing

Markets

Trust,

Class

R6

............

4,030,870

845,687

(1,444,479)

(271,508)

(713,541)

2,447,029

149,483

129,207

a

Templeton

Foreign

Fund,

Class

R6

4,040,920

243,324

(1,878,454)

158,001

(229,696)

2,334,095

347,336

36,242

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

171

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

$

2,028,708

$

2,388,074

$

(672,920)

$

(95,511)

$

(440,271)

$

3,208,080

342,744

$

85,673

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

472,887

(72,604)

(2,580)

(18,574)

379,129

105,022

8,214

Total

Non-Controlled

Affiliates

$82,975,776

$33,922,720

$(24,917,696)

$(1,209,637)

$(16,460,714)

$74,310,449

$3,017,439

Total

Affiliated

Securities

....

$82,975,776

$33,922,720

$(24,917,696)

$(1,209,637)

$(16,460,714)

$74,310,449

$3,017,439

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

3,364,181

424,544

(1,474,634)

(23,039)

(231,599)

2,059,453

56,470

36,305

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,915,868

379,796

(301,358)

(16,642)

(343,970)

1,633,694

184,182

60,714

Franklin

FTSE

Europe

ETF

....

518,116

37,995

(488,219)

68,458

(136,350)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

7,205,622

2,327,817

(2,481,396)

(278,915)

(1,890,842)

4,882,286

47,452

466,534

a

Franklin

International

Core

Equity

(IU)

Fund

................

5,437,449

1,565,994

(1,563,936)

(239,181)

(839,221)

4,361,105

433,941

121,702

Franklin

International

Growth

Fund,

Class

R6

................

1,015,837

310,377

(343,891)

(42,549)

(269,714)

670,060

46,500

11,267

a

Franklin

Systematic

Style

Premia

ETF

....................

227,056

229,077

(124,521)

(11,224)

4,860

325,248

15,313

6,977

Franklin

U.S.

Core

Bond

ETF

...

—

933,442

(251,406)

(12,157)

(32,133)

637,746

30,125

10,050

Franklin

U.S.

Core

Equity

(IU)

Fund

11,032,966

408,310

—

—

(2,334,559)

9,106,717

765,270

408,310

a

Franklin

U.S.

Equity

Index

ETF

.

—

1,046,937

(10,108)

564

49,251

1,086,644

32,700

5,890

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

1,434,368

4,639,619

(1,299,745)

(66,695)

(455,718)

4,251,829

108,347

83,723

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

381,329

(1,903)

15

8,567

388,008

10,200

5,763

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

4

6,918,602

(6,404,866)

—

—

513,740

513,740

6,464

Templeton

Developing

Markets

Trust,

Class

R6

............

2,033,777

571,642

(1,023,813)

(121,250)

(312,488)

1,147,868

70,120

59,742

a

Templeton

Foreign

Fund,

Class

R6

2,110,317

264,616

(1,260,657)

60,663

(77,094)

1,097,845

163,370

16,959

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

204,076

734,873

(227,655)

(23,320)

(35,795)

652,179

69,677

13,417

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

172

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

209,256

$

(30,204)

$

(1,114)

$

(7,936)

$

170,002

47,092

$

3,577

Total

Non-Controlled

Affiliates

$36,499,637

$21,384,226

$(17,288,312)

$(706,386)

$(6,904,741)

$32,984,424

$1,317,394

Total

Affiliated

Securities

....

$36,499,637

$21,384,226

$(17,288,312)

$(706,386)

$(6,904,741)

$32,984,424

$1,317,394

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,028,956

479,913

(803,475)

(21,085)

(149,216)

1,535,093

42,092

25,957

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,222,321

242,964

(47,270)

(3,875)

(237,480)

1,176,660

132,656

42,641

Franklin

FTSE

Europe

ETF

....

302,761

21,873

(279,290)

46,084

(91,428)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

4,236,751

1,617,375

(754,564)

(146,642)

(1,317,890)

3,635,030

35,329

345,628

a

Franklin

International

Core

Equity

(IU)

Fund

................

3,420,945

1,133,575

(668,240)

(119,580)

(589,339)

3,177,361

316,155

85,048

Franklin

International

Growth

Fund,

Class

R6

................

593,953

260,538

(150,895)

(21,399)

(182,548)

499,649

34,674

8,361

a

Franklin

Systematic

Style

Premia

ETF

....................

132,055

165,271

(51,617)

(4,866)

507

241,350

11,363

5,162

Franklin

U.S.

Core

Bond

ETF

...

—

592,020

(150,115)

(8,108)

(24,242)

409,555

19,346

6,769

Franklin

U.S.

Core

Equity

(IU)

Fund

7,253,054

268,422

—

—

(1,534,735)

5,986,741

503,087

268,422

a

Franklin

U.S.

Equity

Index

ETF

.

—

775,510

(1,685)

66

34,446

808,337

24,325

4,357

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

839,344

3,655,655

(353,334)

(33,562)

(377,143)

3,730,960

95,074

69,158

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

283,940

—

—

6,115

290,055

7,625

4,232

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

2

4,990,248

(4,571,564)

—

—

418,686

418,686

4,839

Templeton

Developing

Markets

Trust,

Class

R6

............

1,193,793

444,722

(476,328)

(96,910)

(208,681)

856,596

52,327

43,829

a

Templeton

Foreign

Fund,

Class

R6

1,234,222

263,642

(663,315)

19,670

(35,804)

818,415

121,788

12,578

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

127,578

479,342

(144,195)

(15,235)

(28,157)

419,333

44,801

9,106

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

173

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

158,399

$

(25,164)

$

(967)

$

(5,327)

$

126,941

35,164

$

2,543

Total

Non-Controlled

Affiliates

$22,585,735

$15,833,409

$(9,141,051)

$(406,409)

$(4,740,922)

$24,130,762

$938,630

Total

Affiliated

Securities

....

$22,585,735

$15,833,409

$(9,141,051)

$(406,409)

$(4,740,922)

$24,130,762

$938,630

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

121,636

141,361

(79,713)

(7,012)

(8,033)

168,239

4,613

2,566

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

71,054

82,590

(3,111)

(439)

(22,111)

127,983

14,429

4,310

Franklin

FTSE

Europe

ETF

....

19,596

14,535

(30,164)

(2,082)

(1,885)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

252,340

357,387

(83,315)

(12,601)

(116,764)

397,047

3,859

37,708

a

Franklin

International

Core

Equity

(IU)

Fund

................

203,327

247,306

(43,977)

(9,494)

(47,729)

349,433

34,770

8,211

Franklin

International

Growth

Fund,

Class

R6

................

36,231

54,670

(20,569)

(4,336)

(11,769)

54,227

3,763

908

a

Franklin

Systematic

Style

Premia

ETF

....................

8,047

33,183

(13,057)

(190)

(498)

27,485

1,294

575

Franklin

U.S.

Core

Bond

ETF

...

—

66,131

(17,018)

(835)

(2,233)

46,045

2,175

671

Franklin

U.S.

Core

Equity

(IU)

Fund

381,307

355,323

(3,234)

(791)

(113,326)

619,279

52,040

26,573

a

Franklin

U.S.

Equity

Index

ETF

.

—

84,592

—

—

3,469

88,061

2,650

477

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

50,745

517,920

(83,603)

(14,393)

(36,841)

433,828

11,055

8,119

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

36,931

(5,551)

(122)

1,076

32,334

850

463

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

16,296

1,020,665

(993,048)

—

—

43,913

43,913

592

Templeton

Developing

Markets

Trust,

Class

R6

............

71,685

107,736

(58,626)

(22,854)

(4,870)

93,071

5,685

4,617

a

Templeton

Foreign

Fund,

Class

R6

74,879

78,907

(61,343)

(3,823)

1,379

89,999

13,393

1,372

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

7,062

55,959

(13,073)

(1,271)

(2,729)

45,948

4,909

916

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

20,158

(4,536)

(195)

(391)

15,036

4,165

260

Total

Non-Controlled

Affiliates

$1,314,205

$3,275,354

$(1,513,938)

$(80,438)

$(363,255)

$2,631,928

$98,338

Total

Affiliated

Securities

....

$1,314,205

$3,275,354

$(1,513,938)

$(80,438)

$(363,255)

$2,631,928

$98,338

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statements

of

Operations.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

174

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

other

than

Class

R6

do

not

exceed

0.05%

and

for

Class

R6

do

not

exceed

0.00%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds'

fiscal

year

end.

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

other

than

Class

R6

do

not

exceed

0.45%

and

for

Class

R6

do

not

exceed

0.40%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds'

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.00%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

h.

Other

Affiliated

Transactions

At

December

31,

2022,

Templeton

International

Inc.

owned

32.9%

of

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund’s

outstanding

shares.

Investment

activities

of

this

investment

company

could

have

a

material

impact

on

the

Fund.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the year

ended

December

31,

2022, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

1

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

..............................................

$

635,970

$

139,096

$

1,072,652

Long

term

..............................................

1,519,558

—

287,912

Total

capital

loss

carryforwards

.............................

$2,155,528

$139,096

$1,360,564

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

175

franklintempleton.com

Annual

Report

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021

,

was

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

2022

2021

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$2,248,419

$3,377,223

$475,536

$1,981,886

Long

term

capital

gain

....................

456,942

181,483

766,061

1,950,792

$2,705,361

$3,558,706

$1,241,597

$3,932,678

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

2022

2021

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$1,385,227

$6,367,131

$561,153

$3,876,465

Long

term

capital

gain

....................

2,909,205

9,604,300

1,437,869

4,673,146

$4,294,432

$15,971,431

$1,999,022

$8,549,611

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

2022

2021

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$1,000,441

$7,271,766

$310,889

$3,560,350

Long

term

capital

gain

....................

3,185,817

13,762,041

1,160,593

5,704,054

$4,186,258

$21,033,807

$1,471,482

$9,264,404

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

2022

2021

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$456,616

$5,804,716

$198,223

$3,529,391

Long

term

capital

gain

....................

2,517,614

11,340,166

1,092,340

5,842,631

$2,974,230

$17,144,882

$1,290,563

$9,372,022

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

2022

2021

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$122,473

$2,284,264

$17,883

$78,334

Long

term

capital

gain

....................

708,939

2,063,007

43,446

—

$831,412

$4,347,271

$61,329

$78,334

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

176

franklintempleton.com

Annual

Report

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$51,315,557

$35,050,368

$117,995,471

$57,698,624

Unrealized

appreciation

.....................

$288,453

$1,456,220

$7,312,169

$3,324,418

Unrealized

depreciation

.....................

(6,512,784)

(3,810,283)

(10,821,369)

(3,868,143)

Net

unrealized

appreciation

(depreciation)

.......

$(6,224,331)

$(2,354,063)

$(3,509,200)

$(543,725)

Distributable

earnings:

Undistributed

ordinary

income

................

$380,202

$298,369

$901,746

$396,782

Undistributed

long

term

capital

gains

...........

—

—

54,349

—

Total

distributable

earnings

..................

$380,202

$298,369

$956,095

$396,782

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$111,644,941

$40,293,190

$72,184,142

$32,287,328

Unrealized

appreciation

.....................

$8,505,770

$2,992,101

$6,892,161

$2,617,215

Unrealized

depreciation

.....................

(7,052,591)

(1,733,901)

(2,979,546)

(1,043,919)

Net

unrealized

appreciation

(depreciation)

.......

$1,453,179

$1,258,200

$3,912,615

$1,573,296

Distributable

earnings:

Undistributed

ordinary

income

................

$732,975

$204,287

$348,683

$153,904

Undistributed

long

term

capital

gains

...........

363,081

149,707

435,384

135,766

Total

distributable

earnings

..................

$1,096,056

$353,994

$784,067

$289,670

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

a

a

Cost

of

investments

.........................................................

$24,329,586

$3,033,554

Unrealized

appreciation

.......................................................

$1,135,612

$7,853

Unrealized

depreciation

.......................................................

(785,532)

(357,762)

Net

unrealized

appreciation

(depreciation)

.........................................

$350,080

$(349,909)

Distributable

earnings:

Undistributed

ordinary

income

..................................................

$111,564

$13,118

Undistributed

long

term

capital

gains

.............................................

213,753

13,733

Total

distributable

earnings

....................................................

$325,317

$26,851

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

177

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

The

Funds,

except

for

Franklin

LifeSmart™

Retirement

Income

Fund,

Franklin

LifeSmart™

2020

Retirement

Target

Fund,

Franklin

LifeSmart™

2030

Retirement

Target

Fund

and

Franklin

LifeSmart™

2060

Retirement

Target

Fund

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

realized

capital

gains.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

were

as

follows: 

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Funds

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Purchases

..............................

$17,682,141

$13,004,800

$40,657,703

$32,374,492

Sales

..................................

$20,403,742

$16,886,613

$43,169,024

$28,010,217

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Purchases

..............................

$41,968,259

$16,875,259

$24,662,338

$15,555,435

Sales

..................................

$33,926,739

$12,358,134

$21,178,827

$15,058,401

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Purchases

................................................................

$11,474,801

$2,377,369

Sales

....................................................................

$6,716,524

$754,561

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

178

franklintempleton.com

Annual

Report

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

December

31,

2022,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2022,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

$

40,426,233

$

—

$

—

$

40,426,233

Index-Linked

Notes

:

Capital

Markets

........................

—

—

4

,5

56

,

722

4,556,722

Short

Term

Investments

...................

108,271

—

—

108,271

Total

Investments

in

Securities

...........

$40,534,504

$—

$4,556,722

$45,091,226

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

32,207,067

—

—

32,207,067

Short

Term

Investments

...................

365,822

123,416

—

489,238

Total

Investments

in

Securities

...........

$32,572,889

$123,416

$—

$32,696,305

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

179

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

$

112,651,558

$

—

$

—

$

112,651,558

Short

Term

Investments

...................

1,580,072

254,641

—

1,834,713

Total

Investments

in

Securities

...........

$114,231,630

$254,641

$—

$114,486,271

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

56,069,941

—

—

56,069,941

Short

Term

Investments

...................

755,711

329,247

—

1,084,958

Total

Investments

in

Securities

...........

$56,825,652

$329,247

$—

$57,154,899

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

111,260,741

—

—

111,260,741

Short

Term

Investments

...................

1,530,736

306,643

—

1,837,379

Total

Investments

in

Securities

...........

$112,791,477

$306,643

$—

$113,098,120

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

40,706,993

—

—

40,706,993

Short

Term

Investments

...................

714,891

129,506

—

844,397

Total

Investments

in

Securities

...........

$41,421,884

$129,506

$—

$41,551,390

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

75,082,971

—

—

75,082,971

Short

Term

Investments

...................

817,913

195,873

—

1,013,786

Total

Investments

in

Securities

...........

$75,900,884

$195,873

$—

$76,096,757

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

33,266,395

—

—

33,266,395

Short

Term

Investments

...................

513,740

80,489

—

594,229

Total

Investments

in

Securities

...........

$33,780,135

$80,489

$—

$33,860,624

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

24,260,980

—

—

24,260,980

Short

Term

Investments

...................

418,686

—

—

418,686

Total

Investments

in

Securities

...........

$24,679,666

$—

$—

$24,679,666

10.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

180

franklintempleton.com

Annual

Report

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.

At

December

31,

2022,

the

reconciliation is

as follows:

The

Level

3

financial

instruments

include

Credit

Suisse

AG

into

S&P

500

Index

and

UBS

AG

into

S&P

500

Index

with

values

of

$2,502,677

and

$2,054,045

respectively,

which

are

valued

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

11.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

$

2,639,732

$

—

$

—

$

2,639,732

Short

Term

Investments

...................

43,913

—

—

43,913

Total

Investments

in

Securities

...........

$2,683,645

$—

$—

$2,683,645

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

Balance

at

Beginning

of

Year

Purchases

a

Sales

Transfer

Into

Level

3

b

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

Index-Linked

Notes

:

Capital

Markets

.....

$

—

$

2,099,912

$

—

$

3,309,448

$

—

$

—

$

—

$

(852,638)

$

4,556,722

$

(852,638)

Total

Investments

in

Securities

............

$—

$2,099,912

$—

$3,309,448

$—

$—

$—

$(852,638)

$4,556,722

$(852,638)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Transferred

into

Level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

and

other

significant

observable

valuation

inputs.

Selected

Portfolio

ETF

Exchange-Traded

Fund

TIPS

Treasury

Inflation

Protected

Securities

10.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

181

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

LifeSmart™

Retirement

Income

Fund,

Franklin

LifeSmart™

2020

Retirement

Target

Fund,

Franklin

LifeSmart™

2025

Retirement

Target

Fund,

Franklin

LifeSmart™

2030

Retirement

Target

Fund,

Franklin

LifeSmart™

2035

Retirement

Target

Fund,

Franklin

LifeSmart™

2040

Retirement

Target

Fund,

Franklin

LifeSmart™

2045

Retirement

Target

Fund,

Franklin

LifeSmart™

2050

Retirement

Target

Fund,

Franklin

LifeSmart™

2055

Retirement

Target

Fund

and

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

each

of

the

funds

listed

in

the

table

below

(ten

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2022,

the

related

statements

of

operations

for

the

year

ended

December

31,

2022,

the

statements

of

changes

in

net

assets,

including

the

related

notes,

and

each

of

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2022,

and

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets,

and

each

of

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Franklin

LifeSmart™

Retirement

Income

Fund,

Franklin

LifeSmart™

2020

Retirement

Target

Fund,

Franklin

LifeSmart™

2025

Retirement

Target

Fund,

Franklin

LifeSmart™

2030

Retirement

Target

Fund,

Franklin

LifeSmart™

2035

Retirement

Target

Fund,

Franklin

LifeSmart™

2040

Retirement

Target

Fund,

Franklin

LifeSmart™

2045

Retirement

Target

Fund,

Franklin

LifeSmart™

2050

Retirement

Target

Fund,

Franklin

LifeSmart™

2055

Retirement

Target

Fund

and

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(a)

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(b)

(a)

Statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(b)

Statement

of

changes

in

net

assets

and

the

financial

highlights

for

the

year

ended

December

31,

2022,

and

for

the

period

January

29,

2021

(commencement

of

operations)

through

December

31,

2021

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

182

franklintempleton.com

Annual

Report

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

183

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$456,942

$766,061

$2,914,785

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$314,377

$120,565

$470,268

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$485,206

$237,553

$932,673

Pursuant

to:

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$1,437,869

$3,194,344

$1,162,681

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$262,466

$592,270

$244,784

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$516,335

$1,174,023

$477,739

Pursuant

to:

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$2,525,672

$1,094,098

$710,565

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$493,933

$233,850

$170,874

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$970,794

$452,815

$326,360

Pursuant

to:

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$43,446

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$17,525

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$33,073

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

184

franklintempleton.com

Annual

Report

Under

Section

853

of

the

Internal

Revenue

Code,

the

Funds

below

intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2022:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Foreign

Taxes

Paid

$4,939

$12,975

$52,482

$45,796

$67,315

Foreign

Source

Income

Earned

$26,151

$46,505

$189,082

$110,439

$242,966

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Foreign

Taxes

Paid

$27,166

$54,996

$25,661

$18,300

$1,933

Foreign

Source

Income

Earned

$97,451

$196,473

$91,852

$66,310

$6,990

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

185

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

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

120

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

186

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

120

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

120

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

120

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

187

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

111

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),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

Since

January

2023

and

Trustee

since

2007

131

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

2013

120

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

188

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Distributors,

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

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

-

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

189

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

190

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

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.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

RTF

A

02/23

©

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

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

December

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

first

two

quarters

given

high

trade

deficits

and

declines

in

inventory

and

business

investment,

but

GDP

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

2022’s

first

half

to

the

highest

level

in

decades,

influenced

by

pandemic-

related

supply-chain

disruptions,

strong

consumer

demand,

volatile

energy

and

commodity

prices

worsened

by

Russia’s

invasion

of

Ukraine,

and

broader

price

pressures.

Inflation

remained

high

but

eased

during

the

remainder

of

the

year.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

continued

the

reversal

of

its

quantitative

easing

measures,

increased

its

asset

purchase

tapering

and

ended

purchases

by

March

2022.

The

Federal

Reserve

raised

the

federal

funds

target

rate

by

0.25%

in

March,

0.50%

in

May,

0.75%

in

each

of

June,

July,

September

and

November,

and

0.50%

in

December

2022,

totaling

4.25%,

increasing

the

rate

from

0.25%

to

4.50%

during

the

period.

The

Federal

Reserve

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

rate

increases

to

counter

inflation.

Resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

numerous

countries

and

tighter

monetary

policies

by

many

central

banks,

which

hindered

the

global

economy

and

equities.

Russia’s

invasion

of

Ukraine

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

economic

activity

and

commodity

markets.

New

COVID

lockdowns

imposed

by

China

early

in

the

period

slowed

economic

activity,

and

protests

late

in

the

period

led

China

to

relax

its

“zero-COVID”

policy.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-19.44%

(the

index

decreasing

from

4,766.18

to

3,839.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-19.46%

(the

index

decreasing

from

3,231.727

to

2,602.685).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-13.01%

total

return

(an

index

decrease

from

2,355.14

to

2,048.73),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2023,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-18.11%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

8,178.02)

and

MSCI

World

Index

-17.73%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,700.992).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

Conservative

Allocation

Fund

4

Franklin

Moderate

Allocation

Fund

10

Franklin

Growth

Allocation

Fund

16

Financial

Highlights

and

Schedules

of

Investments

22

Financial

Statements

43

Notes

to

Financial

Statements

48

Report

of

Independent

Registered

Public

Accounting

Firm

62

Tax

Information

63

Board

Members

and

Officers

64

Shareholder

Information

69

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

December

31,

2022.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

Conservative

Allocation

Fund

This

annual

report

for

Franklin

Conservative

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

lower

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-15.22%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Conservative

Allocation

Fund

Benchmark-NR

(Blended

Benchmark-NR),

which

consists

of

40%

MSCI

All

Country

World

Index-NR

and

60%

Bloomberg

Multiverse

Index,

posted

a

-16.79%

cumulative

total

return.

2

The

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

We

generally

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio,

but

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

Under

normal

market

conditions,

we

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed

income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

fixed

income

funds

and

40%

equity

funds.

When

selecting

equity

funds,

we

consider

the

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

on

income

as

a

means

of

diversification

to

help

offset

the

risk

presented

by

exposure

to

equity

investments

and

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

We

also

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

asset

allocation

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

perform

better

than

its

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

54.7%

Domestic

Equity

29.5%

Foreign

Equity

8.2%

Foreign

Fixed

Income

3.9%

Alternative

Strategies

0.9%

Short-Term

Investments

&

Other

Net

Assets

2.8%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

27

.

Franklin

Conservative

Allocation

Fund

5

franklintempleton.com

Annual

Report

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Similarly,

ClearBridge

Large

Cap

Value

Fund

and

its

value

style

bias

also

contributed.

