<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 18
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<PAGE> PAGE 19
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072 H000300 0
072 I000300 30
072 J000300 0
072 K000300 8
072 L000300 2
072 M000300 0
072 N000300 32
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 4
072 S000300 5
072 T000300 157
072 U000300 14
072 V000300 0
072 W000300 11
072 X000300 325
072 Y000300 44
072 Z000300 766
<PAGE> PAGE 20
072AA000300 1255
072BB000300 612
072CC010300 0
072CC020300 1093
072DD010300 351
072DD020300 293
072EE000300 896
073 A010300 0.3840
073 A020300 0.3233
073 B000300 0.4880
073 C000300 0.0000
074 A000300 24
074 B000300 276
074 C000300 0
074 D000300 0
074 E000300 0
074 F000300 42294
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
074 L000300 255
074 M000300 47
074 N000300 42896
074 O000300 260
074 P000300 86
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 20
074 S000300 0
074 T000300 42530
074 U010300 2138
074 U020300 1831
074 V010300 10.77
074 V020300 10.65
074 W000300 0.0000
074 X000300 2716
074 Y000300 0
075 A000300 0
075 B000300 24958
076 000300 0.00
SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES JULY 31, 1998 ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN TEMPLETON CONSERVATIVE TARGET FUND - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 20,541,525
<INVESTMENTS-AT-VALUE> 20,324,742
<RECEIVABLES> 1,469,148
<ASSETS-OTHER> 111,027
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 21,904,917
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 49,856
<TOTAL-LIABILITIES> 49,856
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,684,241
<SHARES-COMMON-STOCK> 1,057,811
<SHARES-COMMON-PRIOR> 148,049
<ACCUMULATED-NII-CURRENT> 132,272
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 255,331
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (216,783)
<NET-ASSETS> 21,855,061
<DIVIDEND-INCOME> 575,613
<INTEREST-INCOME> 8,158
<OTHER-INCOME> 0
<EXPENSES-NET> (141,801)
<NET-INVESTMENT-INCOME> 441,970
<REALIZED-GAINS-CURRENT> 299,473
<APPREC-INCREASE-CURRENT> (426,817)
<NET-CHANGE-FROM-OPS> 314,626
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (117,143)
<DISTRIBUTIONS-OF-GAINS> (24,813)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,389,033
<NUMBER-OF-SHARES-REDEEMED> (497,910)
<SHARES-REINVESTED> 18,639
<NET-CHANGE-IN-ASSETS> 17,236,230
<ACCUMULATED-NII-PRIOR> 21,261
<ACCUMULATED-GAINS-PRIOR> 12,003
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (31,017)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (180,325)
<AVERAGE-NET-ASSETS> 12,406,336
<PER-SHARE-NAV-BEGIN> 10.870
<PER-SHARE-NII> 0.390
<PER-SHARE-GAIN-APPREC> 0.180
<PER-SHARE-DIVIDEND> (0.380)
<PER-SHARE-DISTRIBUTIONS> (0.060)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.000
<EXPENSE-RATIO> 0.760<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
<FN>
<F1>EXPENSE RATIO EXCLUDING WAIVER 1.07%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES JULY 31, 1998 ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN TEMPLETON CONSERVATIVE TARGET FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 20,541,525
<INVESTMENTS-AT-VALUE> 20,324,742
<RECEIVABLES> 1,469,148
<ASSETS-OTHER> 111,027
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 21,904,917
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 49,856
<TOTAL-LIABILITIES> 49,856
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,684,241
<SHARES-COMMON-STOCK> 935,350
<SHARES-COMMON-PRIOR> 278,499
<ACCUMULATED-NII-CURRENT> 132,272
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 255,331
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (216,783)
<NET-ASSETS> 21,855,061
<DIVIDEND-INCOME> 575,613
<INTEREST-INCOME> 8,158
<OTHER-INCOME> 0
<EXPENSES-NET> (141,801)
<NET-INVESTMENT-INCOME> 441,970
<REALIZED-GAINS-CURRENT> 299,473
<APPREC-INCREASE-CURRENT> (426,817)
<NET-CHANGE-FROM-OPS> 314,626
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (162,713)
<DISTRIBUTIONS-OF-GAINS> (31,332)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 734,164
<NUMBER-OF-SHARES-REDEEMED> (95,223)
<SHARES-REINVESTED> 17,910
<NET-CHANGE-IN-ASSETS> 17,236,230
<ACCUMULATED-NII-PRIOR> 21,261
<ACCUMULATED-GAINS-PRIOR> 12,003
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (31,017)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (180,325)
<AVERAGE-NET-ASSETS> 12,406,336
<PER-SHARE-NAV-BEGIN> 10.810
<PER-SHARE-NII> 0.330
<PER-SHARE-GAIN-APPREC> 0.150
<PER-SHARE-DIVIDEND> (0.310)
<PER-SHARE-DISTRIBUTIONS> (0.060)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.920
