fhitncsr.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number_811-01608

Franklin High Income Trust
(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)

_Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)

Registrant's telephone number, including area code: _650 312-2000

Date of fiscal year end: 5/31

Date of reporting period: 5/31/10

Item 1. Reports to Stockholders.



		Franklin Templeton Investments

		Gain From Our Perspective^®

		Franklin Templeton’s distinct multi-manager structure combines the specialized expertise of three world-class investment management groups— Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE		Each of our portfolio management groups operates autonomously, relying on its own research and staying true to the unique investment disciplines that underlie its success.

		Franklin. Founded in 1947, Franklin is a recognized leader in fixed income investing and also brings expertise in growth- and value-style U.S. equity investing.

		Templeton. Founded in 1940, Templeton pioneered international investing and, in 1954, launched what has become the industry’s oldest global fund. Today, with offices in over 25 countries, Templeton offers investors a truly global perspective.

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

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

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

Not part of the annual report

Contents



Shareholder Letter			1
Annual Report
Franklin High Income Fund			3
Performance Summary			8
Your Fund’s Expenses			13
Financial Highlights and Statement of Investments			15
Financial Statements			30
Notes to Financial Statements			34
Report of Independent Registered Public Accounting Firm			48
Tax Designation			49
Board Members and Officers			50
Shareholder Information			55

Shareholder Letter

Dear Shareholder:

During the year ended May 31, 2010, the U.S. economy showed signs of an increasingly broad-based expansion while interest rates remained near all-time lows and inflation was muted. Although corporate and global economic data underscored some weak spots amid short-term improvements, by fourth quarter 2009 and into 2010, most companies beat consensus earnings estimates, aided by government incentives and a wave of restructuring and cost-cutting initiatives. U.S. equity markets enjoyed an unusually strong rally until first quarter 2010, when volatility returned as investors began to heed signs of overvaluation. In addition, concerns about some European countries’ creditworthiness contributed to significant market uncertainty. Investors also questioned the global recovery’s sustainability as some government stimulus measures began to wind down. During the period, U.S. Treasury yields rose and fell in response to wavering investor sentiment. The yield curve reached historically steep levels during the first quarter of 2010 and flattened only slightly by period-end.

We think it is important to put short-term market developments in perspective. Keep in mind we have navigated through past periods of high market volatility by remaining committed to our long-term perspective and disciplined investment philosophy. Although conditions remain challenging, our experience gives us reason to be optimistic about the potential for future market stabilization and economic recovery.

Franklin High Income Fund’s annual report goes into greater detail about prevailing conditions during the period under review. In addition, you will find performance data, financial information and a discussion about our investment decisions. Please remember that all securities markets fluctuate, as do mutual fund share prices.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Not part of the annual report | 1

If you would like more frequent updates, franklintempleton.com provides daily prices, monthly performance figures, portfolio holdings and other information. You can also access your account, buy and sell shares, and find helpful financial planning tools. We hope you will take advantage of these online services.

Although market conditions are constantly changing, we remain committed to our disciplined strategy as we manage the Fund, keeping in mind the trust you have placed in us. As always, we recommend investors consult their financial advisors and review their portfolios to design a long-term strategy and portfolio allocation that meet their individual needs, goals and risk tolerance. We firmly believe that most people benefit from professional advice, and that advice is invaluable as investors navigate current market conditions.

We thank you for investing with Franklin Templeton, welcome your questions and comments, and look forward to serving your investment needs in the years ahead.

Sincerely,

Christopher J. Molumphy, CFA
President and Chief Executive Officer – Investment Management
Franklin High Income Trust

CFA^{^®}is a trademark owned by CFA Institute.

This letter reflects our analysis and opinions as of May 31, 2010. 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.

2 | Not part of the annual report

Annual Report

Franklin High Income Fund

Your Fund’s Goals and Main Investments: Franklin High Income Fund seeks a high level of current income, with a secondary goal of capital appreciation, by investing substantially in high yield, lower rated debt securities and preferred stocks.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. Please visit franklintempleton.com or call (800) 342-5236 for most recent month-end performance.

This annual report for Franklin High Income Fund covers the fiscal year ended May 31, 2010.

Performance Overview

Franklin High Income Fund – Class A delivered a +23.50% cumulative total return for the 12 months under review. The Fund underperformed its benchmark, the Credit Suisse (CS) High Yield Index, which posted a +29.96% total return, and its peers, as measured by the Lipper High Current Yield Funds Classification Average, which had a +26.17% total return for the same period.¹You can find the Fund’s long-term performance data in the Performance Summary beginning on page 8.

Economic and Market Overview

The U.S. economy improved during the 12-month reporting period as corporate profits, manufacturing, consumer spending, consumer confidence and exports showed gains. The nation’s economic activity as measured by gross domestic product registered annualized quarterly rates of -0.7%, 2.2% and 5.6% in the last three quarters of 2009, and an estimated 2.7% in 2010’s first quarter. Remaining challenges to sustained economic recovery included

1. Source: ^© 2010 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The CS High Yield Index is designed to mirror the investible universe of the U.S. dollar-denominated high yield debt market.

Source: Lipper Inc. The Lipper High Current Yield Funds Classification Average is calculated by averaging the total returns of funds within the Lipper High Current Yield Funds classification in the Lipper Open-End underlying funds universe for the period indicated. Lipper High Current Yield Funds are defined as funds that aim at high (relative) current yield from fixed income securities, have no quality or maturity restrictions, and tend to invest in lower grade debt issues. For the one-year period ended 5/31/10, there were 471 funds in this category. Lipper calculations do not include sales charges but include reinvestment of any income or distributions. Fund performance relative to the average may have differed if these or other factors had been considered.

Indexes are unmanaged and include reinvestment of any income or distributions. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 20.

Annual Report | 3

Asset Allocation
Based on Total Net Assets as of 5/31/10

elevated debt concerns, a struggling housing sector and lack of job prospects for the unemployed as federal stimulus measures began to wind down. The unemployment rate, which peaked at 10.1% in October 2009, dipped to 9.7% by period-end.²

As economic conditions improved, demand for energy products increased and crude oil prices rose from $66 per barrel in May 2009 to $74 at period-end. May’s inflation rate was an annualized 2.0%.² Core inflation, which excludes food and energy costs, rose at a 0.9% annualized rate,² which was below the Federal Reserve Board’s (Fed’s) informal target range of 1.5% to 2.0%. The core personal consumption expenditures price index reported a 12-month increase of 1.3%.³

During the period under review, economic improvement and benign inflation trends prompted Fed policymakers to maintain record-low interest rates and discontinue certain stimulus plans. Noting that it believed the recession had ended, the Fed left the federal funds target rate unchanged at a range of 0% to 0.25% and began laying the groundwork for its exit strategy. The market anticipated an eventual tightening of monetary policy and a gradual phase-out of the Fed’s support and liquidity programs.

Near period-end, investor fears about some European countries’ debt created a period of intense volatility in financial markets. Wary investors favored short-term Treasuries, and the Treasury yield curve reached historically steep levels during the period. The spread between two- and 10-year Treasury yields held steady at 255 basis points (100 basis points equal one percentage point). The two-year Treasury bill yield decreased from 0.92% to 0.76% over the 12-month period, while the 10-year Treasury note yield decreased from 3.47% to 3.31%.

The opening of credit markets during the period allowed many companies to issue bonds to refinance and extend existing balance sheet debt. Largely as a result, over the past year, fears subsided about potentially higher default rates due to an inability to refinance debt, which drove prices higher for corporate debt and equity securities. In addition, cost controls contributed to improved operating margins and year-over-year corporate earnings gains by period-end. Equity market strength, combined with an accommodative Fed and modest decline in longer term interest rates, supported the high yield corporate bond market. Certain merger and acquisition activity and announcements by select private high yield issuers of plans to issue stock in initial public offerings also led to improved pricing for some high yield issuers. During 2009, significant


2.		Source: Bureau of Labor Statistics.

3.		Source: Bureau of Economic Analysis.

4 | Annual Report

Dividend Distributions*
6/1/09–5/31/10


	Dividend per Share
Month	Class A	Class B	Class C	Class R	Advisor Class

June	1.15 cents	1.09 cents	1.09 cents	1.10 cents	1.17 cents
July	1.15 cents	1.09 cents	1.09 cents	1.10 cents	1.17 cents
August	1.15 cents	1.09 cents	1.09 cents	1.10 cents	1.17 cents
September	1.15 cents	1.07 cents	1.07 cents	1.09 cents	1.17 cents
October	1.15 cents	1.07 cents	1.07 cents	1.09 cents	1.17 cents
November	1.15 cents	1.07 cents	1.07 cents	1.09 cents	1.17 cents
December**	2.35 cents	2.27 cents	2.27 cents	2.30 cents	2.37 cents
January	1.15 cents	1.07 cents	1.07 cents	1.10 cents	1.17 cents
February	1.15 cents	1.07 cents	1.07 cents	1.10 cents	1.17 cents
March	1.15 cents	1.07 cents	1.06 cents	1.09 cents	1.17 cents
April	1.15 cents	1.07 cents	1.06 cents	1.09 cents	1.17 cents
May	1.15 cents	1.07 cents	1.06 cents	1.09 cents	1.17 cents

Total	15.00 cents	14.10 cents	14.07 cents	14.34 cents	15.24 cents


*		All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.

**		Includes an additional 1.20 cent per share distribution to meet excise tax requirements.

inflows to high yield mutual funds and increased allocations to the asset class by institutional and multi-sector managers supported high yield bond prices and allowed a very heavy new-issue supply to be absorbed without causing undue pricing pressure on secondary market prices. Largely as a result of these factors, the CS High Yield Index generated a +29.96% total return during the 12 months under review.¹Overall, the yield spread over U.S. Treasury securities declined from 10.7 percentage points at the beginning of the period to 6.9 percentage points by period-end, after hitting a month-end period-low of 5.7 percentage points in April.⁴

Investment Strategy

We are disciplined, fundamental investors who mainly rely on our analysts’ in-depth industry expertise to evaluate companies. We examine sectors and individual securities in detail. When evaluating an issuer’s creditworthiness, we consider the issuer’s experience, managerial strength, sensitivity to economic conditions, credit rating, and current and prospective financial condition.