Franklin

Growth

Fund

and

Franklin

International

Growth

Fund,

however,

both

detracted

from

relative

performance

as

growth

stocks

tended

to

be

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

rising

interest

rate

environment.

Shorter

duration

positioning

also

helped

Western

Asset

Short-Term

Bond

Fund

to

contribute

to

relative

performance.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

for

the

12-month

period.

Franklin

Conservative

Allocation

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

Conservative

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Bond

ETF

20.5%

Franklin

U.S.

Core

Equity

(IU)

Fund

15.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

11.8%

Franklin

Growth

Fund,

Class

R6

6.5%

Franklin

U.S.

Treasury

Bond

ETF

5.7%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

4.1%

Schwab

U.S.

TIPS

ETF

4.1%

Franklin

International

Core

Equity

(IU)

Fund

3.8%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

3.5%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

3.2%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2022

Franklin

Conservative

Allocation

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-15.22%

-19.90%

5-Year

+9.63%

+0.72%

10-Year

+41.12%

+2.92%

Advisor

1-Year

-15.07%

-15.07%

5-Year

+10.93%

+2.10%

10-Year

+44.67%

+3.76%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Conservative

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

Conservative

Allocation

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Net

expenses

are

capped

under

a

contrac-

tual

agreement,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Blended

Benchmark-NR

(40%

MSCI

ACWI-NR

and

60%

Bloomberg

Multiverse

Index)

was

calculated

internally.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

in-

clude

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high-yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.2150

$0.2386

$0.4536

C

$0.1191

$0.2386

$0.3577

R

$0.1862

$0.2386

$0.4248

R6

$0.2594

$0.2386

$0.4980

Advisor

$0.2474

$0.2386

$0.4860

Total

Annual

Operating

Expenses

6

Share

Class

A

0.84%

Advisor

0.59%

Your

Fund’s

Expenses

Franklin

Conservative

Allocation

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$997.30

$3.16

$1,022.05

$3.19

0.63%

C

$1,000

$992.90

$6.92

$1,018.26

$7.01

1.38%

R

$1,000

$996.00

$4.41

$1,020.79

$4.46

0.88%

R6

$1,000

$998.40

$1.40

$1,023.80

$1.42

0.28%

Advisor

$1,000

$997.90

$1.90

$1,023.31

$1.92

0.38%

10

franklintempleton.com

Annual

Report

Franklin

Moderate

Allocation

Fund

This

annual

report

for

Franklin

Moderate

Allocation

Fund

covers

the

fiscal

year

ended

December

3

1

,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

moderate

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.14%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Moderate

Allocation

Fund

Benchmark-

NR

(Blended

Benchmark-NR),

which

consists

of

60%

MSCI

All

Country

World

Index-NR

and

40%

Bloomberg

Multiverse

Index,

posted

a

-17.26%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

We

generally

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio,

but

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

Under

normal

market

conditions,

we

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

equity

funds

and

40%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

on

income

as

a

means

of

diversification

to

help

offset

the

risk

presented

by

exposure

to

equity

investments

and

on

maximizing

income

appropriate

to

the

Fund’s

specific

risk

profile.

We

also

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

asset

allocation

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

perform

better

than

its

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

45.3%

Domestic

Fixed

Income

35.8%

Foreign

Equity

12.6%

Foreign

Fixed

Income

2.5%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.8%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

34

.

Franklin

Moderate

Allocation

Fund

11

franklintempleton.com

Annual

Report

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Similarly,

ClearBridge

Large

Cap

Value

Fund

and

its

value

style

bias

also

contributed.

International

developed

market

equities,

however,

detracted

from

relative

performance.

Namely,

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

(IU)

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

rising

interest

rate

environment.

Shorter

duration

positioning

also

helped

Western

Asset

Short-Term

Bond

Fund

to

contribute

to

relative

performance.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

for

the

12-month

period.

Franklin

Moderate

Allocation

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

Moderate

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.1%

Franklin

U.S.

Core

Bond

ETF

13.4%

Franklin

Growth

Fund,

Class

R6

9.9%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

7.7%

Franklin

International

Core

Equity

(IU)

Fund

6.0%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

5.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.2%

Franklin

U.S.

Treasury

Bond

ETF

3.7%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

3.0%

Schwab

U.S.

TIPS

ETF

2.7%

Performance

Summary

as

of

December

31,

2022

Franklin

Moderate

Allocation

Fund

12

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/2

2

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-16.14%

-20.77%

5-Year

+18.34%

+2.26%

10-Year

+66.72%

+4.65%

Advisor

1-Year

-15.97%

-15.97%

5-Year

+19.82%

+3.68%

10-Year

+70.88%

+5.50%

See

page

14

for

Performance

Summary

footnotes.

Franklin

Moderate

Allocation

Fund

Performance

Summary

13

franklintempleton.com

Annual

Report

See

page

14

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

Moderate

Allocation

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Smaller

or

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Bond

prices

gen-

erally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Net

expenses

are

capped

under

a

contrac-

tual

agreement,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Blended

Benchmark-NR

(60%

MSCI

ACWI-NR

and

40%

Bloomberg

Multiverse

Index)

was

calculated

internally.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

in-

clude

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high-yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1688

$0.3801

$0.5489

C

$0.0876

$0.3801

$0.4677

R

$0.1383

$0.3801

$0.5184

R6

$0.2166

$0.3801

$0.5967

Advisor

$0.2031

$0.3801

$0.5832

Total

Annual

Operating

Expenses

6

Share

Class

A

0.85%

Advisor

0.60%

Your

Fund’s

Expenses

Franklin

Moderate

Allocation

Fund

15

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,008.00

$3.17

$1,022.05

$3.19

0.63%

C

$1,000

$1,003.30

$6.95

$1,018.27

$7.00

1.38%

R

$1,000

$1,006.60

$4.43

$1,020.79

$4.47

0.88%

R6

$1,000

$1,009.20

$1.37

$1,023.85

$1.38

0.27%

Advisor

$1,000

$1,008.50

$1.91

$1,023.31

$1.92

0.38%

16

franklintempleton.com

Annual

Report

Franklin

Growth

Allocation

Fund

This

annual

report

for

Franklin

Growth

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

higher

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.16%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Linked

Franklin

Growth

Allocation

Fund

Benchmark-NR

(Blended

Benchmark-NR),

which

consists

of

80%

MSCI

All

Country

World

Index-NR

and

20%

Bloomberg

Multiverse

Index,

posted

a

-17.77%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-16.01%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

18

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

We

generally

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio,

but

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

Under

normal

market

conditions,

we

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

80%

equity

funds

and

20%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

on

income

as

a

means

of

diversification

to

help

offset

the

risk

presented

by

exposure

to

equity

investments

and

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

We

also

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

asset

allocation

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

perform

better

than

its

benchmark

index

for

the

12-month

period

ended

December

31,

2022.

Fund

selection

overall

was

also

positive.

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

60.8%

Domestic

Fixed

Income

17.3%

Foreign

Equity

16.8%

Foreign

Fixed

Income

1.4%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.7%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

41

.

Franklin

Growth

Allocation

Fund

17

franklintempleton.com

Annual

Report

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Similarly,

ClearBridge

Large

Cap

Value

Fund

and

its

value

style

bias

also

contributed.

International

developed

market

equities,

however,

detracted

from

relative

performance.

Namely,

Franklin

International

Growth

Fund

and

Franklin

International

Core

Equity

(IU)

Fund

underperformed

as

global

developed

equities

collectively

posted

their

worst

annual

loss

since

the

2008

global

financial

crisis.

Franklin

Growth

Allocation

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

12/31/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

29.2%

Franklin

Growth

Fund,

Class

R6

13.4%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

8.5%

Franklin

International

Core

Equity

(IU)

Fund

8.1%

Franklin

U.S.

Core

Bond

ETF

6.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.7%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.5%

Franklin

U.S.

Equity

Index

ETF

3.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.5%

Templeton

Foreign

Fund,

Class

R6

1.9%

Performance

Summary

as

of

December

31,

2022

Franklin

Growth

Allocation

Fund

18

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-17.16%

-21.71%

5-Year

+25.99%

+3.55%

10-Year

+98.00%

+6.47%

Advisor

1-Year

-16.99%

-16.99%

5-Year

+27.57%

+4.99%

10-Year

+102.98%

+7.34%

See

page

20

for

Performance

Summary

footnotes.

Franklin

Growth

Allocation

Fund

Performance

Summary

19

franklintempleton.com

Annual

Report

See

page

20

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

Growth

Allocation

Fund

Performance

Summary

20

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Net

expenses

are

capped

under

a

contrac-

tual

agreement,

which

cannot

be

terminated

prior

to

4/30/23

without

Board

consent.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Blended

Benchmark-NR

(80%

MSCI

ACWI-NR

and

20%

Bloomberg

Multiverse

Index)

was

calculated

internally.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Net

Returns

(NR)

in-

clude

income

net

of

tax

withholding

when

dividends

are

paid.

The

Bloomberg

Multiverse

Index

provides

a

broad-based

measure

of

the

global

fixed

income

bond

market.

The

index

represents

the

union

of

the

Global

Aggregate

Index

and

the

Global

High

Yield

Index

and

captures

investment-grade

and

high-yield

securities

in

all

eligible

currencies.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1821

$0.5946

$0.7767

C

$0.0896

$0.5946

$0.6842

R

$0.1507

$0.5946

$0.7453

R6

$0.2296

$0.5946

$0.8242

Advisor

$0.2137

$0.5946

$0.8083

Total

Annual

Operating

Expenses

6

Share

Class

A

0.89%

Advisor

0.64%

Your

Fund’s

Expenses

Franklin

Growth

Allocation

Fund

21

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,018.60

$3.35

$1,021.88

$3.36

0.66%

C

$1,000

$1,014.40

$7.15

$1,018.10

$7.17

1.41%

R

$1,000

$1,016.90

$4.62

$1,020.62

$4.63

0.91%

R6

$1,000

$1,019.90

$1.41

$1,023.81

$1.42

0.28%

Advisor

$1,000

$1,019.80

$2.08

$1,023.14

$2.09

0.41%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.89

$14.95

$14.08

$13.33

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.27

0.23

0.22

0.32

0.39

Net

realized

and

unrealized

gains

(losses)

...........

(2.53)

0.99

1.05

1.43

(0.90)

Total

from

investment

operations

....................

(2.26)

1.22

1.27

1.75

(0.51)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.35)

(0.23)

(0.33)

(0.38)

Net

realized

gains

.............................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...............................

(0.46)

(1.28)

(0.40)

(1.00)

(1.02)

Net

asset

value,

end

of

year

.......................

$12.17

$14.89

$14.95

$14.08

$13.33

Total

return

d

...................................

(15.22)%

8.18%

9.30%

13.25%

(3.44)%

Ratios

to

average

net

assets

Expenses

e

,f

....................................

0.63%

g

0.62%

0.63%

0.63%

g

0.63%

g

Net

investment

income

c

...........................

2.08%

1.47%

1.54%

2.25%

2.57%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$796,888

$1,081,071

$941,777

$839,134

$778,221

Portfolio

turnover

rate

............................

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.54

$14.62

$13.77

$13.06

$14.57

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.16

0.09

0.10

0.20

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(2.47)

0.99

1.05

1.40

(0.84)

Total

from

investment

operations

....................

(2.31)

1.08

1.15

1.60

(0.60)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.12)

(0.23)

(0.13)

(0.22)

(0.27)

Net

realized

gains

.............................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...............................

(0.36)

(1.16)

(0.30)

(0.89)

(0.91)

Net

asset

value,

end

of

year

.......................

$11.87

$14.54

$14.62

$13.77

$13.06

Total

return

d

...................................

(15.90)%

7.40%

8.51%

12.35%

(4.14)%

Ratios

to

average

net

assets

Expenses

e

,

f

....................................

1.38%

g

1.37%

1.38%

1.38%

g

1.38%

g

Net

investment

income

c

...........................

1.24%

0.61%

0.76%

1.50%

1.82%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$89,012

$152,244

$212,656

$252,407

$285,547

Portfolio

turnover

rate

............................

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.83

$14.88

$14.02

$13.28

$14.80

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.24

0.18

0.18

0.28

0.33

Net

realized

and

unrealized

gains

(losses)

...........

(2.53)

1.01

1.05

1.42

(0.87)

Total

from

investment

operations

....................

(2.29)

1.19

1.23

1.70

(0.54)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.19)

(0.31)

(0.20)

(0.29)

(0.34)

Net

realized

gains

.............................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...............................

(0.43)

(1.24)

(0.37)

(0.96)

(0.98)

Net

asset

value,

end

of

year

.......................

$12.11

$14.83

$14.88

$14.02

$13.28

Total

return

....................................

(15.48)%

7.99%

8.98%

12.93%

(3.64)%

Ratios

to

average

net

assets

Expenses

d

,e

....................................

0.88%

f

0.87%

0.88%

0.88%

f

0.88%

f

Net

investment

income

c

...........................

1.87%

1.14%

1.28%

2.00%

2.32%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$45,036

$55,629

$66,208

$71,153

$80,338

Portfolio

turnover

rate

............................

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

0

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.87

$14.92

$14.06

$13.31

$14.84

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.32

0.28

0.26

0.36

0.44

Net

realized

and

unrealized

gains

(losses)

...........

(2.55)

1.00

1.05

1.44

(0.90)

Total

from

investment

operations

....................

(2.23)

1.28

1.31

1.80

(0.46)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.26)

(0.40)

(0.28)

(0.38)

(0.43)

Net

realized

gains

.............................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...............................

(0.50)

(1.33)

(0.45)

(1.05)

(1.07)

Net

asset

value,

end

of

year

.......................

$12.14

$14.87

$14.92

$14.06

$13.31

Total

return

....................................

(15.01)%

8.60%

9.61%

13.64%

(3.11)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.40%

0.39%

0.40%

0.42%

0.40%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.29%

e

0.30%

0.30%

0.31%

e

0.29%

e

Net

investment

income

c

...........................

2.45%

1.78%

1.86%

2.57%

2.91%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,274

$2,852

$2,537

$2,364

$2,253

Portfolio

turnover

rate

............................

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.89

$14.95

$14.08

$13.33

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.29

0.27

0.25

0.36

0.43

Net

realized

and

unrealized

gains

(losses)

...........

(2.53)

0.99

1.06

1.43

(0.90)

Total

from

investment

operations

....................

(2.24)

1.26

1.31

1.79

(0.47)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.25)

(0.39)

(0.27)

(0.37)

(0.42)

Net

realized

gains

.............................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...............................

(0.49)

(1.32)

(0.44)

(1.04)

(1.06)

Net

asset

value,

end

of

year

.......................

$12.16

$14.89

$14.95

$14.08

$13.33

Total

return

....................................

(15.07)%

8.45%

9.58%

13.53%

(3.19)%

Ratios

to

average

net

assets

Expenses

d

,e

....................................

0.38%

f

0.37%

0.38%

0.38%

f

0.38%

f

Net

investment

income

c

...........................

2.20%

1.72%

1.79%

2.50%

2.82%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$30,231

$54,537

$48,041

$44,022

$38,031

Portfolio

turnover

rate

............................

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23

%

for

the

year

ended

December

31,

2022.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

Conservative

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.2%

Alternative

Strategies

0.9%

a

Franklin

Systematic

Style

Premia

ETF

....................................

432,351

$

9,183,135

Domestic

Equity

29.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

720,030

26,259,497

a

Franklin

Growth

Fund,

Class

R6

........................................

604,999

62,248,347

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

12,245,561

145,722,174

a

Franklin

U.S.

Equity

Index

ETF

.........................................

358,250

11,904,898

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

.............................

855,378

33,567,342

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........................

131,925

5,018,427

284,720,685

Domestic

Fixed

Income

54.7%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,512,728

30,701,244

a

Franklin

Investment

Grade

Corporate

ETF

.................................

1,224,889

25,563,434

a

Franklin

U.S.

Core

Bond

ETF

..........................................

9,314,891

197,196,243

a

Franklin

U.S.

Treasury

Bond

ETF

.......................................

2,647,662

54,806,603

iShares

Floating

Rate

Bond

ETF

........................................

492,200

24,772,426

Schwab

U.S.

TIPS

ETF

...............................................

755,000

39,101,451

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

12,126,117

113,500,451

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

11,012,944

39,756,727

525,398,579

Foreign

Equity

8.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

1,377,786

12,220,962

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

3,685,649

37,040,769

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

381,073

5,491,269

iShares

Core

MSCI

EAFE

ETF

.........................................

114,740

7,072,574

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

514,181

8,417,149

a

Templeton

Foreign

Fund,

Class

R6

......................................

1,341,145

9,012,492

79,255,215

Foreign

Fixed

Income

3.9%

a

Franklin

High

Yield

Corporate

ETF

......................................

883,783

19,487,415

a

Franklin

International

Aggregate

Bond

ETF

................................

961,041

18,456,792

37,944,207

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$976,065,512)

...............................................................

936,501,821

a

a

a

a

Short

Term

Investments

2.6%

a

Money

Market

Funds

2.2%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

..................

21,171,800

21,171,800

Total

Money

Market

Funds

(Cost

$21,171,800)

..................................

21,171,800

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.4%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$4,274,880)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$490,457)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$449,333)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$3,335,090)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$4,359,185)

...............

$

4,272,876

$

4,272,876

Total

Repurchase

Agreements

(Cost

$4,272,876)

................................

4,272,876

Total

Short

Term

Investments

(Cost

$25,444,676

)

................................

25,444,676

a

Total

Investments

(Cost

$1,001,510,188)

99.8%

..................................

$961,946,497

Other

Assets,

less

Liabilities

0.2%

.............................................

1,494,185

Net

Assets

100.0%

...........................................................

$963,440,682

See

Abbreviations

on

page

61

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.08

$16.17

$15.08

$14.06

$16.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.22

0.22

0.19

0.28

0.34

Net

realized

and

unrealized

gains

(losses)

...........

(2.82)

1.77

1.60

2.15

(1.11)

Total

from

investment

operations

....................

(2.60)

1.99

1.79

2.43

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.17)

(0.41)

(0.22)

(0.28)

(0.33)

Net

realized

gains

.............................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...............................

(0.55)

(2.08)

(0.70)

(1.41)

(1.28)

Net

asset

value,

end

of

year

.......................

$12.93

$16.08

$16.17

$15.08

$14.06

Total

return

d

...................................

(16.14)%

12.38%

12.37%

17.40%

(4.82)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.63%

0.63%

0.64%

0.63%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.63%

f,g

0.62%

0.64%

f,g

0.63%

f,g

0.63%

f

Net

investment

income

c

...........................

1.59%

1.29%

1.29%

1.78%

2.02%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,349,466

$1,794,149

$1,573,566

$1,456,531

$1,318,198

Portfolio

turnover

rate

............................

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.49

$15.64

$14.60

$13.65

$15.66

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.11

0.07

0.07

0.15

0.17

Net

realized

and

unrealized

gains

(losses)

...........

(2.72)

1.73

1.56

2.09

(1.02)

Total

from

investment

operations

....................

(2.61)

1.80

1.63

2.24

(0.85)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.09)

(0.28)

(0.11)

(0.16)

(0.21)

Net

realized

gains

.............................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...............................

(0.47)

(1.95)

(0.59)

(1.29)

(1.16)

Net

asset

value,

end

of

year

.......................

$12.41

$15.49

$15.64

$14.60

$13.65

Total

return

d

...................................

(16.85)%

11.55%

11.57%

16.52%

(5.54)%

Ratios

to

average

net

assets

Expenses

e

,f

....................................

1.38%

g

1.37%

1.39%

g

1.38%

g

1.38%

Net

investment

income

c

...........................

0.79%

0.43%

0.50%

1.03%

1.27%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$130,268

$205,894

$289,283

$339,845

$375,494

Portfolio

turnover

rate

............................

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.05

$16.15

$15.05

$14.04

$16.08

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.19

0.17

0.15

0.23

0.27

Net

realized

and

unrealized

gains

(losses)

...........

(2.82)

1.77

1.61

2.15

(1.07)

Total

from

investment

operations

....................

(2.63)

1.94

1.76

2.38

(0.80)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.14)

(0.37)

(0.18)

(0.24)

(0.29)

Net

realized

gains

.............................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...............................

(0.52)

(2.04)

(0.66)

(1.37)

(1.24)

Net

asset

value,

end

of

year

.......................

$12.90

$16.05

$16.15

$15.05

$14.04

Total

return

....................................

(16.37)%

12.05%

12.17%

17.05%

(5.04)%

Ratios

to

average

net

assets

Expenses

d

,

e

....................................

0.88%

f

0.87%

0.89%

f

0.88%

f

0.88%

Net

investment

income

c

...........................

1.34%

1.01%

1.01%

1.53%

1.77%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$52,069

$69,211

$68,789

$78,999

$87,277

Portfolio

turnover

rate

............................

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.08

$16.17

$15.08

$14.06

$16.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.27

0.27

0.24

0.34

0.41

Net

realized

and

unrealized

gains

(losses)

...........

(2.83)

1.78

1.60

2.15

(1.12)

Total

from

investment

operations

....................

(2.56)

2.05

1.84

2.49

(0.71)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.22)

(0.47)

(0.27)

(0.34)

(0.39)

Net

realized

gains

.............................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...............................

(0.60)

(2.14)

(0.75)

(1.47)

(1.34)

Net

asset

value,

end

of

year

.......................

$12.92

$16.08

$16.17

$15.08

$14.06

Total

return

....................................

(15.91)%

12.74%

12.76%

17.81%

(4.49)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.33%

0.33%

0.33%

0.34%

0.35%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.28%

e

0.30%

0.30%

e

0.29%

e

0.29%

Net

investment

income

c

...........................

1.97%

1.60%

1.61%

2.12%

2.36%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$6,065

$7,261

$6,767

$6,666

$5,141

Portfolio

turnover

rate

............................

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.10

$16.19

$15.09

$14.07

$16.12

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.25

0.27

0.23

0.32

0.39

Net

realized

and

unrealized

gains

(losses)

...........

(2.83)

1.76

1.61

2.15

(1.11)

Total

from

investment

operations

....................

(2.58)

2.03

1.84

2.47

(0.72)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.20)

(0.45)

(0.26)

(0.32)

(0.38)

Net

realized

gains

.............................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...............................

(0.58)

(2.12)

(0.74)

(1.45)

(1.33)

Net

asset

value,

end

of

year

.......................

$12.94

$16.10

$16.19

$15.09

$14.07

Total

return

....................................

(15.97)%

12.64%

12.72%

17.68%

(4.57)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.38%

0.38%

0.39%

0.38%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.38%

e,f

0.37%

0.39%

e,f

0.38%

e,f

0.38%

e

Net

investment

income

c

...........................

