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_811-06481
 
Franklin Municipal Securities Trust
(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
 
_Craig S. Tyle, One Franklin Parkway, San Mateo, CA  94403-1906
(Name and address of agent for service)
 
Registrant's telephone number, including area code: _650 312-2000
 
Date of fiscal year end: 5/31
 
Date of reporting period: 11/30/20
 
Item 1. Reports to Stockholders.
 
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
High
Income
Fund
A
Series
of
Franklin
High
Income
Trust
November
30,
2020
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Not
part
of
the
semiannual
report
1
Shareholder
Letter
Dear
Shareholder:
During
the
six
months
ended
November
30,
2020,
reported
first-
and
second-quarter
2020
data
indicated
that
the
U.S.
economy
contracted
in
response
to
the
novel
coronavirus
(COVID-19)
pandemic.
In
2020’s
third
quarter,
the
economy
recovered
substantially
based
on
increased
business
and
residential
investment
and
consumer
spending.
Before
the
reporting
period,
the
U.S.
Federal
Reserve
(Fed),
in
its
efforts
to
support
U.S.
economic
activity,
lowered
the
target
range
for
the
federal
funds
rate
twice
in
March
2020
and
implemented
broad
quantitative
easing
measures
to
support
credit
markets.
During
the
period,
the
Fed
held
the
target
range
for
its
key
rate
unchanged
at
0.00%–0.25%,
but
it
continued
quantitative
easing
and
adjusted
its
policy
in
August
2020
to
allow
more
flexibility
to
keep
interest
rates
low,
while
maintaining
a
2%
average
inflation
target.
The
10-year
Treasury
yield,
which
moves
inversely
to
price,
rose
during
the
six
months
under
review.
During
the
period,
U.S.
Federal
Reserve
intervention
and
the
U.S.
economy’s
incremental
reopening
allayed
many
investors’
concerns
about
risk
assets,
contributing
to
lower
demand
for
U.S.
government
securities
and
accelerated
prepayments
for
mortgage-backed
securities,
while
demand
increased
for
corporate
bonds,
particularly
those
below
investment
grade.
In
this
environment,
investment-grade
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
posted
a
+1.79%
total
return,
and
below
investment-grade
corporate
bonds,
as
measured
by
the
Credit
Suisse
High
Yield
Index,
posted
a
+10.26%
total
return.
1
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
We
believe
active,
professional
investment
management
serves
investors
well.
We
also
recognize
the
important
role
of
financial
advisors
in
today’s
markets
and
encourage
investors
to
continue
to
seek
their
advice.
Amid
changing
markets
and
economic
conditions,
we
are
confident
investors
with
a
well-diversified
portfolio
and
a
patient,
long-term
outlook
should
be
well-positioned
for
the
years
ahead.
In
addition,
Franklin
High
Income
Fund’s
semiannual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
Please
remember
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Sonal
Desai,
Ph.D.
Executive
Vice
President,
Chief
Investment
Officer
of
Franklin
Templeton
Fixed
Income
This
letter
reflects
our
analysis
and
opinions
as
of
November
30,
2020
,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Franklin
High
Income
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
8
Financial
Highlights
and
Statement
of
Investments
9
Financial
Statements
26
Notes
to
Financial
Statements
30
Shareholder
Information
42
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Franklin
High
Income
Fund
This
semiannual
report
for
Franklin
High
Income
Fund
covers
the
period
ended
November
30,
2020
.
Your
Fund’s
Goals
and
Main
Investments
The
Fund
seeks
to
earn
a
high
level
of
current
income.
Its
secondary
goal
is
to
seek
capital
appreciation
to
the
extent
it
is
possible
and
consistent
with
the
Fund’s
principal
goal.
The
Fund
invests
predominantly
in
high
yield,
lower-rated
debt
securities
including
bonds,
notes,
debentures,
convertible
securities,
and
senior
and
subordinated
debt
securities.
The
Fund
may
also
invest
in
preferred
stocks.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+9.88%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Fund’s
new
primary
benchmark,
the
ICE
BofA
U.S.
High
Yield
Constrained
Index,
which
tracks
the
performance
of
high-yield
securities
traded
in
the
U.S.
bond
market,
posted
a
+10.42%
total
return.
1
The
Fund’s
former
primary
benchmark,
the
Credit
Suisse
(CS)
High
Yield
Index,
which
tracks
the
high-yield
debt
market,
posted
a
+10.26%
total
return.
2
The
ICE
BofA
U.S.
High
Yield
Constrained
Index
is
replacing
the
CS
High
Yield
Index
as
the
Fund’s
primary
benchmark.
The
investment
manager
believes
the
composition
of
the
ICE
BofA
U.S.
High
Yield
Constrained
Index
more
accurately
reflects
the
Fund’s
portfolio
composition.
The
Fund’s
peers
posted
a
+9.91%
total
return,
as
measured
by
the
Lipper
High
Yield
Funds
Classification
Average,
which
consists
of
funds
chosen
by
Lipper
that
aim
at
high
relative
current
yield
from
fixed
income
securities.
3
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
6
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Economic
and
Market
Overview
The
U.S.
bond
market,
as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
posted
modest
total
returns
during
the
six
months
ended
November
30,
2020,
as
markets
adjusted
to
the
disruption
caused
by
the
novel
coronavirus
(COVID-19)
pandemic.
Before
the
period,
investor
flight
to
perceived
safety
had
driven
the
10-year
U.S.
Treasury
yield
(which
moves
inversely
to
price)
to
intraday
record
lows,
while
corporate
bond
yields
increased,
reflecting
increased
credit
risk
amid
widespread
economic
disruption.
During
the
period,
however,
U.S.
Federal
Reserve
(Fed)
support
and
the
gradual
reopening
of
the
U.S.
economy
reduced
many
investors’
concerns
about
solvency,
and
corporate
bonds
rebounded.
Corporate
bonds,
particularly
high-yield
bonds,
also
benefited
from
the
resolution
of
the
U.S.
election
and
several
promising
vaccine
results.
The
Fed
maintained
the
federal
funds
target
rate
at
a
range
of
0.00%–0.25%
and
continued
its
program
of
open-ended
purchasing
of
government-backed
and
corporate
bonds
as
necessary
to
help
keep
markets
functioning,
significantly
expanding
its
balance
sheet.
Furthermore,
the
Fed
signaled
that
interest
rates
would
potentially
remain
low,
even
if
inflation
moderately
exceeded
the
Fed’s
2%
target
for
some
time.
U.S.
Treasury
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Treasury
Index,
posted
relatively
flat
total
returns
for
the
period.
The
10-year
U.S.
Treasury
yield
declined
to
a
new
record
closing
low
in
early
August
2020
and
rose
for
the
period,
but
it
remained
historically
low
despite
the
widening
U.S.
federal
budget
deficit
and
a
massive
increase
in
issuance.
Mortgage-backed
securities
Portfolio
Composition
11/30/20
%
of
Total
Net
Assets
Corporate
Bonds
97.2%
Other
0.9%
Short-Term
Investments
&
Other
Net
Assets
1.9%
1.
Source:
Morningstar.
2.
Source:
Credit
Suisse
Group.
3.
Source:
Lipper,
a
Thomson
Reuters
Company.
For
the
six-month
period
ended
11/30/20,
this
category
consisted
of
512
funds.
Lipper
calculations
do
not
include
sales
charges
or
expense
subsidization
by
a
fund’s
manager.
Fund
performance
relative
to
the
average
may
have
differed
if
these
or
other
factors
had
been
considered.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Franklin
High
Income
Fund
4
franklintempleton.com
Semiannual
Report
(MBS),
as
measured
by
the
Bloomberg
Barclays
MBS
Index,
posted
relatively
flat
returns
for
the
period
despite
Fed
support,
as
lower
interest
rates
led
to
accelerated
prepayments
from
mortgage
refinancing.
U.S.
corporate
bond
performance
was
strong
overall
but
varied
based
on
credit
rating,
reflecting
the
recovery
of
credit
markets
following
the
initial
COVID-19
shock.
As
Fed
support
tempered
many
investors’
concerns
about
credit
quality,
corporate
bonds
rebounded,
particularly
for
the
lower-rated
segment.
Consequently,
high-yield
corporate
bonds,
as
represented
by
the
Bloomberg
Barclays
U.S.
Corporate
High
Yield
Bond
Index,
advanced
significantly.
Investment-grade
corporate
bonds,
as
represented
by
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index,
also
posted
solid
performance.
Investment
Strategy
We
are
research
driven,
fundamental
investors
who
rely
on
our
team
of
analysts
to
provide
in-depth
industry
expertise
and
use
qualitative
and
quantitative
analysis
to
evaluate
security
issuers.
As
bottom-up
investors,
we
focus
primarily
on
individual
securities
but
consider
sectors
when
choosing
investments
and,
from
time
to
time,
may
have
significant
investments
in
certain
sectors.
In
selecting
securities,
we
do
not
rely
principally
on
the
ratings
assigned
by
rating
agencies,
but
perform
our
own
independent
investment
analysis
to
evaluate
the
creditworthiness
of
the
issuer.
We
consider
a
variety
of
factors,
including
the
issuer’s
experience
and
managerial
strength,
its
sensitivity
to
economic
conditions,
and
its
current
and
prospective
financial
condition.
Manager’s
Discussion
The
high
yield
corporate
bond
market
posted
positive
returns
for
the
six-month
period
under
review
ended
November
30,
2020,
as
the
ICE
BofA
U.S.
High
Yield
Constrained
Index
returned
+10.42%.
1
After
a
historic
decline
from
late
February
through
late
March,
financial
markets
continued
their
recovery
during
the
reporting
period,
against
the
backdrop
of
unprecedented
fiscal
and
monetary
measures
from
governments
around
the
world,
as
well
as
the
Fed.