4. Source: Credit Suisse.

Annual Report | 5

Top 10 Holdings by Issuer*
5/31/10


Company	% of Total
*Sector/Industry*	Net Assets
HCA Inc.		2.4	%
Health Care Equipment & Services

Ford Motor Credit Co. LLC		2.1	%
Automobiles & Components

GMAC LLC		1.8	%
Diversified Financials

MGM Mirage		1.5	%
Consumer Services

Chesapeake Energy Corp.		1.4	%
Energy

Texas Competitive Electric Holdings Co. LLC		1.4	%
Utilities

Harrah’s Operating Co. Inc.		1.4	%
Consumer Services

CIT Group Inc.		1.2	%
Diversified Financials

El Paso Corp.		1.2	%
Energy

Bank of America Corp.		1.1	%
Diversified Financials


*		Securities are listed by issuer, which may appear by another name in the SOI.

Manager’s Discussion

Franklin High Income Fund, despite strong absolute returns, underperformed its Lipper peer group during the fiscal year under review.⁵Although the Fund sought to increase its allocation to higher beta sectors (such as high yield corporate bonds) and securities (including distressed bonds), a somewhat higher quality bias constrained relative performance.

In addition to the overall quality positioning, the Fund’s industry weightings also affected relative performance. For example, overweighted exposure to the broadcasting industry benefited relative results as certain distressed radio and television broadcasting bonds experienced substantial price gains during the Fund’s fiscal year based on an improvement in valuations for those enterprises and, in some cases, a much lower perceived default risk.⁶In addition, the Fund’s somewhat underweighted exposure to the telecommunications industry aided relative results as this more defensive industry lagged the overall market.⁷Finally, an overweighted allocation to the chemicals industry contributed to relative performance.⁸Market expectations that certain chemicals companies may experience year-over-year earnings improvements in 2010 after a very difficult 2009 operating environment, combined with certain issuers’ ability to access public bond markets for refinancing, helped this industry to outperform the overall market.

Detractors from relative performance included underweighted positions in certain higher beta industries. For example, the information technology sector was hard hit by the economic downturn, but it began to see a rebound in 2010, driven first by inventory restocking and then by improving demand in certain segments.⁹Consequently, certain distressed issues from this sector experienced significant rebounds during the 12 months under review. As a result, the Fund’s underweighted positioning detracted from relative performance. Overweighted exposure to the lower beta utilities sector was also a drag on relative results during the period, partly because of the sector’s generally defensive nature. In addition, continued weakness in natural gas prices contributed to challenging outlooks for coal-based independent power producers, which benefit from higher prices. Similarly, the Fund’s heavier exposure to the energy sector also negatively affected relative performance. The sector is generally composed of

5. For industry weighting comparisons, the Fund’s peer group comprises some of the mutual funds found within the Lipper High Current Yield Funds Classification Average. See footnote 1 for a description of the Lipper Average.

6. The broadcasting industry is part of media in the SOI.

7. The telecommunications industry is part of telecommunication services in the SOI.

8. The chemicals industry is part of materials in the SOI.

9. The information technology sector comprises semiconductors and semiconductor equipment, software and services, and technology hardware and equipment in the SOI.

6 | Annual Report

lower beta, higher quality issues that may lag during periods of strong market returns. Additionally, the recent Gulf of Mexico oil spill and resulting broad-based price declines for most energy company stocks pressured various high yield energy issues toward period-end.

The high yield market experienced some pressure in May amid mutual fund outflows and as global risk aversion increased along with fiscal concerns in Europe, the Gulf of Mexico oil spill and weaker equity markets. Nonetheless, many analysts’ expectations for improved corporate earnings and a declining default rate through 2010 provided some support for the high yield asset class’s fundamental outlook, despite challenging conditions. At period-end, valuations for high yield corporate bonds were somewhat cheap compared to the long-term average, offering what we believed were certain attractive investment opportunities.

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



		Christopher J. Molumphy, CFA Senior Portfolio Manager



		Eric G. Takaha, CFA Portfolio Manager Franklin High Income Fund

The foregoing information reflects our analysis, opinions and portfolio holdings as of May 31, 2010, 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.

Annual Report | 7

Performance Summary as of 5/31/10

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities. The performance table 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.

Price and Distribution Information


Class A (Symbol: FHAIX)			Change		5/31/10		5/31/09
Net Asset Value (NAV)				+$0.23	$	1.89	$	1.66
Distributions (6/1/09–5/31/10)
Dividend Income	$	0.1500


Class B (Symbol: FHIBX)			Change		5/31/10		5/31/09
Net Asset Value (NAV)				+$0.22	$	1.88	$	1.66
Distributions (6/1/09–5/31/10)
Dividend Income	$	0.1410


Class C (Symbol: FCHIX)			Change		5/31/10		5/31/09
Net Asset Value (NAV)				+$0.23	$	1.90	$	1.67
Distributions (6/1/09–5/31/10)
Dividend Income	$	0.1407


Class R (Symbol: FHIRX)			Change		5/31/10		5/31/09
Net Asset Value (NAV)				+$0.23	$	1.91	$	1.68
Distributions (6/1/09–5/31/10)
Dividend Income	$	0.1434


Advisor Class (Symbol: FVHIX)			Change		5/31/10		5/31/09
Net Asset Value (NAV)				+$0.23	$	1.89	$	1.66
Distributions (6/1/09–5/31/10)
Dividend Income	$	0.1524

Performance

Cumulative total return excludes sales charges. Average annual total returns and value of $10,000 investment include maximum sales charges. Class A: 4.25% maximum initial sales charge; Class B: contingent deferred sales charge (CDSC) declining from 4% to 1% over six years, and eliminated thereafter; Class C: 1% CDSC in first year only; Class R/Advisor Class: no sales charges.


Class A			1-Year			5-Year			10-Year
Cumulative Total Return¹				+23.50	%		+34.58	%		+93.46	%
Average Annual Total Return²				+18.50	%		+5.23	%		+6.37	%
Value of $10,000 Investment³			$	11,850		$	12,902		$	18,540
Avg. Ann. Total Return (6/30/10)⁴				+15.69	%		+5.15	%		+6.21	%
Distribution Rate⁵	7.01	%
30-Day Standardized Yield⁶	6.86	%
Total Annual Operating Expenses⁷	0.80	%

8 | Annual Report

Performance Summary (continued)

Performance (continued)


Class B			1-Year			5-Year			10-Year
Cumulative Total Return¹				+22.27	%		+31.28	%		+85.12	%
Average Annual Total Return²				+18.27	%		+5.30	%		+6.25	%
Value of $10,000 Investment³			$	11,827		$	12,948		$	18,512
Avg. Ann. Total Return (6/30/10)⁴				+17.27	%		+5.23	%		+6.19	%
Distribution Rate⁵	6.83	%
30-Day Standardized Yield⁶	6.69	%
Total Annual Operating Expenses⁷	1.30	%

Class C			1-Year			5-Year			10-Year
Cumulative Total Return¹				+22.74	%		+30.99	%		+83.35	%
Average Annual Total Return²				+21.74	%		+5.55	%		+6.25	%
Value of $10,000 Investment³			$	12,174		$	13,099		$	18,335
Avg. Ann. Total Return (6/30/10)⁴				+20.02	%		+5.57	%		+6.14	%
Distribution Rate⁵	6.69	%
30-Day Standardized Yield⁶	6.69	%
Total Annual Operating Expenses⁷	1.30	%

Class R			1-Year			5-Year			Inception (1/1/02)
Cumulative Total Return¹				+22.78	%		+32.54	%		+89.03	%
Average Annual Total Return²				+22.78	%		+5.80	%		+7.87	%
Value of $10,000 Investment³			$	12,278		$	13,254		$	18,903
Avg. Ann. Total Return (6/30/10)⁴				+20.46	%		+5.61	%		+7.93	%
Distribution Rate⁵	6.85	%
30-Day Standardized Yield⁶	6.83	%
Total Annual Operating Expenses⁷	1.15	%

Advisor Class			1-Year			5-Year			10-Year
Cumulative Total Return¹				+23.65	%		+35.50	%		+96.05	%
Average Annual Total Return²				+23.65	%		+6.26	%		+6.96	%
Value of $10,000 Investment³			$	12,365		$	13,550		$	19,605
Avg. Ann. Total Return (6/30/10)⁴				+21.93	%		+6.29	%		+6.85	%
Distribution Rate⁵	7.43	%
30-Day Standardized Yield⁶	7.35	%
Total Annual Operating Expenses⁷	0.65	%

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.

Annual Report | 9

Performance Summary (continued)

Average Annual Total Return


Advisor Class	5/31/10
1-Year		+23.65	%
5-Year		+6.26	%
10-Year		+6.96	%

Endnotes

The risks associated with higher yielding, lower rated securities include higher risk of default and loss of principal. Investment in foreign securities also involves special risks, including currency fluctuations, and political and economic uncertainty. In addition, interest rate movements will affect the Fund’s share price and yield. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. The Fund’s prospectus also includes a description of the main investment risks.



Class B:		These shares have higher annual fees and expenses than Class A shares.

Class C:		Prior to 1/1/04, these shares were offered with an initial sales charge; thus actual total returns would have differed. These shares have higher annual fees and expenses than Class A shares.

Class R:		Shares are available to certain eligible investors as described in the prospectus. These shares have higher annual fees and expenses than Class A shares.

Advisor Class:		Shares are available to certain eligible investors as described in the prospectus.

1. Cumulative total return represents the change in value of an investment over the periods indicated.

2. Average annual total return represents the average annual change in value of an investment over the periods indicated.

3. These figures represent the value of a hypothetical $10,000 investment in the Fund over the periods indicated.

4. In accordance with SEC rules, we provide standardized average annual total return information through the latest calendar quarter.

5. Distribution rate is based on an annualization of the respective class’s May dividend and the maximum offering price (NAV for Classes B, C, R and Advisor) per share on 5/31/10.

6. The 30-day standardized yield for the 30 days ended 5/31/10 reflects an estimated yield to maturity (assuming all portfolio securities are held to maturity). It should be regarded as an estimate of the Fund’s rate of investment income, and it may not equal the Fund’s actual income distribution rate (which reflects the Fund’s past dividends paid to shareholders) or the income reported in the Fund’s financial statements.

7. Figures are as stated in the Fund’s prospectus current as of the date of this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

8. Sources: ^© 2010 Morningstar; Lipper Inc. The CS High Yield Index is designed to mirror the investable universe of the U.S. dollar denominated high yield debt market. The Lipper High Current Yield Funds Classification Average is calculated by averaging the total returns of funds within the Lipper High Current Yield Funds classification in the Lipper Open-End underlying funds universe for the period indicated. Lipper High Current Yield Funds are defined as funds that aim at high (relative) current yield from fixed income securities, have no quality or maturity restrictions, and tend to invest in lower grade debt issues. For the period ended 5/31/10, there were 471 funds in this category. Lipper calculations do not include sales charges.