<EXPENSE-RATIO> 1.500<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
<FN>
<F1>EXPENSE RATIO EXCLUDING WAIVER 1.81%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES JULY 31, 1998 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> FRANKLIN TEMPLETON GROWTH TARGET FUND - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 48,643,594
<INVESTMENTS-AT-VALUE> 47,765,485
<RECEIVABLES> 929,233
<ASSETS-OTHER> 69,305
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 48,764,023
<PAYABLE-FOR-SECURITIES> 790,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 179,846
<TOTAL-LIABILITIES> 969,846
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 47,835,075
<SHARES-COMMON-STOCK> 2,422,453
<SHARES-COMMON-PRIOR> 850,786
<ACCUMULATED-NII-CURRENT> 155,461
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 681,750
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (878,109)
<NET-ASSETS> 47,794,177
<DIVIDEND-INCOME> 1,066,032
<INTEREST-INCOME> 8,318
<OTHER-INCOME> 0
<EXPENSES-NET> (329,502)
<NET-INVESTMENT-INCOME> 744,848
<REALIZED-GAINS-CURRENT> 1,002,779
<APPREC-INCREASE-CURRENT> (1,648,322)
<NET-CHANGE-FROM-OPS> 99,305
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (373,894)
<DISTRIBUTIONS-OF-GAINS> (184,015)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,871,216
<NUMBER-OF-SHARES-REDEEMED> (351,545)
<SHARES-REINVESTED> 51,996
<NET-CHANGE-IN-ASSETS> 33,423,753
<ACCUMULATED-NII-PRIOR> 37,571
<ACCUMULATED-GAINS-PRIOR> 12,012
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (76,453)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (400,003)
<AVERAGE-NET-ASSETS> 30,586,230
<PER-SHARE-NAV-BEGIN> 11.330
<PER-SHARE-NII> 0.330
<PER-SHARE-GAIN-APPREC> (0.050)
<PER-SHARE-DIVIDEND> (0.300)
<PER-SHARE-DISTRIBUTIONS> (0.150)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.160
<EXPENSE-RATIO> 0.750<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
<FN>
<F1> EXPENSE RATIO EXCLUDING WAIVER 0.98%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES JULY 31, 1998 ANNUAL REPORT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 022
<NAME> FRANKLIN TEMPLETON GROWTH TARGET FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 48,643,594
<INVESTMENTS-AT-VALUE> 47,765,485
<RECEIVABLES> 929,233
<ASSETS-OTHER> 69,305
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 48,764,023
<PAYABLE-FOR-SECURITIES> 790,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 179,846
<TOTAL-LIABILITIES> 969,846
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 47,835,075
<SHARES-COMMON-STOCK> 1,872,304
<SHARES-COMMON-PRIOR> 418,893
<ACCUMULATED-NII-CURRENT> 155,461
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 681,750
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (878,109)
<NET-ASSETS> 47,794,177
<DIVIDEND-INCOME> 1,066,032
<INTEREST-INCOME> 8,318
<OTHER-INCOME> 0
<EXPENSES-NET> (329,502)
<NET-INVESTMENT-INCOME> 744,848
<REALIZED-GAINS-CURRENT> 1,002,779
<APPREC-INCREASE-CURRENT> (1,648,322)
<NET-CHANGE-FROM-OPS> 99,305
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (263,042)
<DISTRIBUTIONS-OF-GAINS> (149,026)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,595,204
<NUMBER-OF-SHARES-REDEEMED> (180,003)
<SHARES-REINVESTED> 38,210
<NET-CHANGE-IN-ASSETS> 33,423,753
<ACCUMULATED-NII-PRIOR> 37,571
<ACCUMULATED-GAINS-PRIOR> 12,012
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (76,453)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (400,003)
<AVERAGE-NET-ASSETS> 30,586,230
<PER-SHARE-NAV-BEGIN> 11.300
<PER-SHARE-NII> 0.240
<PER-SHARE-GAIN-APPREC> (0.050)
<PER-SHARE-DIVIDEND> (0.260)
<PER-SHARE-DISTRIBUTIONS> (0.150)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 11.080
<EXPENSE-RATIO> 1.500<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
<FN>
<F1> EXPENSE RATIO EXCLUDING WAIVER 1.73%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES JULY 31, 1998 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 031
<NAME> FRANKLIN TEMPLETON MODERATE TARGET FUND - CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 42,741,822
<INVESTMENTS-AT-VALUE> 42,293,739
<RECEIVABLES> 531,693
<ASSETS-OTHER> 70,704
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 42,896,136
<PAYABLE-FOR-SECURITIES> 260,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 106,491
<TOTAL-LIABILITIES> 366,491
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 42,387,075
<SHARES-COMMON-STOCK> 2,137,514
<SHARES-COMMON-PRIOR> 577,198
<ACCUMULATED-NII-CURRENT> 187,741
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 402,912