1.78%

1.55%

1.53%

2.03%

2.27%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$48,288

$78,346

$66,421

$61,026

$55,052

Portfolio

turnover

rate

............................

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22

%

for

the

year

ended

December

31,

2022.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.2%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

....................................

709,898

$

15,078,234

Domestic

Equity

45.3%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

1,810,484

66,028,359

a

Franklin

Growth

Fund,

Class

R6

........................................

1,520,824

156,477,591

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

30,834,587

366,931,589

a

Franklin

U.S.

Equity

Index

ETF

.........................................

932,375

30,983,474

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

.............................

2,131,067

83,628,823

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........................

332,000

12,629,280

716,679,116

Domestic

Fixed

Income

35.8%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,460,245

30,242,539

a

Franklin

Investment

Grade

Corporate

ETF

.................................

1,321,398

27,577,576

a

Franklin

U.S.

Core

Bond

ETF

..........................................

10,048,991

212,737,140

a

Franklin

U.S.

Treasury

Bond

ETF

.......................................

2,856,322

59,125,865

iShares

Floating

Rate

Bond

ETF

........................................

530,975

26,723,972

Schwab

U.S.

TIPS

ETF

...............................................

814,542

42,185,130

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

13,081,834

122,445,969

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

13,374,472

48,281,843

569,320,034

Foreign

Equity

12.6%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,436,822

30,484,612

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

9,472,634

95,199,975

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

966,886

13,932,824

iShares

Core

MSCI

EAFE

ETF

.........................................

275,447

16,978,553

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,301,233

21,301,187

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,402,474

22,864,626

200,761,777

Foreign

Fixed

Income

2.5%

a

Franklin

High

Yield

Corporate

ETF

......................................

953,445

21,023,462

a

Franklin

International

Aggregate

Bond

ETF

................................

947,713

18,200,828

39,224,290

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,517,280,028)

..............................................................

1,541,063,451

a

a

a

a

Short

Term

Investments

2.5%

a

Money

Market

Funds

2.2%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

..................

34,816,251

34,816,251

Total

Money

Market

Funds

(Cost

$34,816,251)

..................................

34,816,251

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$4,574,851)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$524,872)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$480,863)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$3,569,116)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$4,665,072)

...............

$

4,572,707

$

4,572,707

Total

Repurchase

Agreements

(Cost

$4,572,707)

................................

4,572,707

Total

Short

Term

Investments

(Cost

$39,388,958

)

................................

39,388,958

a

Total

Investments

(Cost

$1,556,668,986)

99.7%

..................................

$1,580,452,409

Other

Assets,

less

Liabilities

0.3%

.............................................

5,703,966

Net

Assets

100.0%

...........................................................

$1,586,156,375

See

Abbreviations

on

page

61

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.99

$19.64

$18.13

$16.54

$19.34

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.20

0.23

0.19

0.25

0.30

Net

realized

and

unrealized

gains

(losses)

...........

(3.65)

2.97

2.32

3.36

(1.54)

Total

from

investment

operations

....................

(3.45)

3.20

2.51

3.61

(1.24)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.18)

(0.48)

(0.22)

(0.25)

(0.30)

Net

realized

gains

.............................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...............................

(0.77)

(2.85)

(1.00)

(2.02)

(1.56)

Net

asset

value,

end

of

year

.......................

$15.77

$19.99

$19.64

$18.13

$16.54

Total

return

d

...................................

(17.16)%

16.41%

14.58%

21.90%

(6.45)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

0.67%

0.66%

0.68%

0.68%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.66%

f

0.66%

g

0.67%

f

0.65%

f

0.65%

f

Net

investment

income

c

...........................

1.15%

1.07%

1.07%

1.32%

1.48%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$977,212

$1,258,769

$1,074,822

$974,391

$837,327

Portfolio

turnover

rate

............................

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.24

$19.03

$17.62

$16.12

$18.81

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.06

0.04

0.05

0.10

0.10

Net

realized

and

unrealized

gains

(losses)

...........

(3.50)

2.91

2.25

3.27

(1.43)

Total

from

investment

operations

....................

(3.44)

2.95

2.30

3.37

(1.33)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.09)

(0.37)

(0.11)

(0.10)

(0.10)

Net

realized

gains

.............................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...............................

(0.68)

(2.74)

(0.89)

(1.87)

(1.36)

Net

asset

value,

end

of

year

.......................

$15.12

$19.24

$19.03

$17.62

$16.12

Total

return

d

...................................

(17.82)%

15.59%

13.74%

20.95%

(7.13)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

e

.....

1.42%

1.41%

1.42%

1.43%

1.42%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.41%

f

1.41%

g

1.42%

f,g

1.40%

f

1.40%

f

Net

investment

income

c

...........................

0.36%

0.20%

0.28%

0.57%

0.73%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$95,210

$141,604

$186,526

$202,689

$206,933

Portfolio

turnover

rate

............................

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$19.68

$19.38

$17.89

$16.34

$19.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.15

0.16

0.14

0.18

0.22

Net

realized

and

unrealized

gains

(losses)

...........

(3.59)

2.93

2.30

3.33

(1.49)

Total

from

investment

operations

....................

(3.44)

3.09

2.44

3.51

(1.27)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.15)

(0.42)

(0.17)

(0.19)

(0.23)

Net

realized

gains

.............................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...............................

(0.74)

(2.79)

(0.95)

(1.96)

(1.49)

Net

asset

value,

end

of

year

.......................

$15.50

$19.68

$19.38

$17.89

$16.34

Total

return

....................................

(17.40)%

16.14%

14.30%

21.56%

(6.68)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.92%

0.91%

0.92%

0.93%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.91%

e

0.91%

f

0.92%

e,f

0.90%

e

0.90%

e

Net

investment

income

c

...........................

0.88%

0.77%

0.77%

1.07%

1.23%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$37,341

$54,097

$54,297

$62,973

$72,100

Portfolio

turnover

rate

............................

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.10

$19.73

$18.20

$16.60

$19.40

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.26

0.29

0.26

0.32

0.40

Net

realized

and

unrealized

gains

(losses)

...........

(3.68)

3.01

2.34

3.37

(1.57)

Total

from

investment

operations

....................

(3.42)

3.30

2.60

3.69

(1.17)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.23)

(0.56)

(0.29)

(0.32)

(0.37)

Net

realized

gains

.............................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...............................

(0.82)

(2.93)

(1.07)

(2.09)

(1.63)

Net

asset

value,

end

of

year

.......................

$15.86

$20.10

$19.73

$18.20

$16.60

Total

return

....................................

(16.92)%

16.85%

15.06%

22.30%

(6.07)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.34%

0.34%

0.35%

0.37%

0.36%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.29%

e

0.30%

0.30%

e

0.27%

e

0.28%

e

Net

investment

income

c

...........................

1.51%

1.37%

1.44%

1.70%

1.85%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$4,071

$5,434

$5,592

$4,806

$4,224

Portfolio

turnover

rate

............................

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.12

$19.76

$18.22

$16.61

$19.42

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.24

0.28

0.24

0.30

0.36

Net

realized

and

unrealized

gains

(losses)

...........

(3.68)

2.98

2.34

3.38

(1.56)

Total

from

investment

operations

....................

(3.44)

3.26

2.58

3.68

(1.20)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.........

(0.21)

(0.53)

(0.26)

(0.30)

(0.35)

Net

realized

gains

.............................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...............................

(0.80)

(2.90)

(1.04)

(2.07)

(1.61)

Net

asset

value,

end

of

year

.......................

$15.88

$20.12

$19.76

$18.22

$16.61

Total

return

....................................

(16.99)%

16.71%

14.90%

22.22%

(6.23)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.42%

0.41%

0.43%

0.43%

0.42%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.41%

e

0.41%

f

0.42%

e

0.40%

e

0.40%

e

Net

investment

income

c

...........................

1.39%

1.32%

1.32%

1.57%

1.73%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$43,957

$60,851

$51,693

$44,684

$38,685

Portfolio

turnover

rate

............................

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22

%

for

the

year

ended

December

31,

2022.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

Growth

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.3%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

....................................

521,782

$

11,082,650

Domestic

Equity

60.8%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

1,794,513

65,445,907

a

Franklin

Growth

Fund,

Class

R6

........................................

1,508,486

155,208,167

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

28,371,247

337,617,838

a

Franklin

U.S.

Equity

Index

ETF

.........................................

1,042,925

34,657,128

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

.............................

2,516,976

98,772,934

a

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........................

328,125

12,481,875

704,183,849

Domestic

Fixed

Income

17.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

1,695,570

14,819,283

a

Franklin

Investment

Grade

Corporate

ETF

.................................

436,322

9,106,040

a

Franklin

U.S.

Core

Bond

ETF

..........................................

3,318,263

70,247,628

a

Franklin

U.S.

Treasury

Bond

ETF

.......................................

943,118

19,522,543

iShares

Floating

Rate

Bond

ETF

........................................

175,300

8,822,849

Schwab

U.S.

TIPS

ETF

...............................................

268,915

13,927,108

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

4,319,642

40,431,845

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

6,179,727

22,308,813

199,186,109

Foreign

Equity

16.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,297,494

29,248,769

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

9,346,931

93,936,658

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

953,309

13,737,178

iShares

Core

MSCI

EAFE

ETF

.........................................

244,022

15,041,516

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,308,871

21,426,214

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,354,208

22,540,275

195,930,610

Foreign

Fixed

Income

1.4%

a

Franklin

High

Yield

Corporate

ETF

......................................

314,781

6,940,921

a

Franklin

International

Aggregate

Bond

ETF

................................

463,174

8,895,257

15,836,178

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,050,724,568)

..............................................................

1,126,219,396

a

a

a

a

Short

Term

Investments

2.8%

a

Money

Market

Funds

2.1%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

..................

23,941,645

23,941,645

Total

Money

Market

Funds

(Cost

$23,941,645)

..................................

23,941,645

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.7%

d

Joint

Repurchase

Agreement,

4.22%,

1/03/23

(Maturity

Value

$8,476,500)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$972,509)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$890,965)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$6,613,026)

Collateralized

by

U.S.

Government

Agency

Securities,

1.75%

-

7%,

7/02/24

-

12/15/52;

U.S.

Government

Agency

Strips,

1/15/23

-

2/15/42;

and

U.S.

Treasury

Notes,

0.13%

-

0.5%,

10/15/23

-

3/31/25

(valued

at

$8,643,665)

...............

$

8,472,527

$

8,472,527

Total

Repurchase

Agreements

(Cost

$8,472,527)

................................

8,472,527

Total

Short

Term

Investments

(Cost

$32,414,172

)

................................

32,414,172

a

Total

Investments

(Cost

$1,083,138,740)

100.1%

................................

$1,158,633,568

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(843,017)

Net

Assets

100.0%

...........................................................

$1,157,790,551

See

Abbreviations

on

page

61

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$78,168,081

$94,805,433

$41,977,536

Cost

-

Controlled

affiliates

(Note

3f)

..........................

—

35,072,914

33,545,630

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

919,069,231

1,422,217,932

999,143,047

Cost

-

Unaffiliated

repurchase

agreements

....................

4,272,876

4,572,707

8,472,527

Value

-

Unaffiliated

issuers

................................

$70,946,451

$85,887,655

$37,791,473

Value

-

Controlled

affiliates

(Note

3f)

.........................

—

30,484,612

29,248,769

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

886,727,170

1,459,507,435

1,083,120,799

Value

-

Unaffiliated

repurchase

agreements

....................

4,272,876

4,572,707

8,472,527

Cash

..................................................

—

182

208

Receivables:

Investment

securities

sold

.................................

3,835,526

8,317,922

2,928,961

Capital

shares

sold

......................................

253,761

464,650

338,637

Dividends

and

interest

...................................

39,106

98,691

98,118

Total

assets

........................................

966,074,890

1,589,333,854

1,161,999,492

Liabilities:

Payables:

Capital

shares

redeemed

.................................

1,814,851

1,913,482

3,129,107

Asset

allocation

fees

.....................................

218,211

333,245

302,317

Distribution

fees

........................................

271,048

430,525

311,480

Transfer

agent

fees

......................................

295,804

472,640

436,441

Trustees'

fees

and

expenses

...............................

991

847

928

Distributions

to

shareholders

...............................

46

—

—

Accrued

expenses

and

other

liabilities

.........................

33,257

26,740

28,668

Total

liabilities

.......................................

2,634,208

3,177,479

4,208,941

Net

assets,

at

value

...............................

$963,440,682

$1,586,156,375

$1,157,790,551

Net

assets

consist

of:

Paid-in

capital

...........................................

$1,016,4

10,468

$1,567,461,039

$1,064,723,431

Total

distributable

earnings

(losses)

...........................

(52,969,786)

18,695,336

93,067,120

Net

assets,

at

value

...............................

$963,440,682

$1,586,156,375

$1,157,790,551

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Class

A:

Net

assets,

at

value

.....................................

$796,887,937

$1,349,465,872

$977,212,108

Shares

outstanding

......................................

65,500,755

104,397,198

61,970,867

Net

asset

value

per

share

a

................................

$12.17

$12.93

$15.77

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$12.88

$13.68

$16.69

Class

C:

Net

assets,

at

value

.....................................

$89,012,462

$130,267,854

$95,210,219

Shares

outstanding

......................................

7,497,318

10,494,987

6,297,840

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.87

$12.41

$15.12

Class

R:

Net

assets,

at

value

.....................................

$45,036,024

$52,069,471

$37,340,761

Shares

outstanding

......................................

3,719,314

4,037,338

2,408,856

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.11

$12.90

$15.50

Class

R6:

Net

assets,

at

value

.....................................

$2,273,573

$6,064,772

$4,070,672

Shares

outstanding

......................................

187,209

469,375

256,600

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.14

$12.92

$15.86

Advisor

Class:

Net

assets,

at

value

.....................................

$30,230,686

$48,288,406

$43,956,791

Shares

outstanding

......................................

2,485,056

3,732,093

2,768,182

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.16

$12.94

$15.88

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$3,838,935

$4,545,190

$2,181,148

Controlled

affiliates

(Note

3f

)

...............................

—

1,217,391

1,152,454

Non-controlled

affiliates

(Note

3

f

)

...........................

26,098,649

33,831,219

19,507,117

Interest:

Unaffiliated

issuers

......................................

17,430

27,264

21,255

Total

investment

income

.................................

29,955,014

39,621,064

22,861,974

Expenses:

Asset

allocation

fees

(Note

3

a

)

...............................

2,784,213

4,478,504

3,167,037

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

2,271,068

3,765,667

2,646,090

    Class

C

..............................................

1,139,826

1,582,637

1,110,117

    Class

R

..............................................

245,164

288,420

213,513

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

1,052,109

1,865,674

1,582,087

    Class

C

..............................................

131,082

195,131

165,283

    Class

R

..............................................

56,910

71,419

63,700

    Class

R6

.............................................

3,291

4,435

3,174

    Advisor

Class

..........................................

45,555

77,362

74,877

Custodian

fees

(Note

4

)

....................................

2,747

3,558

2,655

Reports

to

shareholders

fees

................................

9,357

4,544

21,365

Registration

and

filing

fees

..................................

65,281

56,920

85,535

Professional

fees

.........................................

63,056

62,600

59,411

Trustees'

fees

and

expenses

................................

13,408

20,694

14,867

Other

..................................................

27,152

38,776

29,467

Total

expenses

.......................................

7,910,219

12,516,341

9,239,178

Expense

reductions

(Note

4

)

.............................

(235)

(520)

(476)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(89,310)

(150,468)

(107,619)

Net

expenses

.......................................

7,820,674

12,365,353

9,131,083

Net

investment

income

..............................

22,134,340

27,255,711

13,730,891

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(5,321,381)

(10,579,359)

(10,717,933)

Controlled

affiliates

(Not

e

3f)

.............................

—

(458,415)

(616,481)

Non-controlled

affiliates

(Note

3

f

)

..........................

(22,921,094)

(25,485,794)

3,176,326

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

11,187,846

28,094,740

26,825,001

Net

realized

gain

(loss)

................................

(17,054,629)

(8,428,828)

18,666,913

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(10,165,310)

(14,732,852)

(12,900,833)

Controlled

affiliates

(Not

e

3f)

.............................

—

(7,166,388)

(6,748,061)

Non-controlled

affiliates

(Note

3

f

)

..........................

(196,635,794)

(340,417,615)

(270,937,991)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(206,801,104)

(362,316,855)

(290,586,885)

Net

realized

and

unrealized

gain

(loss)

..........................

(223,855,733)

(370,745,683)

(271,919,972)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(201,721,393)

$(343,489,972)

$(258,189,081)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$22,134,340

$17,784,737

$27,255,711

$24,931,210

Net

realized

gain

(loss)

............

(17,054,629)

116,406,605

(8,428,828)

267,612,917

Net

change

in

unrealized

appreciation

(depreciation)

.................

(206,801,104)

(30,826,627)

(362,316,855)

(50,875,245)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(201,721,393)

103,364,715

(343,489,972)

241,668,882

Distributions

to

shareholders:

Class

A

........................

(31,213,370)

(86,399,978)

(58,905,309)

(209,165,195)

Class

C

........................

(3,086,

852)

(11,677,282)

(5,421,869)

(24,425,442)

Class

R

........................

(1,580,604)

(4,419,238)

(2,135,695)

(8,018,288)

Class

R6

.......................

(94,744)

(235,873)

(273,579)

(857,248)

Advisor

Class

...................

(1,374,009)

(4,543,024)

(2,593,327)

(9,375,978)

Total

distributions

to

shareholders

.....

(37,349,579)

(107,275,395)

(69,329,779)

(251,842,151)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(90,653,150)

146,064,064

(99,590,743)

234,619,766

Class

C

........................

(37,709,251)

(63,095,079)

(37,562,809)

(88,089,263)

Class

R

........................

(218,090)

(11,035,523)

(3,900,918)

499,570

Class

R6

.......................

(58,553)

325,049

240,973

537,584

Advisor

Class

...................

(15,182,389)

6,764,713

(15,072,697)

12,642,693

Total

capital

share

transactions

.......

(143,821,433)

79,023,224

(155,886,194)

160,210,350

Net

increase

(decrease)

in

net

assets

.....................

(382,892,405)

75,112,544

(568,705,945)

150,037,081

Net

assets:

Beginning

of

year

..................

1,346,333,087

1,271,220,543

2,154,862,320

2,004,825,239

End

of

year

......................

$963,440,682

$1,346,333,087

$1,586,156,375

$2,154,862,320

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

Franklin

Growth

Allocation

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$13,730,891

$14,136,976

Net

realized

gain

(loss)

.................................................

18,666,913

210,926,900

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(290,586,885)

(5,734,706)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(258,189,081)

219,329,170

Distributions

to

shareholders:

Class

A

.............................................................

(47,605,496)

(160,033,262)

Class

C

.............................................................

(4,561,016)

(18,823,850)

Class

R

.............................................................

(1,846,046)

(6,956,107)

Class

R6

............................................................

(215,043)

(717,514)

Advisor

Class

........................................................

(2,350,580)

(7,939,547)

Total

distributions

to

shareholders

..........................................

(56,578,181)

(194,470,280)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(20,082,840)

168,099,386

Class

C

.............................................................

(17,621,289)

(51,602,781)

Class

R

.............................................................

(5,879,068)

(1,550,874)

Class

R6

............................................................

(237,165)

(296,846)

Advisor

Class

........................................................

(4,377,827)

8,318,607

Total

capital

share

transactions

............................................

(48,198,189)

122,967,492

Net

increase

(decrease)

in

net

assets

...................................

(362,965,451)

147,826,382

Net

assets:

Beginning

of

year

.......................................................

1,520,756,002

1,372,929,620

End

of

year

...........................................................

$1,157,790,551

$1,520,756,002

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

48

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds, three

of

which

are

included

in

this

report

(Funds).

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

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

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Class

C

shares

automatically

convert

to

Class

A

shares

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

sale

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively. 

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

year

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

December

30,

2022.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

49

franklintempleton.com

Annual

Report

c.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2022, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

by

Underlying

Funds

and

ETFs

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

50

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

7,910,216

$104,157,892

10,662,506

$148,875,879

Shares

issued

in

reinvestment

of

distributions

..........

2,479,973

30,540,378

4,491,793

58,119,022

Shares

redeemed

...............................

(17,477,429)

(225,351,420)

(22,309,824)

(306,585,644)

Net

increase

(decrease)

..........................

(7,087,240)

$(90,653,150)

(7,155,525)

$(99,590,743)

Year

ended

December

31,

2021

Shares

sold

a

...................................

14,924,061

$231,532,249

17,078,662

$292,335,001

Shares

issued

in

reinvestment

of

distributions

..........

5,641,836

84,506,851

12,695,548

206,253,870

Shares

redeemed

...............................

(10,986,767)

(169,975,036)

(15,509,066)

(263,969,105)

Net

increase

(decrease)

..........................

9,579,130

$146,064,064

14,265,144

$234,619,766

Class

C

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

898,458

$11,629,680

1,498,953

$20,181,807

Shares

issued

in

reinvestment

of

distributions

..........

255,929

3,064,586

434,361

5,397,337

Shares

redeemed

a

..............................

(4,125,906)

(52,403,517)

(4,734,054)

(63,141,953)

Net

increase

(decrease)

..........................

(2,971,519)

$(37,709,251)

(2,800,740)

$(37,562,809)

Year

ended

December

31,

2021

Shares

sold

...................................

2,430,528

$36,552,182

2,654,138

$43,455,760

Shares

issued

in

reinvestment

of

distributions

..........

792,779

11,589,606

1,551,141

24,279,944

Shares

redeemed

a

..............................

(7,301,383)

(111,236,867)

(9,408,070)

(155,824,967)

Net

increase

(decrease)

..........................

(4,078,076)

$(63,095,079)

(5,202,791)

$(88,089,263)

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,465,369

$19,794,235

536,756

$7,455,847

Shares

issued

in

reinvestment

of

distributions

..........

128,907

1,579,898

165,320

2,132,506

Shares

redeemed

...............................

(1,626,058)

(21,592,223)

(976,726)

(13,489,271)

Net

increase

(decrease)

..........................

(31,782)

$(218,090)

(274,650)

$(3,900,918)

Year

ended

December

31,

2021

Shares

sold

...................................

381,609

$5,848,627

466,541

$7,885,871

Shares

issued

in

reinvestment

of

distributions

..........

296,128

4,419,140

494,163

8,008,064

Shares

redeemed

...............................

(1,374,701)

(21,303,290)

(909,188)

(15,394,365)

Net

increase

(decrease)

..........................

(696,964)

$(11,035,523)

51,516

$499,570

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

51

franklintempleton.com

Annual

Report

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

26,230

$346,902

47,746

$664,252

Shares

issued

in

reinvestment

of

distributions

..........

