<SEC-DOCUMENT>0001233087-18-000045.txt : 20181129
<SEC-HEADER>0001233087-18-000045.hdr.sgml : 20181129
<ACCEPTANCE-DATETIME>20181129152502
ACCESSION NUMBER:		0001233087-18-000045
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180930
FILED AS OF DATE:		20181129
DATE AS OF CHANGE:		20181129
EFFECTIVENESS DATE:		20181129

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRANKLIN LTD DURATION INCOME TRUST
		CENTRAL INDEX KEY:			0001233087
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21357
		FILM NUMBER:		181208337

	BUSINESS ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403
		BUSINESS PHONE:		650-312-2000

	MAIL ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FRANKLIN TEMPLETON LTD DURATION INCOME TRUST
		DATE OF NAME CHANGE:	20060111

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST
		DATE OF NAME CHANGE:	20030718

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FRANKLIN TEMPLETON STRATEGIC INCOME TRUST
		DATE OF NAME CHANGE:	20030515
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>fldit_nqwrappagepe093018sec.htm
<DESCRIPTION>FLDIT NQ PE:09-30-18
<TEXT>

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<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, DC 20549</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">FORM N-Q</FONT></B></P>

<P style="MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">REGISTERED MANAGEMENT INVESTMENT COMPANY</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT></B>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">Investment Company Act file number </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">811-21357</FONT></U></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Franklin Limited Duration Income Trust</FONT></U></P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">(Exact name of registrant as specified in charter)</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">One Franklin Parkway, San Mateo, CA 94403-1906</FONT></U><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"> </FONT></P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">(Address of principal executive offices) (Zip code)</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<H1 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><U><FONT style="FONT-SIZE: 10pt; FONT-WEIGHT: normal" color=#454545 face="Courier New">Craig S. Tyle, One Franklin Parkway, San Mateo, CA&nbsp; 94403-1906</FONT></U></H1>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">(Name and address of agent for service)</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">Registrant's telephone number, including area code: </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">(650) 312-2000</FONT></U></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">Date of fiscal year end: </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">&nbsp;&nbsp;12/31&nbsp;&nbsp;&nbsp; </FONT></U></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">Date of reporting period: </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">&nbsp;9/30/18&nbsp; </FONT></U></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; TEXT-AUTOSPACE: ideograph-numeric" face="courier new"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Item 1. Schedule of Investments.</FONT></B></P></DIV>

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<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT></P>

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<TR>

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   <TD style="TEXT-INDENT: 1.632pt" align=left><B><FONT size=3 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Statement of Investments, September 30, 2018 (unaudited)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

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   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Shares/</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Units/</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Warrants</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Common Stocks and Other Equity Interests 1.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Commercial &amp; Professional Services 0.3%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b,c </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Remington Outdoor Co. Inc</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>39,306</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>665,803</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b,c </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Remington Outdoor Co. Inc., Litigation Units</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,700</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>665,803</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Energy 0.8%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Birch Permian Holdings Inc</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>41,589</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>478,274</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Energy XXI Gulf Coast Inc., wts., 12/30/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,004</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Halcon Resources Corp</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>67,554</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>301,966</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Halcon Resources Corp., wts., 9/09/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,408</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>641</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Midstates Petroleum Co. Inc</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>372</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,315</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Midstates Petroleum Co. Inc., wts., 4/21/20.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,642</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b,c </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Nine Point Energy LLC</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>21,663</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>295,010</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Riviera Resources Inc</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,592</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>141,398</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Roan Resources Inc</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,592</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>117,667</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Samson Resources II LLC</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>31,225</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>759,548</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,097,824</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Materials 0.1%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Verso Corp., A.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,163</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>140,168</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Verso Corp., wts., 7/25/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>438</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,037</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>145,205</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Pharmaceuticals, Biotechnology &amp; Life Sciences 0.0%</FONT></B><B><SUP><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&#8224;</FONT></SUP></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.559pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Concordia International Corp</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,236</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>66,047</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Transportation 0.0%</FONT></B><B><SUP><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&#8224;</FONT></SUP></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.984pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CEVA Logistics AG</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Switzerland</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,641</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>67,982</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Common Stocks and Other Equity Interests</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Cost $7,888,991)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,042,861</FONT></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Convertible Preferred Stocks (Cost $377,604) 0.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Energy 0.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b,c </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Nine Point Energy Holdings Inc., cvt. pfd</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>404</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>604,110</FONT></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds 55.3%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Automobiles &amp; Components 1.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Fiat Chrysler Automobiles NV, senior note, 4.50%, 4/15/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Kingdom</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,511,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>The Goodyear Tire &amp; Rubber Co.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 5.00%, 5/31/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>660,800</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.125%, 11/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,472,800</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Banks 1.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CIT Group Inc., senior note, 5.25%, 3/07/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>409,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>e </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Citigroup Inc., junior sub. bond, M, 6.30% to 5/15/24, FRN thereafter,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Perpetual</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,329,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.56pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>e </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>JPMorgan Chase &amp; Co., junior sub. bond, R, 6.00% to 8/01/23, FRN thereafter,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Perpetual</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,561,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.608pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Royal Bank of Scotland Group PLC, sub. note, 6.125%, 12/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Kingdom</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,046,890</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,347,015</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Quarterly Statement of Investments | See Notes to Statements of Investments. | 1</FONT></P>

<HR align=center SIZE=2 width="100%" noShade>



<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_3"></A><BR>

<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="58%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Capital Goods 3.4%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>BBA U.S. Holdings Inc., senior note, 144A, 5.375%, 5/01/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>402,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>462,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CNH Industrial Capital LLC, senior note, 3.875%, 10/15/21.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>999,703</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>H&amp;E Equipment Services Inc., senior note, 5.625%, 9/01/25.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>HD Supply Inc., senior note, 144A, 5.75% to 4/15/19, 7.00% thereafter,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>421,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Jeld-Wen Inc., senior note, 144A, 4.625%, 12/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>555,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>g </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Onsite Rental Group Operations Pty. Ltd., secured note, PIK, 6.10%, 10/26/23 .</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Australia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>952,561</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>738,235</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Stevens Holding Co. Inc., senior note, 144A, 6.125%, 10/01/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,100,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,120,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Tennant Co., senior note, 5.625%, 5/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>814,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Terex Corp., senior note, 144A, 5.625%, 2/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>497,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Vertiv Group Corp., senior note, 144A, 9.25%, 10/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,600,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,672,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8,483,563</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Commercial &amp; Professional Services 0.9%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Multi-Color Corp., senior note, 144A, 4.875%, 11/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>843,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Rentals North America Inc., senior bond, 5.875%, 9/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>618,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>West Corp., senior note, 144A, 8.50%, 10/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>922,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,384,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Consumer Durables &amp; Apparel 1.8%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Beazer Homes USA Inc., senior note, 8.75%, 3/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,378,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Hanesbrands Inc., senior note, 144A, 4.625%, 5/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>976,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>KB Home, senior note, 7.00%, 12/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,100,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,163,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Taylor Morrison Communities Inc./Taylor Morrison Holdings II Inc., senior note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>144A, 5.875%, 4/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,012,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,530,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Consumer Services 3.4%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1011778 BC ULC/New Red Finance Inc., senior secured note, first lien, 144A,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4.25%, 5/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>761,304</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>24 Hour Holdings III LLC, senior note, 144A, 8.00%, 6/01/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,007,760</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ascend Learning LLC, senior note, 144A, 6.875%, 8/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>506,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Boyne USA Inc., secured note, second lien, 144A, 7.25%, 5/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,275,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Downstream Development Authority of the Quapaw Tribe of Oklahoma,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>secured note, 144A, 10.50%, 2/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>411,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, senior</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>note, 144A, 5.00%, 6/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,392,132</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>MGM Resorts International, senior note, 8.625%, 2/01/19</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,020,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Stars Group Holdings BV/Stars Group U.S. Co-Borrower LLC, senior note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>144A, 7.00%, 7/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>517,095</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5.50%, 3/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>871,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Wynn Macau Ltd., senior note, 144A, 4.875%, 10/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Macau</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>755,332</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8,517,748</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Diversified Financials 2.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Aircastle Ltd., senior note, 4.125%, 5/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>687,265</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FirstCash Inc., senior note, 144A, 5.375%, 6/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>909,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Lincoln Finance Ltd., senior secured note, 144A, 7.375%, 4/15/21.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Netherlands</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,036,330</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Navient Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 5.00%, 10/26/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>202,962</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 5.875%, 3/25/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>205,400</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.625%, 7/26/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>731,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.50%, 6/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>208,000</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|2</FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_4"></A><BR>

