N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number_811-09869
 
__Franklin Floating Rate Master 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: 7/31
 
Date of reporting period: 1/31/21
 
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)
 
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.
 
 
Your
Fund’s
Expenses
Franklin
Floating
Rate
Master
Series
1
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Beginning
Account
Value
8/1/20
Ending
Account
Value
1/31/21
Expenses
Paid
During
Period
8/1/20–1/31/21
1,
2
Ending
Account
Value
1/31/21
Expenses
Paid
During
Period
8/1/20–1/31/21
1,
2
a
Net
Annualize
d
Expense
Ratio
2
$1,000
$1,051.17
$2.74
$1,022.53
$2.71
0.53%
Franklin
Floating
Rate
Master
Trust
Shareholder
Information
2
Semiannual
Report
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Franklin
Floating
Rate
Master
Trust
Financial
Highlights
Franklin
Floating
Rate
Master
Series
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
January
31,
2021
(unaudited)
Year
Ended
July
31,
2020
2019
2018
2017
2016
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$6.99
$8.18
$8.54
$8.69
$8.47
$8.65
Income
from
investment
operations
a
:
Net
investment
income
..............
0.161
b
0.415
0.460
0.398
0.332
0.419
Net
realized
and
unrealized
gains
(losses)
0.195
(1.141)
(0.378)
(0.156)
0.221
(0.184)
Total
from
investment
operations
........
0.356
(0.726)
0.082
0.242
0.553
0.235
Less
distributions
from:
Net
investment
income
..............
(0.183)
(0.464)
(0.442)
(0.392)
(0.333)
(0.415)
Net
asset
value,
end
of
period
..........
$7.16
$6.99
$8.18
$8.54
$8.69
$8.47
Total
return
c
.......................
5.12%
(9.13)%
0.98%
2.73%
6.71%
3.07%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.60%
0.58%
0.55%
0.55%
0.55%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.53%
0.53%
0.53%
0.53%
0.53%
0.53%
Net
investment
income
...............
4.53%
5.41%
5.29%
4.60%
3.78%
5.03%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$332,071
$394,720
$1,054,679
$1,760,544
$2,090,626
$1,363,955
Portfolio
turnover
rate
................
27.12%
16.80%
27.92%
f
49.97%
67.00%
28.94%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited),
January
31,
2021
Franklin
Floating
Rate
Master
Series
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
a
Country
Shares
a
Value
%
of
Net
Assets
a
Common
Stocks
Aerospace
&
Defense
a,b,c,d
Remington
Outdoor
Co.,
Inc.
.....................
United
States
1,048,435
$
—
0.00
b
Industrial
Machinery
b
UTEX
Industries,
Inc.
..........................
United
States
120,386
4,093,124
1.23
b
Leisure
Facilities
b
24
Hour
Fitness
Worldwide,
Inc.
..................
United
States
104,009
234,020
0.07
b
Oil
&
Gas
Exploration
&
Production
b
Samson
Resources
II
LLC
.......................
United
States
155,501
829,287
0.25
b
Paper
Products
a,b,c,d
Appvion
Operations,
Inc.
........................
United
States
563,596
9,451,775
2.85
b
Trucking
a,b
Onsite
Rental
Group
Operations
Pty.
Ltd.
...........
Australia
5,879,078
117,091
0.04
b
Total
Common
Stocks
(Cost
$62,483,241)
...............................
14,725,297
4.44
Management
Investment
Companies
Asset
Management
&
Custody
Banks
e
Franklin
Floating
Rate
Income
Fund
...............
United
States
461,717
3,518,280
1.06
e
Franklin
Liberty
Senior
Loan
ETF
.................
United
States
957,785
23,810,535
7.17
Invesco
Senior
Loan
ETF
.......................
United
States
72,365
1,607,950
0.48
28,936,765
8.71
Total
Management
Investment
Companies
(Cost
$30,253,006)
.............
28,936,765
8.71
Preferred
Stocks
Leisure
Facilities
b
24
Hour
Fitness
Worldwide,
Inc.
..................
United
States
246,320
635,506
0.19
b
Total
Preferred
Stocks
(Cost
$332,425)
..................................
635,506
0.19
Warrants
%
of
Net
Assets
a
a
a
a
a
Warrants
Industrial
Machinery
a,b
UTEX
Industries,
Inc.
,
2/20/49
....................
United
States
321
573
0.00
†
Total
Warrants
(Cost
$–)
...............................................
573
0.00
†
Principal
Amount
*
%
of
Net
Assets
Corporate
Bonds
Airlines
f
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.,
Senior
Secured
Note,
144A,
4.5%,
10/20/25
....................
United
States
1,250,000
1,336,219
0.40
Broadcasting
f
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.,
Senior
Secured
Note,
144A,
5.375%,
8/15/26
...
United
States
940,000
760,225
0.23
f
Univision
Communications,
Inc.,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
........................
United
States
400,000
402,920
0.12
1,163,145
0.35
Construction
Materials
f
Cemex
SAB
de
CV,
Senior
Secured
Bond,
144A,
5.2%,
9/17/30
...................................
Mexico
750,000
816,563
0.25
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
Oil
&
Gas
Storage
&
Transportation
f
Cheniere
Energy,
Inc.,
Senior
Secured
Note,
144A,
4.625%,
10/15/28
............................
United
States
450,000
$
471,375
0.14
Packaged
Foods
&
Meats
f
Chobani
LLC
/
Chobani
Finance
Corp.,
Inc.,
Senior
Secured
Note,
144A,
4.625%,
11/15/28
...........
United
States
100,000
102,250
0.03
Specialty
Stores
f
Staples,
Inc.,
Senior
Secured
Note,
144A,
7.5%,
4/15/26
United
States
268,000
273,786
0.08
Trucking
a,g
Onsite
Rental
Group
Operations
Pty.
Ltd.,
PIK,
6.1%,
10/26/23
..................................
Australia
10,725,759
9,847,797
2.97
Wireless
Telecommunication
Services
f
Vmed
O2
UK
Financing
I
plc,
Senior
Secured
Bond,
144A,
4.25%,
1/31/31
.........................
United
Kingdom
360,000
360,076
0.11
Total
Corporate
Bonds
(Cost
$15,938,594)
...............................
14,371,211
4.33
h,i
Senior
Floating
Rate
Interests
Advertising
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan,
B,
3.711%,
(2-month
USD
LIBOR
+
3.5%;
3-month
USD
LIBOR
+
3.5%),
8/21/26
.......................
United
States
1,303,401
1,274,478
0.38
Aerospace
&
Defense
AI
Convoy
(Luxembourg)
SARL,
Facility
USD
Term
Loan,
B,
4.5%,
(6-month
USD
LIBOR
+
3.5%),
1/18/27
....
Luxembourg
1,231,693
1,234,642
0.37
g
Alloy
FinCo
Ltd.,
Facility
Term
Loan,
B,
14%,
PIK,
(3-month
USD
LIBOR
+
0.5%),
3/06/25
...........
United
Kingdom
2,966,667
1,489,148
0.45
j
Dynasty
Acquisition
Co.,
Inc.,
2020
Term
Loan
,
B1,
3.754%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
..
United
States
1,060,278
1,021,578
0.31
B2,
3.754%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
..
United
States
570,042
549,235
0.16
a,g,k
FGI
Operating
Co.
LLC,
Term
Loan,
12%,
PIK,
(3-month
USD
LIBOR
+
11%),
5/16/22
...................
United
States
11,574,019
6,088,019
1.84
10,382,622
3.13
a
a
a
a
a
a
Airlines
Allegiant
Travel
Co.,
Replacement
Term
Loan,
3.214%,
(3-month
USD
LIBOR
+
3%),
2/05/24
.............
United
States
4,066,319
3,983,976
1.20
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.,
Initial
Term
Loan,
4.75%,
(3-month
USD
LIBOR
+
3.75%),
10/20/27
....
United
States
956,180
1,004,170
0.30
JetBlue
Airways
Corp.,
Term
Loan,
6.25%,
(3-month
USD
LIBOR
+
5.25%),
6/17/24
......................
United
States
428,660
444,825
0.14
Kestrel
Bidco
,
Inc.,
Term
Loan,
4%,
(3-month
USD
LIBOR
+
3%),
12/11/26
.............................
Canada
2,896,857
2,796,553
0.84
8,229,524
2.48
a
a
a
a
a
a
Alternative
Carriers
Zayo
Group
Holdings,
Inc.,
Initial
Dollar
Term
Loan,
3.121%,
(1-month
USD
LIBOR
+
3%),
3/09/27
......
United
States
623,553
620,824
0.19
Apparel,
Accessories
&
Luxury
Goods
Champ
Acquisition
Corp.,
First
Lien,
Initial
Term
Loan,
5.76%,
(3-month
USD
LIBOR
+
5.5%;
6-month
USD
LIBOR
+
5.5%),
12/19/25
......................
United
States
1,058,015
1,056,317
0.32
Application
Software
Blackboard,
Inc.,
First
Lien,
Term
Loan,
B5,
7%,
(3-month
USD
LIBOR
+
6%),
6/30/24
....................
United
States
2,211,580
2,209,269
0.67
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Application
Software
(continued)
Ceridian
HCM
Holding,
Inc.,
Initial
Term
Loan,
2.592%,
(1-week
USD
LIBOR
+
2.5%),
4/30/25
............
United
States
692,911
$
692,738
0.21
Epicor
Software
Corp.,
Term
Loan,
B,
5.25%,
(1-month
USD
LIBOR
+
4.25%),
7/30/27
..................
United
States
571,510
575,190
0.17
Greeneden
U.S.
Holdings
I
LLC,
Term
Loan,
B,
4.75%,
(1-month
USD
LIBOR
+
4%),
12/01/27
............
United
States
1,251,541
1,257,799
0.38
LogMeIn,
Inc.,
First
Lien,
Initial
Term
Loan,
4.881%,
(1-month
USD
LIBOR
+
4.75%),
8/31/27
..........
United
States
497,402
496,054
0.15
Mitchell
International,
Inc.,
First
Lien,
Amendment
No.
2
New
Term
Loan
Facility,
4.75%,
(1-month
USD
LIBOR
+
4.25%),
11/29/24
...........................
United
States
997,500
1,000,408
0.30
j
Mitchell
International,
Inc.,
First
Lien,
Initial
Term
Loan,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
11/29/24
...
United
States
700,000
692,912
0.21
Project
Alpha
Intermediate
Holding,
Inc.,
Term
Loan,
4.5%,
(3-month
USD
LIBOR
+
3.5%),
4/26/24
......
United
States
1,096,258
1,100,024
0.33
Solera
LLC
(Solera
Finance,
Inc.),
Dollar
Term
Loan,
2.871%,
(1-month
USD
LIBOR
+
2.75%),
3/03/23
....
United
States
496,094
494,732
0.15
Sophia
LP,
Term
Loan,
B,
4.5%,
(3-month
USD
LIBOR
+
3.75%),
10/07/27
............................
United
States
373,050
375,008
0.11
Surf
Holdings
SARL,
First
Lien,
Dollar
Term
Loan,
3.726%,
(3-month
USD
LIBOR
+
3.5%),
3/05/27
.....
Luxembourg
1,693,898
1,694,957
0.51
Ultimate
Software
Group,
Inc.
(The),
First
Lien,
Initial
Term
Loan,
3.871%,
(1-month
USD
LIBOR
+
3.75%),
5/04/26
...................................
United
States
645,100
647,926
0.20
Veritas
US,
Inc.,
Term
Loan,
B,
6.5%,
(3-month
USD
LIBOR
+
5.5%),
9/01/25
.......................
United
States
440,713
444,018
0.13
11,681,035
3.52
a
a
a
a
a
a
Asset
Management
&
Custody
Banks
Russell
Investments
US
Institutional
Holdco,
Inc.,
2025
Term
Loan,
4%,
(3-month
USD
LIBOR
+
3%),
5/30/25
United
States
1,258,950
1,259,347
0.38
Auto
Parts
&
Equipment
Adient
US
LLC,
Initial
Term
Loan,
4.394%,
(1-month
USD
LIBOR
+
4.25%;
3-month
USD
LIBOR
+
4.25%),
5/06/24
...................................
United
States
3,410,966
3,421,625
1.03
j
Highline
Aftermarket
Acquisition
LLC,
First
Lien,
Term
Loan,
5.25%,
(3-month
USD
LIBOR
+
4.5%),
11/09/27
United
States
610,007
610,769
0.18
Panther
BF
Aggregator
2
LP,
First
Lien,
Initial
Dollar
Term
Loan,
3.621%,
(1-month
USD
LIBOR
+
3.5%),
4/30/26
Canada
3,894,849
3,902,151
1.18
TI
Group
Automotive
Systems
LLC,
Initial
US
Term
Loan
(2020),
4.5%,
(3-month
USD
LIBOR
+
3.75%),
12/16/24
United
States
1,478,111
1,483,654
0.45
TRICO
Group
LLC,
First
Lien,
Term
Loan,
B3,
8.5%,
(3-month
USD
LIBOR
+
7.5%),
2/02/24
...........
United
States
1,378,886
1,407,326
0.42
j
Truck
Hero,
Inc.,
Initial
Term
Loan,
4.5%,
(1-month
USD
LIBOR
+
3.75%),
1/31/28
......................
United
States
500,856
502,672
0.15
11,328,197
3.41
a
a
a
a
a
a
Automobile
Manufacturers
Thor
Industries,
Inc.,
Initial
USD
Term
Loan,
3.938%,
(1-month
USD
LIBOR
+
3.75%),
2/01/26
..........
United
States
2,747,883
2,754,753
0.83
Automotive
Retail
Wand
NewCo
3,
Inc.,
First
Lien,
Term
Loan,
B1,
3.121%,
(1-month
USD
LIBOR
+
3%),
2/05/26
.............
United
States
1,477,575
1,466,493
0.44
Biotechnology
Grifols
Worldwide
Operations
Ltd.,
Dollar
Term
Loan,
B,
2.092%,
(1-week
USD
LIBOR
+
2%),
11/15/27
......
Ireland
658,779
658,413
0.20
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Biotechnology
(continued)
Horizon
Therapeutics
USA,
Inc.,
Seventh
Amendment
Refinancing
Term
Loan,
2.188%,
(1-month
USD
LIBOR
+
2%),
5/22/26
..............................
United
States
1,244,270
$
1,245,210
0.37
1,903,623
0.57
a
a
a
a
a
a
Broadcasting
Gray
Television,
Inc.,
Term
Loan,
B2,
2.394%,
(1-month
USD
LIBOR
+
2.25%),
2/07/24
..................
United
States
5,344,899
5,327,662
1.61
Nexstar
Broadcasting,
Inc.,
Term
Loan,
B3,
2.371%,
(1-month
USD
LIBOR
+
2.25%),
1/17/24
..........
United
States
1,901,435
1,902,119
0.57
Sinclair
Television
Group,
Inc.,
Term
Loan,
B,
2.38%,
(1-month
USD
LIBOR
+
2.25%),
1/03/24
..........
United
States
4,557,929
4,535,139
1.37
Univision
Communications,
Inc.,
First
Lien,
2020
Replacement
Term
Loan,
4.75%,
(1-month
USD
LIBOR
+
3.75%),
3/15/26
...........................
United
States
558,596
560,535
0.17
12,325,455
3.72
a
a
a
a
a
a
Cable
&
Satellite
CSC
Holdings
LLC,
March
2017
Refinancing
Term
Loan,
2.377%,
(1-month
USD
LIBOR
+
2.25%),
7/17/25
....
United
States
6,923,268
6,895,713
2.08
Radiate
HoldCo
LLC,
Term
Loan,
B,
4.25%,
(1-month
USD
LIBOR
+
3.5%),
9/25/26
...................
United
States
327,833
328,517
0.10
j
Virgin
Media
Bristol
LLC,
Term
Loan,
Q,
2.627%,
(1-month
USD
LIBOR
+
3.25%),
1/31/29
..........
United
States
788,848
791,313
0.24
WideOpenWest
Finance
LLC,
Eighth
Amendment
Term
Loan,
B,
4.25%,
(1-month
USD
LIBOR
+
3.25%),
8/18/23
...................................
United
States
1,036,994
1,037,969
0.31
9,053,512
2.73
a
a
a
a
a
a
Casinos
&
Gaming
Boyd
Gaming
Corp.,
Refinancing
Term
Loan,
B,
2.342%,
(1-week
USD
LIBOR
+
2.25%),
9/15/23
...........
United
States
2,806,318
2,802,950
0.84
Boyd
Gaming
Corp.,
Term
Loan,
A,
3.25%,
(1-week