12 | Annual Report

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs:

•

Transaction costs, including sales charges (loads) on Fund purchases; and

•

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 following table shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The first line (Actual) for each share class listed in the table provides actual account values and expenses. The “Ending Account Value” is derived from the Fund’s actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these steps. Of course, your account value and expenses will differ from those in this illustration:

1.		Divide your account value by $1,000. If an account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6.

2.		Multiply the result by the number under the heading “Expenses Paid During Period.” If Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Information in the second line (Hypothetical) for each class in the table can help you compare ongoing costs of investing in the Fund with those of other mutual funds. This information may not be used to estimate the actual ending account balance or expenses you paid during the period. The hypothetical “Ending Account Value” is based on the actual expense ratio for each class and an assumed 5% annual rate of return before expenses, which does not represent the Fund’s actual return. The figure under the heading “Expenses Paid During Period” shows the hypothetical expenses your account would have incurred under this scenario. You can compare this figure with the 5% hypothetical examples that appear in shareholder reports of other funds.

Annual Report | 13

Your Fund’s Expenses (continued)

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transaction costs, such as sales charges. Therefore, the second line for each class is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transaction costs were included, your total costs would have been higher. Please refer to the Fund prospectus for additional information on operating expenses.


	Beginning Account		Ending Account		Expenses Paid During
	Value 12/1/09		Value 5/31/10		*Period 12/1/09–5/31/10**
Class A
Actual	$	1,000	$	1,048.80	$	3.78
Hypothetical (5% return before expenses)	$	1,000	$	1,021.24	$	3.73
Class B
Actual	$	1,000	$	1,040.80	$	6.31
Hypothetical (5% return before expenses)	$	1,000	$	1,018.75	$	6.24
Class C
Actual	$	1,000	$	1,040.30	$	6.36
Hypothetical (5% return before expenses)	$	1,000	$	1,018.70	$	6.29
Class R
Actual	$	1,000	$	1,046.50	$	5.61
Hypothetical (5% return before expenses)	$	1,000	$	1,019.45	$	5.54
Advisor Class
Actual	$	1,000	$	1,043.90	$	3.06
Hypothetical (5% return before expenses)	$	1,000	$	1,021.94	$	3.02


*		Expenses are calculated using the most recent six-month expense ratio, annualized for each class (A: 0.74%; B: 1.24%; C: 1.25%; R: 1.10%; and Advisor: 0.60%), multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

14 | Annual Report

Franklin High Income Trust

Financial Highlights

Franklin High Income Fund


	Year Ended May 31,
	2010			2009			2008			2007			2006

Class A
Per share operating performance (for a share outstanding throughout the year)
Net asset value, beginning of year	$	1.66		$	2.01		$	2.17		$	2.08		$	2.09

Income from investment operations^a:
Net investment income^b		0.15			0.14			0.15			0.15			0.15
Net realized and unrealized gains (losses)		0.23			(0.34	)		(0.15	)		0.10			(0.01	)

Total from investment operations		0.38			(0.20	)		—			0.25			0.14

Less distributions from net investment income		(0.15	)		(0.15	)		(0.16	)		(0.16	)		(0.15	)

Redemption fees^c		—			—	^d		—	^d		—	^d		—	^d

Net asset value, end of year	$	1.89		$	1.66		$	2.01		$	2.17		$	2.08


Total return^e		23.50	%		(9.23	)%		0.02	%		12.29	%		6.89	%

Ratios to average net assets
Expenses^f		0.74	%		0.78	%		0.74	%		0.76	%		0.75	%
Net investment income		8.30	%		8.80	%		7.62	%		7.33	%		7.17	%

Supplemental data
Net assets, end of year (000’s)	$	2,286,144		$	1,811,866		$	2,044,744		$	2,278,898		$	2,165,990
Portfolio turnover rate		41.14	%		26.56	%		31.17	%		38.27	%		29.26	%


^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 shares in relation to income earned and/or fluctuating market value of the investments of the Fund.

^b		Based on average daily shares outstanding.

^c		Effective September 1, 2008, the redemption fee was eliminated.

^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 expense reduction rounds to less than 0.01%.

Annual Report | The accompanying notes are an integral part of these financial statements. | 15

Franklin High Income Trust

Financial Highlights (continued)

Franklin High Income Fund


	Year Ended May 31,
	2010			2009			2008			2007			2006

Class B
Per share operating performance (for a share outstanding throughout the year)
Net asset value, beginning of year	$	1.66		$	2.00		$	2.16		$	2.07		$	2.08

Income from investment operations^a:
Net investment income^b		0.14			0.14			0.14			0.14			0.14
Net realized and unrealized gains (losses)		0.22			(0.34	)		(0.15	)		0.09			(0.01	)

Total from investment operations		0.36			(0.20	)		(0.01	)		0.23			0.13

Less distributions from net investment income		(0.14	)		(0.14	)		(0.15	)		(0.14	)		(0.14	)

Redemption fees^c		—			—	^d		—	^d		—	^d		—	^d

Net asset value, end of year	$	1.88		$	1.66		$	2.00		$	2.16		$	2.07


Total return^e		22.27	%		(9.21	)%		(0.51	)%		11.78	%		6.35	%

Ratios to average net assets
Expenses^f		1.25	%		1.28	%		1.25	%		1.26	%		1.25	%
Net investment income		7.79	%		8.30	%		7.11	%		6.83	%		6.67	%

Supplemental data
Net assets, end of year (000’s)	$	48,366		$	67,059		$	114,793		$	164,690		$	184,076
Portfolio turnover rate		41.14	%		26.56	%		31.17	%		38.27	%		29.26	%


^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 shares in relation to income earned and/or fluctuating market value of the investments of the Fund.

^b		Based on average daily shares outstanding.

^c		Effective September 1, 2008, the redemption fee was eliminated.

^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 expense reduction rounds to less than 0.01%.

16 | The accompanying notes are an integral part of these financial statements. | Annual Report

Franklin High Income Trust

Financial Highlights (continued)

Franklin High Income Fund


	Year Ended May 31,
	2010			2009			2008			2007			2006

Class C
Per share operating performance (for a share outstanding throughout the year)
Net asset value, beginning of year	$	1.67		$	2.02		$	2.18		$	2.09		$	2.10

Income from investment operations^a:
Net investment income^b		0.15			0.14			0.15			0.14			0.14
Net realized and unrealized gains (losses)		0.22			(0.35	)		(0.16	)		0.09			(0.01	)

Total from investment operations		0.37			(0.21	)		(0.01	)		0.23			0.13

Less distributions from net investment income		(0.14	)		(0.14	)		(0.15	)		(0.14	)		(0.14	)

Redemption fees^c		—			—	^d		—	^d		—	^d		—	^d

Net asset value, end of year	$	1.90		$	1.67		$	2.02		$	2.18		$	2.09


Total return^e		22.74	%		(9.65	)%		(0.50	)%		11.67	%		6.31	%

Ratios to average net assets
Expenses^f		1.25	%		1.28	%		1.25	%		1.26	%		1.25	%
Net investment income		7.79	%		8.30	%		7.11	%		6.83	%		6.67	%

Supplemental data
Net assets, end of year (000’s)	$	398,292		$	310,399		$	332,785		$	384,421		$	361,701
Portfolio turnover rate		41.14	%		26.56	%		31.17	%		38.27	%		29.26	%


^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 shares in relation to income earned and/or fluctuating market value of the investments of the Fund.

^b		Based on average daily shares outstanding.

^c		Effective September 1, 2008, the redemption fee was eliminated.

^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 expense reduction rounds to less than 0.01%.

Annual Report | The accompanying notes are an integral part of these financial statements. | 17

Franklin High Income Trust

Financial Highlights (continued)

Franklin High Income Fund


	Year Ended May 31,
	2010			2009			2008			2007			2006

Class R
Per share operating performance (for a share outstanding throughout the year)
Net asset value, beginning of year	$	1.68		$	2.02		$	2.19		$	2.09		$	2.10

Income from investment operations^a:
Net investment income^b		0.15			0.14			0.15			0.15			0.14
Net realized and unrealized gains (losses)		0.22			(0.33	)		(0.17	)		0.10			(0.01	)

Total from investment operations		0.37			(0.19	)		(0.02	)		0.25			0.13

Less distributions from net investment income		(0.14	)		(0.15	)		(0.15	)		(0.15	)		(0.14	)

Redemption fees^c		—			—	^d		—	^d		—	^d		—	^d

Net asset value, end of year	$	1.91		$	1.68		$	2.02		$	2.19		$	2.09


Total return^e		22.78	%		(9.01	)%		(0.79	)%		12.33	%		6.45	%

Ratios to average net assets
Expenses^f		1.10	%		1.13	%		1.10	%		1.11	%		1.10	%
Net investment income		7.94	%		8.45	%		7.26	%		6.98	%		6.82	%

Supplemental data
Net assets, end of year (000’s)	$	122,056		$	42,459		$	35,766		$	26,671		$	9,972
Portfolio turnover rate		41.14	%		26.56	%		31.17	%		38.27	%		29.26	%


^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 shares in relation to income earned and/or fluctuating market value of the investments of the Fund.

^b		Based on average daily shares outstanding.

^c		Effective September 1, 2008, the redemption fee was eliminated.

^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 expense reduction rounds to less than 0.01%.

18 | The accompanying notes are an integral part of these financial statements. | Annual Report

Franklin High Income Trust

Financial Highlights (continued)

Franklin High Income Fund


	Year Ended May 31,
	2010			2009			2008			2007			2006

Advisor Class
Per share operating performance (for a share outstanding throughout the year)
Net asset value, beginning of year	$	1.66		$	2.01		$	2.17		$	2.08		$	2.09

Income from investment operations^a:
Net investment income^b		0.16			0.14			0.16			0.16			0.15
Net realized and unrealized gains (losses)		0.22			(0.34	)		(0.16	)		0.09			(0.01	)

Total from investment operations		0.38			(0.20	)		—			0.25			0.14

Less distributions from net investment income		(0.15	)		(0.15	)		(0.16	)		(0.16	)		(0.15	)

Redemption fees^c		—			—	^d		—	^d		—	^d		—	^d

Net asset value, end of year	$	1.89		$	1.66		$	2.01		$	2.17		$	2.08


Total return		23.65	%		(9.12	)%		0.18	%		12.44	%		7.06	%

Ratios to average net assets
Expenses^e		0.60	%		0.63	%		0.60	%		0.61	%		0.60	%
Net investment income		8.44	%		8.95	%		7.76	%		7.48	%		7.32	%

Supplemental data
Net assets, end of year (000’s)	$	189,004		$	149,485		$	56,656		$	56,593		$	43,502
Portfolio turnover rate		41.14	%		26.56	%		31.17	%		38.27	%		29.26	%


^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 shares in relation to income earned and/or fluctuating market value of the investments of the Fund.

