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 811-21357
 
Franklin Limited Duration Income Trust
(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)
 
Craig S. Tyle, One Franklin Parkway, San Mateo, CA  94403-1906
(Name and address of agent for service)
 
Registrant's telephone number, including area code:(650)312-2000
 
Date of fiscal year end: 12/31
 
Date of reporting period: 6/30/21
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
 
Semiannual
Report
Franklin
Limited
Duration
Income
Trust
June
30,
2021
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
Contents
Semiannual
Report
Franklin
Limited
Duration
Income
Trust
2
Performance
Summary
5
Financial
Highlights
and
Statement
of
Investments
7
Financial
Statements
31
Notes
to
Financial
Statements
35
Annual
Meeting
of
Shareholders
48
Dividend
Reinvestment
and
Cash
Purchase
Plan
49
Shareholder
Information
51
Visit
@
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for
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updates
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documents,
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tools.
2
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SEMIANNUAL
REPORT
Franklin
Limited
Duration
Income
Trust
Dear
Shareholder:
This
semiannual
report
for
Franklin
Limited
Duration
Income
Trust
covers
the
period
ended
June
30,
2021
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
high,
current
income,
with
a
secondary
objective
of
capital
appreciation
to
the
extent
possible
and
consistent
with
the
Fund’s
primary
objective,
through
a
portfolio
consisting
primarily
of
high-yield
corporate
bonds,
floating
rate
corporate
loans
and
mortgage-
and
other
asset-backed
securities.
*
Total
investments
include
long-term
and
short-term
investments.
**Includes
collateralized
loan
obligations.
***Includes
common
stocks,
preferred
stocks,
warrants,
convertible
bonds,
and
escrows
and
litigation
trusts.
Performance
Overview
For
the
six
months
under
review,
the
Fund
posted
cumulative
total
returns
of
+3.78%
based
on
net
asset
value
and
+2.83%
based
on
market
price.
Net
asset
value
decreased
from
$9.43
per
share
on
December
31,
2020,
to
$9.31
at
period-end,
and
the
market
price
decreased
from
$9.42
to
$9.21
over
the
same
period.
You
can
find
the
Fund’s
long-
term
performance
data
in
the
Performance
Summary
on
page
5
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
Economic
and
Market
Overview
The
global
economic
recovery
persisted
in
the
period
under
review
as
consumers
and
businesses
are
proving
eager
to
return
to
a
normal
pre-novel
coronavirus
(COVID-19)
life.
“Reflation,”
meaning
a
return
to
growth,
was
the
key
driver
for
markets
in
the
first
quarter,
but
inflation
and
commensurate
risks
of
higher
commodity
prices
have
now
taken
center
stage.
Central
bankers
continue
to
assure
the
market
that
the
recent
rise
in
inflation
measures
will
prove
temporary,
and
market
consensus
had
largely
accepted
this
optimistic
view.
More
recently,
the
U.S.
Federal
Reserve
acknowledged
that
inflation
risks
are
skewed
to
the
upside
as
they
took
a
hawkish
turn
in
their
June
2021
meeting.
As
a
result,
markets
are
debating
the
growth
and
inflation
outlook
with
equity
market
returns
reflecting
potential
for
positive
growth,
while
treasury
markets
are
turning
more
cautious
on
the
growth
outlook
towards
the
end
of
the
period
under
review
as
reflected
in
lower
10-year
treasury
yields.
Investment
Strategy
We
invest
in
a
diversified
mix
of
fixed
income
securities,
primarily
high-yield
corporate
bonds,
senior
secured
floating
rate
corporate
loans,
and
mortgage-
and
other
asset-backed
securities.
The
Fund
may
also
invest
a
small
portion
in
marketplace
loans.
Our
top-down
analysis
of
macroeconomic
trends
combined
with
a
bottom-up
analysis
of
market
sectors,
industries
and
issuers
drives
our
investment
process.
We
seek
to
maintain
a
limited
duration,
or
interest-rate
sensitivity,
to
moderate
the
impact
that
fluctuating
interest
rates
might
have
on
the
Fund’s
fixed
income
portfolio.
Within
the
corporate
bond
and
corporate
loan
sectors,
we
seek
securities
trading
at
reasonable
valuations
from
issuers
with
characteristics
such
as
strong
market
positions,
stable
cash
flows,
reasonable
capital
structures,
supportive
asset
values,
strong
sponsorship
and
improving
credit
fundamentals.
In
the
mortgage-
and
other
asset-backed
securities
sector,
we
look
to
capture
an
attractive
income
stream
and
total
return
through
our
analysis
of
security
prepayment
assumptions,
potential
pricing
inefficiencies
and
underlying
collateral
characteristics.
Portfolio
Composition
6/30/21
%
of
Total
Investments*
Corporate
Bonds
43.7%
Senior
Floating
Rate
Interests
31.0%
Mortgage-Backed
Securities
12.3%
Asset-Backed
Securities**
7.3%
Marketplace
Loans
1.2%
Residential
Mortgage-Backed
Securities
0.8%
Commercial
Mortgage-Backed
Securities
0.8%
Other***
0.2%
Short-Term
Investments
2.7%
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
8
.
Franklin
Limited
Duration
Income
Trust
3
franklintempleton.com
Semiannual
Report
Manager’s
Discussion
High-Yield
Corporate
Bonds
The
U.S.
High
Yield
market
(HY)
continued
to
enjoy
a
favorable
environment
for
leveraged
credit.
Against
the
backdrop
of
further
reopening
of
the
economy,
supportive
fiscal
and
monetary
policies
combined
with
wide-open
capital
markets
have
led
to
strong
overall
credit
market
performance.
Issuers
are
experiencing
improved
credit
profiles
leading
to
ratings
agency
upgrades
outpacing
downgrades.
Consequently,
market
consensus
is
for
diminishing
default
risk
for
the
balance
of
this
year
and
into
2022.
While
inflation
pressure
has
become
a
topic
of
concern
in
U.S.
HY
as
well
as
the
broader
markets,
not
all
HY
issuers
are
expected
to
be
impacted
to
the
same
degree.
Industries
that
are
at
an
elevated
risk
of
repricing
due
to
input
cost
inflation,
such
as
autos
and
food
and
beverage,
are
expected
to
be
in
the
minority
in
the
universe
of
U.S.
HY
issuers.
On
the
contrary,
there
are
industries
such
as
energy
and
metals
and
mining
that
are
expected
to
benefit
from
higher
commodity
prices
as
inflation
pressure
further
increases.
In
general,
we
believe
the
overall
HY
technical
environment
remains
firm.
Inflows
from
institutional
and
non-traditional
HY
investors,
both
foreign
and
domestic,
along
with
elevated
call,
tender
activity
and
natural
coupon
reinvestment
have
supported
the
market
in
spite
of
issuance
that
has
continued
at
a
record-setting
pace
on
a
year-to-date
(YTD)
basis
and
mutual
fund
flows
that
have
turned
negative
YTD.
Overall,
The
U.S.
HY
sector,
as
measured
by
the
ICE
BofA
U.S.
High
Yield
Constrained
Index,
returned
+3.70%
for
the
six-month
period
ending
June
30,
2021,
with
lower
quality
rating
categories
outperforming.
1
Floating
Rate
Corporate
Loans
Technical
conditions
in
the
loan
market
strengthened
during
the
period,
driven
by
positive
developments
on
the
vaccine
front
and
heightened
expectations
for
meaningful
fiscal
stimulus.
Inflows
into
loan
retail
vehicles
accelerated
and
a
significant
increase
in
collateralized
loan
obligation
(CLO)
issuance
contributed
to
the
rally.
The
more
favorable
environment
supported
stronger
demand
for
lower-rated
loans
trading
at
deeper
discounts
to
par,
especially
those
in
industries
that
were
expected
to
benefit
from
a
reopening
economy.
Following
consecutive
months
of
outflows
during
the
prior
period,
retail
vehicle
flows
reversed
course
as
more
investors
looked
to
the
asset
class
in
response
to
rising
Treasury
yields
and
potential
inflation.
Technical
conditions
in
the
loan
market
remained
robust
as
demand
from
CLOs
also
bolstered
support
for
loan
prices.
Liability
spreads
tightened
amid
renewed
investor
interest
in
floating
rate
assets,
as
new
issue
CLO
spreads
for
some
tranches
reached
the
tightest
levels
since
the
global
financial
crisis.
Issuance
of
new
CLOs
increased
in
2021,
outpacing
the
rate
from
the
prior
year,
leading
to
stronger
demand
for
loans
as
new
vehicles
launched.
Positive
flows
and
CLO
issuance
led
to
an
increasing
loan
supply
and
demand
imbalance
at
the
beginning
of
2021,
resulting
in
a
large
portion
of
the
market
trading
above
par.
Arrangers
launched
more
repricing
deals
to
reduce
spreads
on
existing
loans,
after
those
deals
were
largely
absent
from
the
market
for
most
of
2020.
Net
new
volume
eventually
increased,
driven
by
an
increase
in
deals
to
finance
mergers
and
acquisitions.
The
primary
market
also
saw
an
increase
in
opportunistic
deals
for
second
lien
loans
or
those
to
finance
dividends.
Issuance
of
B
rated
loans
exceeded
the
pace
from
prior
periods,
leading
to
a
further
shift
in
the
ratings
mix
in
the
loan
market.
Default
activity
declined
during
the
period,
amid
improving
fundamental
conditions
and
better
investor
sentiment.
The
gradual
decline
in
defaults
led
the
default
rate
to
fall
below
the
historical
average
by
the
end
of
the
period.
While
bifurcation
persisted
between
those
in
industries
less
impacted
by
the
COVID-19
crisis
and
those
affected
by
continued
virus
fears,
the
percentage
of
loans
trading
at
distressed
levels
sharply
declined.
Credit
rating
agencies
also
responded
to
improved
earnings
and
outlook,
leading
to
rating
upgrades
significantly
outpacing
downgrades.
Mortgage-Backed
Securities
(MBS)
and
Securitized
Sectors
Securitized
sector
performance
was
challenged
over
the
period,
with
only
non-agency
mortgage-backed
securities
(RMBS)
posting
positive
total
returns.
Agency
mortgage-
backed
securities
(MBS)
and
commercial
mortgage-backed
securities
(CMBS)
posted
negative
returns
and
lagged
credit-related
sectors
but
outperformed
similar
duration
U.S.
Treasuries.
Mortgage
rates
have
increased
year-to-date
but
have
slowed
their
steady
upward
trajectory.
After
increasing
for
the
first
few
months
of
the
year,
mortgage
rates
have
been
fairly
rangebound
since
late
April
2021.
Despite
the
higher
level
of
rates,
prepayments
have
remained
high
and
primary
and
secondary
spreads
have
retraced
from
their
wider
levels,
1.
Source:
Morningstar
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Franklin
Limited
Duration
Income
Trust
4
franklintempleton.com
Semiannual
Report
which
could
keep
prepayments
elevated
for
the
next
few
months.
Rates
have
increased
year-to-date,
leaving
less
than
half
of
the
agency
MBS
universe
with
an
economic
incentive
to
refinance,
compared
to
80%
in
2020,
which
is
also
likely
to
lead
to
lower
levels
of
prepayments.
Although
tapering
discussions
have
begun,
it
appears
that
the
timing
will
depend
to
a
larger
extent
on
further
progress
in
the
broader
labor
market
than
on
inflation.
Federal
Reserve
(Fed)
Chair
Jerome
Powell
has
reiterated
that
the
first
step
in
adjusting
monetary
policy
will
be
the
tapering
of
asset
purchases
and
that
the
discussion
of
this
process
will
continue
over
the
coming
meetings.
As
part
of
the
Fed’s
goal
of
providing
strong
forward
guidance
of
changes
to
monetary
policy,
any
change
to
asset
purchase
levels
will
be
announced
in
advance
and
that
the
process
will
be
“orderly,
methodical,
and
transparent.”
The
Fed’s
continued
purchases
of
agency
MBS
will
remain
a
key
support
for
the
market,
potentially
limiting
spread
widening
and
keeping
spreads
range
bound;
support
from
the
Fed
should
keep
valuations
stable,
and
agency
MBS
should
continue
to
provide
high
quality
allocation
and
a
modestly
attractive
carry
profile,
in
our
view.
We
decreased
allocation
to
agency
MBS
over
the
period.
The
portfolio’s
mortgage
exposure
remained
heavily
weighted
to
conventional
Freddie
Mac
and
Fannie
Mae
MBS,
mainly
in
3.0%
coupon
securities.
We
maintained
small
allocations
to
RMBS
and
CMBS.
RMBS
allocation
is
primarily
in
credit
risk
transfer
securities.
Supply
and
demand
imbalances
combined
with
mortgage
rates
still
near
historic
lows
will
continue
to
support
a
strong
housing
market
and
remain
supportive
for
the
RMBS
sector,
in
our
view.
Thank
you
for
your
continued
participation
in
Franklin
Limited
Duration
Income
Trust.
We
look
forward
to
serving
your
future
investment
needs.
Sincerely,
David
Yuen,
CFA,
FRM
Sonal
Desai,
Ph.D.
Glenn
I.
Voyles,
CFA
Justin
Ma,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
June
30,
2021,
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
June
30,
2021
Franklin
Limited
Duration
Income
Trust
5
franklintempleton.com
Semiannual
Report
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Total
returns
do
not
reflect
any
sales
charges
paid
at
inception
or
brokerage
commissions
paid
on
secondary
market
purchases.
The
performance
table
does
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.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6/30/21
1,2
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.
Share
Prices
Cumulative
Total
Return
3
Average
Annual
Total
Return
3
Based
on
NAV
4
Based
on
market
price
5
Based
on
NAV
4
Based
on
market
price
5
6-Month
+3.78%
+2.83%
+3.78%
+2.83%
1-Year
+13.98%
+20.62%
+13.98%
+20.62%
5-Year
+19.26%
+33.12%
+3.59%
+5.89%
10-Year
+49.30%
+50.73%
+4.09%
+4.19%
Symbol:
FTF
6/30/21
12/31/20
Change
Net
Asset
Value
(NAV)
$9.31
$9.43
-$0.12
Market
Price
(NYSE)
$9.21
$9.42
-$0.21
See
page
6
for
Performance
Summary
footnotes.
Franklin
Limited
Duration
Income
Trust
Performance
Summary
6
franklintempleton.com
Semiannual
Report
All
investments
involve
risks,
including
possible
loss
of
principal.
Interest-rate
movements
and
mortgage
prepayments
will
affect
the
Fund’s
share
price
and
yield.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
the
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund's
share
price
may
decline.
Changes
in
the
financial
strength
of
a
bond
issuer
or
in
a
bond's
credit
rating
may
affect
its
value.
High
yields
reflect
the
higher
credit
risks
associated
with
certain
lower-rated
securities
held
in
the
portfolio.
Floating-rate
loans
and
high-yield
corporate
bonds
are
rated
below
investment
grade
and
are
subject
to
greater
risk
of
default,
which
could
result
in
loss
of
principal—a
risk
that
may
be
heightened
in
a
slowing
economy.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund
is
actively
managed
but
there
is
no
guarantee
that
the
manager's
investment
decisions
will
produce
the
desired
results.
1.
Figures
are
for
common
shares.
As
of
6/30/21,
the
Fund
had
leverage
in
the
amount
of
33.17%
of
the
Fund’s
total
portfolio.
The
Fund
employs
leverage
through
partic-
ipation
in
a
Credit
Facility,
entering
into
reverse
repurchase
agreements,
and
purchase
of
Mortgage
Dollar
Rolls.
The
use
of
financial
leverage
creates
an
opportunity
for
increased
income
but,
at
the
same
time,
creates
special
risks
(including
the
likelihood
of
greater
volatility
of
net
asset
value
and
market
price
of
common
shares).
The
cost
of
leverage
rises
and
falls
with
changes
in
short-term
interest
rates.
Such
increases/decreases
in
the
cost
of
the
Fund’s
leverage
may
be
offset
by
increased/decreased
income
from
the
Fund’s
floating
rate
investments.
2.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
2/28/22.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
3.
Total
return
calculations
represent
the
cumulative
and
average
annual
changes
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Assumes
reinvestment
of
distributions
based
on
net
asset
value.
5.
Assumes
reinvestment
of
distributions
based
on
the
dividend
reinvestment
and
cash
purchase
plan.
Distributions
(1/1/21–6/30/21)
Net
Investment
Income
$0.4712
Franklin
Limited
Duration
Income
Trust
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2017
a
Year
Ended
March
31,
2017
2020
2019
2018
Per
common
share
operating
performance
(for
a
common
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.43
$10.00
$10.11
$12.32
$12.91
$12.38
Income
from
investment
operations:
Net
investment
income
b
.............
0.26
0.51
0.53
0.57
0.48
0.62
Net
realized
and
unrealized
gains
(losses)
0.09
(0.15)
0.39
(0.79)
(0.03)
0.85
Dividends
to
preferred
shareholders
from
net
investment
income
..............
(0.06)
(0.08)
(0.07)
Total
from
investment
operations
........
0.35
0.36
0.92
(0.28)
0.37
1.40
Less
distributions
to
common
shareholders
from:
Net
investment
income
..............
(0.47)
(0.55)
(0.58)
(0.49)
(0.43)
(0.57)
Tax
return
of
capital
................
(0.38)
(0.45)
(0.68)
(0.53)
(0.36)
Total
distributions
...................
(0.47)
(0.93)
(1.03)
(1.17)
(0.96)
(0.93)
Repurchase
of
shares
..............
0.06
Dilution
effect
of
rights
offering
........
(0.76)
c
Net
asset
value,
end
of
period
..........
$9.31
$9.43
$10.00
$10.11
$12.32
$12.91
Market
value,
end
of
period
d
...........
$9.21
$9.42
$9.59
$9.02
$11.83
$11.97
Total
return
(based
on
market
value
per
share)
e
...........................
2.83%
9.43%
18.34%
(14.86)%
7.08%
14.07%
Ratios
to
average
net
assets
applicable
to
common
shares
f,g
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.69%
1.86%
2.16%
1.73%
1.25%
1.35%
Expenses
net
of
waiver
and
payments
by
affiliates
h
..........................
1.68%
1.85%
2.15%
1.71%
1.23%
1.32%
Net
investment
income
...............
5.54%
5.51%
5.15%
4.97%
5.04%
4.83%
Supplemental
data
Net
assets
applicable
to
common
shares,
end
of
period
(000’s)
.................
$280,632
$284,199
$301,452
$304,804
$278,489
$291,875
Portfolio
turnover
rate
................
53.73%
106.46%
113.49%
198.44%
168.28%
265.00%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
........................
25.05%
60.46%
57.50%
63.84%
46.49%
93.00%
Total
credit
facility
and
reverse
repurchase
agreements
outstanding
at
end
of
period
(000’s)
...........................
$119,398
$111,505
$107,117
$90,000
j
$—
$—
Asset
coverage
per
preferred
share
......
$—
$—
$—
$—
k
$72,311
$74,809
Liquidation
preference
per
preferred
share
$—
$—
$—
$—
k
$25,000
$25,000
Asset
coverage
per
$1,000
of
debt
......
$3,350
$3,549
$3,814
$4,387
j
$—
$—
a
For
the
period
April
1,
2017
to
December
31,
2017.
b
Based
on
average
daily
shares
outstanding.
c
Represents
the
impact
of
Fund’s
rights
offering
of
7,534,709
common
shares
in
October
2018
as
a
subscription
price
per
share
based
on
a
formula.
d
Based
on
the
last
sale
on
the
NYSE
American.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Based
on
income
and
expenses
applicable
to
both
common
and
preferred
shares.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
See
Note
1(d)
regarding
mortgage
dollar
rolls.
j
Effective
August
15,
2018,
the
Fund
began
participating
in
a
credit
facility.
k
Effective
August
15,
2018,
the
Fund's
preferred
shares
were
liquidated.
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited),
June
30,
2021
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.3%
Energy
Equipment
&
Services
0.0%
a
Weatherford
International
plc
.............................
United
States
6,610
$
120,302
Hotels,
Restaurants
&
Leisure
0.0%
24
Hour
Fitness
Worldwide,
Inc.
..........................
United
States
24,950
58,221
Machinery
0.1%
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
2,309
34,635
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
17,998
267,720
302,355
Metals
&
Mining
0.1%
a
Petra
Diamonds
Ltd.
...................................
South
Africa
16,570,078
336,969
Oil,
Gas
&
Consumable
Fuels
0.0%
a
Amplify
Energy
Corp.
..................................
United
States
281
1,138
a
California
Resources
Corp.
..............................
United
States
42
1,266
a,b,c
Nine
Point
Energy
LLC
.................................
United
States
2,334,763
a,b
Riviera
Resources,
Inc.
.................................
United
States
6,305
1,628
4,032
Road
&
Rail
0.0%
a,b
Onsite
Rental
Group
Operations
Pty.
Ltd.
...................
Australia
522,133
Specialty
Retail
0.1%
a
Party
City
Holdco,
Inc.
..................................
United
States
17,163
160,130
Total
Common
Stocks
(Cost
$2,412,579)
.......................................
982,009
Preferred
Stocks
0.1%
Hotels,
Restaurants
&
Leisure
0.1%
a
24
Hour
Fitness
Worldwide,
Inc.
..........................
United
States
59,089
177,267
a
Total
Preferred
Stocks
(Cost
$79,741)
..........................................
177,267
Warrants
Warrants
0.0%
Oil,
Gas
&
Consumable
Fuels
0.0%
a,b
Battalion
Oil
Corp.,
A,
10/08/22
...........................
United
States
752
213
a,b
Battalion
Oil
Corp.,
B,
10/08/22
...........................
United
States
940
150
a,b
Battalion
Oil
Corp.,
C,
10/08/22
...........................
United
States
1,209
89
a
California
Resources
Corp.,
10/27/24
......................
United
States
96
737
1,189
Paper
&
Forest
Products
0.0%
a
Verso
Corp.,
7/25/23
...................................
United
States
438
1,196
Total
Warrants
(Cost
$—)
.....................................................