Since
then,
continued
low
yields
across
the
U.S.
Treasury
curve
along
with
low
or
negative
government
bond
yields
globally
supported
demand
for
high-yield
(HY)
corporate
bonds.
While
actual
direct
and
indirect
purchases
of
HY
corporate
securities
by
the
Fed’s
Secondary
Market
Corporate
Facility
were
modest
during
the
period,
the
perceived
support
lowered
the
cost
of
capital
for
HY
companies
and
contributed
to
capital
markets
access.
All
of
these
factors
led
to
persistently
supportive
conditions
for
HY
corporate
bonds,
despite
bouts
of
risk-off
sentiment
driven
largely
by
factors
such
as
a
resurgence
in
global
COVID-19
cases,
and
the
political
impasse
regarding
additional
fiscal
stimulus
in
the
months
leading
up
to
the
U.S.
presidential
election.
November
was
a
particularly
strong
month
for
the
HY
market.
During
that
month,
CCC-
rated
bonds
posted
considerably
strong
performance
as
investors
digested
news
of
multiple
vaccines
on
the
horizon
and
the
prospect
of
a
split
U.S.
government
following
the
elections.
Against
the
current
backdrop
of
a
low
interest-rate
environment
globally
and
investors’
willingness
to
look
ahead
to
a
future
with
a
COVID-19
vaccine,
demand
for
the
HY
sector
remained
robust
at
period-end.
Several
factors
contributed
positively
to
the
Fund’s
performance
relative
to
the
ICE
BofA
U.S.
High
Yield
Constrained
Index
for
the
six-month
period
under
review.
Security
selection
was
a
key
contributor
to
relative
performance,
led
especially
by
the
energy
sector.
The
Fund
benefited
from
security
selection
in
several
additional
sectors
as
well,
such
as
industrials,
health
care
and
metals
Top
10
Holdings
11/30/20
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
1.7%
Diversified
Telecommunication
Services,
United
States
Cheniere
Energy
Partners
LP
1.7%
Oil,
Gas
&
Consumable
Fuels,
United
States
Occidental
Petroleum
Corp.
1.5%
Oil,
Gas
&
Consumable
Fuels,
United
States
HCA,
Inc.
1.4%
Health
Care
Providers
&
Services,
United
States
Centene
Corp.
1.4%
Health
Care
Providers
&
Services,
United
States
Sprint
Corp.
1.3%
Wireless
Telecommunication
Services,
United
States
Mauser
Packaging
Solutions
Holding
Co.
1.3%
Containers
&
Packaging,
United
States
Clearway
Energy
Operating
LLC
1.3%
Independent
Power
and
Renewable
Electricity
Producers,
United
States
Altice
France
Holding
SA
1.2%
Diversified
Telecommunication
Services,
Luxembourg
Tenet
Healthcare
Corp.
1.2%
Health
Care
Providers
&
Services,
United
States
Franklin
High
Income
Fund
5
franklintempleton.com
Semiannual
Report
and
mining.
The
Fund’s
yield-curve
positioning
contributed
to
results.
However,
industry
positioning
detracted
from
performance,
driven
by
the
Fund’s
overweighted
positioning
in
some
defensive
industries
and
underweighted
positioning
in
some
industries
that
have
been
negatively
impacted
by
COVID-19.
The
Fund’s
higher
quality
bias
hindered
results,
as
CCC
rated
bonds
notably
outperformed
BB
and
B
rated
bonds
during
the
performance
period
in
review.
The
Fund
held
only
cash
bonds
during
the
period
(for
the
bond
portion
of
the
portfolio)
and
had
no
exposure
to
derivatives.
Thank
you
for
your
continued
participation
in
Franklin
High
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Glenn
I.
Voyles,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
November
30,
2020
,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
November
30,
2020
Franklin
High
Income
Fund
6
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
11/30/20
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+9.88%
+5.76%
1-Year
+6.71%
+2.71%
5-Year
+40.41%
+6.21%
10-Year
+72.18%
+5.18%
Advisor
6-Month
+9.94%
+9.94%
1-Year
+6.34%
+6.34%
5-Year
+42.31%
+7.31%
10-Year
+75.78%
+5.80%
Share
Class
Distribution
Rate
5
30-Day
Standardized
Yield
6
A
4.90%
3.94%
Advisor
5.25%
4.35%
See
page
7
for
Performance
Summary
footnotes.
Franklin
High
Income
Fund
Performance
Summary
7
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
risks
associated
with
higher-yielding,
lower-rated
securities
include
higher
risk
of
default
and
loss
of
principal.
Changes
in
the
financial
strength
of
a
bond
issuer
or
in
a
bond’s
credit
rating
may
affect
its
value.
In
addition,
interest
rate
movements
will
affect
the
Fund’s
share
price
and
yield.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Investment
in
foreign
securities
also
involves
special
risks,
including
currency
fluctuations,
and
po-
litical
and
economic
uncertainty.
Unexpected
events
and
their
aftermaths,
such
as
the
spread
of
deadly
diseases;
natural,
environmental
or
man-made
disasters;
financial,
political
or
social
disruptions;
terrorism
and
war;
and
other
tragedies
or
catastrophes,
can
cause
investor
fear
and
panic,
which
can
adversely
affect
the
economies
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
November
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
11/30/20.
6.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
7.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(6/1/20–11/30/20)
Share
Class
Net
Investment
Income
A
$0.0481
A1
$0.0489
C
$0.0441
R
$0.0456
R6
$0.0512
Advisor
$0.0501
Total
Annual
Operating
Expenses
7
Share
Class
A
0.88%
Advisor
0.63%
Your
Fund’s
Expenses
Franklin
High
Income
Fund
8
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
183/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
6/1/20
Ending
Account
Value
11/30/20
Expenses
Paid
During
Period
6/1/20–11/30/20
1,2
Ending
Account
Value
11/30/20
Expenses
Paid
During
Period
6/1/20–11/30/20
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,098.82
$4.55
$1,020.73
$4.38
0.87%
A1
$1,000
$1,104.59
$4.04
$1,021.23
$3.88
0.77%
C
$1,000
$1,094.17
$6.65
$1,018.72
$6.41
1.27%
R
$1,000
$1,100.26
$5.86
$1,019.49
$5.63
1.12%
R6
$1,000
$1,100.13
$2.68
$1,022.51
$2.58
0.51%
Advisor
$1,000
$1,099.40
$3.24
$1,021.98
$3.12
0.62%
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
Year
Ended
May
31,
2019
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$1.72
$1.80
$1.84
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.04
0.09
0.07
Net
realized
and
unrealized
gains
(losses)
....................................
0.13
(0.07)
(0.03)
Total
from
investment
operations
.............................................
0.17
0.02
0.04
Less
distributions
from:
Net
investment
income
...................................................
(0.05)
(0.10)
(0.08)
Net
asset
value,
end
of
period
...............................................
$1.84
$1.72
$1.80
Total
return
d
............................................................
9.88%
0.88%
2.17%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...............................
0.87%
0.86%
0.87%
Expenses
net
of
waiver
and
payments
by
affiliates
f
...............................
0.87%
g
0.86%
g
0.86%
Net
investment
income
....................................................
4.87%
5.19%
5.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$421,310
$309,844
$182,551
Portfolio
turnover
rate
.....................................................
26.42%
38.87%
25.48%
a
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019.
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
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
2019
2018
2017
2016
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.73
$1.81
$1.82
$1.91
$1.73
$2.01
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.10
0.10
0.10
0.11
Net
realized
and
unrealized
gains
(losses)
0.13
(0.08)
(0.01)
(0.09)
0.18
(0.27)
Total
from
investment
operations
........
0.18
0.02
0.09
0.01
0.28
(0.16)
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.10)
(0.10)
(0.10)
(0.12)
Net
asset
value,
end
of
period
..........
$1.86
$1.73
$1.81
$1.82
$1.91
$1.73
Total
return
c
.......................
10.46%
0.95%
5.35%
0.68%
16.82%
(8.08)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.77%
0.76%
0.77%
0.78%
0.77%
0.78%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.77%
f
0.76%
f
0.76%
0.77%
0.76%
0.77%
Net
investment
income
...............
4.97%
5.29%
5.37%
5.26%
5.38%
6.15%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,799,363
$1,759,206
$2,054,455
$2,356,528
$2,788,669
$2,745,474
Portfolio
turnover
rate
................
26.42%
38.87%
25.48%
23.33%
35.06%
18.58%
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
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
2019
2018
2017
2016
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.76
$1.83
$1.85
$1.93
$1.75
$2.03
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.09
0.09
0.09
0.09
0.10
Net
realized
and
unrealized
gains
(losses)
0.12
(0.07)
(0.01)
(0.08)
0.18
(0.27)
Total
from
investment
operations
........
0.16
0.02
0.08
0.01
0.27
(0.17)
Less
distributions
from:
Net
investment
income
..............
(0.04)
(0.09)
(0.10)
(0.09)
(0.09)
(0.11)
Net
asset
value,
end
of
period
..........
$1.88
$1.76
$1.83
$1.85
$1.93
$1.75
Total
return
c
.......................
9.42%
0.99%
4.17%
0.70%
16.02%
(8.46)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.27%
1.26%
1.27%
1.28%
1.27%
1.28%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.27%
f
1.26%
f
1.26%
1.27%
1.26%
1.27%
Net
investment
income
...............
4.47%
4.79%
4.87%
4.76%
4.88%
5.65%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$233,826
$251,930
$304,072
$460,201
$563,539
$563,218
Portfolio
turnover
rate
................