<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="57%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Diversified Financials </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Navient Corp., (continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 7.25%, 9/25/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,100,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,171,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,151,957</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Energy 6.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Aker BP ASA, senior note, 144A, 5.875%, 3/31/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Norway</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,035,652</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>California Resources Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.539pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>secured note, second lien, 144A, 8.00%, 12/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>824,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>787,950</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 5.50%, 9/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>37,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>34,318</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7.75%, 4/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,005,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Cheniere Corpus Christi Holdings LLC,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 7.00%, 6/30/24.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>768,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 5.875%, 3/31/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>631,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Cheniere Energy Partners LP,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.539pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.625%, 10/01/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>403,380</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.014pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 5.25%, 10/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,002,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.25%, 4/01/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,554,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CSI Compressco LP/CSI Compressco Finance Inc., senior note, 7.25%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>374,400</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Diamondback Energy Inc., senior note, 144A, 4.75%, 11/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>903,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Energy Transfer Equity LP, senior bond, first lien, 7.50%, 10/15/20.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,609,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.328pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f,g </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>EnQuest PLC, senior note, 144A, PIK, 7.00%, 4/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Kingdom</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,147,777</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,077,344</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ferrellgas LP/Ferrellgas Finance Corp., senior note, 6.75%, 6/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>672,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7.25%, 2/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>902,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.328pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f,g </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Murray Energy Corp., 1.5 lien, 144A, PIK, 12.00% (incl. cash 9.00%), 4/15/24 .</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>592,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>399,600</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>QEP Resources Inc., senior bond, 5.25%, 5/01/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>489,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sanchez Energy Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 7.75%, 6/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>634,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.125%, 1/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>174,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sunoco LP/Sunoco Finance Corp., senior note, 144A, 4.875%, 1/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>694,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Weatherford International Ltd.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 5.125%, 9/15/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>399,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 7.75%, 6/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>996,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 4.50%, 4/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>352,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>16,902,144</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Food, Beverage &amp; Tobacco 1.5%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>B&amp;G Foods Inc., senior note, 5.25%, 4/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>961,060</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Cott Holdings Inc., senior note, 144A, 5.50%, 4/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,272,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Lamb Weston Holdings Inc., senior note, 144A, 4.625%, 11/01/24.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,100,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,080,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Post Holdings Inc., senior note, 144A, 5.50%, 3/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>398,300</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,712,485</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Health Care Equipment &amp; Services 4.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Avantor Inc., senior secured note, first lien, 144A, 6.00%, 10/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>610,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Catalent Pharma Solutions Inc., senior note, 144A, 4.875%, 1/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,161,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Centene Corp., senior note, 144A, 5.375%, 6/01/26.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,027,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CHS/Community Health Systems Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.539pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 8.125%, 6/30/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>756,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 6.25%, 3/31/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>667,625</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|3</FONT></P>

<HR align=center SIZE=2 width="100%" noShade>



<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_5"></A><BR>

<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="57%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Health Care Equipment &amp; Services </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>HCA Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 5.875%, 5/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>528,125</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 7.50%, 2/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>548,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured bond, first lien, 5.875%, 3/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,062,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 6/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,354,600</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Tenet Healthcare Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 5.50%, 3/01/19</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>909,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 6.00%, 10/01/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>516,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>WellCare Health Plans Inc., senior note, 144A, 5.375%, 8/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,020,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>10,162,475</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Materials 8.9%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>g </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>ARD Finance SA, secured note, PIK, 7.125%, 9/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Luxembourg</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>609,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 4.25%, 9/15/22.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Luxembourg</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>294,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 6.00%, 2/15/25.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Luxembourg</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>491,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>BWAY Holding Co., secured note, 144A, 5.50%, 4/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,478,385</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Cemex SAB de CV, senior secured bond, 144A, 7.75%, 4/16/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Mexico</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>438,550</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>The Chemours Co., senior note, 6.625%, 5/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>776,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>812,542</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Crown Americas LLC/Crown Americas Capital Corp., senior note, 144A,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4.75%, 2/01/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>480,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Eldorado Gold Corp., senior note, 144A, 6.125%, 12/15/20.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>762,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>First Quantum Minerals Ltd.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 7.00%, 2/15/21.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Zambia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>961,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>951,991</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 7.25%, 4/01/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Zambia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>477,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FMG Resources (August 2006) Pty. Ltd.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 4.75%, 5/15/22.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Australia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>692,069</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.125%, 3/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Australia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>588,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Grinding Media Inc./MC Grinding Media Canada Inc., senior secured note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>144A, 7.375%, 12/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>834,592</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>HudBay Minerals Inc., senior note, 144A, 7.25%, 1/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>413,044</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>New Enterprise Stone &amp; Lime Co., senior note, 144A, 6.25%, 3/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>808,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.356pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>c </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>New Gold Inc., senior note, 144A, 6.375%, 5/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>502,617</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Northwest Acquisitions ULC/Dominion Finco Inc., secured note, second lien,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>144A, 7.125%, 11/01/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>307,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Novelis Corp., senior note, 144A, 6.25%, 8/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,329,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>OCI NV, senior note, 144A, 6.625%, 4/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Netherlands</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>416,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Owens-Brockway Glass Container Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.00%, 1/15/22.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>911,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.875%, 8/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>413,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Petra Diamonds U.S. Treasury PLC, secured note, second lien, 144A, 7.25%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5/01/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>South Africa</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>684,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>917,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Platform Specialty Products Corp., senior note, 144A, 6.50%, 2/01/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>615,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Issuer Luxembourg SA,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.014pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 7.00%, 7/15/24.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>100,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>101,937</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=center><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 144A, 5.125%, 7/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>398,300</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.014pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>h </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 144A, FRN, 5.839%, (3-month USD LIBOR</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; + 3.50%), 7/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>406,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sealed Air Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 144A, 5.125%, 12/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>505,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 144A, 5.50%, 9/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>614,250</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|4</FONT></P>

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<!--$$/page=--><A name="page_6"></A><BR>

<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="57%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