2,385
Principal
Amount
*
Convertible
Bonds
0.0%
Wireless
Telecommunication
Services
0.0%
d,e,f
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
32,589
24,765
Total
Convertible
Bonds
(Cost
$6,928)
.........................................
24,765
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
66.2%
Aerospace
&
Defense
0.5%
f,g
TransDigm,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
3/15/26
....
United
States
1,400,000
$
1,478,750
Air
Freight
&
Logistics
0.1%
f,g
DAE
Funding
LLC
,
Senior
Note
,
144A,
4.5
%
,
8/01/22
..........
United
Arab
Emirates
400,000
401,794
Airlines
1.2%
f,g
American
Airlines
Inc/AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.5
%
,
4/20/26
.............................
United
States
1,000,000
1,060,000
f
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.....................................
United
States
500,000
556,283
f
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd.
,
Senior
Secured
Note
,
144A,
6.5
%
,
6/20/27
.......
United
States
1,200,000
1,322,700
f
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
100,000
103,643
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
300,000
310,875
3,353,501
Auto
Components
1.4%
f
Adient
US
LLC
,
Senior
Secured
Note
,
144A,
9
%
,
4/15/25
.......
United
States
300,000
331,194
h
Dana,
Inc.
,
Senior
Note
,
5.625
%
,
6/15/28
...................
United
States
1,400,000
1,517,880
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note
,
9.5
%
,
5/31/25
...
United
States
1,000,000
1,119,000
f
Real
Hero
Merger
Sub
2,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
2/01/29
.
United
States
1,000,000
1,038,600
4,006,674
Banks
0.6%
e,g
JPMorgan
Chase
&
Co.
,
R
,
Junior
Sub.
Bond
,
6%
to
8/01/23,
FRN
thereafter
,
Perpetual
.................................
United
States
1,500,000
1,595,625
Beverages
0.3%
f
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
700,000
700,875
Biotechnology
0.7%
f,g
Emergent
BioSolutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
8/15/28
.
United
States
900,000
882,909
f
Horizon
Therapeutics
USA,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
8/01/27
United
States
1,100,000
1,169,575
2,052,484
Building
Products
1.4%
f
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
...........................................
United
States
1,000,000
1,074,540
f,g
JELD-WEN,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
12/15/25
.........
United
States
1,600,000
1,634,008
f
Standard
Industries,
Inc.
,
Senior
Note
,
144A,
5
%
,
2/15/27
.......
United
States
300,000
311,062
f,g
Summit
Materials
LLC
/
Summit
Materials
Finance
Corp.
,
Senior
Note
,
144A,
5.25
%
,
1/15/29
............................
United
States
800,000
851,072
3,870,682
Chemicals
2.0%
Anagram,
Inc.
,
Secured
Note
,
10
%
,
8/15/26
.................
United
States
132,919
128,562
f
CVR
Partners
LP
/
CVR
Nitrogen
Finance
Corp.
,
Senior
Secured
Note
,
144A,
6.125
%
,
6/15/28
...........................
United
States
300,000
307,875
f,g
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
700,000
715,235
f,h
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
1,500,000
1,640,423
f
Illuminate
Buyer
LLC
/
Illuminate
Holdings
IV,
Inc.
,
Senior
Note
,
144A,
9
%
,
7/01/28
...................................
United
States
1,000,000
1,117,020
f
Ingevity
Corp.
,
Senior
Note
,
144A,
3.875
%
,
11/01/28
...........
United
States
400,000
397,516
f
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
600,000
621,528
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
(continued)
f
SCIH
Salt
Holdings,
Inc.
,
Senior
Note,
144A,
6.625%,
5/01/29
.....................
United
States
500,000
$
501,875
Senior
Secured
Note,
144A,
4.875%,
5/01/28
..............
United
States
300,000
300,732
5,730,766
Commercial
Services
&
Supplies
1.4%
f
Allied
Universal
Holdco
LLC
/
Allied
Universal
Finance
Corp.
,
Senior
Note
,
144A,
6
%
,
6/01/29
..............................
United
States
200,000
203,022
f
Allied
Universal
Holdco
LLC
/
Allied
Universal
Finance
Corp.
/
Atlas
LuxCo
4
SARL
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/01/28
..
United
States
500,000
501,622
f,g
GFL
Environmental,
Inc.
,
Senior
Secured
Note
,
144A,
5.125
%
,
12/15/26
..........................................
Canada
1,200,000
1,273,176
f,g
Harsco
Corp.
,
Senior
Note
,
144A,
5.75
%
,
7/31/27
.............
United
States
1,400,000
1,470,644
f,g
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
600,000
582,750
4,031,214
Construction
&
Engineering
1.6%
f
Arcosa,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
300,000
305,850
f
Great
Lakes
Dredge
&
Dock
Corp.
,
Senior
Note
,
144A,
5.25
%
,
6/01/29
...........................................
United
States
500,000
516,450
f,g
New
Enterprise
Stone
&
Lime
Co.,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
3/15/26
.....................................
United
States
1,500,000
1,545,397
f
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.......
United
States
800,000
816,848
f
Weekley
Homes
LLC
/
Weekley
Finance
Corp.
,
Senior
Note
,
144A,
4.875
%
,
9/15/28
.....................................
United
States
1,300,000
1,349,998
4,534,543
Consumer
Finance
1.0%
f
FirstCash,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
9/01/28
...........
United
States
400,000
418,742
g
Navient
Corp.
,
Senior
Note
,
6.5%,
6/15/22
............................
United
States
200,000
208,790
Senior
Note,
7.25%,
9/25/23
...........................
United
States
400,000
442,602
OneMain
Finance
Corp.
,
g
Senior
Bond,
5.375%,
11/15/29
.........................
United
States
500,000
544,870
Senior
Note,
8.875%,
6/01/25
..........................
United
States
500,000
555,830
g
Senior
Note,
6.625%,
1/15/28
..........................
United
States
600,000
689,898
2,860,732
Containers
&
Packaging
4.2%
f,g
Ardagh
Metal
Packaging
Finance
USA
LLC
/
Ardagh
Metal
Packaging
Finance
plc
,
Senior
Note
,
144A,
4
%
,
9/01/29
.......
United
States
1,500,000
1,490,625
f
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
600,000
612,798
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
600,000
631,500
g
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp.
VI
,
Senior
Note
,
4.75
%
,
2/01/26
.................................
United
States
500,000
519,503
f
Mauser
Packaging
Solutions
Holding
Co.
,
g
Senior
Note,
144A,
7.25%,
4/15/25
......................
United
States
1,500,000
1,473,000
h
Senior
Secured
Note,
144A,
8.5%,
4/15/24
................
United
States
1,200,000
1,247,862
f
Owens-Brockway
Glass
Container,
Inc.
,
g
Senior
Note,
144A,
5.875%,
8/15/23
.....................
United
States
400,000
431,848
Senior
Note
,
144A,
6.625%,
5/13/27
.....................
United
States
500,000
544,750
f,g
Plastipak
Holdings,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
10/15/25
....
United
States
1,500,000
1,538,887
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Containers
&
Packaging
(continued)
f,h
Reynolds
Group
Issuer,
Inc.
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
Luxembourg
SA
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
..........................................
United
States
1,200,000
$
1,193,186
f,g
Sealed
Air
Corp.
,
Senior
Bond,
144A,
5.5%,
9/15/25
.......................
United
States
600,000
673,146
Senior
Note,
144A,
5.125%,
12/01/24
....................
United
States
500,000
545,925
f,g
Trivium
Packaging
Finance
BV
,
Senior
Note
,
144A,
8.5
%
,
8/15/27
.
Netherlands
800,000
871,808
11,774,838
Diversified
Financial
Services
0.5%
f,h
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
1,500,000
1,509,353
Diversified
Telecommunication
Services
1.3%
f
Altice
France
Holding
SA
,
Senior
Note,
144A,
6%,
2/15/28
........................
Luxembourg
300,000
299,154
g
Senior
Secured
Note,
144A,
10.5%,
5/15/27
...............
Luxembourg
1,700,000
1,891,276
f,g
DKT
Finance
ApS
,
Senior
Secured
Note
,
144A,
9.375
%
,
6/17/23
..
Denmark
1,500,000
1,535,625
3,726,055
Electric
Utilities
1.0%
f,i
Leeward
Renewable
Energy
Operations
LLC
,
Senior
Note
,
144A,
4.25
%
,
7/01/29
.....................................
United
States
1,000,000
1,015,000
f
Vistra
Operations
Co.
LLC
,
g
Senior
Note,
144A,
5.625%,
2/15/27
.....................
United
States
1,300,000
1,350,375
Senior
Note,
144A,
4.375%,
5/01/29
.....................
United
States
400,000
402,500
2,767,875
Electrical
Equipment
0.4%
f,g
Sensata
Technologies
BV
,
Senior
Note
,
144A,
4
%
,
4/15/29
......
United
States
1,000,000
1,016,333
Electronic
Equipment,
Instruments
&
Components
0.5%
CDW
LLC
/
CDW
Finance
Corp.
,
Senior
Note
,
4.125
%
,
5/01/25
...
United
States
900,000
941,760
f
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
........
United
States
500,000
503,655
1,445,415
Energy
Equipment
&
Services
1.2%
f,g
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.
,
d
Secured
Note,
144A,
PIK,
10%,
4/01/26
..................
United
States
1,040,621
942,962
Senior
Secured
Note,
144A,
7.5%,
4/01/25
................
United
States
325,000
330,525
f
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
1,000,000
982,015
f
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
11
%
,
12/01/24
.
United
States
916,000
953,803
3,209,305
Entertainment
1.2%
f,g
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
5.375
%
,
3/01/25
...........................................
France
2,000,000
2,071,060
f
Live
Nation
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
3.75
%
,
1/15/28
...........................................
United
States
200,000
201,172
f,h
Netflix,
Inc.
,
Senior
Note
,
144A,
3.625
%
,
6/15/25
..............
United
States
1,100,000
1,184,612
3,456,844
Equity
Real
Estate
Investment
Trusts
(REITs)
1.1%
f
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
800,000
792,919
f
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
,
Senior
Note
,
144A,
6
%
,
4/15/25
...........................................
United
States
400,000
422,822
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
g
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
5.25
%
,
8/01/26
.....................................
United
States
300,000
$
309,813
f
Park
Intermediate
Holdings
LLC
/
PK
Domestic
Property
LLC
/
PK
Finance
Co-Issuer
,
Senior
Secured
Note
,
144A,
5.875
%
,
10/01/28
United
States
500,000
533,987
f,g
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...........................................
United
States
700,000
714,305
f
XHR
LP
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/01/29
.........
United
States
400,000
413,500
3,187,346
Food
Products
1.4%
g
B&G
Foods,
Inc.
,
Senior
Note,
5.25%,
4/01/25
...........................
United
States
1,000,000
1,028,350
Senior
Note
,
5.25%,
9/15/27
...........................
United
States
400,000
417,116
f
JBS
Finance
Luxembourg
SARL
,
Senior
Bond
,
144A,
3.625
%
,
1/15/32
...........................................
United
States
400,000
400,276
g
Kraft
Heinz
Foods
Co.
,
Senior
Note
,
3.875
%
,
5/15/27
..........
United
States
800,000
879,606
f,g
Lamb
Weston
Holdings,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
11/01/24
United
States
1,100,000
1,141,289
3,866,637
Health
Care
Equipment
&
Supplies
0.1%
f
Ortho-Clinical
Diagnostics,
Inc.
/
Ortho-Clinical
Diagnostics
SA
,
Senior
Note
,
144A,
7.375
%
,
6/01/25
......................
United
States
180,000
194,007
Health
Care
Providers
&
Services
2.9%
g
Centene
Corp.
,
f
Senior
Note,
144A,
5.375%,
6/01/26
.....................
United
States
1,000,000
1,046,250
f
Senior
Note,
144A,
5.375%,
8/15/26
.....................
United
States
1,000,000
1,046,395
Senior
Note,
4.25%,
12/15/27
..........................
United
States
400,000
422,000
f
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
500,000
508,125
Senior
Secured
Note,
144A,
6.625%,
2/15/25
..............
United
States
500,000
529,370
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
400,000
427,526
f
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
700,000
720,629
f,g
MEDNAX,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
1/15/27
............
United
States
1,300,000
1,380,269
f
ModivCare,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
11/15/25
.........
United
States
1,500,000
1,608,877
f,g
Tenet
Healthcare
Corp.
,
Senior
Secured
Note
,
144A,
4.875
%
,
1/01/26
...........................................
United
States
500,000
519,225
8,208,666
Hotels,
Restaurants
&
Leisure
6.1%
f,g
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.25
%
,
5/15/24
.................................
Canada
414,000
418,813
f,j
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
.
United
States
1,500,000
450
f
Boyd
Gaming
Corp.
,
Senior
Note
,
144A,
8.625
%
,
6/01/25
.......
United
States
1,300,000
1,434,706
f
Boyne
USA,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
5/15/29
...........
United
States
300,000
310,384
f
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
7/01/25
...........................................
United
States
900,000
955,125
f
Caesars
Resort
Collection
LLC
/
CRC
Finco,
Inc.
,
Senior
Secured
Note
,
144A,
5.75
%
,
7/01/25
............................
United
States
400,000
422,000
f
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
.....................
United
States
400,000
435,000
g
Senior
Note,
144A,
5.75%,
3/01/27
......................
United
States
1,500,000
1,573,125
f,g
Downstream
Development
Authority
of
the
Quapaw
Tribe
of
Oklahoma
,
Senior
Secured
Note
,
144A,
10.5
%
,
2/15/23
.......
United
States
1,400,000
1,465,520
f
Everi
Holdings,
Inc.
,
Senior
Note
,
144A,
5
%
,
7/15/29
...........
United
States
700,000
700,000
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
f
Genting
New
York
LLC
/
GENNY
Capital,
Inc.
,
Senior
Note
,
144A,
3.3
%
,
2/15/26
......................................
United
States
400,000
$
404,630
f
Golden
Nugget,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
10/15/24
.......
United
States
1,200,000
1,213,764
f
International
Game
Technology
plc
,
Senior
Secured
Note,
144A,
4.125%,
4/15/26
..............
United
States
400,000
417,000
Senior
Secured
Note,
144A,
5.25%,
1/15/29
...............
United
States
400,000
429,570
f
Motion
Bondco
DAC
,
Senior
Note
,
144A,
6.625
%
,
11/15/27
......
United
Kingdom
200,000
203,292
f
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
...........
United
States
300,000
314,915
f,i
Penn
National
Gaming,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
7/01/29
.
United
States
400,000
400,500
f
Six
Flags
Theme
Parks,
Inc.
,
Senior
Secured
Note
,
144A,
7
%
,
7/01/25
...........................................
United
States
400,000
431,610
f
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
1,500,000
1,516,530
f
Vail
Resorts,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
5/15/25
..........
United
States
200,000
214,652
f,g
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.
,
Senior
Bond
,
144A,
5.5
%
,
3/01/25
.................................
United
States
1,700,000
1,834,793
f
Wynn
Macau
Ltd.
,
Senior
Note
,
144A,
5.625
%
,
8/26/28
.........
Macau
500,000
522,815
f,g
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.75
%
,
4/15/25
............................
United
States
1,500,000
1,619,895
17,239,089
Household
Durables
1.1%
f
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
g
Senior
Note,
144A,
9.875%,
4/01/27
.....................
United
States
1,000,000
1,121,960
Senior
Note,
144A,
6.625%,
1/15/28
.....................
United
States
500,000
534,597
f,g
Taylor
Morrison
Communities,
Inc.
/
Taylor
Morrison
Holdings
II,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
4/15/23
......................
United
States
1,000,000
1,071,245
f
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
300,000
310,410
3,038,212
Independent
Power
and
Renewable
Electricity
Producers
2.3%
f
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
4.125
%
,
6/15/28
...........................................
Spain
400,000
408,020
f,g
Calpine
Corp.
,
Senior
Note
,
144A,
5.125
%
,
3/15/28
............
United
States
1,500,000
1,528,372
Clearway
Energy
Operating
LLC
,
g
Senior
Note
,
5%,
9/15/26
.............................
United
States
1,000,000
1,030,730
f,g
Senior
Note,
144A,
4.75%,
3/15/28
......................
United
States
300,000
315,063
f
Senior
Note,
144A,
3.75%,
2/15/31
......................
United
States
200,000
199,269
f,g
InterGen
NV
,
Senior
Secured
Bond
,
144A,
7
%
,
6/30/23
.........
Netherlands
2,000,000
1,992,330
Talen
Energy
Supply
LLC
,
Senior
Note
,
6.5
%
,
6/01/25
..........
United
States
1,600,000
1,077,328
6,551,112
Insurance
0.6%
f,g
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note
,
144A,
6.75
%
,
10/15/27
...........................
United
States
1,500,000
1,578,345
Internet
&
Direct
Marketing
Retail
0.2%
f
Match
Group
Holdings
II
LLC
,
Senior
Note
,
144A,
4.625
%
,
6/01/28
United
States
500,000
520,935
IT
Services
1.7%
f
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
700,000
694,169
f
Cogent
Communications
Group,
Inc.
,
Senior
Secured
Note
,
144A,
3.5
%
,
5/01/26
......................................
United
States
500,000
511,875
f
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
500,000
528,717
Senior
Note
,
144A,
3.625%,
6/15/29
.....................
United
States
200,000
203,250
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
(continued)
f
Northwest
Fiber
LLC
/
Northwest
Fiber
Finance
Sub,
Inc.
,
Senior
Note
,
144A,
6
%
,
2/15/28
..............................
United
States
1,100,000
$
1,103,938
f,g
Presidio
Holdings,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
2/01/28
......
United
States
400,000
436,468
f
Tempo
Acquisition
LLC
/
Tempo
Acquisition
Finance
Corp.
,
Senior
Note
,
144A,
6.75
%
,
6/01/25
............................
United
States
1,300,000
1,321,944
4,800,361
Machinery
1.7%
f
ATS
Automation
Tooling
Systems,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
12/15/28
..........................................
Canada
1,300,000
1,335,353
Hillenbrand,
Inc.
,
Senior
Note
,
5.75
%
,
6/15/25
................
United
States
800,000
859,720
f,g
Manitowoc
Co.,
Inc.
(The)
,
Secured
Note
,
144A,
9
%
,
4/01/26
....
United
States
1,000,000
1,088,775
f
Navistar
International
Corp.
,
Senior
Note
,
144A,
6.625
%
,
11/01/25
United
States
400,000
413,252
f
TK
Elevator
U.S.
Newco,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
...........................................
Germany
600,000
633,000
f
Vertical
Holdco
GmbH
,
Senior
Note
,
144A,
7.625
%
,
7/15/28
.....
Germany
300,000
326,157
4,656,257
Media
3.9%
f
Clear
Channel
International
BV
,
Senior
Secured
Note
,
144A,
6.625
%
,
8/01/25
.....................................
United
Kingdom
300,000
316,302
f
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
300,000
314,642
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
200,000
207,317
f
Clear
Channel
Worldwide
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
5.125
%
,
8/15/27
................................
United
States
300,000
308,335
g
CSC
Holdings
LLC
,
Senior
Bond,
5.25%,
6/01/24
...........................
United
States
500,000
542,477
Senior
Note,
6.75%,
11/15/21
..........................
United
States
1,000,000
1,022,115
f
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
g
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
500,000
246,250
Senior
Secured
Note,
144A,
5.375%,
8/15/26
..............
United
States
400,000
259,520
f,g
Gray
Television,
Inc.
,
Senior
Note
,
144A,
7
%
,
5/15/27
..........
United
States
400,000
433,804
f,g
iHeartCommunications,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
8/15/27
...........................................
United
States
700,000
733,180
f,g
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
.....................................
United
States
500,000
540,223
f
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
.............
United
States
200,000
202,250
f
Nexstar
Broadcasting,
Inc.
,
g
Senior
Note,
144A,
5.625%,
7/15/27
.....................
United
States
1,000,000
1,061,250
Senior
Note,
144A,
4.75%,
11/01/28
.....................
United
States
200,000
205,750
f
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Note
,
144A,
4.25
%
,
1/15/29
............................
United
States
400,000
403,300
f,g
Scripps
Escrow,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
7/15/27
.......
United
States
500,000
518,385
f
Sinclair
Television
Group,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
3/01/30
.
United
States
700,000
714,714
f
Sirius
XM
Radio,
Inc.
,
Senior
Note,
144A,
4.625%,
7/15/24
.....................
United
States
600,000
617,217
Senior
Note,
144A,
4%,
7/15/28