26.42%
38.87%
25.48%
23.33%
35.06%
18.58%
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
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
2019
2018
2017
2016
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.77
$1.84
$1.86
$1.94
$1.76
$2.04
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.09
0.09
0.09
0.09
0.10
Net
realized
and
unrealized
gains
(losses)
0.14
(0.07)
(0.01)
(0.07)
0.19
(0.27)
Total
from
investment
operations
........
0.18
0.02
0.08
0.02
0.28
(0.17)
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.09)
(0.10)
(0.10)
(0.10)
(0.11)
Net
asset
value,
end
of
period
..........
$1.90
$1.77
$1.84
$1.86
$1.94
$1.76
Total
return
c
.......................
10.03%
1.14%
4.31%
0.84%
16.07%
(8.27)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.11%
1.12%
1.13%
1.12%
1.13%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.12%
f
1.11%
f
1.11%
1.12%
1.11%
1.12%
Net
investment
income
...............
4.62%
4.94%
5.02%
4.91%
5.03%
5.80%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$75,911
$77,148
$101,783
$127,333
$187,180
$227,440
Portfolio
turnover
rate
................
26.42%
38.87%
25.48%
23.33%
35.06%
18.58%
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,
except
for
non-recurring
expenses,
if
any.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
2019
2018
2017
2016
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.73
$1.80
$1.82
$1.90
$1.73
$2.01
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.10
0.11
0.10
0.11
Net
realized
and
unrealized
gains
(losses)
0.12
(0.07)
(0.01)
(0.08)
0.18
(0.27)
Total
from
investment
operations
........
0.17
0.03
0.09
0.03
0.28
(0.16)
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.11)
(0.11)
(0.11)
(0.12)
Net
asset
value,
end
of
period
..........
$1.85
$1.73
$1.80
$1.82
$1.90
$1.73
Total
return
c
.......................
10.01%
1.80%
5.05%
1.48%
16.56%
(7.78)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.54%
0.55%
0.55%
0.51%
0.49%
0.47%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.51%
0.50%
0.50%
0.48%
0.48%
0.46%
Net
investment
income
...............
5.01
%
5.55%
5.63%
5.55%
5.66%
6.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$140,722
$66,681
$64,681
$68,312
$33,371
$37,872
Portfolio
turnover
rate
................
26.42%
38.87%
25.48%
23.33%
35.06%
18.58%
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,
except
for
non-recurring
expenses,
if
any.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
2019
2018
2017
2016
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.73
$1.81
$1.83
$1.91
$1.74
$2.01
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.10
0.10
0.10
0.11
Net
realized
and
unrealized
gains
(losses)
0.12
(0.08)
(0.01)
(0.07)
0.18
(0.26)
Total
from
investment
operations
........
0.17
0.02
0.09
0.03
0.28
(0.15)
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.11)
(0.11)
(0.11)
(0.12)
Net
asset
value,
end
of
period
..........
$1.85
$1.73
$1.81
$1.83
$1.91
$1.74
Total
return
c
.......................
9.94%
1.12%
4.92%
1.36%
16.29%
(7.39)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.62%
0.61%
0.62%
0.63%
0.62%
0.63%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.62%
f
0.61%
f
0.61%
0.62%
0.61%
0.62%
Net
investment
income
...............
5.12%
5.44%
5.52%
5.41%
5.53%
6.30%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$333,991
$299,110
$320,010
$356,721
$488,699
$526,634
Portfolio
turnover
rate
................
26.42%
38.87%
25.48%
23.33%
35.06%
18.58%
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,
except
for
non-recurring
expenses,
if
any.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited),
November
30,
2020
Franklin
High
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
l
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.9%
Energy
Equipment
&
Services
0.0%
†
a
Weatherford
International
plc
.............................
United
States
217,793
$
816,724
a
Machinery
0.2%
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
78,499
549,493
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
611,911
4,206,888
4,756,381
Metals
&
Mining
0.0%
†
a
Contura
Energy,
Inc.
...................................
United
States
30,901
228,667
a
Oil,
Gas
&
Consumable
Fuels
0.6%
Amplify
Energy
Corp.
..................................
United
States
8,816
8,904
a
California
Resources
Corp.
..............................
United
States
1,425
31,093
a,b
Goodrich
Petroleum
Corp.
...............................
United
States
1,564,885
18,090,071
a,c,d
Nine
Point
Energy
LLC
.................................
United
States
46,695,277
47
Riviera
Resources,
Inc.
.................................
United
States
149,317
35,239
a,b
Titan
Energy
LLC
.....................................
United
States
289,137
8,963
18,174,317
Paper
&
Forest
Products
0.0%
†
Verso
Corp.,
A
........................................
United
States
83,362
901,143
Specialty
Retail
0.1%
a
Party
City
Holdings,
Inc.
................................
United
States
276,851
1,267,979
a
Total
Common
Stocks
(Cost
$101,743,554)
.....................................
26,145,211
Warrants
Warrants
0.0%
†
Metals
&
Mining
0.0%
†
a
Contura
Energy,
Inc.,
7/26/23
............................
United
States
5,033
2,265
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a,c
Battalion
Oil
Corp.,
A,
10/08/22
...........................
United
States
21,046
1,970
a,c
Battalion
Oil
Corp.,
B,
10/08/22
...........................
United
States
26,308
1,445
a,c
Battalion
Oil
Corp.,
C,
10/08/22
...........................
United
States
33,825
915
a
California
Resources
Corp.,
10/27/24
......................
United
States
3,278
11,145
a,c
Chaparral
Energy,
Inc.,
10/01/24
..........................
United
States
26
—
15,475
Paper
&
Forest
Products
0.0%
†
a
Verso
Corp.,
7/25/23
...................................
United
States
8,775
6,801
Total
Warrants
(Cost
$12,589)
.................................................
24,541
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
e,f,g
Digicel
Group
0.5
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
.....
Bermuda
393,192
75,941
Total
Convertible
Bonds
(Cost
$70,131)
........................................
75,941
Corporate
Bonds
97.2%
Aerospace
&
Defense
0.6%
g
BWX
Technologies,
Inc.
,
Senior
Note
,
144A,
5.375
%
,
7/15/26
....
United
States
8,500,000
8,859,635
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Aerospace
&
Defense
(continued)
g
Signature
Aviation
US
Holdings,
Inc.
,
Senior
Note
,
144A,
5.375
%
,
5/01/26
...........................................
United
States
9,800,000
$
10,094,000
18,953,635
Air
Freight
&
Logistics
0.9%
g
DAE
Funding
LLC
,
Senior
Note,
144A,
4.5%,
8/01/22
.......................
United
Arab
Emirates
16,000,000
16,180,000
Senior
Note,
144A,
5%,
8/01/24
........................
United
Arab
Emirates
12,000,000
12,352,500
28,532,500
Airlines
1.1%
g
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.....................................
United
States
20,000,000
21,559,855
g
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd.
,
Senior
Secured
Note
,
144A,
6.5
%
,
6/20/27
.......
United
States
11,300,000
12,274,625
33,834,480
Auto
Components
2.0%
g
Adient
US
LLC
,
Senior
Secured
Note,
144A,
9%,
4/15/25
..................
United
States
6,000,000
6,682,500
Senior
Secured
Note,
144A,
7%,
5/15/26
..................
United
States
20,500,000
22,276,018
g
Allison
Transmission,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
1/30/31
...
United
States
13,700,000
13,837,000
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note
,
9.5
%
,
5/31/25
...
United
States
15,300,000
17,250,488
60,046,006
Banks
0.5%
CIT
Group,
Inc.
,
Senior
Bond
,
5
%
,
8/15/22
..................
United
States
50,000
53,259
f
JPMorgan
Chase
&
Co.
,
R
,
Junior
Sub.
Bond
,
6%
to
8/01/23,
FRN
thereafter
,
Perpetual
.................................
United
States
15,000,000
15,790,651
15,843,910
Biotechnology
0.5%
g
Horizon
Therapeutics
USA,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
8/01/27
United
States
15,000,000
15,869,100
Building
Products
1.5%
g
Cornerstone
Building
Brands,
Inc.
,
Senior
Note,
144A,
8%,
4/15/26
........................
United
States
18,000,000
18,979,200
Senior
Note,
144A,
6.125%,
1/15/29
.....................
United
States
4,500,000
4,755,937
g
JELD-WEN,
Inc.
,
Senior
Note,
144A,
4.625%,
12/15/25
....................
United
States
7,600,000
7,779,702
Senior
Note,
144A,
4.875%,
12/15/27
....................
United
States
7,800,000
8,229,000
g
Standard
Industries,
Inc.
,
Senior
Note
,
144A,
5
%
,
2/15/27
.......
United
States
5,000,000
5,253,125
44,996,964
Chemicals
2.5%
e,g
Anagram
International,
Inc.
/
Anagram
Holdings
LLC
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
..............................
United
States
1,470,625
1,338,269
g
Axalta
Coating
Systems
LLC
,
Senior
Note
,
144A,
3.375
%
,
2/15/29
United
States
11,600,000
11,722,670
g
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
14,000,000
14,299,250
g
Ingevity
Corp.
,
Senior
Note
,
144A,
3.875
%
,
11/01/28
...........
United
States
9,000,000
9,129,375
g
Neon
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
United
States
20,000,000
21,300,000
g
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
10,800,000
10,752,642
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
(continued)
g
TPC
Group,
Inc.
,
Senior
Secured
Note
,
144A,
10.5
%
,
8/01/24
....
United
States
8,500,000
$
6,816,830
75,359,036
Commercial
Services
&
Supplies
0.4%
g
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
11,600,000
11,469,500
Communications
Equipment
1.0%
g
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
..
United
States
1,635,000
1,677,592
g
CommScope,
Inc.
,
Senior
Note,
144A,
7.125%,
7/01/28
.....................