USD
LIBOR
+
2.75%),
9/15/23
......................
United
States
925,113
928,193
0.28
Caesars
Resort
Collection
LLC,
Term
Loan
,
B,
2.871%,
(1-month
USD
LIBOR
+
2.75%),
12/23/24
.
United
States
2,032,913
2,001,779
0.60
B1,
4.621%,
(3-month
USD
LIBOR
+
4.5%;
1-month
USD
LIBOR
+
4.5%),
7/21/25
...................
United
States
344,577
344,989
0.11
Station
Casinos
LLC,
Facility
Term
Loan,
B1,
2.5%,
(1-month
USD
LIBOR
+
2.25%),
2/08/27
..........
United
States
2,315,441
2,285,050
0.69
8,362,961
2.52
a
a
a
a
a
a
Commodity
Chemicals
Cyanco
Intermediate
2
Corp.,
First
Lien,
Initial
Term
Loan,
3.621%,
(1-month
USD
LIBOR
+
3.5%),
3/16/25
.....
United
States
298,432
298,868
0.09
Univar
Solutions
USA,
Inc.,
Term
Loan,
B3,
2.371%,
(1-month
USD
LIBOR
+
2.25%),
7/01/24
..........
United
States
822,270
824,621
0.25
1,123,489
0.34
a
a
a
a
a
a
Communications
Equipment
CommScope
,
Inc.,
Initial
Term
Loan,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
4/06/26
..................
United
States
4,003,480
4,005,042
1.21
Construction
&
Engineering
Ply
Gem
Midco
,
Inc.,
Initial
Term
Loan,
3.876%,
(1-month
USD
LIBOR
+
3.75%),
4/12/25
..................
United
States
498,721
501,028
0.15
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Construction
Materials
j
Park
River
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
4%,
(3-month
USD
LIBOR
+
3.25%),
12/28/27
......
United
States
563,010
$
565,051
0.17
White
Cap
Buyer
LLC,
Initial
Closing
Date
Term
Loan,
4.5%,
(3-month
USD
LIBOR
+
4%),
10/19/27
.......
United
States
748,125
753,474
0.23
1,318,525
0.40
a
a
a
a
a
a
Consumer
Electronics
Playtika
Holding
Corp.,
Term
Loan,
B,
7%,
(3-month
USD
LIBOR
+
6%),
12/10/24
.......................
United
States
2,299,000
2,316,369
0.70
Data
Processing
&
Outsourced
Services
Neustar
,
Inc.,
First
Lien,
Term
Loan,
B5,
5.5%,
(3-month
USD
LIBOR
+
4.5%),
8/08/24
...................
United
States
1,766,172
1,740,315
0.52
Pitney
Bowes,
Inc.,
Incremental
Term
Loan,
B,
5.63%,
(1-month
USD
LIBOR
+
5.5%),
1/07/25
...........
United
States
2,310,359
2,309,643
0.70
Tempo
Acquisition
LLC,
Extended
Term
Loan,
3.75%,
(1-month
USD
LIBOR
+
3.25%),
11/02/26
..........
United
States
648,371
648,877
0.19
WEX,
Inc.,
Term
Loan,
B3,
2.371%,
(1-month
USD
LIBOR
+
2.25%),
5/15/26
...........................
United
States
321,507
321,909
0.10
5,020,744
1.51
a
a
a
a
a
a
Department
Stores
Harbor
Freight
Tools
USA,
Inc.,
Initial
Term
Loan
(2020),
4%,
(1-month
USD
LIBOR
+
3.25%),
10/19/27
......
United
States
370,157
371,129
0.11
Michaels
Stores,
Inc.,
2020
Refinancing
Term
Loan,
B,
4.25%,
(1-month
USD
LIBOR
+
3.5%),
10/01/27
.....
United
States
900,022
901,147
0.27
1,272,276
0.38
a
a
a
a
a
a
Distributors
Resideo
Funding,
Inc.,
Term
Loan,
A,
2.51%,
(3-month
USD
LIBOR
+
2.25%),
10/25/23
.................
United
States
7,740,000
7,623,900
2.29
Diversified
Banks
Finastra
Ltd.,
First
Lien,
Dollar
Term
Loan,
4.5%,
(3-month
USD
LIBOR
+
3.5%),
6/13/24
...........
United
Kingdom
3,358,496
3,306,020
0.99
Diversified
Capital
Markets
Vertical
Midco
GmbH,
USD
Term
Loan,
4.567%,
(6-month
USD
LIBOR
+
4.25%),
6/30/27
..................
Germany
1,233,428
1,246,619
0.38
Diversified
Metals
&
Mining
j
U.S.
Silica
Co.,
Term
Loan,
5%,
(1-month
USD
LIBOR
+
4%),
5/01/25
...............................
United
States
366,197
338,848
0.10
Diversified
Support
Services
Allied
Universal
Holdco
LLC,
Initial
Term
Loan,
4.371%,
(1-month
USD
LIBOR
+
4.25%),
7/10/26
..........
United
States
1,016,178
1,018,002
0.31
CCI
Buyer,
Inc.,
Term
Loan,
4.75%,
(3-month
USD
LIBOR
+
4%),
12/17/27
.............................
United
States
241,672
243,666
0.07
Legalzoom.com,
Inc.,
First
Lien,
2018
Term
Loan,
4.621%,
(1-month
USD
LIBOR
+
4.5%),
11/21/24
....
United
States
4,010,844
4,018,384
1.21
5,280,052
1.59
a
a
a
a
a
a
Drug
Retail
GNC
Holdings,
Inc.,
Second
Lien,
Term
Loan,
6.234%,
(3-month
USD
LIBOR
+
6%),
10/30/26
............
United
States
5,318,279
3,988,710
1.20
Education
Services
KUEHG
Corp.,
Term
Loan,
B-3,
4.75%,
(3-month
USD
LIBOR
+
3.75%),
2/21/25
......................
United
States
1,398,721
1,358,508
0.41
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Electric
Utilities
Astoria
Energy
LLC,
Advance
(2020)
Term
Loan,
B,
4.5%,
(6-month
USD
LIBOR
+
3.5%),
12/10/27
..........
United
States
400,685
$
401,624
0.12
EFS
Cogen
Holdings
I
LLC,
Term
Loan,
4.5%,
(3-month
USD
LIBOR
+
3.5%),
10/01/27
..................
United
States
395,118
394,707
0.12
796,331
0.24
a
a
a
a
a
a
Electronic
Equipment
&
Instruments
j
Verifone
Systems,
Inc.,
First
Lien,
Initial
Term
Loan,
4.224%,
(3-month
USD
LIBOR
+
4%),
8/20/25
......
United
States
498,724
487,468
0.15
Food
Retail
Shearer's
Foods
LLC,
First
Lien,
Term
Loan,
4.75%,
(3-month
USD
LIBOR
+
4%),
9/23/27
.............
United
States
191,848
192,807
0.06
Health
Care
Facilities
ADMI
Corp.,
Amendment
No.
3
Incremental
Term
Loan,
4.75%,
(1-month
USD
LIBOR
+
4%),
12/23/27
......
United
States
606,806
612,875
0.18
ADMI
Corp.,
Amendment
No.
4
Refinancing
Term
Loan,
3.75%,
(1-month
USD
LIBOR
+
3.25%),
12/23/27
....
United
States
700,000
700,000
0.21
Global
Medical
Response,
Inc.,
2018
New
Term
Loan,
5.25%,
(3-month
USD
LIBOR
+
4.25%),
3/14/25
.....
United
States
842,288
842,183
0.25
Pathway
Vet
Alliance
LLC,
First
Lien,
Initial
Delayed
Draw
Term
Loan,
4.121%,
(1-month
USD
LIBOR
+
4%),
3/31/27
...................................
United
States
116,535
116,754
0.03
Pathway
Vet
Alliance
LLC,
First
Lien,
Initial
Term
Loan,
4.121%,
(1-month
USD
LIBOR
+
4%),
3/31/27
......
United
States
1,543,250
1,546,151
0.47
Pathway
Vet
Alliance
LLC,
Replacement
Term
Loan,
3.865%,
(1-month
USD
LIBOR
+
3.75%),
12/31/27
...
United
States
555,556
556,600
0.17
Pluto
Acquisition
I,
Inc.,
Term
Loan,
B,
4.615%,
(1-month
USD
LIBOR
+
4.5%),
12/31/27
..................
United
States
231,958
233,408
0.07
4,607,971
1.38
a
a
a
a
a
a
Health
Care
Services
BrightSpring
Health
Services,
Term
Loan,
4.25%,
(1-month
USD
LIBOR
+
3.75%),
3/05/26
..........
United
States
300,000
302,063
0.09
CNT
Holdings
I
Corp.,
First
Lien,
Term
Loan
Facility,
4.5%,
(3-month
USD
LIBOR
+
3.75%),
11/08/27
.....
United
States
193,187
194,533
0.06
j
eResearchTechnology
,
Inc.,
First
Lien,
Initial
Term
Loan,
5.5%,
(1-month
USD
LIBOR
+
4.5%),
2/04/27
......
United
States
1,421,748
1,430,044
0.43
Gentiva
Health
Services,
Inc.,
First
Lien,
Term
Loan,
B,
3.375%,
(1-month
USD
LIBOR
+
3.25%),
7/02/25
....
United
States
947,440
949,515
0.29
National
Mentor
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.418%,
(1-month
USD
LIBOR
+
4.25%;
3-month
USD
LIBOR
+
4.25%),
3/09/26
......................
United
States
3,456,914
3,465,556
1.04
C,
4.51%,
(1-month
USD
LIBOR
+
4.25%),
3/09/26
..
United
States
158,198
158,594
0.05
Navicure
,
Inc.,
First
Lien,
Initial
Term
Loan,
4.121%,
(1-month
USD
LIBOR
+
4%),
10/22/26
............
United
States
3,234,872
3,238,915
0.98
Phoenix
Guarantor,
Inc.,
First
Lien,
Term
Loan,
B1,
3.38%,
(1-month
USD
LIBOR
+
3.25%),
3/05/26
.....
United
States
1,841,574
1,839,659
0.55
Pluto
Acquisition
I,
Inc.,
Incremental
Term
Loan,
5.5%,
(1-month
USD
LIBOR
+
5%),
6/22/26
.............
United
States
400,685
402,688
0.12
Radiology
Partners,
Inc.,
First
Lien,
Term
Loan,
B,
4.804%,
(1-month
USD
LIBOR
+
4.25%;
3-month
USD
LIBOR
+
4.25%),
7/09/25
......................
United
States
400,000
398,550
0.12
U.S.
Anesthesia
Partners,
Inc.,
First
Lien,
Initial
Term
Loan,
4%,
(3-month
USD
LIBOR
+
3%),
6/23/24
.....
United
States
296,923
293,105
0.09
12,673,222
3.82
a
a
a
a
a
a
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Health
Care
Technology
Inovalon
Holdings,
Inc.,
Refinancing
Date
Term
Loan,
3.188%,
(1-month
USD
LIBOR
+
3%),
4/02/25
......
United
States
335,737
$
336,816
0.10
Household
Products
Knowlton
Development
Corp.,
Inc.,
2020
Initial
Term
Loan,
3.871%,
(1-month
USD
LIBOR
+
3.75%),
12/22/25
..................................
Canada
1,056,188
1,051,346
0.32
Human
Resource
&
Employment
Services
j
UKG,
Inc.,
First
Lien,
2021
Incremental
Term
Loan,
4%,
(2-month
USD
LIBOR
+
3.25%),
5/04/26
..........
United
States
703,428
707,449
0.21
Industrial
Machinery
Altra
Industrial
Motion
Corp.,
Term
Loan,
2.121%,
(1-month
USD
LIBOR
+
2%),
10/01/25
............
United
States
794,742
795,863
0.24
Navistar,
Inc.,
Term
Loan,
B,
3.63%,
(1-month
USD
LIBOR
+
3.5%),
11/06/24
......................
United
States
6,070,098
6,078,444
1.83
6,874,307
2.07
a
a
a
a
a
a
Insurance
Brokers
Alliant
Holdings
Intermediate
LLC,
2018
Initial
Term
Loan,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
5/09/25
....
United
States
2,147,970
2,141,118
0.64
Alliant
Holdings
Intermediate
LLC,
Term
Loan,
B3,
4.25%,
(1-month
USD
LIBOR
+
3.75%),
11/05/27
..........
United
States
88,097
88,363
0.03
2,229,481
0.67
a
a
a
a
a
a
Integrated
Telecommunication
Services
Global
Tel
Link,
First
Lien,
Term
Loan,
4.371%,
(1-month
USD
LIBOR
+
4.25%),
11/29/25
.................
United
States
4,788,520
4,417,410
1.33
Global
Tel
Link,
Second
Lien,
Term
Loan,
8.371%,
(1-month
USD
LIBOR
+
8.25%),
11/29/26
..........
United
States
2,479,737
1,926,755
0.58
West
Corp.,
Initial
Term
Loan,
LOAN
Note,
B,
5%,
(1-month
USD
LIBOR
+
4%;
3-month
USD
LIBOR
+
4%),
10/10/24
..............................
United
States
1,189,540
1,172,810
0.35
7,516,975
2.26
a
a
a
a
a
a
Internet
&
Direct
Marketing
Retail
MH
Sub
I
LLC
(Micro
Holding
Corp.),
First
Lien,
2020
June
New
Term
Loan,
4.75%,
(1-month
USD
LIBOR
+
3.75%),
9/13/24
.............................
United
States
473,306
475,377
0.15
MH
Sub
I
LLC
(Micro
Holding
Corp.),
First
Lien,
Amendment
No.
2
Initial
Term
Loan,
Internet
Brands
Inc
Note,
3.621%,
(1-month
USD
LIBOR
+
3.5%),
9/13/24
United
States
1,010,076
1,005,894
0.30
1,481,271
0.45
a
a
a
a
a
a
Internet
Services
&
Infrastructure
Barracuda
Networks,
Inc.,
First
Lien,
2020
Term
Loan,
4.5%,
(3-month
USD
LIBOR
+
3.75%),
2/12/25
......
United
States
737,877
739,566
0.22
Informatica
LLC,
Dollar
2020
Term
Loan,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
2/25/27
..........
United
States
1,449,050
1,448,405
0.44
TIBCO
Software,
Inc.,
Term
Loan,
B3,
3.88%,
(1-month
USD
LIBOR
+
3.75%),
6/30/26
..................
United
States
5,546,033
5,546,033
1.67
7,734,004
2.33
a
a
a
a
a
a
Investment
Banking
&
Brokerage
j
Citadel
Securities
LP,
Term
Loan,
B,
2.615%,
(1-month
USD
LIBOR
+
2.5%),
2/29/28
...................
United
States
1,300,000
1,295,665
0.39
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Investment
Banking
&
Brokerage
(continued)
Deerfield
Dakota
Holding
LLC,
First
Lien,
Initial
Dollar
Term
Loan,
4.75%,
(1-month
USD
LIBOR
+
3.75%),
4/09/27
...................................
United
States
1,417,866
$
1,427,486
0.43
j
Jane
Street
Group
LLC,
Term
Loan,
2.875%,
(1-month
USD
LIBOR
+
2.75%),
1/31/28
..................
United
States
939,848
938,339
0.28
3,661,490
1.10
a
a
a
a
a
a
IT
Consulting
&
Other
Services
Aventiv
Technologies
LLC,
First
Lien,
Initial
Term
Loan,
5.5%,
(3-month
USD
LIBOR
+
4.5%),
11/01/24
......
United
States
979,798
898,612
0.27
Conduent
,
Inc.,
Term
Loan,
B,
2.621%,
(1-month
USD
LIBOR
+
2.5%),
12/07/23
......................
United
States
233,470
231,720
0.07
Milano
Acquisition
Corp.,
Term
Loan,
B,
4.75%,
(3-month
USD
LIBOR
+
4%),
10/01/27
...................
United
States
1,254,863
1,260,359
0.38
2,390,691
0.72
a
a
a
a
a
a
Leisure
Facilities
24
Hour
Fitness
Worldwide,
Inc.,
Exit
Term
Loan,
5.24%,
(1-month
USD
LIBOR
+
5%),
12/30/25
............
United
States
4,667,993
4,170,082
1.25
Leisure
Products
j
Hercules
Achievement,
Inc.
(Varsity
Brands
Holding
Co.,
Inc.),
First
Lien,
Initial
Term
Loan,
4.5%,
(1-month
USD
LIBOR
+
3.5%),
12/16/24
......................
United
States
499,144
480,044
0.14
NASCAR
Holdings
LLC,
Initial
Term
Loan,
2.897%,
(1-month
USD
LIBOR
+
2.75%),
10/19/26
.........
United
States
1,458,332
1,460,381
0.44
1,940,425
0.58
a
a
a
a
a
a
Life
&
Health
Insurance
AssuredPartners
,
Inc.,
2020
February
Refinancing
Term
Loan,
3.647%,
(1-month
USD
LIBOR
+
3.5%),
2/12/27
United
States
1,445,094
1,439,531
0.43
Metal
&
Glass
Containers
BWay
Holding
Co.,
Initial
Term
Loan,
3.381%,
(1-month
USD
LIBOR
+
3.25%),
4/03/24
..................
United
States
2,536,034
2,494,824
0.75
Movies
&
Entertainment
Banijay
Entertainment
SAS,
Facility
USD
Term
Loan,
B,
3.881%,
(1-month
USD
LIBOR
+
3.75%),
3/01/25
....
France
422,940
420,430
0.13
Diamond
Sports
Group
LLC,
Term
Loan,
3.38%,
(1-month
USD
LIBOR
+
3.25%),
8/24/26
..................
United
States
3,573,131
3,069,927
0.93
Lions
Gate
Capital
Holdings
LLC,
Term
Loan,
A,
1.871%,
(1-month
USD
LIBOR
+
1.75%),
3/22/23
..........
United
States
3,611,298
3,593,241
1.08
William
Morris
Endeavor
Entertainment
LLC
(IMG
Worldwide
Holdings
LLC),
First
Lien,
Term
Loan,
B-1,
2.88%,
(1-month
USD
LIBOR
+
2.75%),
5/18/25
.....
United
States
648,266
607,039
0.18
7,690,637
2.32
a
a
a
a
a
a
Office
Services
&
Supplies
Staples,
Inc.,
2019
Refinancing
New
Term
Loan,
B1,
5.214%,
(3-month
USD
LIBOR
+
5%),
4/16/26
......