........................
United
States
600,000
618,750
f
Univision
Communications,
Inc.
,
g
Senior
Secured
Note,
144A,
9.5%,
5/01/25
................
United
States
1,200,000
1,327,098
Senior
Secured
Note,
144A,
4.5%,
5/01/29
................
United
States
400,000
403,924
10,996,803
Metals
&
Mining
1.5%
g
Commercial
Metals
Co.
,
Senior
Bond
,
3.875
%
,
2/15/31
.........
United
States
1,200,000
1,209,000
f,g
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
600,000
594,762
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Metals
&
Mining
(continued)
f,g
Joseph
T
Ryerson
&
Son,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
8/01/28
...........................................
United
States
1,080,000
$
1,202,650
d,f
Petra
Diamonds
US
Treasury
plc
,
Senior
Secured
Note
,
144A,
PIK,
10.5
%
,
3/08/26
.....................................
South
Africa
637,000
625,667
f
SunCoke
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/30/29
United
States
600,000
600,000
4,232,079
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.4%
f
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
................................
United
States
1,000,000
987,350
Oil,
Gas
&
Consumable
Fuels
6.7%
f
Antero
Resources
Corp.
,
Senior
Note,
144A,
8.375%,
7/15/26
.....................
United
States
200,000
227,750
Senior
Note,
144A,
7.625%,
2/01/29
.....................
United
States
200,000
222,260
g
Apache
Corp.
,
Senior
Note
,
4.625
%
,
11/15/25
................
United
States
300,000
324,854
g
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
7.75
%
,
4/15/23
...........................
United
States
1,000,000
998,600
Cheniere
Corpus
Christi
Holdings
LLC
,
Senior
Secured
Note
,
5.875
%
,
3/31/25
.....................................
United
States
400,000
458,711
Cheniere
Energy
Partners
LP
,
g
Senior
Note,
5.625%,
10/01/26
.........................
United
States
400,000
416,000
g
Senior
Note,
4.5%,
10/01/29
...........................
United
States
900,000
968,625
f
Senior
Note,
144A,
4%,
3/01/31
........................
United
States
1,000,000
1,046,250
f
Cheniere
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
10/15/28
..........................................
United
States
600,000
633,750
f
Chesapeake
Energy
Corp.
,
Senior
Note
,
144A,
5.5
%
,
2/01/26
....
United
States
500,000
528,900
f,h
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note
,
144A,
6
%
,
2/01/29
....................
United
States
1,500,000
1,573,125
f
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
300,000
315,481
f
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond,
144A,
5.75%,
1/30/28
......................
United
States
800,000
854,136
Senior
Note,
144A,
6.625%,
7/15/25
.....................
United
States
500,000
536,508
d,f
EnQuest
plc
,
Senior
Note
,
144A,
Reg
S,
PIK,
7
%
,
10/15/23
......
United
Kingdom
1,050,816
967,074
f
EQT
Corp.
,
Senior
Note
,
144A,
3.125
%
,
5/15/26
..............
United
States
300,000
307,831
b,c
Goodrich
Petroleum
Corp.
,
13.5
%
,
5/31/23
..................
United
States
1,520,250
1,618,185
f
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Note
,
144A,
5.75
%
,
2/01/29
...........................................
United
States
500,000
521,952
f
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note,
144A,
10%,
2/29/24
......................
United
States
208,912
214,918
Secured
Note,
144A,
11.5%,
2/28/25
.....................
United
States
948,728
987,991
d,f,j
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
...
United
States
606,187
3,092
f
Oasis
Midstream
Partners
LP
/
OMP
Finance
Corp.
,
Senior
Note
,
144A,
8
%
,
4/01/29
...................................
United
States
500,000
532,967
Occidental
Petroleum
Corp.
,
k
Senior
Note,
FRN,
1.606%,
(3-month
USD
LIBOR
+
1.45%),
8/15/22
...........................................
United
States
1,100,000
1,094,845
Senior
Note,
5.875%,
9/01/25
..........................
United
States
200,000
222,755
Senior
Note,
5.5%,
12/01/25
...........................
United
States
1,000,000
1,108,145
h
Senior
Note,
8.5%,
7/15/27
............................
United
States
1,000,000
1,262,655
f
Renewable
Energy
Group,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
6/01/28
...........................................
United
States
400,000
420,636
f,g
Viper
Energy
Partners
LP
,
Senior
Note
,
144A,
5.375
%
,
11/01/27
..
United
States
400,000
417,842
18,785,838
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
Corporate
Bonds
(continued)
Personal
Products
0.3%
f
Prestige
Brands,
Inc.
,
Senior
Bond,
144A,
3.75%,
4/01/31
......................
United
States
300,000
$
289,837
g
Senior
Note,
144A,
5.125%,
1/15/28
.....................
United
States
500,000
528,190
818,027
Pharmaceuticals
2.8%
f,g
Bausch
Health
Americas,
Inc.
,
Senior
Note
,
144A,
9.25
%
,
4/01/26
.
United
States
1,500,000
1,633,425
f
Bausch
Health
Cos.,
Inc.
,
Senior
Bond
,
144A,
6.125
%
,
4/15/25
...
United
States
290,000
297,613
f,g
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
492,000
502,462
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
613,000
414,174
f
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
500,000
490,625
f
Jazz
Securities
DAC
,
Senior
Secured
Note
,
144A,
4.375
%
,
1/15/29
United
States
1,300,000
1,349,465
f,h
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Bond,
144A,
5.125%,
4/30/31
.....................
United
States
700,000
722,015
Senior
Secured
Note,
144A,
4.125%,
4/30/28
..............
United
States
1,300,000
1,327,365
f,g
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
203,000
207,804
g
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
7.125
%
,
1/31/25
.....................................
Israel
900,000
993,442
7,938,390
Real
Estate
Management
&
Development
0.8%
f,g
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
1,000,000
1,058,860
f
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
3.85
%
,
5/15/26
........
United
States
500,000
505,150
f,g
Howard
Hughes
Corp.
(The)
,
Senior
Note
,
144A,
5.375
%
,
8/01/28
.
United
States
500,000
531,815
2,095,825
Road
&
Rail
0.5%
f
NESCO
Holdings
II,
Inc.
,
Secured
Note
,
144A,
5.5
%
,
4/15/29
....
United
States
500,000
522,500
b,d
Onsite
Rental
Group
Operations
Pty.
Ltd.
,
PIK,
6.1
%
,
10/26/23
...
Australia
952,561
879,807
1,402,307
Semiconductors
&
Semiconductor
Equipment
0.1%
f
ON
Semiconductor
Corp.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
...
United
States
300,000
309,476
Software
1.6%
f,g
Blackboard,
Inc.
,
Secured
Note
,
144A,
10.375
%
,
11/15/24
.......
United
States
1,600,000
1,699,000
f,g
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
.
United
States
700,000
734,706
f
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
800,000
794,928
f
ZoomInfo
Technologies
LLC/ZoomInfo
Finance
Corp.
,
Senior
Note
,
144A,
3.875
%
,
2/01/29
................................
United
States
1,200,000
1,194,282
4,422,916
Specialty
Retail
1.3%
f
L
Brands,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/01/30
...........
United
States
500,000
579,375
f,g
Lithia
Motors,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
12/15/27
........
United
States
400,000
424,320
f
Magic
Mergeco,
Inc.
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
600,000
619,500
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
300,000
308,154
Party
City
Holdings,
Inc.
,
Senior
Secured
Note
,
5.75
%
,
7/15/25
...
United
States
239,415
227,744
f,g
Rent-A-Center,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
2/15/29
.......
United
States
1,000,000
1,075,750
f
Victoria's
Secret
&
Co.
,
Senior
Note
,
144A,
4.625
%
,
7/15/29
.....
United
States
400,000
400,000
3,634,843
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
Corporate
Bonds
(continued)
Textiles,
Apparel
&
Luxury
Goods
0.4%
f,g
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
5/15/24
........
United
States
1,000,000
$
1,061,250
Thrifts
&
Mortgage
Finance
1.7%
f
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
300,000
300,375
g
MGIC
Investment
Corp.
,
Senior
Note
,
5.25
%
,
8/15/28
..........
United
States
500,000
530,625
f
PennyMac
Financial
Services,
Inc.
,
Senior
Note
,
144A,
5.375
%
,
10/15/25
..........................................
United
States
900,000
949,918
f
Quicken
Loans
LLC
/
Quicken
Loans
Co-Issuer,
Inc.
,
Senior
Note
,
144A,
3.625
%
,
3/01/29
................................
United
States
1,100,000
1,088,455
Radian
Group,
Inc.
,
Senior
Note
,
6.625
%
,
3/15/25
.............
United
States
900,000
1,016,883
f
United
Wholesale
Mortgage
LLC
,
Senior
Note
,
144A,
5.5
%
,
11/15/25
United
States
900,000
934,619
4,820,875
Trading
Companies
&
Distributors
0.8%
f,h
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
1,200,000
1,182,300
g
United
Rentals
North
America,
Inc.
,
Senior
Bond
,
5.875
%
,
9/15/26
United
States
600,000
622,437
f
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
6/15/25
...
United
States
500,000
540,975
2,345,712
Wireless
Telecommunication
Services
1.7%
d
Digicel
Group
Holdings
Ltd.
,
f
Senior
Note,
144A,
PIK,
8%,
4/01/25
.....................
Bermuda
198,246
165,420
Senior
Secured
Note,
PIK,
10%,
4/01/24
..................
Bermuda
140,277
134,805
g
Sprint
Corp.
,
Senior
Note
,
7.25%,
9/15/21
...........................
United
States
500,000
508,433
Senior
Note,
7.875%,
9/15/23
..........................
United
States
1,000,000
1,137,326
Senior
Note,
7.125%,
6/15/24
..........................
United
States
300,000
346,500
g
T-Mobile
USA,
Inc.
,
Senior
Bond,
2.875%,
2/15/31
..........................
United
States
300,000
298,125
Senior
Note,
4%,
4/15/22
.............................
United
States
700,000
714,430
Senior
Note,
2.625%,
4/15/26
..........................
United
States
1,000,000
1,024,985
Senior
Note,
2.625%,
2/15/29
..........................
United
States
300,000
296,625
4,626,649
Total
Corporate
Bonds
(Cost
$182,188,728)
.....................................
185,842,965
a
k,l
Senior
Floating
Rate
Interests
47.0%
Aerospace
&
Defense
1.0%
AI
Convoy
(Luxembourg)
SARL
,
Facility
USD
Term
Loan,
B
,
4.5
%
,
(
2-month
USD
LIBOR
+
3.5%;
6-month
USD
LIBOR
+
3.5%
),
1/18/27
...........................................
Luxembourg
738,634
739,229
d
Alloy
FinCo
Ltd.
,
Facility
Term
Loan,
B
,
14
%
,
PIK,
(
3-month
USD
LIBOR
+
0.5
%
),
3/06/25
...............................
United
Kingdom
707,437
673,304
Dynasty
Acquisition
Co.,
Inc.
,
2020
Term
Loan,
B1,
3.647%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
...........................................
United
States
999,671
975,304
2020
Term
Loan,
B2,
3.647%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
...........................................
United
States
537,458
524,357
2,912,194
a
a
a
a
a
a
Air
Freight
&
Logistics
0.5%
Kenan
Advantage
Group,
Inc.
(The)
,
U.S.
Term
Loan,
B1
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
3/24/26
..................
United
States
1,389,214
1,394,750
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Airlines
1.3%
AAdvantage
Loyalty
IP
Ltd.
(American
Airlines,
Inc.)
,
Initial
Term
Loan
,
5.5
%
,
(
3-month
USD
LIBOR
+
4.75
%
),
4/20/28
.........
United
States
724,129
$
755,857
Allegiant
Travel
Co.
,
Replacement
Term
Loan
,
3.156
%
,
(
3-month
USD
LIBOR
+
3
%
),
2/05/24
............................
United
States
557,551
555,321
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Initial
Term
Loan
,
4.75
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
10/20/27
.................
United
States
546,388
577,841
Kestrel
Bidco,
Inc.
,
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3
%
),
12/11/26
..........................................
Canada
847,714
832,349
United
AirLines,
Inc.
,
Term
Loan,
B
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
4/21/28
.....................................
United
States
1,001,953
1,016,496
3,737,864
a
a
a
a
a
a
Auto
Components
1.4%
Adient
US
LLC
,
Term
Loan,
B1
,
3.604
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
4/10/28
......................................
United
States
1,250,000
1,252,150
Clarios
Global
LP
,
First
Lien,
Amendment
No.
1
Dollar
Term
Loan
,
3.354
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
4/30/26
............
United
States
521,010
517,266
First
Brands
Group
LLC
,
First
Lien,
2021
Term
Loan
,
6
%
,
(
1-month
USD
LIBOR
+
5
%
),
3/30/27
............................
United
States
845,115
856,384
Highline
Aftermarket
Acquisition
LLC
,
First
Lien,
Term
Loan
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.5
%
),
11/09/27
..................
United
States
548,398
551,368
Truck
Hero,
Inc.
,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
1/31/28
.....................................
United
States
713,720
714,748
3,891,916
a
a
a
a
a
a
Automobiles
0.6%
American
Trailer
World
Corp.
,
First
Lien,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
3/03/28
..................
United
States
871,320
871,185
Thor
Industries,
Inc.
,
Term
Loan,
B1
,
3.125
%
,
(
1-month
USD
LIBOR
+
3
%
),
2/01/26
......................................
United
States
700,000
701,750
1,572,935
a
a
a
a
a
a
Banks
0.4%
Finastra
Ltd.
,
First
Lien,
Dollar
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
6/13/24
...............................
United
Kingdom
1,092,069
1,076,681
Beverages
0.5%
City
Brewing
Company
LLC
,
First
Lien,
Closing
Date
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
4/05/28
..............
United
States
476,190
479,167
Triton
Water
Holdings,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
3/31/28
...................
United
States
790,825
790,936
1,270,103
a
a
a
a
a
a
Capital
Markets
1.9%
Citadel
Securities
LP
,
Term
Loan
,
2.604
%
,
(
1-month
USD
LIBOR
+
2.5
%
),
2/02/28
......................................
United
States
299,250
296,539
Deerfield
Dakota
Holding
LLC
,
First
Lien,
Initial
Dollar
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
4/09/27
.............
United
States
1,023,673
1,029,887
i
Edelman
Financial
Engines
Center
LLC
(The)
,
First
Lien,
2021
Initial
Term
Loan,
B
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
4/07/28
..
United
States
998,571
1,000,928
Jane
Street
Group
LLC
,
Term
Loan
,
2.854
%
,
(
1-month
USD
LIBOR
+
2.75
%
),
1/26/28
.....................................
United
States
548,619
546,756
Russell
Investments
US
Institutional
Holdco,
Inc.
,
2025
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
5/30/25
..............
United
States
1,000,000
995,785
Vertical
Midco
GmbH
,
USD
Term
Loan,
4.478%,
(6-month
USD
LIBOR
+
4.25%),
6/30/27
Germany
1,227,268
1,230,594
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Capital
Markets
(continued)
Vertical
Midco
GmbH,
(continued)
m
USD
Term
Loan,
TBD,
7/29/27
..........................
Germany
90,909
$
91,162
5,191,651
a
a
a
a
a
a
Chemicals
2.1%
Cyanco
Intermediate
2
Corp.
,
First
Lien,
Initial
Term
Loan
,
3.604
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
3/16/25
...................
United
States
193,510
191,817
INEOS
226
Ltd.
,
USD
Term
Loan,
B
,
3.25
%
,
(
1-month
USD
LIBOR
+
2.75
%
),
1/29/26
.....................................
United
Kingdom
936,666
935,495
Lummus
Technology
Holdings
V
LLC
,
2021
Refinancing
Term
Loan,
B
,
3.593
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
6/30/27
..........
United
States
982,545
977,981
NIC
Acquisition
Corp.
,
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
12/29/27
....................................
United
States
789,716
789,349
Nouryon
Finance
BV
,
Initial
Dollar
Term
Loan
,
3.133
%
,
(
1-month
USD
LIBOR
+
2.75%;
3-month
USD
LIBOR
+
1.75%
),
10/01/25
.
Netherlands
957,233
951,451
SCIH
Salt
Holdings,
Inc.
,
First
Lien,
Incremental
Term
Loan,
B1
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
3/16/27
...............
United
States
1,475,613
1,480,379
i,m
Sparta
U.S.
Holdco
LLC
,
Term
Loan
,
TBD,
4/28/28
............
United
States
656,250
657,891
5,984,363
a
a
a
a
a
a
Commercial
Services
&
Supplies
2.5%
Allied
Universal
Holdco
LLC
,
Initial
U.S.
Dollar
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
5/12/28
..................
United
States
1,378,923
1,384,487
CCI
Buyer,
Inc.
,
Term
Loan
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
12/17/27
..........................................
United
States
314,436
315,306
Legalzoom.com,
Inc.
,
First
Lien,
2018
Term
Loan
,
4.593
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
11/21/24
..........................
United
States
1,950,000
1,950,605
i
Madison
IAQ
LLC
,
Term
Loan
,
3.75
%
,
(
3-month
USD
LIBOR
+
3.25
%
),
6/21/28
.....................................
United
States
714,286
715,514
Spin
Holdco,
Inc.
,
Initial
Term
Loan
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
3/04/28
.......................................
United
States
1,296,750
1,300,400
Staples,
Inc.
,
2019
Refinancing
New
Term
Loan,
B1
,
5.176
%
,
(
3-month
USD
LIBOR
+
5
%
),
4/16/26
.....................
United
States
1,262,525
1,232,546
6,898,858
a
a
a
a
a
a
Communications
Equipment
0.3%
CommScope,
Inc.
,
Initial
Term
Loan
,
3.354
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
4/06/26
...................................
United
States
725,531
723,394
Construction
&
Engineering
0.2%
USIC
Holdings,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
5/12/28
...........................
United
States
675,862
675,440
Construction
Materials
0.1%
White
Cap
Buyer
LLC
,
Initial
Closing
Date
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
4
%
),
10/19/27
....................
United
States
398,000
399,198
Containers
&
Packaging
1.0%
BWay
Holding
Co.
,
Initial
Term
Loan
,
3.354
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
4/03/24
...................................
United
States
987,147
965,168
i
Charter
Next
Generation,
Inc.
,
First
Lien,
2021
Initial
Term
Loan,
4.5%,
(1-month
USD
LIBOR
+
3.75%),
12/01/27
....................................
United
States
211,732
212,493
First
Lien,
Retired
Initial
Term
Loan,
5%,
(1-month
USD
LIBOR
+
4.25%),
12/01/27
....................................
United
States
99,338
99,695
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Containers
&
Packaging
(continued)
Kleopatra
Finco
SARL
,
USD
Term
Loan,
B
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.75
%
),
2/12/26
..............................
Luxembourg
1,635,067
$
1,647,330
2,924,686
a
a
a
a
a
a
Diversified
Consumer
Services
0.7%
KUEHG
Corp.
,
Term
Loan,
B3
,
4.75
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
2/21/25
.....................................
United
States
298,462
294,467
Sedgwick
Claims
Management
Services,
Inc.
(Lightning
Cayman
Merger
Sub
Ltd.)
,
Initial
Term
Loan
,
3.354
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
12/31/25
..................................
United
States
991,868
982,445
WeddingWire,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.686
%
,
(
3-month
USD
LIBOR
+
4.5
%
),
12/19/25
..........................
United
States
397,959
398,210
WW
International,
Inc.
,
Initial
Term
Loan
,
4
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
4/13/28
....................................
United
States
256,410
257,478
1,932,600
a
a
a
a
a
a
Diversified
Financial
Services
1.3%
i,m
AqGen
Ascensus,
Inc.
,
Term
Loan
,
TBD,
5/19/28
..............
United
States
843,882
843,489
Jefferies
Finance
LLC
,
Closing
Date
Term
Loan
,
3.125
%
,
(
1-month
USD
LIBOR
+
3
%
),
6/03/26
............................
United
States
992,478
989,690
Sabre
GLBL,
Inc.
,
2020
Other
Term
Loan,
B
,
4.75
%
,
(
1-month
USD
LIBOR
+
4
%
),
12/17/27
...............................
United
States
144,102
145,242
Verscend
Holding
Corp.
,
Term
Loan,
B1
,
4.104
%
,
(
1-month
USD
LIBOR
+
4
%
),
8/27/25
................................
United
States
1,612,551
1,618,888
3,597,309
a
a
a
a
a
a
Diversified
Telecommunication
Services
0.9%
Altice
France
SA
,
USD
Incremental
Term
Loan,
B13
,
4.155
%
,
(
3-month
USD
LIBOR
+
4
%
),
8/14/26
.....................
France
494,277
494,250
Global
Tel
Link
,
First
Lien,
Term
Loan
,
4.354
%
,
(
1-month
USD
LIBOR
+
4.25
%
),
11/29/25
.............................
United
States
1,935,886
1,787,365
West
Corp.
,
Initial
Term
Loan,
B
,
5
%
,
(
3-month
USD
LIBOR
+
4
%
),
10/10/24
..........................................
United
States
231,365
226,775
2,508,390
a
a
a
a
a
a
Electric
Utilities
0.2%
Astoria
Energy
LLC
,
Advance
(2020)
Term
Loan,
B
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
12/10/27
..........................
United
States
567,150
567,504
Electronic
Equipment,
Instruments
&
Components
0.1%
Verifone
Systems,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.147
%
,
(
3-month
USD
LIBOR
+
4
%
),
8/20/25