United
States
11,700,000
12,488,931
Senior
Secured
Note,
144A,
6%,
3/01/26
..................
United
States
15,000,000
15,844,725
30,011,248
Construction
&
Engineering
0.6%
g
New
Enterprise
Stone
&
Lime
Co.,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
3/15/26
.....................................
United
States
17,400,000
17,976,375
Construction
Materials
0.8%
g
Cemex
SAB
de
CV
,
Senior
Secured
Bond
,
144A,
5.7
%
,
1/11/25
...
Mexico
25,000,000
25,605,000
Consumer
Finance
2.2%
g
FirstCash,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
9/01/28
...........
United
States
13,500,000
13,896,562
Navient
Corp.
,
Senior
Note,
5.875%,
3/25/21
..........................
United
States
5,000,000
5,080,175
Senior
Note,
6.625%,
7/26/21
..........................
United
States
5,300,000
5,442,438
Senior
Note,
6.5%,
6/15/22
............................
United
States
9,900,000
10,449,450
OneMain
Finance
Corp.
,
Senior
Bond,
5.375%,
11/15/29
.........................
United
States
8,600,000
9,395,500
Senior
Note,
8.875%,
6/01/25
..........................
United
States
3,900,000
4,365,465
Senior
Note,
6.625%,
1/15/28
..........................
United
States
15,500,000
17,812,445
66,442,035
Containers
&
Packaging
5.0%
g
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
6%,
2/15/25
........................
United
States
2,754,000
2,856,449
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
11,600,000
12,108,660
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
11,400,000
12,069,465
g
Mauser
Packaging
Solutions
Holding
Co.
,
Senior
Note,
144A,
7.25%,
4/15/25
......................
United
States
34,900,000
35,072,755
Senior
Secured
Note,
144A,
8.5%,
4/15/24
................
United
States
3,500,000
3,675,000
g
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
5.875%,
8/15/23
.....................
United
States
10,000,000
10,768,750
Senior
Note,
144A,
6.625%,
5/13/27
.....................
United
States
8,500,000
9,217,187
g
Reynolds
Group
Issuer,
Inc.
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
Luxembourg
SA
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
..........................................
United
States
23,300,000
23,724,060
g
Sealed
Air
Corp.
,
Senior
Bond,
144A,
5.5%,
9/15/25
.......................
United
States
5,500,000
6,183,430
Senior
Note,
144A,
4%,
12/01/27
.......................
United
States
13,200,000
14,157,000
g
Trivium
Packaging
Finance
BV
,
Senior
Note,
144A,
8.5%,
8/15/27
.......................
Netherlands
10,200,000
11,059,605
Senior
Secured
Note,
144A,
5.5%,
8/15/26
................
Netherlands
7,600,000
7,975,250
148,867,611
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
Financial
Services
1.1%
g
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
33,400,000
$
32,773,750
Diversified
Telecommunication
Services
5.2%
g
Altice
France
Holding
SA
,
Senior
Note,
144A,
6%,
2/15/28
........................
Luxembourg
8,600,000
8,744,523
Senior
Secured
Note,
144A,
10.5%,
5/15/27
...............
Luxembourg
25,400,000
28,678,505
g
Altice
France
SA
,
Senior
Secured
Note
,
144A,
5.5
%
,
1/15/28
....
France
8,000,000
8,352,000
g
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.75%,
2/15/26
......................
United
States
10,200,000
10,586,172
Senior
Bond,
144A,
5.5%,
5/01/26
.......................
United
States
8,900,000
9,281,854
Senior
Bond,
144A,
5%,
2/01/28
........................
United
States
3,000,000
3,156,750
Senior
Bond,
144A,
5.375%,
6/01/29
.....................
United
States
11,900,000
13,014,316
Senior
Bond,
144A,
4.5%,
8/15/30
.......................
United
States
11,500,000
12,139,745
Senior
Bond,
144A,
4.25%,
2/01/31
......................
United
States
3,400,000
3,531,410
g
DKT
Finance
ApS
,
Senior
Secured
Note
,
144A,
9.375
%
,
6/17/23
..
Denmark
16,800,000
17,392,200
g
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond,
144A,
5.5%,
8/15/26
................
United
Kingdom
7,300,000
7,650,437
Senior
Secured
Bond,
144A,
4.5%,
8/15/30
................
United
Kingdom
19,000,000
19,935,750
g
Zayo
Group
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
3/01/27
United
States
13,000,000
12,950,535
155,414,197
Electric
Utilities
0.9%
g
Vistra
Operations
Co.
LLC
,
Senior
Note
,
144A,
5.625
%
,
2/15/27
..
United
States
26,500,000
28,030,640
Energy
Equipment
&
Services
1.4%
g
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.
,
e
Secured
Note,
144A,
PIK,
10%,
4/01/26
..................
United
States
17,225,629
12,558,680
Senior
Secured
Note,
144A,
7.5%,
4/01/25
................
United
States
7,501,000
6,751,687
g
Nabors
Industries
Ltd.
,
Senior
Note,
144A,
7.25%,
1/15/26
......................
United
States
13,400,000
7,529,125
Senior
Note,
144A,
7.5%,
1/15/28
.......................
United
States
5,800,000
3,150,125
g
Weatherford
International
Ltd.
,
144A,
8.75%,
9/01/24
................................
United
States
5,000,000
5,057,750
Senior
Note,
144A,
11%,
12/01/24
.......................
United
States
12,022,000
8,385,345
43,432,712
Entertainment
2.4%
g
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
5.375
%
,
3/01/25
...........................................
France
22,900,000
23,315,062
Netflix,
Inc.
,
Senior
Bond,
4.375%,
11/15/26
.........................
United
States
10,200,000
11,328,375
g
Senior
Bond,
144A,
5.375%,
11/15/29
....................
United
States
3,600,000
4,303,080
g
Senior
Note,
144A,
3.625%,
6/15/25
.....................
United
States
7,300,000
7,751,688
g
WMG
Acquisition
Corp.
,
Senior
Secured
Bond
,
144A,
3
%
,
2/15/31
.
United
States
27,700,000
27,024,951
73,723,156
Equity
Real
Estate
Investment
Trusts
(REITs)
3.2%
g
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
,
Senior
Note,
144A,
5.25%,
7/15/24
......................
United
States
13,100,000
13,649,938
Senior
Note,
144A,
6%,
4/15/25
........................
United
States
11,600,000
12,397,500
MGM
Growth
Properties
Operating
Partnership
LP
/
MGP
Finance
Co-Issuer,
Inc.
,
Senior
Note,
5.75%,
2/01/27
...........................
United
States
3,600,000
4,018,122
g
Senior
Note,
144A,
3.875%,
2/15/29
.....................
United
States
7,000,000
7,083,125
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond,
5.25%,
8/01/26
...........................
United
States
7,700,000
$
8,067,290
Senior
Bond,
5%,
10/15/27
............................
United
States
700,000
742,409
Senior
Bond,
3.5%,
3/15/31
............................
United
States
16,700,000
17,003,690
g
Park
Intermediate
Holdings
LLC
/
PK
Domestic
Property
LLC
/
PK
Finance
Co-Issuer
,
Senior
Secured
Note
,
144A,
5.875
%
,
10/01/28
United
States
9,300,000
9,817,312
g
SBA
Communications
Corp.
,
Senior
Note
,
144A,
3.875
%
,
2/15/27
.
United
States
8,500,000
8,765,625
g
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Bond,
144A,
4.125%,
8/15/30
.....................
United
States
5,000,000
5,160,250
Senior
Note,
144A,
3.75%,
2/15/27
......................
United
States
8,000,000
8,173,760
94,879,021
Food
Products
2.2%
B&G
Foods,
Inc.
,
Senior
Note,
5.25%,
4/01/25
...........................
United
States
14,000,000
14,537,774
Senior
Note,
5.25%,
9/15/27
...........................
United
States
7,500,000
7,849,200
g
Kraft
Heinz
Foods
Co.
,
Senior
Bond,
144A,
4.25%,
3/01/31
......................
United
States
9,900,000
11,006,493
Senior
Note,
144A,
3.875%,
5/15/27
.....................
United
States
6,600,000
7,150,601
g
Post
Holdings,
Inc.
,
Senior
Bond,
144A,
5%,
8/15/26
........................
United
States
19,600,000
20,369,006
Senior
Bond,
144A,
4.625%,
4/15/30
.....................
United
States
5,200,000
5,435,300
66,348,374
Health
Care
Equipment
&
Supplies
0.2%
g
Ortho-Clinical
Diagnostics,
Inc.
/
Ortho-Clinical
Diagnostics
SA
,
Senior
Note
,
144A,
7.375
%
,
6/01/25
......................
United
States
5,600,000
6,002,500
Health
Care
Providers
&
Services
5.6%
Centene
Corp.
,
g
Senior
Note,
144A,
5.375%,
6/01/26
.....................
United
States
23,550,000
24,786,375
Senior
Note,
4.25%,
12/15/27
..........................
United
States
12,700,000
13,546,836
Senior
Note,
4.625%,
12/15/29
.........................
United
States
4,300,000
4,720,088
CHS/Community
Health
Systems,
Inc.
,
g
Secured
Note,
144A,
8.125%,
6/30/24
....................
United
States
13,747,000
12,819,078
Senior
Note,
6.875%,
2/01/22
..........................
United
States
4,003,000
3,835,374
Senior
Secured
Note,
6.25%,
3/31/23
....................
United
States
14,200,000
14,519,500
HCA,
Inc.
,
Senior
Bond,
3.5%,
9/01/30
............................
United
States
24,400,000
25,267,085
Senior
Note,
5.375%,
9/01/26
..........................