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (448,083)
<NET-ASSETS> 42,529,645
<DIVIDEND-INCOME> 1,039,682
<INTEREST-INCOME> 7,551
<OTHER-INCOME> 0
<EXPENSES-NET> (281,309)
<NET-INVESTMENT-INCOME> 765,924
<REALIZED-GAINS-CURRENT> 642,901
<APPREC-INCREASE-CURRENT> (1,093,493)
<NET-CHANGE-FROM-OPS> 315,332
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (351,014)
<DISTRIBUTIONS-OF-GAINS> (429,281)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,909,614
<NUMBER-OF-SHARES-REDEEMED> (422,808)
<SHARES-REINVESTED> 73,510
<NET-CHANGE-IN-ASSETS> 31,336,691
<ACCUMULATED-NII-PRIOR> 55,548
<ACCUMULATED-GAINS-PRIOR> 655,869
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (62,386)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (324,854)
<AVERAGE-NET-ASSETS> 24,958,213
<PER-SHARE-NAV-BEGIN> 11.260
<PER-SHARE-NII> 0.370<F1>
<PER-SHARE-GAIN-APPREC> 0.010<F1>
<PER-SHARE-DIVIDEND> (0.380)<F1>
<PER-SHARE-DISTRIBUTIONS> (0.490)<F1>
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.770
<EXPENSE-RATIO> 0.770<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
<FN>
<F1>PER SHARE AMOUNTS HAVE BEEN CALCULATED USING THE DAILY AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
<F2>EXPENSE RATIO EXCLUDING WAIVER 0.94%
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES JULY 31, 1998 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 032
<NAME> FRANKLIN TEMPLETON MODERATE TARGET FUND - CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 42,741,822
<INVESTMENTS-AT-VALUE> 42,293,739
<RECEIVABLES> 531,693
<ASSETS-OTHER> 70,704
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 42,896,136
<PAYABLE-FOR-SECURITIES> 260,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 106,491
<TOTAL-LIABILITIES> 366,491
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 42,387,075
<SHARES-COMMON-STOCK> 1,830,957
<SHARES-COMMON-PRIOR> 420,721
<ACCUMULATED-NII-CURRENT> 187,741
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 402,912
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (448,083)
<NET-ASSETS> 42,529,645
<DIVIDEND-INCOME> 1,039,682
<INTEREST-INCOME> 7,551
<OTHER-INCOME> 0
<EXPENSES-NET> (281,309)
<NET-INVESTMENT-INCOME> 765,924
<REALIZED-GAINS-CURRENT> 642,901
<APPREC-INCREASE-CURRENT> (1,093,493)
<NET-CHANGE-FROM-OPS> 315,332
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (292,695)
<DISTRIBUTIONS-OF-GAINS> (466,577)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,492,882
<NUMBER-OF-SHARES-REDEEMED> (155,840)
<SHARES-REINVESTED> 73,194
<NET-CHANGE-IN-ASSETS> 31,336,691
<ACCUMULATED-NII-PRIOR> 55,548
<ACCUMULATED-GAINS-PRIOR> 655,869
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (62,386)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (324,854)
<AVERAGE-NET-ASSETS> 24,958,213
<PER-SHARE-NAV-BEGIN> 11.160
<PER-SHARE-NII> 0.300<F1>
<PER-SHARE-GAIN-APPREC> 0.000<F1>
<PER-SHARE-DIVIDEND> (0.320)<F1>
<PER-SHARE-DISTRIBUTIONS> (0.490)<F1>
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.650
<EXPENSE-RATIO> 1.500<F2>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
<FN>
<F1>PER SHARE AMOUNTS HAVE BEEN CALCULATED USING THE DAILY AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
<F2>EXPENSE RATIO EXCLUDING WAIVER 1.68%
</FN>
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Franklin Templeton Fund Allocator Series
In planning and performing our audit of the financial
statements of Franklin Templeton Fund Allocator Series for
the year ended July 31, 1998, we considered its internal
control, including controls over safeguarding securities, in
order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of Franklin Templeton Fund Allocator Series
is responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected
benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external
purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal control, errors
or irregularities may occur and may not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of any specific internal control component does
not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation
to the financial statements being audited may occur and not
be detected within a timely period by employees in the
normal course of performing their assigned functions.
However, we noted no matters involving internal control,
including controls over safeguarding securities that we
consider to be material weaknesses as defined above as of
July 31, 1998.
This report is intended solely for the information and use
of management and the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
San Francisco, California
September 8, 1998