United
States
1,242,986
1,220,457
0.37
Oil
&
Gas
Exploration
&
Production
k
Fieldwood
Energy
LLC,
First
Lien,
Closing
Date
Term
Loan,
6.25%,
(3-month
USD
LIBOR
+
5.25%),
4/11/22
United
States
25,460,344
6,609,123
1.99
UTEX
Industries,
Inc.,
First
Out
Term
Loan,
8.5%,
(1-month
USD
LIBOR
+
7%),
12/03/24
............
United
States
1,251,016
1,261,963
0.38
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Oil
&
Gas
Exploration
&
Production
(continued)
UTEX
Industries,
Inc.,
Second
Out
Term
Loan,
11%,
(1-month
USD
LIBOR
+
9.5%),
12/03/25
..........
United
States
764,899
$
759,801
0.23
8,630,887
2.60
a
a
a
a
a
a
Oil
&
Gas
Storage
&
Transportation
Centurion
Pipeline
Co.
LLC,
Initial
Term
Loan,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
9/29/25
..........
United
States
1,286,031
1,284,423
0.39
Packaged
Foods
&
Meats
B&G
Foods,
Inc.,
Term
Loan,
B4,
2.621%,
(1-month
USD
LIBOR
+
2.5%),
10/10/26
......................
United
States
295,597
296,731
0.09
CSM
Bakery
Solutions
Ltd.,
First
Lien,
Term
Loan,
7.25%,
(3-month
USD
LIBOR
+
6.25%),
1/04/22
..........
United
States
6,207,732
6,175,141
1.86
g
CSM
Bakery
Solutions
Ltd.,
Second
Lien,
Term
Loan,
8.75%,
PIK,
(3-month
USD
LIBOR
+
7.75%),
7/05/21
.
United
States
2,131,331
2,093,135
0.63
JBS
USA
Lux
SA,
New
Term
Loan,
2.121%,
(1-month
USD
LIBOR
+
2%),
5/01/26
....................
Luxembourg
894,571
895,085
0.27
9,460,092
2.85
a
a
a
a
a
a
Paper
Packaging
Berry
Global,
Inc.,
Term
Loan,
Y,
2.133%,
(1-month
USD
LIBOR
+
2%),
7/01/26
........................
United
States
627,749
627,630
0.19
Paper
Products
d
Appvion
Operations,
Inc.,
Term
Loan,
7%,
(3-month
USD
LIBOR
+
6%),
6/12/26
........................
United
States
4,145,882
4,107,885
1.24
Personal
Products
Coty,
Inc.,
USD
Term
Loan,
B,
2.382%,
(1-month
USD
LIBOR
+
2.25%),
4/07/25
......................
United
States
248,598
235,011
0.07
Sunshine
Luxembourg
VII
SARL,
Facility
Term
Loan,
B1,
5%,
(3-month
USD
LIBOR
+
4%),
10/01/26
........
Luxembourg
2,108,700
2,118,073
0.64
2,353,084
0.71
a
a
a
a
a
a
Pharmaceuticals
Bausch
Health
Cos.,
Inc.,
Initial
Term
Loan,
3.121%,
(1-month
USD
LIBOR
+
3%),
6/02/25
.............
United
States
2,956,012
2,962,249
0.89
Property
&
Casualty
Insurance
Asurion
LLC,
New
Term
Loan,
B-8,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
12/23/26
.................
United
States
3,637,035
3,623,397
1.09
Asurion
LLC,
Replacement
Term
Loan,
B6,
3.147%,
(1-month
USD
LIBOR
+
3%),
11/03/23
............
United
States
95,252
95,222
0.03
Asurion
LLC,
Second
Lien,
Replacement
Term
Loan,
B2,
6.621%,
(1-month
USD
LIBOR
+
6.5%),
8/04/25
.....
United
States
80,342
80,643
0.02
Asurion
LLC,
Term
Loan
,
5.365%,
(1-month
USD
LIBOR
+
5.25%),
12/31/27
...
United
States
52,263
52,786
0.02
B9,
3.365%,
(1-month
USD
LIBOR
+
3.25%),
12/31/27
United
States
1,001,142
996,762
0.30
4,848,810
1.46
a
a
a
a
a
a
Publishing
j
Cengage
Learning,
Inc.,
2016
Refinancing
Term
Loan,
5.25%,
(3-month
USD
LIBOR
+
4.25%),
6/07/23
.....
United
States
1,598,433
1,541,497
0.46
Nielsen
Finance
LLC,
Dollar
Term
Loan,
B5,
4.75%,
(1-month
USD
LIBOR
+
3.75%),
6/04/25
..........
United
States
210,529
212,833
0.06
1,754,330
0.52
a
a
a
a
a
a
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Railroads
Ventia
Midco
Pty.
Ltd.,
2017
Refinancing
USD
Term
Loan,
B,
5%,
(3-month
USD
LIBOR
+
4%),
5/21/26
.......
Australia
5,681,715
$
5,681,715
1.71
Research
&
Consulting
Services
j
Dun
&
Bradstreet
Corp.
(The),
Initial
Term
Loan
Borrowing,
B,
3.378%,
(1-month
USD
LIBOR
+
3.25%),
2/06/26
...................................
United
States
510,614
512,621
0.16
Restaurants
IRB
Holding
Corp.,
Fourth
Amendment
Incremental
Term
Loan,
4.25%,
(3-month
USD
LIBOR
+
3.25%),
12/15/27
United
States
358,059
359,817
0.11
Security
&
Alarm
Services
Prime
Security
Services
Borrower
LLC,
First
Lien,
2019
Refinancing
Term
Loan,
B1,
4.25%,
(3-month
USD
LIBOR
+
3.25%;
1-month
USD
LIBOR
+
3.25%),
9/23/26
...................................
United
States
450,145
450,788
0.13
Specialized
Consumer
Services
Sedgwick
Claims
Management
Services,
Inc.
(Lightning
Cayman
Merger
Sub
Ltd.),
Initial
Term
Loan,
3.371%,
(1-month
USD
LIBOR
+
3.25%),
12/31/25
.........
United
States
497,462
495,251
0.15
j
WeddingWire
,
Inc.,
First
Lien,
Initial
Term
Loan,
4.711%,
(2-month
USD
LIBOR
+
4.5%;
3-month
USD
LIBOR
+
4.5%),
12/19/25
.............................
United
States
600,000
590,625
0.18
1,085,876
0.33
a
a
a
a
a
a
Specialized
Finance
j
Sabre
GLBL,
Inc.,
2020
Other
Term
Loan,
B,
4.75%,
(1-month
USD
LIBOR
+
4%),
12/17/27
............
United
States
86,896
87,928
0.02
Verscend
Holding
Corp.,
Term
Loan,
B,
4.621%,
(1-month
USD
LIBOR
+
4.5%),
8/27/25
...................
United
States
1,817,279
1,821,822
0.55
1,909,750
0.57
a
a
a
a
a
a
Specialty
Chemicals
Illuminate
Buyer
LLC,
Term
Loan,
4.121%,
(1-month
USD
LIBOR
+
4%),
6/30/27
........................
United
States
283,769
285,100
0.08
j
INEOS
226
Ltd.,
USD
Term
Loan,
B,
3.25%,
(1-month
USD
LIBOR
+
2.75%),
1/21/26
..................
United
Kingdom
515,166
517,850
0.16
j
NIC
Acquisition
Corp.,
Term
Loan,
4.5%,
(3-month
USD
LIBOR
+
3.75%),
12/29/27
.....................
United
States
372,468
374,332
0.11
1,177,282
0.35
a
a
a
a
a
a
Specialty
Stores
j
Party
City
Holdings,
Inc.,
2018
Replacement
Term
Loan,
3.25%,
(2-month
USD
LIBOR
+
2.5%;
3-month
USD
LIBOR
+
2.5%),
8/19/22
.......................
United
States
1,395,675
1,349,443
0.41
Petco
Animal
Supplies,
Inc.,
Term
Loan,
4.25%,
(3-month
USD
LIBOR
+
3.25%),
1/26/23
..................
United
States
521,411
521,560
0.16
PetSmart,
Inc.,
Term
Loan,
B,
4.5%,
(3-month
USD
LIBOR
+
3.75%),
12/31/27
.....................
United
States
518,127
515,536
0.15
Woof
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
4.5%,
(1-year
USD
LIBOR
+
3.75%),
12/21/27
...........
United
States
320,887
322,760
0.10
2,709,299
0.82
a
a
a
a
a
a
Systems
Software
j
athenahealth
,
Inc.,
First
Lien,
Term
Loan,
B,
4.633%,
(1-month
USD
LIBOR
+
4.5%),
2/11/26
...........
United
States
3,101,430
3,116,457
0.94
DCert
Buyer,
Inc.,
First
Lien,
Initial
Term
Loan,
4.121%,
(1-month
USD
LIBOR
+
4%),
10/16/26
............
United
States
2,571,347
2,580,990
0.78
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Principal
Amount
*
a
Value
%
of
Net
Assets
a
a
a
a
a
a
h,i
Senior
Floating
Rate
Interests
(continued)
Systems
Software
(continued)
Hyland
Software,
Inc.,
First
Lien,
2018
Refinancing
Term
Loan,
4.25%,
(1-month
USD
LIBOR
+
3.5%),
7/01/24
.
United
States
1,238,598
$
1,245,416
0.37
Idera
,
Inc.,
First
Lien,
Initial
Term
Loan,
5%,
(3-month
USD
LIBOR
+
4%),
6/28/24
....................
United
States
880,841
883,413
0.27
Ivanti
Software,
Inc.,
First
Lien,
Initial
Term
Loan,
5.75%,
(3-month
USD
LIBOR
+
4.75%),
12/01/27
.........
United
States
500,000
505,000
0.15
Perforce
Software,
Inc.,
First
Lien,
New
Term
Loan,
3.871%,
(1-month
USD
LIBOR
+
3.75%),
7/01/26
....
United
States
1,806,750
1,805,621
0.54
Quest
Software
US
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan,
4.462%,
(3-month
USD
LIBOR
+
4.25%),
5/16/25
United
States
990,012
991,427
0.30
11,128,324
3.35
a
a
a
a
a
a
Technology
Hardware,
Storage
&
Peripherals
Amentum
Government
Services
Holdings
LLC,
First
Lien,
Initial
Term
Loan,
3.621%,
(1-month
USD
LIBOR
+
3.5%),
1/29/27
..............................
United
States
895,500
892,702
0.27
Amentum
Government
Services
Holdings
LLC,
Incremental
Term
Loan,
5.5%,
(3-month
USD
LIBOR
+
4.75%),
1/29/27
.............................
United
States
620,130
624,781
0.19
1,517,483
0.46
a
a
a
a
a
a
Trucking
Avis
Budget
Car
Rental
LLC,
New
Term
Loan,
B,
2.38%,
(1-month
USD
LIBOR
+
2.25%),
8/06/27
..........
United
States
2,789,660
2,734,369
0.82
Kenan
Advantage
Group
Holdings
Corp.
(The),
Initial
Canadian
Term
Loan,
4%,
(1-month
USD
LIBOR
+
3%),
7/29/22
...................................
United
States
197,715
196,005
0.06
Kenan
Advantage
Group
Holdings
Corp.
(The),
Initial
U.S.
Term
Loan,
4%,
(1-month
USD
LIBOR
+
3%),
7/29/22
United
States
831,433
824,241
0.25
a
Onsite
Rental
Group
Operations
Pty.
Ltd.,
Term
Loan,
B,
5.5%,
(1-month
USD
LIBOR
+
4.5%),
10/26/22
......
Australia
7,844,959
7,307,064
2.20
11,061,679
3.33
a
a
a
a
a
a
Wireless
Telecommunication
Services
Altice
France
SA,
USD
Incremental
Term
Loan,
B-13,
4.127%,
(1-month
USD
LIBOR
+
4%),
8/14/26
......
France
1,173,810
1,176,093
0.35
Total
Senior
Floating
Rate
Interests
(Cost
$292,932,140)
..................
266,896,973
80.37
Shares/Units
Escrows
and
Litigation
Trusts
b,f
99
Escrow
Issuer,
Inc.,
Escrow
Account,
144A
........
United
States
600,000
583,353
0.18
a,b
Millennium
Corporate
Claim
Trust,
Escrow
Account
....
United
States
6,589,709
—
0.00
a,b
Millennium
Lender
Claim
Trust,
Escrow
Account
......
United
States
6,589,709
—
0.00
a,b,d
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.........
United
States
98,704
—
0.00
Total
Escrows
and
Litigation
Trusts
(Cost
$599,509)
......................
583,353
0.18
Total
Long
Term
Investments
(Cost
$402,538,915)
........................
326,149,678
98.22
a
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Master
Series
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
See
Abbreviations
on
page
28
.
Short
Term
Investments
a
a
Principal
Amount
*
a
Value
%
of
Net
Assets
aa
aa
aa
aa
aa
aa
Repurchase
Agreements
l
Joint
Repurchase
Agreement,
0.04%,
2/01/21
(Maturity
Value
$16,879,957)
BNP
Paribas
Securities
Corp.
(Maturity
Value
$9,980,274)
Deutsche
Bank
Securities,
Inc.
(Maturity
Value
$2,907,573)
HSBC
Securities
(USA),
Inc.
(Maturity
Value
$3,992,110)
Collateralized
by
U.S.
Government
Agency
Securities,
3.5%
-
5%,
11/20/41
-
2/20/50;
U.S.
Treasury
Bonds,
6.25%
-
7.63%,
11/15/22
-
8/15/23;
and
U.S.
Treasury
Note,
1.63%,
11/15/22
(valued
at
$17,222,208)
.............................................
16,879,900
$
16,879,900
5.08
Total
Repurchase
Agreements
(Cost
$16,879,900)
........................
16,879,900
5.08
a
a
a
Total
Short
Term
Investments
(Cost
$16,879,900
)
.........................
16,879,900
5.08
a
Total
Investments
(Cost
$419,418,815)
..................................
$343,029,578
103.30
Other
Assets,
less
Liabilities
...........................................
(10,958,839)
(3.30)
Net
Assets
...........................................................
$332,070,739
100.00
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.01%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
9
regarding
restricted
securities.
d
See
Note
10
regarding
holdings
of
5%
voting
securities.
e
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
f
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
January
31,
2021,
the
aggregate
value
of
these
securities
was
$5,106,767,
representing
1.5%
of
net
assets.
g
Income
may
be
received
in
additional
securities
and/or
cash.
h
See
Note
1(d)
regarding
senior
floating
rate
interests.
i
The
coupon
rate
shown
represents
the
rate
at
period
end.
j
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
k
See
Note
7
regarding
credit
risk
and
defaulted
securities.
l
See
Note
1(b)
regarding
joint
repurchase
agreement.
Franklin
Floating
Rate
Master
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
January
31,
2021
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
Franklin
Floating
Rate
Master
Series
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$320,324,910
Cost
-
Controlled
affiliates
(Note
3
d
and
10
)
.....................................................
24,162,179
Cost
-
Non-controlled
affiliates
(Note
3
d
and
10
)
..................................................
58,051,826
Cost
-
Unaffiliated
repurchase
agreements
......................................................
16,879,900
Value
-
Unaffiliated
issuers
..................................................................
$285,261,203
Value
-
Controlled
affiliates
(Note
3
d
and
10
)
.....................................................
23,810,535
Value
-
Non-controlled
affiliates
(Note
3
d
and
10
)
.................................................
17,077,940
Value
-
Unaffiliated
r
epurchase
agreements
......................................................
16,879,900
Cash
....................................................................................
804,606
Receivables:
Investment
securities
sold
...................................................................
2,908,801
Dividends
and
interest
.....................................................................
1,240,336
Total
assets
..........................................................................
347,983,321
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
14,548,959
Management
fees
.........................................................................
130,759
Distributions
to
shareholders
.................................................................
1,176,818
Accrued
expenses
and
other
liabilities
...........................................................
56,046
Total
liabilities