.....................
United
States
397,959
391,825
Entertainment
0.7%
Diamond
Sports
Group
LLC
,
Term
Loan
,
3.36
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
8/24/26
..............................
United
States
910,229
555,244
Lions
Gate
Capital
Holdings
LLC
,
2023
Term
Loan,
A
,
1.854
%
,
(
1-month
USD
LIBOR
+
1.75
%
),
3/22/23
..................
United
States
1,123,205
1,113,377
William
Morris
Endeavor
Entertainment
LLC
(IMG
Worldwide
Holdings
LLC)
,
First
Lien,
Term
Loan,
B1
,
2.86
%
,
(
1-month
USD
LIBOR
+
2.75
%
),
5/18/25
..............................
United
States
396,799
390,476
2,059,097
a
a
a
a
a
a
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Food
&
Staples
Retailing
0.1%
GNC
Holdings,
Inc.
,
Second
Lien,
Term
Loan
,
6.2
%
,
(
3-month
USD
LIBOR
+
6
%
),
10/07/26
...............................
United
States
107,750
$
97,514
Shearer's
Foods
LLC
,
First
Lien,
Refinancing
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
9/23/27
...................
United
States
167,028
167,375
264,889
a
a
a
a
a
a
Health
Care
Equipment
&
Supplies
0.3%
Jazz
Pharmaceuticals,
Inc.
,
Term
Loan
,
4
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
5/05/28
......................................
United
States
714,286
717,354
Health
Care
Providers
&
Services
4.1%
ADMI
Corp.
,
Amendment
No.
4
Refinancing
Term
Loan,
3.25%,
(1-month
USD
LIBOR
+
2.75%),
12/23/27
.............................
United
States
1,779,124
1,761,706
i,m
Term
Loan,
B3,
TBD,
12/23/27
..........................
United
States
209,332
209,333
m
Aveanna
Healthcare
LLC
,
Term
Loan,
B
,
TBD,
6/01/28
.........
United
States
710,646
707,093
CNT
Holdings
I
Corp.
,
First
Lien,
Facility
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
11/08/27
.........................
United
States
149,881
150,127
eResearchTechnology,
Inc.
,
First
Lien,
Initial
Term
Loan
,
5.5
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
2/04/27
...................
United
States
564,248
567,512
Global
Medical
Response,
Inc.
,
2018
New
Term
Loan
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
3/14/25
..................
United
States
613,857
616,267
Heartland
Dental
LLC
,
2021
Incremental
Term
Loan
,
4.073
%
,
(
1-month
USD
LIBOR
+
4
%
),
4/30/25
.....................
United
States
409,091
408,899
i,m
ICON
Luxembourg
SARL
,
Term
Loan,
B
,
TBD,
6/16/28
.........
Luxembourg
608,696
610,360
National
Mentor
Holdings,
Inc.
,
First
Lien,
Initial
Term
Loan,
4.5%,
(1-month
USD
LIBOR
+
3.75%;
3-month
USD
LIBOR
+
3.75%),
3/02/28
...................
United
States
1,524,620
1,528,957
First
Lien,
Initial
Term
Loan,
C,
4.5%,
(3-month
USD
LIBOR
+
3.75%),
3/02/28
.....................................
United
States
48,018
48,155
Navicure,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.104
%
,
(
1-month
USD
LIBOR
+
4
%
),
10/22/26
...............................
United
States
1,287,720
1,291,744
Pathway
Vet
Alliance
LLC
,
First
Lien,
2021
Replacement
Term
Loan
,
3.854
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
3/31/27
............
United
States
1,238,425
1,237,131
Phoenix
Guarantor,
Inc.
,
First
Lien,
Term
Loan,
3.573%,
(1-month
USD
LIBOR
+
3.5%),
3/05/26
...........................................
United
States
829,751
825,888
First
Lien,
Term
Loan,
B1,
3.341%,
(1-month
USD
LIBOR
+
3.25%),
3/05/26
.....................................
United
States
1,083,747
1,076,410
i
U.S.
Renal
Care,
Inc.
,
Initial
Term
Loan
,
5.125
%
,
(
1-month
USD
LIBOR
+
5
%
),
6/26/26
................................
United
States
598,477
601,595
11,641,177
a
a
a
a
a
a
Hotels,
Restaurants
&
Leisure
1.0%
d
24
Hour
Fitness
Worldwide,
Inc.
,
Exit
Term
Loan
,
5.146
%
,
PIK,
(
3-month
USD
LIBOR
+
5
%
),
12/29/25
....................
United
States
1,142,505
1,012,459
Caesars
Resort
Collection
LLC
,
Term
Loan,
B1
,
4.604
%
,
(
1-month
USD
LIBOR
+
4.5
%
),
7/21/25
...........................
United
States
214,281
215,218
Golden
Nugget,
Inc.
,
Initial
Term
Loan,
B
,
3.25
%
,
(
2-month
USD
LIBOR
+
2.5
%
),
10/04/23
..............................
United
States
386,993
384,611
i,m
Hilton
Grand
Vacations
Borrower
LLC
,
Term
Loan
,
TBD,
5/19/28
..
United
States
277,778
278,256
IRB
Holding
Corp.
,
Fourth
Amendment
Incremental
Term
Loan
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.25%;
3-month
USD
LIBOR
+
3.25%
),
12/15/27
....................................
United
States
356,269
356,687
i,m
Raptor
Acquisition
Corp.
,
Term
Loan,
B
,
TBD,
11/01/26
.........
United
States
550,847
552,453
2,799,684
a
a
a
a
a
a
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Household
Durables
0.3%
i,m
AI
Aqua
Merger
Sub,
Inc.
,
Term
Loan,
B
,
TBD,
6/16/28
.........
United
States
952,381
$
955,952
Household
Products
0.2%
m
Illuminate
Merger
Sub
Corp.
,
Covenant-Lite
Term
Loan
,
TBD,
6/30/28
...........................................
United
States
437,956
438,777
Insurance
2.0%
Acrisure
LLC
,
First
Lien,
2020
Term
Loan
,
3.604
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
2/15/27
...............................
United
States
793,970
786,610
Alliant
Holdings
Intermediate
LLC
,
2018
Initial
Term
Loan,
3.354%,
(1-month
USD
LIBOR
+
3.25%),
5/09/25
...........................................
United
States
1,014,315
1,004,750
i
Term
Loan,
4.25%,
(1-month
USD
LIBOR
+
3.75%),
11/05/27
...
United
States
150,525
150,974
AssuredPartners,
Inc.
,
2020
February
Refinancing
Term
Loan,
3.604%,
(1-month
USD
LIBOR
+
3.5%),
2/12/27
...............................
United
States
1,385,936
1,380,455
i
2020
June
Incremental
Term
Loan,
5.5%,
(1-month
USD
LIBOR
+
4.5%),
2/12/27
......................................
United
States
164,067
164,620
2021
Term
Loan,
4%,
(1-month
USD
LIBOR
+
3.5%),
2/12/27
...
United
States
82,691
82,970
Asurion
LLC
,
New
Term
Loan,
B8,
3.354%,
(1-month
USD
LIBOR
+
3.25%),
12/23/26
..........................................
United
States
1,757,503
1,739,656
New
Term
Loan,
B9,
3.354%,
(1-month
USD
LIBOR
+
3.25%),
7/31/27
...........................................
United
States
356,657
353,015
Second
Lien,
New
Term
Loan,
B3,
5.354%,
(1-month
USD
LIBOR
+
5.25%),
1/31/28
...................................
United
States
32,665
32,971
5,696,021
a
a
a
a
a
a
Internet
&
Direct
Marketing
Retail
0.6%
MH
Sub
I
LLC
(Micro
Holding
Corp.)
,
First
Lien,
2020
June
New
Term
Loan,
4.75%,
(1-month
USD
LIBOR
+
3.75%),
9/13/24
..............................
United
States
658,133
660,397
First
Lien,
Amendment
No.
2
Initial
Term
Loan,
3.604%,
(1-month
USD
LIBOR
+
3.5%),
9/13/24
...........................
United
States
1,090,730
1,087,474
1,747,871
a
a
a
a
a
a
IT
Services
3.5%
Arches
Buyer,
Inc.
,
Refinancing
Term
Loan
,
3.75
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
12/06/27
.............................
United
States
696,500
695,678
Aventiv
Technologies
LLC
,
First
Lien,
Initial
Term
Loan
,
5.5
%
,
(
3-month
USD
LIBOR
+
4.5
%
),
11/01/24
..................
United
States
1,951,963
1,837,744
Barracuda
Networks,
Inc.
,
First
Lien,
2020
Term
Loan
,
3.896
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
2/12/25
..................
United
States
1,101,267
1,105,738
Milano
Acquisition
Corp.
,
Term
Loan,
B
,
4.75
%
,
(
3-month
USD
LIBOR
+
4
%
),
10/01/27
...............................
United
States
1,765,390
1,774,217
Neustar,
Inc.
,
First
Lien,
Term
Loan,
B5
,
5.5
%
,
(
3-month
USD
LIBOR
+
4.5
%
),
8/08/24
....................................
United
States
687,290
674,190
Peraton
Corp.
,
First
Lien,
Term
Loan,
B
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
2/01/28
...................................
United
States
1,421,361
1,427,970
Pitney
Bowes,
Inc.
,
Refinancing
Term
Loan,
B
,
4.11
%
,
(
1-month
USD
LIBOR
+
4
%
),
3/17/28
................................
United
States
1,795,500
1,797,188
TIBCO
Software,
Inc.
,
Term
Loan,
B3
,
3.86
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
6/30/26
...................................
United
States
460,593
460,017
9,772,742
a
a
a
a
a
a
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Leisure
Products
0.2%
Hercules
Achievement,
Inc.
(Varsity
Brands
Holding
Co.,
Inc.)
,
First
Lien,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
12/16/24
..........................................
United
States
496,574
$
486,280
Machinery
1.0%
Navistar,
Inc.
,
Term
Loan,
B
,
3.6
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
11/06/24
..........................................
United
States
2,355,166
2,359,876
Tiger
Acquisition
LLC
,
First
Lien,
Initial
Term
Loan
,
3.75
%
,
(
3-month
USD
LIBOR
+
3.25
%
),
6/01/28
..........................
United
States
544,218
543,709
2,903,585
a
a
a
a
a
a
Media
2.3%
Cengage
Learning,
Inc.
,
2016
Refinancing
Term
Loan,
5.25%,
(1-month
USD
LIBOR
+
4.25%;
3-month
USD
LIBOR
+
4.25%),
6/07/23
.............
United
States
993,206
996,047
i,m
Term
Loan,
B,
TBD,
6/01/28
............................
United
States
995,820
998,314
Clear
Channel
Outdoor
Holdings,
Inc.
,
Term
Loan,
B
,
3.686
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
8/21/26
...................
United
States
595,458
582,061
CSC
Holdings
LLC
,
March
2017
Refinancing
Term
Loan
,
2.323
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
7/17/25
..................
United
States
1,401,426
1,385,484
Radiate
HoldCo
LLC
,
Term
Loan,
B
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
9/25/26
......................................
United
States
271,828
272,418
Sinclair
Television
Group,
Inc.
,
Term
Loan,
B
,
2.36
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
1/03/24
..............................
United
States
383,106
380,233
Univision
Communications,
Inc.
,
First
Lien,
2020
Replacement
Term
Loan,
4.75%,
(1-month
USD
LIBOR
+
3.75%),
3/15/26
..............................
United
States
983,134
986,511
i,m
Term
Loan,
B,
TBD,
5/05/28
............................
United
States
342,391
341,679
Virgin
Media
Bristol
LLC
,
Term
Loan,
Q
,
3.353
%
,
(
2-month
USD
LIBOR
+
3.25
%
),
1/31/29
..............................
United
States
262,949
263,077
WideOpenWest
Finance
LLC
,
Eighth
Amendment
Term
Loan,
B
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
8/18/23
.............
United
States
313,084
313,149
6,518,973
a
a
a
a
a
a
Metals
&
Mining
0.2%
U.S.
Silica
Co.
,
Term
Loan
,
5
%
,
(
1-month
USD
LIBOR
+
4
%
),
5/01/25
...........................................
United
States
595,487
570,926
Multiline
Retail
0.5%
Franchise
Group,
Inc.
,
First
Lien,
Initial
Term
Loan
,
5.5
%
,
(
3-month
USD
LIBOR
+
4.75
%
),
3/10/26
..........................
United
States
369,743
372,286
Harbor
Freight
Tools
USA,
Inc.
,
Initial
Term
Loan
(2020)
,
3.75
%
,
(
1-month
USD
LIBOR
+
3
%
),
10/19/27
....................
United
States
1,100,430
1,102,020
1,474,306
a
a
a
a
a
a
Personal
Products
0.6%
Conair
Holdings
LLC
,
First
Lien,
Initial
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
5/17/28
..........................
United
States
272,491
273,411
Coty,
Inc.
,
USD
Term
Loan,
B
,
2.331
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
4/07/25
.....................................
United
States
495,911
478,502
Sunshine
Luxembourg
VII
SARL
,
Term
Loan,
B3
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
10/01/26
.........................
Luxembourg
851,287
855,488
1,607,401
a
a
a
a
a
a
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
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
k,l
Senior
Floating
Rate
Interests
(continued)
Pharmaceuticals
0.5%
Bausch
Health
Cos.,
Inc.
,
Initial
Term
Loan
,
3.093
%
,
(
1-month
USD
LIBOR
+
3
%
),
6/02/25
................................
United
States
664,692
$
662,575
i
Organon
&
Co.
,
Term
Loan
,
3.5
%
,
(
6-month
USD
LIBOR
+
3
%
),
6/02/28
...........................................
United
States
797,297
799,127
1,461,702
a
a
a
a
a
a
Professional
Services
0.3%
CCRR
Parent,
Inc.
,
First
Lien,
Initial
Term
Loan
,
5
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
3/06/28
..............................
United
States
162,914
164,086
UKG,
Inc.
,
First
Lien,
2021
Incremental
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3.25
%
),
5/04/26
..........................
United
States
540,982
542,310
706,396
a
a
a
a
a
a
Road
&
Rail
1.1%
Avis
Budget
Car
Rental
LLC
,
New
Term
Loan,
B
,
2.36
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
8/06/27
..........................
United
States
1,758,079
1,729,510
Ventia
Midco
Pty.
Ltd.
,
2017
Refinancing
USD
Term
Loan,
B
,
5
%
,
(
3-month
USD
LIBOR
+
4
%
),
5/21/26
.....................
Australia
1,435,450
1,440,833
3,170,343
a
a
a
a
a
a
Software
7.6%
athenahealth,
Inc.
,
First
Lien,
Term
Loan,
B1
,
4.41
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
2/11/26
..............................
United
States
1,667,978
1,674,758
Atlas
Purchaser,
Inc.
,
First
Lien,
Initial
Term
Loan
,
6
%
,
(
3-month
USD
LIBOR
+
5.25
%
),
5/08/28
..........................
United
States
636,364
627,480
Blackboard,
Inc.
,
First
Lien,
Term
Loan,
B5
,
7
%
,
(
3-month
USD
LIBOR
+
6
%
),
6/30/24
................................
United
States
496,715
499,260
DCert
Buyer,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.104
%
,
(
1-month
USD
LIBOR
+
4
%
),
10/16/26
...........................
United
States
1,747,406
1,751,775
Epicor
Software
Corp.
,
Term
Loan,
C
,
4
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
7/30/27
.....................................
United
States
668,994
669,057
Greeneden
U.S.
Holdings
I
LLC
,
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
4
%
),
12/01/27
...............................
United
States
779,382
782,168
Hyland
Software,
Inc.
,
First
Lien,
2018
Refinancing
Term
Loan
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
7/01/24
..............
United
States
1,070,611
1,073,844
Idera,
Inc.
,
First
Lien,
Term
Loan,
B1
,
4.5
%
,
(
2-month
USD
LIBOR
+
3.75
%
),
3/02/28
.....................................
United
States
1,596,420
1,599,581
IGT
Holding
IV
AB
,
Facility
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
3/31/28
...................................
Sweden
731,500
735,158
Ivanti
Software,
Inc.
,
First
Lien,
First
Amendment
Term
Loan,
B,
4.75%,
(3-month
USD
LIBOR
+
4%),
12/01/27
...............................
United
States
58,777
58,606
First
Lien,
Initial
Term
Loan,
5.75%,
(3-month
USD
LIBOR
+
4.75%),
12/01/27
....................................
United
States
798,000
800,382
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
k,l
Senior
Floating
Rate
Interests
(continued)
Software
(continued)
LogMeIn,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.827
%
,
(
1-month
USD
LIBOR
+
4.75
%
),
8/31/27
..............................
United
States
1,649,716
$
1,649,073
MA
Financeco
LLC
,
Term
Loan,
B4
,
5.25
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
6/05/25
.....................................
United
States
568,561
576,973
Mitchell
International,
Inc.
,
First
Lien,
Amendment
No.
2
New
Facility
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
4.25
%
),
11/29/24
...
United
States
992,500
998,524
Perforce
Software,
Inc.
,
First
Lien,
New
Term
Loan
,
3.854
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
7/01/26
..................
United
States
1,078,625
1,071,668
Polaris
Newco
LLC
,
First
Lien,
Dollar
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
4
%
),
6/02/28
............................
United
States
2,083,333
2,092,062
Project
Ruby
Ultimate
Parent
Corp.
,
First
Lien,
Closing
Date
Term
Loan
,
4
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
3/10/28
..........
United
States
779,777
778,436
Quest
Software
US
Holdings,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.436
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
5/16/25
............
United
States
1,135,583
1,136,605
RealPage,
Inc.
,
First
Lien,
Initial
Term
Loan
,
3.75
%
,
(
1-month
USD
LIBOR
+
3.25
%
),
4/24/28
..............................
United
States
812,903
811,432
Sophia
LP
,
Term
Loan
,
3.897
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
10/07/27
..........................................
United
States
161,628
161,965
Surf
Holdings
SARL
,
First
Lien,
Dollar
Term
Loan
,
3.628
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
3/05/27
...........................
Luxembourg
486,523
483,939
i
Syncsort,
Inc.
,
Term
Loan,
B
,
5
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
4/24/28
...........................................
United
States
1,267,597
1,268,231
21,300,977
a
a
a
a
a
a
Specialty
Retail
1.8%
Great
Outdoors
Group
LLC
,
Term
Loan,
B1
,
5
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
3/06/28
..............................
United
States
982,350
987,109
Michaels
Companies,
Inc.
(The)
,
Term
Loan,
B
,
5
%
,
(
3-month
USD
LIBOR
+
4.25
%
),
4/15/28
..............................
United
States
920,000
924,968
Park
River
Holdings,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4
%
,
(
3-month
USD
LIBOR
+
3.25
%
),
12/28/27
.........................
United
States
662,365
659,881
PetSmart
LLC
,
Initial
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
2/11/28
.....................................
United
States
518,127
519,163
Rent-A-Center,
Inc.
,
Initial
Term
Loan
,
4.75
%
,
(
1-month
USD
LIBOR
+
4
%
),
2/17/28
......................................
United
States
284,520
285,232
Savers,
Inc.
,
Term
Loan
,
6.5
%
,
(3-month
USD
LIBOR
+
5.75
%
),
4/21/28
...........................................
United
States
473,684
479,212
i
SRS
Distribution,
Inc.
,
2021
Refinancing
Term
Loan
,
4.25
%
,
(
1-month
USD
LIBOR
+
3.75
%
),
6/02/28
..................
United
States
532,450
532,783
Woof
Holdings,
Inc.
,
First
Lien,
Initial
Term
Loan
,
4.5
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
12/21/27
.........................
United
States
533,475
534,366
4,922,714
a
a
a
a
a
a
Technology
Hardware,
Storage
&
Peripherals
0.8%
Amentum
Government
Services
Holdings
LLC
,
First
Lien,
Initial
Term
Loan,
3.604%,
(1-month
USD
LIBOR
+
3.5%),
1/29/27
......................................
United
States
297,000
297,037
Incremental
Term
Loan,
5.5%,
(3-month
USD
LIBOR
+
4.75%),
1/29/27
...........................................
United
States
1,325,528
1,340,440
i,m
Magenta
Buyer
LLC
,
First
Lien,
Term
Loan
,
TBD,
5/03/28
.......
United
States
496,454
496,888
2,134,365
a
a
a
a
a
a
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
k,l
Senior
Floating
Rate
Interests
(continued)
Textiles,
Apparel
&
Luxury
Goods
0.3%
Champ
Acquisition
Corp.
,
First
Lien,
Initial
Term
Loan
,
5.685
%
,
(
3-month
USD
LIBOR
+
5.5
%
),
12/19/25
..................
United
States
470,331
$
473,174
Tory
Burch
LLC
,
Initial
Term
Loan,
B
,
4
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
4/16/28
......................................
United
States
338,710
338,427
811,601
a
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$130,842,910)
.........................
131,814,794
n
Marketplace
Loans
1.8%
Diversified
Financial
Services
1.8%
b
Lending
Club
-
LCX
PM,
9.02%
-
21.99%,
10/19/23
-
2/02/26
.....
United
States
491,763
468,872
b
Lending
Club
-
LCX,
6.46%
-
25.65%,
7/05/22
-
2/12/25
.........
United
States
510,244
422,518
b
Lending
Club,
5%
-
25.34%,
10/31/21
-
3/11/25
...............
United
States
4,324,151
3,944,532
b
Upgrade,
24.29%
-
29.69%,
11/18/22
-
1/03/25
...............
United
States
96,787
96,242
4,932,164
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$5,434,706)
.....................................
4,932,164
Asset-Backed
Securities
11.0%
Capital
Markets
0.0%
o
Merrill
Lynch
Mortgage
Investors
Trust
,
2003-OPT1
,
B2
,
FRN
,
4.217
%
,
(
1-month
USD
LIBOR
+
4.125
%
),
7/25/34
...........
United
States
33,301
18,366
Diversified
Financial
Services
11.0%
f,h,o
Carlyle
Global
Market
Strategies
CLO
Ltd.
,
2014-1A
,
DR
,
144A,
FRN
,
2.79
%
,
(
3-month
USD
LIBOR
+
2.6
%
),
4/17/31
.........
United
States
2,300,000
2,215,647
f,o
Carlyle
US
CLO
Ltd.
,
2017-4A
,
C
,
144A,
FRN
,
2.984
%
,
(
3-month
USD
LIBOR
+
2.8
%
),
1/15/30
...........................
United
States
1,000,000
964,242
f,p
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
b
2018-29,
PT,
144A,
FRN,
23.01%,
12/15/43
................
United
States
136,737
136,402
2019-26,
PT,
144A,
FRN,
17.57%,
8/15/44
.................
United
States
416,850
417,094
2019-31,
PT,
144A,
FRN,
15.33%,
9/15/44
.................
United
States
385,483
382,614
2019-37,
PT,
144A,
FRN,
16.179%,
10/17/44
...............
United
States
408,920
403,588
2019-42,
PT,
144A,
FRN,
15.859%,
11/15/44
...............
United
States
405,447
405,422
2019-51,
PT,
144A,
FRN,
15.528%,
1/15/45
................
United
States
510,808
511,166
2019-52,
PT,
144A,
FRN,
16.061%,
1/15/45