^b		Based on average daily shares outstanding.

^c		Effective September 1, 2008, the redemption fee was eliminated.

^d		Amount rounds to less than $0.01 per share.

^e		Benefit of expense reduction rounds to less than 0.01%.

Annual Report | The accompanying notes are an integral part of these financial statements. | 19

Franklin High Income Trust

Statement of Investments, May 31, 2010


Franklin High Income Fund	Country	Principal Amount^a		Value
^b,c Senior Floating Rate Interests 1.9%
Materials 0.6%
Novelis Corp., U.S. Term Loan, 2.30% - 2.54%, 7/07/14	United States		20,585,594	$	19,444,802


Media 0.3%
Univision Communications Inc., Initial Term Loan, 2.54%, 9/29/14	United States		10,000,000		8,620,310


Utilities 1.0%
Dynegy Holdings Inc.,
Term L/C Facility, 4.11%, 4/02/13	United States		13,861,332		13,266,446
Term Loan B, 4.11%, 4/02/13	United States		1,112,983		1,065,218
^d Texas Competitive Electric Holdings Co. LLC, Term Loan, 5.75%, 10/10/14	United States		20,000,000		15,317,860

					29,649,524


Total Senior Floating Rate Interests (Cost $58,829,043)					57,714,636


Corporate Bonds 93.3%
Automobiles & Components 3.0%
^e Cooper-Standard Automotive Inc., senior note, 144A, 8.50%, 5/01/18	United States		10,000,000		9,900,000
Ford Motor Credit Co. LLC, senior note,
7.50%, 8/01/12	United States		35,000,000		35,700,000
7.00%, 4/15/15	United States		18,000,000		17,833,932
8.125%, 1/15/20	United States		10,000,000		10,025,980
^e TRW Automotive Inc., senior note, 144A, 7.25%, 3/15/17	United States		17,000,000		16,575,000

					90,034,912


Banks 0.5%
^f Wells Fargo Capital XIII, pfd., 7.70%, Perpetual	United States		15,000,000		14,850,000


Capital Goods 5.3%
^e Allison Transmission Inc., senior note, 144A, 11.00%, 11/01/15	United States		25,000,000		26,250,000
Arvinmeritor Inc., senior note, 10.625%, 3/15/18	United States		12,000,000		12,330,000
Case New Holland Inc., senior note,
7.125%, 3/01/14	United States		13,400,000		13,467,000
^e 144A, 7.75%, 9/01/13	United States		5,000,000		5,112,500
Greenbrier Cos. Inc., senior note, 8.375%, 5/15/15	United States		7,900,000		7,435,875
L-3 Communications Corp., senior sub. note, 6.125%, 1/15/14	United States		10,000,000		10,250,000
Manitowoc Co. Inc., senior note, 9.50%, 2/15/18	United States		16,500,000		16,293,750
Oshkosh Corp., senior note,
8.25%, 3/01/17	United States		3,500,000		3,622,500
8.50%, 3/01/20	United States		3,200,000		3,328,000
RBS Global & Rexnord Corp.,
^e senior note, 144A, 8.50%, 5/01/18	United States		25,000,000		23,937,500
senior sub. note, 11.75%, 8/01/16	United States		9,100,000		9,555,000
RSC Equipment Rental Inc./RSC Holdings III LLC, senior note,
9.50%, 12/01/14	United States		26,000,000		24,830,000
^e 144A, 10.25%, 11/15/19	United States		4,000,000		3,860,000

					160,272,125

20 | Annual Report

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a		Value
Corporate Bonds (continued)
Commercial & Professional Services 0.9%
^e Geo Group Inc., senior note, 144A, 7.75%, 10/15/17	United States		5,500,000	$	5,472,500
^g,h Goss Graphic Systems Inc., senior sub. note, 12.25%, 11/19/05	United States		9,053,899		905
^e,i JohnsonDiversey Holdings Inc., senior note, 144A, PIK, 10.50%, 5/15/20	United States		19,600,000		22,223,754

					27,697,159


Consumer Durables & Apparel 2.8%
Jarden Corp., senior sub. note, 7.50%, 5/01/17	United States		26,000,000		25,610,000
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12	United States		25,000,000		25,121,875
KB Home, senior note, 6.25%, 6/15/15	United States		20,000,000		18,450,000
Phillips-Van Heusen Corp., senior note, 7.375%, 5/15/20	United States		5,500,000		5,527,500
Standard Pacific Corp., senior note, 8.375%, 5/15/18	United States		10,000,000		9,625,000

					84,334,375


Consumer Services 7.7%
Boyd Gaming Corp., senior sub. note, 6.75%, 4/15/14	United States		8,100,000		7,330,500
^e,h Fontainebleau Las Vegas, 144A, 10.25%, 6/15/15	United States		20,000,000		325,000
Harrah’s Operating Co. Inc., senior secured note, 11.25%, 6/01/17	United States		40,000,000		42,200,000
Host Hotels & Resorts LP, senior note,
K, 7.125%, 11/01/13	United States		10,000,000		10,050,000
Q, 6.75%, 6/01/16	United States		5,000,000		4,925,000
MGM MIRAGE,
senior note, 6.625%, 7/15/15	United States		40,000,000		31,600,000
senior note, 6.875%, 4/01/16	United States		10,000,000		7,700,000
^e senior secured note, 144A, 9.00%, 3/15/20	United States		7,600,000		7,657,000
^e Norwegian Cruise Line Ltd., senior secured note, 144A, 11.75%, 11/15/16	United States		25,000,000		26,875,000
Pinnacle Entertainment Inc.,
^e senior note, 144A, 8.625%, 8/01/17	United States		16,800,000		17,052,000
senior sub. note, 8.25%, 3/15/12	United States		3,876,000		3,876,000
senior sub. note, 7.50%, 6/15/15	United States		9,000,000		8,415,000
Royal Caribbean Cruises Ltd.,
senior deb., 7.25%, 3/15/18	United States		15,000,000		14,475,000
senior note, 6.875%, 12/01/13	United States		2,000,000		1,955,000
^e Shingle Springs Tribal Gaming, senior note, 144A, 9.375%, 6/15/15	United States		11,584,000		9,093,440
Starwood Hotels & Resorts Worldwide Inc., senior note,
6.75%, 5/15/18	United States		15,000,000		14,887,500
7.15%, 12/01/19	United States		5,000,000		4,975,000
^h Station Casinos Inc.,
senior note, 6.00%, 4/01/12	United States		6,950,000		469,125
senior note, 7.75%, 8/15/16	United States		9,575,000		658,281
senior sub. note, 6.50%, 2/01/14	United States		3,400,000		46,750
senior sub. note, 6.875%, 3/01/16	United States		8,400,000		115,500
^e Universal City Development,
senior note, 144A, 8.875%, 11/15/15	United States		18,000,000		17,910,000
senior sub. note, 144A, 10.875%, 11/15/16	United States		2,750,000		2,791,250

					235,382,346

Annual Report | 21

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a		Value
Corporate Bonds (continued)
Diversified Financials 5.6%
^f Bank of America Corp., pfd., sub. bond, M, 8.125%, Perpetual	United States		35,000,000	$	33,950,000
CIT Group Inc., senior secured sub. bond, 7.00%, 5/01/17	United States		40,000,000		36,300,000
GMAC Inc.,
senior note, 6.875%, 9/15/11	United States		35,000,000		35,175,000
senior note, 6.875%, 8/28/12	United States		5,000,000		4,962,500
sub. note, 8.00%, 12/31/18	United States		10,000,000		9,500,000
International Lease Finance Corp., senior note, R, 5.65%, 6/01/14	United States		35,000,000		30,275,000
^f JPMorgan Chase & Co., junior sub. note, 1, 7.90%, Perpetual	United States		15,000,000		15,307,980
^h Lehman Brothers Holdings Inc., senior note,
6.20%, 9/26/14	United States		17,000,000		3,612,500
7.00%, 9/27/27	United States		8,000,000		1,700,000

					170,782,980


Energy 16.6%
^e Antero Resources Finance, senior note, 144A, 9.375%, 12/01/17	United States		20,000,000		19,700,000
^e Arch Coal Inc., senior note, 144A, 8.75%, 8/01/16	United States		4,500,000		4,612,500
Atlas Pipeline Partners LP, senior note,
8.125%, 12/15/15	United States		14,000,000		13,300,000
8.75%, 6/15/18	United States		11,000,000		10,450,000
Berry Petroleum Co., senior note, 10.25%, 6/01/14	United States		10,000,000		10,700,000
Chesapeake Energy Corp., senior note,
9.50%, 2/15/15	United States		5,000,000		5,437,500
6.625%, 1/15/16	United States		10,000,000		10,075,000
6.25%, 1/15/18	United States		27,600,000		27,531,000
Compagnie Generale de Geophysique-Veritas, senior note,
7.50%, 5/15/15	France		15,000,000		14,625,000
9.50%, 5/15/16	France		5,600,000		5,852,515
7.75%, 5/15/17	France		5,000,000		4,775,000
^e Consol Energy Inc., senior note, 144A,
8.00%, 4/01/17	United States		7,400,000		7,557,250
8.25%, 4/01/20	United States		5,700,000		5,849,625
^e Crosstex Energy LP/Crosstex Energy Finance Corp., senior note, 144A, 8.875%, 2/15/18	United States		8,000,000		7,920,000
Denbury Resources Inc., senior sub. note, 8.25%, 2/15/20	United States		9,264,000		9,611,400
El Paso Corp., senior note,
12.00%, 12/12/13	United States		10,000,000		11,600,000
6.875%, 6/15/14	United States		15,000,000		15,114,090
7.00%, 6/15/17	United States		8,500,000		8,345,088
^b Enterprise Products Operating LLC, junior sub. note, FRN, 7.034%, 1/15/68	United States		25,000,000		22,970,225
^e Expro Finance Luxembourg, senior secured note, 144A, 8.50%, 12/15/16	United Kingdom		20,000,000		19,500,000
^e General Maritime Corp., senior note, 144A, 12.00%, 11/15/17	United States		14,200,000		14,501,750
^e Holly Corp., senior note, 144A, 9.875%, 6/15/17	United States		9,250,000		9,388,750
^e Holly Energy Partners LP, senior note, 144A, 8.25%, 3/15/18	United States		13,200,000		13,200,000
^e Linn Energy Corp., senior note, 144A, 8.625%, 4/15/20	United States		20,700,000		20,596,500