.........................................................................
15,912,582
Net
assets,
at
value
.................................................................
$332,070,739
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$722,636,905
Total
distributable
earnings
(losses)
.............................................................
(390,566,166)
Net
assets,
at
value
.................................................................
$332,070,739
Shares
outstanding
.........................................................................
46,356,375
Net
asset
value
and
maximum
offering
price
per
share
($332,070,739÷46,356,375
shares
outstanding)
..........
$7.16
Franklin
Floating
Rate
Master
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
January
31,
2021
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
Franklin
Floating
Rate
Master
Series
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$157,447
Controlled
affiliates
(Note
3
d
and
10
)
...........................................................
329,943
Non-controlled
affiliates
(Note
3
d
and
10
)
.......................................................
134,040
Interest:
Unaffiliated
issuers
........................................................................
7,594,794
Unaffiliated
issuers:
Payment-in-kind
.........................................................................
638,399
Non-controlled
affiliates
(Note
3
d
and
10
)
.......................................................
193,710
Total
investment
income
...................................................................
9,048,333
Expenses:
Management
fees
(Note
3
a
)
...................................................................
948,607
Custodian
fees
(Note
4
)
......................................................................
1,355
Reports
to
shareholders
......................................................................
2,812
Registration
and
filing
fees
....................................................................
53
Professional
fees
...........................................................................
96,822
Trustees'
fees
and
expenses
..................................................................
11,188
Other
....................................................................................
13,057
Total
expenses
.........................................................................
1,073,894
Expense
reductions
(Note
4
)
...............................................................
(1,789)
Expenses
waived/paid
by
affiliates
(Note
3
d
and
3
e
)
.............................................
(123,862)
Net
expenses
.........................................................................
948,243
Net
investment
income
................................................................
8,100,090
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(23,748,133)
Non-controlled
affiliates
(Note
3
d
and
10
)
......................................................
(2,479,118)
Net
realized
gain
(loss)
..................................................................
(26,227,251)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
33,746,230
Controlled
affiliates
(Note
3
d
)
...............................................................
898,402
Non-controlled
affiliates
(Note
3
d
and
10
)
......................................................
818,917
Net
change
in
unrealized
appreciation
(depreciation)
............................................
35,463,549
Net
realized
and
unrealized
gain
(loss)
............................................................
9,236,298
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$17,336,388
Franklin
Floating
Rate
Master
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
Franklin
Floating
Rate
Master
Series
Six
Months
Ended
January
31,
2021
(unaudited)
Year
Ended
July
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$8,100,090
$34,395,151
Net
realized
gain
(los
s)
.................................................
(26,227,251)
(65,558,706)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
35,463,549
(29,805,223)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
17,336,388
(60,968,778)
Distributions
to
shareholders
..............................................
(9,121,491)
(39,188,896)
Capital
share
transactions
(Note
2
)
..........................................
(70,864,366)
(559,801,591)
Net
increase
(decrease)
in
net
assets
...................................
(62,649,469)
(659,959,265)
Net
assets:
Beginning
of
period
.....................................................
394,720,208
1,054,679,473
End
of
period
..........................................................
$332,070,739
$394,720,208
Franklin
Floating
Rate
Master
Trust
19
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
Franklin
Floating
Rate
Master
Series
1.
Organization
and
Significant
Accounting
Policies
Franklin
Floating
Rate
Master
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
two separate
funds
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
Franklin
Floating
Rate
Master
Series
(Fund)
is
included
in
this
report.
The
Fund’s
shares
are
exempt
from
registration
under
the
Securities
Act
of
1933. 
The
following
summarizes
the
Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund’s
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Fund’s
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Joint
Repurchase
Agreement
The
Fund
enters
into
a
joint
repurchase
agreement
whereby
its
uninvested
cash
balance
is
deposited
into
a
joint
cash
account
with
other
funds
managed
by
the
investment
manager
or
an
affiliate
of
the
investment
manager
and
is
used
to
invest
in
one
or
more
repurchase
agreements.
The
value
and
face
amount
of
the
joint
repurchase
agreement
are
allocated
to
the
funds
based
on
their
pro-rata
interest.
A
repurchase
agreement
is
accounted
for
as
a
loan
by
the
Fund
to
the
seller,
collateralized
by
securities
which
are
delivered
to
the
Fund's
custodian.
The
fair
value,
including
accrued
interest,
of
the
initial
collateralization
is
required
to
be
at
least
102%
of
the
dollar
amount
invested
by
the
funds,
with
the
value
of
the
underlying
securities
marked
to
market
daily
to
maintain
coverage
of
at
least
100%.
Repurchase
agreements
are
subject
to
the
terms
of
Master
Repurchase
Agreements
(MRAs)
with
approved
counterparties
(sellers).
The
MRAs
contain
various
provisions,
including
but
not
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
20
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
limited
to
events
of
default
and
maintenance
of
collateral
for
repurchase
agreements.
In
the
event
of
default
by
either
the
seller
or
the
Fund,
certain
MRAs
may
permit
the
non-
defaulting
party
to
net
and
close-out
all
transactions,
if
any,
traded
under
such
agreements.
The
Fund
may
sell
securities
it
holds
as
collateral
and
apply
the
proceeds
towards
the
repurchase
price
and
any
other
amounts
owed
by
the
seller
to
the
Fund
in
the
event
of
default
by
the
seller.
This
could
involve
costs
or
delays
in
addition
to
a
loss
on
the
securities
if
their
value
falls
below
the
repurchase
price
owed
by
the
seller.
The
joint
repurchase
agreement
held
by
the Fund
at
period
end,
as
indicated
in
the
Statement
of
Investments,
had
been
entered
into
on
January
29,
2021.
c.
Securities
Purchased
on
a
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
Sufficient
assets
have
been
segregated
for
these
securities.
d.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
On
July
27,
2017,
the
United
Kingdom's
Financial
Conduct
Authority
announced
its
intention
to
cease
sustaining
LIBOR
after
2021.
There
remains
uncertainty
regarding
the
future
utilization
of
LIBOR
and
the
nature
of
any
replacement
rate.
As
such,
the
potential
effect
of
a
transition
away
from
LIBOR
on
the
Fund
or
the
Fund's
investments
that
use
or
may
use
a
floating
rate
based
on
LIBOR
cannot
yet
be
determined.
e.
Income
Taxes
The
Fund
is
a
disregarded
entity
for
U.S.
income
tax
purposes.
As
such,
no
provision
has
been
made
for
income
taxes
because
all
income,
expenses,
gains
and
losses
are
allocated
to
a
non-U.S.
beneficial
owner
for
inclusion
in
its
individual
income
tax
return,
as
applicable.
f.
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.
The
Fund's gross
investment
income
is
distributed
to
the
owner
daily
and
paid
monthly.
Net
capital
gains
(or
losses)
realized
by
the
Fund
will
not
be
distributed.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Joint
Repurchase
Agreement
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
21
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
h.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
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
January
31,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
January
31,
2021,
the
annualized
gross
effective
investment
management
fee
rate
was
0.530%
of
the
Fund’s
average
daily
net
assets. 
Six
Months
Ended
January
31,
2021
Year
Ended
July
31,
2020
Shares
Amount
Shares
Amount
Shares
sold
...................................
786,560
$5,555,832
3,720,913
$29,708,156
Shares
redeemed
...............................
(10,867,020)
(76,420,198)
(76,295,798)
(589,509,747)
Net
increase
(decrease)
..........................
(10,080,460)
$(70,864,366)
(72,574,885)
$(559,801,591)
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.530%
Up
to
and
including
$2.5
billion
0.450%
Over
$2.5
billion,
up
to
and
including
$6.5
billion
0.430%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.400%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.390%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.380%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.370%
In
excess
of
$21.5
billion
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
22
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(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
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Transfer
Agent
Fees
Investor
Services,
under
terms
of
an
agreement,
performs
shareholder
servicing
for
the
Fund
and
is
not
paid
by
the Fund
for
the
services.
d.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies
for
purposes
other
than
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
January
31,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
e.
Waiver
and
Expense
Reimbursements
Advisers
has
voluntarily
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
expenses
(excluding
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
of
the
Fund
do
not
exceed
0.53%,
based
on
the
average
net
assets
of
the
Fund.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Advisers
may
discontinue
this
waiver
at
any
time
upon
notice
to
the
Board.
f.
Other
Affiliated
Transactions
At
January
31,
2021,
Franklin
Floating
Rate
Fund,
PLC
owned
100%
of
the
Fund's
outstanding
shares.
Investment
activities
of
this
shareholder
could
have
a
material
impact
on
the
Fund.
4.
Expense
Offset
Arrangement
The
Fund
 has
entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
period
ended
January
31,
2021
,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Floating
Rate
Master
Series
Controlled
Affiliates
Dividends
Franklin
Liberty
Senior
Loan
ETF
$22,912,133
$—
$—
$
—
$
898,402
$
23,810,535
957,785
$
329,943
Non-Controlled
Affiliates
Dividends
Franklin
Floating
Rate
Income
Fund
$10,750,395
$—
$(7,344,028)
$(2,480,862)
$2,592,775
$3,518,280
461,717
$134,040
Total
Affiliated
Securities
....
$33,662,528
$—
$(7,344,028)
$(2,480,862)
$3,491,177
$27,328,815
$463,983
3.
Transactions
with
Affiliates
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
23
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
5.
Income
Taxes
At
January
31,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
bond
discounts
and
premiums
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
January
31,
2021,
aggregated
$91,141,877
and
$150,662,529,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
January
31,
2021,
the
Fund
had
81.5%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
and
unrated
securities,
if
any.
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
January
31,
2021,
the
aggregate
value
of
these
securities
was
$12,697,142,
representing
3.8%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statement
of
Investments.
8. Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
9.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
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
January
31,
2021,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Cost
of
investments
..........................................................................
$420,194,677
Unrealized
appreciation
........................................................................
$6,793,941
Unrealized
depreciation
........................................................................
(83,959,040)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(77,165,099)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
24
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
10.
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.
During
the
period
ended
January
31,
2021,
investments
in
“affiliated
companies”
were
as
follows:
11.
Shareholder
Distributions
For
the
period
ended
January
31,
2021,
the
Fund
made
the
following
distributions:
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Floating
Rate
Master
Series
563,596
a
Appvion
Operations,
Inc.
......................
6/14/18-4/12/19
$
5,922,237
$
9,451,775
1,048,435
Remington
Outdoor
Co.,
Inc.
...................
4/13/12-4/12/19
43,510,469
—
Total
Restricted
Securities
(Value
is
2.85%
of
Net
Assets)
.............
$49,432,706
$9,451,775
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$4,107,885
as
of
January
31,
2021.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Principal
Amount
Held
at
End
of
Period
Investment
Income
Franklin
Floating
Rate
Master
Series
Non-Controlled
Affiliates
Dividends
Appvion
Operations,
Inc.
....
$
11,034,433
$
—
$
—
$
—
$
(1,582,658)
$
9,451,775
563,596
$
—
Remington
Outdoor
Co.,
Inc.
.
262,109
—
—
—
(262,109)
—
1,048,435
—
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.........
—
—
—
—
—
—
98,704
—
Interest
Appvion
Operations,
Inc.,
Term
Loan,
7.337%,
(3-month
USD
LIBOR
+
6%)
..........
5,483,153
1,250
a
(1,449,171)
a
1,744
70,909
4,107,885
4,145,882
193,710
Total
Affiliated
Securities
(Value
is
4.1%
of
Net
Assets)
$16,779,695
$1,250
$(1,449,171)
1,744
(1,773,858)
$13,559,660
$193,710
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
Payment
Date
Amount
Per
Share
8/31/2020
$0.033759
9/30/2020
0.033033
10/30/2020
0.033140
11/30/2020
0.030121
12/31/2020
0.027713
1/29/2021
0.025190
Total
$0.182956
9.
Restricted
Securities
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
25
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
12.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2
billion
(Global
Credit
Facility)
which
matured
on
February
5,
2021.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Effective
February
5,
2021,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one
year
term,
maturing
February
4,
2022,
for
a
total
of
$2.675
billion.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
January
31,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
13.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
January
31,
2021,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Floating
Rate
Master
Series
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
—
$
—
$
—
a
$
—
Industrial
Machinery
....................
—
4,093,124
—
4,093,124
Leisure
Facilities
.......................
—
234,020
—
234,020
Oil
&
Gas
Exploration
&
Production
.........
—
829,287
—
829,287
Paper
Products
........................
—
—
9,451,775
9,451,775
Trucking
.............................
—
—
117,091
117,091
Management
Investment
Companies
.........
28,936,765
—
—
28,936,765
Preferred
Stocks
........................
—
635,506
—
635,506
Warrants
..............................
—
—
573
573
Corporate
Bonds
:
Airlines
..............................
—
1,336,219
—
1,336,219
Broadcasting
.........................
—
1,163,145
—
1,163,145
Construction
Materials
..................
—
816,563
—
816,563
Oil
&
Gas
Storage
&
Transportation
.........
—
471,375
—
471,375
Packaged
Foods
&
Meats
................
—
102,250
—
102,250
Specialty
Stores
.......................
—
273,786
—
273,786
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
26
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
At
January
31,
2021,
the
reconciliation is
as follows:
Level
1
Level
2
Level
3
Total
Franklin
Floating
Rate
Master
Series
(continued)
Assets:
Corporate
Bonds:
Trucking
.............................
$
—
$
—
$
9,847,797
$
9,847,797
Wireless
Telecommunication
Services
.......
—
360,076
—
360,076
Senior
Floating
Rate
Interests
...............
—
253,501,890
13,395,083
266,896,973
Escrows
and
Litigation
Trusts
...............
—
583,353
—
a
583,353
Short
Term
Investments
...................
—
16,879,900
—
16,879,900
Total
Investments
in
Securities
...........
$28,936,765
$281,280,494
$32,812,319
$343,029,578
a
Includes
securities
determined
to
have
no
value
at
January
31,
2021.
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Cost
Basis
Adjust-
ments
a
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Floating
Rate
Master
Series
Assets:
Investments
in
Securities:
Common
Stocks
Aerospace
&
Defense
.
$
262,109
$
—
$
—
$
—
$
—
$
—
$
—
$
(262,109)
$
—
b
$
(262,109)
Paper
Products
.....
11,034,433
—
—
—
—
—
—
(1,582,658)
9,451,775
(1,582,658)
Trucking
..........
171,018
—
—
—
—
—
—
(53,927)
117,091
(53,927)
Warrants
Industrial
Machinery
..
—
—
—
—
—
—
—
573
573
57
3
Corporate
Bonds
Trucking
..........
8,881,805
—
—
—
—
473,588
—
492,404
9,847,797
492,404
Senior
Floating
Rate
Interests
Aerospace
&
Defense
.
13,196,628
29,704
(6,848,631)
—
—
5,479
30,017
(325,178)
6,088,019
(280,766)
Trucking
..........
6,916,082
—
—
—
—
(90,015)
—
480,997
7,307,064
480,997
Escrows
and
Litigation
Trusts
...........
—
b
—
—
—
—
—
—
—
—
b
—
Total
Investments
in
Securities
.
$40,462,075
$29,704
$(6,848,631)
$—
$—
$
389,052
$
30,017
$
(1,249,898)
$32,812,319
$
(1,2
05
,4
8
6)
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
other
cost
basis
adjustments.
b
Includes
securities
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
27
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
Significant
unobservable
valuation
inputs
for
material
Level
3
assets
and/or
liabilities
and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
January
31,
2021,
are
as
follows:
14.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022. Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
15.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Floating
Rate
Master
Series
Assets:
Investments
in
Securities:
Common
Stocks:
Paper
Products
...........
$9,451,775
Discounted
cash
flow
Weighted
average
cost
of
capital
19.3%
Decrease
b
Free
cash
flow
$107.5
mil
Increase
b
Discount
for
lack
of
marketability
8.9%
Decrease
b
Long
term
growth
2.5%
Increase
Corporate
Bonds:
Trucking
.................
9,847,797
Discounted
cash
flow
Discount
rate
15.6%
Decrease
b
Free
cash
flow
$11.4
mil
Increase
Senior
Floating
Rate
Interests:
Aerospace
&
Defense
......
6,088,019
Recovery
value
Asset
value
estimate
$58.5
mil
Increase
b
Trucking
................
7,307,064
Discounted
cash
flow
Discount
rate
10.2%
Decrease
b
Free
cash
flow
$8.6
mil
Increase
All
Other
Investments
.........
117,664
c,d
Total.
.........................
$32,812,319
a
Represents
the
directional
change
in
the
fair
value
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
b
Represents
a
significant
impact
to
fair
value
and
net
assets.
c
Includes
financial
instruments
with
values
derived
using
private
transaction
prices
or
non-public
third
party
pricing
information
which
is
unobservable.
May
also
include
fair
value
of
immaterial
financial
instruments
and
developed
using
various
valuation
techniques
and
unobservable
inputs.
d
Includes
securities
determined
to
have
no
value
at
January
31,
2021.
13.
Fair
Value
Measurements
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
28
Semiannual
Report
Franklin
Floating
Rate
Master
Series
(continued)
Abbreviations
Currency
USD
United
States
Dollar
Selected
Portfolio
ETF
Exchange-Traded
Fund
LIBOR
London
Inter-Bank
Offered
Rate
PIK
Payment-In-Kind
Your
Fund’s
Expenses
Franklin
Floating
Rate
Income
Fund
1
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Beginning
Account
Value
8/1/20
Ending
Account
Value
1/31/21
Expenses
Paid
During
Period
8/1/20–1/31/21
1,
2
Ending
Account
Value
1/31/21
Expenses
Paid
During
Period
8/1/20–1/31/21
1,
2
a
Net
Annualized
Expense
Ratio
2
$1,000
$1,069.68
$3.13
$1,022.18
$3.06
0.60%
Franklin
Floating
Rate
Master
Trust
Shareholder
Information
2
franklintempleton.com
Annual
Report
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Franklin
Floating
Rate
Master
Trust
Financial
Highlights
Franklin
Floating
Rate
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
January
31,
2021
(unaudited)
Year
Ended
July
31,
Year
Ended
July
31,
2016
a
2020
2019
2018
2017
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$7.34
$8.61
$9.45
$10.04
$9.83
$10.00
Income
from
investment
operations
b
:
Net
investment
income
..............
0.164
c
0.412
0.695
0.698
0.686
0.403
Net
realized
and
unrealized
gains
(losses)
0.335
(1.227)
(0.827)
(0.588)
0.214
(0.174)
Total
from
investment
operations
........
0.499
(0.815)
(0.132)
0.110
0.900
0.229
Less
distributions
from:
Net
investment
income
..............
(0.214)
(0.455)
(0.708)
(0.700)
(0.690)
(0.399)
Net
asset
value,
end
of
period
..........
$7.63
$7.34
$8.61
$9.45
$10.04
$9.83
Total
return
d
.......................
6.97%
(9.74)%
(1.48)%
1.30%
9.25%
2.46%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.74%
0.73%
0.71%
0.68%
0.69%
0.71%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
Net
investment
income
...............
4.36%
5.42%
7.66%
7.25%
6.82%
5.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$193,618
$202,101
$325,091
$363,071
$303,689
$348,682
Portfolio
turnover
rate
................
30.99%
67.04%
30.93%
55.93%
62.11%
42.49%
g
a
For
the
period
November
6,
2015
(commencement
of
operations)
to
July
31,
2016.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
securities
received
from
purchases
in-kind.
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited),
January
31,
2021
Franklin
Floating
Rate
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
1.9%
Aerospace
&
Defense
0.0%
a,b,c,d
Remington
Outdoor
Co.,
Inc.
.............................
United
States
732,184
$
—
Hotels,
Restaurants
&
Leisure
0.1%
24
Hour
Fitness
Worldwide,
Inc.
..........................
United
States
50,709
114,095
Paper
&
Forest
Products
1.8%
a,b,c
Appvion
Operations,
Inc.
................................
United
States
209,637
3,515,715
Road
&
Rail
0.0%
†
a,b
Onsite
Rental
Group
Operations
Pty.
Ltd.
...................
Australia
4,747,033
94,545
Total
Common
Stocks
(Cost
$35,590,696)
......................................
3,724,355
Preferred
Stocks
0.2%
Hotels,
Restaurants
&
Leisure
0.2%
b
24
Hour
Fitness
Worldwide,
Inc.
..........................
United
States
120,097
309,850
b
Total
Preferred
Stocks
(Cost
$162,071)
.........................................
309,850
Principal
Amount
*
Corporate
Bonds
4.1%
Road
&
Rail
4.1%
a,e
Onsite
Rental
Group
Operations
Pty.
Ltd.
,
PIK,
6.1
%
,
10/26/23
...
Australia
8,660,319
7,951,425
Total
Corporate
Bonds
(Cost
$9,300,535)
.......................................
7,951,425
f,g
Senior
Floating
Rate
Interests
89.9%
Aerospace
&
Defense
2.2%
e
Alloy
FinCo
Ltd.,
Facility
Term
Loan
,
B
,
14
%
,
PIK,
(
3-month
USD
LIBOR
+
0.5
%
),
3/06/25
...............................
United
Kingdom
3,930,545
1,972,977
Dynasty
Acquisition
Co.,
Inc.,
2020
Term
Loan
,
B1,
3.754%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
..........
United
States
1,566,315
1,509,144
B2,
3.754%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
..........
United
States
842,105
811,368
4,293,489
a
a
a
a
a
a
Airlines
4.1%
Allegiant
Travel
Co.,
Replacement
Term
Loan
,
3.214
%
,
(
3-month
USD
LIBOR
+
3
%
),
2/05/24
............................
United
States
2,448,420
2,398,840
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.,
Initial
Term
Loan
,
4.75
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
10/20/27
.................
United
States
692,540
727,298
Delta
Air
Lines,
Inc.,
Term
Loan
,
5.75
%
,
(
1-month
USD
LIBOR
+
4.75
%
),
12/30/38
....................................
United
States
497,500
507,512
JetBlue
Airways
Corp.,
Term
Loan
,
6.25
%
,
(
3-month
USD
LIBOR
+
5.25
%
),
6/17/24
.....................................
United
States
138,639
143,867
Kestrel
Bidco
,
Inc.,
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3
%
),
12/11/26
..........................................
Canada
4,247,100
4,100,044
7,877,561
a
a
a
a
a
a
Auto
Components
3.5%
Adient
US
LLC,
Initial
Term
Loan
,
4.394
%
,
(
1-month
USD
LIBOR
+
4.25%;
3-month
USD
LIBOR
+
4.25%
),
5/06/24
.............
United
States
4,115,964
4,128,826
Highline
Aftermarket
Acquisition
LLC,
First
Lien,
Term
Loan
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.5
%
),
11/09/27
..................
United
States
519,163
519,812
TRICO
Group
LLC,
First
Lien,
Term
Loan
,
B3
,
8.5
%
,
(
3-month
USD
LIBOR
+
7.5
%
),
2/02/24
...............................
United
States
1,811,766
1,849,133
h
Truck
Hero,
Inc.,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
1/31/28
.....................................
United
States
185,393
186,065
6,683,836
a
a
a
a
a
a
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
f,g
Senior
Floating
Rate
Interests
(continued)
Automobiles
2.0%
Thor
Industries,
Inc.,
Initial
USD
Term
Loan
,
3.938
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
2/01/26
..............................
United
States
3,776,338
$
3,785,779
Banks
1.5%
Finastra
Ltd.,
First
Lien,
Dollar
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
6/13/24
...............................
United
Kingdom
2,967,691
2,921,321
Capital
Markets
0.5%
Russell
Investments
US
Institutional
Holdco,
Inc.,
2025
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3
%
),
5/30/25
.................
United
States
80,060
80,085
Vertical
Midco
GmbH,
USD
Term
Loan
,
4.567
%
,
(
6-month
USD
LIBOR
+
4.25
%
),
6/30/27
..............................
Germany
944,886
954,992
1,035,077
a
a
a
a
a
a
Chemicals
0.0%
†
Illuminate
Buyer
LLC,
Term
Loan
,
4.121
%
,
(
1-month
USD
LIBOR
+
4
%
),
6/30/27
.......................................
United
States
99,750
100,218
Commercial
Services
&
Supplies
3.6%
CCI
Buyer,
Inc.,
Term
Loan
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
12/17/27
..........................................
United
States
177,505
178,970
Legalzoom.com,
Inc.,
First
Lien,
2018
Term
Loan
,
4.621
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
11/21/24
..........................
United
States
3,856,196
3,863,445
Staples,
Inc.,
2019
Refinancing
New
Term
Loan
,
B1
,
5.214
%
,
(
3-month
USD
LIBOR
+
5
%
),
4/16/26
.....................
United
States
2,904,432
2,851,789
6,894,204
a
a
a
a
a
a
Construction
Materials
0.5%
White
Cap
Buyer
LLC,
Initial
Closing
Date
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
4
%
),
10/19/27
....................
United
States
1,047,375
1,054,864
Containers
&
Packaging
1.5%
BWay
Holding
Co.,
Initial
Term
Loan
,
3.381
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
4/03/24
...................................
United
States
2,902,525
2,855,359
Diversified
Consumer
Services
0.5%
h
KUEHG
Corp.,
Term
Loan
,
B-3
,
4.75
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
2/21/25
.....................................
United
States
1,000,000
971,250
Diversified
Financial
Services
1.2%
Jefferies
Finance
LLC,
2020
Term
Loan
,
3.938
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
9/30/27
..............................
United
States
997,500
1,001,241
h
Sabre
GLBL,
Inc.,
2020
Other
Term
Loan
,
B
,
4.75
%
,
(
1-month
USD
LIBOR
+
4
%
),
12/17/27
...............................
United
States
251,632
254,621
Verscend
Holding
Corp.,
Term
Loan
,
B
,
4.621
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
8/27/25
...............................
United
States
1,072,697
1,075,378
2,331,240
a
a
a
a
a
a
Diversified
Telecommunication
Services
2.3%
Global
Tel
Link,
First
Lien,
Term
Loan
,
4.371
%
,
(
1-month
USD
LIBOR
+
4.25
%
),
11/29/25
.............................
United
States
4,905,691
4,525,500
Electric
Utilities
1.1%
EFS
Cogen
Holdings
I
LLC,
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
10/01/27
...................................
United
States
2,074,369
2,072,212
Entertainment
5.6%
Banijay
Entertainment
SAS,
Facility
USD
Term
Loan
,
B
,
3.881
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
3/01/25
..................
France
2,423,925
2,409,539
Diamond
Sports
Group
LLC,
Term
Loan
,
3.38
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
8/24/26
..............................
United
States
7,441,271
6,393,317
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
f,g
Senior
Floating
Rate
Interests
(continued)
Entertainment
(continued)
William
Morris
Endeavor
Entertainment
LLC
(IMG
Worldwide
Holdings
LLC),
First
Lien,
Term
Loan
,
B-1
,
2.88
%
,
(
1-month
USD
LIBOR
+
2.75
%
),
5/18/25
..............................
United
States
2,104,371
$
1,970,544
10,773,400
a
a
a
a
a
a
Food
&
Staples
Retailing
2.2%
GNC
Holdings,
Inc.,
Second
Lien,
Term
Loan
,
6.234
%
,
(
3-month
USD
LIBOR
+
6
%
),
10/30/26
...........................
United
States
5,062,377
3,796,782
Shearer's
Foods
LLC,
First
Lien,
Term
Loan
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
9/23/27
................................
United
States
502,006
504,516
4,301,298
a
a
a
a
a
a
Food
Products
0.7%
e
CSM
Bakery
Solutions
Ltd.,
Second
Lien,
Term
Loan
,
8.75
%
,
PIK,
(
3-month
USD
LIBOR
+
7.75
%
),
7/05/21
..................
United
States
1,367,014
1,342,516
Health
Care
Providers
&
Services
6.6%
ADMI
Corp.,
Amendment
No.
3
Incremental
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
4
%
),
12/23/27
....................
United
States
614,381
620,525
ADMI
Corp.,
Amendment
No.
4
Refinancing
Term
Loan
,
3.75
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
12/23/27
.................
United
States
1,500,000
1,500,000
CNT
Holdings
I
Corp.,
First
Lien,
Term
Loan
Facility
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
11/08/27
.........................
United
States
141,992
142,981
h
eResearchTechnology
,
Inc.,
First
Lien,
Initial
Term
Loan
,
5.5
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
2/04/27
...................
United
States
1,429,909
1,438,252
Global
Medical
Response,
Inc.,
2018
New
Term
Loan
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
3/14/25
..................
United
States
1,197,784
1,197,635
National
Mentor
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.418%,
(1-month
USD
LIBOR
+
4.25%;
3-month
USD
LIBOR
+
4.25%),
3/09/26
.....................................
United
States
244,854
245,466
C,
4.51%,
(1-month
USD
LIBOR
+
4.25%),
3/09/26
..........
United
States
11,205
11,233
h,i
National
Mentor
Holdings,
Inc.,
Incremental
Term
Loan
,
B,
TBD,
3/09/26
.....................................
United
States
568,293
569,714
C,
TBD,
3/09/26
.....................................
United
States
21,935
21,990
Navicure
,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.121
%
,
(
1-month
USD
LIBOR
+
4
%
),
10/22/26
...............................
United
States
3,003,135
3,006,889
Pathway
Vet
Alliance
LLC,
First
Lien,
Initial
Delayed
Draw
Term
Loan
,
4.121
%
,
(
1-month
USD
LIBOR
+
4
%
),
3/31/27
.........
United
States
172,521
172,846
Pathway
Vet
Alliance
LLC,
First
Lien,
Initial
Term
Loan
,
4.121
%
,
(
1-month
USD
LIBOR
+
4
%
),
3/31/27
.....................
United
States
2,284,661
2,288,957
Pluto
Acquisition
I,
Inc.,
Incremental
Term
Loan
,
5.5
%
,
(
1-month
USD
LIBOR
+
5
%
),
6/22/26
................................
United
States
306,676
308,210
Pluto
Acquisition
I,
Inc.,
Term
Loan
,
B
,
4.615
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
12/31/27
..............................
United
States
517,941
521,178
U.S.
Anesthesia
Partners,
Inc.,
First
Lien,
Initial
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3
%
),
6/23/24
.....................
United
States
804,991
794,639
12,840,515
a
a
a
a
a
a
Hotels,
Restaurants
&
Leisure
1.2%
24
Hour
Fitness
Worldwide,
Inc.,
Exit
Term
Loan
,
5.24
%
,
(
1-month
USD
LIBOR
+
5
%
),
12/30/25
...........................
United
States
2,275,842
2,033,089
Caesars
Resort
Collection
LLC,
Term
Loan
,
B
,
2.871
%
,
(
1-month
USD
LIBOR
+
2.75
%
),
12/23/24
.........................
United
States
79,808
78,585
IRB
Holding
Corp.,
Fourth
Amendment
Incremental
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.25
%
),
12/15/27
............
United
States
258,254
259,522
2,371,196
a
a
a
a
a
a
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
f,g
Senior
Floating
Rate
Interests
(continued)
Household
Durables
1.9%
Playtika
Holding
Corp.,
Term
Loan
,
B
,
7
%
,
(
3-month
USD
LIBOR
+
6
%
),
12/10/24
......................................
United
States
3,637,721
$
3,665,203
Household
Products
0.5%
Knowlton
Development
Corp.,
Inc.,
2020
Initial
Term
Loan
,
3.871
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
12/22/25
.................
Canada
880,767
876,729
Insurance
0.2%
Alliant
Holdings
Intermediate
LLC,
Term
Loan
,
B3
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
11/05/27
.........................
United
States
127,801
128,187
AssuredPartners
,
Inc.,
2020
June
Incremental
Term
Loan
,
5.5
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
2/12/27
...................
United
States
248,125
250,451
Asurion
LLC,
Term
Loan
,
5.365
%
,
(
1-month
USD
LIBOR
+
5.25
%
),
12/31/27
..........................................
United
States
17,721
17,898
396,536
a
a
a
a
a
a
Internet
&
Direct
Marketing
Retail
0.3%
MH
Sub
I
LLC
(Micro
Holding
Corp.),
First
Lien,
2020
June
New
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
9/13/24
....
United
States
634,108
636,883
IT
Services
9.5%
Arches
Buyer,
Inc.,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
4
%
),
12/06/27
......................................
United
States
441,084
443,762
Aventiv
Technologies
LLC,
First
Lien,
Initial
Term
Loan
,
5.5
%
,
(
3-month
USD
LIBOR
+
4.5
%
),
11/01/24
..................
United
States
10,937,166
10,030,912
Aventiv
Technologies
LLC,
Second
Lien,
Initial
Term
Loan
,
9.25
%
,
(
6-month
USD
LIBOR
+
8.25
%
),
11/01/25
..................
United
States
1,645,000
1,348,168
Barracuda
Networks,
Inc.,
First
Lien,
2020
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
2/12/25
..................
United
States
851,298
853,247
Informatica
LLC,
Dollar
2020
Term
Loan
,
3.371
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
2/25/27
..............................
United
States
307,675
307,538
Milano
Acquisition
Corp.,
Term
Loan
,
B
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
10/01/27
...............................
United
States
1,461,106
1,467,506
Pitney
Bowes,
Inc.,
Incremental
Term
Loan
,
B
,
5.63
%
,
(
1-month
USD
LIBOR
+
5.5
%
),
1/07/25
...............................
United
States
3,991,995
3,990,758
18,441,891
a
a
a
a
a
a
Leisure
Products
2.8%
Bass
Pro
Group
LLC,
Initial
Term
Loan
,
5.75
%
,
(
1-month
USD
LIBOR
+
5
%
),
9/25/24
................................
United
States
4,937,847
4,954,586
h
Hercules
Achievement,
Inc.
(Varsity
Brands
Holding
Co.,
Inc.),
First
Lien,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
12/16/24
..........................................
United
States
569,268
547,485
5,502,071
a
a
a
a
a
a
Machinery
2.8%
Navistar,
Inc.,
Term
Loan
,
B
,
3.63
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
11/06/24
..........................................
United
States
5,486,430
5,493,974
Media
3.2%
h
Cengage
Learning,
Inc.,
2016
Refinancing
Term
Loan
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
6/07/23
..................
United
States
1,208,094
1,165,062
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
,
B
,
3.711
%
,
(
2-month
USD
LIBOR
+
3.5%;
3-month
USD
LIBOR
+
3.5%
),
8/21/26
...........................................
United
States
2,538,385
2,482,058
Nielsen
Finance
LLC,
Dollar
Term
Loan
,
B5
,
4.75
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
6/04/25
..............................
United
States
763,384
771,736
Radiate
HoldCo
LLC,
Term
Loan
,
B
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
9/25/26
......................................
United
States
229,677
230,156
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
f,g
Senior
Floating
Rate
Interests
(continued)
Media
(continued)
Univision
Communications,
Inc.,
First
Lien,
2020
Replacement
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
3/15/26
........
United
States
995,000
$
998,453
h
Virgin
Media
Bristol
LLC,
Term
Loan
,
Q
,
2.627
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
1/31/29
..............................
United
States
502,109
503,678
6,151,143
a
a
a
a
a
a
Multiline
Retail
0.4%
Harbor
Freight
Tools
USA,
Inc.,
Initial
Term
Loan
(2020)
,
4
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
10/19/27
.................
United
States
809,023
811,147
Oil,
Gas
&
Consumable
Fuels
3.2%
EG
Group
Ltd.,
Additional
Facility
USD
Term
Loan
,
4.254
%
,
(
3-month
USD
LIBOR
+
4
%
),
2/07/25
............................
United
Kingdom
575,356
575,407
h,j
Fieldwood
Energy
LLC,
Debtor-in-possession
Facility
Term
Loan
,
9.75
%
,
(
1-month
USD
LIBOR
+
8.75
%
),
8/04/21
.............
United
States
245,778
251,308
k
Fieldwood
Energy
LLC,
First
Lien,
Closing
Date
Term
Loan
,
6.25
%
,
(
3-month
USD
LIBOR
+
5.25
%
),
4/11/22
..................
United
States
20,615,151
5,351,384
6,178,099
a
a
a
a
a
a
Paper
&
Forest
Products
2.9%
Appvion
Operations,
Inc.,
Term
Loan
,
7
%
,
(
3-month
USD
LIBOR
+
6
%
),
6/12/26
.......................................
United
States
5,611,231
5,559,804
Personal
Products
0.5%
Coty,
Inc.,
USD
Term
Loan
,
B
,
2.382
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
4/07/25
.....................................
United
States
1,011,796
956,496
Professional
Services
0.2%
h
Dun
&
Bradstreet
Corp.
(The),
Initial
Term
Loan
Borrowing
,
B
,
3.378
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
2/06/26
............
United
States
115,170
115,622
UKG,
Inc.,
First
Lien,
2021
Incremental
Term
Loan
,
4
%
,
(
2-month
USD
LIBOR
+
3.25
%
),
5/04/26
..........................
United
States
200,879
202,027
317,649
a
a
a
a
a
a
Real
Estate
Management
&
Development
0.8%
h
Cushman
&
Wakefield
U.S.
Borrower
LLC,
Replacement
Term
Loan
,
2.873
%
,
(
1-month
USD
LIBOR
+
2.75
%
),
8/21/25
............
United
States
1,540,250
1,537,200
Road
&
Rail
5.0%
Kenan
Advantage
Group
Holdings
Corp.
(The),
Initial
Canadian
Term
Loan
,
4
%
,
(
1-month
USD
LIBOR
+
3
%
),
7/29/22
.............
United
States
362,502
359,366
Kenan
Advantage
Group
Holdings
Corp.
(The),
Initial
U.S.
Term
Loan
,
4
%
,
(
1-month
USD
LIBOR
+
3
%
),
7/29/22
.............
United
States
1,524,400
1,511,214
a
Onsite
Rental
Group
Operations
Pty.
Ltd.,
Term
Loan
,
B
,
5.5
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
10/26/22
..................
Australia
6,334,266
5,899,953
Ventia
Midco
Pty.
Ltd.,
2017
Refinancing
USD
Term
Loan
,
B
,
5
%
,
(
3-month
USD
LIBOR
+
4
%
),
5/21/26
.....................
Australia
1,838,844
1,838,844
9,609,377
a
a
a
a
a
a
Software
13.3%
h
athenahealth
,
Inc.,
First
Lien,
Term
Loan
,
B
,
4.633
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
2/11/26
...............................
United
States
2,158,667
2,169,125
Blackboard,
Inc.,
First
Lien,
Term
Loan
,
B5
,
7
%
,
(
3-month
USD
LIBOR
+
6
%
),
6/30/24
................................
United
States
3,017,725
3,014,572
DCert
Buyer,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.121
%
,
(
1-month
USD
LIBOR
+
4
%
),
10/16/26
...........................
United
States
2,156,196
2,164,282
Epicor
Software
Corp.,
Term
Loan
,
B
,
5.25
%
,
(
1-month
USD
LIBOR
+
4.25
%
),
7/30/27
...................................
United
States
590,244
594,045
Greeneden
U.S.
Holdings
I
LLC,
Term
Loan
,
B
,
4.75
%
,
(
1-month
USD
LIBOR
+
4
%
),
12/01/27
...........................
United
States
1,645,286
1,653,512
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
f,g
Senior
Floating
Rate
Interests
(continued)
Software
(continued)
Hyland
Software,
Inc.,
First
Lien,
2018
Refinancing
Term
Loan
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
7/01/24
..............
United
States
264,832
$
266,290
Idera
,
Inc.,
First
Lien,
Initial
Term
Loan
,
5
%
,
(
3-month
USD
LIBOR
+
4
%
),
6/28/24
.......................................
United
States
531,989
533,543
Ivanti
Software,
Inc.,
First
Lien,
Initial
Term
Loan
,
5.75
%
,
(
3-month
USD
LIBOR
+
4.75
%
),
12/01/27
.........................
United
States
1,010,000
1,020,100
LogMeIn,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.881
%
,
(
1-month
USD
LIBOR
+
4.75
%
),
8/31/27
..............................
United
States
2,298,407
2,292,178
MA
Financeco
LLC,
Term
Loan
,
B4
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
6/05/25
.....................................
United
States
248,438
252,475
Mitchell
International,
Inc.,
First
Lien,
Amendment
No.
2
New
Term
Loan
Facility
,
4.75
%
,
(
1-month
USD
LIBOR
+
4.25
%
),
11/29/24
.
United
States
2,453,850
2,461,003
Perforce
Software,
Inc.,
First
Lien,
New
Term
Loan
,
3.871
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
7/01/26
..................
United
States
1,983,960
1,982,720
Quest
Software
US
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.462
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
5/16/25
............
United
States
2,872,463
2,876,571
Sophia
LP,
Term
Loan
,
B
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
10/07/27
..........................................
United
States
629,080
632,382
Surf
Holdings
SARL,
First
Lien,
Dollar
Term
Loan
,
3.726
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
3/05/27
...........................
Luxembourg
1,443,836
1,444,739
Veritas
US,
Inc.,
Term
Loan
,
B
,
6.5
%
,
(
3-month
USD
LIBOR
+
5.5
%
),
9/01/25
...........................................
United
States
2,413,307
2,431,407
25,788,944
a
a
a
a
a
a
Specialty
Retail
0.8%
h
Party
City
Holdings,
Inc.,
2018
Replacement
Term
Loan
,
3.25
%
,
(
2-month
USD
LIBOR
+
2.5%;
3-month
USD
LIBOR
+
2.5%
),
8/19/22
...........................................
United
States
202,817
196,099
h
Petco
Animal
Supplies,
Inc.,
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.25
%
),
1/26/23
..............................
United
States
987,003
987,284
PetSmart,
Inc.,
Term
Loan
,
B
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
12/31/27
..........................................
United
States
177,206
176,320
Woof
Holdings,
Inc.,
First
Lien,
Initial
Term
Loan
,
4.5
%
,
(
1-year
USD
LIBOR
+
3.75
%
),
12/21/27
.............................
United
States
232,015
233,369
1,593,072
a
a
a
a
a
a
Technology
Hardware,
Storage
&
Peripherals
0.6%
Amentum
Government
Services
Holdings
LLC,
Incremental
Term
Loan
,
5.5
%
,
(
3-month
USD
LIBOR
+
4.75
%
),
1/29/27
.........
United
States
770,000
775,775
Cardtronics
USA,
Inc.,
Initial
Term
Loan
,
5
%
,
(
1-month
USD
LIBOR
+
4
%
),
6/29/27
.......................................
United
States
429,711
431,995
1,207,770
a
a
a
a
a
a
Wireless
Telecommunication
Services
0.2%
Altice
France
SA,
USD
Incremental
Term
Loan
,
B-13
,
4.127
%
,
(
1-month
USD
LIBOR
+
4
%
),
8/14/26
.....................
France
335,528
336,181
Total
Senior
Floating
Rate
Interests
(Cost
$191,119,073)
.........................
174,091,004
Shares/Units
Escrows
and
Litigation
Trusts
0.0%
a,b,d
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.................
United
States
68,931
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$236,172,375)
...............................
186,076,634
a
Franklin
Floating
Rate
Master
Trust
Statement
of
Investments
(unaudited)
Franklin
Floating
Rate
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
See
Abbreviations
on
page
23
.
Short
Term
Investments
3.8%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
3.8%
l,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
7,294,069
$
7,294,069
Total
Money
Market
Funds
(Cost
$7,294,069)
...................................
7,294,069
Total
Short
Term
Investments
(Cost
$7,294,069
)
.................................
7,294,069
a
Total
Investments
(Cost
$243,466,444)
99.9%
...................................
$193,370,703
Other
Assets,
less
Liabilities
0.1%
.............................................
247,765
Net
Assets
100.0%
...........................................................
$193,618,468
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
9
regarding
restricted
securities.
d
See
Note
11
regarding
holdings
of
5%
voting
securities.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
See
Note
1(c)
regarding
senior
floating
rate
interests.
g
The
coupon
rate
shown
represents
the
rate
at
period
end.
h
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
i
A
portion
or
all
of
the
security
represents
an
unsettled
loan
commitment.
The
coupon
rate
is
to-be
determined
(TBD)
at
the
time
of
the
settlement
and
will
be
based
upon
a
reference
index/floor
plus
a
spread.
j
See
Note
10
regarding
unfunded
loan
commitments.
k
See
Note
7
regarding
credit
risk
and
defaulted
securities.
l
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
m
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Floating
Rate
Master
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
January
31,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
Franklin
Floating
Rate
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$202,867,265
Cost
-
Non-controlled
affiliates
(Note
3d
and
11)
..................................................
40,599,179
Value
-
Unaffiliated
issuers
..................................................................
$186,076,634
Value
-
Non-controlled
affiliates
(Note
3d
and
11)
..................................................
7,294,069
Cash
....................................................................................
319,323
Receivables:
Investment
securities
sold
...................................................................
6,128,476
Interest
.................................................................................
655,069
Unrealized
appreciation
on
unfunded
loan
commitments
..............................................
116,130
Total
assets
..........................................................................
200,589,701
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
5,965,231
Management
fees
.........................................................................
86,106
Distributions
to
shareholders
.................................................................
841,337
Accrued
expenses
and
other
liabilities
...........................................................
78,559
Total
liabilities
.........................................................................
6,971,233
Net
assets,
at
value
.................................................................
$193,618,468
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$275,943,004
Total
distributable
earnings
(losses)
.............................................................
(82,324,536)
Net
assets,
at
value
.................................................................
$193,618,468
Shares
outstanding
.........................................................................
25,393,087
Net
asset
value
per
share
....................................................................
$7.63
Franklin
Floating
Rate
Master
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
January
31,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
Franklin
Floating
Rate
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$74,471
Non-controlled
affiliates
(Note
3d
and
11)
.......................................................
2
Interest:
Unaffiliated
issuers
........................................................................
4,842,910
Total
investment
income
...................................................................
4,917,383
Expenses:
Management
fees
(Note
3a)
...................................................................
645,302
Custodian
fees
(Note
4)
......................................................................
539
Reports
to
shareholders
......................................................................
2,121
Registration
and
filing
fees
....................................................................
51
Professional
fees
...........................................................................
68,303
Trustees'
fees
and
expenses
..................................................................
7,557
Other
....................................................................................
6,290
Total
expenses
.........................................................................
730,163
Expense
reductions
(Note
4)
...............................................................
(855)
Expenses
waived/paid
by
affiliates
(Note
3d
and
3e)
.............................................
(133,859)
Net
expenses
.........................................................................
595,449
Net
investment
income
................................................................
4,321,934
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(7,931,420)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
16,963,199
Non-controlled
affiliates
(Note
3d
and
11)
......................................................
(183,046)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
16,780,153
Net
realized
and
unrealized
gain
(loss)
............................................................
8,848,733
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$13,170,667
Franklin
Floating
Rate
Master
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
Franklin
Floating
Rate
Income
Fund
Six
Months
Ended
January
31,
2021
(unaudited)
Year
Ended
July
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$4,321,934
$13,430,605
Net
realized
gain
(loss)
.................................................
(7,931,420)
(17,360,675)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
16,780,153
(21,278,694)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
13,170,667
(25,208,764)
Distributions
to
shareholders
..............................................
(5,694,920)
(14,505,083)
Capital
share
transactions
(Note
2)
..........................................
(15,958,621)
(83,275,623)
Net
increase
(decrease)
in
net
assets
...................................
(8,482,874)
(122,989,470)
Net
assets:
Beginning
of
period
.....................................................
202,101,342
325,090,812
End
of
period
..........................................................
$193,618,468
$202,101,342
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
Floating
Rate
Income
Fund
14
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Floating
Rate
Master
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
two separate
funds
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
Franklin
Floating
Rate
Income
Fund
(Fund)
is
included
in
this
report.
The
Fund’s
shares
are
exempt
from
registration
under
the
Securities
Act
of
1933.
The
following
summarizes
the
Fund’s
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
Sufficient
assets
have
been
segregated
for
these
securities.
c.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
15
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
On
July
27,
2017,
the
United
Kingdom's
Financial
Conduct
Authority
announced
its
intention
to
cease
sustaining
LIBOR
after
2021.
There
remains
uncertainty
regarding
the
future
utilization
of
LIBOR
and
the
nature
of
any
replacement
rate.
As
such,
the
potential
effect
of
a
transition
away
from
LIBOR
on
the
Fund
or
the
Fund's
investments
that
use
or
may
use
a
floating
rate
based
on
LIBOR
cannot
yet
be
determined.
d.
Income
Taxes
It
is the
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
January
31,
2021,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Senior
Floating
Rate
Interests
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
16
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
January
31,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
January
31,
2021,
the
annualized
gross
effective
investment
management
fee
rate
was
0.650%
of
the
Fund’s
average
daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund’s
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Transfer
Agent
Fees
Investor
Services,
under
terms
of
an
agreement,
performs
shareholder
servicing
for
the
Fund
and
is
not
paid
by
the Fund
for
the
services.
Six
Months
Ended
January
31,
2021
Year
Ended
July
31,
2020
Shares
Amount
Shares
Amount
Shares
redeemed
...............................
(2,152,468)
(15,958,621)
(10,220,758)
(83,275,623)
Net
increase
(decrease)
..........................
(2,152,468)
$(15,958,621)
(10,220,758)
$(83,275,623)
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.650%
Up
to
and
including
$500
million
0.550%
Over
$500
million,
up
to
and
including
$1
billion
0.500%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.450%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.425%
Over
$6.5
million,
up
to
and
including
$11.5
billion
0.400%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.390%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.380%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.370%
In
excess
of
$21.5
billion
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
17
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
d.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies
for
purposes
other
than
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
January
31,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
e.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
operating
expenses
(excluding
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
of
the
Fund
do
not
exceed
0.60%,
based
on
the
average
net
assets
until
November
30,
2021.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
f.
Other
Affiliated
Transactions
At
January
31,
2021,
the
shares
of
the
Fund
were
owned
by
the
following
investment
companies:
a
Investment
activities
of
significant
investment
companies
could
have
a
material
impact
on
the
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
period
ended
January
31,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Floating
Rate
Income
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$12,251,544
$46,233,695
$(51,191,170)
$—
$—
$7,294,069
7,294,069
$2
Total
Affiliated
Securities
....
$12,251,544
$46,233,695
$(51,191,170)
$—
$—
$7,294,069
$2
Shares
Percentage
of
Outstanding
Shares
a
Franklin
Strategic
Income
Fund
15,243,687
60.0%
Franklin
Floating
Rate
Daily
Access
Fund
4,630,114
18.2%
Franklin
Low
Duration
Total
Return
Fund
2,389,308
9.4%
Franklin
Total
Return
Fund
1,549,310
6.1%
Franklin
Strategic
Income
VIP
Fund
1,118,951
4.5%
Franklin
Floating
Rate
Master
Series
461,717
1.8%
Total
25,393,087
100.0%
3.
Transactions
with
Affiliates
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
18
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
July
31,
2020,
the
capital
loss
carryforwards
were
as
follows:
At
January
31,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
wash
sales
and
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
January
31,
2021,
aggregated
$57,283,200
and
$67,840,463,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
January
31,
2021,
the
Fund
had
94.2%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
and
unrated
securities,
if
any.
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
a
defaulted
security
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
January
31,
2021,
the
value
of
this
security
was
$5,351,384
representing
2.8%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statement
of
Investments.
8. Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$4,543,494
Long
term
................................................................................
16,688,383
Total
capital
loss
carryforwards
...............................................................
$21,231,877
Cost
of
investments
..........................................................................
$245,175,772
Unrealized
appreciation
........................................................................
$4,20
8,493
Unrealized
depreciation
........................................................................
(56,013,562)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(51,805,069)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
19
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
9.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
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
January
31,
2021,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
10.
Unfunded
Loan
Commitments
The
Fund
enters
into
certain
credit
agreements,
all
or
a
portion
of
which
may
be
unfunded.
The Fund
is
obligated
to
fund
these
loan
commitments
at
the
borrowers’
discretion.
Unfunded
loan
commitments
and
funded
portions
of
credit
agreements
are
marked
to
market
daily
and
any
unrealized
appreciation
or
depreciation
is
included
in
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations.
Funded
portions
of
credit
agreements
are
presented
in
the
Statement
of
Investments.
At
January
31,
2021,
unfunded
commitments
were
as
follows:
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Floating
Rate
Income
Fund
209,637
a
Appvion
Operations,
Inc
.......................
6/14/18
$
2,148,646
$
3,515,715
732,184
Remington
Outdoor
Co.,
Inc.
...................
11/06/15-1/26/18
33,305,110
—
Total
Restricted
Securities
(Value
is
1.82%
of
Net
Assets)
.............
$35,453,756
$3,515,715
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$5,559,804
as
of
January
31,
2021.
Borrower
Unfunded
Commitment
Fieldwood
Energy
LLC
$2,261,776
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
20
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
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.
During
the
period
ended
January
31,
2021,
investments
in
“affiliated
companies”
were
as
follows:
12.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2
billion
(Global
Credit
Facility)
which
matured
on
February
5,
2021.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Effective
February
5,
2021,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one
year
term,
maturing
February
4,
2022,
for
a
total
of
$2.675
billion.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
January
31,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
13.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Principal
Amount
Held
at
End
of
Period
Investment
Income
Franklin
Floating
Rate
Income
Fund
Non-Controlled
Affiliates
Dividends
Remington
Outdoor
Co.,
Inc.
.
$
183,046
$
—
$
—
$
—
$
(183,046)
$
—
732,184
$
—
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.........
—
—
—
—
—
—
68,931
—
Total
Affiliated
Securities
(Value
is
—%
of
Net
Assets)
$183,046
$—
$—
$
—
$
(183,046)
$—
$—
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
21
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
January
31,
2021,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
At
January
31,
2021,
the
reconciliation is
as follows:
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
January
31,
2021,
are
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Floating
Rate
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
—
$
—
$
—
a
$
—
Hotels,
Restaurants
&
Leisure
.............
—
114,095
—
114,095
Paper
&
Forest
Products
.................
—
—
3,515,715
3,515,715
Road
&
Rail
..........................
—
—
94,545
94,545
Preferred
Stocks
........................
—
309,850
—
309,850
Corporate
Bonds
........................
—
—
7,951,425
7,951,425
Senior
Floating
Rate
Interests
...............
—
168,191,051
5,899,953
174,091,004
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
7,294,069
—
—
7,294,069
Total
Investments
in
Securities
...........
$7,294,069
$168,614,996
$17,461,638
$193,370,703
Other
Financial
Instruments:
Unfunded
Loan
Commitments
..............
$
—
$
116,130
$
—
$
116,130
Total
Other
Financial
Instruments
.........
$—
$116,130
$—
$116,130
a
Includes
securities
determined
to
have
no
value
at
January
31,
2021.
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Cost
Basis
Adjust-
ments
a
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Floating
Rate
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
.
$
183,046
$
—
$
—
$
—
$
—
$
—
$
—
$
(183,046)
$
—
b
$
(183,046)
Paper
&
Forest
Products
4,104,406
—
—
—
—
—
—
(588,691)
3,515,715
(588,691)
Road
&
Rail
.......
138,088
—
—
—
—
—
—
(43,543)
94,545
(43,543)
Corporate
Bonds
:
Road
&
Rail
.......
7,171,452
—
—
—
—
404,068
—
375,905
7,951,425
375,905
Senior
Floating
Rate
Interests
:
Road
&
Rail
.......
5,584,261
—
—
—
—
(45,003)
—
360,695
5,899,953
360,695
Escrows
and
Litigation
Trusts
...........
—
b
—
—
—
—
—
—
—
—
b
—
Total
Investments
in
Securities
.
$17,181,253
$—
$—
$—
$—
$359,065
$—
$(78,680)
$17,461,638
$(78,680)
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
other
cost
basis
adjustments.
b
Includes
securities
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
22
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
14.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022. Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Floating
Rate
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Paper
&
Forest
Products
.......
$3,515,715
Discounted
cash
flow
Weighted
average
cost
of
capital
19.3%
Decrease
b
Free
cash
flow
$107.5
mil
Increase
b
Discount
for
lack
of
marketability
8.9%
Decrease
b
Long
term
growth
2.5%
Increase
Corporate
Bonds:
Road
&
Rail
................
7,951,425
Discounted
cash
flow
Discount
rate
15.6%
Decrease
b
Free
cash
flow
$9.2
mil
Increase
Senior
Floating
Rate
Interests:
Road
&
Rail
................
5,899,953
Discounted
cash
flow
Discount
rate
10.2%
Decrease
b
Free
cash
flow
$7.0
mil
Increase
All
Other
Investments
..........
 94,545
c,d
Total
......................
$17,461,638
a
Represents
the
directional
change
in
the
fair
value
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
b
Represents
a
significant
impact
to
fair
value
and
net
assets.
c
Includes
financial
instruments
with
values
derived
using
private
transaction
prices
or
non-public
third
party
pricing
information
which
is
unobservable.
May
also
include
fair
value
of
immaterial
financial
instruments
and
developed
using
various
valuation
techniques
and
unobservable
inputs.
d
Includes
securities
determined
to
have
no
value
at
January
31,
2021.
13.
Fair
Value
Measurements
(continued)
Franklin
Floating
Rate
Master
Trust
Notes
to
Financial
Statements
(unaudited)
23
franklintempleton.com
Semiannual
Report
Franklin
Floating
Rate
Income
Fund
(continued)
15.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure,
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Currency
USD
United
States
Dollar
Selected
Portfolio
LIBOR
London
Inter-Bank
Offered
Rate
PIK
Payment-In-Kind
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases. 
 
 
Item 4. Principal Accountant Fees and Services
.       
N/A
  
                                                  
 
Item 5.  Audit Committee
of Listed Registrants.       N/A
 
 
Item 6.  Schedule of Investments.                     N/A
 
 
Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.            N/A
 
 
Item 8.  Portfolio Managers of Closed-End Management Investment Companies.                               N/A
 
 
Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
 
 
Item 10. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a)
 Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b)
 Changes in Internal Controls.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                            N/A
 
 
Item 13. Exhibits.
 
(a) (1) Code of Ethics
 
 
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
 
 
(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
FRANKLIN FLOATING RATE MASTER TRUST
 
 
By __ S\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date March 26, 2021
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By _ S\MATTHEW T. HINKLE_______________________
      Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date March 26, 2021
 
 
 
 
By _ S\ROBERT G. KUBILIS________________________
     
Robert G. Kubilis
      Chief Financial Officer and Chief Accounting Officer
Date March 26, 2021