7,694

94,744

21,105

273,579

Shares

redeemed

...............................

(38,478)

(500,199)

(51,082)

(696,858)

Net

increase

(decrease)

..........................

(4,554)

$(58,553)

17,769

$240,973

Year

ended

December

31,

2021

Shares

sold

...................................

31,789

$488,983

57,590

$985,504

Shares

issued

in

reinvestment

of

distributions

..........

15,757

235,873

52,769

857,248

Shares

redeemed

...............................

(25,796)

(399,807)

(77,237)

(1,305,168)

Net

increase

(decrease)

..........................

21,750

$325,049

33,122

$537,584

Advisor

Class

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

868,164

$11,375,506

1,049,264

$14,705,181

Shares

issued

in

reinvestment

of

distributions

..........

99,291

1,225,306

180,660

2,345,137

Shares

redeemed

...............................

(2,144,368)

(27,783,201)

(2,364,283)

(32,123,015)

Net

increase

(decrease)

..........................

(1,176,913)

$(15,182,389)

(1,134,359)

$(15,072,697)

Year

ended

December

31,

2021

Shares

sold

...................................

1,061,339

$16,381,493

1,330,334

$22,629,505

Shares

issued

in

reinvestment

of

distributions

..........

240,672

3,607,232

515,427

8,385,092

Shares

redeemed

...............................

(854,332)

(13,224,012)

(1,082,185)

(18,371,904)

Net

increase

(decrease)

..........................

447,679

$6,764,713

763,576

$12,642,693

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

December

31,

2022

Shares

sold

a

...................................

6,242,529

$106,513,403

Shares

issued

in

reinvestment

of

distributions

..........

3,003,201

47,091,130

Shares

redeemed

...............................

(10,229,231)

(173,687,373)

Net

increase

(decrease)

..........................

(983,501)

$(20,082,840)

Year

ended

December

31,

2021

Shares

sold

a

...................................

8,658,427

$183,957,942

Shares

issued

in

reinvestment

of

distributions

..........

7,832,959

158,202,987

Shares

redeemed

...............................

(8,260,018)

(174,061,543)

Net

increase

(decrease)

..........................

8,231,368

$168,099,386

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

52

franklintempleton.com

Annual

Report

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

C

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

1,043,908

$17,169,928

Shares

issued

in

reinvestment

of

distributions

..........

301,764

4,542,612

Shares

redeemed

a

..............................

(2,409,585)

(39,333,829)

Net

increase

(decrease)

..........................

(1,063,913)

$(17,621,289)

Year

ended

December

31,

2021

Shares

sold

...................................

1,271,518

$25,846,031

Shares

issued

in

reinvestment

of

distributions

..........

964,036

18,775,043

Shares

redeemed

a

..............................

(4,674,532)

(96,223,855)

Net

increase

(decrease)

..........................

(2,438,978)

$(51,602,781)

Class

R

Class

R

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

257,803

$4,277,975

Shares

issued

in

reinvestment

of

distributions

..........

119,491

1,843,215

Shares

redeemed

...............................

(717,374)

(12,000,258)

Net

increase

(decrease)

..........................

(340,080)

$(5,879,068)

Year

ended

December

31,

2021

Shares

sold

...................................

235,209

$4,899,326

Shares

issued

in

reinvestment

of

distributions

..........

349,129

6,942,891

Shares

redeemed

...............................

(638,662)

(13,393,091)

Net

increase

(decrease)

..........................

(54,324)

$(1,550,874)

Class

R6

Class

R6

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

20,382

$347,602

Shares

issued

in

reinvestment

of

distributions

..........

13,634

215,043

Shares

redeemed

...............................

(47,819)

(799,810)

Net

increase

(decrease)

..........................

(13,803)

$(237,165)

Year

ended

December

31,

2021

Shares

sold

...................................

50,946

$1,076,066

Shares

issued

in

reinvestment

of

distributions

..........

35,286

717,514

Shares

redeemed

...............................

(99,315)

(2,090,426)

Net

increase

(decrease)

..........................

(13,083)

$(296,846)

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

53

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Asset

Allocation

Fees

The

Funds

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class C

and

R

compensation

distribution

plans,

Franklin

Growth

Allocation

Fund

Shares

Amount

Advisor

Class

Shares:

Year

ended

December

31,

2022

Shares

sold

...................................

526,427

$9,021,799

Shares

issued

in

reinvestment

of

distributions

..........

133,174

2,102,385

Shares

redeemed

...............................

(916,123)

(15,502,011)

Net

increase

(decrease)

..........................

(256,522)

$(4,377,827)

Year

ended

December

31,

2021

Shares

sold

...................................

622,446

$13,154,153

Shares

issued

in

reinvestment

of

distributions

..........

343,722

6,988,125

Shares

redeemed

...............................

(559,446)

(11,823,671)

Net

increase

(decrease)

..........................

406,722

$8,318,607

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(

Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

54

franklintempleton.com

Annual

Report

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

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

December

31,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

f.

Investments

in

FT

Underlying

Funds

The Funds

invest in FT

Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$89,684

$184,197

$191,857

CDSC

retained

...........................

$23,660

$40,759

$11,635

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Transfer

agent

fees

........................

$563,983

$1,045,677

$968,470

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

55

franklintempleton.com

Annual

Report

management

or

policies.

Asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

asset

allocation

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

year

ended

December

31,

2022,

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

33,637,163

$

12,436,797

$

(7,511,169)

$

(1,515,673)

$

(6,345,874)

$

30,701,244

3,512,728

$

1,987,783

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

61,114,060

3,212,823

(33,465,114)

207,054

(4,809,326)

26,259,497

720,030

540,234

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

12,651,929

4,566,908

(2,017,704)

(269,766)

(2,710,405)

12,220,962

1,377,786

499,151

Franklin

FTSE

Europe

ETF

....

5,320,689

189,357

(4,738,896)

646,220

(1,417,370)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

125,309,415

19,137,242

(47,305,107)

14,760,302

(49,653,505)

62,248,347

604,999

6,095,896

a

Franklin

High

Yield

Corporate

ETF

58,685,736

4,691,264

(36,031,890)

(4,941,067)

(2,916,628)

19,487,415

883,783

2,072,618

a

Franklin

International

Aggregate

Bond

ETF

................

33,062,382

3,991,712

(13,682,860)

(1,002,973)

(3,911,469)

18,456,792

961,041

3,009,080

Franklin

International

Core

Equity

(IU)

Fund

................

57,733,541

8,657,288

(17,394,916)

(3,872,932)

(8,082,212)

37,040,769

3,685,649

1,196,445

Franklin

International

Growth

Fund,

Class

R6

................

10,394,454

2,254,876

(3,732,713)

(118,879)

(3,306,469)

5,491,269

381,073

94,821

a

Franklin

Investment

Grade

Corporate

ETF

............

25,959,352

22,310,586

(16,637,265)

(2,799,264)

(3,269,975)

25,563,434

1,224,889

1,013,495

Franklin

Senior

Loan

ETF

.....

32,653,456

620,177

(32,533,572)

(808,194)

68,133

—

—

287,088

Franklin

Systematic

Style

Premia

ETF

....................

7,045,368

6,197,008

(3,857,192)

(722,624)

520,575

9,183,135

432,351

203,520

Franklin

U.S.

Core

Bond

ETF

...

292,437,229

44,158,302

(99,314,841)

(8,386,188)

(31,698,259)

197,196,243

9,314,891

5,640,493

Franklin

U.S.

Core

Equity

(IU)

Fund

247,730,250

27,490,030

(84,460,759)

(6,243,570)

(38,793,777)

145,722,174

12,245,561

6,806,626

a

Franklin

U.S.

Equity

Index

ETF

.

—

14,335,754

(3,156,621)

180,079

545,686

11,904,898

358,250

65,716

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

24,230,091

37,113,725

(23,424,043)

116,959

(4,469,390)

33,567,342

855,378

681,069

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

5,181,302

(272,222)

(5,104)

114,451

5,018,427

131,925

76,579

Franklin

U.S.

Treasury

Bond

ETF

52,179,875

24,032,954

(14,130,608)

(2,168,454)

(5,107,164)

54,806,603

2,647,662

1,096,613

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

85

207,540,650

(186,368,935)

—

—

21,171,800

21,171,800

355,595

Templeton

Developing

Markets

Trust,

Class

R6

............

13,335,719

6,080,397

(7,683,021)

(1,147,004)

(2,168,942)

8,417,149

514,181

455,029

a

Templeton

Foreign

Fund,

Class

R6

20,687,681

797,585

(11,919,764)

1,741,531

(2,294,541)

9,012,492

1,341,145

141,420

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

98,441,245

68,942,010

(23,609,532)

(5,556,436)

(24,716,836)

113,500,451

12,126,117

3,953,836

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

56

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

39,225,398

$

18,161,307

$

(14,402,370)

$

(1,015,111)

$

(2,212,497)

$

39,756,727

11,012,944

$

1,013,388

Total

Non-Controlled

Affiliates

$1,251,835,118

$542,100,054

$(687,651,114)

$(22,921,094)

$(196,635,794)

$886,727,170

$37,286,495

Total

Affiliated

Securities

....

$1,251,835,118

$542,100,054

$(687,651,114)

$(22,921,094)

$(196,635,794)

$886,727,170

$37,286,495

Franklin

Moderate

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

36,190,583

5,565,063

(3,646,231)

(458,415)

(7,166,388)

30,484,612

3,436,822

1,217,391

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

32,172,162

12,241,059

(6,611,269)

(1,400,618)

(6,158,795)

30,242,539

3,460,245

1,947,533

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

137,778,328

3,358,716

(64,609,311)

189,801

(10,689,175)

66,028,359

1,810,484

1,312,789

a

Franklin

FTSE

Europe

ETF

....

12,721,804

235,930

(11,118,209)

1,318,510

(3,158,035)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

281,119,140

37,124,360

(79,811,929)

20,695,349

(102,649,329)

156,477,591

1,520,824

15,358,998

a

Franklin

High

Yield

Corporate

ETF

58,827,480

6,530,125

(36,317,090)

(4,872,218)

(3,144,835)

21,023,462

953,445

2,141,849

a

Franklin

International

Aggregate

Bond

ETF

................

31,620,949

4,013,952

(12,638,177)

(912,520)

(3,883,376)

18,200,828

947,713

2,961,984

Franklin

International

Core

Equity

(IU)

Fund

................

139,530,343

18,788,721

(34,723,965)

(7,452,258)

(20,942,866)

95,199,975

9,472,634

2,909,955

Franklin

International

Growth

Fund,

Class

R6

................

24,856,235

5,145,479

(7,817,922)

(431,656)

(7,819,312)

13,932,824

966,886

241,136

a

Franklin

Investment

Grade

Corporate

ETF

............

26,022,034

24,489,685

(16,722,269)

(3,609,273)

(2,602,601)

27,577,576

1,321,398

1,055,763

Franklin

Senior

Loan

ETF

.....

32,732,318

756,533

(32,745,541)

(813,823)

70,513

—

—

286,557

Franklin

Systematic

Style

Premia

ETF

....................

11,230,370

9,950,473

(5,778,968)

(1,086,148)

762,507

15,078,234

709,898

334,567

Franklin

U.S.

Core

Bond

ETF

...

292,865,850

59,524,323

(98,686,010)

(8,413,784)

(32,553,239)

212,737,140

10,048,991

5,853,406

Franklin

U.S.

Core

Equity

(IU)

Fund

556,798,655

41,093,750

(125,544,204)

(10,561,894)

(94,854,718)

366,931,589

30,834,587

16,865,982

a

Franklin

U.S.

Equity

Index

ETF

.

—

35,548,071

(6,349,556)

364,765

1,420,194

30,983,474

932,375

171,199

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

54,848,126

79,930,371

(40,146,437)

9,488

(11,012,725)

83,628,823

2,131,067

1,732,574

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

13,001,509

(650,675)

(9,539)

287,985

12,629,280

332,000

193,045

Franklin

U.S.

Treasury

Bond

ETF

52,305,894

29,036,294

(14,731,735)

(2,198,160)

(5,286,428)

59,125,865

2,856,322

1,157,381

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

132

284,622,615

(249,806,496)

—

—

34,816,251

34,816,251

589,314

Templeton

Developing

Markets

Trust,

Class

R6

............

36,166,834

8,941,432

(15,044,943)

(3,156,480)

(5,605,656)

21,301,187

1,301,233

1,143,992

a

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

57

franklintempleton.com

Annual

Report

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Moderate

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Templeton

Foreign

Fund,

Class

R6

$

50,283,951

$

1,680,640

$

(27,907,466)

$

3,458,536

$

(4,651,035)

$

22,864,626

3,402,474

$

359,164

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

98,686,924

77,382,852

(22,713,260)

(5,541,804)

(25,368,743)

122,445,969

13,081,834

4,121,433

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

39,319,448

28,058,118

(15,455,709)

(1,062,068)

(2,577,946)

48,281,843

13,374,472

1,187,338

Total

Non-Controlled

Affiliates

$1,969,886,977

$781,455,008

$(925,931,141)

$(25,485,794)

$(340,417,615)

$1,459,507,435

$61,925,959

Total

Affiliated

Securities

....

$2,006,077,560

$787,020,071

$(929,577,372)

$(25,944,209)

$(347,584,003)

$1,489,992,047

$63,143,350

Franklin

Growth

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

36,381,032

5,979,750

(5,747,471)

(616,481)

(6,748,061)

29,248,769

3,297,494

1,152,454

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

15,093,015

6,285,072

(3,001,784)

(431,457)

(3,125,563)

14,819,283

1,695,570

938,946

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

131,860,456

1,766,634

(58,733,883)

527,092

(9,974,392)

65,445,907

1,794,513

1,250,242

a

Franklin

FTSE

Europe

ETF

....

12,275,904

42,824

(10,547,785)

1,049,970

(2,820,913)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

280,777,716

22,358,531

(68,714,575)

19,071,005

(98,284,510)

155,208,167

1,508,486

15,123,817

a

Franklin

High

Yield

Corporate

ETF

15,565,438

5,261,130

(11,614,284)

(1,453,703)

(817,660)

6,940,921

314,781

629,628

a

Franklin

International

Aggregate

Bond

ETF

................

14,792,817

2,236,943

(5,836,740)

(393,715)

(1,904,048)

8,895,257

463,174

1,432,288

Franklin

International

Core

Equity

(IU)

Fund

................

136,932,223

15,125,596

(31,360,067)

(6,159,645)

(20,601,449)

93,936,658

9,346,931

2,761,055

Franklin

International

Growth

Fund,

Class

R6

................

23,985,853

5,889,042

(8,054,427)

(600,093)

(7,483,197)

13,737,178

953,309

236,004

a

Franklin

Investment

Grade

Corporate

ETF

............

6,884,794

8,745,820

(4,745,333)

(995,632)

(783,609)

9,106,040

436,322

316,132

Franklin

Senior

Loan

ETF

.....

8,660,766

704,767

(9,167,448)

(218,010)

19,925

—

—

75,909

Franklin

Systematic

Style

Premia

ETF

....................

7,880,850

7,137,240

(3,709,672)

(691,288)

465,520

11,082,650

521,782

243,591

Franklin

U.S.

Core

Bond

ETF

...

77,699,812

33,583,327

(29,317,381)

(2,540,095)

(9,178,035)

70,247,628

3,318,263

1,735,590

Franklin

U.S.

Core

Equity

(IU)

Fund

413,400,541

15,167,735

(3,582,287)

(712,333)

(86,655,818)

337,617,838

28,371,247

15,167,735

a

Franklin

U.S.

Equity

Index

ETF

.

—

34,159,882

(1,147,506)

56,169

1,588,583

34,657,128

1,042,925

190,581

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

50,391,751

87,708,615

(26,297,066)

(808,982)

(12,221,384)

98,772,934

2,516,976

2,026,316

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

—

12,573,663

(366,658)

(7,604)

282,474

12,481,875

328,125

188,802

Franklin

U.S.

Treasury

Bond

ETF

13,839,484

12,849,132

(4,983,196)

(493,957)

(1,688,920)

19,522,543

943,118

358,886

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

58

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Funds

so

that

the

operating expenses

(excluding

interest

expense, distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

do

not

exceed

0.45%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds'

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

year

ended

December

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Growth

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

$

93

$

194,603,711

$

(170,662,159)

$

—

$

—

$

23,941,645

23,941,645

$

435,488

Templeton

Developing

Markets

Trust,

Class

R6

............

36,284,239

8,788,060

(15,252,068)

(2,768,705)

(5,625,312)

21,426,214

1,308,871

1,125,225

a

Templeton

Foreign

Fund,

Class

R6

49,038,723

4,025,929

(29,351,190)

2,761,527

(3,934,714)

22,540,275

3,354,208

352,349

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

26,186,655

30,732,805

(7,712,311)

(1,610,986)

(7,164,318)

40,431,845

4,319,642

1,236,117

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

10,432,054

19,671,295

(6,360,653)

(403,232)

(1,030,651)

22,308,813

6,179,727

507,417

Total

Non-Controlled

Affiliates

$1,331,983,184

$529,417,753

$(510,518,473)

$3,176,326

$(270,937,991)

$1,083,120,799

$46,332,118

Total

Affiliated

Securities

....

$1,368,364,216

$535,397,503

$(516,265,944)

$2,559,845

$(277,686,052)

$1,112,369,568

$47,484,572

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statements

of

Operations.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

59

franklintempleton.com

Annual

Report

5.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

The

Funds

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

realized

capital

gains.

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

2022

2021

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$17,050,195

$49,415,482

$20,595,658

$88,335,859

Long

term

capital

gain

....................

20,299,384

57,859,913

48,734,121

163,506,292

$37,349,579

$107,275,395

$69,329,779

$251,842,151

Franklin

Growth

Allocation

Fund

2022

2021

Distributions

paid

from:

Ordinary

income

........................

$12,925,177

$67,487,162

Long

term

capital

gain

....................

43,653,004

126,983,118

$56,578,181

$194,470,280

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

a

a

a

a

Cost

of

investments

.......................

$1,020,444,625

$1,579,730,391

$1,092,410,084

Unrealized

appreciation

.....................

$58,582,099

$133,021,625

$117,996,101

Unrealized

depreciation

.....................

(117,080,227)

(132,299,607)

(51,772,617)

Net

unrealized

appreciation

(depreciation)

.......

$(58,498,128)

$722,018

$66,223,484

Distributable

earnings:

Undistributed

ordinary

income

................

$5,528,375

$7,086,801

$826,043

Undistributed

long

term

capital

gains

...........

—

10,886,515

26,017,601

Total

distributable

earnings

..................

$5,528,375

$17,973,316

$26,843,644

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

60

franklintempleton.com

Annual

Report

6.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

year

ended

December

31

,

2022,

were

as

follows:

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Funds

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

December

31,

2022,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Purchases

..............................

$406,848,208

$586,559,734

$369,191,014

Sales

..................................

$569,645,492

$783,392,886

$451,969,135

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

61

franklintempleton.com

Annual

Report

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2022,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

11.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Conservative

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

936,501,821

$

—

$

—

$

936,501,821

Short

Term

Investments

...................

21,171,800

4,272,876

—

25,444,676

Total

Investments

in

Securities

...........

$957,673,621

$4,272,876

$—

$961,946,497

Franklin

Moderate

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,541,063,451

—

—

1,541,063,451

Short

Term

Investments

...................

34,816,251

4,572,707

—

39,388,958

Total

Investments

in

Securities

...........

$1,575,879,702

$4,572,707

$—

$1,580,452,409

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,126,219,396

—

—

1,126,219,396

Short

Term

Investments

...................

23,941,645

8,472,527

—

32,414,172

Total

Investments

in

Securities

...........

$1,150,161,041

$8,472,527

$—

$1,158,633,568

a

For

detailed

categories,

see

the

accompanying

schedule

of

investments.

Selected

Portfolio

ETF

Exchange-Traded

Fund

10.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

62

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Conservative

Allocation

Fund,

Franklin

Moderate

Allocation

Fund

and

Franklin

Growth

Allocation

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

Conservative

Allocation

Fund,

Franklin

Moderate

Allocation

Fund

and

Franklin

Growth

Allocation

Fund

(three

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2022,

the

related

statements

of

operations

for

the

year

ended

December

31,

2022,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2022,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

63

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amount

s

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Under

Section

853

of

the

Internal

Revenue

Code,

the

Funds

below

intend

to

elect

to

pass

through

to

their

shareholders

the

following

amounts,

or

amounts

as

finally

determined,

of

foreign

taxes

paid

and

foreign

source

income

earned

by

the

Funds

during

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$20,464,454

$49,052,979

$44,420,176

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$3,287,354

$7,954,978

$7,482,337

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$5,435,232

$13,181,332

$12,659,766

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Foreign

Taxes

Paid

$208,089

$521,189

$501,238

Foreign

Source

Income

Earned

$774,842

$1,912,958

$1,839,790

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

64

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

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

120

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

65

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

120

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

120

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

120

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

66

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

111

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),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

Since

January

2023

and

Trustee

since

2007

131

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

2013

120

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

67

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Distributors,

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

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

-

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

68

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

69

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

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.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FAS

A

02/23

©

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

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Corefolio

Allocation

Fund

A

Series

of

Franklin

Fund

Allocator

Series

December

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

first

two

quarters

given

high

trade

deficits

and

declines

in

inventory

and

business

investment,

but

GDP

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

2022’s

first

half

to

the

highest

level

in

decades,

influenced

by

pandemic-

related

supply-chain

disruptions,

strong

consumer

demand,

volatile

energy

and

commodity

prices

worsened

by

Russia’s

invasion

of

Ukraine,

and

broader

price

pressures.

Inflation

remained

high

but

eased

during

the

remainder

of

the

year.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

continued

the

reversal

of

its

quantitative

easing

measures,

increased

its

asset

purchase

tapering

and

ended

purchases

by

March

2022.

The

Federal

Reserve

raised

the

federal

funds

target

rate

by

0.25%

in

March,

0.50%

in

May,

0.75%

in

each

of

June,

July,

September

and

November,

and

0.50%

in

December

2022,

totaling

4.25%,

increasing

the

rate

from

0.25%

to

4.50%

during

the

period.

The

Federal

Reserve

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

rate

increases

to

counter

inflation.

Resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

numerous

countries

and

tighter

monetary

policies

by

many

central

banks,

which

hindered

the

global

economy

and

equities.

Russia’s

invasion

of

Ukraine

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

economic

activity

and

commodity

markets.

New

COVID

lockdowns

imposed

by

China

early

in

the

period

slowed

economic

activity,

and

protests

late

in

the

period

led

China

to

relax

its

“zero-COVID”

policy.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-19.44%

(the

index

decreasing

from

4,766.18

to

3,839.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-19.46%

(the

index

decreasing

from

3,231.727

to

2,602.685).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-13.01%

total

return

(an

index

decrease

from

2,355.14

to

2,048.73),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

As

you

know,

as

rates

rise,

principal

declines.