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   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Materials </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Steel Dynamics Inc., senior note, 5.125%, 10/01/21.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,518,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Summit Materials LLC/Summit Materials Finance Corp., senior note, 8.50%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,279,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., senior</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>note, 144A, 7.50%, 6/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,342,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>22,396,777</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Media &amp; Entertainment 5.4%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Altice Luxembourg SA, senior secured note, 144A, 7.75%, 5/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Luxembourg</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,172,400</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Altice U.S. Finance I Corp., senior secured bond, 144A, 5.50%, 5/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>999,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>AMC Networks Inc., senior note, 5.00%, 4/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>987,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CCO Holdings LLC/CCO Holdings Capital Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 5.25%, 9/30/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,521,990</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.539pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.125%, 5/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>503,275</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Clear Channel Worldwide Holdings Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.50%, 11/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>717,759</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior sub. note, 7.625%, 3/15/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>805,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CSC Holdings LLC,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.75%, 11/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,056,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 5.25%, 6/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>490,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Netflix Inc., senior note, 5.50%, 2/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,553,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Nexstar Broadcasting Inc., senior note, 144A, 5.625%, 8/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>490,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Virgin Media Secured Finance PLC,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured bond, first lien, 144A, 5.50%, 1/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Kingdom</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,100,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,102,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured bond, first lien, 144A, 5.50%, 8/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Kingdom</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>397,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>WMG Acquisition Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>secured note, first lien, 144A, 5.00%, 8/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>100,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>100,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.625%, 4/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,806,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,837,605</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>13,735,529</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Pharmaceuticals, Biotechnology &amp; Life Sciences 2.5%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Bausch Health Cos. Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.625%, 12/01/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 9.25%, 4/01/26.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,621,875</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior secured note, first lien, 144A, 6.50%, 3/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>208,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Concordia International Corp., senior secured note, first lien, 8.00%, 9/06/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>323,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>317,347</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Endo DAC/Endo Finance LLC/Endo Finco Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 144A, 6.00%, 2/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>867,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 6.00%, 7/15/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>446,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Horizon Pharma Inc., senior note, 6.625%, 5/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,230,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>144A, 6.375%, 8/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,212,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,402,972</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Real Estate 2.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CyrusOne LP/CyrusOne Finance Corp., senior note, 5.00%, 3/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,327,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Equinix Inc., senior bond, 5.875%, 1/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>309,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Five Point Operating Co. LP/Five Point Capital Corp., senior note, 144A,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7.875%, 11/15/25.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,012,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>MPT Operating Partnership LP/MPT Finance Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 5.25%, 8/01/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 6.375%, 3/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>738,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>SBA Communications Corp., senior note, 4.00%, 10/01/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,400,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,380,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,068,500</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|5</FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_7"></A><BR>

<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="54%"></TD>

   <TD width="17%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Retailing 0.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Penske Automotive Group Inc., senior sub. note, 3.75%, 8/15/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,400,000</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,396,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>PetSmart Inc., senior note, 144A, 7.125%, 3/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>506,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,903,125</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Semiconductors &amp; Semiconductor Equipment 0.4%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Qorvo Inc., senior note, 144A, 5.50%, 7/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>900,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>915,867</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Software &amp; Services 1.8%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>First Data Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.014pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>secured note, first lien, 144A, 5.00%, 1/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,716,150</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>secured note, second lien, 144A, 5.75%, 1/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>508,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Infor (U.S.) Inc., senior note, 6.50%, 5/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,833,390</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Symantec Corp., senior note, 144A, 5.00%, 4/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>596,098</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,653,888</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Technology Hardware &amp; Equipment 1.5%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Blackboard Inc., secured note, second lien, 144A, 9.75%, 10/15/21.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,538,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,218,865</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Dell International LLC/EMC Corp., senior note, 144A, 5.875%, 6/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>413,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Itron Inc., senior note, 144A, 5.00%, 1/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,443,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Tempo Acquisition LLC/Tempo Acquisition Finance Corp., senior note, 144A,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 6/01/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>780,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,855,615</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Telecommunication Services 2.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Block Communications Inc., senior note, 144A, 6.875%, 2/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>309,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Digicel Group Ltd., senior note, 144A, 8.25%, 9/30/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Bermuda</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>916,007</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Digicel Ltd., senior note, 144A, 6.00%, 4/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Bermuda</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>651,112</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>DKT Finance ApS, senior secured note, first lien, 144A, 9.375%, 6/17/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Denmark</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,056,240</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d,f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sprint Communications Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 9.00%, 11/15/18</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>148,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>149,103</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 7.00%, 3/01/20.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>624,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sprint Corp.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 7.125%, 6/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>312,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 7.25%, 9/15/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>529,375</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, senior secured bond,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.089pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>first lien, 144A, 4.738%, 9/20/29</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,003,265</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>T-Mobile USA Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 6.50%, 1/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>520,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 4.00%, 4/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>700,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>698,687</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,769,789</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Transportation 0.9%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Avolon Holdings Funding Ltd., senior note, 144A, 5.125%, 10/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ireland</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,008,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>DAE Funding LLC,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 4.00%, 8/01/20.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Arab Emirates</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>799,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.062pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 4.50%, 8/01/22.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United Arab Emirates</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>400,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>395,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,203,250</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Utilities 2.1%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.05pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Calpine Corp., senior note, 5.375%, 1/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,415,625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.097pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Clearway Energy Operating LLC,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.014pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 5.375%, 8/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>505,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.014pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior bond, 5.00%, 9/15/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>962,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18.127pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f,i </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>senior note, 144A, 5.75%, 10/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>303,375</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|6</FONT></P>

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<!--$$/page=--><A name="page_8"></A><BR>

<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="58%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Corporate Bonds </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Utilities </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.434pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., senior note,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8.625%, 6/15/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>477,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.959pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>InterGen NV, secured bond, 144A, 7.00%, 6/30/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Netherlands</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>497,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.434pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Talen Energy Supply LLC, senior note, 6.50%, 6/01/25.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,162,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,324,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Corporate Bonds (Cost $140,627,369)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>139,894,374</FONT></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.434pt" align=left><SUP><FONT size=2 face=Arial,Arial,Helvetica,sans-serif>h </FONT></SUP><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Senior Floating Rate Interests 55.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Capital Goods 5.9%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>AECOM, Term B Loans, 3.992%, (1-month USD LIBOR + 1.75%), 3/13/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,161,074</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,169,513</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j,k </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Altra Industrial Motion, Term B Loan, TBD, 10/15/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,065,218</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,069,213</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Delos Finance S.A.R.L. (AerCap), New Loans, 4.136%, (3-month USD LIBOR</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>+ 1.75%), 10/06/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Luxembourg</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,512,948</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Doncasters U.S. Finance LLC, Term B Loans, 5.886%, (3-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.50%), 4/09/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,404,027</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,310,425</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Flying Fortress Holdings LLC (ILFC), New Loan, 4.136%, (3-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 1.75%), 10/30/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,629,859</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,640,215</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Harsco Corp., Term Loan B-2, 4.50%, (1-month USD LIBOR + 2.25%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>12/10/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,432,532</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,448,749</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Navistar Inc., Tranche B Term Loan, 5.64%, (1-month USD LIBOR + 3.50%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11/06/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,140,150</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,157,775</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Onsite Rental Group Operations Property Ltd., Term Loan, 6.716%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 4.50%), 10/25/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Australia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>696,716</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>689,749</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>14,998,587</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Commercial &amp; Professional Services 1.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Prime Security Services Borrower LLC, Term B-1 Loans, 4.992%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 2.75%), 5/02/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,773,545</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,784,137</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ventia Pty. Ltd., Term B Loans (USD), 5.886%, (3-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.50%), 5/21/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Australia</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,322,338</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,332,255</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,116,392</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Consumer Services 5.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>24 Hour Fitness Worldwide Inc., Term Loan, 5.742%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.50%), 5/30/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>743,164</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>749,357</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Aristocrat Technologies Inc., Term B-3 Loans, 4.098%, (3-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1.75%), 10/19/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>931,006</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>931,275</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Avis Budget Car Rental LLC, Tranche B Term Loans, 4.25%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.00%), 2/13/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,399,918</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,404,046</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Caesars Resort Collection LLC/CRC Finco Inc., Term B Loans, 4.992%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 2.75%), 12/22/24.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,733,778</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,734,708</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Eldorado Resorts, Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=center><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Initial Term Loan, 4.375%, (1-month USD LIBOR + 2.25%), 4/17/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>893,824</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>899,400</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=center><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Initial Term Loan, 4.438%, (2-month USD LIBOR + 2.25%), 4/17/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,016,095</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,022,433</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Hilton Worldwide Finance LLC, Series B-2 Term Loans, 3.966%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 1.75%), 10/25/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,723,074</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,732,766</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC (Yum</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Brands), Term Loan B, 3.915%, (1-month USD LIBOR + 1.75%), 4/03/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,708,061</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,711,664</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Las Vegas Sands LLC, Term B Loans, 3.992%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1.75%), 3/27/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,995,700</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,996,380</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sabre GLBL Inc., 2017 Other Term A Loans, 4.242%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.00%), 7/01/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>927,623</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>930,522</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|7</FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_9"></A><BR>