................
United
States
490,457
494,773
2019-S1,
PT,
144A,
FRN,
12.944%,
4/15/44
................
United
States
307,373
302,270
2019-S2,
PT,
144A,
FRN,
13.468%,
5/16/44
................
United
States
219,400
218,871
2019-S3,
PT,
144A,
FRN,
12.57%,
6/15/44
.................
United
States
643,654
641,649
2019-S4,
PT,
144A,
FRN,
9.748%,
8/15/44
.................
United
States
352,416
352,606
2019-S5,
PT,
144A,
FRN,
11.793%,
9/15/44
................
United
States
367,526
367,542
2019-S6,
PT,
144A,
FRN,
10.551%,
10/17/44
...............
United
States
355,713
349,688
2019-S7,
PT,
144A,
FRN,
10.294%,
12/15/44
...............
United
States
309,129
305,484
2019-S8,
PT,
144A,
FRN,
8.792%,
1/15/45
.................
United
States
371,297
365,673
2020-2,
PT,
144A,
FRN,
16.339%,
3/15/45
.................
United
States
484,006
485,845
2020-7,
PT,
144A,
FRN,
15.608%,
4/17/45
.................
United
States
296,969
294,640
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Asset-Backed
Securities
(continued)
Diversified
Financial
Services
(continued)
f,h,o
Dorchester
Park
CLO
DAC
,
2015-1A
,
CR
,
144A,
FRN
,
1.938
%
,
(
3-month
USD
LIBOR
+
1.75
%
),
4/20/28
..................
United
States
1,000,000
$
1,002,046
f,h,o
Dryden
38
Senior
Loan
Fund
,
2015-38A
,
DR
,
144A,
FRN
,
3.184
%
,
(
3-month
USD
LIBOR
+
3
%
),
7/15/30
.....................
United
States
2,500,000
2,501,805
f,h,o
Dryden
42
Senior
Loan
Fund
,
2016-42A
,
CR
,
144A,
FRN
,
2.234
%
,
(
3-month
USD
LIBOR
+
2.05
%
),
7/15/30
..................
United
States
2,400,000
2,406,086
f,h,o
Dryden
58
CLO
Ltd.
,
2018-58A
,
C
,
144A,
FRN
,
1.99
%
,
(
3-month
USD
LIBOR
+
1.8
%
),
7/17/31
...........................
United
States
3,000,000
2,989,702
f,o
Madison
Park
Funding
XXXI
Ltd.
,
2018-31A
,
D
,
144A,
FRN
,
3.173
%
,
(
3-month
USD
LIBOR
+
3
%
),
1/23/31
.....................
United
States
1,250,000
1,256,529
o
Morgan
Stanley
ABS
Capital
I,
Inc.
Trust
,
2003-NC10
,
B1
,
FRN
,
5.042
%
,
(
1-month
USD
LIBOR
+
4.95
%
),
10/25/33
...........
United
States
350,442
377,553
f,h,o
Octagon
Investment
Partners
XXII
Ltd.
,
2014-1A
,
CRR
,
144A,
FRN
,
2.084
%
,
(
3-month
USD
LIBOR
+
1.9
%
),
1/22/30
.............
United
States
6,050,000
6,035,331
f,p
Prosper
Pass-Thru
Trust
III
,
2020-PT1,
A,
144A,
FRN,
8.796%,
3/15/26
.................
United
States
308,655
305,344
2020-PT2,
A,
144A,
FRN,
9.444%,
4/15/26
.................
United
States
338,869
333,085
2020-PT3,
A,
144A,
FRN,
7.183%,
5/15/26
.................
United
States
85,978
86,401
o
Structured
Asset
Investment
Loan
Trust
,
2003-BC2
,
M3
,
FRN
,
4.966
%
,
(
1-month
USD
LIBOR
+
4.875
%
),
4/25/33
...........
United
States
13,987
14,931
f,p
Upgrade
Master
Pass-Thru
Trust
,
2019-PT2
,
A
,
144A,
FRN
,
14.198
%
,
2/15/26
....................................
United
States
289,594
292,416
f,o
Voya
CLO
Ltd.
,
h
2014-1A,
BR2,
144A,
FRN,
2.09%,
(3-month
USD
LIBOR
+
1.9%),
4/18/31
...........................................
United
States
1,300,000
1,286,635
2014-1A,
CR2,
144A,
FRN,
2.99%,
(3-month
USD
LIBOR
+
2.8%),
4/18/31
...........................................
United
States
500,000
483,569
h
2016-3A,
CR,
144A,
FRN,
3.44%,
(3-month
USD
LIBOR
+
3.25%),
10/18/31
..........................................
United
States
2,000,000
1,937,566
30,924,215
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$30,143,035)
...............................
30,942,581
Commercial
Mortgage-Backed
Securities
1.2%
Diversified
Financial
Services
0.1%
p
Commercial
Mortgage
Trust
,
2006-GG7
,
AJ
,
FRN
,
6.214
%
,
7/10/38
United
States
194,980
175,531
Thrifts
&
Mortgage
Finance
1.1%
h
Citigroup
Commercial
Mortgage
Trust
,
2015-GC27
,
A5
,
3.137
%
,
2/10/48
...........................................
United
States
1,520,000
1,622,344
h
JPMBB
Commercial
Mortgage
Securities
Trust
,
2015-C28
,
A4
,
3.227
%
,
10/15/48
....................................
United
States
1,410,000
1,506,886
3,129,230
a
a
a
a
a
a
Total
Commercial
Mortgage-Backed
Securities
(Cost
$3,164,689)
.................
3,304,761
Mortgage-Backed
Securities
18.7%
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
4.0%
g
FHLMC
Gold
Pools,
15
Year,
5%,
12/01/23
..................
United
States
85,531
89,205
g
FHLMC
Gold
Pools,
20
Year,
6.5%,
8/01/27
..................
United
States
112,713
126,364
g
FHLMC
Gold
Pools,
30
Year,
3.5%,
3/01/45
..................
United
States
15,381
16,474
g
FHLMC
Gold
Pools,
30
Year,
3.5%,
12/01/48
.................
United
States
3,122,944
3,297,459
g
FHLMC
Gold
Pools,
30
Year,
4%,
5/01/48
...................
United
States
2,438,555
2,611,342
g
FHLMC
Gold
Pools,
30
Year,
6%,
7/01/28
-
11/01/36
...........
United
States
294,357
345,139
g
FHLMC
Gold
Pools,
30
Year,
6.5%,
3/01/38
..................
United
States
7,184
8,230
g
FHLMC
Gold
Pools,
30
Year,
7%,
9/01/27
...................
United
States
36,669
39,943
g
FHLMC
Gold
Pools,
30
Year,
8.5%,
7/01/31
..................
United
States
118,715
136,299
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
(continued)
FHLMC
Pool,
15
Year,
2.5%,
9/01/35
.......................
United
States
4,335,083
$
4,530,520
11,200,975
q
Federal
National
Mortgage
Association
(FNMA)
Adjustable
Rate
0.1%
g
FNMA,
1.665%
-
1.85%,
(6-month
USD
LIBOR
+/-
MBS
Margin),
6/01/32
-
7/01/34
....................................
United
States
139,464
139,757
139,757
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
12.7%
g
FNMA,
3.5%,
7/01/56
..................................
United
States
544,779
592,793
FNMA,
15
Year,
2%,
9/01/35
.............................
United
States
1,285,589
1,327,477
g
FNMA,
15
Year,
3%,
8/01/27
.............................
United
States
4,931
5,205
g
FNMA,
15
Year,
3.5%,
1/01/26
...........................
United
States
8,809
9,417
g
FNMA,
20
Year,
4.5%,
5/01/24
-
9/01/29
....................
United
States
24,936
26,819
g
FNMA,
30
Year,
2.5%,
9/01/50
...........................
United
States
5,760,526
5,965,488
g
FNMA,
30
Year,
3%,
10/01/50
............................
United
States
4,585,339
4,782,574
g
FNMA,
30
Year,
3.5%,
1/01/45
-
6/01/45
....................
United
States
602,047
647,306
g
FNMA,
30
Year,
4%,
11/01/44
-
1/01/48
.....................
United
States
1,040,950
1,123,911
g
FNMA,
30
Year,
4%,
10/01/47
............................
United
States
3,390,372
3,641,926
g
FNMA,
30
Year,
4.5%,
3/01/44
...........................
United
States
1,558
1,713
g
FNMA,
30
Year,
5%,
5/01/38
-
7/01/39
......................
United
States
214,017
245,216
g
FNMA,
30
Year,
5.5%,
6/01/37
...........................
United
States
161,003
187,210
g
FNMA,
30
Year,
6%,
4/01/33
-
6/01/38
......................
United
States
397,490
471,385
g
FNMA,
30
Year,
6.5%,
8/01/32
...........................
United
States
70,169
82,052
g
FNMA,
30
Year,
8%,
10/01/29
............................
United
States
822
825
r
FNMA,
Single-family,
15
Year,
2%,
7/25/36
..................
United
States
4,653,000
4,799,588
r
FNMA,
Single-family,
30
Year,
2%,
7/25/51
..................
United
States
3,931,000
3,969,389
r
FNMA,
Single-family,
30
Year,
2.5%,
7/25/51
.................
United
States
7,700,000
7,964,687
35,844,981
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
1.9%
g
GNMA
I,
Single-family,
30
Year,
6.5%,
6/15/31
-
12/15/33
........
United
States
233,052
260,519
r
GNMA
II,
Single-family,
30
Year,
2%,
7/15/51
.................
United
States
1,554,000
1,582,773
r
GNMA
II,
Single-family,
30
Year,
2.5%,
7/15/51
...............
United
States
1,539,000
1,592,745
g
GNMA
II,
Single-family,
30
Year,
3.5%,
12/20/49
..............
United
States
1,675,352
1,757,438
g
GNMA
II,
Single-family,
30
Year,
7%,
1/20/24
-
1/20/29
.........
United
States
16,347
18,239
g
GNMA
II,
Single-family,
30
Year,
8%,
1/20/28
-
10/20/31
........
United
States
59,174
69,805
5,281,519
Total
Mortgage-Backed
Securities
(Cost
$51,971,677)
............................
52,467,232
Residential
Mortgage-Backed
Securities
1.2%
Capital
Markets
0.0%
o
Merrill
Lynch
Mortgage
Investors
Trust
,
2005-A6
,
2A3
,
FRN
,
0.852
%
,
(
1-month
USD
LIBOR
+
0.76
%
),
8/25/35
..................
United
States
650
651
Thrifts
&
Mortgage
Finance
1.2%
h,o
FNMA
Connecticut
Avenue
Securities
,
2017-C03,
1M2,
FRN,
3.092%,
(1-month
USD
LIBOR
+
3%),
10/25/29
..........................................
United
States
1,872,742
1,932,906
2017-C05,
1M2,
FRN,
2.292%,
(1-month
USD
LIBOR
+
2.2%),
1/25/30
...........................................
United
States
1,429,516
1,453,805
3,386,711
a
a
a
a
a
a
Total
Residential
Mortgage-Backed
Securities
(Cost
$3,398,593)
..................
3,387,362
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
See
Abbreviations
on
page
47
.
a
a
Country
Shares/Units
a
Value
a
a
a
a
a
a
Escrows
and
Litigation
Trusts
0.0%
a,b
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.................
United
States
3,700
$
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
Total
Long
Term
Investments
(Cost
$409,643,586)
...............................
413,878,285
a
Short
Term
Investments
4.0%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
4.0%
s,t
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
11,331,924
11,331,924
Total
Money
Market
Funds
(Cost
$11,331,924)
..................................
11,331,924
Total
Short
Term
Investments
(Cost
$11,331,924
)
................................
11,331,924
a
Total
Investments
(Cost
$420,975,510)
151.5%
..................................
$425,210,209
Reverse
Repurchase
Agreements
(13.0)%
......................................
(36,420,917)
u
Credit
Facility
(29.6)%
........................................................
(83,000,000)
Other
Assets,
less
Liabilities
(8.9)%
...........................................
(25,157,085)
Net
Assets
100.0%
...........................................................
$280,632,207
Amount
Borrowed
Payable
v
Reverse
Repurchase
Agreements
(13.0)%
Counterparty
UBS
AG,
0.48%,
9/03/21
.....................
$
1,357,830
$
(1,358,319)
Counterparty
UBS
AG,
0.48%,
9/03/21
.....................
1,467,180
(1,467,708)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,417,500
(1,418,138)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,005,000
(1,005,452)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,273,125
(1,273,698)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,068,000
(1,068,481)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,353,750
(1,354,359)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,071,250
(1,071,732)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,012,000
(1,012,455)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,317,750
(1,318,343)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,122,875
(1,123,380)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
1,005,000
(1,005,452)
Counterparty
UBS
AG,
0.6%,
9/03/21
......................
617,750
(618,028)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
4,840,000
(4,843,196)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
847,875
(848,435)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
1,433,661
(1,434,607)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
2,033,880
(2,035,222)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
866,810
(867,382)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
2,400,000
(2,401,584)
Counterparty
UBS
AG,
0.88%,
9/03/21
.....................
1,102,238
(1,102,965)
Counterparty
UBS
AG,
1.23%,
9/03/21
.....................
1,784,800
(1,786,446)
Counterparty
UBS
AG,
1.23%,
9/03/21
.....................
2,400,000
(2,402,214)
Counterparty
UBS
AG,
1.23%,
9/03/21
.....................
1,600,000
(1,601,476)
Counterparty
UBS
AG,
1.23%,
9/03/21
.....................
2,000,000
(2,001,845)
Total
Reverse
Repurchase
Agreements
(Proceeds
$36,398,274)
...................
$(36,420,917)
Franklin
Limited
Duration
Income
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
*
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
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
c
See
Note
11
regarding
restricted
securities.
d
Income
may
be
received
in
additional
securities
and/or
cash.
e
Perpetual
security
with
no
stated
maturity
date.
f
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2021,
the
aggregate
value
of
these
securities
was
$182,131,344,
representing
64.9%
of
net
assets.
g
A
portion
or
all
of
the
security
is
pledged
as
collateral
in
connection
with
the
Fund’s
revolving
credit
facility.
h
A
portion
or
all
of
the
security
is
designated
as
collateral
for
reverse
repurchase
agreements.
i
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
j
See
Note
9
regarding
credit
risk
and
defaulted
securities.
k
The
coupon
rate
shown
represents
the
rate
at
period
end.
l
See
Note
1(e)
regarding
senior
floating
rate
interests.
m
A
portion
or
all
of
the
security
represents
an
unsettled
loan
commitment.
The
coupon
rate
is
to-be
determined
(TBD)
at
the
time
of
the
settlement
and
will
be
based
upon
a
reference
index/floor
plus
a
spread.
n
See
Note
1(f)
regarding
Marketplace
Lending.
o
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
p
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.  The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
q
Adjustable
Rate
Mortgage-Backed
Security
(ARM);
the
rate
shown
is
the
effective
rate
at
period
end.
ARM
rates
are
not
based
on
a
published
reference
rate
and
spread,
but
instead
pass-through
weighted
average
interest
income
inclusive
of
any
caps
or
floors,
if
applicable,
from
the
underlying
mortgage
loans
in
which
the
majority
of
mortgages
pay
interest
based
on
the
index
shown
at
their
designated
reset
dates
plus
a
spread,
less
the
applicable
servicing
and
guaranty
fee
(MBS
margin).
r
Security
purchased
on
a
to-be-announced
(TBA)
basis.
See
Note
1(c).
s
See
Note
5(c)
regarding
investments
in
affiliated
management
investment
companies.
t
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
u
See
Note
3
regarding
Credit
Facility.
v
See
Note
4
regarding
reverse
repurchase
agreements.
Franklin
Limited
Duration
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
June
30,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Franklin
Limited
Duration
Income
Trust
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$409,643,586
Cost
-
Non-controlled
affiliates
(Note
5c)
........................................................
11,331,924
Value
-
Unaffiliated
issuers
..................................................................
$413,878,285
Value
-
Non-controlled
affiliates
(Note
5c)
.......................................................
11,331,924
Cash
....................................................................................
1,108,190
Receivables:
Investment
securities
sold
...................................................................
6,710,424
Interest
.................................................................................
3,293,166
Unrealized
appreciation
on
unfunded
loan
commitments
(Note
12)
......................................
3,474
Total
assets
..........................................................................
436,325,463
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
33,219,354
Credit
facility
(Note
3)
......................................................................
83,000,000
Management
fees
.........................................................................
241,653
Transfer
agent
fees
........................................................................
34,254
Trustees'
fees
and
expenses
.................................................................
5,553
Distributions
to
shareholders
.................................................................
2,350,829
Accrued
interest
(Note
3)
...................................................................
14
8,955
Reverse
repurchase
agreements
.............................................................
36,420,917
Deposits
from
brokers
for:
Reverse
repurchase
agreements
............................................................
150,000
Accrued
expenses
and
other
liabilities
...........................................................
121,741
Total
liabilities
.........................................................................
155,693,256
Net
assets
applicable
to
common
shares
.................................................
$280,632,207
Net
assets
applicable
to
common
shares
consist
of:
Paid-in
capital
.............................................................................
$317,793,867
Total
distributable
earnings
(losses)
.............................................................
(37,161,660)
Net
assets
applicable
to
common
shares
.................................................
$280,632,207
Common
shares
outstanding
..................................................................
30,138,835
Net
asset
value
per
common
share
.............................................................
$9.31
Franklin
Limited
Duration
Income
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
June
30,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
Franklin
Limited
Duration
Income
Trust
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$37,057
Non-controlled
affiliates
(Note
5c)
.............................................................
366
Interest:
Unaffiliated
issuers
........................................................................
10,123,569
Total
investment
income
...................................................................
10,160,992
Expenses:
Management
fees
(Note
5a)
...................................................................
1,456,860
Interest
expense
(Note
3
and
4)
................................................................
622,528
Transfer
agent
fees
.........................................................................
17,439
Custodian
fees
(Note
6)
......................................................................
2,080
Reports
to
shareholders
......................................................................
17,196
Registration
and
filing
fees
....................................................................
11,354
Professional
fees
...........................................................................
78,289
Trustees'
fees
and
expenses
..................................................................
8,114
Marketplace
lending
fees
(Note
1f)
..............................................................
147,075
Other
....................................................................................
12,884
Total
expenses
.........................................................................
2,373,819
Expense
reductions
(Note
6)
...............................................................
(115)
Expenses
waived/paid
by
affiliates
(Note
5c)
...................................................
(4,770)
Net
expen
ses
.........................................................................
2,368,934
Net
investment
income
................................................................
7,792,058
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(1,107,649)
Foreign
currency
transactions
................................................................
(288)
Net
realized
gain
(loss)
..................................................................
(1,107,937)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
3,950,381
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(174)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
3,950,207
Net
realized
and
unrealized
gain
(loss)
............................................................
2,842,270
Net
increase
(decrease)
in
net
assets
applicable
to
common
shares
resulting
from
operations
...................
$10,634,328
Franklin
Limited
Duration
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
33
Franklin
Limited
Duration
Income
Trust
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$7,792,058
$15,409,319
Net
realized
gain
(loss)
.................................................
(1,107,937)
(11,392,358)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
3,950,207
6,871,058
Net
increase
(decrease)
in
net
assets
applicable
to
common
shares
resulting
from
operations
......................................................
10,634,328
10,888,019
Distributions
to
common
shareholders
.......................................
(14,201,419)
(16,484,224)
Distributions
to
common
share
holders
from
tax
return
of
capital
....................
(11,656,406)
Total
distributions
to
common
shareholders
...................................
(14,201,419)
(28,140,630)
Net
increase
(decrease)
in
net
assets
...................................
(3,567,091)
(17,252,611)
Net