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Corefolio

Allocation

Fund’s

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Corefolio

Allocation

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2023,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-18.11%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

8,178.02)

and

MSCI

World

Index

-17.73%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,700.992).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Franklin

Corefolio

Allocation

Fund

3

Performance

Summary

5

Your

Fund’s

Expenses

8

Financial

Highlights

and

Schedule

of

Investments

9

Financial

Statements

15

Notes

to

Financial

Statements

19

Report

of

Independent

Registered

Public

Accounting

Firm

26

Tax

Information

27

Board

Members

and

Officers

28

Shareholder

Information

33

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

Corefolio

Allocation

Fund

This

annual

report

for

Franklin

Corefolio

Allocation

Fund

covers

the

fiscal

year

ended

Dec

ember

3

1

,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

through

investments

in

a

combination

of

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

**Rounds

to

less

than

0.1%

of

net

assets.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-20.84%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

benchmarks,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

-18.11%

cumulative

total

return,

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

-17.73%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

Portfolio

Composition*

12/31/22

%

of

Total

Net

Assets

Domestic

Equity

74.8%

Foreign

Equity

25.2%

Short-Term

Investments

&

Other

Net

Assets

0.0%**

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

14

.

Franklin

Corefolio

Allocation

Fund

4

franklintempleton.com

Annual

Report

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

rising

commodity

prices.

Investment

Strategy

The

Fund

invests

its

assets

allocated

approximately

25%

each

in

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

These

underlying

funds,

in

turn,

invest

primarily

in

U.S.

and

foreign

equity

securities

and,

to

a

lesser

extent,

fixed

income

and

money

market

securities.

As

market

conditions

affect

the

underlying

funds,

we

rebalance

the

Fund’s

allocations

to

maintain

the

predetermined

weightings

in

each

underlying

fund

whenever

the

actual

allocations

exceed

plus

or

minus

3%

of

the

fixed

allocation

percentages.

Portfolio

Review

The

Fund’s

performance

can

be

attributed,

in

part,

to

the

weaker

performance

of

growth

stocks

relative

to

value

stocks

during

2022.

Value-style

equities

outperformed

growth-style

equities

for

the

first

time

in

more

than

a

decade.

As

a

result,

stock

funds

with

growth

exposure

underperformed

their

broader

benchmark

indices.

During

the

12

months

under

review,

Franklin

Mutual

Shares

Fund,

which

has

a

deep

bent

toward

value-style

equities,

performed

better

than

the

Fund’s

domestic

equity

benchmark,

the

S&P

500

Index.

On

the

non-U.S.

equity

side,

the

value

orientation

of

Templeton

Growth

Fund

provided

a

tailwind

as

the

portfolio

performed

better

than

the

Fund’s

foreign

equity

benchmark,

the

MSCI

World

Index.

In

contrast,

the

strong

growth

orientation

of

Franklin

Growth

Opportunities

Fund

and

Franklin

Growth

Fund,

in

tandem

with

the

weak

performance

of

the

information

technology

and

health

care

sectors,

drove

underperformance

relative

to

the

domestic

equity

benchmark.

The Fund follows

a

passive,

equally

weighted strategy,

allocating

assets

across

four

underlying

funds.

No

positions

were

added

or

removed

during

the

period.

Thank

you

for

your

continued

participation

in

Franklin

Corefolio

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2022

Franklin

Corefolio

Allocation

Fund

5

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-20.84%

-25.19%

5-Year

+26.65%

+3.66%

10-Year

+125.61%

+7.86%

Advisor

1-Year

-20.63%

-20.63%

5-Year

+28.31%

+5.11%

10-Year

+131.63%

+8.76%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Corefolio

Allocation

Fund

Performance

Summary

6

franklintempleton.com

Annual

Report

See

page

7

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

Corefolio

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

the

Fund

invests

in

underlying

funds

that

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

this

fund

of

funds

may

be

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility,

and

political

or

social

instability;

risks

which

are

height-

ened

in

developing

countries.

The

Fund

includes

investments

in

specialized

industry

sectors

such

as

the

technology

sector,

which

has

been

among

the

most

volatile

in

the

market.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

The

MSCI

World

Index

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

markets.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0099

$0.0095

$1.4365

$1.4559

C

$0.0026

$0.0095

$1.4365

$1.4486

R

$0.0026

$0.0095

$1.4365

$1.4486

R6

$0.0758

$0.0095

$1.4365

$1.5218

Advisor

$0.0582

$0.0095

$1.4365

$1.5042

Total

Annual

Operating

Expenses

6

Share

Class

A

0.98%

Advisor

0.73%

Your

Fund’s

Expenses

Franklin

Corefolio

Allocation

Fund

8

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,023.30

$2.15

$1,023.09

$2.15

0.42%

C

$1,000

$1,019.40

$5.96

$1,019.30

$5.96

1.17%

R

$1,000

$1,021.80

$3.42

$1,021.82

$3.42

0.67%

R6

$1,000

$1,025.20

$0.37

$1,024.84

$0.37

0.07%

Advisor

$1,000

$1,024.80

$0.87

$1,024.35

$0.87

0.17%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

9

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.42

$21.92

$20.04

$17.32

$19.68

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.05

0.22

0.12

0.20

0.17

Net

realized

and

unrealized

gains

(losses)

...........

(5.16)

3.21

3.32

4.17

(1.51)

Total

from

investment

operations

....................

(5.11)

3.43

3.44

4.37

(1.34)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.01)

(0.22)

(0.18)

(0.20)

(0.15)

Net

realized

gains

.............................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...............................

(1.46)

(0.93)

(1.56)

(1.65)

(1.02)

Net

asset

value,

end

of

year

.......................

$17.85

$24.42

$21.92

$20.04

$17.32

Total

return

d

...................................

(20.84)%

15.76%

18.28%

25.79%

(7.10)%

Ratios

to

average

net

assets

Expenses

e

,f

....................................

0.41%

0.42%

0.43%

0.44%

0.41%

Net

investment

income

c

...........................

0.26%

0.91%

0.64%

1.02%

0.76%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$690,297

$931,489

$812,250

$717,806

$593,983

Portfolio

turnover

rate

............................

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

year

ended

December

31,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$23.94

$21.57

$19.76

$17.10

$19.43

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

,c

....................

(0.10)

(0.01)

(0.03)

0.04

(0.10)

Net

realized

and

unrealized

gains

(losses)

...........

(5.05)

3.20

3.25

4.12

(1.35)

Total

from

investment

operations

....................

(5.15)

3.19

3.22

4.16

(1.45)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(—)

d

(0.11)

(0.03)

(0.05)

(0.01)

Net

realized

gains

.............................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...............................

(1.45)

(0.82)

(1.41)

(1.50)

(0.88)

Net

asset

value,

end

of

year

.......................

$17.34

$23.94

$21.57

$19.76

$17.10

Total

return

e

...................................

(21.44)%

14.88%

17.41%

24.83%

(7.76)%

Ratios

to

average

net

assets

Expenses

f

,g

....................................

1.16%

1.17%

1.18%

1.19%

1.16%

Net

investment

income

(loss)

c

......................

(0.53)%

(0.05)%

(0.18)%

0.27%

0.01%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$39,781

$61,517

$73,513

$75,745

$72,124

Portfolio

turnover

rate

............................

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

year

ended

December

31,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.42

$21.95

$20.07

$17.34

$19.68

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.01

0.16

0.07

0.14

0.10

Net

realized

and

unrealized

gains

(losses)

...........

(5.17)

3.21

3.32

4.19

(1.48)

Total

from

investment

operations

....................

(5.16)

3.37

3.39

4.33

(1.38)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(—)

d

(0.19)

(0.13)

(0.15)

(0.09)

Net

realized

gains

.............................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...............................

(1.45)

(0.90)

(1.51)

(1.60)

(0.96)

Net

asset

value,

end

of

year

.......................

$17.81

$24.42

$21.95

$20.07

$17.34

Total

return

....................................

(21.04)%

15.46%

18.00%

25.51%

(7.30)%

Ratios

to

average

net

assets

Expenses

e

,f

....................................

0.66%

0.66%

0.67%

0.67%

0.65%

Net

investment

income

c

...........................

0.04%

0.68%

0.38%

0.79%

0.52%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,488

$1,764

$1,498

$1,387

$1,412

Portfolio

turnover

rate

............................

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

year

ended

December

31,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.52

$21.97

$20.07

$17.34

$19.67

Income

from

investment

operations

a

:

Net

investment

income

b,c

........................

0.12

0.30

0.21

0.70

0.27

Net

realized

and

unrealized

gains

(losses)

...........

(5.19)

3.23

3.31

3.75

(1.52)

Total

from

investment

operations

....................

(5.07)

3.53

3.52

4.45

(1.25)

Less

distributions

from:

Net

investment

income

..........................

(0.08)

(0.27)

(0.24)

(0.27)

(0.21)

Net

realized

gains

.............................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...............................

(1.53)

(0.98)

(1.62)

(1.72)

(1.08)

Net

asset

value,

end

of

year

.......................

$17.92

$24.52

$21.97

$20.07

$17.34

Total

return

....................................

(20.60)%

16.16%

18.69%

26.24%

(6.78)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

d

.....

0.13%

0.13%

0.13%

0.12%

0.23%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.08%

0.09%

0.09%

0.09%

0.09%

Net

investment

income

c

...........................

0.62%

1.26%

1.05%

1.37%

1.08%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$4,379

$5,349

$4,393

$3,385

$75

Portfolio

turnover

rate

............................

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

year

ended

December

31,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$24.52

$21.98

$20.08

$17.35

$19.71

Income

from

investment

operations

a

:

Net

investment

income

b

,c

........................

0.09

0.28

0.17

0.27

0.24

Net

realized

and

unrealized

gains

(losses)

...........

(5.17)

3.22

3.34

4.16

(1.53)

Total

from

investment

operations

....................

(5.08)

3.50

3.51

4.43

(1.29)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

..............................

(0.06)

(0.25)

(0.23)

(0.25)

(0.20)

Net

realized

gains

.............................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...............................

(1.51)

(0.96)

(1.61)

(1.70)

(1.07)

Net

asset

value,

end

of

year

.......................

$17.93

$24.52

$21.98

$20.08

$17.35

Total

return

....................................

(20.63)%

16.05%

18.59%

26.10%

(6.85)%

Ratios

to

average

net

assets

Expenses

d

,e

....................................

0.16%

0.17%

0.18%

0.19%

0.16%

Net

investment

income

c

...........................

0.48%

1.16%

0.90%

1.27%

1.01%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$48,963

$69,322

$61,166

$52,512

$40,399

Portfolio

turnover

rate

............................

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.

63%

for

the

year

ended

December

31,

2022.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Shares

a

Value

A

Investments

In

Underlying

Funds

100.0%

Domestic

Equity

74.8%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,893,127

$

194,783,881

a,b

Franklin

Growth

Opportunities

Fund,

Class

R6

.............................

4,859,610

193,509,671

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

8,694,244

198,576,524

586,870,076

Foreign

Equity

25.2%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

9,245,573

197,855,255

Total

Investments

In

Underlying

Funds

(Cost

$623,714,518)

......................

784,725,331

a

A

a

a

Short

Term

Investments

0.0%

†

A

A

Money

Market

Funds

0.0%

†

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

..................

2,229

2,229

Total

Money

Market

Funds

(Cost

$2,229)

.......................................

2,229

Total

Short

Term

Investments

(Cost

$2,229

)

....................................

2,229

a

Total

Investments

(Cost

$623,716,747)

100.0%

..................................

$784,727,560

Other

Assets,

less

Liabilities

0.0%

†

............................................

180,811

Net

Assets

100.0%

...........................................................

$784,908,371

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(e)

regarding

investments

in

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

Franklin

Corefolio

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Non-controlled

affiliates

(Note

3

e

)

........................................................

$623,716,747

Value

-

Non-controlled

affiliates

(Note

3

e

)

.......................................................

784,727,560

Cash

....................................................................................

559,815

Receivables:

Investment

securities

sold

...................................................................

591,870

Capital

shares

sold

........................................................................

340,337

Interest

.................................................................................

2,230

Affiliates

................................................................................

431

Total

assets

..........................................................................

786,222,243

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

903,987

Administrative

fees

........................................................................

20,418

Distribution

fees

..........................................................................

185,207

Transfer

agent

fees

........................................................................

171,502

Trustees'

fees

and

expenses

.................................................................

1,008

Accrued

expenses

and

other

liabilities

...........................................................

31,750

Total

liabilities

.........................................................................

1,313,872

Net

assets,

at

value

.................................................................

$784,908,371

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$599,802,128

Total

distributable

earnings

(losses)

.............................................................

185,106,243

Net

assets,

at

value

.................................................................

$784,908,371

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

Franklin

Corefolio

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$690,297,303

Shares

outstanding

........................................................................

38,670,588

Net

asset

value

per

share

a

..................................................................

$17.85

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$18.89

Class

C:

Net

assets,

at

value

.......................................................................

$39,780,902

Shares

outstanding

........................................................................

2,294,108

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$17.34

Class

R:

Net

assets,

at

value

.......................................................................

$1,487,683

Shares

outstanding

........................................................................

83,519

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.81

Class

R6:

Net

assets,

at

value

.......................................................................

$4,379,033

Shares

outstanding

........................................................................

244,340

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.92

Advisor

Class:

Net

assets,

at

value

.......................................................................

$48,963,450

Shares

outstanding

........................................................................

2,731,493

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.93

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

Franklin

Corefolio

Allocation

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

e

)

.............................................................

$5,788,764

Expenses:

Administrative

fees

(Note

3

a

)

..................................................................

261,186

Distribution

fees:

(Note

3b

)

    Class

A

................................................................................

1,901,870

    Class

C

................................................................................

474,782

    Class

R

................................................................................

7,772

Transfer

agent

fees:

(Note

3d

)

    Class

A

................................................................................

863,697

    Class

C

................................................................................

53,660

    Class

R

................................................................................

1,775

    Class

R6

...............................................................................

3,739

    Advisor

Class

............................................................................

63,683

Registration

and

filing

fees

....................................................................

99,323

Professional

fees

...........................................................................

46,026

Trustees'

fees

and

expenses

..................................................................

10,673

Other

....................................................................................

16,827

Total

expenses

.........................................................................

3,805,013

Expenses

waived/paid

by

affiliates

(Note

3

e

and

3

f

)

..............................................

(3,127)

Net

expenses

.........................................................................

3,801,886

Net

investment

income

................................................................

1,986,878

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

(12,849,347)

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

41,662,217

Net

realized

gain

(loss)

..................................................................

28,812,870

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

(251,528,197)

Net

realized

and

unrealized

gain

(loss)

............................................................

(222,715,327)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(220,728,449)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

Franklin

Corefolio

Allocation

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$1,986,878

$8,873,032

Net

realized

gain

(loss)

.................................................

28,812,870

64,733,784

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(251,528,197)

74,393,496

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(220,728,449)

148,000,312

Distributions

to

shareholders:

Class

A

.............................................................

(54,119,499)

(34,555,673)

Class

C

.............................................................

(3,448,107)

(2,539,442)

Class

R

.............................................................

(110,722)

(60,862)

Class

R6

............................................................

(348,810)

(205,264)

Advisor

Class

........................................................

(4,174,776)

(2,654,270)

Total

distributions

to

shareholders

..........................................

(62,201,914)

(40,015,511)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

5,167,883

26,878,506

Class

C

.............................................................

(5,536,290)

(19,916,298)

Class

R

.............................................................

208,379

104,207

Class

R6

............................................................

464,883

436,233

Advisor

Class

........................................................

(1,907,511)

1,134,411

Total

capital

share

transactions

............................................

(1,602,656)

8,637,059

Net

increase

(decrease)

in

net

assets

...................................

(284,533,019)

116,621,860

Net

assets:

Beginning

of

year

.......................................................

1,069,441,390

952,819,530

End

of

year

...........................................................

$784,908,371

$1,069,441,390

Franklin

Fund

Allocator

Series

19

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

Franklin

Corefolio

Allocation

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

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.

Franklin

Corefolio

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

invests

in

affiliated

mutual

funds

managed

by

Franklin

Templeton

(Underlying

Funds).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

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.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Fund’s

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

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. 

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

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

20

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

gain

distributions

by

Underlying

Funds

are

recorded

on

the

ex-dividend

date.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Fund

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Fund

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

d.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

e.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

2,733,896

$54,219,315

4,582,765

$108,949,626

Shares

issued

in

reinvestment

of

distributions

..........

3,024,029

53,107,120

1,406,638

33,873,395

Shares

redeemed

...............................

(5,228,844)

(102,158,552)

(4,902,459)

(115,944,515)

Net

increase

(decrease)

..........................

529,081

$5,167,883

1,086,944

$26,878,506

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

21

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Administrative

Fees

The

Fund

pays

an

administrative

fee

to

FT

Services

of

0.03%

per

year

of

the

average

daily

net

assets

of

the

Fund

for

administrative

services

including

monitoring

and

rebalancing

the

percentage

of

the

Fund's

investment

in

the

Underlying

Funds.

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

C

Shares:

Shares

sold

...................................

335,519

$6,607,551

524,039

$12,070,571

Shares

issued

in

reinvestment

of

distributions

..........

199,486

3,415,189

107,106

2,519,810

Shares

redeemed

a

..............................

(810,536)

(15,559,030)

(1,469,878)

(34,506,679)

Net

increase

(decrease)

..........................

(275,531)

$(5,536,290)

(838,733)

$(19,916,298)

Class

R

Shares:

Shares

sold

...................................

9,274

$180,323

13,272

$312,763

Shares

issued

in

reinvestment

of

distributions

..........

6,313

110,722

2,528

60,861

Shares

redeemed

...............................

(4,317)

(82,666)

(11,787)

(269,417)

Net

increase

(decrease)

..........................

11,270

$208,379

4,013

$104,207

Class

R6

Shares:

Shares

sold

...................................

43,576

$837,894

18,249

$435,971

Shares

issued

in

reinvestment

of

distributions

..........

18,840

333,021

8,245

199,489

Shares

redeemed

...............................

(36,280)

(706,032)

(8,265)

(199,227)

Net

increase

(decrease)

..........................

26,136

$464,883

18,229

$436,233

Advisor

Class

Shares:

Shares

sold

...................................

388,759

$7,596,976

478,215

$11,337,921

Shares

issued

in

reinvestment

of

distributions

..........

212,472

3,754,731

98,555

2,384,542

Shares

redeemed

...............................

(697,139)

(13,259,218)

(532,535)

(12,588,052)

Net

increase

(decrease)

..........................

(95,908)

$(1,907,511)

44,235

$1,134,411

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

22

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

b.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31. 

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

c.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

d.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

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 reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

year

ended

December

31,

2022,

the

Fund

paid

transfer

agent

fees

of

$986,554,

of

which

$581,020

was

retained

by

Investor

services.

e.

Investments

in

Underlying

Funds

The Fund

invests in Underlying

Funds

which

are

managed

by

Advisers,

an

affiliate

of

FT

Services

or

by

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Fund

does

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$98,553

CDSC

retained

..............................................................................

$4,713

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

23

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

Investments

in

Underlying

Funds

for

the

year

ended

December

31,

2022,

were

as

follows:

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

4.

Income

Taxes

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31

,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Corefolio

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Growth

Fund,

Class

R6

.

$

281,944,606

$

19,788,784

$

(18,700,261)

$

(4,259,106)

$

(83,990,142)

$

194,783,881

1,893,127

$

18,882,295

a

Franklin

Growth

Opportunities

Fund,

Class

R6

............

273,136,240

36,642,417

(7,936,906)

(3,348,043)

(104,984,037)

193,509,671

4,859,610

7,870,134

a

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

266,876,929

19,621,458

(50,469,668)

(3,697,569)

(33,754,626)

198,576,524

8,694,244

18,714,359

a

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

......

1

23,895,435

(23,893,207)

—

—

2,229

2,229

3,749

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

246,916,091

2,892,185

(21,609,000)

(1,544,629)

(28,799,392)

197,855,255

9,245,573

1,980,444

Total

Non-Controlled

Affiliates

$1,068,873,867

$102,840,279

$(122,609,042)

$(12,849,347)

$(251,528,197)

$784,727,560

$47,450,981

Total

Affiliated

Securities

....

$1,068,873,867

$102,840,279

$(122,609,042)

$(12,849,347)

$(251,528,197)

$784,727,560

$47,450,981

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statement

of

Operations.

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$976,293

$11,557,343

Long

term

capital

gain

......................................................

61,225,621

28,458,168

$62,201,914

$40,015,511

Cost

of

investments

..........................................................................

$634,335,238

Unrealized

appreciation

........................................................................

$161,010,813

Unrealized

depreciation

........................................................................

(10,618,491)

Net

unrealized

appreciation

(depreciation)

..........................................................

$150,392,322

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

24

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

The

Fund

utilized

a

tax

accounting

practice

to

treat

a

portion

of

the

proceeds

from

capital

shares

redeemed

as

a

distribution

from

net

investment

income

and

realized

capital

gains.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated

$78,944,844

and

$98,715,836,

respectively.

6.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

7.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

8.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

 Statement

of

Operations.

During

the

year

ended

December

31,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$1,330,543

Undistributed

long

term

capital

gains

..............................................................

33,383,381

Total

distributable

earnings

.....................................................................

$34,713,924

4.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

25

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

9.

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.

At

December

31,

2022,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

10.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

26

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Corefolio

Allocation

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Corefolio

Allocation

Fund

(one

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

27

franklintempleton.com

Annual

Report

Franklin

Corefolio

Allocation

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

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Pursuant

to:

Amount

Reported

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$61,228,687

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$5,158,693

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$5,785,016

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$401,037

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

28

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

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

120

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

29

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

120

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

120

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

120

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

30

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

111

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),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

Since

January

2023

and

Trustee

since

2007

131

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

2013

120

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

31

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Distributors,

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

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

-

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

32

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

33

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

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.

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.

470

A

02/23

©

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

Corefolio

Allocation

Fund

Fund

Administrator

Distributor

Shareholder

Services

Franklin

Templeton

Services,

LLC

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Global

Allocation

Fund

A

Series

of

Franklin

Fund

Allocator

Series

December

31,

2022

Sign

up

for

electronic

delivery

at

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Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

December

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

first

two

quarters

given

high

trade

deficits

and

declines

in

inventory

and

business

investment,

but

GDP

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

2022’s

first

half

to

the

highest

level

in

decades,

influenced

by

pandemic-

related

supply-chain

disruptions,

strong

consumer

demand,

volatile

energy

and

commodity

prices

worsened

by

Russia’s

invasion

of

Ukraine,

and

broader

price

pressures.