22 | Annual Report

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a		Value
Corporate Bonds (continued)
Energy (continued)
Mariner Energy Inc., senior note, 7.50%, 4/15/13	United States		4,750,000	$	4,845,000
MarkWest Energy Partners LP, senior note, 8.75%, 4/15/18	United States		25,000,000		25,375,000
^e Martin Midstream Partners LP, senior note, 144A, 8.875%, 4/01/18	United States		6,900,000		6,693,000
Peabody Energy Corp., senior note,
7.375%, 11/01/16	United States		6,900,000		7,193,250
B, 6.875%, 3/15/13	United States		10,000,000		10,100,000
Penn Virginia Resource, senior note, 8.25%, 4/15/18	United States		5,100,000		5,023,500
Petrohawk Energy Corp., senior note, 10.50%, 8/01/14	United States		21,550,000		22,896,875
^e Petroplus Finance Ltd., senior note, 144A, 6.75%, 5/01/14	Switzerland		19,700,000		17,828,500
Plains Exploration & Production Co., senior note,
10.00%, 3/01/16	United States		3,000,000		3,127,500
7.625%, 6/01/18	United States		27,000,000		25,312,500
Quicksilver Resources Inc., senior note,
8.25%, 8/01/15	United States		20,000,000		19,600,000
11.75%, 1/01/16	United States		2,600,000		2,847,000
9.125%, 8/15/19	United States		5,000,000		5,037,500
^e SandRidge Energy Inc., senior note, 144A,
8.00%, 6/01/18	United States		25,000,000		22,500,000
8.75%, 1/15/20	United States		3,300,000		3,003,000
Teekay Corp., senior note, 8.50%, 1/15/20	Canada		7,000,000		7,105,000
Tesoro Corp., senior note, 6.50%, 6/01/17	United States		25,000,000		22,375,000

					504,075,818


Food & Staples Retailing 0.8%
Rite Aid Corp., senior secured note, 9.75%, 6/12/16	United States		15,700,000		16,740,125
SUPERVALU Inc., senior note, 8.00%, 5/01/16	United States		7,500,000		7,425,000

					24,165,125


Food, Beverage & Tobacco 1.7%
^e CEDC Finance Corp. International Inc., senior secured note, 144A, 9.125%, 12/01/16	United States		15,000,000		14,812,500
Dole Food Co. Inc., senior secured note, 13.875%, 3/15/14	United States		11,171,000		12,958,360
^e JBS USA LLC, senior note, 144A, 11.625%, 5/01/14	United States		23,000,000		25,386,250

					53,157,110


Health Care Equipment & Services 7.3%
Boston Scientific Corp., senior note, 6.00%, 1/15/20	United States		20,000,000		19,394,740
DaVita Inc., senior sub. note, 7.25%, 3/15/15	United States		25,000,000		25,000,000
FMC Finance III SA, senior note, 6.875%, 7/15/17	Germany		15,000,000		15,450,000
HCA Inc.,
senior note, 6.50%, 2/15/16	United States		6,300,000		5,780,250
^e senior secured bond, 144A, 7.25%, 9/15/20	United States		4,300,000		4,300,000
senior secured note, 9.125%, 11/15/14	United States		35,000,000		36,925,000
^e senior secured note, 144A, 7.875%, 2/15/20	United States		15,000,000		15,300,000
ⁱ senior secured note, PIK, 9.625%, 11/15/16	United States		11,000,000		11,605,000
Tenet Healthcare Corp.,
senior note, 7.375%, 2/01/13	United States		9,600,000		9,648,000
^e senior secured note, 144A, 8.875%, 7/01/19	United States		18,800,000		19,810,500

Annual Report | 23

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a		Value
Corporate Bonds (continued)
Health Care Equipment & Services (continued)
United Surgical Partners International Inc., senior sub. note,
8.875%, 5/01/17	United States		8,500,000	$	8,542,500
ⁱ PIK, 9.25%, 5/01/17	United States		14,000,000		13,965,000
^b,i US Oncology Holdings Inc., senior note, PIK, FRN, 7.178%, 3/15/12	United States		25,809,000		23,453,412
Vanguard Health Holding Co. II LLC, senior note, 8.00%, 2/01/18	United States		15,000,000		14,325,000

					223,499,402


Household & Personal Products 0.4%
Cellu Tissue Holdings Inc., senior secured note, 11.50%, 6/01/14	United States		10,900,000		11,772,000


Materials 8.2%
Ball Corp., senior note,
7.125%, 9/01/16	United States		3,400,000		3,502,000
7.375%, 9/01/19	United States		3,400,000		3,459,500
6.75%, 9/15/20	United States		15,500,000		15,151,250
^e Building Materials Corp. of America, senior note, 144A, 7.50%, 3/15/20	United States		10,000,000		9,825,000
CF Industries Holdings Inc., senior note, 6.875%, 5/01/18	United States		10,000,000		10,000,000
Freeport-McMoRan Copper & Gold Inc., senior note, 8.375%, 4/01/17	United States		15,000,000		16,333,860
Huntsman International LLC,
^e senior note, 144A, 5.50%, 6/30/16	United States		1,100,000		962,500
senior sub. note, 7.875%, 11/15/14	United States		25,000,000		24,000,000
^e Ineos Finance PLC, senior secured note, 144A, 9.00%, 5/15/15	United Kingdom		1,700,000		1,691,500
^e Ineos Group Holdings PLC, senior secured note, 144A, 8.50%, 2/15/16	United Kingdom		22,000,000		16,775,000
^e LBI Escrow Corp., senior secured note, 144A, 8.00%, 11/01/17	United States		10,000,000		10,200,000
^e MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17	United States		23,400,000		23,575,500
Nalco Co., senior sub. note, 8.875%, 11/15/13	United States		15,000,000		15,337,500
NewPage Corp., senior secured note, 11.375%, 12/31/14	United States		30,000,000		28,200,000
Novelis Inc., senior note,
7.25%, 2/15/15	Canada		5,900,000		5,559,570
11.50%, 2/15/15	Canada		3,150,000		3,433,500
Owens-Illinois Inc., senior note, 7.80%, 5/15/18	United States		20,000,000		20,475,000
^e Reynolds Group Issuer Inc./LLC/SA, senior note, 144A, 8.50%, 5/15/18	United States		18,300,000		17,476,500
Solo Cup Co.,
senior secured note, 10.50%, 11/01/13	United States		5,100,000		5,214,750
senior sub. note, 8.50%, 2/15/14	United States		20,000,000		18,550,000

					249,722,930


Media 10.5%
^e Cablevision Systems Corp., senior note, 144A, 8.625%, 9/15/17	United States		18,000,000		18,180,000
^e CCH II LLC/CCH II Capital Corp., senior note, 144A, 13.50%, 11/30/16	United States		29,335,118		33,478,704

24 | Annual Report

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a		Value
Corporate Bonds (continued)
Media (continued)
^e CCO Holdings LLC, senior note, 144A, 7.875%, 4/30/18	United States		4,100,000	$	4,043,625
^e Clear Channel Worldwide Holdings Inc., senior note,
A, 144A, 9.25%, 12/15/17	United States		3,000,000		3,052,500
B, 144A, 9.25%, 12/15/17	United States		12,000,000		12,270,000
CSC Holdings Inc., senior deb., 7.625%, 7/15/18	United States		8,000,000		8,120,000
EchoStar DBS Corp., senior note,
7.75%, 5/31/15	United States		5,000,000		5,050,000
7.125%, 2/01/16	United States		25,000,000		24,625,000
Lamar Media Corp., senior sub. note,
6.625%, 8/15/15	United States		17,800,000		16,999,000
B, 6.625%, 8/15/15	United States		10,000,000		9,450,000
Liberty Media Corp., senior note, 5.70%, 5/15/13	United States		20,000,000		20,100,000
LIN Television Corp.,
^e senior note, 144A, 8.375%, 4/15/18	United States		3,800,000		3,771,500
senior sub. note, 6.50%, 5/15/13	United States		15,000,000		14,606,250
^e Media General Inc., senior secured note, 144A, 11.75%, 2/15/17	United States		15,300,000		14,841,000
Quebecor Media Inc., senior note, 7.75%, 3/15/16	Canada		10,000,000		9,675,000
^j Radio One Inc., senior sub. note,
6.375%, 2/15/13	United States		5,000,000		4,250,000
B, 8.875%, 7/01/11	United States		10,000,000		9,225,000
Salem Communications Corp., senior secured note, 9.625%, 12/15/16	United States		8,500,000		8,648,750
^e Sinclair Television Group Inc., senior secured note, 144A, 9.25%, 11/01/17	United States		23,000,000		22,885,000
^e Sitel LLC, senior note, 144A, 11.50%, 4/01/18	United States		15,000,000		13,987,500
^e Univision Communications Inc.,
ⁱ senior note, 144A, PIK, 10.50%, 3/15/15	United States		5,538,781		4,626,189
senior secured note, 144A, 12.00%, 7/01/14	United States		5,000,000		5,400,000
^e UPC Germany GmbH, senior secured bond, 144A, 8.125%, 12/01/17	Germany		14,900,000		14,825,366
^e Virgin Media Secured Finance, senior secured note, 144A, 6.50%, 1/15/18	United Kingdom		12,400,000		12,245,000
WMG Acquisition Corp., senior secured note, 9.50%, 6/15/16	United States		25,000,000		26,000,000

					320,355,384


Pharmaceuticals, Biotechnology & Life Sciences 0.9%
^e Mylan Inc., senior note, 144A, 7.875%, 7/15/20	United States		19,700,000		19,823,125
^e Talecris Biotherapeutics Holdings Corp., senior note, 144A, 7.75%, 11/15/16	United States		9,500,000		9,310,000

					29,133,125


Real Estate 1.2%
FelCor Lodging LP, senior secured note, 10.00%, 10/01/14	United States		21,000,000		21,105,000
Forest City Enterprises Inc., senior note, 7.625%, 6/01/15	United States		15,900,000		14,628,000

					35,733,000

Annual Report | 25

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a		Value
Corporate Bonds (continued)
Retailing 1.6%
Dollar General Corp., senior note, 10.625%, 7/15/15	United States		17,000,000	$	18,615,000
Michaels Stores Inc., senior note, 10.00%, 11/01/14	United States		30,000,000		30,937,500