<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="57%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=2 face=Arial,Arial,Helvetica,sans-serif>h </FONT></SUP><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Senior Floating Rate Interests </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Consumer Services </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.834pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Station Casinos LLC, Term B Facility Loans., 4.75%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

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   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.50%), 6/08/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>360,516</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>362,421</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>14,474,972</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Diversified Financials 1.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.834pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Asurion LLC, Replacement B-4 Term Loans, 5.242%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.00%), 8/04/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,994,798</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,013,810</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Trans Union LLC, 2017 Replacement Term A-2 Loans, 3.992%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 1.75%), 8/09/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>470,636</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>471,518</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,485,328</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Energy 0.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>OSG Bulk Ships Inc., Initial Term Loan, 6.77%, (6-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4.25%), 8/05/19</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,699,823</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,687,083</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Food &amp; Staples Retailing 0.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>U.S. Foods Inc., Initial Term Loans, 4.242%, (1-month USD LIBOR + 2.00%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6/27/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>572,074</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>574,866</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Food, Beverage &amp; Tobacco 2.9%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>JBS USA LUX SA, New Initial Term Loans, 4.837% - 4.886%, (3-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.50%), 10/30/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,976,715</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,986,018</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Pinnacle Foods Finance LLC, Initial B Term Loan, 3.854%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 1.75%), 2/03/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,177,434</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,178,982</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Post Holdings Inc., Series A Incremental Term Loans, 4.22%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.00%), 5/24/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,161,269</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,165,615</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7,330,615</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Health Care Equipment &amp; Services 4.1%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.834pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Catalent Pharma Solutions Inc., Dollar Term Loan, 4.492%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.25%), 5/20/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,380,910</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,391,267</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>DaVita Healthcare Partners Inc., Tranche B Term Loan, 4.992%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 2.75%), 6/24/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>994,805</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,000,401</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Envision Healthcare Corp., Initial Term Loans, 5.25%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.00%), 12/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>932,625</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>933,785</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>HCA Inc., Term Loan B11, 3.992%, (1-month USD LIBOR + 1.75%), 3/18/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,546,230</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,559,759</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>IQVIA Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

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<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.012pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Term B-1 Dollar Loans, 4.386%, (3-month USD LIBOR + 2.00%), 3/07/24 .</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>898,405</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>901,961</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.012pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Term B-3 Dollar Loans, 4.136%, (3-month USD LIBOR + 1.75%), 6/11/25 .</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>698,250</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>699,035</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Mallinckrodt International Finance SA/CB LLC, Extended Term Loan B,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5.136%, (3-month USD LIBOR + 2.75%), 9/24/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Luxembourg</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,730,542</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,722,249</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>U.S. Renal Care Inc., Initial Term Loan, 6.636%, (3-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4.25%), 12/31/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,164,321</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,114,271</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>10,322,728</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Household &amp; Personal Products 0.9%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Spectrum Brands Inc., USD Term Loans, 4.34% - 4.35%, (3-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.00%), 6/23/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,389,737</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,403,676</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Materials 6.4%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ashland LLC, Term B Loan, 3.915% - 3.992%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1.75%), 5/17/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,025,112</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,032,199</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Axalta Coating Systems U.S. Holdings Inc., Term B-3 Dollar Loan, 4.136%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(3-month USD LIBOR + 1.75%), 6/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,543,396</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,551,636</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Chemours Co., Tranche B-2 US$ Term Loan, 4.00%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1.75%), 4/03/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,063,643</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,064,142</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|8</FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_10"></A><BR>

<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="57%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=2 face=Arial,Arial,Helvetica,sans-serif>h </FONT></SUP><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Senior Floating Rate Interests </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Materials </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Crown Americas LLC, Dollar Term B Loan, 4.163%, (1-week USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.00%), 4/03/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,155,662</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,176,370</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ineos U.S. Finance LLC, 2024 Dollar Term Loan, 4.242%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.00%), 3/31/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,473,400</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,477,660</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>KMG Chemicals Inc., Initial Term Loan, 4.992%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.75%), 6/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>253,249</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>253,882</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Oxbow Carbon LLC, Tranche B Term Loan, 5.742%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.50%), 1/04/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,079,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,104,988</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Univar USA Inc., Term B-3 Loans, 4.492%, (1-month USD LIBOR + 2.25%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>744,444</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>747,132</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>WR Grace &amp; Co.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.012pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Term B-1 Loans, 4.136%, (3-month USD LIBOR + 1.75%), 4/03/25.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,059,920</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,065,440</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.012pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Term B-2 Loans, 4.136%, (3-month USD LIBOR + 1.75%), 4/03/25.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,817,006</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,826,469</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>16,299,918</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Media &amp; Entertainment 9.6%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>AMC Entertainment Holdings Inc.,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.012pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2016 Incremental Term Loans, 4.384%, (1-month USD LIBOR + 2.25%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12/15/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>592,457</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>593,815</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 20.012pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Initial Term Loans, 4.384%, (1-month USD LIBOR + 2.25%), 12/15/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,928,786</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,935,499</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Charter Communications Operating LLC, Term B Loan, 4.25%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.00%), 4/30/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>994,988</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>997,589</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CSC Holdings LLC, March 2017 Incremental Term Loans, 4.408%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 2.25%), 7/17/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,573,081</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,575,762</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Go Daddy Operating Co. LLC, Tranche B-1 Term Loans, 4.492%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 2.25%), 2/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,084,470</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,095,184</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Gray Television Inc., Term B-2 Loan, 4.354%, (1-month USD LIBOR + 2.25%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2/07/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,568,789</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,578,193</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Lions Gate Capital Holdings LLC, Term A Loan, 3.992%, (1-month USD LIBOR</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>+ 1.75%), 3/22/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,427,059</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,428,843</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Live Nation Entertainment Inc., Term B-3 Loans, 4.00%, (1-month USD LIBOR</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>+ 1.75%), 10/31/23.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,816,543</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,825,328</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>MCC Iowa LLC (Mediacom Broadband), Tranche M Term Loan, 4.17%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-week USD LIBOR + 2.00%), 1/25/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,731,589</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,738,082</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Mediacom Illinois LLC, Tranche N Term Loan, 3.92%, (1-week USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.038pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1.75%), 2/15/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,339,169</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,340,843</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.834pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Mission Broadcasting Inc., Term Loan B-2, 4.604%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.50%), 1/17/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>133,152</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>133,610</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.834pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Nexstar Broadcasting Inc., Term Loan B-2, 4.604%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.50%), 1/17/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>949,406</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>954,549</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Rackspace Hosting Inc., Term B Loans, 5.348%, (3-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.00%), 11/03/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,016,196</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,993,202</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Sinclair Television Group Inc., Tranche B Term Loans, 4.50%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.25%), 1/03/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,970,944</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,980,184</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>24,170,683</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Pharmaceuticals, Biotechnology &amp; Life Sciences 3.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Bausch Health Cos. Inc., Initial Term Loans, 5.104%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3.00%), 6/02/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>642,468</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>646,484</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6.50%, (1-month USD LIBOR + 4.25%), 4/29/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,975,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,992,281</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Grifols Worldwide Operations USA Inc., Tranche B Term Loan, 4.417%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-week USD LIBOR + 2.25%), 1/31/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,723,144</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,733,913</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|9</FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_11"></A><BR>