Inflation

remained

high

but

eased

during

the

remainder

of

the

year.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

continued

the

reversal

of

its

quantitative

easing

measures,

increased

its

asset

purchase

tapering

and

ended

purchases

by

March

2022.

The

Federal

Reserve

raised

the

federal

funds

target

rate

by

0.25%

in

March,

0.50%

in

May,

0.75%

in

each

of

June,

July,

September

and

November,

and

0.50%

in

December

2022,

totaling

4.25%,

increasing

the

rate

from

0.25%

to

4.50%

during

the

period.

The

Federal

Reserve

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

rate

increases

to

counter

inflation.

Resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

numerous

countries

and

tighter

monetary

policies

by

many

central

banks,

which

hindered

the

global

economy

and

equities.

Russia’s

invasion

of

Ukraine

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

economic

activity

and

commodity

markets.

New

COVID

lockdowns

imposed

by

China

early

in

the

period

slowed

economic

activity,

and

protests

late

in

the

period

led

China

to

relax

its

“zero-COVID”

policy.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-19.44%

(the

index

decreasing

from

4,766.18

to

3,839.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-19.46%

(the

index

decreasing

from

3,231.727

to

2,602.685).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-13.01%

total

return

(an

index

decrease

from

2,355.14

to

2,048.73),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

As

you

know,

as

rates

rise,

principal

declines.

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Global

Allocation

Fund’s

annual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Global

Allocation

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2023,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-18.11%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

8,178.02)

and

MSCI

World

Index

-17.73%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,700.992).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Franklin

Global

Allocation

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

9

Financial

Highlights

and

Schedule

of

Investments

10

Financial

Statements

25

Notes

to

Financial

Statements

29

Report

of

Independent

Registered

Public

Accounting

Firm

42

Tax

Information

43

Board

Members

and

Officers

44

Shareholder

Information

49

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

Global

Allocation

Fund

This

annual

report

for

Franklin

Global

Allocation

Fund

covers

the

fiscal

year

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

that

is

consistent

with

an

acceptable

level

of

risk.

Under

normal

market

conditions,

the

Fund

invests

in

a

diversified

portfolio

of

debt

and

equity

securities

and,

to

a

lesser

extent,

alternative

strategies.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

SOI,

which

can

be

found

later

in

this

report.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-11.83%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

primary

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-18.36%

cumulative

total

return.

1

The

Fund’s

Custom

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents

(Blended

Benchmark)

posted

a

-15.65%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

ACWI-NR,

posted

a

-18.36%

total

return

for

the

12

months

ended

December

31,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

monetary

policy

in

2022,

which

hindered

stocks

and

the

outlook

for

economic

growth.

Russia’s

invasion

of

Ukraine

and

the

subsequent

escalation

of

the

war

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

disrupted

global

trade

and

commodity

markets.

Meanwhile,

shifting

public

health

policy

in

China

added

volatility

to

the

global

economy,

as

lockdowns

early

in

the

period

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

slowed

economic

activity,

while

widespread

protests

late

in

the

period

led

the

government

to

relax

its

strict

“zero-COVID”

policy.

In

the

U.S.,

gross

domestic

product

(GDP)

expanded

in

the

second

half

of

the

calendar

year,

recovering

from

a

slight

contraction

in

the

first

half

of

the

year

when

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

economic

output.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence

despite

high

spending

levels,

robust

job

growth

and

low

unemployment.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

six

meetings

to

end

the

period

at

a

range

of

4.25%–4.50%.

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

Diversified

Financial

Services

19.5%

Capital

Markets

10.0%

Banks

7.6%

Semiconductors

&

Semiconductor

Equipment

4.5%

Pharmaceuticals

3.8%

Software

3.7%

Metals

&

Mining

3.4%

Oil,

Gas

&

Consumable

Fuels

3.3%

Interactive

Media

&

Services

2.3%

Specialty

Retail

2.2%

Insurance

1.9%

Internet

&

Direct

Marketing

Retail

1.7%

Chemicals

1.7%

Health

Care

Providers

&

Services

1.7%

Other*

26.8%

Short-Term

Investments

&

Other

Net

Assets

5.9%

1.

Source:

Morningstar.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

2.

Source:

FactSet.

The

Blended

Benchmark

was

calculated

internally.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

15

.

Franklin

Global

Allocation

Fund

4

franklintempleton.com

Annual

Report

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

and

anticipated

additional

interest-rate

increases

at

future

meetings

to

curtail

inflation.

Economic

growth

in

the

eurozone

decelerated

to

a

slightly

positive

growth

rate

during

the

year.

The

lifting

of

COVID-

related

restrictions

in

some

European

countries

and

the

summer

tourism

season

strengthened

economies.

However,

the

war

in

Ukraine

disrupted

supply

chains,

weakened

the

economic

outlook

and

contributed

to

record

high

inflation

across

the

eurozone,

as

energy

prices

soared.

Electricity

prices

hit

record

highs

in

Germany

and

France

as

coal

futures

and

natural

gas

prices

climbed.

Consequently,

the

European

Central

Bank

raised

interest

rates

in

July

2022

for

the

first

time

in

11

years

to

curtail

growing

inflation

and

raised

rates

in

three

subsequent

meetings.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-15.06%

total

return

for

the

12

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-18.61%

total

return

for

the

12-month

period.

1

Growth

in

Japan

remained

slow,

alternating

between

positive

quarterly

GDP

growth

and

contraction.

China’s

economy

contracted

sharply

in

2022

as

COVID-related

restrictions

in

many

major

cities,

including

Shanghai,

weakened

consumer

demand.

Investor

concerns

about

the

solvency

of

several

large

property

developers

in

China

further

pressured

stocks

in

that

country.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-20.09%

total

return

for

the

12

months

under

review.

1

Central

bank

tightening,

the

threat

of

recession,

and

weakening

demand

for

semiconductors

in

technology-heavy

countries

contributed

to

the

downturn.

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

However,

some

emerging

economies,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

benefited

from

rising

commodity

prices.

Investment

Strategy

The

equity

securities

in

which

the

Fund

invests

are

primarily

common

stock

of

companies

in

any

economic

sector

or

market

capitalization.

The

debt

securities

in

which

the

Fund

may

invest

include

all

varieties

of

fixed,

floating

and

variable

rate

instruments.

Bond

investments

may

include

U.S.

and

foreign

corporate

debt,

U.S.

Treasuries

and

foreign

government

bonds.

The

Fund

will

invest

no

more

than

15%

of

its

assets

in

alternative

strategies,

which

may

include

investments

that

provide

exposure

to

commodities

such

as

commodity

futures

and

commodity

exchange

traded

funds

(ETFs).

Manager’s

Discussion

The

Fund’s

asset

allocation

moved

toward

fixed

income

over

the

one-year

period,

ending

at

more

than

one-third

of

the

portfolio

versus

just

more

than

one-quarter

at

the

beginning

of

the

period.

The

Fund’s

equity

exposure

was

well

over

one-

half

of

the

portfolio

at

period-end

versus

just

over

two-thirds

at

the

beginning

of

the

period.

Additionally,

the

Fund

held

approximately

5%

in

cash

equivalents.

For

the

one-year

period

under

review,

our

exposure

to

equities

was

the

main

detractor

on

an

absolute

return

basis

followed

by

fixed

income,

as

global

rates

increased

meaningfully

while

risk

assets

sold

off.

On

a

sector

basis

for

equities,

information

technology

was

the

weakest

performer,

followed

by

consumer

discretionary,

communication

services

and

aggregate.

Energy

was

the

strongest

performer,

followed

by

health

care.

In

fixed

income,

government

bonds

were

the

largest

detractor

from

absolute

returns.

The

top

equity

contributors

to

absolute

return

during

the

period

included

energy

companies

Chevron,

TotalEnergies

and

Canadian

Natural

Resources.

Other

contributors

included

BHP

Group,

a

global

commodities

producer,

and

AbbVie,

a

global

biopharmaceuticals

business.

The

largest

detractors

were

large-capitalization

growth

and

technology-

oriented

equities,

including

Amazon.com,

Alphabet,

Meta

Platforms,

Microsoft

and

Apple.

Our

exposure

to

the

iShares

Core

MSCI

Emerging

Markets

ETF

hurt

absolute

performance

as

well.

Our

largest

fixed

income

detractor

was

our

positioning

in

U.S.

Treasuries,

followed

by

Japanese

government

bonds,

while

our

exposure

to

Chinese

government

bonds

helped

performance.

On

a

relative

basis

versus

our

custom

Blended

Benchmark,

outperformance

was

driven

primarily

by

our

better

performance

within

equities.

We

were

also

helped

by

our

outperformance

within

fixed

income,

with

a

small

detraction

from

our

cash

holdings.

Our

relative

performance

and

positioning

within

equities

in

the

consumer

discretionary,

information

technology,

health

care,

and

materials

sectors

were

all

strong

drivers

of

outperformance,

while

our

exposure

to

the

aggregate

and

financials

sectors

detracted.

Franklin

Global

Allocation

Fund

5

franklintempleton.com

Annual

Report

Effective

October

2022,

Wylie

Tollette,

Kimberly

Strand

and

Richard

Hsu

were

added

as

co-lead

portfolio

managers,

while

Edward

D.

Perks

stepped

off

the

Fund.

Thank

you

for

your

continued

participation

in

Franklin

Global

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Wylie

Tollette,

CFA

Todd

Brighton,

CFA

Eugene

Podkaminer,

CFA

Kimberly

Strand,

CFA

Richard

Hsu,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

December

31,

2022

Franklin

Global

Allocation

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

12/31/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-11.83%

-16.68%

5-Year

+6.29%

+0.08%

10-Year

+60.19%

+4.23%

Advisor

1-Year

-11.64%

-11.64%

5-Year

+7.52%

+1.46%

10-Year

+64.14%

+5.08%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Global

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(12/31/12–12/31/22)

Advisor

Class

(12/31/12–12/31/22)

Franklin

Global

Allocation

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bonds

are

affected

by

changes

in

interest

rates

and

the

creditworthiness

of

their

issu-

ers.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Higher-yielding,

lower-rated

corporate

bonds

entail

a

greater

degree

of

credit

risk

compared

to

investment-grade

securities.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investments

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

vari-

ety

of

countries,

regions,

industries,

sectors

or

investments.

In

addition

to

risks

associated

with

more

traditional

investments

(e.g.,

market

risk,

credit

risk,

etc.),

the

Fund’s

investments

in

alternative

strategies

may

expose

the

Fund

to

potentially

significant

fluctuations

in

value.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

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

4/30/23

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.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

MSCI

ACWI-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

devel-

oped

and

emerging

markets.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

Blended

Benchmark

consists

of

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents.

The

Bloomberg

Global

Aggregate

Bond

Index

measures

the

performance

of

the

global

investment-grade,

fixed-rate

bond

markets.

The

benchmark

includes

government,

government-related

and

corporate

bonds,

as

well

as

asset-backed,

mortgage-backed

and

commercial

mortgage-backed

securities

from

both

developed

and

emerging

markets

issuers.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–12/31/22)

Share

Class

Net

Investment

Income

A

$0.5580

C

$0.4463

R

$0.5199

R6

$0.6028

Advisor

$0.5924

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.98%

1.07%

Advisor

0.73%

0.82%

Your

Fund’s

Expenses

Franklin

Global

Allocation

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,008.70

$4.56

$1,020.67

$4.58

0.90%

C

$1,000

$1,004.80

$8.34

$1,016.89

$8.39

1.65%

R

$1,000

$1,007.30

$5.82

$1,019.41

$5.85

1.15%

R6

$1,000

$1,009.50

$2.94

$1,022.28

$2.96

0.58%

Advisor

$1,000

$1,009.30

$3.29

$1,021.93

$3.31

0.65%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.95

$13.49

$14.43

$12.63

$14.54

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.18

0.19

c

0.34

c

0.42

c

0.41

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.95)

1.39

(0.27)

1.82

(1.82)

Total

from

investment

operations

....................

(1.77)

1.58

0.07

2.24

(1.41)

Less

distributions

from:

Net

investment

income

..........................

(0.56)

(0.12)

(0.47)

(0.44)

(0.50)

Net

realized

gains

.............................

—

—

(0.54)

—

—

Total

distributions

...............................

(0.56)

(0.12)

(1.01)

(0.44)

(0.50)

Net

asset

value,

end

of

year

.......................

$12.62

$14.95

$13.49

$14.43

$12.63

Total

return

d

...................................

(11.83)%

11.74%

1.55%

17.81%

(9.82)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.94%

0.94%

e

0.42%

e

0.40%

e

0.39%

e

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.91%

f

0.88%

e,f

0.42%

e,g

0.40%

e,g

0.39%

e,g

Net

investment

income

...........................

1.31%

1.33%

c

2.73%

c

2.99%

c

2.66%

c

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,417,274

$3,006,324

$2,952,287

$3,397,662

$3,209,751

Portfolio

turnover

rate

............................

15.46%

97.19%

h

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.79

$13.40

$14.33

$12.54

$14.33

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.07

0.08

c

0.23

c

0.29

c

0.18

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.91)

1.38

(0.26)

1.82

(1.67)

Total

from

investment

operations

....................

(1.84)

1.46

(0.03)

2.11

(1.49)

Less

distributions

from:

Net

investment

income

..........................

(0.45)

(0.07)

(0.36)

(0.32)

(0.30)

Net

realized

gains

.............................

—

—

(0.54)

—

—

Total

distributions

...............................

(0.45)

(0.07)

(0.90)

(0.32)

(0.30)

Net

asset

value,

end

of

year

.......................

$12.50

$14.79

$13.40

$14.33

$12.54

Total

return

d

...................................

(12.45)%

10.89%

0.79%

16.91%

(10.54)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.69%

1.68%

e

1.17%

e

1.15%

e

1.14%

e

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.66%

f

1.62%

e,f

1.17%

e,g

1.15%

e,g

1.14%

e,g

Net

investment

income

...........................

0.56

%

0.58%

c

1.85%

c

2.24%

c

1.91%

c

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$84,086

$131,347

$201,506

$300,699

$362,833

Portfolio

turnover

rate

............................

15.46%

97.19%

h

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$14.99

$13.54

$14.48

$12.68

$14.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.14

0.15

c

0.31

c

0.37

c

0.34

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.95)

1.40

(0.28)

1.83

(1.78)

Total

from

investment

operations

....................

(1.81)

1.55

0.03

2.20

(1.44)

Less

distributions

from:

Net

investment

income

..........................

(0.52)

(0.10)

(0.43)

(0.40)

(0.46)

Net

realized

gains

.............................

—

—

(0.54)

—

—

Total

distributions

...............................

(0.52)

(0.10)

(0.97)

(0.40)

(0.46)

Net

asset

value,

end

of

year

.......................

$12.66

$14.99

$13.54

$14.48

$12.68

Total

return

d

...................................

(12.06)%

11.50%

1.28%

17.44%

(10.01)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.19%

1.19%

e

0.67%

e

0.65%

e

0.64%

e

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.16%

f

1.13%

e,f

0.67%

e,g

0.65%

e,g

0.64%

e,g

Net

investment

income

...........................

1.06%

1.08%

c

2.47%

c

2.74%

c

2.41%

c

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$3,906

$5,229

$4,975

$5,699

$5,513

Portfolio

turnover

rate

............................

15.46%

97.19%

h

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.43

$13.89

$14.81

$12.95

$14.62

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.22

0.25

c

0.96

c

0.46

c

0.37

c

Net

realized

and

unrealized

gains

(losses)

...........

(2.02)

1.43

(0.83)

1.88

(1.75)

Total

from

investment

operations

....................

(1.80)

1.68

0.13

2.34

(1.38)

Less

distributions

from:

Net

investment

income

..........................

(0.60)

(0.14)

(0.51)

(0.48)

(0.29)

Net

realized

gains

.............................

—

—

(0.54)

—

—

Total

distributions

...............................

(0.60)

(0.14)

(1.05)

(0.48)

(0.29)

Net

asset

value,

end

of

year

.......................

$13.03

$15.43

$13.89

$14.81

$12.95

Total

return

d

...................................

(11.62)%

12.14%

1.94%

18.18%

(9.57)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.66%

0.67%

e

0.21%

e

3.23%

e

0.08%

e

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.59%

f

0.54%

e,f

0.07%

e

0.07%

e

0.07%

e

Net

investment

income

...........................

1.61%

1.69%

c

7.33%

c

3.32%

c

2.98%

c

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,087

$573

$631

$5

$4

Portfolio

turnover

rate

............................

15.46%

97.19%

g

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$15.07

$13.58

$14.52

$12.71

$14.63

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.21

0.23

c

0.37

c

0.45

c

0.43

c

Net

realized

and

unrealized

gains

(losses)

...........

(1.97)

1.40

(0.27)

1.83

(1.81)

Total

from

investment

operations

....................

(1.76)

1.63

0.10

2.28

(1.38)

Less

distributions

from:

Net

investment

income

..........................

(0.59)

(0.14)

(0.50)

(0.47)

(0.54)

Net

realized

gains

.............................

—

—

(0.54)

—

—

Total

distributions

...............................

(0.59)

(0.14)

(1.04)

(0.47)

(0.54)

Net

asset

value,

end

of

year

.......................

$12.72

$15.07

$13.58

$14.52

$12.71

Total

return

d

...................................

(11.64)%

12.01%

1.79%

18.06%

(9.60)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.69%

0.69%

e

0.17%

e

0.15%

e

0.14%

e

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.66%

f

0.63%

e,f

0.17%

e,g

0.15%

e,g

0.14%

e,g

Net

investment

income

...........................

1.56%

1.58%

c

2.89%

c

3.24%

c

2.91%

c

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$98,974

$122,896

$123,049

$156,275

$145,522

Portfolio

turnover

rate

............................

15.46%

97.19%

h

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable

e

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Schedule

of

Investments,

December

31,

2022

Franklin

Global

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

54.9%

Aerospace

&

Defense

0.7%

Raytheon

Technologies

Corp.

............................

United

States

180,000

$

18,165,600

Air

Freight

&

Logistics

0.6%

Deutsche

Post

AG

.....................................

Germany

125,000

4,678,115

United

Parcel

Service,

Inc.,

B

............................

United

States

64,600

11,230,064

15,908,179

Automobiles

0.9%

Mercedes-Benz

Group

AG

..............................

Germany

115,000

7,520,068

Toyota

Motor

Corp.

....................................

Japan

1,137,000

15,506,257

23,026,325

Banks

4.3%

Banco

Bilbao

Vizcaya

Argentaria

SA

.......................

Spain

1,161,389

6,995,031

Bank

of

America

Corp.

.................................

United

States

530,600

17,573,472

Citigroup,

Inc.

........................................

United

States

207,100

9,367,133

Commonwealth

Bank

of

Australia

.........................

Australia

175,000

12,153,704

JPMorgan

Chase

&

Co.

.................................

United

States

275,300

36,917,730

Royal

Bank

of

Canada

.................................

Canada

118,000

11,094,092

US

Bancorp

.........................................

United

States

419,000

18,272,590

112,373,752

Beverages

1.1%

Coca-Cola

Co.

(The)

...................................

United

States

101,400

6,450,054

Constellation

Brands,

Inc.,

A

.............................

United

States

32,300

7,485,525

PepsiCo,

Inc.

........................................

United

States

75,500

13,639,830

27,575,409

Biotechnology

0.9%

AbbVie,

Inc.

.........................................

United

States

139,000

22,463,790

Building

Products

0.3%

Trane

Technologies

plc

.................................

United

States

50,300

8,454,927

Capital

Markets

1.4%

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

82,000

3,523,606

Morgan

Stanley

.......................................

United

States

244,600

20,795,892

S&P

Global,

Inc.

......................................

United

States

33,700

11,287,478

35,606,976

Chemicals

0.9%

BASF

SE

...........................................

Germany

177,000

8,714,832

Linde

plc

............................................

United

Kingdom

44,000

14,351,920

23,066,752

Communications

Equipment

0.2%

Cisco

Systems,

Inc.

...................................

United

States

112,500

5,359,500

Diversified

Telecommunication

Services

0.5%

Verizon

Communications,

Inc.

............................

United

States

311,500

12,273,100

Electric

Utilities

1.4%

Duke

Energy

Corp.

....................................

United

States

65,000

6,694,350

Iberdrola

SA

.........................................

Spain

1,083,766

12,650,754

NextEra

Energy,

Inc.

...................................

United

States

132,000

11,035,200

Southern

Co.

(The)

....................................

United

States

100,000

7,141,000

37,521,304

Electrical

Equipment

0.2%

Mitsubishi

Electric

Corp.

................................

Japan

560,000

5,547,105

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

&

Components

0.4%

TE

Connectivity

Ltd.

...................................

Switzerland

93,000

$

10,676,400

Entertainment

0.7%

Electronic

Arts,

Inc.

....................................

United

States

87,000

10,629,660

Nintendo

Co.

Ltd.

.....................................

Japan

201,000

8,448,466

19,078,126

Equity

Real

Estate

Investment

Trusts

(REITs)

1.0%

American

Tower

Corp.

..................................

United

States

61,500

13,029,390

Prologis,

Inc.

.........................................

United

States

110,000

12,400,300

25,429,690

Food

&

Staples

Retailing

0.3%

Walmart,

Inc.

........................................

United

States

54,200

7,685,018

Food

Products

1.0%

Mondelez

International,

Inc.,

A

............................

United

States

148,500

9,897,525

Nestle

SA

...........................................

United

States

137,641

15,897,974

25,795,499

Health

Care

Equipment

&

Supplies

0.5%

Medtronic

plc

........................................

United

States

153,900

11,961,108

Health

Care

Providers

&

Services

1.3%

Elevance

Health,

Inc.

..................................

United

States

23,400

12,003,498

UnitedHealth

Group,

Inc.

................................

United

States

40,000

21,207,200

33,210,698

Hotels,

Restaurants

&

Leisure

0.5%

McDonald's

Corp.

.....................................

United

States

53,000

13,967,090

Household

Durables

0.6%

Sony

Group

Corp.

.....................................

Japan

206,600

15,741,989

Household

Products

0.8%

Procter

&

Gamble

Co.

(The)

.............................

United

States

138,000

20,915,280

Independent

Power

and

Renewable

Electricity

Producers

0.2%

RWE

AG

............................................

Germany

125,000

5,525,708

Industrial

Conglomerates

1.3%

Hitachi

Ltd.

..........................................

Japan

139,000

6,991,566

Honeywell

International,

Inc.

.............................

United

States

70,000

15,001,000

Siemens

AG

.........................................

Germany

95,697

13,191,341

35,183,907

Insurance

1.8%

AIA

Group

Ltd.

.......................................

Hong

Kong

897,000

9,906,049

Allianz

SE

...........................................

Germany

25,000

5,338,696

MetLife,

Inc.

.........................................