					49,552,500


Semiconductors & Semiconductor Equipment 1.1%
^e Advanced Micro Devices Inc., senior note, 144A, 8.125%, 12/15/17	United States		6,100,000		6,016,125
Freescale Semiconductor Inc., senior note,
8.875%, 12/15/14	United States		30,000,000		27,150,000
10.125%, 12/15/16	United States		1,700,000		1,377,000

					34,543,125


Software & Services 1.5%
First Data Corp., senior note,
9.875%, 9/24/15	United States		4,000,000		3,240,000
9.875%, 9/24/15	United States		20,000,000		16,300,000
SunGard Data Systems Inc.,
senior note, 9.125%, 8/15/13	United States		11,100,000		11,266,500
senior sub. note, 10.25%, 8/15/15	United States		15,000,000		15,243,750

					46,050,250


Technology Hardware & Equipment 0.8%
Sanmina-SCI Corp.,
^b,e senior note, 144A, FRN, 3.007%, 6/15/14	United States		5,000,000		4,700,000
senior sub. note, 6.75%, 3/01/13	United States		10,000,000		9,700,000
senior sub. note, 8.125%, 3/01/16	United States		10,000,000		9,575,000

					23,975,000


Telecommunication Services 8.9%
Crown Castle International Corp.,
senior bond, 7.125%, 11/01/19	United States		2,100,000		2,047,500
senior note, 9.00%, 1/15/15	United States		15,000,000		15,843,750
^e Digicel Group Ltd., senior note, 144A, 8.875%, 1/15/15	Jamaica		30,000,000		29,175,000
^e Integra Telecom Inc., senior secured note, 144A, 10.75%, 4/15/16	United States		13,500,000		13,095,000
Intelsat Bermuda Ltd., senior note, 11.25%, 6/15/16	Bermuda		20,000,000		21,200,000
Intelsat Subsidiary Holding Co. Ltd., senior note,
8.50%, 1/15/13	Bermuda		25,000,000		25,312,500
^e 144A, 8.875%, 1/15/15	Bermuda		5,000,000		5,050,000
MetroPCS Wireless Inc., senior note, 9.25%, 11/01/14	United States		30,000,000		31,050,000
Millicom International Cellular SA, senior note, 10.00%, 12/01/13	Luxembourg		5,600,000		5,810,000
^e New Communications Holdings, senior note, 144A,
8.25%, 4/15/17	United States		4,300,000		4,278,500
8.50%, 4/15/20	United States		10,000,000		9,900,000
8.75%, 4/15/22	United States		11,100,000		10,961,250
Qwest Communications International Inc., senior note,
7.50%, 2/15/14	United States		10,000,000		9,900,000
B, 7.50%, 2/15/14	United States		15,000,000		14,850,000

26 | Annual Report

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Principal Amount^a			Value
Corporate Bonds (continued)
Telecommunication Services (continued)
^hRSL Communications PLC,
senior discount note, 10.125%, 3/01/08	United Kingdom		44,500,000		$	556,250
senior note, 12.00%, 11/01/08	United Kingdom		6,250,000			78,125
^eSBA Telecommunications Inc., senior note, 144A, 8.25%, 8/15/19	United States		10,350,000			10,841,625
Sprint Nextel Corp., senior note, 8.375%, 8/15/17	United States		30,000,000			29,625,000
^eWind Acquisition Finance SA, senior note, 144A, 12.00%, 12/01/15	Italy		25,000,000			25,875,000
^e,iWind Acquisition Holding, senior secured note, 144A, PIK, 12.25%, 7/15/17	Italy	5,000,000		EUR		5,444,797

						270,894,297


Transportation 1.9%
^eCeva Group PLC, senior secured note, 144A,
11.625%, 10/01/16	United Kingdom		3,700,000			3,875,750
11.50%, 4/01/18	United Kingdom		18,700,000			19,354,500
^eDelta Air Lines Inc., senior secured note, 144A, 9.50%, 9/15/14	United States		20,000,000			20,800,000
^eMarquette Transportation Co. Inc./Finance Corp., senior secured note, 144A, 10.875%, 1/15/17	United States		13,300,000			13,167,000

						57,197,250


Utilities 4.1%
Ameren Corp., senior note, 8.875%, 5/15/14	United States		9,250,000			10,594,488
CMS Energy Corp., senior note, 8.75%, 6/15/19	United States		12,200,000			13,374,579
Dynegy Holdings Inc., senior note, 8.375%, 5/01/16	United States		15,000,000			12,450,000
ESI Tractebel Acquisition Corp., secured note, 7.99%, 12/30/11	United States		3,688,000			3,706,440
^eIntergen NV, senior secured note, 144A, 9.00%, 6/30/17	Netherlands		25,000,000			25,125,000
NRG Energy Inc., senior note,
7.25%, 2/01/14	United States		8,500,000			8,415,000
7.375%, 2/01/16	United States		20,000,000			19,400,000
7.375%, 1/15/17	United States		5,000,000			4,762,500
Texas Competitive Electric Holdings Co. LLC, senior note, A, 10.25%, 11/01/15	United States		40,000,000			27,100,000

						124,928,007


Total Corporate Bonds (Cost $2,869,288,980)						2,842,108,220

		Shares/Warrants
Common Stocks and Other Equity Interests 0.3%
Automobiles & Components 0.0%^k
^l,mCambridge Industries Liquidating Trust Interest	United States		4,853,892			—
^g,m,n Harvard Industries Inc.	United States		793,966			7,940

						7,940


Commercial & Professional Services 0.0%
^l,m,n VS Holdings Inc.	United States		1,685,375			—

Annual Report | 27

Franklin High Income Trust

Statement of Investments, May 31, 2010 (continued)


Franklin High Income Fund	Country	Shares/Warrants		Value
Common Stocks and Other Equity Interests (continued)
Media 0.3%
^mCharter Communications Inc., wts., 11/30/14	United States		38,880	$	251,748
^mDex One Corp.	United States		393,939		8,067,870

					8,319,618


Total Common Stocks and Other Equity Interests (Cost $39,552,675)					8,327,558


Preferred Stocks 0.2%
Banks 0.0%^k
^mFreddie Mac, 8.375%, pfd., Z	United States		400,000		420,000


Diversified Financials 0.2%
^eGMAC Inc., 7.00%, pfd., 144A	United States		8,059		6,062,383


Total Preferred Stocks (Cost $12,860,945)					6,482,383


Total Investments before Short Term Investments (Cost $2,980,531,643)					2,914,632,797


Short Term Investments (Cost $69,133,587) 2.3%
Money Market Funds 2.3%
^oInstitutional Fiduciary Trust Money Market Portfolio, 0.00%	United States		69,133,587		69,133,587

Total Investments (Cost $3,049,665,230) 98.0%					2,983,766,384
Other Assets, less Liabilities 2.0%					60,095,496

Net Assets 100.0%				$	3,043,861,880


^a		The principal amount is stated in U.S. dollars unless otherwise indicated.

^b		The coupon rate shown represents the rate at period end.

^c		See Note 1(e) regarding senior floating rate interests.

^d		Security purchased on a delayed delivery basis. See Note 1(c).

^e		Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At May 31, 2010, the aggregate value of these securities was $934,462,508, representing 30.70% of net assets.

^f		Perpetual security with no stated maturity date.

^g		Security has been deemed illiquid because it may not be able to be sold within seven days. At May 31, 2010, the aggregate value of these securities was $8,845, representing less than 0.01% of net assets.

^h		See Note 8 regarding defaulted securities.

ⁱ		Income may be received in additional securities and/or cash.

^j		See Note 12 regarding other considerations.

^k		Rounds to less than 0.1% of net assets.

^l		See Note 9 regarding restricted securities.

^m		Non-income producing.

ⁿ		See Note 11 regarding holdings of 5% voting securities.

^o		See Note 7 regarding investments in the Institutional Fiduciary Trust Money Market Portfolio. The rate shown is the annualized seven-day yield at period end.

28 | Annual Report

Franklin High Income Trust

Financial Statements

Statement of Assets and Liabilities

May 31, 2010


	Franklin High
	Income Fund
Assets:
Investments in securities:
Cost — Unaffiliated issuers	$	2,953,307,782
Cost — Non-controlled affiliated issuers (Note 11)		27,223,861
Cost — Sweep Money Fund (Note 7)		69,133,587

Total cost of investments	$	3,049,665,230

Value — Unaffiliated issuers	$	2,914,624,857
Value — Non-controlled affiliated issuers (Note 11)		7,940
Value — Sweep Money Fund (Note 7)		69,133,587

Total value of investments		2,983,766,384
Cash		66,444
Receivables:
Investment securities sold		10,606,423
Capital shares sold		15,453,338
Interest		64,877,282
Unrealized appreciation on forward exchange contracts		1,094,363
Other assets		5,926

Total assets		3,075,870,160


Liabilities:
Payables:
Investment securities purchased		20,365,701
Capital shares redeemed		9,215,603
Affiliates		1,929,638
Accrued expenses and other liabilities		497,338

Total liabilities		32,008,280

Net assets, at value	$	3,043,861,880

Net assets consist of:
Paid-in capital	$	4,057,212,006
Undistributed net investment income		4,287,602
Net unrealized appreciation (depreciation)		(64,804,483	)
Accumulated net realized gain (loss)		(952,833,245	)

Net assets, at value	$	3,043,861,880

30 | The accompanying notes are an integral part of these financial statements. | Annual Report

Franklin High Income Trust

Financial Statements (continued)

Statement of Assets and Liabilities (continued)

May 31, 2010


	Franklin High
	Income Fund
Class A:
Net assets, at value	$	2,286,144,037

Shares outstanding		1,210,878,937

Net asset value per share^a	$	1.89

Maximum offering price per share (net asset value per share ÷ 95.75%)	$	1.97

Class B:
Net assets, at value	$	48,365,620

Shares outstanding		25,706,844

Net asset value and maximum offering price per share^a	$	1.88

Class C:
Net assets, at value	$	398,291,866

Shares outstanding		209,533,881

Net asset value and maximum offering price per share^a	$	1.90

Class R:
Net assets, at value	$	122,056,480

Shares outstanding		63,980,650

Net asset value and maximum offering price per share	$	1.91

Advisor Class:
Net assets, at value	$	189,003,877

Shares outstanding		100,004,906

Net asset value and maximum offering price per share	$	1.89


^a		Redemption price is equal to net asset value less contingent deferred sales charges, if applicable.