assets
applicable
to
common
shares:
Beginning
of
period
.....................................................
284,199,298
301,451,909
End
of
period
..........................................................
$280,632,207
$284,199,298
Franklin
Limited
Duration
Income
Trust
Financial
Statements
Statement
of
Cash
Flows
for
the
six
months
ended
June
30,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Franklin
Limited
Duration
Income
Trust
Cash
flow
from
operating
activities:
Dividends,
interest
and
other
income
received
.....................................................
$
9,858,557
Operating
expenses
paid
.....................................................................
(1,822,580)
Interest
expense
paid
........................................................................
(564,837)
Deposits
from
brokers
for
reverse
repurchase
agreements
............................................
150,000
Realized
(loss)
on
foreign
currency
transactions
....................................................
(288)
Purchases
of
long-term
investments
.............................................................
(227,103,884)
Sales
and
maturities
of
long-term
investments
.....................................................
218,529,572
Net
sales
of
short-term
investments
.............................................................
6,997,430
Cash
provided
-
operating
activities
..........................................................
6,043,970
Cash
flow
from
financing
activities:
Prepayment
of
Credit
Facility
..................................................................
(10,000,000)
Proceeds
of
reverse
repurchase
agreements
......................................................
17,893,689
Cash
distributions
to
shareholders
..............................................................
(14,189,364)
Cash
used
-
financing
activities
.............................................................
(6,295,675)
Net
increase
(decrease)
in
cash
.................................................................
(251,705)
Cash
at
beginning
of
period
.....................................................................
1,359,895
Cash
at
end
of
period
.........................................................................
$1,108,190
Reconciliation
of
Net
Increase
(Decrease)
in
Net
Assets
resulting
from
Operating
Activities
to
Net
Cash
Provided
by
Operating
Activities
for
the
six
months
ended
June
30,
2021
(unaudited)
Net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
....................................
$
10,634,328
Adjustments
to
reconcile
net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
to
net
cash
provided
by
operating
activities:
Net
amortization
income
..................................................................
15,764
Reinvested
dividends
from
non-controlled
affiliates
...............................................
(366)
Interest
received
in
the
form
of
securities
......................................................
(194,178)
Decrease
in
dividends
and
interest
receivable
and
other
assets
.....................................
70,523
Increase
in
interest
payable
................................................................
57,691
Increase
in
deposits
from
brokers
............................................................
150,000
Decrease
in
payable
to
affiliates,
accrued
expenses,
and
other
liabilities
...............................
(76,174)
Increase
in
payable
for
investments
purchased
.................................................
5,899,230
Increase
in
receivable
for
investments
sold
.....................................................
(5,097,696)
Increase
in
cost
of
investments
.............................................................
(1,464,945)
Increase
in
unrealized
appreciatio
n
on
investments.
..............................................
(3,950,207)
Net
cash
provided
by
operating
activities
...........................................................
$6,043,970
Franklin
Limited
Duration
Income
Trust
35
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Franklin
Limited
Duration
Income
Trust (Fund)
is
registered under
the
Investment
Company
Act
of
1940
(1940
Act)
as
a
closed-end
management
investment
company
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the 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.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
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. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Purchased
on
a
Delayed
Delivery
and
TBA
Basis
The
Fund
purchases
securities
on
a
delayed
delivery
and
to-be-announced
(TBA)
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
d.
Mortgage
Dollar
Rolls
The
Fund
enters
into
mortgage
dollar
rolls,
typically
on
a
TBA
basis.
Mortgage
dollar
rolls
are
agreements
between
the
Fund
and
a
financial
institution
where
the
Fund
sells
(or
buys)
mortgage-backed
securities
for
delivery
on
a
specified
date
and
simultaneously
contracts
to
repurchase
(or
sell)
substantially
similar
(same
type,
coupon,
and
maturity)
securities
at
a
future
date
and
at
a
predetermined
price.
Gains
or
losses
are
realized
on
the
initial
sale,
and
the
difference
between
the
repurchase
price
and
the
sale
price
is
recorded
as
an
unrealized
gain
or
loss
to
the
Fund
upon
entering
into
the
mortgage
dollar
roll.
In
addition,
the
Fund
may
invest
the
cash
proceeds
that
are
received
from
the
initial
sale.
During
the
period
between
the
sale
and
repurchase,
the
Fund
is
not
entitled
to
principal
and
interest
paid
on
the
mortgage
backed
securities.
Transactions
in
mortgage
dollar
rolls
are
accounted
for
as
purchases
and
sales
and
may
result
in
an
increase
to
the
Fund's
portfolio
turnover
rate.
The
risks
of
mortgage
dollar
roll
transactions
include
the
potential
inability
of
the
counterparty
to
fulfill
its
obligations.
e.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
f.
Marketplace
Lending
The
Fund
invests
in
loans
obtained
through
marketplace
lending.
Marketplace
lending,
sometimes
referred
to
as
peer-to-peer
lending,
is
a
method
of
financing
in
which
a
platform
facilitates
the
borrowing
and
lending
of
money.
It
is
considered
an
alternative
to
more
traditional
forms
of
debt
financing.
Prospective
borrowers
are
required
to
provide
certain
financial
information
to
the
platform,
including,
but
not
limited
to,
the
intended
purpose
of
the
loan,
income,
employment
information,
credit
score,
debt-to-income
ratio,
credit
history
(including
defaults
and
delinquencies)
and
home
ownership
status.
Based
on
this
and
other
information,
the
platform
assigns
its
own
credit
rating
to
the
borrower
and
sets
the
interest
rate
for
the
requested
loan.
The
platform
then
posts
the
borrowing
requests
online,
giving
investors
the
opportunity
to
purchase
the
loans
based
on
factors
such
as
the
interest
rates
and
expected
yields
of
the
loans,
the
borrower
background
data,
and
the
credit
rating
assigned
by
the
platform.
When
the
Fund
invests
in
these
loans,
it
usually
purchases
all
rights,
title
and
interest
in
the
loans
pursuant
to
a
loan
purchase
agreement
directly
from
the
platform.
The
platform
or
a
third-party
servicer
typically
continues
to
service
the
loans,
collecting
payments
and
distributing
them
to
the
Fund,
less
any
servicing
fees
assessed.
The
servicer
is
typically
responsible
for
taking
actions
against
a
borrower
in
the
event
of
a
default
on
the
loan.
Servicing
fees,
along
with
other
administration
fees,
are
included
in
marketplace
lending
fees
in
the
Statement
of
Operations.
The Fund,
as
an
investor
in
a
loan,
would
be
entitled
to
receive
payment
only
from
the
borrower
and
would
not
be
able
to
recover
any
deficiency
from
the
platform,
except
under
very
narrow
circumstances.
The
loans
in
which
the
Fund
may
invest
are
unsecured.
g.
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
June
30,
2021,
the Fund
had
no
securities
on
loan.
h.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
June
30,
2021,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
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. 
i.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
The
Fund
employs
a
managed
distribution
policy
whereby
the
Fund
will
make
monthly
distributions
to
common
shareholders
at
an
annual
minimum
fixed
rate
of
10%,
based
on
the
average
monthly
NAV
of
the
Fund’s
common
shares.
Under
the
policy,
the
Fund
is
managed
with
a
goal
of
generating
as
much
of
the
distribution
as
possible
from
net
investment
income
and
short-term
capital
gains.
The
balance
of
the
distribution
will
then
come
from
long-
term
capital
gains
to
the
extent
permitted
and,
if
necessary,
a
return
of
capital.
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.
j.
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.
k.
Guarantees
and
Indemnifications
Under
the
Fund's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Fund
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
Currently,
the
Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
June
30,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
During
the
period ended
June
30,
2021
and
year
ended
December
31,
2020
there
were
no
shares
issued;
all
reinvested
distributions
were
satisfied
with
previously
issued
shares
purchased
in
the
open
market.
Under
the
Board
approved
open-market
share
repurchase
program,
the
Fund
may
purchase,
from
time
to
time,
Fund
shares
in
open-market
transactions,
at
the
discretion
of
management.
Since
the
inception
of
the
program,
the
Fund
has
repurchased
a
total
of
242,561
shares.
During
the
period ended
June
30,
2021
and
year
ended
December
31,
2020,
there
were
no
shares
repurchased.
3.
Credit
Facility
The
Fund
has
entered
into
a
credit
facility
agreement
(“Credit
Facility”)
with
BNP
Paribas
Prime
Brokerage
International
Ltd.
(“BNPP”)
pursuant
to
which
the
Fund
may
borrow
up
to
a
maximum
commitment
amount
of
$100,000,000.
The
Fund
will
pay
interest
in
the
amount
of
0.90%
plus
the
3-month
U.S.
Dollar
London
Interbank
Offered
Rate
on
the
amount
outstanding.
The
Fund
is
required
to
fully
collateralize
its
outstanding
loan
balance
as
determined
by
BNPP
by
pledging
assets,
which
are
held
1.
Organization
and
Significant
Accounting
Policies
(continued)
h.
Income
and
Deferred
Taxes
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
in
a
segregated
account,
and
are
indicated
in
the
Statement
of
Investments.
If
the
Fund
fails
to
meet
certain
requirements
or
maintain
other
financial
covenants
required
under
the
Credit
Facility,
the
Fund
may
be
required
to
repay
immediately,
in
part
or
in
full,
the
loan
balance
outstanding.
The
Fund
had
outstanding
borrowings
of
$83,000,000
as
of
June
30,
2021
and
incurred
$490,243
of
interest
expense
during
the
period.
Average
borrowings
and
the
average
interest
rate
for
the
days
outstanding
during
the
period
ended
June
30,
2021,
were
$90,241,831
and
1.08%,
respectively.
The
Credit
Facility
also
permits,
subject
to
certain
conditions,
BNPP
to
rehypothecate
portfolio
securities
pledged
by
the
Fund
up
to
the
amount
of
the
loan
balance
outstanding.
The
Fund
continues
to
receive
dividends
and
interest
on
rehypothecated
securities.
The
Fund
also
has
the
right
under
the
Credit
Facility
to
recall
any
securities
pledged
as
collateral
from
BNPP
on
demand.
If
BNPP
fails
to
deliver
the
recalled
security
in
a
timely
manner,
the
Fund
will
be
compensated
for
any
fees
or
losses
related
to
the
failed
delivery
or,
in
the
event
a
recalled
security
is
not
be
returned,
the
Fund,
upon
notice
to
BNPP,
may
reduce
the
loan
balance
outstanding
by
the
market
value
of
the
recalled
security.
The
Fund
will
receive
a
portion
of
the
fees
earned
by
BNPP
in
connection
with
the
rehypothecation
of
portfolio
securities.
Rehypothecated
securities
are
included
among
the
portfolio
securities
pledged
by
the
Fund
as
collateral
for
the
Credit
Facility.
As
of
June
30,
2021,
there
were
no
rehypothecated
securities.
4. Reverse
Repurchase
Agreements 
The
Fund enters
into
reverse
repurchase
agreements,
under
which
the
Fund
sells
securities
in
exchange
for
cash
to
counterparties,
with
a
simultaneous
agreement
to
repurchase
the
same
or
substantially
the
same
security
at
a
mutually
agreed-upon
date
and
price.
Such
a
transaction
is
accounted
for
as
a
secured
borrowing
by
the
Fund,
collateralized
by
securities
for
which
the
Fund
retains
possession.
The
gross
amount
of
cash
received
in
exchange
for
securities
sold
plus
accrued
interest
payments
to
be
made
by
the
Fund
to
counterparties
are
reflected
as
a
payable
for
Reverse
repurchase
agreements
on
the
Statement
of
Assets
and
Liabilities.
Interest
payments
made
on
reverse
repurchase
agreements
are
recorded
as
a
component
of
interest
expense
on
the
Statement
of
Operations.
Reverse
repurchase
agreements
are
subject
to
the
terms
of
Master
Repurchase
Agreements
(MRAs)
with
approved
counterparties
(buyers).
The
MRAs
contain
various
provisions,
including
but
not
limited
to
events
of
default
and
maintenance
of
collateral
for
reverse
repurchase
agreements.
In
the
event
of
default
by
either
the
buyer
or
the
Fund,
certain
MRAs
may
permit
the
non-defaulting
party
to
net
and
close-out
all
transactions,
if
any,
traded
under
such
agreements.
The
buyer
may
sell
securities
the Fund
pledged
as
collateral
and
apply
the
proceeds
towards
the
reverse
repurchase
price
and
any
other
amounts
owed
by
the Fund
in
the
event
of
default
by
the
Fund.
This
could
involve
costs
or
delays
in
addition
to
a
loss
on
the
securities
if
their
value
falls
below
the
reverse
repurchase
price
owed
by
the
Fund.
The
Fund
monitors
collateral
fair
value
for
the
reverse
repurchase
agreement,
including
accrued
interest,
over
the
life
of
the
agreement,
and
when
necessary,
delivers
or
receives
cash
or
securities
in
order
to
manage
credit
exposure
and
liquidity.
The
remaining
contractual
maturity
of
the
repurchase
agreements
totaling
$36,474,590,
which
includes
interest
due
at
maturity,
are
31-90
days.
The
Fund
pledged
corporate
bonds,
asset-backed
securities,
commercial
mortgage-backed
securities
and
residential
mortgage-backed
securities
as
the
collateral
valued
at
$36,475,429,
which
has
been
identified
on
the
Statement
of
Investments.
Cash
collateral
that
has
been
received
to
manage
credit
exposure
and
liquidity
for
reverse
repurchase
agreements
is
reflected
as
payable
for
deposits
from
brokers
for
reverse
repurchase
agreements
on
the
Statement
of
Assets
and
Liabilities
For
the period
ended
June
30,
2021,
the
average
borrowings
and
the
average
interest
rate
were
$25,490,985,
and
0.9%,
respectively.
3.
Credit
Facility
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
5.
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
of
0.70%
per
year
of
the
average
daily
managed
assets.
Managed
assets
are
defined
as
the
Fund’s
gross
asset
value
minus
the
sum
of
accrued
liabilities,
other
than
the
principal
amount
of
the
Credit
Facili
ty
and
other
financial
leverage.
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.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
June
30,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
    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
Limited
Duration
Income
Trust
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.......
$18,328,988
$78,604,680
$(85,601,744)
$—
$—
$11,331,924
11,331,924
$366
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.......
$—
$2,000
$(2,000)
$
$
$—
a
$—
Total
Affiliated
Securities
....
$18,328,988
$78,606,680
$(85,603,744)
$—
$—
$11,331,924
$366
a
As
of
June
30,
2021,
no
longer
held
by
the
fund.
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
6.
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
June
30,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
7.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
December
31,
2020,
the
capital
loss
carryforwards
were
as
follows:
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
paydown
losses,
corporate
action,
bond
discounts
and
premiums
and
defaulted
bonds.
8.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
June
30,
2021,
aggregated
$233,003,114
and
$222,890,841,
respectively.
9.
Credit Risk
and
Defaulted
Securities
At
June
30,
2021,
the
Fund
had
74.7%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
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
June
30,
2021,
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.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$3,030,155
Long
term
................................................................................
30,625,629
Total
capital
loss
carryforwards
...............................................................
$33,655,784
Cost
of
investments
..........................................................................
$385,117,426
Unrealized
appreciation
........................................................................
$13,668,681
Unrealized
depreciation
........................................................................
(9,974,172)
Net
unrealized
appreciation
(depreciation)
..........................................................
$3,694,509
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
10.
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.
11.
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
June
30,
2021,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
12.
Unfunded
Loan
Commitments
The
Fund
enters
into
certain
credit
agreements,
all
or
a
portion
of
which
may
be
unfunded.
The Fund
is
obligated
to
fund
these
loan
commitments
at
the
borrowers’
discretion.
Unfunded
loan
commitments
and
funded
portions
of
credit
agreements
are
marked
to
market
daily
and
any
unrealized
appreciation
or
depreciation
is
included
in
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations.
Funded
portions
of
credit
agreements
are
presented
in
the
Statement
of
Investments.
At
June
30,
2021,
unfunded
commitments
were
as
follows:
13.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
quoted
prices
in
active
markets
for
identical
financial
instruments
Principal
Amount
*
/
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Limited
Duration
Income
Trust
1,520,250
Goodrich
Petroleum
Corp.,
13.5%,
5/31/23
.........
3/09/21
-
4/15/21
$
1,520,250
$
1,618,185
2,334,763
Nine
Point
Energy
LLC
........................
7/15/14
-
1/22/21
1,208,234
Total
Restricted
Securities
(Value
is
0.6%
of
Net
Assets)
..............
$2,728,484
$1,618,185
*
In
U.S.
dollars
unless
otherwise
indicated.
Borrower
Unfunded
Commitment
Al
Aqua
Merger
Sub,
Inc.
$119,494
Aveanna
Healthcare
LLC
164,440
National
Mentor
Holdings,
Inc.
70,980
Pluto
Acquisition
I,
Inc.
858,711
$1,213,625
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
Level
2
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
significant
unobservable
inputs
(including
the
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
June
30,
2021,
in
valuing
the
Fund's
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Limited
Duration
Income
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
Energy
Equipment
&
Services
.............
$
120,302
$
$
$
120,302
Hotels,
Restaurants
&
Leisure
.............
58,221
58,221
Machinery
............................
302,355
302,355
Metals
&
Mining
.......................
336,969
336,969
Oil,
Gas
&
Consumable
Fuels
.............
2,404
1,628
a
4,032
Road
&
Rail
..........................
a
Specialty
Retail
........................
160,130
160,130
Preferred
Stocks
........................
177,267
177,267
Warrants
:
Oil,
Gas
&
Consumable
Fuels
.............
737
452
1,189
Paper
&
Forest
Products
.................
1,196
1,196
Convertible
Bonds
.......................
24,765
24,765
Corporate
Bonds
:
Aerospace
&
Defense
...................
1,478,750
1,478,750
Air
Freight
&
Logistics
...................
401,794
401,794
Airlines
..............................
3,353,501
3,353,501
Auto
Components
......................
4,006,674
4,006,674
Banks
...............................
1,595,625
1,595,625
Beverages
...........................
700,875
700,875
Biotechnology
.........................
2,052,484
2,052,484
Building
Products
......................
3,870,682
3,870,682
Chemicals
...........................
5,730,766
5,730,766
Commercial
Services
&
Supplies
...........
4,031,214
4,031,214
Construction
&
Engineering
...............
4,534,543
4,534,543
Consumer
Finance
.....................
2,860,732
2,860,732
Containers
&
Packaging
.................
11,774,838
11,774,838
Diversified
Financial
Services
.............
1,509,353
1,509,353
Diversified
Telecommunication
Services
.....
3,726,055
3,726,055
Electric
Utilities
........................
2,767,875
2,767,875
Electrical
Equipment