United
States
4,600,000
5,235,375
Senior
Secured
Bond,
5.25%,
4/15/25
....................
United
States
11,000,000
12,840,162
g
MEDNAX,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
1/15/27
............
United
States
13,500,000
14,478,480
Tenet
Healthcare
Corp.
,
g
Secured
Note,
144A,
6.25%,
2/01/27
.....................
United
States
15,000,000
15,733,425
Senior
Note,
6.75%,
6/15/23
...........................
United
States
13,700,000
14,748,050
g
Senior
Secured
Note,
144A,
4.875%,
1/01/26
..............
United
States
5,000,000
5,156,200
167,686,028
Hotels,
Restaurants
&
Leisure
5.5%
g
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4
%
,
10/15/30
.......................................
Canada
23,800,000
23,770,250
g,h
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
.
United
States
23,000,000
201,250
g
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
7/01/25
...........................................
United
States
17,600,000
18,792,312
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
g
Caesars
Resort
Collection
LLC
/
CRC
Finco,
Inc.
,
Senior
Secured
Note
,
144A,
5.75
%
,
7/01/25
............................
United
States
7,000,000
$
7,420,000
g
Carnival
Corp.
,
Senior
Note
,
144A,
7.625
%
,
3/01/26
...........
United
States
7,300,000
7,762,966
g
Downstream
Development
Authority
of
the
Quapaw
Tribe
of
Oklahoma
,
Senior
Secured
Note
,
144A,
10.5
%
,
2/15/23
.......
United
States
8,600,000
8,287,347
g
Golden
Nugget,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
10/15/24
.......
United
States
18,900,000
18,498,375
g
International
Game
Technology
plc
,
Senior
Secured
Note
,
144A,
5.25
%
,
1/15/29
.....................................
United
States
8,000,000
8,475,840
g
KFC
Holding
Co./Pizza
Hut
Holdings
LLC/Taco
Bell
of
America
LLC
,
Senior
Note
,
144A,
5.25
%
,
6/01/26
.......................
United
States
6,500,000
6,739,297
g
Six
Flags
Theme
Parks,
Inc.
,
Senior
Secured
Note
,
144A,
7
%
,
7/01/25
...........................................
United
States
8,300,000
9,013,385
g
Stars
Group
Holdings
BV
/
Stars
Group
US
Co-Borrower
LLC
,
Senior
Note
,
144A,
7
%
,
7/15/26
..............................
Canada
11,000,000
11,653,125
g
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
2/11/24
.....
Macau
23,200,000
24,251,308
g
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.75
%
,
4/15/25
............................
United
States
18,500,000
19,977,503
164,842,958
Household
Durables
1.1%
g
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
Senior
Note,
144A,
6.75%,
8/01/25
......................
United
States
13,500,000
14,122,957
Senior
Note,
144A,
9.875%,
4/01/27
.....................
United
States
8,500,000
9,571,510
g
Taylor
Morrison
Communities,
Inc.
/
Taylor
Morrison
Holdings
II,
Inc.
,
Senior
Note
,
144A,
5.625
%
,
3/01/24
......................
United
States
2,500,000
2,681,250
g
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
7,000,000
7,293,125
33,668,842
Independent
Power
and
Renewable
Electricity
Producers
3.7%
g
Calpine
Corp.
,
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
13,900,000
14,631,349
Senior
Secured
Note,
144A,
4.5%,
2/15/28
................
United
States
12,200,000
12,614,800
Clearway
Energy
Operating
LLC
,
Senior
Note,
5.75%,
10/15/25
..........................
United
States
11,200,000
11,809,000
Senior
Note,
5%,
9/15/26
.............................
United
States
14,700,000
15,193,332
g
Senior
Note,
144A,
4.75%,
3/15/28
......................
United
States
10,000,000
10,733,600
g
InterGen
NV
,
Senior
Secured
Bond
,
144A,
7
%
,
6/30/23
.........
Netherlands
24,800,000
23,560,000
Talen
Energy
Supply
LLC
,
Senior
Note
,
6.5
%
,
6/01/25
..........
United
States
33,450,000
24,021,281
112,563,362
Insurance
1.7%
g
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note
,
144A,
6.75
%
,
10/15/27
...........................
United
States
28,700,000
30,829,253
CNO
Financial
Group,
Inc.
,
Senior
Note
,
5.25
%
,
5/30/29
........
United
States
15,900,000
19,128,245
49,957,498
Internet
&
Direct
Marketing
Retail
0.4%
g
Match
Group
Holdings
II
LLC
,
Senior
Note
,
144A,
4.625
%
,
6/01/28
United
States
10,900,000
11,465,438
IT
Services
2.3%
g
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
14,400,000
14,577,840
g
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
9,300,000
9,776,625
Senior
Note,
144A,
3.75%,
10/01/30
.....................
United
States
6,000,000
6,249,420
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
(continued)
g
Presidio
Holdings,
Inc.
,
Senior
Note,
144A,
8.25%,
2/01/28
......................
United
States
3,700,000
$
4,026,062
Senior
Secured
Note,
144A,
4.875%,
2/01/27
..............
United
States
7,500,000
7,916,025
g
Tempo
Acquisition
LLC
/
Tempo
Acquisition
Finance
Corp.
,
Senior
Note,
144A,
6.75%,
6/01/25
......................
United
States
18,500,000
18,985,625
Senior
Secured
Note,
144A,
5.75%,
6/01/25
...............
United
States
6,000,000
6,412,500
67,944,097
Machinery
1.5%
g
Manitowoc
Co.,
Inc.
(The)
,
Secured
Note
,
144A,
9
%
,
4/01/26
....
United
States
17,100,000
18,457,313
g
Navistar
International
Corp.
,
Senior
Note
,
144A,
6.625
%
,
11/01/25
United
States
9,000,000
9,431,550
g
Vertical
Holdco
GmbH
,
Senior
Note
,
144A,
7.625
%
,
7/15/28
.....
Germany
6,200,000
6,653,375
g
Vertical
US
Newco,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
Germany
11,200,000
11,781,000
46,323,238
Media
6.9%
g
Clear
Channel
International
BV
,
Senior
Secured
Note
,
144A,
6.625
%
,
8/01/25
.....................................
United
States
6,500,000
6,800,625
Clear
Channel
Worldwide
Holdings,
Inc.
,
Senior
Note,
9.25%,
2/15/24
...........................
United
States
11,232,000
11,247,219
g
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
7,600,000
7,685,500
CSC
Holdings
LLC
,
Senior
Bond,
5.25%,
6/01/24
...........................
United
States
28,000,000
30,362,500
Senior
Note,
6.75%,
11/15/21
..........................
United
States
5,000,000
5,239,850
g
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
11,300,000
6,494,110
Senior
Secured
Note,
144A,
5.375%,
8/15/26
..............
United
States
8,300,000
6,448,062
DISH
DBS
Corp.
,
Senior
Note,
5.875%,
7/15/22
..........................
United
States
6,300,000
6,623,064
Senior
Note,
5%,
3/15/23
.............................
United
States
2,900,000
3,019,625
Senior
Note,
5.875%,
11/15/24
.........................
United
States
13,600,000
14,484,000
g
Gray
Television,
Inc.
,
Senior
Note,
144A,
7%,
5/15/27
........................
United
States
9,100,000
10,044,125
Senior
Note,
144A,
4.75%,
10/15/30
.....................
United
States
10,000,000
10,162,500
g
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
.....................................
United
States
13,100,000
14,257,385
g
Nexstar
Broadcasting,
Inc.
,
Senior
Note,
144A,
5.625%,
7/15/27
.....................
United
States
12,800,000
13,668,032
Senior
Note,
144A,
4.75%,
11/01/28
.....................
United
States
5,500,000
5,670,088
g
Scripps
Escrow,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
7/15/27
.......
United
States
4,700,000
4,741,125
g
Sinclair
Television
Group,
Inc.
,
Senior
Bond,
144A,
5.5%,
3/01/30
.......................
United
States
14,000,000
14,041,160
Senior
Secured
Note,
144A,
4.125%,
12/01/30
.............
United
States
7,600,000
7,628,500
g
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
..............
United
States
16,000,000
16,130,000
Senior
Secured
Note,
144A,
9.5%,
5/01/25
................
United
States
7,200,000
8,010,000
Senior
Secured
Note,
144A,
6.625%,
6/01/27
..............
United
States
5,000,000
5,346,875
208,104,345
Metals
&
Mining
0.8%
g
Novelis
Corp.
,
Senior
Bond,
144A,
5.875%,
9/30/26
.....................
United
States
12,700,000
13,335,000
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Metals
&
Mining
(continued)
g
Novelis
Corp.,
(continued)
Senior
Bond,
144A,
4.75%,
1/30/30
......................
United
States
9,000,000
$
9,570,195
22,905,195
Oil,
Gas
&
Consumable
Fuels
13.5%
g
Aker
BP
ASA
,
Senior
Note,
144A,
4.75%,
6/15/24
......................
Norway
5,900,000
6,098,607
Senior
Note,
144A,
5.875%,
3/31/25
.....................
Norway
13,000,000
13,456,921
Apache
Corp.
,
Senior
Note,
4.625%,
11/15/25
.........................
United
States
3,100,000
3,226,945
Senior
Note,
4.875%,
11/15/27
.........................
United
States
3,600,000
3,765,600
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
7.75
%
,
4/15/23
...........................
United
States
22,700,000
22,033,074
Cenovus
Energy,
Inc.
,
Senior
Bond,
6.75%,
11/15/39
..........................
Canada
8,600,000
10,239,467
Senior
Bond,
5.4%,
6/15/47
............................
Canada
5,800,000
6,198,960
Senior
Note,
5.375%,
7/15/25
..........................