<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="58%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.434pt" align=left><SUP><FONT size=2 face=Arial,Arial,Helvetica,sans-serif>h </FONT></SUP><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Senior Floating Rate Interests </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Pharmaceuticals, Biotechnology &amp; Life Sciences </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Horizon Pharma Inc., Third Amendment Refinancing Term Loan, 5.50%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 3.25%), 3/29/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,068,515</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,087,908</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Innoviva Inc., Initial Term Loan, 6.812%, (3-month USD LIBOR + 4.50%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8/18/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>110,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>110,550</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Syneos Health Inc., Initial Term B Loans, 4.242%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.00%), 8/01/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,468,782</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,472,799</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8,043,935</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Retailing 4.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ascena Retail Group Inc., Tranche B Term Loan, 6.75%, (1-month USD LIBOR</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>+ 4.50%), 8/21/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,174,835</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,080,257</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>General Nutrition Centers Inc., FILO Term Loan (ABL), 9.25%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 7.00%), 12/31/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,000,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,078,750</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Harbor Freight Tools USA Inc., Refinancing Loans, 4.742%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 2.50%), 8/19/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,964,791</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,968,748</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Michaels Stores Inc., 2018 New Replacement Term B Loan, 4.658% - 4.742%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 2.50%), 1/28/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,014,950</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,011,172</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>10,138,927</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Semiconductors &amp; Semiconductor Equipment 1.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>MKS Instruments Inc., Tranche B-4 Term Loan, 3.992%, (1-month USD LIBOR</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>+ 1.75%), 4/29/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>264,073</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>265,558</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>ON Semiconductor Corp., 2018 New Replacement Term B-3 Loans, 3.992%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 1.75%), 3/31/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,322,870</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,329,114</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,594,672</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Software &amp; Services 2.2%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>First Data Corp., Term A Loan, 3.962%, (1-month USD LIBOR + 1.75%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6/02/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,896,310</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,899,595</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Iron Mountain Information Management LLC, Term B Loan, 3.992%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 1.75%), 1/26/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,674,080</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,659,951</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Wex Inc., Term B-2 Loan, 4.492%, (1-month USD LIBOR + 2.25%), 7/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,940,338</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,951,252</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,510,798</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Technology Hardware &amp; Equipment 1.8%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>j,k </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Ciena Corp., Term Loan B, TBD, 9/28/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,066,666</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,077,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CommScope Inc., Tranche 5 Term Loans, 4.242%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2.00%), 12/29/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>950,080</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>956,607</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Western Digital Corp., US Term B-4 Loan, 3.992%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1.75%), 4/29/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,415,667</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,420,085</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,453,692</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Transportation 2.6%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Air Canada, Term Loan, 4.242%, (1-month USD LIBOR + 2.00%), 10/06/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Canada</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,980,290</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,994,571</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>American Airlines Inc., 2021 Replacement Term Laons, 4.133%, (3-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 2.00%), 10/10/21</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>679,077</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>679,820</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.482pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Hertz Corp., Tranche B-1 Term Loan, 4.83%, (1-month USD LIBOR + 2.75%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.473pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6/30/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,947,734</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,945,433</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,619,824</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|10</FONT></P>

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<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_12"></A><BR>

<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="58%"></TD>

   <TD width="13%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=2 face=Arial,Arial,Helvetica,sans-serif>h </FONT></SUP><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Senior Floating Rate Interests </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.141pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Utilities 2.3%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.141pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>EFS Cogen Holdings I LLC (Linden), Term B Advance, 5.64%, (3-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 3.25%), 6/28/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,291,106</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,282,276</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.141pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>NRG Energy Inc., Term Loan B, 4.136%, (3-month USD LIBOR + 1.75%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6/30/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,405,924</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,412,123</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,694,399</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Senior Floating Rate Interests (Cost $140,714,583)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>140,921,095</FONT></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Commercial Mortgage-Backed Securities 4.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Banks 2.6%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Citigroup Commercial Mortgage Trust,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2006-C5, AJ, 5.482%, 10/15/49</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>253,924</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>246,862</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2015-GC27, A5, 3.137%, 2/10/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,520,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,480,081</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.834pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>l,m </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Commercial Mortgage Trust, 2006-GG7, AJ, FRN, 5.928%, 7/10/38</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>865,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>797,205</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>CSAIL Commercial Mortgage Trust, 2015-C1, A4, 3.505%, 4/15/50</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,410,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,402,377</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>JPMBB Commercial Mortgage Securities Trust, 2015-C28, A4, 3.227%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>10/15/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,410,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,374,524</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Merrill Lynch Mortgage Investors Trust,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2003-OPT1, B2, FRN, 6.341%, (1-month USD LIBOR + 4.125%), 7/25/34 .</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>33,301</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,737</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2005-A6, 2A3, FRN, 2.596%, (1-month USD LIBOR + 0.38%), 8/25/35</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>169,402</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>170,111</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Morgan Stanley ABS Capital I Inc. Trust, 2003-NC10, B1, FRN, 7.166%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 4.95%), 10/25/33.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>350,442</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>379,706</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Wells Fargo Commercial Mortgage Trust, 2014-LC16, A4, 3.548%, 8/15/50</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>550,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>549,256</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,405,859</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Diversified Financials 2.1%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Argent Securities Inc., 2003-W5, M4, FRN, 7.841%, (1-month USD LIBOR +</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5.625%), 10/25/33</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>93,151</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>100,638</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.207pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>f,l </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>BCAP LLC Trust, 2009-RR1, 2A2, 144A, FRN, 4.208%, 5/26/35</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,273,622</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,237,340</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Structured Agency Credit Risk Debt Notes,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2014-DN1, M2, FRN, 4.416%, (1-month USD LIBOR + 2.20%), 2/25/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,565,495</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,609,243</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2014-HQ2, M2, FRN, 4.416%, (1-month USD LIBOR + 2.20%), 9/25/24</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>662,992</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>683,236</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2015-HQ1, M2, FRN, 4.416%, (1-month USD LIBOR + 2.20%), 3/25/25</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>81,574</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>81,799</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>MortgageIT Trust, 2004-1, A2, FRN, 3.116%, (1-month USD LIBOR + 0.90%),</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11/25/34</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>254,073</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>250,660</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Opteum Mortgage Acceptance Corp. Trust, 2005-4, 1APT, FRN, 2.526%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 0.31%), 11/25/35.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>294,470</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>293,088</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Option One Mortgage Loan Trust, 2003-6, M5, FRN, 7.166%, (1-month USD</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>LIBOR + 4.95%), 11/25/33</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>92,324</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>81,905</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>m,n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Structured Asset Investment Loan Trust, 2003-BC2, M3, FRN, 7.091%,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(1-month USD LIBOR + 4.875%), 4/25/33.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>13,987</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>13,566</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>n </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Structured Asset Securities Corp., 2005-2XS, 2A2, FRN, 3.604%, (1-month</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.133pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>USD LIBOR + 1.50%), 2/25/35</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>242,967</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>239,957</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.928pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>l </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Thornburg Mortgage Securities Trust, 2005-1, A3, FRN, 3.572%, 4/25/45</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>582,582</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>588,298</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Wells Fargo Mortgage Backed Securities Trust,</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 23.893pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>l </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2004-W, A9, FRN, 3.937%, 11/25/34</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>158,805</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>163,566</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.107pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2007-3, 3A1, 5.50%, 4/25/22</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>43,921</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>44,722</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,388,018</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Commercial Mortgage-Backed Securities</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 15.131pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>(Cost $11,979,777)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11,793,877</FONT></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.142pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Mortgage-Backed Securities 38.8%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.094pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>o </FONT></SUP><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Federal Home Loan Mortgage Corp. (FHLMC) Adjustable Rate 0.0%</FONT></B><B><SUP><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&#8224;</FONT></SUP></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.093pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC, 4.577%, (12-month USD LIBOR +/- MBS Margin), 5/01/34</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>85,242</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>89,208</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|11</FONT></P>

