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SIGNATURE LAURA FERGERSON
TITLE ASST-TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN FLOATING RATE TRUST JULY 31, 1998 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> FRANKLIN FLOATING RATE TRUST
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 145,402,223
<INVESTMENTS-AT-VALUE> 145,585,480
<RECEIVABLES> 21,537,358
<ASSETS-OTHER> 1,512,322
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 168,635,160
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 98,210
<TOTAL-LIABILITIES> 98,210
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 168,333,532
<SHARES-COMMON-STOCK> 16,784,008
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20,161
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 168,536,950
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,106,613
<OTHER-INCOME> 0
<EXPENSES-NET> (735,364)
<NET-INVESTMENT-INCOME> 3,370,979
<REALIZED-GAINS-CURRENT> 20,161
<APPREC-INCREASE-CURRENT> 183,257
<NET-CHANGE-FROM-OPS> 3,574,397
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,370,979)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,956,054
<NUMBER-OF-SHARES-REDEEMED> (224,698)
<SHARES-REINVESTED> 52,652
<NET-CHANGE-IN-ASSETS> 168,536,950
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 445,016
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (981,054)
<AVERAGE-NET-ASSETS> 68,826,800
<PER-SHARE-NAV-BEGIN> 10.000
<PER-SHARE-NII> .480
<PER-SHARE-GAIN-APPREC> .040
<PER-SHARE-DIVIDEND> .000
<PER-SHARE-DISTRIBUTIONS> .480
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.040
<EXPENSE-RATIO> 1.320<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
<FN>
<F1>ANNUALIZED; EXPENSE RATIO EXCLUDING WAIVER 1.76%
</TABLE>
FRANKLIN FLOATING RATE TRUST
Independent Auditor's Report
To the Shareholders and Board of Trustees
of the Franklin Floating Rate Trust:
We have audited the accompanying statements of assets and
Liabilities of the Franklin Floating Rate Trust (the Fund),
including the Fund's statement of investments, as of July 31, 1998,
and the related statements of operations, changes in net assets,
cash flows, and the financial highlights for the period October 10,
1997 (effective date) to July 31,1998. These financial statements
and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned as of July 31, 1998, by correspondence with
the custodians. An audit also includes assessing the accounting
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the Franklin Floating Rate Trust as of
July 31, 1998, the results of its operations, the changes in its
net assets, its cash flows, and its financial highlights for the
period October 10, 1997 (effective date) to July 31, 1998, in
conformity with generally accepted accounting principles.
PricewaterhouseCoopers LLP
San Francisco, California
September 4, 1998