United

States

184,011

13,316,876

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

..

Germany

21,000

6,792,569

Sun

Life

Financial,

Inc.

.................................

Canada

253,000

11,743,759

47,097,949

Interactive

Media

&

Services

2.1%

a

Alphabet,

Inc.,

A

......................................

United

States

300,000

26,469,000

a

Meta

Platforms,

Inc.,

A

.................................

United

States

82,000

9,867,880

Tencent

Holdings

Ltd.

..................................

China

443,925

18,822,823

55,159,703

Internet

&

Direct

Marketing

Retail

1.5%

a

Amazon.com,

Inc.

.....................................

United

States

260,000

21,840,000

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

(continued)

JD.com,

Inc.,

A

.......................................

China

106,853

$

2,983,015

a

Pinduoduo,

Inc.,

ADR

..................................

China

190,805

15,560,148

40,383,163

IT

Services

1.6%

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

145,900

8,344,021

Fujitsu

Ltd.

..........................................

Japan

92,000

12,261,019

Mastercard,

Inc.,

A

....................................

United

States

28,000

9,736,440

Visa,

Inc.,

A

..........................................

United

States

54,000

11,219,040

41,560,520

Life

Sciences

Tools

&

Services

0.7%

Danaher

Corp.

.......................................

United

States

46,000

12,209,320

a

Illumina,

Inc.

.........................................

United

States

29,000

5,863,800

18,073,120

Machinery

1.1%

Deere

&

Co.

.........................................

United

States

36,000

15,435,360

Stanley

Black

&

Decker,

Inc.

.............................

United

States

68,300

5,130,696

Volvo

AB,

B

..........................................

Sweden

490,000

8,850,612

29,416,668

Marine

0.3%

AP

Moller

-

Maersk

A/S,

B

...............................

Denmark

3,500

7,834,666

Media

0.3%

Comcast

Corp.,

A

.....................................

United

States

217,700

7,612,969

Metals

&

Mining

2.8%

Agnico

Eagle

Mines

Ltd.

................................

Canada

210,000

10,912,555

BHP

Group

Ltd.

......................................

Australia

665,000

20,665,215

Fortescue

Metals

Group

Ltd.

.............................

Australia

615,000

8,595,319

Newmont

Corp.

.......................................

United

States

220,000

10,384,000

Rio

Tinto

plc

.........................................

Australia

322,000

22,662,724

73,219,813

Multiline

Retail

0.7%

a

Dollar

Tree,

Inc.

......................................

United

States

60,000

8,486,400

Target

Corp.

.........................................

United

States

63,000

9,389,520

17,875,920

Multi-Utilities

0.4%

Dominion

Energy,

Inc.

..................................

United

States

150,000

9,198,000

Oil,

Gas

&

Consumable

Fuels

2.7%

Canadian

Natural

Resources

Ltd.

.........................

Canada

260,000

14,438,257

Chevron

Corp.

.......................................

United

States

192,000

34,462,080

TotalEnergies

SE

.....................................

France

301,019

18,895,044

Woodside

Energy

Group

Ltd.

............................

Australia

120,166

2,891,011

70,686,392

Pharmaceuticals

3.1%

AstraZeneca

plc

......................................

United

Kingdom

172,000

23,273,970

Bristol-Myers

Squibb

Co.

................................

United

States

216,000

15,541,200

Johnson

&

Johnson

...................................

United

States

77,000

13,602,050

Novo

Nordisk

A/S,

B

...................................

Denmark

95,000

12,901,736

Pfizer,

Inc.

...........................................

United

States

305,000

15,628,200

80,947,156

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Road

&

Rail

1.0%

Canadian

National

Railway

Co.

...........................

Canada

95,000

$

11,284,934

Union

Pacific

Corp.

....................................

United

States

70,000

14,494,900

25,779,834

Semiconductors

&

Semiconductor

Equipment

4.0%

Analog

Devices,

Inc.

...................................

United

States

100,000

16,403,000

Applied

Materials,

Inc.

..................................

United

States

93,000

9,056,340

Broadcom,

Inc.

.......................................

United

States

24,600

13,754,598

Lam

Research

Corp.

...................................

United

States

9,400

3,950,820

NVIDIA

Corp.

........................................

United

States

32,500

4,749,550

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

250,000

18,622,500

Texas

Instruments,

Inc.

.................................

United

States

158,100

26,121,282

Tokyo

Electron

Ltd.

....................................

Japan

39,500

11,602,256

104,260,346

Software

3.7%

a

Adobe,

Inc.

..........................................

United

States

25,000

8,413,250

Intuit,

Inc.

...........................................

United

States

27,000

10,508,940

Microsoft

Corp.

.......................................

United

States

146,400

35,109,648

Oracle

Corp.

.........................................

United

States

129,000

10,544,460

a

Salesforce,

Inc.

.......................................

United

States

47,000

6,231,730

a

ServiceNow,

Inc.

......................................

United

States

15,000

5,824,050

a

Synopsys,

Inc.

.......................................

United

States

36,100

11,526,369

a

Workday,

Inc.,

A

......................................

United

States

51,000

8,533,830

96,692,277

Specialty

Retail

2.2%

Home

Depot,

Inc.

(The)

.................................

United

States

39,000

12,318,540

Lowe's

Cos.,

Inc.

......................................

United

States

63,900

12,731,436

a

O'Reilly

Automotive,

Inc.

................................

United

States

14,000

11,816,420

TJX

Cos.,

Inc.

(The)

...................................

United

States

142,924

11,376,750

Tractor

Supply

Co.

....................................

United

States

37,667

8,473,945

56,717,091

Technology

Hardware,

Storage

&

Peripherals

1.6%

Apple,

Inc.

..........................................

United

States

250,000

32,482,500

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

200,000

8,815,563

41,298,063

Textiles,

Apparel

&

Luxury

Goods

0.4%

NIKE,

Inc.,

B

.........................................

United

States

95,000

11,115,950

Trading

Companies

&

Distributors

0.4%

ITOCHU

Corp.

.......................................

Japan

310,000

9,722,220

Wireless

Telecommunication

Services

0.5%

KDDI

Corp.

..........................................

Japan

418,300

12,681,392

Total

Common

Stocks

(Cost

$1,462,388,202)

....................................

1,429,846,444

Management

Investment

Companies

8.1%

Capital

Markets

8.1%

iShares

Core

MSCI

Emerging

Markets

ETF

..................

United

States

1,600,000

74,720,000

b

Templeton

Global

Bond

Fund,

Class

R6

....................

United

States

14,401,612

113,052,656

VanEck

J.P.

Morgan

EM

Local

Currency

Bond

ETF

............

United

States

985,000

23,866,550

211,639,206

Total

Management

Investment

Companies

(Cost

$263,128,111)

...................

211,639,206

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

10.2%

Auto

Components

0.1%

c

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

3,250,000

$

2,284,120

Automobiles

0.0%

†

c

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

1,600,000

1,135,210

Banks

2.3%

c

Australia

&

New

Zealand

Banking

Group

Ltd.

,

Sub.

Bond

,

144A,

2.57%

to

11/24/30,

FRN

thereafter

,

11/25/35

................

Australia

6,687,000

4,920,397

d

Bank

of

America

Corp.

,

U

,

Junior

Sub.

Bond

,

5.2%

to

5/31/23,

FRN

thereafter

,

Perpetual

.................................

United

States

3,994,000

3,872,688

Barclays

plc

,

Senior

Note,

3.932%

to

5/06/24,

FRN

thereafter,

5/07/25

......

United

Kingdom

7,000,000

6,791,792

Senior

Note,

4.375%,

1/12/26

..........................

United

Kingdom

8,000,000

7,750,530

HSBC

Holdings

plc

,

Sub.

Bond

,

4.25

%

,

8/18/25

...............

United

Kingdom

6,128,000

5,900,817

d

JPMorgan

Chase

&

Co.

,

Q

,

Junior

Sub.

Bond

,

5.15%

to

4/30/23,

FRN

thereafter

,

Perpetual

.............................

United

States

4,045,000

3,953,988

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Bond

,

3.287

%

,

7/25/27

Japan

1,690,000

1,559,453

c

Societe

Generale

SA

,

d

Junior

Sub.

Bond,

144A,

4.75%

to

5/25/26,

FRN

thereafter,

Perpetual

.........................................

France

1,600,000

1,362,156

Senior

Note,

144A,

2.625%,

1/22/25

.....................

France

6,354,000

5,978,510

Sumitomo

Mitsui

Financial

Group,

Inc.

,

Sub.

Bond

,

2.142

%

,

9/23/30

Japan

5,500,000

4,243,682

c

Toronto-Dominion

Bank

(The)

,

Sub.

Bond

,

Reg

S,

3.105%

to

4/21/25,

FRN

thereafter

,

4/22/30

...............................

Canada

4,900,000

CAD

3,428,878

c

UniCredit

SpA

,

Senior

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...................................

Italy

8,500,000

6,407,582

d

US

Bancorp

,

Junior

Sub.

Bond

,

3.7%

to

1/14/27,

FRN

thereafter

,

Perpetual

..........................................

United

States

1,670,000

1,369,400

d

Wells

Fargo

&

Co.

,

S

,

Junior

Sub.

Bond

,

5.9%

to

6/14/24,

FRN

thereafter

,

Perpetual

.................................

United

States

1,504,000

1,350,758

Westpac

Banking

Corp.

,

Sub.

Bond

,

2.894%

to

2/03/25,

FRN

thereafter

,

2/04/30

...................................

Australia

1,503,000

1,379,054

60,269,685

Beverages

0.1%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

4

%

,

4/13/28

Belgium

4,000,000

3,814,505

Biotechnology

0.1%

c

Grifols

Escrow

Issuer

SA

,

Senior

Note

,

144A,

4.75

%

,

10/15/28

...

Spain

1,600,000

1,383,440

Capital

Markets

0.5%

Deutsche

Bank

AG

,

Senior

Bond,

3.547%

to

9/17/30,

FRN

thereafter,

9/18/31

.....

Germany

5,000,000

4,019,265

Senior

Note,

2.129%

to

11/23/25,

FRN

thereafter,

11/24/26

....

Germany

3,000,000

2,649,636

c

Macquarie

Bank

Ltd.

,

Senior

Note

,

Reg

S,

1.125

%

,

12/15/25

.....

Australia

1,250,000

GBP

1,349,539

Nomura

Holdings,

Inc.

,

Senior

Bond

,

3.103

%

,

1/16/30

..........

Japan

6,225,000

5,205,180

13,223,620

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

0.8%

c

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,600,000

$

5,439,422

c

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

1,258,000

1,072,714

c

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

3,200,000

2,996,394

c

International

Flavors

&

Fragrances,

Inc.

,

Senior

Bond

,

144A,

2.3

%

,

11/01/30

..........................................

United

States

5,000,000

3,978,335

Nutrien

Ltd.

,

Senior

Bond

,

2.95

%

,

5/13/30

...................

Canada

7,800,000

6,700,363

Sasol

Financing

USA

LLC

,

Senior

Note

,

4.375

%

,

9/18/26

.......

South

Africa

1,600,000

1,418,395

21,605,623

Commercial

Services

&

Supplies

0.1%

c

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

3,200,000

2,654,358

Communications

Equipment

0.1%

c

CommScope

Technologies

LLC

,

Senior

Note,

144A,

6%,

6/15/25

........................

United

States

2,200,000

2,006,532

Senior

Note,

144A,

5%,

3/15/27

........................

United

States

954,000

649,466

2,655,998

Consumer

Finance

0.4%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond,

3.4%,

10/29/33

...........................

Ireland

3,400,000

2,587,085

Senior

Note,

2.45%,

10/29/26

..........................

Ireland

4,750,000

4,159,756

c,d

Volkswagen

International

Finance

NV

,

Senior

Bond

,

Reg

S,

3.5%

to

6/16/25,

FRN

thereafter

,

Perpetual

.......................

Germany

3,200,000

EUR

3,178,249

9,925,090

Containers

&

Packaging

0.1%

c,e

ARD

Finance

SA

,

Senior

Secured

Note

,

144A,

PIK,

6.5

%

,

6/30/27

.

Luxembourg

1,500,000

1,045,669

c

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

......................

United

States

954,000

884,145

Senior

Secured

Note,

144A,

5.5%,

4/15/24

................

United

States

313,000

304,989

c

Trivium

Packaging

Finance

BV

,

Senior

Secured

Note

,

144A,

3.75

%

,

8/15/26

...........................................

Netherlands

521,000

EUR

511,637

2,746,440

Diversified

Financial

Services

0.3%

c

Siemens

Financieringsmaatschappij

NV

,

Senior

Bond

,

144A,

2.35

%

,

10/15/26

..........................................

Germany

5,800,000

5,284,946

c

Woodside

Finance

Ltd.

,

Senior

Bond

,

144A,

4.5

%

,

3/04/29

......

Australia

4,000,000

3,757,963

9,042,909

Diversified

Telecommunication

Services

0.2%

c

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

1,243,000

736,405

c

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.125

%

,

7/15/29

...

France

1,675,000

1,258,810

c

Iliad

Holding

SASU

,

Senior

Secured

Note

,

144A,

6.5

%

,

10/15/26

..

France

3,000,000

2,787,551

4,782,766

Electric

Utilities

0.1%

Pacific

Gas

and

Electric

Co.

,

Senior

Note

,

2.1

%

,

8/01/27

........

United

States

1,600,000

1,368,874

Electrical

Equipment

0.1%

c

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

1,600,000

1,361,888

Electronic

Equipment,

Instruments

&

Components

0.1%

c

TTM

Technologies,

Inc.

,

Senior

Note

,

144A,

4

%

,

3/01/29

........

United

States

1,640,000

1,408,744

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Energy

Equipment

&

Services

0.1%

c

Weatherford

International

Ltd.

,

Senior

Secured

Note

,

144A,

6.5

%

,

9/15/28

...........................................

United

States

2,800,000

$

2,748,872

Food

Products

0.0%

†

c

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

12/01/31

.....................

United

States

1,600,000

1,314,345

Health

Care

Providers

&

Services

0.4%

c

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

950,000

490,041

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

1,162,000

1,060,325

c

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

1,600,000

1,290,467

c

Fresenius

Medical

Care

US

Finance

III,

Inc.

,

Senior

Bond

,

144A,

2.375

%

,

2/16/31

.....................................

Germany

9,000,000

6,619,924

9,460,757

Hotels,

Restaurants

&

Leisure

0.2%

Las

Vegas

Sands

Corp.

,

Senior

Note

,

3.2

%

,

8/08/24

...........

United

States

1,600,000

1,513,262

c

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/25

.................................

United

States

3,115,000

2,963,630

4,476,892

Household

Products

0.2%

c

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

6,180,000

4,951,323

Independent

Power

and

Renewable

Electricity

Producers

0.1%

c

Calpine

Corp.

,

Senior

Secured

Note

,

144A,

4.5

%

,

2/15/28

.......

United

States

306,000

273,620

c,d

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/14/26,

FRN

thereafter

,

Perpetual

.................................

United

States

1,640,000

1,494,660

1,768,280

Insurance

0.1%

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.375%

to

5/14/25,

FRN

thereafter

,

5/15/45

...................................

United

States

4,060,000

3,931,438

Interactive

Media

&

Services

0.2%

c

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

6,290,000

5,128,470

Internet

&

Direct

Marketing

Retail

0.2%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

3.4

%

,

12/06/27

.......

China

6,300,000

5,805,903

Machinery

0.2%

CNH

Industrial

NV

,

Senior

Bond

,

3.85

%

,

11/15/27

.............

United

Kingdom

5,000,000

4,691,755

Media

0.1%

c

DISH

DBS

Corp.

,

Senior

Secured

Note

,

144A,

5.25

%

,

12/01/26

...

United

States

1,600,000

1,350,736

Metals

&

Mining

0.6%

ArcelorMittal

SA

,

Senior

Bond

,

4.25

%

,

7/16/29

...............

Luxembourg

6,000,000

5,387,388

c

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

4/15/30

...........................................

Australia

5,000,000

4,664,863

c

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

......

Australia

7,000,000

5,697,846

15,750,097

Oil,

Gas

&

Consumable

Fuels

0.4%

c

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

..............

Norway

7,900,000

6,498,557

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

3.85

%

,

6/01/27

..

Canada

5,500,000

5,188,202

11,686,759

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Paper

&

Forest

Products

0.2%

Suzano

Austria

GmbH

,

Senior

Bond

,

3.75

%

,

1/15/31

...........

Brazil

4,805,000

$

4,041,877

Pharmaceuticals

0.7%

c

1375209

BC

Ltd.

,

Senior

Secured

Note

,

144A,

9

%

,

1/30/28

......

Canada

523,000

511,886

AstraZeneca

plc

,

Senior

Bond

,

4

%

,

1/17/29

..................

United

Kingdom

4,000,000

3,847,262

c

Bausch

Health

Cos.,

Inc.

,

Secured

Note,

144A,

14%,

10/15/30

.....................

United

States

184,000

110,151

Senior

Secured

Note,

144A,

11%,

9/30/28

.................

United

States

930,000

729,906

c

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

7,000,000

6,790,209

Takeda

Pharmaceutical

Co.

Ltd.

,

Senior

Note

,

5

%

,

11/26/28

.....

Japan

6,500,000

6,458,143

18,447,557

Road

&

Rail

0.2%

c

Ashtead

Capital,

Inc.

,

Senior

Bond

,

144A,

5.5

%

,

8/11/32

........

United

Kingdom

6,000,000

5,756,370

Semiconductors

&

Semiconductor

Equipment

0.5%

c

Broadcom,

Inc.

,

Senior

Bond

,

144A,

4.15

%

,

4/15/32

...........

United

States

7,000,000

6,164,175

c

SK

Hynix,

Inc.

,

Senior

Note

,

144A,

1.5

%

,

1/19/26

.............

South

Korea

8,000,000

6,936,533

13,100,708

Software

0.0%

†

c

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

1,640,000

1,294,987

Tobacco

0.1%

BAT

Capital

Corp.

,

Senior

Bond

,

2.726

%

,

3/25/31

.............

United

Kingdom

4,350,000

3,403,983

Wireless

Telecommunication

Services

0.3%

Vodafone

Group

plc

,

Senior

Bond

,

6.15

%

,

2/27/37

.............

United

Kingdom

6,500,000

6,611,135

Total

Corporate

Bonds

(Cost

$293,627,329)

.....................................

265,385,514

Foreign

Government

and

Agency

Securities

10.3%

c

Australia

Government

Bond

,

Reg

S,

1.5

%

,

6/21/31

............

Australia

12,170,000

AUD

6,816,083

c

Belgium

Government

Bond

,

Senior

Bond

,

Reg

S,

4

%

,

3/28/32

....

Belgium

3,150,000

EUR

3,605,362

c

Bundesrepublik

Deutschland

,

Reg

S,

8/15/30

................

Germany

10,500,000

EUR

9,357,657

Canada

Government

Bond

,

1.25%,

3/01/27

.....................................

Canada

13,750,000

CAD

9,284,601

2.25%,

6/01/29

.....................................

Canada

5,500,000

CAD

3,824,938

c

Canada

Housing

Trust

No.

1

,

Senior

Bond

,

144A,

2.65

%

,

12/15/28

Canada

18,100,000

CAD

12,626,287

China

Government

Bond

,

2.18%,

6/25/24

.....................................

China

119,310,000

CNY

17,255,999

1.99%,

9/15/24

.....................................

China

47,110,000

CNY

6,793,108

2.5%,

7/25/27

......................................

China

121,580,000

CNY

17,467,874

2.44%,

10/15/27

.....................................

China

47,210,000

CNY

6,771,658

2.6%,

9/01/32

......................................

China

159,360,000

CNY

22,610,514

Ecopetrol

SA

,

Senior

Bond

,

4.625

%

,

11/02/31

................

Colombia

1,650,000

1,263,710

European

Investment

Bank

,

Senior

Bond

,

2.125

%

,

4/13/26

......

Supranational

f

14,750,000

13,780,611

c

Finland

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

0.75%,

4/15/31

................

Finland

1,892,000

EUR

1,696,110

Senior

Bond,

144A,

Reg

S,

1.375%,

4/15/47

...............

Finland

1,567,000

EUR

1,239,294

c

France

Government

Bond

,

Reg

S,

2.5%,

5/25/30

.................................

France

4,120,000

EUR

4,314,981

Reg

S,

Zero

Cpn.,

11/25/30

............................

France

4,350,000

EUR

3,718,357

Reg

S,

1.5%,

5/25/31

.................................

France

4,410,000

EUR

4,251,018

c

Italy

Buoni

Poliennali

del

Tesoro

,

Senior

Bond,

144A,

Reg

S,

4.75%,

9/01/44

................

Italy

1,860,000

EUR

1,989,946

Senior

Bond,

144A,

Reg

S,

3.25%,

9/01/46

................

Italy

1,884,000

EUR

1,618,399

Senior

Bond,

144A,

Reg

S,

1.7%,

9/01/51

.................

Italy

2,786,000

EUR

1,659,516

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Japan

Government

Bond

,

0.1%,

6/20/31

......................................

Japan

8,050,000,000

JPY

$

59,269,362

0.5%,

9/20/46

......................................

Japan

1,435,000,000

JPY

8,905,528

Japan

Treasury

Bonds

,

0.2

%

,

6/20/32

......................

Japan

1,160,000,000

JPY

8,651,848

Mexico

Government

Bond

,

Senior

Bond

,

4.125

%

,

1/21/26

.......

Mexico

13,950,000

13,640,789

c

Netherlands

Government

Bond

,

144A,

Reg

S,

0.5%,

1/15/40

............................

Netherlands

1,410,000

EUR

1,044,014

144A,

Reg

S,

3.75%,

1/15/42

...........................

Netherlands

865,000

EUR

1,052,495

Petroleos

Mexicanos

,

Senior

Note

,

6.5

%

,

3/13/27

.............

Mexico

4,500,000

4,114,406

Spain

Bonos

Y

Obligaciones

del

Estado

,

c

Senior

Bond,

144A,

Reg

S,

1.95%,

4/30/26

................

Spain

2,563,000

EUR

2,655,099

c

Senior

Bond,

144A,

Reg

S,

2.9%,

10/31/46

................

Spain

1,610,000

EUR

1,485,442

6%,

1/31/29

........................................

Spain

3,760,000

EUR

4,653,004

c

United

Kingdom

Gilt

,

Reg

S,

1.75%,

9/07/37

................................

United

Kingdom

8,700,000

GBP

7,916,785

Reg

S,

1.5%,

7/22/47

.................................

United

Kingdom

5,110,000

GBP

3,773,080

Total

Foreign

Government

and

Agency

Securities

(Cost

$317,637,824)

............

269,107,875

U.S.

Government

and

Agency

Securities

8.8%

U.S.