Annual Report | The accompanying notes are an integral part of these financial statements. | 31

Franklin High Income Trust

Financial Statements (continued)

Statement of Operations
for the year ended May 31, 2010


	Franklin High
	Income Fund
Investment income:
Dividends:
Unaffiliated issuers	$	567,354
Sweep Money Fund (Note 7)		834
Interest		261,874,621

Total investment income		262,442,809

Expenses:
Management fees (Note 3a)		13,242,248
Distribution fees: (Note 3c)
Class A		3,148,341
Class B		401,934
Class C		2,477,239
Class R		422,889
Transfer agent fees (Note 3e)		3,502,607
Custodian fees (Note 4)		41,635
Reports to shareholders		275,474
Registration and filing fees		169,662
Professional fees		88,921
Trustees’ fees and expenses		131,441
Other		81,787

Total expenses		23,984,178
Expense reductions (Note 4)		(865	)

Net Expenses		23,983,313

Net investment income		238,459,496


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments		(69,878,851	)
Foreign currency transactions		68,892

Net realized gain (loss)		(69,809,959	)

Net change in unrealized appreciation (depreciation) on:
Investments		401,871,624
Translation of other assets and liabilities denominated in foreign currencies		1,094,363

Net change in unrealized appreciation (depreciation)		402,965,987

Net realized and unrealized gain (loss)		333,156,028

Net increase (decrease) in net assets resulting from operations	$	571,615,524

32 | The accompanying notes are an integral part of these financial statements. | Annual Report

Franklin High Income Trust

Financial Statements (continued)

Statements of Changes in Net Assets


	Franklin High Income Fund
	Year Ended May 31,
	2010			2009
Increase (decrease) in net assets:
Operations:
Net investment income	$	238,459,496		$	184,421,415
Net realized gain (loss) from investments and foreign currency transactions		(69,809,959	)		(139,105,758	)
Net change in unrealized appreciation (depreciation) on investments and translation of other assets and liabilities denominated in foreign currencies		402,965,987			(271,294,319	)

Net increase (decrease) in net assets resulting from operations		571,615,524			(225,978,662	)

Distributions to shareholders from net investment income:
Class A		(175,366,494	)		(154,892,962	)
Class B		(4,833,477	)		(7,086,480	)
Class C		(28,567,650	)		(23,592,783	)
Class R		(6,124,988	)		(2,797,570	)
Advisor Class		(16,036,124	)		(5,861,050	)

Total distributions to shareholders		(230,928,733	)		(194,230,845	)

Capital share transactions: (Note 2)
Class A		218,240,503			104,211,360
Class B		(27,545,671	)		(27,209,843	)
Class C		43,060,618			31,392,792
Class R		72,665,791			12,076,300
Advisor Class		15,485,859			96,256,152

Total capital share transactions		321,907,100			216,726,761

Redemption fees		—			6,343

Net increase (decrease) in net assets		662,593,891			(203,476,403	)
Net assets:
Beginning of year		2,381,267,989			2,584,744,392

End of year	$	3,043,861,880		$	2,381,267,989

Undistributed net investment income (distributions in excess of net investment income) included in net assets:
End of year	$	4,287,602		$	(7,600,483	)

Annual Report | The accompanying notes are an integral part of these financial statements. | 33

Franklin High Income Trust

Notes to Financial Statements

Franklin High Income Fund

1. Organization and Significant Accounting Policies

Franklin High Income Trust (Trust) is registered under the Investment Company Act of 1940, as amended, (1940 Act) as an open-end investment company, consisting of one fund, the Franklin High Income Fund (Fund). The Fund offers five classes of shares: Class A, Class B, Class C, Class R, and Advisor Class. Each class of shares differs by its initial sales load, contingent deferred sales charges, distribution fees, voting rights on matters affecting a single class and its exchange privilege.

The following summarizes the Fund’s significant accounting policies.

a. Security Valuation

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

Corporate debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Fund may utilize independent pricing services, quotations from bond dealers, and information with respect to bond and note transactions, to assist in determining a current market value for each security. The Fund’s pricing services may use valuation models or matrix pricing which considers information with respect to comparable bond and note transactions, quotations from bond dealers, or by reference to other securities that are considered comparable in such characteristics as rating, interest rate and maturity date, option adjusted spread models, prepayment projections, interest rate spreads and yield curves, to determine current value. Debt securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the date that the values of the foreign debt securities are determined.

Senior secured corporate loans with floating or variable interest rates generally trade in the over-the-counter market rather than on a securities exchange. The Fund may utilize independent pricing services, quotations from loan dealers and other financial institutions, and information with respect to bond and note transactions, to assist in determining a current market value for each security. The Fund’s pricing services use independent market quotations from loan dealers or financial institutions and may incorporate valuation methodologies that consider multiple bond characteristics such as dealer quotes, issuer type, coupon, maturity, weighted average maturity, interest rate spreads and yield curves, cash flow and credit risk/quality analysis, to determine current value.

34 | Annual Report

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

1. Organization and Significant Accounting Policies (continued)

a. Security Valuation (continued)

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

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. 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 Trust’s Board of Trustee.

The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments on the Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

Annual Report | 35

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

1. Organization and Significant Accounting Policies (continued)

c. Securities Purchased on a Delayed Delivery Basis

The Fund may purchase securities on a delayed delivery basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of holding the securities, it may sell the securities before the settlement date. Sufficient assets have been segregated for these securities.

d. Derivative Financial Instruments

The Fund may invest in derivative financial instruments (derivatives) 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 may 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 the potential for market movements which may expose the Fund to gains or losses in excess of the amounts shown on the Statement of Assets and Liabilities.

Derivatives are marked to market daily based upon quotations from market makers or the Fund’s independent pricing services and the Fund’s net benefit or obligation under the contract, as measured by the fair market value of the contract, is included in net assets. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.

The Fund generally enters into forward exchange contracts in order 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 for a specific exchange rate on a future date. Pursuant to the terms of the forward exchange contracts, cash or securities may be required to be deposited as collateral.

e. Senior Floating Rate Interests

Senior secured corporate loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or at the discretion of the borrower. As a result, actual maturity may be substantially less than the stated maturity.

36 | Annual Report

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

1. Organization and Significant Accounting Policies (continued)

e. Senior Floating Rate Interests (continued)

Senior secured corporate loans in which the Fund invests are generally readily marketable, but may be subject to some restrictions on resale.

f. Income Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code and to distribute to shareholders substantially all of its taxable income and net realized gains. As a result, no provision for federal income taxes is required. The Fund files U.S. income tax returns as well as tax returns in certain other jurisdictions. As of May 31, 2010, and for all open tax years, the Fund has determined that no provision for income tax is required in the Fund’s financial statements. Open tax years are those that remain subject to examination by such taxing authorities, which in the case of the U.S. is three years after the filing of a fund’s tax return.

g. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Facility fees are recognized as income over the expected term of the loan. Dividend income is recorded on the ex-dividend date. Distributions to shareholders are recorded on the ex-dividend date and are determined according to income tax regulations (tax basis). Distributable earnings determined on a tax basis may differ from earnings recorded in accordance with accounting principles generally accepted in the United States of America. 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.

Realized and unrealized gains and losses and net investment income, not including class specific expenses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Differences in per share distributions, by class, are generally due to differences in class specific expenses.

h. Accounting Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Annual Report | 37

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

1. Organization and Significant Accounting Policies (continued)

i. Redemption Fees

A short term trading redemption fee was imposed, with some exceptions, on any Fund shares that were redeemed or exchanged within seven calendar days following their purchase date. The redemption fee was 2% of the amount redeemed. Such fees were retained by the fund and accounted for as an addition to paid-in capital. Effective September 1, 2008, the redemption fee was eliminated.

j. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

At May 31, 2010, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:


	Year Ended May 31,
	2010						2009
	Shares			Amount			Shares			Amount
Class A Shares:
Shares sold		355,877,697		$	660,650,298			337,240,782		$	525,055,856
Shares issued in reinvestment of distributions		62,625,173			115,573,917			56,709,389			90,707,824
Shares redeemed		(298,897,839	)		(557,983,712	)		(321,819,937	)		(511,552,320	)

Net increase (decrease)		119,605,031		$	218,240,503			72,130,234		$	104,211,360

Class B Shares:
Shares sold		2,714,354		$	4,940,557			4,238,933		$	6,687,532
Shares issued in reinvestment of distributions		1,568,608			2,868,928			2,307,147			3,717,055
Shares redeemed		(19,078,297	)		(35,355,156	)		(23,420,912	)		(37,614,430	)

Net increase (decrease)		(14,795,335	)	$	(27,545,671	)		(16,874,832	)	$	(27,209,843	)

Class C Shares:
Shares sold		68,347,621		$	127,043,124			65,250,921		$	102,673,592
Shares issued in reinvestment of distributions		10,554,251			19,576,350			8,838,473			14,226,788
Shares redeemed		(55,132,143	)		(103,558,856	)		(53,252,587	)		(85,507,588	)

Net increase (decrease)		23,769,729		$	43,060,618			20,836,807		$	31,392,792

38 | Annual Report

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

2. Shares of Beneficial Interest (continued)


	Year Ended May 31,
	2010						2009
	Shares			Amount			Shares			Amount
Class R Shares:
Shares sold		54,719,843		$	103,176,759			16,616,021		$	26,731,618
Shares issued in reinvestment of distributions		3,155,305			5,937,196			1,679,667			2,701,332
Shares redeemed		(19,223,630	)		(36,448,164	)		(10,645,503	)		(17,356,650	)

Net increase (decrease)		38,651,518		$	72,665,791			7,650,185		$	12,076,300

Advisor Class Shares:
Shares sold		92,950,425		$	169,616,168			79,679,624		$	124,108,956
Shares issued in reinvestment of distributions		4,247,411			7,841,259			2,674,861			4,205,620
Shares redeemed		(87,141,756	)		(161,971,568	)		(20,622,532	)		(32,058,424	)

Net increase (decrease)		10,056,080		$	15,485,859			61,731,953		$	96,256,152

3. Transactions with Affiliates

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


Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services)		Transfer agent

a. Management Fees

The Fund pays an investment management fee to Advisers based on the month-end net assets of the Fund as follows:


Annualized Fee Rate		Net Assets
	0.625%	Up to and including $100 million
	0.500%	Over $100 million, up to and including $250 million
	0.450%	Over $250 million, up to and including $7.5 billion
	0.440%	Over $7.5 billion, up to and including $10 billion
	0.430%	Over $10 billion, up to and including $12.5 billion
	0.420%	Over $12.5 billion, up to and including $15 billion
	0.400%	Over $15 billion, up to and including $17.5 billion
	0.380%	Over $17.5 billion, up to and including $20 billion
	0.360%	Over $20 billion, up to and including $35 billion
	0.355%	Over $35 billion, up to and including $50 billion
	0.350%	In excess of $50 billion

Annual Report | 39

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

3. Transactions with Affiliates (continued)

b. Administrative Fees

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

c. Distribution Fees

The Trust’s Board of Trustees has adopted distribution plans for each share class, with the exception of Advisor Class shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Fund’s Class A reimbursement distribution plan, the Fund reimburses Distributors 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 B, 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 maximum annual plan rates, based on the average daily net assets, for each class, are as follows:



Reimbursement Plan:
Class A	0.15	%
Compensation Plans:
Class B	0.65	%
Class C	0.65	%
Class R	0.50	%

d. Sales Charges/Underwriting Agreements

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



Sales charges retained net of commissions paid to unaffiliated broker/dealers	$	715,264
Contingent deferred sales charges retained	$	75,641

e. Transfer Agent Fees

For the year ended May 31, 2010, the Fund paid transfer agent fees of $3,502,607, of which $2,181,106 was retained by Investor Services.