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<!--$$/page=--><A name="page_13"></A><BR>

<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="56%"></TD>

   <TD width="15%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount*</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Mortgage-Backed Securities </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(continued)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Federal Home Loan Mortgage Corp. (FHLMC) Fixed Rate 21.3%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 15 Year, 5.00%, 12/01/23</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>361,497</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>375,487</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 15 Year, 5.50%, 7/01/19</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,220</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,236</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 3.50%, 3/01/45</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>42,121</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>41,575</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 3.50%, 10/01/47</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,629,547</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,545,373</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>p </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 3.50%, 10/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>14,530,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>14,297,860</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 4.00%, 4/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,483,084</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,553,579</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 4.00%, 5/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11,251,917</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11,373,001</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>p </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 4.00%, 10/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>14,202,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>14,341,129</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 6.00%, 7/01/28 - 11/01/36.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>490,614</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>541,548</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 6.50%, 8/01/27 - 3/01/38</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>257,797</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>285,523</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 7.00%, 9/01/27</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>71,602</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>75,570</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 8.00%, 1/01/31</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7,732</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7,836</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FHLMC Gold 30 Year, 8.50%, 7/01/31</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>274,095</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>315,528</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>53,756,245</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>o </FONT></SUP><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Federal National Mortgage Association (FNMA) Adjustable Rate 0.1%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA, 3.915% - 4.10%, (6-month USD LIBOR +/- MBS Margin), 6/01/32 -</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.039pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7/01/34</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>248,860</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>258,136</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Federal National Mortgage Association (FNMA) Fixed Rate 13.1%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 15 Year, 3.00%, 8/01/27</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8,328</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>8,277</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 15 Year, 3.50%, 1/01/21 - 1/01/26</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>30,891</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>31,077</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 15 Year, 5.50%, 7/01/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>46,852</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>47,291</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 15 Year, 6.50%, 7/01/20</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>34</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>34</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 3.50%, 11/01/47</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,472,273</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,435,150</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 3.50%, 4/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,215,033</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,181,788</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>p </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 3.50%, 10/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,550,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,477,888</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 3.50%, 1/01/45 - 7/01/56</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,069,369</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,040,236</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 4.00%, 11/01/44 - 1/01/45</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>948,510</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>960,251</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 4.00%, 1/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,060,927</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,084,355</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 4.00%, 4/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,876,368</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,917,971</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>p </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 4.00%, 9/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>13,025,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>13,152,881</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 4.50%, 5/01/24 - 8/01/44</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>56,996</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>59,002</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 5.00%, 5/01/38 - 7/01/39</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>383,499</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>407,175</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 5.50%, 6/01/37</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>311,997</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>336,586</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 6.00%, 4/01/33 - 6/01/38</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>763,470</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>840,358</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 6.50%, 8/01/32</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>105,877</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>117,094</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>FNMA 30 Year, 8.00%, 10/01/29</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,228</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>6,237</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>33,103,651</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Government National Mortgage Association (GNMA) Fixed Rate 4.3%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>GNMA I SF 30 Year, 4.50%, 9/20/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>4,658,070</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>GNMA I SF 30 Year, 6.50%, 6/15/31 - 12/15/33</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>346,770</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>380,725</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>p </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>GNMA II SF 30 Year, 4.50%, 10/01/48</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,526,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5,712,503</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>GNMA II SF 30 Year, 7.00%, 1/20/24 - 1/20/29</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>33,169</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>36,068</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>d </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>GNMA II SF 30 Year, 8.00%, 1/20/28 - 10/20/31</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>94,351</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>109,409</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>10,896,775</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.047pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Mortgage-Backed Securities (Cost $99,122,476)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>98,104,015</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|12</FONT></P>

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<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="56%"></TD>

   <TD width="16%"></TD>

   <TD width="9%"></TD>

   <TD width="2%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Country</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Escrows and Litigation Trusts 0.0%</FONT></B><B><SUP><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&#8224;</FONT></SUP></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC, Litigation Trust</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>800,000</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>NewPage Corp., Litigation Trust</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,500,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Penn Virginia Corp., Litigation Trust</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>300,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>787</FONT></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a,b </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>T-Mobile USA Inc., Litigation Trust</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,200,000</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.575pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Vistra Energy Corp., Litigation Trust</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,000,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,000</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Escrows and Litigation Trusts (Cost $58,482)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,787</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Investments before Short Term Investments</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp; (Cost $400,769,282)</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>394,370,119</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Short Term Investments (Cost $9,264,598) 3.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Money Market Funds 3.7%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.224pt" align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>q,r </FONT></SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Institutional Fiduciary Trust Money Market Portfolio, 1.69%.</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,264,598</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,264,598</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Investments (Cost $410,033,880) 159.6%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>403,634,717</FONT></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Credit Facility (35.6)%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(90,000,000</FONT></TD>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Other Assets, less Liabilities (24.0)%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(60,687,090</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.623pt" align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Net Assets 100.0%</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>252,947,627</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">&#8224;</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Rounds to less than 0.1% of net assets.</FONT><BR><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">*The principal amount is stated in U.S. dollars unless otherwise indicated.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">a</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Non-income producing.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">b</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Fair valued using significant unobservable inputs. See Note 6 regarding fair value measurements.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">c</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">See Note 4 regarding restricted securities.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">d</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">A portion or all of the security is pledged as collateral in connection with the Fund&#8217;s revolving credit facility.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">e</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Perpetual security with no stated maturity date.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">f</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers </FONT><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust&#8217;s Board of Trustees. At </FONT><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">September 30, 2018, the aggregate value of these securities was $79,508,224, representing 31.4% of net assets.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">g</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Income may be received in additional securities and/or cash.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">h</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">The coupon rate shown represents the rate at period end.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">i</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Security purchased on a when-issued basis.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">j</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">A portion or all of the security purchased on a delayed delivery basis.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">k</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">A portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a </FONT><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">reference index/floor plus a spread.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">l</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">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 </FONT><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">market conditions. The coupon rate shown represents the rate at period end.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">m</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">The bond pays interest and/or principal based upon the issuer&#8217;s ability to pay, which may be less than the stated interest rate or principal paydown.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">n</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">The coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">o</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">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 </FONT><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">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 </FONT><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">pay interest based on the index shown at their designated reset dates plus a spread, less the applicable servicing and guaranty fee (MBS margin).</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">p</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Security purchased on a to-be-announced (TBA) basis.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">q</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">See Note 5 regarding investments in affiliated management investment companies.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">r</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">The rate shown is the annualized seven-day effective yield at period end.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|13</FONT></P>