Treasury

Notes

,

0.125%,

8/31/23

.....................................

United

States

32,000,000

31,034,742

2.25%,

3/31/24

.....................................

United

States

32,000,000

31,052,500

0.375%,

9/15/24

.....................................

United

States

32,000,000

29,828,750

1.75%,

3/15/25

.....................................

United

States

32,000,000

30,242,500

0.375%,

12/31/25

....................................

United

States

13,000,000

11,619,766

0.875%,

11/15/30

....................................

United

States

13,000,000

10,393,906

g

Index

Linked,

0.125%,

1/15/31

..........................

United

States

63,000,000

64,100,417

1.875%,

2/15/32

.....................................

United

States

25,000,000

21,215,820

Total

U.S.

Government

and

Agency

Securities

(Cost

$254,012,007)

................

229,488,401

Mortgage-Backed

Securities

1.8%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

1.8%

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

.................

United

States

30,663,807

27,471,671

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

.................

United

States

19,856,625

17,796,911

45,268,582

Total

Mortgage-Backed

Securities

(Cost

$53,096,281)

............................

45,268,582

Total

Long

Term

Investments

(Cost

$2,643,889,754)

.............................

2,450,736,022

a

Short

Term

Investments

3.8%

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

U.S.

Government

and

Agency

Securities

2.6%

h

U.S.

Treasury

Bills,

2/23/23

..............................

United

States

67,750,000

67,342,748

Total

U.S.

Government

and

Agency

Securities

(Cost

$67,333,921)

.................

67,342,748

Franklin

Fund

Allocator

Series

Schedule

of

Investments

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

At

December

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 9 regarding

other

derivative

information.

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.2%

b,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

....

United

States

31,640,989

$

31,640,989

Total

Money

Market

Funds

(Cost

$31,640,989)

..................................

31,640,989

Total

Short

Term

Investments

(Cost

$98,974,910

)

................................

98,983,737

a

Total

Investments

(Cost

$2,742,864,664)

97.9%

..................................

$2,549,719,759

Other

Assets,

less

Liabilities

2.1%

.............................................

55,607,393

Net

Assets

100.0%

...........................................................

$2,605,327,152

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2022,

the

aggregate

value

of

these

securities

was

$215,229,870,

representing

8.3%

of

net

assets.

d

Perpetual

security

with

no

stated

maturity

date.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

g

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(e).

h

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Chinese

Yuan

......

BZWS

Sell

493,922,000

69,387,326

1/11/23

$

—

$

(2,023,078)

Australian

Dollar

....

BZWS

Sell

40,271,000

25,876,131

1/31/23

—

(1,574,797)

British

Pound

......

JPHQ

Sell

53,168,982

61,186,865

1/31/23

—

(3,139,360)

Canadian

Dollar

....

BZWS

Sell

116,121,000

85,179,709

1/31/23

—

(595,992)

Euro

.............

BZWS

Sell

141,088,000

140,242,883

1/31/23

—

(11,087,534)

Hong

Kong

Dollar

...

HSBK

Sell

269,802,162

34,691,725

1/31/23

104,834

—

Japanese

Yen

......

JPHQ

Sell

23,556,761,000

162,033,546

1/31/23

—

(18,088,256)

Total

Forward

Exchange

Contracts

...................................................

$104,834

$(36,509,017)

Net

unrealized

appreciation

(depreciation)

............................................

$(36,404,183)

See

Abbreviations

on

page

41

.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

Franklin

Global

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,573,767,540

Cost

-

Non-controlled

affiliates

(Note

3f)

........................................................

169,097,124

Value

-

Unaffiliated

issuers

..................................................................

$2,405,026,114

Value

-

Non-controlled

affiliates

(Note

3f)

........................................................

144,693,645

Cash

....................................................................................

34,385

Foreign

currency,

at

value

(cost

$153,829)

........................................................

153,978

Receivables:

Investment

securities

sold

...................................................................

55,000,000

Capital

shares

sold

........................................................................

113,834

Dividends

and

interest

.....................................................................

8,085,397

European

Union

tax

reclaims

(Note

1d)

.........................................................

130,343

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

32,380,810

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

104,834

Total

assets

..........................................................................

2,645,723,340

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

1,238,175

Management

fees

.........................................................................

1,234,701

Distribution

fees

..........................................................................

596,060

Transfer

agent

fees

........................................................................

610,798

Trustees'

fees

and

expenses

.................................................................

710

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

36,509,017

Accrued

expenses

and

other

liabilities

...........................................................

206,727

Total

liabilities

.........................................................................

40,396,188

Net

assets,

at

value

.................................................................

$2,605,327,152

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,889,811,244

Total

distributable

earnings

(losses)

.............................................................

(284,484,092)

Net

assets,

at

value

.................................................................

$2,605,327,152

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2022

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

Franklin

Global

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,417,274,241

Shares

outstanding

........................................................................

191,568,573

Net

asset

value

per

share

a

..................................................................

$12.62

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$13.35

Class

C:

Net

assets,

at

value

.......................................................................

$84,085,800

Shares

outstanding

........................................................................

6,729,374

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$12.50

Class

R:

Net

assets,

at

value

.......................................................................

$3,905,586

Shares

outstanding

........................................................................

308,538

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.66

Class

R6:

Net

assets,

at

value

.......................................................................

$1,087,396

Shares

outstanding

........................................................................

83,433

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.03

Advisor

Class:

Net

assets,

at

value

.......................................................................

$98,974,129

Shares

outstanding

........................................................................

7,778,052

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.72

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

year

ended

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

Franklin

Global

Allocation

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$2,439,556)

Unaffiliated

issuers

........................................................................

$36,011,861

Non-controlled

affiliates

(Not

e

3f)

.............................................................

8,128,869

Interest:

Unaffiliated

issuers

........................................................................

18,751,421

Other

income

(Not

e

1d)

......................................................................

121,392

Total

investment

income

...................................................................

63,013,543

Expenses:

Management

fees

(Note

3

a

)

...................................................................

16,534,978

Interest

expens

e

...........................................................................

2,873

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

6,573,438

    Class

C

................................................................................

1,034,808

    Class

R

................................................................................

21,685

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

2,627,801

    Class

C

................................................................................

103,549

    Class

R

................................................................................

4,339

    Class

R6

...............................................................................

495

    Advisor

Class

............................................................................

110,155

Custodian

fees

(Note

4

)

......................................................................

111,851

Reports

to

shareholders

fees

..................................................................

20,420

Registration

and

filing

fees

....................................................................

117,203

Professional

fees

...........................................................................

20,058

Trustees'

fees

and

expenses

..................................................................

31,825

Other

....................................................................................

90,002

Total

expenses

.........................................................................

27,405,480

Expense

reductions

(Note

4

)

...............................................................

(659)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(1,109,507)

Net

expenses

.........................................................................

26,295,314

Net

investment

income

................................................................

36,718,229

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

51,581,484

Foreign

currency

transactions

................................................................

313,471

Forward

exchange

contracts

.................................................................

45,148,698

Net

realized

gain

(loss)

..................................................................

97,043,653

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(460,806,129)

Non-controlled

affiliates

(Not

e

3f)

............................................................

(13,129,437)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

74,433

Forward

exchange

contracts

.................................................................

(38,995,525)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(512,856,658)

Net

realized

and

unrealized

gain

(loss)

............................................................

(415,813,005)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(379,094,776)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

Franklin

Global

Allocation

Fund

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$36,718,229

$42,330,905

Net

realized

gain

(loss)

.................................................

97,043,653

(53,828,111)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(512,856,658)

373,259,721

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(379,094,776)

361,762,515

Distributions

to

shareholders:

Class

A

.............................................................

(106,716,361)

(24,497,459)

Class

C

.............................................................

(3,250,769)

(862,058)

Class

R

.............................................................

(156,511)

(36,556)

Class

R6

............................................................

(36,753)

(4,892)

Advisor

Class

........................................................

(4,736,101)

(1,127,709)

Total

distributions

to

shareholders

..........................................

(114,896,495)

(26,528,674)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(133,699,940)

(250,680,505)

Class

C

.............................................................

(28,759,274)

(87,521,338)

Class

R

.............................................................

(567,930)

(258,119)

Class

R6

............................................................

628,289

(118,494)

Advisor

Class

........................................................

(4,651,727)

(12,734,380)

Total

capital

share

transactions

............................................

(167,050,582)

(351,312,836)

Net

increase

(decrease)

in

net

assets

...................................

(661,041,853)

(16,078,995)

Net

assets:

Beginning

of

year

.......................................................

3,266,369,005

3,282,448,000

End

of

year

...........................................................

$2,605,327,152

$3,266,369,005

Franklin

Fund

Allocator

Series

29

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

Franklin

Global

Allocation

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds.

The

Trust

follows the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

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.

Franklin

Global

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

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.

The

following

summarizes

the Fund’s

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

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,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Fund’s

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Fund’s pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund’s net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

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

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

30

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund’s

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund’s

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund’s

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

December

31,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund’s

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund’s

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

31

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund,

if

any,

is

held

in

segregated

accounts

with

the

Fund’s

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

9

regarding

other

derivative

information.

d.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims).

Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

EU

reclaims

received

by

the

Fund,

if

any,

reduce

the

amount

of

foreign

taxes

Fund

shareholders

can

use

as

tax

deductions

or

credits

on

their

income

tax

returns.

In

the

event

that

EU

reclaims

received

by

the

Fund

during

a

fiscal

year

exceed

foreign

withholding

taxes

paid

by

the

Fund,

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

32

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

and

the

Fund

previously

passed

through

to

its

shareholders

foreign

taxes

incurred

by

the

Fund

to

be

used

as

a

credit

or

deduction

on

a

shareholder’s

income

tax

return,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund's

shareholders.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2022,

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.

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.  

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

interest

income

in

the

Statement

of

Operations.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

33

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

trustees

of

the

following

subsidiaries:

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

7,094,859

$95,572,611

11,023,554

$157,462,459

Shares

issued

in

reinvestment

of

distributions

..........

8,057,770

102,184,037

1,637,763

23,452,834

Shares

redeemed

...............................

(24,651,356)

(331,456,588)

(30,483,052)

(431,595,798)

Net

increase

(decrease)

..........................

(9,498,727)

$(133,699,940)

(17,821,735)

$(250,680,505)

Class

C

Shares:

Shares

sold

...................................

777,416

$10,368,466

1,088,356

$15,258,728

Shares

issued

in

reinvestment

of

distributions

..........

256,144

3,218,338

60,094

854,542

Shares

redeemed

a

..............................

(3,182,498)

(42,346,078)

(7,308,840)

(103,634,608)

Net

increase

(decrease)

..........................

(2,148,938)

$(28,759,274)

(6,160,390)

$(87,521,338)

Class

R

Shares:

Shares

sold

...................................

27,257

$361,197

22,067

$312,126

Shares

issued

in

reinvestment

of

distributions

..........

12,261

155,961

2,536

36,440

Shares

redeemed

...............................

(79,784)

(1,085,088)

(43,174)

(606,685)

Net

increase

(decrease)

..........................

(40,266)

$(567,930)

(18,571)

$(258,119)

Class

R6

Shares:

Shares

sold

...................................

78,093

$1,075,723

6,772

$102,066

Shares

issued

in

reinvestment

of

distributions

..........

2,360

30,825

273

4,032

Shares

redeemed

...............................

(34,142)

(478,259)

(15,369)

(224,592)

Net

increase

(decrease)

..........................

46,311

$628,289

(8,324)

$(118,494)

Advisor

Class

Shares:

Shares

sold

...................................

1,413,291

$19,566,458

1,374,798

$19,709,294

Shares

issued

in

reinvestment

of

distributions

..........

337,358

4,313,476

70,480

1,016,321

Shares

redeemed

...............................

(2,125,026)

(28,531,661)

(2,354,441)

(33,459,995)

Net

increase

(decrease)

..........................

(374,377)

$(4,651,727)

(909,163)

$(12,734,380)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

34

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

December

31,

2022,

the

gross

effective

investment

management

fee

rate

was 0.580%

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

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

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:

Annualized

Fee

Rate

Net

Assets

0.600%

Up

to

and

including

$1

billion

0.570%

Over

$1

billion,

up

to

and

including

$5

billion

0.550%

In

excess

of

$5

billion

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$108,203

CDSC

retained

..............................................................................

$7,210

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

35

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

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

December

31,

2022,

the

Fund

paid

transfer

agent

fees

of

$2,846,339,

of

which

$1,217,022

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

December

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

interest

expense, distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.73%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Global

Allocation

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.782%

$

137,626,130

$

407,823,514

$

(513,808,655)

$

—

$

—

$

31,640,989

31,640,989

$

1,944,542

Templeton

Global

Bond

Fund,

Class

R6

...............

119,997,766

6,184,327

—

—

(13,129,437)

113,052,656

14,401,612

6,184,327

Total

Affiliated

Securities

...

$257,623,896

$414,007,841

$(513,808,655)

$—

$(13,129,437)

$144,693,645

$8,128,869

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

36

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

year

ended

December

31,

2022,

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

During

the

year

ended

December

31,

2022,

the

following

Fund

utilized

$51,896,908

of

capital

loss

carryforwards.

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2022,

the

Fund

deferred

late-year

ordinary

losses

of

$23,584,955.

The

tax

character

of

distributions

paid

during

the

years

ended

December

31,

2022

and

2021,

was

as

follows:

At

December

31,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

bond

discounts

and

premiums,

tax

straddles,

and

corporate

actions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2022,

aggregated $409,372,790

and

$625,553,830,

respectively.

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$55,098,879

2022

2021

Distributions

paid

from:

Ordinary

income

..........................................................

$114,896,495

$26,528,674

Cost

of

investments

..........................................................................

$2,719,102,103

Unrealized

appreciation

........................................................................

$188,723,366

Unrealized

depreciation

........................................................................

(394,509,892)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(205,786,526)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

37

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

7.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Other

Derivative

Information

At

December

31,

2022,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statement

of

Assets

and

Liabilities

as

follows:

For

the

year

ended

December

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2022,

the

average

month

end

contract

value

of

forward

exchange

contracts

was

$476,101,482.

At

December

31,

2022,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Global

Allocation

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

104,834

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

36,509,017

Total

....................

$104,834

$36,509,017

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Global

Allocation

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

$45,148,698

Forward

exchange

contracts

$(38,995,525)

Total

.......................

$45,148,698

$(38,995,525)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

At

December

31,

2022,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

At

December

31,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Franklin

Global

Allocation

Fund

Derivatives

Forward

exchange

contracts

.............................

$

104,834

$

36,509,017

Total

.............................................

$104,834

$36,509,017

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Franklin

Global

Allocation

Fund

Counterparty

BZWS

...................

$—

$—

$—

$—

$—

HSBK

...................

104,834

—

—

—

104,834

JPHQ

...................

—

—

—

—

—

Total

...................

$104,834

$—

$

—

$—

$104,834

$

1

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

a

Net

Amount

(Not

less

than

zero)

Franklin

Global

Allocation

Fund

Counterparty

BZWS

...................

$15,281,401

$—

$—

$(14,690,810)

$590,591

HSBK

...................

—

—

—

—

—

JPHQ

...................

21,227,616

—

—

(17,690,000)

3,537,616

Total

...................

$36,509,017

$—

$—

$(32,380,810)

$4,128,207

9.

Other

Derivative

Information

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

See

Note

1(c) regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

41

.

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

 Statement

of

Operations.

During

the

year

ended

December

31,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

December

31,

2022,

in

valuing

the

Fund's

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

a

In

some

instances,

the

collateral

amounts

disclosed

in

the

table

above

were

adjusted

due

to

the

requirement

to

limit

the

collateral

amounts

to

avoid

the

effect

of

overcollateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

18,165,600

$

—

$

—

$

18,165,600

Air

Freight

&

Logistics

...................

11,230,064

4,678,115

—

15,908,179

Automobiles

..........................

—

23,026,325

—

23,026,325

9.

Other

Derivative

Information

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Banks

...............................

$

93,225,017

$

19,148,735

$

—

$

112,373,752

Beverages

...........................

27,575,409

—

—

27,575,409

Biotechnology

.........................

22,463,790

—

—

22,463,790

Building

Products

......................

8,454,927

—

—

8,454,927

Capital

Markets

........................

32,083,370

3,523,606

—

35,606,976

Chemicals

...........................

14,351,920

8,714,832

—

23,066,752

Communications

Equipment

..............

5,359,500

—

—

5,359,500

Diversified

Telecommunication

Services

.....

12,273,100

—

—

12,273,100

Electric

Utilities

........................

24,870,550

12,650,754

—

37,521,304

Electrical

Equipment

....................

—

5,547,105

—

5,547,105

Electronic

Equipment,

Instruments

&

Components

........................

10,676,400

—

—

10,676,400

Entertainment

.........................

10,629,660

8,448,466

—

19,078,126

Equity

Real

Estate

Investment

Trusts

(REITs)

.

25,429,690

—

—

25,429,690

Food

&

Staples

Retailing

.................

7,685,018

—

—

7,685,018

Food

Products

........................

9,897,525

15,897,974

—

25,795,499

Health

Care

Equipment

&

Supplies

.........

11,961,108

—

—

11,961,108

Health

Care

Providers

&

Services

..........

33,210,698

—

—

33,210,698

Hotels,

Restaurants

&

Leisure

.............

13,967,090

—

—

13,967,090

Household

Durables

....................

—

15,741,989

—

15,741,989

Household

Products

....................

20,915,280

—

—

20,915,280

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

5,525,708

—

5,525,708

Industrial

Conglomerates

................

15,001,000

20,182,907

—

35,183,907

Insurance

............................

25,060,635

22,037,314

—

47,097,949

Interactive

Media

&

Services

..............

36,336,880

18,822,823

—

55,159,703

Internet

&

Direct

Marketing

Retail

..........

37,400,148

2,983,015

—

40,383,163

IT

Services

...........................

29,299,501

12,261,019

—

41,560,520

Life

Sciences

Tools

&

Services

............

18,073,120

—

—

18,073,120

Machinery

............................

20,566,056

8,850,612

—

29,416,668

Marine

..............................

—

7,834,666

—

7,834,666

Media

...............................

7,612,969

—

—

7,612,969

Metals

&

Mining

.......................

21,296,555

51,923,258

—

73,219,813

Multiline

Retail

........................

17,875,920

—

—

17,875,920

Multi-Utilities

..........................

9,198,000

—

—

9,198,000

Oil,

Gas

&

Consumable

Fuels

.............

48,900,337

21,786,055

—

70,686,392

Pharmaceuticals

.......................

44,771,450

36,175,706

—

80,947,156

Road

&

Rail

..........................

25,779,834

—

—

25,779,834

Semiconductors

&

Semiconductor

Equipment

.

92,658,090

11,602,256

—

104,260,346

Software

.............................

96,692,277

—

—

96,692,277

Specialty

Retail

........................

56,717,091

—

—

56,717,091

Technology

Hardware,

Storage

&

Peripherals

.

32,482,500

8,815,563

—

41,298,063

Textiles,

Apparel

&

Luxury

Goods

..........

11,115,950

—

—

11,115,950

Trading

Companies

&

Distributors

..........

—

9,722,220

—

9,722,220

Wireless

Telecommunication

Services

.......

—

12,681,392

—

12,681,392

Management

Investment

Companies

.........

211,639,206

—

—

211,639,206

Corporate

Bonds

........................

—

265,385,514

—

265,385,514

Foreign

Government

and

Agency

Securities

....

—

269,107,875

—

269,107,875

U.S.

Government

and

Agency

Securities

.......

—

229,488,401

—

229,488,401

Mortgage-Backed

Securities

................

—

45,268,582

—

45,268,582

Short

Term

Investments

...................

31,640,989

67,342,748

—

98,983,737

Total

Investments

in

Securities

...........

$1,304,544,224

$1,245,175,535

a

$—

$2,549,719,759

11.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

Franklin

Global

Allocation

Fund

(continued)

12.

New

Accounting

Pronouncements

In June

2022,

the FASB

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

(continued)

Assets:

(continued)

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

104,834

$

—

$

104,834

Total

Other

Financial

Instruments

.........

$—

$104,834

$—

$104,834

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

36,509,017

$

—

$

36,509,017

Total

Other

Financial

Instruments

.........

$—

$36,509,017

$—

$36,509,017

a

Includes

foreign

securities

valued

at

$368,582,415,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Counterparty

BZWS

Barclays

Bank

plc

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

AUD

Australian

Dollar

CAD

Canadian

Dollar

CNY

Chinese

Yuan

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

Selected

Portfolio

ADR

American

Depositary

Receipt

ETF

Exchange-Traded

Fund

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

PIK

Payment-In-Kind

11.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Report

of

Independent

Registered

Public

Accounting

Firm

42

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Fund

Allocator

Series

and

Shareholders

of

Franklin

Global

Allocation

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Global

Allocation

Fund

(one

of

the

funds

constituting

Franklin

Fund

Allocator

Series,

referred

to

hereafter

as

the

“Fund”)

as

of

December

31,

2022,

the

related

statement

of

operations

for

the

year

ended

December

31,

2022,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2022,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

December

31,

2022

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

December

31,

2022

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2022

by

correspondence

with

the

custodian

and

transfer

agent.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

February

17,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Fund

Allocator

Series

Tax

Information

(unaudited)

43

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2022:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$19,700,487

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$44,748,925

Section

163(j)

Interest

Earned

§163(j)

$17,113,148

Interest

Earned

from

Federal

Obligations

Note

(1)

$6,744,883

Franklin

Fund

Allocator

Series

Board

Members

and

Officers

44

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1995

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

120

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Fund

Allocator

Series

45

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

120

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

120

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

120

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-

2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

46

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

111

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),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

Since

January

2023

and

Trustee

since

2007

131

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

2013

120

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Fund

Allocator

Series

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*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Distributors,

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

620

Eighth

Avenue

New

York,

NY

10018

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

-

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

48

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

49

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

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.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

481

A

02/23

©

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

Global

Allocation

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.      

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $290,349 for the fiscal year ended December 31, 2022 and $286,608 for the fiscal year ended December 31, 2021.

(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 $70,000 for the fiscal year ended December 31, 2022 and $0 for the fiscal year ended December 31, 2021. 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 December 31, 2022 and $4,310 for the fiscal year ended December 31, 2021. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $240,211 for the fiscal year ended December 31, 2022 and $90,743 for the fiscal year ended December 31, 2021. The services for which these fees were paid included benchmarking services in connection with the ICI TA Survey, professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional fees in connection with SOC 1 Reports, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint and fees in connection with a license for employee development tool ProEdge. 

(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 $310,211 for the fiscal year ended December 31, 2022 and $95,053 for the fiscal year ended December 31, 2021.

(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

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(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

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN FUND ALLOCATOR SERIES

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  February 27, 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  February 27, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  February 27, 2023