40 | Annual Report

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

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 May 31, 2010, the custodian fees were reduced as noted in the Statement of Operations.

5. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At May 31, 2010, the capital loss carryforwards were as follows:



Capital loss carryforwards expiring in:
2011	$	291,020,377
2012		273,193,753
2013		56,708,693
2014		100,305,761
2017		74,931,197
2018		146,834,317

	$	942,994,098

On May 31, 2010, the Fund had expired capital loss carryforwards of $147,493,159, which were reclassified to paid-in capital.

For tax purposes, realized capital losses occurring subsequent to October 31, may be deferred and treated as occurring on the first day of the following fiscal year. At May 31, 2010, the Fund deferred realized capital losses of $9,839,145.

The tax character of distributions paid during the years ended May 31, 2010 and 2009, was as follows:


	2010		2009
Distributions paid from ordinary income	$	230,928,733	$	194,230,845

At May 31, 2010, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



Cost of investments	$	3,055,582,339


Unrealized appreciation	$	129,115,864
Unrealized depreciation		(200,931,819	)

Net unrealized appreciation (depreciation)	$	(71,815,955	)


Undistributed ordinary income	$	14,585,977

Annual Report | 41

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

5. Income Taxes (continued)

Net investment income (loss) differs for financial statement and tax purposes primarily due to differing treatments of defaulted securities, foreign currency transactions, payments-in-kind, bond discounts and premiums and regulatory settlement.

Net realized gains (losses) differ for financial statement and tax purposes primarily due to differing treatments of defaulted securities, foreign currency transactions, payments-in-kind and bond discounts and premiums.

6. Investment Transactions

Purchases and sales of investments (excluding short term securities) for the year ended May 31, 2010, aggregated $1,476,761,134 and $1,131,931,246, respectively.

7. Investments in Institutional Fiduciary Trust Money Market Portfolio

The Fund may invest in the Institutional Fiduciary Trust Money Market Portfolio (Sweep Money Fund), an open-end investment company managed by Advisers. Pursuant to a SEC exemptive order specific to the Fund’s investment in the Sweep Money Fund, management fees paid by the Fund are reduced on assets invested in the Sweep Money Fund, in an amount not to exceed the management and administrative fees paid by the Sweep Money Fund.

8. Credit Risk and Defaulted Securities

At May 31, 2010, the Fund had 96.18% of its portfolio invested in high yield, senior secured floating rate notes, or other securities rated below investment grade. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

The Fund held defaulted securities and/or other securities for which the income has been deemed uncollectible. At May 31, 2010, the aggregate value of these securities was $7,562,436, representing 0.25% of the Fund’s net assets. The Fund discontinues accruing income on securities for which income has been deemed uncollectible and provides an estimate for losses on interest receivable. The securities have been identified on the accompanying Statement of Investments.

42 | Annual Report

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

9. Restricted Securities

The Fund may invest in securities that are restricted under the Securities Act of 1933 (1933 Act) or which are subject to legal, contractual, or other agreed upon restrictions on resale. Restricted securities are often purchased in private placement transactions, and cannot be sold without prior registration unless the sale is pursuant to an exemption under the 1933 Act. Disposal of these securities may require greater effort and expense, and prompt sale at an acceptable price may be difficult. The Fund may have registration rights for restricted securities. The issuer generally incurs all registration costs.

At May 31, 2010, the Fund held investments in restricted securities, excluding certain securities exempt from registration under the 1933 Act deemed to be liquid, as follows:


			Acquisition
Shares		Issuer	Date		Cost		Value
	4,853,892	Cambridge Industries Liquidating Trust Interest		1/09/02	$	—	$	—
	1,685,375	VS Holdings Inc.		12/06/01		1,685,375		—

		Total Restricted Securities (0.00% of Net Assets)					$	—

10. Other Derivative Information

At May 31, 2010, the Fund has invested in derivative contracts which are reflected on the Statement of Assets and Liabilities as follows:


	Asset Derivatives			Liability Derivatives
Derivative Contracts
Not Accounted for as	Statement of Assets and	Fair Value		Statement of Assets and	Fair Value
Hedging Instruments	Liabilities Location	Amount		Liabilities Location	Amount
Foreign exchange contracts	Unrealized appreciation on forward exchange contracts	$	1,094,363	Unrealized depreciation on forward exchange contracts	$—

Annual Report | 43

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

10. Other Derivative Information (continued)

For the year ended May 31, 2010, the effect of derivative contracts on the Fund’s Statement of Operations was as follows:

Changes in

Unrealized

Average

Appreciation

Amount

Derivative Contracts

Realized Gain

(Depreciation)

Outstanding

Not Accounted for as

Statement of

(Loss) for the

for the

During the

Hedging Instruments

Operations Locations

Year

Year^a

Foreign exchange
contracts

Net realized gain (loss) from foreign currency transactions/Net change in unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currencies

$—

1,094,363

3,121,253


^a		Represents the average notional amount for other derivative contracts outstanding during the period.

See Note 1(d) regarding derivative financial instruments.

11. Holdings of 5% Voting Securities of Portfolio Companies

The 1940 Act defines “affiliated companies” to include investments in portfolio companies in which a fund owns 5% or more of the outstanding voting securities. Investments in “affiliated companies” for the Fund for the year ended May 31, 2010, were as shown below.


	Number of						Number of
	Shares Held						Shares Held		Value at				Realized
	at Beginning		Gross		Gross		at End of		End of		Investment		Capital
Name of Issuer	of Year		Additions		Reductions		Year		Year		Income		Gain (Loss)
Harvard Industries Inc.		793,966		—		—		793,966	$	7,940	$	—	$	—
VS Holdings Inc.		1,685,375		—		—		1,685,375		—		—		—

Total Affiliated Securities (0.00%^a of Net Assets)									$	7,940	$	—	$	—


^a		Rounds to less than 0.01% of net assets.

12. Other Considerations

From time to time, officers, directors or employees of the Fund’s Investment Manager may have discussions or enter into agreements with issuers, underwriters or creditors’ committees which, pursuant to the Fund’s policies and requirements of applicable securities laws, could prevent the Fund from trading in the securities of such company for limited or extended periods of time.

44 | Annual Report

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

13. Credit Facility

The Fund, together with other U.S. registered and foreign investment funds (collectively “Borrowers”), managed by Franklin Templeton Investments, are borrowers in a joint syndicated senior unsecured credit facility totaling $750 million (Global Credit Facility) which matures on January 21, 2011. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.10% based upon the unused portion of the Global Credit Facility, which is reflected in other expenses on the Statement of Operations. During the year ended May 31, 2010, the Fund did not utilize the Global Credit Facility.

14. Fair Value Measurements

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Trust’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy:

	•		Level 1 — quoted prices in active markets for identical securities

	•		Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.)

	•		Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

Annual Report | 45

Franklin High Income Trust

Notes to Financial Statements (continued)

Franklin High Income Fund

14. Fair Value Measurements (continued)

The following is a summary of the inputs used as of May 31, 2010, in valuing the Fund’s assets carried at fair value:


	Level 1		Level 2		Level 3			Total
Assets:
Investments in Securities
Equity Investments:^a
Automobiles & Components	$	—	$	—	$	7,940	^b	$	7,940
Diversified Financials		—		6,062,383		—			6,062,383
Media		8,067,870		251,748		—			8,319,618
Other Equity Investments^c		420,000		—		—	^b		420,000
Senior Floating Rate Interests		—		57,714,636		—			57,714,636
Corporate Bonds		—		2,842,107,315		905			2,842,108,220
Short Term Investments		69,133,587		—		—			69,133,587

Total Investments in Securities	$	77,621,457	$	2,906,136,082	$	8,845	^b	$	2,983,766,384

Forward Exchange Contracts		—		1,094,363		—			1,094,363


^a		Includes common and preferred stock as well as other equity investments.

^b		Includes securities determined to have no value at May 31, 2010.

^c		For detailed industry descriptions, see the accompanying Statement of Investments.

At May 31, 2010, the reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value, was as follows:


																		Net Change
							Net Change											in Unrealized
							in											Appreciation
	Balance at			Net			Unrealized		Net			Transfer			Balance			(Depreciation)
	Beginning			Realized			Appreciation		Purchases			In (Out) of			at End of			on Assets Held
	of Year			Gain (Loss)			(Depreciation)		(Sales)			Level 3			Year			at Year End
Assets
Equity Securities:
Automobiles & Components	$	7,940	^a	$	—		$	—	$	—		$	—		$	7,940	^b	$	—
Corporate Bonds		473,205			(29,061,478	)		29,596,797		(589,119	)		(418,500	)		905			—

Total	$	481,145	^a	$	(29,061,478	)	$	29,596,797	$	(589,119	)	$	(418,500	)	$	8,845	^b	$	—


^a		Includes securities determined to have no value at May 31, 2009.

^b		Includes securities determined to have no value at May 31, 2010.

46 | Annual Report

Franklin High Income Trust

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Franklin High Income Fund

In our opinion, the accompanying statement of assets and liabilities, including the statement of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Franklin High Income Fund (the “Fund”) at May 31, 2010, 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 then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at May 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
July 19, 2010

48 | Annual Report

Franklin High Income Trust

Board Members and Officers

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 the past five years and number of portfolios overseen in the Franklin Templeton Investments fund complex are shown below. Generally, each board member serves until that person’s successor is elected and qualified.

Independent Board Members


			Number of Portfolios in
Name, Year of Birth		Length of	Fund Complex Overseen
and Address	Position	Time Served	by Board Member*		Other Directorships Held
Harris J. Ashton (1932)	Trustee	Since 2007		131	Bar-S Foods (meat packing company).
One Franklin Parkway
San Mateo, CA 94403-1906