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<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Notes to Statement of Investments (unaudited)</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>1. ORGANIZATION</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">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).</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>2. FINANCIAL INSTRUMENT VALUATION</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The Fund&#8217;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&#8217;s Board of Trustees (the Board), the Fund&#8217;s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The VC provides administration and oversight of the Fund&#8217;s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">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.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">Debt securities generally trade in the OTC market rather than on a securities exchange. The Fund&#8217;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.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">Investments in open-end mutual funds are valued at the closing NAV.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">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 VC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VC 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. The VC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|14</FONT></P>

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<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">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&#8217;s business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund&#8217;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, the VC monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">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&#8217;s NAV is not calculated, which could result in differences between the value of the Fund&#8217;s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>3. MORTGAGE DOLLAR ROLLS</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The Fund enters into mortgage dollar rolls, typically on a to-be-announced 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&#8217;s portfolio turnover rate. The risks of mortgage dollar roll transactions include the potential inability of the counterparty to fulfill its obligations.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The Fund is investing in mortgage dollar rolls as an alternate form of leverage.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>4. RESTRICTED SECURITIES</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">At September 30, 2018, investments in restricted securities, excluding securities exempt from registration under the Securities Act of 1933 deemed to be liquid, were as follows:</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD style="WIDTH: 54px"></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none"></TD>

   <TD style="WIDTH: 407px"></TD>

   <TD style="WIDTH: 172px"></TD>

   <TD style="WIDTH: 15px"></TD>

   <TD style="WIDTH: 82px"></TD>

   <TD style="WIDTH: 15px"></TD>

   <TD style="WIDTH: 65px"></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Principal</FONT></B></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left></TD>

   <TD style="WIDTH: 407px" align=left>&nbsp;</TD>

   <TD style="WIDTH: 172px" align=left>&nbsp;</TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px" align=left>&nbsp;</TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Amount/</FONT></B></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left></TD>

   <TD style="WIDTH: 407px" align=left>&nbsp;</TD>

   <TD style="WIDTH: 172px" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Acquisition</FONT></B></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px" align=left>&nbsp;</TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px; BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Shares</FONT></B></TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>

   <TD style="WIDTH: 407px; BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 0.001pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Issuer</FONT></B></TD>

   <TD style="WIDTH: 172px; BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Date</FONT></B></TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px; BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Cost</FONT></B></TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px; BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif></FONT></TD>

   <TD style="WIDTH: 407px; TEXT-INDENT: 0.001pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>New Gold Inc., senior note, 144A, 6.375%, 5/15/25</FONT></TD>

   <TD style="WIDTH: 172px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5/04/17</FONT></TD>

   <TD style="WIDTH: 15px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="WIDTH: 82px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>600,000</FONT></TD>

   <TD style="WIDTH: 15px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="WIDTH: 65px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>502,617</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>404</FONT></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif></FONT></TD>

   <TD style="WIDTH: 407px; TEXT-INDENT: 0pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Nine Point Energy Holdings Inc., cvt. pfd</FONT></TD>

   <TD style="WIDTH: 172px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3/24/17</FONT></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>377,604</FONT></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>604,110</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>21,663</FONT></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif></FONT></TD>

   <TD style="WIDTH: 407px; TEXT-INDENT: 0pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Nine Point Energy LLC</FONT></TD>

   <TD style="WIDTH: 172px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>7/15/14 - 2/01/18</FONT></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>830,630</FONT></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>295,010</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>39,306</FONT></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif></FONT></TD>

   <TD style="WIDTH: 407px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Remington Outdoor Co. Inc</FONT></TD>

   <TD style="WIDTH: 172px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2/13/17</FONT></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,947,001</FONT></TD>

   <TD style="WIDTH: 15px" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>665,803</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,700</FONT></TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif></FONT></TD>

   <TD style="WIDTH: 407px; TEXT-INDENT: 0.001pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Remington Outdoor Co. Inc., Litigation Units</FONT></TD>

   <TD style="WIDTH: 172px" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>5/16/18</FONT></TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="WIDTH: 82px; BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="WIDTH: 65px; BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 54px" align=left>&nbsp;</TD>

   <TD style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; WIDTH: 15px; BORDER-BOTTOM: medium none; BORDER-LEFT: medium none" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="WIDTH: 407px; TEXT-INDENT: 3.992pt" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total Restricted Securities </FONT></B><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>(Value is 0.8% of Net Assets)</FONT></TD>

   <TD style="WIDTH: 172px" align=left>&nbsp;</TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="WIDTH: 82px; BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>3,755,235</FONT></TD>

   <TD style="WIDTH: 15px; BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="WIDTH: 65px; BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,067,540</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|15</FONT></P>

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<P style="TEXT-ALIGN: left"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>5. INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended September 30, 2018, the Fund held investments in affiliated management investment companies as follows:</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="23%"></TD>

   <TD width="10%"></TD>

   <TD width="9%"></TD>

   <TD width="9%"></TD>

   <TD width="2%"></TD>

   <TD width="8%"></TD>

   <TD width="2%"></TD>

   <TD width="8%"></TD>

   <TD width="2%"></TD>

   <TD width="6%"></TD>

   <TD width="6%"></TD>

   <TD width="8%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Number of</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Number of</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Net Change in</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Shares Held</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Shares</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Value</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Realized</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Unrealized</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>at Beginning</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Gross</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Gross</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Held at End</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>at End</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Dividend</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Gain</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Appreciation</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>of Period</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Additions</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Reductions</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>of Period</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>of Period</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Income</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>(Loss)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>(Depreciation)</FONT></B></TD></TR>

<TR>

   <TD colSpan=12>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face=ArialNarrow-Bold,Arial,Helvetica,sans-serif>Non-Controlled Affiliates</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Institutional Fiduciary Trust Money Market</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 3.991pt" align=left><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Portfolio, 1.69%</FONT></TD>

   <TD align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">12,509,828</FONT></TD>

   <TD align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">100,868,232</FONT></TD>

   <TD align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">(104,113,462</FONT></TD>

   <TD align=left><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">)</FONT></TD>

   <TD align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">9,264,598</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">9,264,598</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">119,421</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">$ &#8212;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">$ &#8212;</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>6. FAIR VALUE MEASUREMENTS</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund&#8217;s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund&#8217;s financial instruments and are summarized in the following fair value hierarchy:</FONT></P>

<UL>

<LI><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">Level 1 &#8211; quoted prices in active markets for identical financial instruments</FONT>

<LI><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">Level 2 &#8211; other significant observable inputs (including quoted prices for similar financial instruments, interest rates,</FONT> <FONT size=2 face="Times New Roman,Times New Roman,Times,serif">prepayment speed, credit risk, etc.)</FONT>

<LI><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">Level 3 &#8211; significant unobservable inputs (including the Fund&#8217;s own assumptions in determining the fair value of financial</FONT> <FONT size=2 face="Times New Roman,Times New Roman,Times,serif">instruments)</FONT> </LI></UL>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">A summary of inputs used as of September 30, 2018, in valuing the Fund&#8217;s assets carried at fair value, is as follows:</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD width="33%"></TD>