....................
1,016,333
1,016,333
Electronic
Equipment,
Instruments
&
Components
........................
1,445,415
1,445,415
Energy
Equipment
&
Services
.............
3,209,305
3,209,305
Entertainment
.........................
3,456,844
3,456,844
Equity
Real
Estate
Investment
Trusts
(REITs)
.
3,187,346
3,187,346
Food
Products
........................
3,866,637
3,866,637
Health
Care
Equipment
&
Supplies
.........
194,007
194,007
Health
Care
Providers
&
Services
..........
8,208,666
8,208,666
Hotels,
Restaurants
&
Leisure
.............
17,239,089
17,239,089
Household
Durables
....................
3,038,212
3,038,212
Independent
Power
and
Renewable
Electricity
Producers
..........................
6,551,112
6,551,112
13.
Fair
Value
Measurements
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
44
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
At
June
30,
2021,
the
reconciliation is
as follows:
Level
1
Level
2
Level
3
Total
Franklin
Limited
Duration
Income
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Insurance
............................
$
$
1,578,345
$
$
1,578,345
Internet
&
Direct
Marketing
Retail
..........
520,935
520,935
IT
Services
...........................
4,800,361
4,800,361
Machinery
............................
4,656,257
4,656,257
Media
...............................
10,996,803
10,996,803
Metals
&
Mining
.......................
4,232,079
4,232,079
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
987,350
987,350
Oil,
Gas
&
Consumable
Fuels
.............
17,167,653
1,618,185
18,785,838
Personal
Products
.....................
818,027
818,027
Pharmaceuticals
.......................
7,938,390
7,938,390
Real
Estate
Management
&
Development
....
2,095,825
2,095,825
Road
&
Rail
..........................
522,500
879,807
1,402,307
Semiconductors
&
Semiconductor
Equipment
.
309,476
309,476
Software
.............................
4,422,916
4,422,916
Specialty
Retail
........................
3,634,843
3,634,843
Textiles,
Apparel
&
Luxury
Goods
..........
1,061,250
1,061,250
Thrifts
&
Mortgage
Finance
...............
4,820,875
4,820,875
Trading
Companies
&
Distributors
..........
2,345,712
2,345,712
Wireless
Telecommunication
Services
.......
4,626,649
4,626,649
Senior
Floating
Rate
Interests
...............
131,814,794
131,814,794
Marketplace
Loans
......................
4,932,164
4,932,164
Asset-Backed
Securities
:
Capital
Markets
........................
18,366
18,366
Diversified
Financial
Services
.............
30,787,813
136,402
30,924,215
Commercial
Mortgage-Backed
Securities
......
3,304,761
3,304,761
Mortgage-Backed
Securities
................
52,467,232
52,467,232
Residential
Mortgage-Backed
Securities
......
3,387,362
3,387,362
Escrows
and
Litigation
Trusts
...............
a
Short
Term
Investments
...................
11,331,924
11,331,924
Total
Investments
in
Securities
...........
$11,953,662
$405,687,909
$7,568,638
$425,210,209
Other
Financial
Instruments:
Unfunded
Loan
Commitments
..............
$
$
3,474
$
$
3,474
Total
Other
Financial
Instruments
.........
$—
$3,474
$—
$3,474
Liabilities:
Other
Financial
Instruments:
Reverse
Repurchase
Agreements
............
$
$
36,420,917
$
$
36,420,917
a
Includes
securities
determined
to
have
no
value
at
June
30,
2021.
13.
Fair
Value
Measurements
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
45
franklintempleton.com
Semiannual
Report
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
June
30,
2021,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
c
Transfer
Out
of
Level
3
d
Net
accretion
(
amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Limited
Duration
Income
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
.
$
e
$
$
e
$
$
$
$
(1,947,001)
$
1,947,001
$
$
Oil,
Gas
&
Consumable
Fuels
..........
1,631
(3)
1,628
e
(3)
Road
&
Rail
.......
14,006
(14,006)
e
(14,006)
Warrants
:
Oil,
Gas
&
Consumable
Fuels
..........
87
365
452
365
Corporate
Bonds
:
Hotels,
Restaurants
&
Leisure
.........
11,400
(11,400)
Oil,
Gas
&
Consumable
Fuels
..........
3,092
1,520,250
(3,092)
97,935
1,618,185
97,935
Road
&
Rail
.......
864,816
41,563
(26,572)
879,807
(26,572)
Senior
Floating
Rate
Interests
:
Road
&
Rail
.......
647,125
(696,715)
(6,240)
(28,528)
84,358
Marketplace
Loans
:
Diversified
Financial
Services
........
7,222,952
148,156
(2,676,203)
(90,271)
327,530
4,932,164
33,145
Asset-Backed
Securities
:
Diversified
Financial
Services
........
(49,577)
188,710
(1,070)
(1,661)
136,402
(1,661)
Escrows
and
Litigation
Trusts
...........
3,000
e
(9,334)
(43,576)
49,910
e
Total
Investments
in
Securities
.
$8,768,109
$1,668,406
$(3,431,829)
$188,710
$(14,492)
$35,323
$(2,110,446)
$2,464,857
$7,568,638
$89,203
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Transferred
into
level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
or
as
a
result
of
the
unreliability
of
the
foreign
exchange
rate
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
d
Transferred
out
of
Level
3
as
a
result
of
the
availability
of
a
quoted
price
in
an
active
market
for
identical
securities
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
e
Includes
securities
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
46
franklintempleton.com
Semiannual
Report
14.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
and
2023. The
ASUs
are
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
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Limited
Duration
Income
Trust
Assets:
Investments
in
Securities:
Corporate
Bonds:
Oil,
Gas
&
Consumable
Fuels
$1,618,185
Discounted
cash
flow
Discount
rate
15.6%
Decrease
c
Free
cash
flow
$.9
mil
Increase
Road
&
Rail
$879,807
Discounted
cash
flow
Discount
rate
15.6%
Decrease
Free
cash
flow
$1.7
mil
Increase
Marketplace
Loans:
Lending
Club-LCX
PM
......
468,872
Discounted
cash
flow
Loss-adjusted
discount
rate
10.5%
Decrease
d
Projected
loss
rate
11.7%
Decrease
d
Lending
Club-LCX
422,518
Discounted
cash
flow
Loss-adjusted
discount
rate
10.3%
Decrease
d
Projected
loss
rate
21.5%
Decrease
d
Lending
Club
.............
3,944,532
Discounted
cash
flow
Loss-adjusted
discount
rate
7.1%
Decrease
d
Projected
loss
rate
19.3%
Decrease
d
All
Other
Investments
..........
234,724
e,f
Total
.......................
$7,568,638
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
c
Represents
a
significant
impact
to
fair
value
but
not
net
assets.
d
Represents
a
significant
impact
to
fair
value
and
net
assets
e
Includes
securities
determined
to
have
no
value
at
June
30,
2021.
f
Includes
financial
instruments
with
values
derived
using
private
transaction
prices
or
non-public
third
party
pricing
information
which
is
unobservable.
May
also
include
fair
value
of
immaterial
financial
instruments
and
developed
using
various
valuation
techniques
and
unobservable
inputs.
13.
Fair
Value
Measurements
(continued)
Franklin
Limited
Duration
Income
Trust
Notes
to
Financial
Statements
(unaudited)
47
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Semiannual
Report
15.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
CLO
Collateralized
Loan
Obligation
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
LIBOR
London
Inter-Bank
Offered
Rate
MBS
Mortgage-Backed
Security
PIK
Payment-In-Kind
TBD
To
Be
Determined
Franklin
Limited
Duration
Income
Trust
Annual
Meeting
of
Shareholders
48
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The
Annual
Meeting
of
Shareholders
(the
“Meeting”)
for
Franklin
Limited
Duration
Income
Trust
(Fund)
was
held
on
October
1,
2020.
At
the
Meeting,
shareholders
elected
Terrence
J.
Checki,
Mary
C.
Choksi,
Rupert
H.
Johnson,
Jr.
and
Larry
D.
Thompson
as
Trustees
of
the
Fund
to
hold
office
for
a
three
year
term,
set
to
expire
at
the
2023
Annual
Meeting
of
Shareholders.
These
terms
continue,
however,
until
their
successors
are
duly
elected
and
qualified
or
until
a
Trustee’s
resignation,
retirement,
death
or
removal,
whichever
is
earlier.
The
results
of
the
voting
were
as
follows:
Note:
Harris
J.
Ashton,
Edith
E.
Holiday,
Gregory
E.
Johnson
and
J.
Michael
Luttig
are
Trustees
of
the
Fund
who
are
currently
serving
and
whose
terms
of
office
continued
after
the
meeting.
Trustee
Nominees
Shares
For
Shares
Withheld
Terrence
J.
Checki
26,089,612
514,875
Mary
C.
Choksi
26,103,663
500,824
Rupert
H.
Johnson,
Jr.
26,059,008
545,479
Larry
D.
Thompson
26,074,129
530,358
Franklin
Limited
Duration
Income
Trust
49
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Semiannual
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Dividend
Reinvestment
and
Cash
Purchase
Plan
The
Fund’s
Dividend
Reinvestment
Plan
(Plan)
offers
you
a
prompt
and
simple
way
to
reinvest
dividends
and
capital
gain
distributions
(Distributions)
in
shares
of
the
Fund.
American
Stock
Transfer
&
Trust
Company,
LLC
(Plan
Agent),
P.O.
Box
922,
Wall
Street
Station,
New
York,
NY
10269-0560,
acts
as
your
Plan
Agent
in
administering
the
Plan.
The
Agent
will
open
an
account
for
you
under
the
Plan
in
the
same
name
as
your
outstanding
shares
are
registered.
You
are
automatically
enrolled
in
the
Plan
unless
you
elect
to
receive
Distributions
in
cash.
If
you
own
shares
in
your
own
name,
you
should
notify
the
Agent,
in
writing,
if
you
wish
to
receive
Distributions
in
cash.
If
the
Fund
declares
a
Distribution,
you,
as
a
participant
in
the
Plan,
will
automatically
receive
an
equivalent
amount
of
shares
of
the
Fund
purchased
on
your
behalf
by
the
Agent.
If
on
the
payment
date
for
a
Distribution,
the
net
asset
value
per
share
is
equal
to
or
less
than
the
market
price
per
share
plus
estimated
brokerage
commissions,
the
Agent
shall
receive
newly
issued
shares,
including
fractions,
from
the
Fund
for
your
account.
The
number
of
additional
shares
to
be
credited
shall
be
determined
by
dividing
the
dollar
amount
of
the
Distribution
by
the
greater
of
the
net
asset
value
per
share
on
the
payment
date,
or
95%
of
the
then
current
market
price
per
share.
If
the
net
asset
value
per
share
exceeds
the
market
price
plus
estimated
brokerage
commissions
on
the
payment
date
for
a
Distribution,
the
Agent
(or
a
broker-dealer
selected
by
the
Agent)
shall
try,
for
a
purchase
period
of
30
days,
to
apply
the
amount
of
such
Distribution
on
your
shares
(less
your
pro
rata
share
of
brokerage
commissions
incurred)
to
purchase
shares
on
the
open
market.
The
weighted
average
price
(including
brokerage
commissions)
of
all
shares
it
purchases
shall
be
your
allocated
price
per
share.
If,
before
the
Agent
has
completed
its
purchases,
the
market
price
plus
estimated
brokerage
commissions
exceeds
the
net
asset
value
of
the
shares
as
of
the
payment
date,
the
purchase
price
the
Agent
paid
may
exceed
the
net
asset
value
of
the
shares,
resulting
in
the
acquisition
of
fewer
shares
than
if
such
Distribution
had
been
paid
in
shares
issued
by
the
Fund.
Participants
should
note
that
they
will
not
be
able
to
instruct
the
Agent
to
purchase
shares
at
a
specific
time
or
at
a
specific
price.
The
Agent
may
make
open-market
purchases
on
any
securities
exchange
where
shares
are
traded,
in
the
over-the-counter
market
or
in
negotiated
transactions,
and
may
be
on
such
terms
as
to
price,
delivery
and
otherwise
as
the
Agent
shall
determine.
The
market
price
of
shares
on
a
particular
date
shall
be
the
last
sales
price
on
NYSE
MKT,
or,
if
there
is
no
sale
on
the
exchange
on
that
date,
then
the
mean
between
the
closing
bid
and
asked
quotations
on
the
exchange
on
such
date.
The
net
asset
value
per
share
on
a
particular
date
shall
be
the
amount
most
recently
calculated
by
or
on
behalf
of
the
Fund
as
required
by
law.
The
Agent
shall
at
all
times
act
in
good
faith
and
agree
to
use
its
best
efforts
within
reasonable
limits
to
ensure
the
accuracy
of
all
services
performed
under
this
agreement
and
to
comply
with
applicable
law,
but
assumes
no
responsibility
and
shall
not
be
liable
for
loss
or
damage
due
to
errors
unless
such
error
is
caused
by
the
Agent’s
negligence,
bad
faith,
or
willful
misconduct
or
that
of
its
employees.
Your
uninvested
funds
held
by
the
Agent
will
not
bear
interest.
The
Agent
shall
have
no
responsibility
for
the
value
of
shares
acquired.
For
the
purpose
of
cash
investments,
the
Agent
may
commingle
your
funds
with
those
of
other
participants
in
the
same
Fund.
There
is
no
direct
charge
to
participants
for
reinvesting
Distributions,
since
the
Agent’s
fees
are
paid
by
the
Fund.
However,
when
shares
are
purchased
in
the
open
market,
each
participant
will
pay
a
pro
rata
portion
of
any
brokerage
commissions
incurred.
If
you
elect
by
notice
to
the
Agent
to
have
it
sell
part
or
all
of
your
shares
and
remit
the
proceeds,
the
Agent
will
deduct
brokerage
commissions
from
the
proceeds.
The
automatic
reinvestment
of
Distributions
does
not
relieve
you
of
any
taxes
that
may
be
payable
on
Distributions.
In
connection
with
the
reinvestment
of
Distributions,
shareholders
generally
will
be
treated
as
having
received
a
Distribution
equal
to
the
cash
Distribution
that
would
have
been
paid.
The
Agent
will
forward
to
you
any
proxy
solicitation
material
and
will
vote
any
shares
so
held
for
you
first
in
accordance
with
the
instructions
set
forth
on
proxies
you
return
to
the
Fund,
and
then
with
respect
to
any
proxies
you
do
not
return
to
the
Fund
in
the
same
portion
as
the
Agent
votes
proxies
the
participants
return
to
the
Fund.
Franklin
Limited
Duration
Income
Trust
Dividend
Reinvestment
and
Cash
Purchase
Plan
50
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Semiannual
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As
long
as
you
participate
in
the
Plan,
the
Agent
will
hold
the
shares
it
has
acquired
for
you
in
safekeeping,
in
its
name
or
in
the
name
of
its
nominee.
This
convenience
provides
added
protection
against
loss,
theft
or
inadvertent
destruction
of
certificates.
However,
you
may
request
that
a
certificate
representing
your
Plan
shares
be
issued
to
you.
Upon
your
written
request,
the
Agent
will
deliver
to
you,
without
charge,
a
certificate
or
certificates
for
the
full
shares.
The
Agent
will
send
you
a
confirmation
of
each
acquisition
made
for
your
account
as
soon
as
practicable,
but
not
later
than
60
days
after
the
acquisition
date.
Although
from
time
to
time
you
may
have
an
undivided
fractional
interest
in
a
share
of
the
Fund,
no
certificates
for
a
fractional
share
will
be
issued.
Distributions
on
fractional
shares
will
be
credited
to
your
account.
If
you
terminate
your
account
under
the
Plan,
the
Agent
will
adjust
for
any
such
undivided
fractional
interest
in
cash
at
the
market
value
of
shares
at
the
time
of
termination.
You
may
withdraw
from
the
Plan
at
any
time,
without
penalty,
by
notifying
the
Agent
in
writing
at
the
address
above
or
by
telephone
at
(800)
416-5585.
Such
termination
will
be
effective
with
respect
to
a
Distribution
if
the
Agent
receives
your
notice
prior
to
the
Distribution
record
date.
The
Agent
or
the
Fund
may
terminate
the
Plan
upon
notice
to
you
in
writing
mailed
at
least
30
days
prior
to
any
record
date
for
the
payment
of
any
Distribution.
Upon
any
termination,
the
Agent
will
issue,
without
charge,
stock
certificates
for
all
full
shares
you
own
and
will
convert
any
fractional
shares
you
hold
at
the
time
of
termination
to
cash
at
current
market
price
and
send
you
a
check
for
the
proceeds.
The
Fund
or
the
Agent
may
amend
the
Plan.
You
will
receive
written
notice
at
least
30
days
before
the
effective
date
of
any
amendment.
Franklin
Limited
Duration
Income
Trust
Shareholder
Information
51
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Semiannual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
LIMITED
DURATION
INCOME
TRUST
(Fund)
At
a
meeting
held
on
February
23,
2021
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
telephonic
contract
renewal
meeting
at
which
the
Independent
Trustees
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters
and,
in
some
cases,
requested
additional
information
from
the
Manager
relating
to
the
contract.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund
(including
its
share
price
discount
to
net
asset
value);
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
noted
management’s
continuing
efforts
and
expenditures
in
establishing
effective
business
continuity
plans
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
such
as
cybersecurity
in
the
current
work-from-home
environment
and
liquidity
risk
management.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
Franklin
Templeton
(FT)
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
enhancing
services
and
controlling
costs,
as
reflected
in
its
outsourcing
of
certain
administrative
functions,
and
growth
opportunities,
as
evidenced
by
its
recent
acquisition
of
the
Legg
Mason
companies.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Franklin
Limited
Duration
Income
Trust
Shareholder
Information
52
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Semiannual
Report
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
November
30,
2020.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
Such
results
are
based
on
net
asset
value
without
regard
to
market
discounts
or
premiums.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
leveraged
closed-end
general
bond
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-
and
three-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
and
primarily
in
the
fifth
quintile
(worst)
of
the
Fund’s
Performance
Universe.
The
Board
discussed
this
performance
with
management
and
management
explained
that
the
Performance
Universe
was
composed
of
a
disparate
group
of
fixed-income
closed-end
funds,
noting
that
only
one
of
these
funds
has
the
same
multi-sector
asset
mix
as
the
Fund
and
limited
duration
investment
mandate
followed
by
the
Fund.
The
Board
considered
that
the
income-oriented
investment
objective
of
the
Fund
is
the
primary
focus
for
the
Fund’s
portfolio
management
team
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
annualized
income
return
basis
is
consistent
with
investor
expectations
and
the
Fund’s
investment
goals.
Given
management’s
explanation
and
the
Fund’s
income-oriented
investment
objective,
the
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
underlying
fund
expenses;
investment-related
expenses;
and
other
non-management
fees.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
report,
which
reflects
historical
asset
levels.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
the
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
nine
other
leveraged
closed-end
general
bond
funds.
The
Board
noted
that
the
Management
Rate
and
actual
total
expense
ratio
for
the
Fund
were
below
the
medians
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2020,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
further
noted
management’s
representation
that
the
profitability
analysis
excluded
the
impact
of
the
recent
acquisition
of
the
Legg
Mason
companies
and
that
management
expects
to
incorporate
the
legacy
Legg
Mason
companies
into
the
profitability
analysis
beginning
next
year.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
Franklin
Limited
Duration
Income
Trust
Shareholder
Information
53
franklintempleton.com
Semiannual
Report
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
The
Board
believes
that
the
Manager’s
ability
to
realize
economies
of
scale
and
the
sharing
of
such
benefit
is
a
more
relevant
consideration
in
the
case
of
an
open-end
fund
whose
size
increases
as
a
result
of
the
continuous
sale
of
its
shares.
A
closed-end
fund,
such
as
the
Fund,
does
not
continuously
offer
shares,
and
growth
following
its
initial
public
offering
will
primarily
result
from
market
appreciation,
which
benefits
its
shareholders.
While
believing
economies
of
scale
to
be
less
of
a
factor
in
the
context
of
a
closed-end
fund,
the
Board
believes
at
some
point
an
increase
in
size
may
lead
to
economies
of
scale
that
would
be
shared
with
the
Fund
and
its
shareholders
and
intends
to
monitor
future
growth
of
the
Fund
accordingly.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
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
Consolidated
Statement
of
Investments
The
Fund
files
a
complete
consolidated
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.
FTF
S
08/21
©
2021
Franklin
Templeton
Investments.
All
rights
reserved.
To
help
ensure
we
provide
you
with
quality
service,
all
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areas
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Semiannual
Report
Franklin
Limited
Duration
Income
Trust
Investment
Manager
Transfer
Agent
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www.astfinancial.com
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.
 