Canada
14,300,000
15,785,043
Cheniere
Corpus
Christi
Holdings
LLC
,
Senior
Secured
Note
,
5.875
%
,
3/31/25
.....................................
United
States
8,900,000
10,206,088
Cheniere
Energy
Partners
LP
,
Senior
Note,
5.625%,
10/01/26
.........................
United
States
9,000,000
9,409,050
Senior
Note,
4.5%,
10/01/29
...........................
United
States
12,000,000
12,522,120
Senior
Secured
Note,
5.25%,
10/01/25
...................
United
States
28,700,000
29,482,075
g
Cheniere
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
10/15/28
..........................................
United
States
11,300,000
11,723,750
h
Chesapeake
Energy
Corp.
,
Senior
Note
,
7.5
%
,
10/01/26
........
United
States
13,700,000
890,500
Comstock
Resources,
Inc.
,
Senior
Note
,
9.75
%
,
8/15/26
........
United
States
12,600,000
13,340,250
g
Continental
Resources,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
1/15/31
..
United
States
13,900,000
14,942,500
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note,
6.75%,
4/01/23
...........................
United
States
17,000,000
17,108,885
Senior
Note,
5.75%,
4/01/25
...........................
United
States
14,000,000
13,930,000
g
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond,
144A,
5.75%,
1/30/28
......................
United
States
19,700,000
20,980,500
Senior
Note,
144A,
6.625%,
7/15/25
.....................
United
States
5,400,000
5,764,176
EnLink
Midstream
LLC
,
Senior
Bond
,
5.375
%
,
6/01/29
.........
United
States
13,000,000
12,374,375
e,g
EnQuest
plc
,
Senior
Note
,
144A,
Reg
S,
PIK,
7
%
,
10/15/23
......
United
Kingdom
12,592,865
7,946,867
b,c,d,e
Goodrich
Petroleum
Corp.
,
144A,
PIK,
13.5
%
,
5/31/22
.........
United
States
13,805,211
15,121,294
g
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note,
144A,
10%,
2/29/24
......................
United
States
3,942,756
4,031,468
Secured
Note,
144A,
11.5%,
2/28/25
.....................
United
States
18,905,087
17,959,833
e,g,h
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
...
United
States
18,564,500
94,679
Occidental
Petroleum
Corp.
,
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
15,200,000
14,877,760
i
Senior
Note,
FRN,
1.671%,
(3-month
USD
LIBOR
+
1.45%),
8/15/22
...........................................
United
States
5,300,000
5,065,450
Senior
Note,
8.875%,
7/15/30
..........................
United
States
18,000,000
20,351,250
Senior
Note,
6.625%,
9/01/30
..........................
United
States
5,600,000
5,857,264
QEP
Resources,
Inc.
,
Senior
Bond,
5.25%,
5/01/23
...........................
United
States
3,600,000
3,083,400
Senior
Note,
5.625%,
3/01/26
..........................
United
States
10,700,000
7,671,900
g
Seven
Generations
Energy
Ltd.
,
Senior
Note
,
144A,
5.375
%
,
9/30/25
Canada
15,100,000
15,184,182
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
5.5%,
2/15/26
............................
United
States
8,000,000
8,250,480
Senior
Note,
6%,
4/15/27
.............................
United
States
13,100,000
14,046,475
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
Sunoco
LP
/
Sunoco
Finance
Corp.,
(continued)
g
Senior
Note,
144A,
4.5%,
5/15/29
.......................
United
States
4,600,000
$
4,763,875
g
Viper
Energy
Partners
LP
,
Senior
Note
,
144A,
5.375
%
,
11/01/27
..
United
States
8,200,000
8,672,648
406,457,711
Personal
Products
0.5%
g
Prestige
Brands,
Inc.
,
Senior
Note,
144A,
6.375%,
3/01/24
.....................
United
States
7,900,000
8,105,637
Senior
Note,
144A,
5.125%,
1/15/28
.....................
United
States
5,300,000
5,617,338
13,722,975
Pharmaceuticals
3.0%
g
Bausch
Health
Americas,
Inc.
,
Senior
Note
,
144A,
9.25
%
,
4/01/26
.
United
States
22,700,000
25,231,050
g
Bausch
Health
Cos.,
Inc.
,
Senior
Bond,
144A,
6.125%,
4/15/25
.....................
United
States
5,900,000
6,076,351
Senior
Bond,
144A,
5.25%,
2/15/31
......................
United
States
7,600,000
7,689,604
Senior
Note,
144A,
5%,
2/15/29
........................
United
States
7,600,000
7,666,120
Senior
Secured
Note,
144A,
7%,
3/15/24
..................
United
States
4,200,000
4,335,450
g
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
10,304,000
11,357,893
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
14,873,000
11,764,543
g
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
4,273,000
4,620,438
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
7.125
%
,
1/31/25
.....................................
Israel
9,300,000
10,181,083
88,922,532
Real
Estate
Management
&
Development
1.1%
g
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
21,400,000
22,510,125
g
Howard
Hughes
Corp.
(The)
,
Senior
Note
,
144A,
5.375
%
,
8/01/28
.
United
States
9,200,000
9,817,182
32,327,307
Semiconductors
&
Semiconductor
Equipment
0.8%
g
Amkor
Technology,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
9/15/27
.....
United
States
15,000,000
16,293,750
g
ON
Semiconductor
Corp.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
...
United
States
6,900,000
7,115,625
23,409,375
Software
1.5%
g
Blackboard,
Inc.
,
Secured
Note
,
144A,
10.375
%
,
11/15/24
.......
United
States
26,000,000
27,381,250
g
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
.
United
States
15,600,000
16,350,750
43,732,000
Specialty
Retail
1.2%
g
L
Brands,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/01/30
...........
United
States
10,700,000
11,776,687
g
Lithia
Motors,
Inc.
,
Senior
Bond,
144A,
4.375%,
1/15/31
.....................
United
States
11,900,000
12,651,188
Senior
Note,
144A,
4.625%,
12/15/27
....................
United
States
8,600,000
9,153,625
g,i
Party
City
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
FRN
,
5.75
%
,
(
6-month
USD
LIBOR
+
5
%
),
7/15/25
.....................
United
States
2,720,625
2,339,738
35,921,238
Technology
Hardware,
Storage
&
Peripherals
0.3%
g
Dell
International
LLC
/
EMC
Corp.
,
Senior
Note,
144A,
5.875%,
6/15/21
.....................
United
States
2,978,000
2,987,678
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Technology
Hardware,
Storage
&
Peripherals
(continued)
g
Dell
International
LLC
/
EMC
Corp.,
(continued)
Senior
Note,
144A,
7.125%,
6/15/24
.....................
United
States
4,900,000
$
5,088,062
8,075,740
Thrifts
&
Mortgage
Finance
3.6%
MGIC
Investment
Corp.
,
Senior
Note
,
5.25
%
,
8/15/28
..........
United
States
9,200,000
9,826,750
g
PennyMac
Financial
Services,
Inc.
,
Senior
Note
,
144A,
5.375
%
,
10/15/25
..........................................
United
States
23,800,000
24,900,750
g
Quicken
Loans
LLC
/
Quicken
Loans
Co-Issuer,
Inc.
,
Senior
Bond,
144A,
3.875%,
3/01/31
.....................
United
States
16,200,000
16,443,000
Senior
Note,
144A,
3.625%,
3/01/29
.....................
United
States
11,000,000
10,953,415
Radian
Group,
Inc.
,
Senior
Note
,
6.625
%
,
3/15/25
.............
United
States
17,400,000
19,259,625
g
United
Shore
Financial
Services
LLC
,
Senior
Note
,
144A,
5.5
%
,
11/15/25
..........................................
United
States
26,400,000
27,791,808
109,175,348
Trading
Companies
&
Distributors
3.6%
g
Ahern
Rentals,
Inc.
,
Secured
Note
,
144A,
7.375
%
,
5/15/23
......
United
States
13,500,000
9,390,937
Aircastle
Ltd.
,
Senior
Note
,
4.125
%
,
5/01/24
.................
United
States
13,000,000
13,400,161
g
Beacon
Roofing
Supply,
Inc.
,
Senior
Note
,
144A,
4.875
%
,
11/01/25
United
States
17,700,000
17,971,076
H&E
Equipment
Services,
Inc.
,
Senior
Note,
5.625%,
9/01/25
..........................
United
States
13,700,000
14,337,735
g
Senior
Note,
144A,
3.875%,
12/15/28
....................
United
States
11,400,000
11,400,000
g
HD
Supply,
Inc.
,
Senior
Note
,
144A,
5.375
%
,
10/15/26
.........
United
States
7,500,000
7,964,062
g
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
7/15/27
..........
United
States
13,300,000
14,039,813
g
WESCO
Distribution,
Inc.
,
Senior
Note,
144A,
7.125%,
6/15/25
.....................
United
States
8,800,000
9,592,660
Senior
Note,
144A,
7.25%,
6/15/28
......................
United
States
8,500,000
9,561,183
107,657,627
Wireless
Telecommunication
Services
2.4%
e
Digicel
Group
0.5
Ltd.
,
g
Senior
Note,
144A,
PIK,
8%,
4/01/25
.....................
Bermuda
2,380,333
857,383
Senior
Secured
Note,
PIK,
10%,
4/01/24
..................
Bermuda
7,629,763
5,936,379
Hughes
Satellite
Systems
Corp.
,
Senior
Note
,
6.625
%
,
8/01/26
...
United
States
19,150,000
21,372,549
Sprint
Corp.
,
Senior
Note,
7.875%,
9/15/23
..........................
United
States
14,700,000
16,960,125
Senior
Note,
7.625%,
2/15/25
..........................
United
States
18,200,000
21,828,625
g
Vmed
O2
UK
Financing
I
plc
,
Senior
Secured
Bond
,
144A,
4.25
%
,
1/31/31
...........................................
United
Kingdom
5,400,000
5,556,600
72,511,661
Total
Corporate
Bonds
(Cost
$2,881,706,951)
...................................
2,921,786,265
Shares
Escrows
and
Litigation
Trusts
0.0%
†
a,c
Alpha
Natural
Resources,
Inc.,
Escrow
Account
...............
United
States
25,000,000
—
a,c
Vistra
Energy
Corp.,
Escrow
Account
......................
United
States
50,000,000
75,000
Total
Escrows
and
Litigation
Trusts
(Cost
$1,303,653)
...........................
75,000
Total
Long
Term
Investments
(Cost
$2,984,836,878)
.............................
2,948,106,958
a
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
Short
Term
Investments
2.4%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
2.4%
j,k
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
71,632,216
$
71,632,216
Total
Money
Market
Funds
(Cost
$71,632,216)
..................................
71,632,216
Total
Short
Term
Investments
(Cost
$71,632,216
)
................................
71,632,216
a
Total
Investments
(Cost
$3,056,469,094)
100.5%
................................
$3,019,739,174
Other
Assets,
less
Liabilities
(0.5)%
...........................................
(14,616,258)
Net
Assets
100.0%
...........................................................
$3,005,122,916
See
Abbreviations
on
page
41
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
10
regarding
holdings
of
5%
voting
securities.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
d
See
Note
9
regarding
restricted
securities.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
Perpetual
security
with
no
stated
maturity
date.
g
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
November
30,
2020,
the
aggregate
value
of
these
securities
was
$2,128,894,152,
representing
70.8%
of
net
assets.
h
See
Note
7
regarding
defaulted
securities.
i
The
coupon
rate
shown
represents
the
rate
at
period
end.
j
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
k
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
November
30,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
Franklin
High
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,949,707,023
Cost
-
Non-controlled
affiliates
(Note
3
f
and
10
)
...................................................
106,762,071
Value
-
Unaffiliated
issuers
..................................................................
$2,914,886,630
Value
-
Non-controlled
affiliates
(Note
3
f
and
10
)
..................................................
104,852,544
Cash
....................................................................................
186
Receivables:
Capital
shares
sold
........................................................................
2,730,361
Dividends
and
interest
.....................................................................
42,865,359
Other
assets
..............................................................................
722
Total
assets
..........................................................................
3,065,335,802
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
50,900,000
Capital
shares
redeemed
...................................................................
5,515,604
Management
fees
.........................................................................
1,129,289
Distribution
fees
..........................................................................
456,214
Transfer
agent
fees
........................................................................
776,509
Trustees'
fees
and
expenses
.................................................................
988
Distributions
to
shareholders
.................................................................
1,249,768
Accrued
expenses
and
other
liabilities
...........................................................
184,514
Total
liabilities
.........................................................................
60,212,886
Net
assets,
at
value
.................................................................
$3,005,122,916
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,807,310,689
Total
distributable
earnings
(losses)
.............................................................
(802,187,773)
Net
assets,
at
value
.................................................................
$3,005,122,916
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
November
30,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
Franklin
High
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$421,310,237
Shares
outstanding
........................................................................
229,046,732
Net
asset
value
per
share
a
..................................................................
$1.84
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
................................
$1.91
Class
A1:
Net
assets,
at
value
.......................................................................
$1,799,363,193
Shares
outstanding
........................................................................
969,548,835
Net
asset
value
per
share
a
..................................................................
$1.86
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
................................
$1.93
Class
C:
Net
assets,
at
value
.......................................................................
$233,826,101
Shares
outstanding
........................................................................
124,226,344
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$1.88
Class
R:
Net
assets,
at
value
.......................................................................
$75,910,767
Shares
outstanding
........................................................................
40,054,036
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.90
Class
R6:
Net
assets,
at
value
.......................................................................
$140,722,010
Shares
outstanding
........................................................................
76,044,914
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.85
Advisor
Class:
Net
assets,
at
value
.......................................................................
$333,990,608
Shares
outstanding
........................................................................
180,090,168
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.85
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
November
30,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
Franklin
High
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$266,758
Interest:
Unaffiliated
issuers
........................................................................
81,130,340
Non-controlled
affiliates
(Note
3
f
and
10
)
........................................................
897,709
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
688
Total
investment
income
...................................................................
82,295,495
Expenses:
Management
fees
(Note
3
a
)
...................................................................
6,553,038
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
458,652
    Class
A1
...............................................................................
1,341,087
    Class
C
................................................................................
787,042
    Class
R
................................................................................
189,656
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
254,156
    Class
A1
...............................................................................
1,236,954
    Class
C
................................................................................
167,422
    Class
R
................................................................................
52,759
    Class
R6
...............................................................................
24,047
    Advisor
Class
............................................................................
210,027
Custodian
fees
(Note
4
)
......................................................................
8,978
Reports
to
shareholders
......................................................................
127,806
Registration
and
filing
fees
....................................................................
104,212
Professional
fees
...........................................................................
51,239
Trustees'
fees
and
expenses
..................................................................
50,011
Other
....................................................................................
38,220
Total
expenses
.........................................................................
11,655,306
Expense
reductions
(Note
4
)
...............................................................
(4,109)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(72,446)
Net
expenses
.........................................................................
11,578,751
Net
investment
income
................................................................
70,716,744
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(40,802,000)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
232,720,912
Non-controlled
affiliates
(Note
3
f
and
10
)
......................................................
7,063,028
Net
change
in
unrealized
appreciation
(depreciation)
............................................
239,783,940
Net
realized
and
unrealized
gain
(loss)
............................................................
198,981,940
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$269,698,684
Franklin
High
Income
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
Franklin
High
Income
Fund
Six
Months
Ended
November
30,
2020
(unaudited)
Year
Ended
May
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$70,716,744
$156,091,345
Net
realized
gain
(loss)
.................................................
(40,802,000)
(26,798,793)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
239,783,940
(94,782,440)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
269,698,684
34,510,112
Distributions
to
shareholders:
Class
A
.............................................................
(10,115,955)
(14,412,927)
Class
A1
............................................................
(48,097,679)
(106,039,261)
Class
C
.............................................................
(5,720,184)
(13,809,661)
Class
R
.............................................................
(1,873,396)
(4,640,000)
Class
R6
............................................................
(2,623,552)
(3,972,797)
Advisor
Class
........................................................
(8,406,090)
(17,252,037)
Total
distributions
to
shareholders
..........................................
(76,836,856)
(160,126,683)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
87,502,831
142,370,062
Class
A1
............................................................
(80,696,266)
(215,344,292)
Class
C
.............................................................
(34,865,687)
(40,742,042)
Class
R
.............................................................
(6,429,785)
(21,043,394)
Class
R6
............................................................
68,212,649
5,366,747
Advisor
Class
........................................................
14,618,951
(8,623,652)
Total
capital
share
transactions
............................................
48,342,693
(138,016,571)
Net
increase
(decrease)
in
net
assets
...................................
241,204,521
(263,633,142)
Net
assets:
Beginning
of
period
.....................................................
2,763,918,395
3,027,551,537
End
of
period
..........................................................
$3,005,122,916
$2,763,918,395
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
High
Income
Fund
30
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
High
Income
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
one
fund, Franklin
High
Income
Fund
(Fund)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
six
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the
Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund’s
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
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.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day.
Occasionally,
events
occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
securities
to
the
latest
indications
of
fair
value
at
4
p.m
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period. 
c.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the Fund,
and/or
a
joint
repurchase
agreement
in
the
Statement
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statement
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
November
30,
2020,
the Fund
had
no
securities
on
loan.
d.
Income
and
Deferred
Taxes
It
is the
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
32
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
November
30,
2020,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Income
and
Deferred
Taxes
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
33
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
November
30,
2020,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
November
30,
2020
Year
Ended
May
31,
2020
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
81,252,225
$145,686,343
318,182,416
$574,927,968
Shares
issued
in
reinvestment
of
distributions
..........
5,232,978
9,379,719
7,568,714
13,448,076
Shares
redeemed
...............................
(37,645,116)
(67,563,231)
(247,068,373)
(446,005,982)
Net
increase
(decrease)
..........................
48,840,087
$87,502,831
78,682,757
$142,370,062
Class
A1
Shares:
Shares
sold
...................................
20,165,986
$36,341,765
41,593,807
$75,377,191
Shares
issued
in
reinvestment
of
distributions
..........
23,300,200
42,071,245
51,538,021
92,708,220
Shares
redeemed
...............................
(88,173,155)
(159,109,276)
(215,000,337)
(383,429,703)
Net
increase
(decrease)
..........................
(44,706,969)
$(80,696,266)
(121,868,509)
$(215,344,292)
Class
C
Shares:
Shares
sold
...................................
6,874,672
$12,614,856
22,307,500
$40,953,248
Shares
issued
in
reinvestment
of
distributions
..........
2,911,210
5,328,222
6,941,577
12,665,205
Shares
redeemed
a
..............................
(28,835,082)
(52,808,765)
(51,969,469)
(94,360,495)
Net
increase
(decrease)
..........................
(19,049,200)
$(34,865,687)
(22,720,392)
$(40,742,042)
Class
R
Shares:
Shares
sold
...................................
3,494,370
$6,421,457
7,317,770
$13,464,046
Shares
issued
in
reinvestment
of
distributions
..........
1,012,210
1,866,138
2,499,142
4,593,413
Shares
redeemed
...............................
(8,037,585)
(14,717,380)
(21,447,471)
(39,100,853)
Net
increase
(decrease)
..........................
(3,531,005)
$(6,429,785)
(11,630,559)
$(21,043,394)
Class
R6
Shares:
Shares
sold
...................................
40,923,188
$74,382,199
21,447,998
$38,195,702
Shares
issued
in
reinvestment
of
distributions
..........
1,430,383
2,582,333
2,161,352
3,872,896
Shares
redeemed
...............................
(4,852,562)
(8,751,883)
(20,906,701)
(36,701,851)
Net
increase
(decrease)
..........................
37,501,009
$68,212,649
2,702,649
$5,366,747
Advisor
Class
Shares:
Shares
sold
...................................
63,966,983
$115,906,847
189,902,126
$341,884,921
Shares
issued
in
reinvestment
of
distributions
..........
4,327,450
7,811,352
8,933,019
16,078,999
Shares
redeemed
...............................
(60,821,922)
(109,099,248)
(203,069,838)
(366,587,572)
Net
increase
(decrease)
..........................
7,472,511
$14,618,951
(4,234,693)
$(8,623,652)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
period
ended
November
30,
2020,
the
annualized
gross
effective
investment
management
fee
rate
was
0.457%
of
the
Fund’s
average
daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class A and
Class
A1 reimbursement
distribution
plans,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
and
Class
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class C
and
R
compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Templeton
Distributors,
Inc.
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
Class
A
....................................................................................
0.25%
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
November
30,
2020,
the
Fund
paid
transfer
agent
fees
of
$1,945,365,
of
which
$850,289
was
retained
by
Investor
Services.
Class
A1
...................................................................................
0.15%
Class
C
....................................................................................
0.65%
Class
R
....................................................................................
0.50%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$32,113
CDSC
retained
..............................................................................
$14,184
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
f.
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
November
30,
2020,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
g.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
September
30,
2021.
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
November
30,
2020,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
May
31,
2020,
the
capital
loss
carryforwards
were
as
follows:
At
November
30,
2020,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
    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
High
Income
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$90,258,908
$590,834,007
$(609,460,699)
$—
$—
$71,632,216
71,632,216
$—
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$—
$69,000
$(69,000)
$
—
$
—
$—
—
$—
Total
Affiliated
Securities
....
$90,258,908
$590,903,007
$(609,529,699)
$—
$—
$71,632,216
$—
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
................................................................................
$704,320,375
3.
Transactions
with
Affiliates
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatment
of
bond
discounts
and
premiums,
corporate
actions
and
payments-in-kind.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
November
30,
2020,
aggregated
$812,810,044
and
$729,439,139,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
November
30,
2020,
the
Fund
had
85.7%
of
its
portfolio
invested
in
high
yield
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
November
30,
2020,
the
aggregate
value
of
these
securities
represents
less
than
0.1%
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
November
30,
2020,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Cost
of
investments
..........................................................................
$3,068,805,818
Unrealized
appreciation
........................................................................
$11,070,716
Unrealized
depreciation
........................................................................
(60,137,360)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(49,066,644)
Principal
Amount
*
/
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
High
Income
Fund
13,805,211
a
Goodrich
Petroleum
Corp.,
13.5%,
5/31/22
.........
5/31/19
-
10/15/20
$
13,805,211
$
15,121,294
5.
Income
Taxes
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(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
November
30,
2020,
investments
in
“affiliated
companies”
were
as
follows:
11.
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
matures
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.
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
November
30,
2020,
the Fund
did
not
use
the
Global
Credit
Facility.
Principal
Amount*/
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
High
Income
Fund
(continued)
46,695,277
Nine
Point
Energy
LLC
........................
7/15/14
-
3/24/17
$
26,331,864
$
47
Total
Restricted
Securities
(Value
is
0.50%
of
Net
Assets)
.............
$40,137,075
$15,121,341
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$18,090,071
as
of
November
30,
2020.
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
High
Income
Fund
Non-Controlled
Affiliates
Dividends
Goodrich
Petroleum
Corp.
...
$
12,581,675
$
—
$
—
$
—
$
5,508,396
$
18,090,071
1,564,885
$
—
Titan
Energy
LLC
.........
10,857
—
—
—
(1,894)
8,963
289,137
—
$12,592,532
$—
$—
$
—
$
5,506,502
$18,099,034
$
—
Interest
Goodrich
Petroleum
Corp.,
13.5%,
5/31/22
.........
12,678,055
886,713
a
—
—
1,556,526
15,121,294
13,805,211
897,709
Total
Affiliated
Securities
(Value
is
1.1%
of
Net
Assets)
$25,270,587
$886,713
$—
—
7,063,028
$33,220,328
$897,709
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
9.
Restricted
Securities
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
12.
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
November
30,
2020,
in
valuing
the
Fund's assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Energy
Equipment
&
Services
.............
$
816,724
$
—
$
—
$
816,724
Machinery
............................
—
4,756,381
—
4,756,381
Metals
&
Mining
.......................
228,667
—
—
228,667
Oil,
Gas
&
Consumable
Fuels
.............
18,174,270
—
47
18,174,317
Paper
&
Forest
Products
.................
901,143
—
—
901,143
Specialty
Retail
........................
1,267,979
—
—
1,267,979
Warrants
:
Metals
&
Mining
.......................
2,265
—
—
2,265
Oil,
Gas
&
Consumable
Fuels
.............
11,145
—
4,330
a
15,475
Paper
&
Forest
Products
.................
—
6,801
—
6,801
Convertible
Bonds
.......................
—
75,941
—
75,941
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
18,953,635
—
18,953,635
Airlines
..............................
—
33,834,480
—
33,834,480
Auto
Components
......................
—
60,046,006
—
60,046,006
Banks
...............................
—
15,843,910
—
15,843,910
Biotechnology
.........................
—
15,869,100
—
15,869,100
Building
Products
......................
—
44,996,964
—
44,996,964
Chemicals
...........................
—
75,359,036
—
75,359,036
Commercial
Services
&
Supplies
...........
—
11,469,500
—
11,469,500
Communications
Equipment
..............
—
30,011,248
—
30,011,248
Construction
&
Engineering
...............
—
17,976,375
—
17,976,375
Construction
Materials
..................
—
25,605,000
—
25,605,000
Consumer
Finance
.....................
—
66,442,035
—
66,442,035
Containers
&
Packaging
.................
—
148,867,611
—
148,867,611
Diversified
Financial
Services
.............
—
32,773,750
—
32,773,750
Diversified
Telecommunication
Services
.....
—
155,414,197
—
155,414,197
Electric
Utilities
........................
—
28,030,640
—
28,030,640
Energy
Equipment
&
Services
.............
—
43,432,712
—
43,432,712
Entertainment
.........................
—
73,723,156
—
73,723,156
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
94,879,021
—
94,879,021
Food
Products
........................
—
66,348,374
—
66,348,374
Health
Care
Equipment
&
Supplies
.........
—
6,002,500
—
6,002,500
Health
Care
Providers
&
Services
..........
—
167,686,028
—
167,686,028
Hotels,
Restaurants
&
Leisure
.............
—
164,842,958
—
164,842,958
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(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
period.
13.
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.
14.
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.
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
(continued)
Assets:
Investments
in
Securities:
Corporate
Bonds:
Household
Durables
....................
$
—
$
33,668,842
$
—
$
33,668,842
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
112,563,362
—
112,563,362
Insurance
............................
—
49,957,498
—
49,957,498
Internet
&
Direct
Marketing
Retail
..........
—
11,465,438
—
11,465,438
IT
Services
...........................
—
67,944,097
—
67,944,097
Machinery
............................
—
46,323,238
—
46,323,238
Media
...............................
—
208,104,345
—
208,104,345
Metals
&
Mining
.......................
—
22,905,195
—
22,905,195
Oil,
Gas
&
Consumable
Fuels
.............
—
391,336,417
15,121,294
406,457,711
Personal
Products
.....................
—
13,722,975
—
13,722,975
Pharmaceuticals
.......................
—
88,922,532
—
88,922,532
Real
Estate
Management
&
Development
....
—
32,327,307
—
32,327,307
Road
&
Rail
..........................
—
28,532,500
—
28,532,500
Semiconductors
&
Semiconductor
Equipment
.
—
23,409,375
—
23,409,375
Software
.............................
—
43,732,000
—
43,732,000
Specialty
Retail
........................
—
35,921,238
—
35,921,238
Technology
Hardware,
Storage
&
Peripherals
.
—
8,075,740
—
8,075,740
Thrifts
&
Mortgage
Finance
...............
—
109,175,348
—
109,175,348
Trading
Companies
&
Distributors
..........
—
107,657,627
—
107,657,627
Wireless
Telecommunication
Services
.......
—
72,511,661
—
72,511,661
Escrows
and
Litigation
Trusts
...............
—
—
75,000
a
75,000
Short
Term
Investments
...................
71,632,216
—
—
71,632,216
Total
Investments
in
Securities
...........
$93,034,409
$2,911,504,094
$15,200,671
$3,019,739,174
a
Includes
securities
determined
to
have
no
value
at
November
30,
2020.
12.
Fair
Value
Measurements
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
Abbreviations
Currency
USD
United
States
Dollar
Selected
Portfolio
FRN
Floating
Rate
Note
LIBOR
London
Inter-Bank
Offered
Rate
PIK
Payment-In-Kind
Franklin
High
Income
Trust
Shareholder
Information
42
franklintempleton.com
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.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
1105
S
01/21
©
2021
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Franklin
High
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Templeton
Distributors,
Inc.
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4.
 Principal Accountant Fees and Services.      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
. During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.
 
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 HIGH INCOME TRUST
 
 
By ___S\MATTHEW T. HINKLE_____________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date January 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 January 26, 2021
 
 
By __
 
S\ROBERT G. KUBILIS______________________
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
Date January 26, 2021