   <TD width="2%"></TD>

   <TD width="16%"></TD>

   <TD width="3%"></TD>

   <TD width="11%"></TD>

   <TD width="2%"></TD>

   <TD width="14%"></TD>

   <TD width="2%"></TD>

   <TD width="3%"></TD>

   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Level 1</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Level 2</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Level 3</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Assets:</FONT></B></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Investments in Securities:</FONT><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>a</FONT></SUP></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.97pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Equity Investments:</FONT><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>b</FONT></SUP></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.957pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Commercial &amp; Professional Services</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>665,803</FONT></TD>

   <TD align=left><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>c</FONT></SUP></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>665,803</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.955pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Energy.</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>564,987</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,237,823</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>899,124</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>2,701,934</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.955pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Transportation</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>67,982</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>67,982</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.955pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>All Other Equity Investments.</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>211,252</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>211,252</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.968pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Corporate Bonds</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>139,894,374</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>139,894,374</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.969pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Senior Floating Rate Interests</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>140,921,095</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>140,921,095</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.969pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Commercial Mortgage-Backed Securities</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11,793,877</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>11,793,877</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.969pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Mortgage-Backed Securities</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>98,104,015</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>98,104,015</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.969pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Escrows and Litigation Trusts</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,787</FONT></TD>

   <TD align=right>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT><SUP><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>c</FONT></SUP></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,787</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.968pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Short Term Investments</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,264,598</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>&#8212;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>9,264,598</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 25.942pt" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Total Investments in Securities</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>10,040,837</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 0pt" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>391,960,971</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>1,632,909</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 0.002pt" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>$</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>403,634,717</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">a</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">For detailed categories, see the accompanying Statement of Investments.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">b</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Includes common and convertible preferred stocks as well as other equity investments.</FONT><BR><SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">c</FONT></SUP><FONT size=1 face="Arial Narrow,Arial,Helvetica,sans-serif">Includes securities determined to have no value at September 30, 2018.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|16</FONT></P>

<HR align=center SIZE=2 width="100%" noShade>



<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

<!--$$/page=--><A name="page_18"></A><BR>

<P style="TEXT-ALIGN: right"><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">FRANKLIN LIMITED DURATION INCOME TRUST</FONT><BR><FONT size=1 face="Times New Roman,Times New Roman,Times,serif">NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 financial instruments at the beginning and/or end of the period.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>7. NEW ACCOUNTING PRONOUNCEMENTS</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables&#8212;Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities acquired at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities acquired at a discount, which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework&#8212;Changes to the Disclosure Requirements for Fair Value Measurements. The amendments in the ASU modify the disclosure requirements on fair value measurements in Topic 820. The ASU is effective for interim and annual reporting periods beginning after December 15, 2019. Management is currently evaluating the impact, if any, of applying this provision.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>8. SUBSEQUENT EVENTS</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">The Fund has evaluated subsequent events through the issuance of the Statement of Investments and determined that no events have occurred that require disclosure.</FONT></P>

<DIV align=left>

<TABLE cellSpacing=0 border=0>



<TR>

   <TD style="WIDTH: 59px"></TD>

   <TD style="WIDTH: 211px"></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 272px" colSpan=2 align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Abbreviations</FONT></B></TD></TR>

<TR>

   <TD style="WIDTH: 272px" colSpan=2>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 272px; BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=left><B><FONT size=2 face=ArialMT-Bold,Arial,Helvetica,sans-serif>Selected Portfolio</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>FHLMC</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Federal Home Loan Mortgage Corp.</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>FNMA</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Federal National Mortgage Association</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>FRN</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Floating Rate Note</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>GNMA</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Government National Mortgage Association</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>LIBOR</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>London InterBank Offered Rate</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>MBS</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Mortgage-Backed Security</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>PIK</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Payment-In-Kind</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>SF</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>Single Family</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="WIDTH: 59px" align=left><B><FONT size=1 face=ArialMT-Bold,Arial,Helvetica,sans-serif>USD</FONT></B></TD>

   <TD style="WIDTH: 211px" align=left><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>United States Dollar</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times New Roman,Times,serif">For additional information on the Fund&#8217;s significant accounting policies, please refer to the Fund&#8217;s most recent semiannual or annual shareholder report.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=1 face=Arial,Arial,Helvetica,sans-serif>|17</FONT></P>

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<P style="MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Item 2. Controls and Procedures.</FONT></B></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">(a) </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Evaluation of Disclosure Controls and Procedures</FONT></U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">.&nbsp; The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant&#8217;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.&nbsp; Such information is accumulated and communicated to the Registrant&#8217;s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.&nbsp; The Registrant&#8217;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.</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant&#8217;s management, including the Registrant&#8217;s principal executive officer and the Registrant&#8217;s principal financial officer, of the effectiveness of the design and operation of the Registrant&#8217;s disclosure controls and procedures.&nbsp; Based on such evaluation, the Registrant&#8217;s principal executive officer and principal financial officer concluded that the Registrant&#8217;s disclosure controls and procedures are effective.</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">(b) </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Changes in Internal Controls</FONT></U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">.&nbsp; There have been no changes in the Registrant&#8217;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.</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Item 3. Exhibits.</FONT></B></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">(a) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer.</FONT></P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">SIGNATURES</FONT></B></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New">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.</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" color=#454545 face="Courier New"></FONT>&nbsp;</P>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 10pt" face="Courier New">Franklin Limited Duration Income Trust</FONT></B></H2>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">By&nbsp;&nbsp; </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">/s/ Matthew T. Hinkle</FONT></U></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Matthew T. Hinkle</FONT></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Chief Executive Officer &#8211; </FONT></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Finance and Administration</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Date: November 27, 2018</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P></DIV>

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<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">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.</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">By&nbsp;&nbsp; </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">/s/ Matthew T. Hinkle</FONT></U></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Matthew T. Hinkle</FONT></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Chief Executive Officer &#8211; </FONT></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Finance and Administration</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Date: November 27, 2018</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">By&nbsp;&nbsp;&nbsp; </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">/s/ Gaston Gardey</FONT></U></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Gaston Gardey</FONT></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Chief Financial Officer and</FONT></P>

<P style="MARGIN: 0in 0in 0pt 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Chief Accounting Officer</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New">Date: November 27, 2018</FONT></P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Courier New"></FONT>&nbsp;</P>

<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Courier New"></FONT>&nbsp;</P></DIV>

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<a name="page_1"></a><a name="_bclPageBorder1"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p align=right style="margin:0in;margin-bottom:.0001pt;text-align:right;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Exhibit
3(a)</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">I, Matthew T. Hinkle, certify that:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">1. I have reviewed this report on
Form N-Q of </font><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Franklin Limited Duration Income Trust</font></b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">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; </font><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;</font></b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">3. Based on my
knowledge, the schedules of investments included in this report fairly present
in all material respects the investments of the registrant as of the end of the
fiscal quarter for which the report is filed; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">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:</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(d)
Disclosed in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">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):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">11/29/2018</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">S\MATTHEW T. HINKLE</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Matthew T. Hinkle </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Chief Executive Officer - Finance and Administration</font></p>









</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p align=right style="margin:0in;margin-bottom:.0001pt;text-align:right;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Exhibit
3(a)</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">I, Gaston Gardey, certify that:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">1. I have reviewed this report on
Form N-Q of </font><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Franklin Limited Duration Income Trust</font></b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">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; </font><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;</font></b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">3. Based on my
knowledge, the schedules of investments included in this report fairly present
in all material respects the investments of the registrant as of the end of the
fiscal quarter for which the report is filed; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">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:</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(d)
Disclosed in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">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):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(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.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="times new roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">11/29/2018</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">S\GASTON GARDEY</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Gaston Gardey </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Chief Financial Officer and Chief Accounting Officer</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>




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