Members of the Audit Committee are: Terrence J. Checki, Mary C. Choksi, Edith E. Holiday, J.
Michael Luttig and Larry D. Thompson
.
 
 
Item 6. Schedule of Investments.          N/A
 
 
Item 7
. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
 
The board of trustees of the Fund has delegated the authority to vote proxies related to the portfolio securities held by the Fund to the Fund’s investment manager, Franklin Advisers, Inc., in accordance with the Proxy Voting Policies and Procedures (Policies) adopted by the investment manager.
The investment manager has delegated its administrative duties with respect to the voting of proxies for securities to the Proxy Group within Franklin Templeton Companies, LLC (Proxy Group), an affiliate and wholly owned subsidiary of Franklin Resources, Inc. All proxies received by the Proxy Group will be voted based upon the investment manager’s instructions and/or policies. The investment manager votes proxies solely in the best interests of the Fund and its shareholders.
To assist it in analyzing proxies of equity securities, the investment manager subscribes to Institutional Shareholder Services, Inc. (ISS), an unaffiliated third-party corporate governance research service that provides in-depth analyses of shareholder meeting agendas, vote recommendations, vote execution services, ballot reconciliation services, recordkeeping and vote disclosure services. In addition, the investment manager subscribes to Glass, Lewis & Co., LLC (Glass Lewis), an unaffiliated third-party analytical research firm, to receive analyses and vote recommendations on the shareholder meetings of publicly held U.S. companies, as well as a limited subscription to its international research. Although analyses provided by ISS, Glass Lewis, and/or another independent third party proxy service provider (each a "Proxy Service") are thoroughly reviewed and considered in making a final voting decision, the investment manager does not consider recommendations from a Proxy Service or any third party to be determinative of the investment manager's ultimate decision. Rather, the investment manager exercises its independent judgment in making voting decisions. For most proxy proposals, the investment manager’s evaluation will result in the same position being taken for all Funds. In some cases, however, the evaluation may result in a Fund or investment manager voting differently, depending upon the nature and objective of the Fund, the composition of its portfolio, whether the investment manager has adopted a custom voting policy, and other factors. As a matter of policy, the officers, directors/trustees and employees of the investment manager and the Proxy Group will not be influenced by outside sources whose interests conflict with the interests of the Fund and its shareholders. Efforts are made to resolve all conflicts in the best interests of the investment manager’s clients. Material conflicts of interest are identified by the Proxy Group based upon analyses of client, distributor, broker-dealer and vendor lists, information periodically gathered from directors and officers, and information derived from other sources, including public filings. In situations where a material conflict of interest is identified, the Proxy Group may vote consistent with the voting recommendation of a Proxy Service; or send the proxy directly to the Fund's board or a committee of the board with the investment manager's recommendation regarding the vote for approval.
Where a material conflict of interest has been identified, but the items on which the investment manager’s vote recommendations differ from a Proxy Service and relate specifically to (1) shareholder proposals regarding social or environmental issues, (2) “Other Business” without describing the matters that might be considered, or (3) items the investment manager wishes to vote in opposition to the recommendations of an issuer’s management, the Proxy Group may defer to the vote recommendations of the investment manager rather than sending the proxy directly to the Fund's board or a board committee for approval.
To avoid certain potential conflicts of interest, the investment manager will employ echo voting or pass-through voting, if possible, in the following instances: (1) when the Fund invests in an underlying fund in reliance on any one of Sections 12(d)(1)(F) or (G) of the 1940 Act, the rules thereunder, or pursuant to a SEC exemptive order thereunder; (2) when the Fund invests uninvested cash in affiliated money market funds pursuant to the rules under the 1940 Act or any exemptive orders thereunder (“cash sweep arrangement”); or (3) when required pursuant to the Fund’s governing documents or applicable law. Echo voting means that the investment manager will vote the shares in the same proportion as the vote of all other holders of the underlying fund's shares. With respect to instances when a Franklin Templeton U.S. registered investment company invests in an underlying fund in reliance on any one of Sections 12(d)(1)(F) or (G) of the 1940 Act, the rules thereunder, or pursuant to an SEC exemptive order thereunder, and there are no other unaffiliated shareholders also invested in the underlying fund, the investment manager will vote in accordance with the recommendation of such investment company’s board of trustees or directors. In addition, to avoid certain potential conflicts of interest, and where required under a fund’s governing documents or applicable law, the investment manager will employ pass-through voting when a Franklin Templeton U.S. registered investment company invests in an underlying fund in reliance on Section 12(d)(1)(E) of the 1940 Act, the rules thereunder, or pursuant to an SEC exemptive order thereunder. In “pass-through voting,” a feeder fund will solicit voting instructions from its shareholders as to how to vote on the master fund’s proposals. If a Franklin Templeton investment company becomes a holder of more than 25% of the shares on a non-affiliated fund, as a result of a decrease in the outstanding shares of the non-affiliated fund, then the investment manager will vote the shares in the same proportion as the vote of all other holders of the non-affiliated fund.
The recommendation of management on any issue is a factor that the investment manager considers in determining how proxies should be voted. However, the investment manager does not consider recommendations from management to be determinative of the investment manager’s ultimate decision. As a matter of practice, the votes with respect to most issues are cast in accordance with the position of the company's management. Each issue, however, is considered on its own merits, and the investment manager will not support the position of the company's management in any situation where it deems that the ratification of management’s position would adversely affect the investment merits of owning that company’s shares.
Engagement with issuers
. The investment manager believes that engagement with issuers is important to good corporate governance and to assist in making proxy voting decisions. The investment manager may engage with issuers to discuss specific ballot items to be voted on in advance of an annual or special meeting to obtain further information or clarification on the proposals. The investment manager may also engage with management on a range of environmental, social or corporate governance issues throughout the year.
Investment manager’s proxy voting policies and principles
 The investment manager has adopted general proxy voting guidelines, which are summarized below. These guidelines are not an exhaustive list of all the issues that may arise and the investment manager cannot anticipate all future situations. In all cases, each proxy and proposal (including both management and shareholder proposals) will be considered based on the relevant facts and circumstances on a case-by-case basis.
Board of directors
. The investment manager supports an independent, diverse board of directors, and prefers that key committees such as audit, nominating, and compensation committees be comprised of independent directors. The investment manager supports boards with strong risk management oversight. The investment manager will generally vote against management efforts to classify a board and will generally support proposals to declassify the board of directors. The investment manager will consider withholding votes from directors who have attended less than 75% of meetings without a valid reason. While generally in favor of separating Chairman and CEO positions, the investment manager will review this issue as well as proposals to restore or provide for cumulative voting on a case-by-case basis, taking into consideration factors such as the company’s corporate governance guidelines or provisions and performance. The investment manager generally will support non-binding shareholder proposals to require a majority vote standard for the election of directors; however, if these proposals are binding, the investment manager will give careful review on a case-by-case basis of the potential ramifications of such implementation.
In the event of a contested election, the investment manager will review a number of factors in making a decision including management’s track record, the company’s financial performance, qualifications of candidates on both slates, and the strategic plan of the dissidents and/or shareholder nominees.
Ratification of auditors of portfolio companies
. The investment manager will closely scrutinize the independence, role and performance of auditors. On a case-by-case basis, the investment manager will examine proposals relating to non-audit relationships and non-audit fees. The investment manager will also consider, on a case-by-case basis, proposals to rotate auditors, and will vote against the ratification of auditors when there is clear and compelling evidence of a lack of independence, accounting irregularities or negligence. The investment manager may also consider whether the ratification of auditors has been approved by an appropriate audit committee that meets applicable composition and independence requirements.
Management and director compensation
. A company’s equity-based compensation plan should be in alignment with the shareholders’ long-term interests. The investment manager believes that executive compensation should be directly linked to the performance of the company. The investment manager evaluates plans on a case-by-case basis by considering several factors to determine whether the plan is fair and reasonable, including the ISS quantitative model utilized to assess such plans and/or the Glass Lewis evaluation of the plans. The investment manager will generally oppose plans that have the potential to be excessively dilutive, and will almost always oppose plans that are structured to allow the repricing of underwater options, or plans that have an automatic share replenishment “evergreen” feature. The investment manager will generally support employee stock option plans in which the purchase price is at least 85% of fair market value, and when potential dilution is 10% or less.
Severance compensation arrangements will be reviewed on a case-by-case basis, although the investment manager will generally oppose “golden parachutes” that are considered to be excessive. The investment manager will normally support proposals that require a percentage of directors’ compensation to be in the form of common stock, as it aligns their interests with those of shareholders.
The investment manager will review non-binding say-on-pay proposals on a case-by-case basis, and will generally vote in favor of such proposals unless compensation is misaligned with performance and/or shareholders’ interests, the company has not provided reasonably clear disclosure regarding its compensation practices, or there are concerns with the company’s remuneration practices.
Anti-takeover mechanisms and related issues
.  The investment manager generally opposes anti-takeover measures since they tend to reduce shareholder rights. However, as with all proxy issues, the investment manager conducts an independent review of each anti-takeover proposal. On occasion, the investment manager may vote with management when the research analyst has concluded that the proposal is not onerous and would not harm the Fund or its shareholders’ interests. The investment manager generally supports proposals that require shareholder rights’ plans (often referred to as “poison pills”) to be subject to a shareholder vote and will closely evaluate such plans on a case-by-case basis to determine whether or not they warrant support. In addition, the investment manager will generally vote against any proposal to issue stock that has unequal or subordinate voting rights. The investment manager generally opposes any supermajority voting requirements as well as the payment of “greenmail.” The investment manager generally supports “fair price” provisions and confidential voting. The investment manager will review a company’s proposal to reincorporate to a different state or country on a case-by-case basis taking into consideration financial benefits such as tax treatment as well as comparing corporate governance provisions and general business laws that may result from the change in domicile.
Changes to capital structure
. The investment manager realizes that a company's financing decisions have a significant impact on its shareholders, particularly when they involve the issuance of additional shares of common or preferred stock or the assumption of additional debt. The investment manager will review, on a case-by-case basis, proposals by companies to increase authorized shares and the purpose for the increase. The investment manager will generally not vote in favor of dual-class capital structures to increase the number of authorized shares where that class of stock would have superior voting rights. The investment manager will generally vote in favor of the issuance of preferred stock in cases where the company specifies the voting, dividend, conversion and other rights of such stock and the terms of the preferred stock issuance are deemed reasonable. The investment manager will review proposals seeking preemptive rights on a case-by-case basis.
Mergers and corporate restructuring
. Mergers and acquisitions will be subject to careful review by the research analyst to determine whether they would be beneficial to shareholders. The investment manager will analyze various economic and strategic factors in making the final decision on a merger or acquisition. Corporate restructuring proposals are also subject to a thorough examination on a case-by-case basis.
Environmental and social issues
.  The investment manager considers environmental and social issues alongside traditional financial measures to provide a more comprehensive view of the value, risk and return potential of an investment. Companies may face significant financial, legal and reputational risks resulting from poor environmental and social practices, or negligent oversight of environmental or social issues. Franklin Templeton’s “Responsible Investment Principles and Policies” describes the investment manager’s approach to consideration of environmental, social and governance issues within the investment manager’s processes and ownership practices.
Shareholder proposals.
The investment manager will review shareholder proposals on a case-by-case basis and may support those that serve to enhance value or mitigate risk, are drafted appropriately, and do not disrupt the course of business or require a disproportionate or inappropriate use of company resources.
In the investment manager’s experience, those companies that are managed well are often effective in dealing with the relevant environmental and social issues that pertain to their business. As such, the investment manager will generally give management discretion with regard to environmental and social issues. However, in cases where management and the board have not demonstrated adequate efforts to mitigate material environmental or social risks, have engaged in inappropriate or illegal conduct, or have failed to adequately address current or emergent risks that threaten shareholder value, the investment manager may choose to support well-crafted shareholder proposals that serve to promote or protect shareholder value. This may include seeking appropriate disclosure regarding material environmental and social issues.
The investment manager will consider supporting a shareholder proposal seeking disclosure and greater board oversight of lobbying and corporate political contributions if the investment manager believes that there is evidence of inadequate oversight by the company’s board, if the company’s current disclosure is significantly deficient, or if the disclosure is notably lacking in comparison to the company’s peers.
Governance matters
. The investment manager generally supports the right of shareholders to call special meetings and act by written consent. However, the investment manager will review such shareholder proposals on a case-by-case basis in an effort to ensure that such proposals do not disrupt the course of business or require a disproportionate or inappropriate use of company resources.
Proxy access
. In cases where the investment manager is satisfied with company performance and the responsiveness of management, it will generally vote against shareholder proxy access proposals not supported by management. In other instances, the investment manager will consider such proposals on a case-by-case basis, taking into account factors such as the size of the company, ownership thresholds and holding periods, nomination limits (e.g., number of candidates that can be nominated), the intentions of the shareholder proponent, and shareholder base.
Global corporate governance
. Many of the tenets discussed above are applied to the investment manager's proxy voting decisions for international investments. However, the investment manager must be flexible in these worldwide markets. Principles of good corporate governance may vary by country, given the constraints of a country’s laws and acceptable practices in the markets. As a result, it is on occasion difficult to apply a consistent set of governance practices to all issuers. As experienced money managers, the investment manager's analysts are skilled in understanding the complexities of the regions in which they specialize and are trained to analyze proxy issues germane to their regions.
The investment manager will generally attempt to process every proxy it receives for all domestic and foreign securities. However, there may be situations in which the investment manager may be unable to successfully vote a proxy, or may choose not to vote a proxy, such as where: (i) a proxy ballot was not received from the custodian bank; (ii) a meeting notice was received too late; (iii) there are fees imposed upon the exercise of a vote and it is determined that such fees outweigh the benefit of voting; (iv) there are legal encumbrances to voting, including blocking restrictions in certain markets that preclude the ability to dispose of a security if the investment manager votes a proxy or where the investment manager is prohibited from voting by applicable law, economic or other sanctions, or other regulatory or market requirements, including but not limited to, effective Powers of Attorney; (v) additional documentation or the disclosure of beneficial owner details is required; (vi) the investment manager held shares on the record date but has sold them prior to the meeting date; (vii) a proxy voting service is not offered by the custodian in the market; (viii) due to either system error or human error, the investment manager’s intended vote is not correctly submitted; (ix) the investment manager believes it is not in the best interest of the Fund or its shareholders to vote the proxy for any other reason not enumerated herein; or (x) a security is subject to a securities lending or similar program that has transferred legal title to the security to another person.
In some non-U.S. jurisdictions, even if the investment manager uses reasonable efforts to vote a proxy on behalf of the Fund, such vote or proxy may be rejected because of (a) operational or procedural issues experienced by one or more third parties involved in voting proxies in such jurisdictions; (b) changes in the process or agenda for the meeting by the issuer for which the investment manager does not have sufficient notice; or (c) the exercise by the issuer of its discretion to reject the vote of the investment manager. In addition, despite the best efforts of the Proxy Group and its agents, there may be situations where the investment manager's votes are not received, or properly tabulated, by an issuer or the issuer's agent.
The investment manager or its affiliates may, on behalf of one or more of the proprietary registered investment companies advised by the investment manager or its affiliates, determine to use its best efforts to recall any security on loan where the investment manager or its affiliates (a) learn of a vote on a material event that may affect a security on loan and (b) determine that it is in the best interests of such proprietary registered investment companies to recall the security for voting purposes.
Procedures for meetings involving fixed income securities & privately held issuers
.  From time to time, certain custodians may process events for fixed income securities through their proxy voting channels rather than corporate action channels for administrative convenience. In such cases, the Proxy Group will receive ballots for such events on the ISS voting platform. The Proxy Group will solicit voting instructions from the investment manager for each Fund involved. If the Proxy Group does not receive voting instructions from the investment manager, the Proxy Group will take no action on the event. The investment manager may be unable to vote a proxy for a fixed income security, or may choose not to vote a proxy, for the reasons described above.
In the rare instance where there is a vote for a privately held issuer, the decision will generally be made by the relevant portfolio managers or research analysts.
The Proxy Group will monitor such meetings involving fixed income securities or privately held issuers for conflicts of interest in accordance with these procedures. If a fixed income or privately held issuer is flagged as a potential conflict of interest, the investment manager may nonetheless vote as it deems in the best interests of the Fund. The investment manager will report such decisions on an annual basis to the Fund board as may be required.
Shareholders may view the 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 33301-1923, Attention: Proxy Group. Copies of the Fund’s proxy voting records are available online at franklintempleton.com and posted on the SEC website at www.sec.gov. The proxy voting records are updated each year by August 31 to reflect the most recent 12-month period ended June 30
.
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and
Affiliated Purchasers.  N/A
 
 
 
Item 10
. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a) Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                                         N/A
 
 
Item 13. Exhibits.
 
(a) (1)
Code of Ethics
 
codeofethics
 
(a) (2)
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
 
section302
 
(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
 
section906
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Franklin Limited Duration Income Trust
 
 
 
By S\Matthew T. Hinkle__________________________
     Matthew T. Hinkle
     Chief Executive Officer - Finance and Administration
Date August 25, 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 August 25, 2021
 
 
By S\Robert G. Kubilis_______________________________
     Robert G. Kubilis
     Chief Financial Officer and Chief Accounting Officer
Date August 25, 2021
 
 
Code of Ethics for Principal Executives & Senior Financial Officers
 
 
Procedures
 
Revised December 19, 2014
 

FRANKLIN TEMPLETON FUNDS

 
CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND SENIOR FINANCIAL OFFICERS

I.
            
Covered Officers and Purpose of the
Code

 
This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers," each of whom is set forth in Exhibit A) of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission (“SEC”) (collectively, "FT Funds") for the purpose of promoting:
 
·
        
Honest and ethical conduct, including the ethical resolution of actual or apparent conflicts of interest between personal and professional
relationships;
·
        
Full, fair, accurate, timely and understandable disclosure in reports and documents
that a registrant files with, or submits to, the SEC and in other public communications made by or on behalf of the FT
Funds;
·
        
Compliance with applicable laws and governmental rules and
regulations;
·
        
The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code;
and
·
        
Accountability for adherence to the
Code.
 
Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
 
 
 
 
*
Rule
38a-1
under
the Investment
Company
Act
of
1940
(“1940
Act”)
and
Rule
206(4)-7
under
the
Investment
Advisers
Act
of 1940 (“Advisers Act”) (together the “Compliance Rule”) require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws (“Compliance Rule Policies and
Procedures”).
 
CONFIDENTIAL INFORMATION. This document is the proprietary product of Franklin Templeton Investments. It may NOT be distributed outside the company unless it is made subject to a non-disclosure agreement and/or such release receives authorization by an FTI Chief Compliance Officer. Any unauthorized use, reproduction or transfer of this document is strictly prohibited. Franklin Templeton Investments © 2014. All Rights
Reserved.
 

II.
            
Other Policies and
Procedures

 
This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.
 
Franklin Resources, Inc. has separately adopted the Code of Ethics and Business Conduct (“Business Conduct”), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee’s business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee
policies.
 
Additionally, the Franklin Templeton Funds have separately adopted the FTI Personal Investments and Insider Trading Policy governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.
 
Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds’ adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to
you.
 

III.
            
Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

 
Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of apposition with the FT Funds.
 
Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds’ and the investment advisers’ compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
 
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or

2


for all three), be involved in establishing policies and implementing decisions that will have different effects on the adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
 
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.
 
Each Covered Officer must:
·
        
Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the FT Funds whereby the Covered
Officer would benefit personally to the detriment of the FT
Funds;
·
        
Not cause the FT Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the FT
Funds;
·
        
Not retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated persons for reports of potential violations that are made in good
faith;
·
        
Report at least annually the following affiliations or other
relationships:
1
o
   
all directorships for public companies and all companies that are required to file reports with the
SEC;
o
   
any direct or indirect business relationship with any independent directors of
the FT
Funds;
o
   
any direct or indirect business relationship with any independent public accounting firm (which are not related to the routine issues related to the
firm’s service as the Covered Persons accountant);
and
o
   
any direct or indirect interest in any transaction with any FT Fund that will benefit the officer (not including benefits derived from the advisory, sub-advisory, distribution or service agreements with affiliates of Franklin
Resources).
These reports will be reviewed by the Legal Department for compliance with the Code.
There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include
2
:
·
        
Service as a director on the board of any public or private
Company.
 

1
 
Reporting
of
these
affiliations
or
other
relationships
shall
be
made
by
completing
the
annual
Directors
and
Officers
Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General
Counsel.
2
    
Any
activity
or
relationship
that
would
present
a
conflict
for
a
Covered Officer
may
also
present
a
conflict
for
the
Covered Officer
if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Cover Person should also obtain written approval by FT’s General Counsel in such situations.
 

3


·
        
The receipt of any gifts in excess of $100 from any person, from any corporation
or association.
·
        
The receipt of any entertainment from any Company with which the FT Funds has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise
any question of impropriety. Notwithstanding the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources General Counsel for any entertainment with a value in excess of
$1000.
·
        
Any ownership interest in, or any consulting or employment relationship with, any of
the FT Fund’s service providers, other than an investment adviser, principal underwriter, administrator or any affiliated person
thereof.
·
        
A direct or indirect financial interest in commissions, transaction charges or spreads paid by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity
ownership.
·
        
Franklin Resources General Counsel or Deputy General Counsel will provide a report
to the FT Funds Audit Committee of any approvals granted at the next regularly scheduled meeting.
 

IV.
            
Disclosure and
Compliance

·
        
Each Covered Officer should familiarize himself with the disclosure
requirements generally applicable to the FT
Funds;
·
        
Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the FT Funds to others, whether within or outside the FT Funds, including to the FT Funds’ directors and auditors, and to governmental
regulators and self-regulatory
organizations;
·
        
Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the FT Funds, the FT Fund’s adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and in other public communications made by the FT Funds;
and
·
        
It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and
regulations.
 

V.
            
Reporting and Accountability

 
Each Covered Officer must:
·
        
Upon becoming a covered officer affirm in writing to the Board that he or she has received, read, and understands the Code (see Exhibit
B);
·
        
Annually thereafter affirm to the Board that he has complied with the requirements of
the Code;
and
·
        
Notify Franklin Resources’ General Counsel or Deputy General Counsel promptly if he or she knows of any violation of this Code. Failure to do so is itself is a violation of
this

4


Code.
Franklin Resources’ General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.
3
 
However, the Independent Directors of the respective FT Funds will consider any approvals or waivers
4
 
sought by any Chief Executive Officers of the Funds.
 
The FT Funds will follow these procedures in investigating and enforcing this Code:
 
·
        
Franklin Resources General Counsel or Deputy General Counsel will take all
appropriate action to investigate any potential violations reported to the Legal
Department;
·
        
If, after such investigation, the General Counsel or Deputy General Counsel believes that no violation has occurred, The General Counsel is not required to take any
further action;
·
        
Any matter that the General Counsel or Deputy General Counsel believes is a
violation will be reported to the Independent Directors of the appropriate FT
Fund;
·
        
If the Independent Directors concur that a violation has occurred, it will inform and make a recommendation to the Board of the appropriate FT Fund or Funds, which will
consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered
Officer;
·
        
The Independent Directors will be responsible for granting waivers, as appropriate;
and
·
        
Any changes to or waivers of this Code will, to the extent required, are disclosed
as provided by SEC
rules.
5

VI.
            
Other Policies and
Procedures

 
This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund’s principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT’s Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this
Code.
 
 
 

3
 
Franklin
Resources
General
Counsel
and
Deputy
General
Counsel
are
authorized
to
consult,
as
appropriate,
with
members
of
the Audit
Committee, counsel
to
the
FT
Funds
and
counsel
to
the
Independent
Directors,
and
are
encouraged
to
do
so.
4
  
Item
2
of
Form
N-CSR
defines
"waiver"
as
"the
approval
by
the
registrant
of
a
material
departure
from
a
provision
of
the
code
of
ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.
5
   
See Part
X.

VII.
            
Amendments

 
Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the FT Funds’ Board including a majority of independent directors.

VIII.
            
Confidentiality

 
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds’ Board and their counsel.

IX.
            
Internal
Use

 
The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.
 
X.
           
Disclosure on Form
N-CSR
 
Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.
The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this
intention.
The Legal Department shall be responsible for ensuring that:
·
        
a copy of the Code is filed with the SEC as an exhibit to each Fund’s annual report;
and
·
        
any amendments to, or waivers (including implicit waivers) from, a provision of the
Code is disclosed in the registrant's annual report on Form
N-CSR.
In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N-CSR.
In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

EXHIBIT A

 
Persons Covered by the Franklin Templeton Funds Code of Ethics
July 2021
 
 

FRANKLIN GROUP OF FUNDS

 
Edward
Perks                           President and Chief Executive Officer – Investment Management
Rupert H.
Johnson,
Jr.               Chairman of the Board and Vice
President
Michael
McCarthy                      President and Chief Executive Officer – Investment Management
Sonal Desai,
Ph
D                     President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Robert
G.
Kubilis                       Chief Financial Officer and Chief Accounting Officer and
Treasurer
 
 
 

FRANKLIN MUTUAL SERIES FUNDS

 
Christian Correa                        Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and Administration
Robert
G.
Kubilis                       Chief Financial Officer and Chief Accounting
Officer
 
 

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

 
Brooks
Ritchey                          President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Robert
G.
Kubilis                       Chief Financial Officer, Chief Accounting Officer and
Treasurer
 
 
 

TEMPLETON GROUP OF FUNDS

 
Rupert H.
Johnson
Jr.                Chairman of the Board and Vice
President
Manraj
S.
Sekhon                      President and Chief Executive Officer – Investment Management
Michael Hasenstab, Ph.D.          President and Chief Executive Officer – Investment Management
Alan
Bartlett                              President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Robert
G.
Kubilis                       Chief Financial Officer, Chief Accounting Officer and
Treasurer

Exhibit B ACKNOWLEDGMENT FORM

 

Franklin Templeton Funds Code of Ethics

For Principal Executives and Senior Financial Officers
 
 

Instructions:

1.
     
Complete all sections of this
form.
2.
     
Print the completed form, sign, and
date.
3.
     
Submit completed form to FT’s General Counsel c/o Code of Ethics Administration within 10
4.
     
days of becoming a Covered Officer and by February 15
th
of each subsequent
year.
 
E-mail:      Code of Ethics Inquiries & Requests (internal address);
lpreclear@franklintempleton.com
(external
address)
 
 
Covered Officer’s Name:
 
Title:
 
Department:
 
Location:
 
Certification for Year Ending:
 
 
 
To: Franklin Resources General Counsel, Legal Department
 
I acknowledge receiving, reading and understanding the Franklin Templeton Fund’s Code of Ethics for Principal Executive Officers and Senior Financial Officers (the “Code”). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.
 
 
 
 

Signature
 
Date signed
 
 
 
I, Matthew T. Hinkle, certify that:
 
1. I have reviewed this report on Form N-CSR of Franklin Limited Duration Income Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
8/25/2021
 
 
 
S\MATTHEW T. HINKLE
 
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
 

 
 
I, Robert G. Kubilis, certify that:
 
1. I have reviewed this report on Form N-CSR of Franklin Limited Duration Income Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
8/25/2021
 
 
 
S\ROBERT G. KUBILIS
 
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Matthew T. Hinkle, Chief Executive Officer of the Franklin Limited Duration Income Trust (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                  
The periodic report on Form N-CSR of the Registrant for the period ended 6/30/2021 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                  
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  8/25/2021
 
                                                S\MATTHEW T. HINKLE
                                                                                                           
                                                Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
                        

 
 
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Robert G. Kubilis, Chief Financial Officer of the Franklin Limited Duration Income Trust (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                  
The periodic report on Form N-CSR of the Registrant for the period ended 6/30/2021 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                  
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  8/25/2021
 
                                                S\ROBERT G. KUBILIS
                                                                                                           
                                                Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer