UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05583
Franklin Templeton Variable Insurance Products Trust
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code:(650)312-2000
Date of fiscal year end: 12/31
Date of reporting period: 12/31/21
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
Annual
Report
Franklin
Templeton
Variable
Insurance
Products
Trust
December
31,
2021
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
MASTER
CLASS
-
5
Franklin
Templeton
Variable
Insurance
Products
Trust
Annual
Report
Table
of
Contents
Important
Notes
to
Performance
Information
...........
i
*Statement
of
Additional
Information
Supplement
for
All
Funds
..................................
SAI-2
Fund
Summaries
Franklin
VolSmart
Allocation
VIP
Fund
............
FVA-1
Index
Descriptions
..............................
I-1
Board
Members
and
Officers
.......................
BOD-1
Shareholder
Information
..........................
SI-1
*Not
part
of
the
annual
report.
Retain
for
your
records
.
i
Annual
Report
Important
Notes
to
Performance
Information
Performance
data
is
historical
and
cannot
predict
or
guarantee
future
results.
Principal
value
and
investment
return
will
fluctuate
with
market
conditions,
and
you
may
have
a
gain
or
loss
when
you
withdraw
your
money.
Inception
dates
of
the
funds
may
have
preceded
the
effective
dates
of
the
subaccounts,
contracts
or
their
availability
in
all
states.
When
reviewing
the
index
comparisons,
please
keep
in
mind
that
indexes
have
a
number
of
inherent
performance
differentials
over
the
funds.
First,
unlike
the
funds,
which
must
hold
a
minimum
amount
of
cash
to
maintain
liquidity,
indexes
do
not
have
a
cash
component.
Second,
the
funds
are
actively
managed
and,
thus,
are
subject
to
management
fees
to
cover
salaries
of
securities
analysts
or
portfolio
managers
in
addition
to
other
expenses.
Indexes
are
unmanaged
and
do
not
include
any
commissions
or
other
expenses
typically
associated
with
investing
in
securities.
Third,
indexes
often
contain
a
different
mix
of
securities
than
the
fund
to
which
they
are
compared.
Additionally,
please
remember
that
indexes
are
simply
a
measure
of
performance
and
cannot
be
invested
in
directly.
SAI-2
Annual
Report
VIP1
SA1
SA2
SA4
SA5
02/22
SUPPLEMENT
DATED
FEBRUARY
4,
2022
TO
THE
STATEMENT
OF
ADDITIONAL
INFORMATION
DATED
MAY
1,
2021
FOR
FRANKLIN
ALLOCATION
VIP
FUND
FRANKLIN
DYNATECH
VIP
FUND
FRANKLIN
GLOBAL
REAL
ESTATE
VIP
FUND
FRANKLIN
GROWTH
AND
INCOME
VIP
FUND
FRANKLIN
INCOME
VIP
FUND
FRANKLIN
LARGE
CAP
GROWTH
VIP
FUND
FRANKLIN
MUTUAL
GLOBAL
DISCOVERY
VIP
FUND
FRANKLIN
MUTUAL
SHARES
VIP
FUND
FRANKLIN
RISING
DIVIDENDS
VIP
FUND
FRANKLIN
SMALL
CAP
VALUE
VIP
FUND
FRANKLIN
SMALL-MID
CAP
GROWTH
VIP
FUND
FRANKLIN
STRATEGIC
INCOME
VIP
FUND
FRANKLIN
U.S.
GOVERNMENT
SECURITIES
VIP
FUND
FRANKLIN
VOLSMART
ALLOCATION
VIP
FUND
TEMPLETON
DEVELOPING
MARKETS
VIP
FUND
TEMPLETON
FOREIGN
VIP
FUND
TEMPLETON
GLOBAL
BOND
VIP
FUND
TEMPLETON
GROWTH
VIP
FUND
(each,
a
series
of
Franklin
Templeton
Variable
Insurance
Products
Trust)
The
statement
of
additional
information
(SAI)
of
each
Fund
is
amended
as
follows:
I.
For
all
Funds,
the
name
“Franklin
Templeton
Distributors,
Inc.”
is
replaced
throughout
the
SAI
with
“Franklin
Distributors,
LLC.”
II.
For
Franklin
Allocation
VIP
Fund,
Templeton
Developing
Markets
VIP
Fund
and
Templeton
Foreign
VIP
Fund,
the
following
bullet
is
added
to
the
list
of
securities
in
which
each
Fund
may
invest
under
“The
Funds
–
Goals,
Additional
Strategies
and
Risks:”
Chinese
securities
including
Chinese
variable
interest
entities
III.
The
following
is
added
to
the
“Goals,
Strategies
and
Risks
–
Glossary
of
Investments,
Techniques,
Strategies
and
Their
Risks
–
Foreign
securities:”
China
companies.
Investing
in
China,
Hong
Kong
and
Taiwan
involves
a
high
degree
of
risk
and
special
considerations
not
typically
associated
with
investing
in
other
more
established
economies
or
securities
markets.
Such
risks
may
include:
(a)
the
risk
of
nationalization
or
expropriation
of
assets
or
confiscatory
taxation;
(b)
greater
social,
economic
and
political
uncertainty
(including
the
risk
of
war);
(c)
dependency
on
exports
and
the
corresponding
importance
of
international
trade;
(d)
the
increasing
competition
from
Asia’s
other
low-cost
emerging
economies;
(e)
greater
price
volatility
and
significantly
smaller
market
capitalization
of
securities
markets,
particularly
in
China;
(f)
substantially
less
liquidity,
particularly
of
certain
share
classes
of
Chinese
securities;
(g)
currency
exchange
rate
fluctuations
and
the
lack
of
available
currency
hedging
instruments;
(h)
higher
rates
of
inflation;
(i)
controls
on
foreign
investment
and
limitations
on
repatriation
of
invested
capital
and
on
the
Fund’s
ability
to
exchange
local
currencies
for
U.S.
dollars;
(j)
greater
governmental
involvement
in
and
control
over
the
economy;
(k)
the
risk
that
the
Chinese
government
may
decide
not
to
continue
to
support
the
economic
reform
programs
implemented
since
1978
and
could
return
to
the
prior,
completely
centrally
planned,
economy;
(l)
the
fact
that
China
companies,
particularly
those
located
in
China,
may
be
smaller,
less
seasoned
and
newly-organized
companies;
(m)
the
difference
in,
or
lack
of,
auditing
and
financial
reporting
standards
which
may
result
in
unavailability
of
material
information
about
issuers,
particularly
in
China;
(n)
the
fact
that
statistical
information
regarding
the
economy
of
China
may
be
inaccurate
or
not
comparable
to
statistical
information
regarding
SAI-3
Annual
Report
the
U.S.
or
other
economies;
(o)
the
less
extensive,
and
still
developing,
regulation
of
the
securities
markets,
business
entities
and
commercial
transactions;
(p)
the
fact
that
the
settlement
period
of
securities
transactions
in
foreign
markets
may
be
longer;
(q)
the
willingness
and
ability
of
the
Chinese
government
to
support
the
Chinese
and
Hong
Kong
economies
and
markets
is
uncertain;
(r)
the
risk
that
it
may
be
more
difficult,
or
impossible,
to
obtain
and/or
enforce
a
judgment
than
in
other
countries
and
that
there
may
be
significant
obstacles
to
obtaining
information
necessary
for
investigations
into
or
litigation
against
Chinese
companies;
and
(s)
the
rapidity
and
erratic
nature
of
growth,
particularly
in
China,
resulting
in
inefficiencies
and
dislocations;
and
(t)
the
risk
that
because
of
the
degree
of
interconnectivity
between
the
economies
and
financial
markets
of
China,
Hong
Kong
and
Taiwan,
any
sizable
reduction
in
the
demand
for
goods
from
China,
or
an
economic
downturn
in
China,
could
negatively
affect
the
economies
and
financial
markets
of
Hong
Kong
and
Taiwan,
as
well.
The
Public
Company
Accounting
Oversight
Board
(PCAOB)
has
warned
that
positions
taken
by
Chinese
authorities
impair
the
PCAOB's
ability
to
conduct
inspections
and
investigations
of
the
audits
of
public
companies
with
China-based
operations.
The
PCAOB's
impaired
ability
to
oversee
PCAOB-registered
audit
firms
in
China
may
result
in
inaccurate
or
incomplete
financial
records
of
an
issuer's
operations
within
China,
which
may
negatively
impact
the
Fund's
investments
in
such
companies.
Investment
in
China,
Hong
Kong
and
Taiwan
is
subject
to
certain
political
risks.
Following
the
establishment
of
the
People’s
Republic
of
China
by
the
Communist
Party
in
1949,
the
Chinese
government
renounced
various
debt
obligations
incurred
by
China’s
predecessor
governments,
which
obligations
remain
in
default,
and
expropriated
assets
without
compensation.
There
can
be
no
assurance
that
the
Chinese
government
will
not
take
similar
action
in
the
future.
An
investment
in
the
Fund
involves
risk
of
a
total
loss.The
political
reunification
of
China
and
Taiwan
is
a
highly
problematic
issue
and
is
unlikely
to
be
settled
in
the
near
future.
This
situation
poses
a
threat
to
Taiwan’s
economy
and
could
negatively
affect
its
stock
market.
The
equity
securities
of
China
companies
the
Fund
may
invest
in
include
securities
issued
by
Hong
Kong
and
Taiwan
domiciled
companies,
as
well
as
China
H
shares
(shares
of
China-incorporated,
Hong
Kong-listed
companies),
Shanghai
and
Shenzhen-listed
B
shares
(shares
of
China-incorporated
companies
that
are
traded
in
foreign
currencies
-
U.S.
Dollar
for
the
Shanghai
Stock
Exchange
and
Hong
Kong
dollar
for
the
Shenzhen
Stock
Exchange),
and
China
“red
chip”
shares
(shares
of
companies
based
in
Mainland
China
that
are
incorporated
outside
China
and
listed
in
Hong
Kong).
The
Fund
may
also
invest
in
eligible
China
A
shares
(shares
of
publicly
traded
companies
based
in
Mainland
China)
listed
and
traded
on
the
Shanghai
Stock
Exchange
("SSE")
through
the
Shanghai
–
Hong
Kong
Stock
Connect
program,
as
well
as
eligible
China
A
shares
listed
and
traded
on
the
Shenzhen
Stock
Exchange
(“SZSE”)
through
the
Shenzhen
–
Hong
Kong
Stock
Connect
program
(both
programs
collectively
referred
to
as
“Stock
Connect”).
The
Fund
may
also
invest
in
China
A
shares
through
any
other
means
permitted
by
applicable
law
or
regulation.
Chinese
variable
interest
entities
.
In
China,
equity
ownership
of
companies
by
foreign
individuals
and
entities
is
restricted
or
prohibited
in
certain
sectors,
such
as
internet,
media,
education
and
telecommunications.
To
circumvent
these
limits,
starting
in
the
early
2000s
many
Chinese
companies,
including
most
of
the
well-known
Chinese
Internet
companies,
have
used
a
special
structure
known
as
a
variable
interest
entity
(VIE)
to
raise
capital
from
foreign
investors.
In
a
typical
VIE
structure,
a
shell
company
is
set
up
in
an
offshore
jurisdiction,
such
as
the
Cayman
Islands.
The
shell
company,
through
a
wholly
foreign-owned
enterprise
(WFOE)
based
in
China,
enters
into
service
and
other
contracts
with
another
Chinese
company
known
as
the
VIE.
The
VIE
must
be
owned
by
Chinese
nationals
(and/or
other
Chinese
companies),
which
often
are
the
VIE’s
founders,
in
order
to
obtain
the
licenses
and/or
assets
required
to
operate
in
the
restricted
or
prohibited
industry
in
China.
The
contractual
arrangements
entered
into
between
the
WFOE
and
VIE
(which
often
include
powers
of
attorney,
loan
and
equity
pledge
agreements,
call
option
agreements
and
exclusive
services
or
business
cooperation
agreements)
are
designed
to
allow
the
shell
company
to
exert
a
degree
of
control
over,
and
obtain
economic
benefits
arising
from,
the
VIE
without
formal
legal
ownership.
The
contractual
arrangements
are
structured
to
require
the
shell
company
to
consolidate
the
VIE
into
its
financial
statements,
pursuant
to
U.S.
generally
accepted
accounting
principles,
despite
the
absence
of
equity
ownership.
Such
consolidation
provides
the
shell
company
with
the
ability
to
issue
shares
on
a
foreign
exchange,
such
as
the
New
York
SAI-4
Annual
Report
Stock
Exchange
or
NASDAQ,
often
with
the
same
name
as
the
VIE.
Accordingly,
foreign
investors,
such
as
the
Fund,
will
only
own
stock
in
the
shell
company
rather
than
directly
in
the
VIE.
Further,
the
ability
of
the
WFOE
to
easily
extract
profits
from
the
VIE
structure
through
service
agreements
will
partially
depend
on
the
proportion
of
the
business
that
can
legally
be
conducted
by
the
WFOE
versus
the
VIE,
which
varies
based
on
the
industry.
While
VIEs
are
a
longstanding
industry
practice
that
is
well
known
to
Chinese
officials
and
regulators,
historically
they
have
not
been
formally
recognized
under
Chinese
law.
In
late
December
2021,
the
China
Securities
Regulatory
Commission
(CSRC)
released
draft
rules
that
would
permit
the
use
of
VIE
structures,
provided
they
abide
by
Chinese
laws
and
register
with
the
CSRC.
The
new
draft
rules,
however,
may
cause
Chinese
companies
to
undergo
greater
scrutiny
and
may
make
the
process
to
create
VIEs
more
difficult
and
costly.
Guidance
or
further
rulemaking
prohibiting
or
restricting
these
structures
by
the
Chinese
government,
generally
or
with
respect
to
specific
industries,
would
likely
cause
impacted
VIE-structured
holding(s)
to
suffer
significant,
detrimental,
and
possibly
permanent
losses,
and
in
turn,
adversely
affect
the
Fund’s
returns
and
net
asset
value.
The
future
of
the
VIE
structure
generally
and
with
respect
to
certain
industries
remains
uncertain.
Further,
if
a
Chinese
court
or
arbitration
body
chose
not
to
enforce
the
contracts,
the
value
of
the
shell
company
would
significantly
decline,
since
it
derives
its
value
from
the
ability
to
consolidate
the
VIE
into
its
financials
pursuant
to
such
contracts,
and
in
turn,
adversely
affect
the
Fund’s
returns
and
net
asset
value.
The
contractual
arrangements
with
the
VIE
may
not
be
as
effective
in
providing
operational
control
as
direct
equity
ownership.
The
Chinese
equity
owner(s)
of
the
VIE
could
decide
to
breach
the
contractual
arrangement
and
may
have
conflicting
interests
and
fiduciary
duties
as
compared
to
investors
in
the
shell
company.
Accordingly,
VIEs
depend
heavily
on
executives
who
are
Chinese
nationals
and
own
the
underlying
business
licenses
and/or
assets
required
to
operate
in
China.
In
addition
to
creating
“key
person”
succession
risk,
the
structure
can
restrict
the
ability
of
outside
shareholders
to
challenge
executives
for
poor
decision-making,
weak
management,
or
equity-eroding
actions.
Any
breach
or
dispute
under
these
contracts
will
likely
fall
under
Chinese
jurisdiction
and
law.
IV.
For
all
Funds,
the
following
replaces
Robert
G.
Kubilis
in
the
section
“Officers
and
Trustees
–
Interested
Board
Members
and
Officers:”
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Please
keep
this
supplement
with
your
SAI
for
future
reference.
FVA-1
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
This
annual
report
for
Franklin
VolSmart
Allocation
VIP
Fund
covers
the
fiscal
year
ended
December
31,
2021
.
Class
5
Performance
Summary
as
of
December
31,
202
1
Average
annual
total
return
of
Class
5
shares*
represents
the
average
annual
change
in
value,
assuming
reinvestment
of
dividends
and
capital
gains.
Average
returns
smooth
out
variations
in
returns,
which
can
be
significant;
they
are
not
the
same
as
year-by-year
results.
*Prior
to
5/1/15,
the
Fund
followed
different
investment
strategies,
had
different
subadvisory
arrangements,
allocated
its
core
portfolio
differently,
had
a
different
current
target
volatility
goal
and
made
different
use
of
derivative
instruments.
As
a
result,
the
Fund
generally
held
different
investments
and
had
a
different
investment
profile.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
4/30/22.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
Performance
reflects
the
Fund’s
Class
5
operating
expenses,
but
does
not
include
any
contract
fees,
expenses
or
sales
charges.
If
they
had
been
included,
performance
would
be
lower.
These
charges
and
deductions,
particularly
for
variable
life
policies,
can
have
a
significant
effect
on
contract
values
and
insurance
benefits.
See
the
contract
prospectus
for
a
complete
description
of
these
expenses,
including
sales
charges.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
Share
Class
Average
Annual
Total
Return
1
–
5
1-Year
+17.36%
5-Year
+11.74%
Since
Inception
(4/1/13)
+7.49%
FVA-2
Annual
Report
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
(4/1/13–
12/31/2
1
)
The
graph
below
shows
the
change
in
value
of
a
hypothetical
$10,000
investment
in
the
Fund
over
the
indicated
period
and
includes
reinvestment
of
any
income
or
distributions.
The
Fund’s
performance*
is
compared
to
the
performance
of
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
the
Bloomberg
U.S.
Aggregate
Bond
Index
and
the
Fund’s
Blended
Benchmark,
a
combination
of
leading
stock
and
bond
indexes
that
better
reflects
the
asset
allocation
of
the
Fund’s
portfolio.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Please
see
Important
Notes
to
Performance
Information
preceding
the
Fund
Summaries.
**Source:
Morningstar.
Please
see
Index
Descriptions
following
the
Fund
Summaries.
***Source:
FactSet.
The
Fund’s
Blended
Benchmark
was
calculated
internally
and
was
composed
of
60%
S&P
500,
30%
Bloomberg
U.S.
Aggregate
Bond
Index
and
10%
Bloomberg
1-3
Month
U.S.
Treasury
Bill
Index.
Please
see
Index
Descriptions
following
the
Fund
Summaries.
FVA-3
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
Fund
Goal
and
Main
Investments
The
Fund
seeks
total
return
(including
income
and
capital
gains)
while
seeking
to
manage
volatility.
The
Fund
is
structured
as
a
limited
fund-of-funds
that
seeks
to
achieve
its
investment
goal
by
investing
its
assets
partially
in
other
mutual
funds,
which
include
other
Franklin
Templeton
and
Legg
Mason
mutual
funds
and
exchange-traded
funds
(ETFs)
and
third-party
ETFs
(underlying
funds).
Each
underlying
fund
is
allocated
to
the
equity,
fixed
income,
multi-
class
or
cash
asset
class
based
on
its
predominant
asset
class
and
strategies.
These
underlying
funds,
in
turn,
invest
in
a
variety
of
U.S.
and
foreign
equity,
fixed-income
and
money
market
securities.
The
Fund
also
obtains
exposure
to
certain
strategies
and
investments
in
its
core
portfolio
by
directly
investing
in
the
securities
and
instruments
in
that
strategy.
Fund
Risks
All
investments
involve
risks,
including
possible
loss
of
principal.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
There
can
be
no
guarantee
that
the
Fund
will
stay
within
its
Target
Volatility.
Also,
the
managed
volatility
strategy
could
negatively
impact
the
Fund’s
return
and
expose
the
Fund
to
additional
costs.
Generally,
investors
should
be
comfortable
with
fluctuation
in
the
value
of
their
investments,
especially
over
the
short
term.
Stock
prices
fluctuate,
sometimes
rapidly
and
dramatically,
due
to
factors
affecting
individual
companies,
particular
industries
or
sectors,
or
general
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Changes
in
the
financial
strength
of
a
bond
issuer
or
in
a
bond’s
credit
rating
may
affect
its
value.
Derivatives
involve
costs
and
can
create
economic
leverage
in
the
portfolio,
which
may
result
in
significant
volatility
and
cause
the
Fund
to
participate
in
losses
(as
well
as
gains)
in
an
amount
that
exceeds
the
Fund’s
initial
investment.
The
Fund
may
not
achieve
the
anticipated
benefits,
and
may
realize
losses
when
a
counterparty
fails
to
perform.
Because
the
Fund
allocates
assets
to
a
variety
of
investment
strategies,
ETFs
and
other
mutual
funds,
which
involve
certain
risks,
it
may
be
subject
to
those
same
risks.
The
Fund
is
actively
managed
but
there
is
no
guarantee
that
the
manager’s
investment
decisions
will
produce
the
desired
results.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
*The
portfolio
composition
is
based
on
the
Statement
of
Investments
(SOI),
which
classifies
each
underlying
fund
into
a
broad
asset
class.
Performance
Overview
You
can
find
the
Fund’s
one-year
total
return
in
the
Performance
Summary.
For
comparison,
the
Fund’s
equity
benchmark,
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
posted
a
+28.71%
total
return,
while
the
Fund’s
fixed
income
benchmark,
the
Bloomberg
U.S.
Aggregate
Bond
Index,
posted
a
-1.54%
total
return
for
the
period
under
review.
1
The
Fund’s
Blended
Benchmark,
a
combination
of
leading
stock
and
bond
indexes
that
better
reflects
the
asset
allocation
of
the
Fund’s
portfolio,
posted
a
+16.05%
total
return
for
the
same
period.
2
Economic
and
Market
Overview
U.S.
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
posted
a
+28.71%
total
return
for
the
12
months
ended
December
31,
2021.
1
Stocks
benefited
from
the
continued
economic
recovery,
monetary
and
fiscal
stimulus
measures,
rollout
of
highly
effective
COVID-19
vaccines,
implementation
of
vaccination
programs
and
easing
pandemic
restrictions.
As
many
businesses
reopened,
stimulus
payments
and
generally
high
household
savings
contributed
to
increased
consumer
spending.
A
rebound
in
corporate
earnings
and
the
passage
of
a
bipartisan
infrastructure
bill
further
bolstered
investor
sentiment,
helping
equities
to
reach
new
all-time
price
highs
late
in
the
12-month
period.
Gross
domestic
product
growth
was
robust
during
most
of
the
period,
as
the
lifting
of
many
COVID-19
restrictions
and
strong
consumer
spending
continued
to
support
the
economy.
Both
exports
and
imports
increased
significantly
in
an
environment
of
high
business
confidence
and
recovering
Portfolio
Composition
*
12/31/21
%
of
Total
Net
Assets
Common
Stocks
66.7%
Domestic
Fixed
Income
20.4%
Domestic
Hybrid
8.1%
Foreign
Equity
3.3%
Short-Term
Investments
&
Other
Net
Assets
1.5%
1.
Source:
Morningstar.
2.
Source:
FactSet.
The
Fund’s
Blended
Benchmark
was
calculated
internally
and
was
composed
of
60%
S&P
500,
30%
Bloomberg
U.S.
Aggregate
Bond
Index
and
10%
Bloomberg
1-3
Month
U.S.
Treasury
Bill
Index.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Please
see
Index
Descriptions
following
the
Fund
Summaries.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
Franklin
VolSmart
Allocation
VIP
Fund
FVA-4
Annual
Report
industrial
production.
The
continued
growth
of
the
economy
led
the
U.S.
to
surpass
its
pre-pandemic
output
in
2021’s
second
quarter.
The
inflation
rate
was
notably
elevated
during
the
12-month
period
amid
increased
demand
and
supply-chain
bottlenecks.
U.S.
consumer
spending
on
goods
remained
strong,
adding
to
pressure
on
the
prices
of
many
products.
Consequently,
the
personal
consumption
expenditures
index,
a
measure
of
inflation,
surged
during
the
period,
representing
the
highest
12-month
increase
in
decades.
The
unemployment
rate
declined
from
6.7%
in
December
2020
to
3.9%
in
December
2021
as
job
openings
increased,
but
a
relative
lack
of
available
workers
fueled
wage
growth,
adding
to
some
investors’
inflation
concerns.
In
an
effort
to
support
the
economy,
the
U.S.
Federal
Reserve
(Fed)
kept
the
federal
funds
target
rate
at
a
record-
low
range
of
0.00%–0.25%.
While
the
Fed
also
maintained
quantitative
easing
measures
with
U.S.
Treasury
and
mortgage
bond
purchasing,
it
began
to
reduce
the
rate
of
purchases
beginning
in
November
2021
and
accelerated
the
pace
of
tapering
in
December.
The
Fed
also
noted
that
it
expected
easing
supply
constraints
to
help
reduce
inflationary
pressures
and
that
further
employment
progress
was
needed
before
the
Fed
would
consider
raising
the
range
for
the
federal
funds
target
rate.
The
U.S.
bond
market,
as
measured
by
the
Bloomberg
U.S.
Aggregate
Bond
Index,
posted
a
-1.54%
total
return
for
the
12
months
ended
December
31,
2021.
1
As
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic,
investor
appetite
for
risk
increased
and
the
search
for
yield
intensified.
Consequently,
lower-rated
bonds
posted
greater
returns
than
higher-rated
bonds.
The
inflation
rate
rose
significantly
during
the
12-month
period
amid
increased
demand
and
supply-chain
bottlenecks.
Shorter-term
bonds
generally
outperformed
longer-term
bonds,
which
tend
to
be
more
sensitive
to
inflation.
U.S.
Treasury
bonds,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-2.32%
total
return
for
the
12-month
period.
1
The
10-year
U.S.
Treasury
yield
(which
moves
inversely
to
price)
was
relatively
low
as
the
period
began.
However,
yields
rose
thereafter
as
inflation
grew
and
many
investors
expected
future
interest-rate
increases
to
accelerate.
Mortgage-backed
securities
(MBS),
as
measured
by
the
Bloomberg
U.S.
MBS
Index,
posted
a
-1.04%
total
return
for
the
period.
1
Fed
action
was
a
catalyst
for
the
corporate
bond
market.
The
strengthening
economy
and
prospect
of
a
return
to
normal
conditions
tempered
concerns
about
credit
quality,
which
benefited
lower-rated
bonds.
In
this
environment,
high-yield
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
High
Yield
Bond
Index,
posted
a
+5.28%
total
return.
In
contrast,
investment-grade
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
declined
overall,
posting
a
-1.04%
total
return.
1
Investment
Strategy
Under
normal
market
conditions,
the
Fund
seeks
to
achieve
its
investment
goal
by
allocating
its
assets
across
certain
asset
classes,
sectors
and
strategies
in
an
attempt
to
produce
a
diversified
portfolio
that
will
generate
returns,
while
minimizing
the
expected
volatility
of
the
Fund’s
returns
so
that
volatility
does
not
exceed
a
target
of
10%
per
year.
(Volatility
within
the
10%
target
is
referred
to
as
“Target
Volatility.”)
The
Fund’s
assets
are
primarily
invested
in
its
“core
portfolio,”
which
is
principally
composed
of
various
U.S.
equity
and
fixed
income
investments
and
strategies,
including
investments
in
other
mutual
funds
and
ETFs
that
provide
exposure
to
such
investments
and
strategies.
In
addition,
the
Fund
employs
a
volatility
management
strategy,
which
is
designed
to
manage
the
expected
volatility
of
the
Fund’s
returns
so
that
volatility
remains
within
the
Fund’s
Target
Volatility.
Thus,
the
Fund
may
utilize
certain
derivative
instruments
(primarily
futures
contracts
on
indexes)
in
an
effort
to
adjust
the
Fund’s
expected
volatility
to
within
the
Target
Volatility.
There
is
no
guarantee
that
the
Fund
will
stay
within
its
Target
Volatility.
Manager’s
Discussion
Asset
Allocation
As
of
the
end
of
the
reporting
period,
at
the
asset
allocation
level,
the
Fund’s
equity
position
remained
near
the
upper
band
of
its
50%-70%
allocation
range,
with
fixed
income
at
Top
10
Holdings
12/31/21
Issuer
%
of
Total
Net
Assets
a
a
Franklin
Liberty
U.S.
Core
Bond
ETF
12.2%
Western
Asset
Core
Plus
Bond
Fund,
Class
IS
8.2%
Franklin
Income
VIP
Fund,
Class
1
8.1%
Microsoft
Corp.
3.5%
iShares
Core
MSCI
EAFE
ETF
3.3%
Accenture
plc
2.0%
Roper
Technologies,
Inc.
1.4%
Texas
Instruments,
Inc.
1.3%
UnitedHealth
Group,
Inc.
1.2%
Air
Products
and
Chemicals,
Inc.
1.2%
Franklin
VolSmart
Allocation
VIP
Fund
FVA-5
Annual
Report
the
lower
band
of
its
13%-33%
allocation
range
and
multi-
asset
class
consisting
of
equities
and
fixed
income
at
the
lower
band
of
its
5%-15%
allocation
range.
Equities
The
Fund’s
overweight
to
equites
and
underweight
to
fixed
income
relative
to
its
Blended
Benchmark
benefited
performance
as
U.S.
equity
markets
rallied
in
2021.
At
the
underlying
equity
strategy
level,
the
Franklin
Rising
Dividends
Strategy,
the
largest
underlying
equity
strategy
held
in
the
Fund,
gained
but
slightly
lagged
the
S&P
500,
detracting
from
relative
performance.
The
strategy’s
sector
positioning
was
beneficial,
though
cyclical
holdings
and
a
focus
on
dividend-paying
equities
limited
relative
gains.
The
Franklin
U.S.
Smart
Beta
Equity
Strategy
also
lagged
the
S&P
500,
as
its
focus
on
quality
and
value
factors
was
out
of
favor
relative
to
growth
for
the
majority
of
the
reporting
period.
Fixed
Income
The
Fund’s
underweight
to
fixed
income
benefited
performance
as
most
broad
measures
of
the
U.S.
fixed
income
market
finished
with
negative
total
returns.
At
the
underlying
fund
level,
Franklin
Strategic
Income
Fund
–
Class
R6
outperformed
the
Bloomberg
U.S.
Aggregate
Bond
Index
in
2021
due
in
part
to
sector
positioning
among
lower-
rated
corporate
credits,
including
selected
exposures
to
U.S.
high
yield
and
emerging
markets
sovereign
debt.
Multi-Asset
A
small
allocation
to
Franklin
Income
VIP
Fund
–
Class
1,
which
blends
equity
and
fixed
income
holdings,
generated
strong
current
income
and
produced
strong
absolute
returns.
A
sizable
allocation
to
equities
relative
to
fixed
income
benefited
performance.
In
addition,
equity
sector
positioning,
namely
in
financials
and
energy,
benefited
performance,
as
did
credit
selection,
as
below
investment-grade
debt
was
additive.
Hedging
The
Fund’s
risk-hedging
strategies
slightly
detracted
from
performance
during
a
period
of
mostly
low
volatility
and
positive
performance
by
risk
assets.
Positioning
Portfolio
positioning
was
additive
to
performance
during
the
reporting
period.
The
Fund
reduced
its
hedge
from
10%
to
6%
in
the
first
quarter
of
2021.
Profits
were
taken
in
the
Franklin
Rising
Dividends
Strategy
with
the
proceeds
reallocated
to
Franklin
Strategic
Income
–
Class
R6
and
Franklin
Liberty
U.S.
Core
Bond
Fund
ETF,
and
a
smaller
percentage
into
Franklin
Income
VIP
Fund
–
Class
1.
In
the
second
quarter,
the
weighting
in
the
Franklin
U.S.
Smart
Beta
Equity
Strategy
was
reduced
and
the
proceeds
allocated
to
Franklin
Low
Duration
Total
Return
Fund
–
Class
R6,
following
recommendations
from
the
Investment
Strategy
and
Research
Committee
to
decrease
equity
exposure.
During
the
reporting
period,
equity
diversification
was
increased
by
reinitiating
a
small
position
in
the
iShares
Core
MSCI
EAFE
ETF.
Later
in
the
reporting
period,
the
fixed
income
allocation
pivoted
into
strategies
that
more
closely
track
the
Bloomberg
U.S.
Aggregate
Bond
Index.
Western
Asset
Core
Plus
Bond
Fund
–
Class
S
was
added,
while
Franklin
Low
Duration
Total
Return
Fund
–
Class
R6
and
Franklin
Strategic
Income
Fund
–
Class
R6
were
liquidated.
Thank
you
for
your
participation
in
Franklin
VolSmart
Allocation
VIP
Fund
.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
December
31,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Class
5
Fund
Expenses
Franklin
VolSmart
Allocation
VIP
Fund
FVA-6
Annual
Report
As
an
investor
in
a
variable
insurance
contract
(Contract)
that
indirectly
provides
for
investment
in
an
underlying
mutual
fund,
you
can
incur
transaction
and/or
ongoing
expenses
at
both
the
Fund
level
and
the
Contract
Level:
(1)
transaction
expenses
can
include
sales
charges
(loads)
on
purchases,
surrender
fees,
transfer
fees
and
premium
taxes;
and
(2)
ongoing
expenses
can
include
management
fees,
distribution
and
service
(12b-1)
fees,
contract
fees,
annual
maintenance
fees,
mortality
and
expense
risk
fees
and
other
fees
and
expenses.
All
mutual
funds
and
Contracts
have
some
types
of
ongoing
expenses.
The
table
below
shows
Fund-level
ongoing
expenses
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds
offered
through
the
Contract.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
refer
to
the
Fund
prospectus
for
additional
information
on
operating
expenses.
Actual
Fund
Expenses
The
table
below
provides
information
about
the
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
ongoing
Fund
expenses
but
does
not
include
the
effect
of
ongoing
Contract
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
Fund-level
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
under
the
headings
“Actual”
and
“Fund-Level
Expenses
Paid
During
Period”
(
if
Fund-Level
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
estimated
expenses
paid
this
period
at
the
Fund
level
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Mutual
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
mutual
funds
offered
through
the
Contract.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds
offered
through
the
Contract.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
at
the
Fund
level
only
and
do
not
reflect
any
ongoing
expenses
at
the
Contract
level,
or
transaction
expenses
at
either
the
Fund
or
Contract
levels.
In
addition,
while
the
Fund
does
not
have
transaction
expenses,
if
the
transaction
and
ongoing
expenses
at
the
Contract
level
were
included,
the
expenses
shown
below
would
be
higher.
You
should
consult
your
Contract
prospectus
or
disclosure
document
for
more
information.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
any
ongoing
expenses
of
the
Contract
for
which
the
Fund
is
an
investment
option
or
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
7/1/21
Ending
Account
Value
12/31/21
Fund-Level
Expenses
Paid
During
Period
7/1/21–12/31/21
1,2
Ending
Account
Value
12/31/21
Fund-Level
Expenses
Paid
During
Period
7/1/21–12/31/21
1,2
a
Net
Annualized
Expense
Ratio
2
5
$1,000
$1,077.80
$4.18
$1,021.19
$4.06
0.80%
Franklin
Templeton
Variable
Insurance
Products
Trust
Financial
Highlights
Franklin
VolSmart
Allocation
VIP
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-7
a
Year
Ended
December
31,
2021
2020
2019
2018
2017
Class
2
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$14.55
$12.60
$10.82
$11.67
$10.10
Income
from
investment
operations
a
:
Net
investment
income
b,c
........................
0.26
0.24
0.22
0.21
0.16
Net
realized
and
unrealized
gains
(losses)
...........
2.19
1.86
1.70
(1.02)
1.41
Total
from
investment
operations
....................
2.45
2.10
1.92
(0.81)
1.57
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.64)
(0.15)
—
(0.04)
—
Net
realized
gains
.............................
(0.79)
—
(0.14)
—
—
Total
distributions
...............................
(1.43)
(0.15)
(0.14)
(0.04)
—
Net
asset
value,
end
of
year
.......................
$15.57
$14.55
$12.60
$10.82
$11.67
Total
return
d
...................................
17.62%
16.85%
17.82%
(6.93)%
15.54%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
e
.....
0.88%
0.88%
1.12%
1.10%
1.14%
Expenses
net
of
waiver
and
payments
by
affiliates
e,
f
.....
0.65%
0.65%
0.90%
0.75%
0.73%
Net
investment
income
c
...........................
1.75%
1.85%
1.87%
1.85%
1.44%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$48
$45
$39
$33
$36
Portfolio
turnover
rate
............................
41.28%
69.19%
4.99%
6.28%
5.69%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Recognition
of
net
investment
income
by
the
Fund
is
affected
by
the
timing
of
declaration
of
dividends
by
the
Underlying
Funds
and
exchange
traded
funds
in
which
the
Fund
invests.
d
Total
return
does
not
include
fees,
charges
or
expenses
imposed
by
the
variable
annuity
and
life
insurance
contracts
for
which
Franklin
Templeton
Variable
Insurance
Products
Trust
serves
as
an
underlying
investment
vehicle.
e
Does
not
include
expenses
of
the
Underlying
Funds
in
which
the
Fund
invests.
The
weighted
average
indirect
expenses
of
the
Underlying
Funds
was
0.10%
for
the
year
ended
December
31,
2021.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Templeton
Variable
Insurance
Products
Trust
Financial
Highlights
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-8
a
Year
Ended
December
31,
2021
2020
2019
2018
2017
Class
5
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$14.52
$12.59
$10.80
$11.65
$10.07
Income
from
investment
operations
a
:
Net
investment
income
b,c
........................
0.23
0.23
0.23
0.22
0.17
Net
realized
and
unrealized
gains
(losses)
...........
2.18
1.86
1.70
(1.01)
1.41
Total
from
investment
operations
....................
2.41
2.09
1.93
(0.79)
1.58
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.62)
(0.16)
—
(0.06)
—
Net
realized
gains
.............................
(0.79)
—
(0.14)
—
—
Total
distributions
...............................
(1.41)
(0.16)
(0.14)
(0.06)
—
Net
asset
value,
end
of
year
.......................
$15.52
$14.52
$12.59
$10.80
$11.65
Total
return
d
...................................
17.36%
16.78%
17.95%
(6.85)%
15.69%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
e
.....
1.03%
1.03%
1.02%
1.00%
1.04%
Expenses
net
of
waiver
and
payments
by
affiliates
e,
f
.....
0.80%
0.80%
0.80%
0.65%
0.63%
Net
investment
income
...........................
1.57%
1.70%
1.97%
1.95%
1.54%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$209,784
$195,818
$185,381
$171,173
$188,240
Portfolio
turnover
rate
............................
41.28%
69.19%
4.99%
6.28%
5.69%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Recognition
of
net
investment
income
by
the
Fund
is
affected
by
the
timing
of
declaration
of
dividends
by
the
Underlying
Funds
and
exchange
traded
funds
in
which
the
Fund
invests.
d
Total
return
does
not
include
fees,
charges
or
expenses
imposed
by
the
variable
annuity
and
life
insurance
contracts
for
which
Franklin
Templeton
Variable
Insurance
Products
Trust
serves
as
an
underlying
investment
vehicle.
e
Does
not
include
expenses
of
the
Underlying
Funds
in
which
the
Fund
invests.
The
weighted
average
indirect
expenses
of
the
Underlying
Funds
was
0.10%
for
the
year
ended
December
31,
2021.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments,
December
31,
2021
Franklin
VolSmart
Allocation
VIP
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-9
a
a
Shares
a
Value
a
Common
Stocks
66.7%
Aerospace
&
Defense
1.8%
General
Dynamics
Corp.
..............................................
5,145
$
1,072,578
Huntington
Ingalls
Industries,
Inc.
.......................................
419
78,244
Lockheed
Martin
Corp.
...............................................
1,929
685,586
Northrop
Grumman
Corp.
.............................................
1,212
469,129
Raytheon
Technologies
Corp.
..........................................
18,060
1,554,244
3,859,781
Air
Freight
&
Logistics
1.3%
CH
Robinson
Worldwide,
Inc.
..........................................
1,467
157,893
Expeditors
International
of
Washington,
Inc.
...............................
1,888
253,540
United
Parcel
Service,
Inc.,
B
..........................................
10,424
2,234,280
2,645,713
Auto
Components
0.1%
Gentex
Corp.
......................................................
2,793
97,336
Banks
0.5%
JPMorgan
Chase
&
Co.
...............................................
6,420
1,016,607
People's
United
Financial,
Inc.
..........................................
2,488
44,336
1,060,943
Beverages
1.4%
a
Boston
Beer
Co.,
Inc.
(The),
A
..........................................
60
30,306
Coca-Cola
Co.
(The)
.................................................
12,435
736,276
a
Monster
Beverage
Corp.
..............................................
3,632
348,817
PepsiCo,
Inc.
......................................................
10,967
1,905,078
3,020,477
Biotechnology
2.3%
AbbVie,
Inc.
.......................................................
11,802
1,597,991
Amgen,
Inc.
.......................................................
3,306
743,751
a
Biogen,
Inc.
.......................................................
1,573
377,394
Gilead
Sciences,
Inc.
................................................
9,397
682,316
a
Moderna
,
Inc.
......................................................
1,735
440,655
a
Regeneron
Pharmaceuticals,
Inc.
.......................................
846
534,266
a
United
Therapeutics
Corp.
.............................................
180
38,894
a
Vertex
Pharmaceuticals,
Inc.
...........................................
1,801
395,500
4,810,767
Building
Products
1.2%
A
O
Smith
Corp.
....................................................
963
82,673
Allegion
plc
........................................................
682
90,324
Carlisle
Cos.,
Inc.
...................................................
2,825
700,939
Johnson
Controls
International
plc
.......................................
17,122
1,392,190
Lennox
International,
Inc.
.............................................
296
96,011
a
Trex
Co.,
Inc.
......................................................
803
108,429
2,470,566
Capital
Markets
1.4%
Cboe
Global
Markets,
Inc.
.............................................
247
32,209
Evercore
,
Inc.,
A
....................................................
280
38,038
FactSet
Research
Systems,
Inc.
........................................
402
195,376
Invesco
Ltd.
.......................................................
3,268
75,229
Jefferies
Financial
Group,
Inc.
..........................................
1,479
57,385
Lazard
Ltd.,
A
......................................................
1,088
47,470
Moody's
Corp.
......................................................
1,430
558,529
Nasdaq,
Inc.
.......................................................
4,210
884,142
S&P
Global,
Inc.
....................................................
1,449
683,827
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-10
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Capital
Markets
(continued)
SEI
Investments
Co.
.................................................
1,085
$
66,120
T
Rowe
Price
Group,
Inc.
.............................................
1,797
353,362
2,991,687
Chemicals
4.1%
Air
Products
and
Chemicals,
Inc.
........................................
8,034
2,444,425
Albemarle
Corp.
....................................................
6,510
1,521,843
Celanese
Corp.
.....................................................
1,020
171,421
Dow,
Inc.
.........................................................
3,496
198,293
Ecolab,
Inc.
........................................................
4,475
1,049,790
Huntsman
Corp.
....................................................
1,424
49,669
Linde
plc
..........................................................
6,935
2,402,492
LyondellBasell
Industries
NV,
A
.........................................
3,256
300,301
NewMarket
Corp.
...................................................
76
26,047
Sherwin-Williams
Co.
(The)
............................................
1,500
528,240
8,692,521
Commercial
Services
&
Supplies
1.0%
Cintas
Corp.
.......................................................
3,821
1,693,352
a
Copart
,
Inc.
........................................................
2,139
324,315
Rollins,
Inc.
........................................................
2,460
84,157
2,101,824
Communications
Equipment
0.8%
a
Arista
Networks,
Inc.
.................................................
1,546
222,238
Cisco
Systems,
Inc.
.................................................
11,874
752,455
a
F5,
Inc.
...........................................................
621
151,965
Motorola
Solutions,
Inc.
...............................................
1,692
459,716
1,586,374
Construction
&
Engineering
0.0%
†
Quanta
Services,
Inc.
................................................
577
66,159
Construction
Materials
0.0%
†
Eagle
Materials,
Inc.
.................................................
171
28,465
Consumer
Finance
0.1%
Synchrony
Financial
.................................................
2,575
119,454
Containers
&
Packaging
0.2%
Amcor
plc
.........................................................
6,646
79,818
Avery
Dennison
Corp.
................................................
577
124,961
International
Paper
Co.
...............................................
2,413
113,363
Packaging
Corp.
of
America
...........................................
940
127,981
Silgan
Holdings,
Inc.
.................................................
349
14,951
461,074
Distributors
0.2%
Genuine
Parts
Co.
..................................................
612
85,802
Pool
Corp.
........................................................
444
251,304
337,106
Diversified
Consumer
Services
0.0%
†
a
Grand
Canyon
Education,
Inc.
..........................................
287
24,599
H&R
Block,
Inc.
.....................................................
2,186
51,502
76,101
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-11
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Diversified
Telecommunication
Services
0.7%
AT&T,
Inc.
.........................................................
27,992
$
688,603
Verizon
Communications,
Inc.
..........................................
12,951
672,934
1,361,537
Electric
Utilities
0.6%
Alliant
Energy
Corp.
.................................................
2,255
138,615
American
Electric
Power
Co.,
Inc.
.......................................
3,440
306,057
Evergy
,
Inc.
........................................................
1,942
133,241
Hawaiian
Electric
Industries,
Inc.
........................................
1,045
43,367
NRG
Energy,
Inc.
...................................................
672
28,950
OGE
Energy
Corp.
..................................................
839
32,201
Southern
Co.
(The)
..................................................
8,809
604,121
1,286,552
Electrical
Equipment
1.0%
Acuity
Brands,
Inc.
..................................................
145
30,699
Eaton
Corp.
plc
.....................................................
2,154
372,254
Emerson
Electric
Co.
................................................
6,049
562,376
a
Generac
Holdings,
Inc.
...............................................
418
147,103
Hubbell,
Inc.
.......................................................
299
62,273
nVent
Electric
plc
...................................................
12,370
470,060
Rockwell
Automation,
Inc.
.............................................
1,270
443,039
2,087,804
Electronic
Equipment,
Instruments
&
Components
0.0%
†
a
Keysight
Technologies,
Inc.
............................................
434
89,625
a
Entertainment
0.3%
Activision
Blizzard,
Inc.
...............................................
4,878
324,533
Electronic
Arts,
Inc.
..................................................
1,796
236,893
a
Skillz
,
Inc.
.........................................................
741
5,513
World
Wrestling
Entertainment,
Inc.,
A
....................................
191
9,424
576,363
Equity
Real
Estate
Investment
Trusts
(REITs)
0.8%
CubeSmart
........................................................
851
48,431
Extra
Space
Storage,
Inc.
.............................................
732
165,966
Life
Storage,
Inc.
....................................................
331
50,703
National
Retail
Properties,
Inc.
.........................................
1,891
90,900
a
Orion
Office
REIT,
Inc.
................................................
394
7,356
Public
Storage
.....................................................
1,840
689,190
Realty
Income
Corp.
.................................................
3,902
279,344
SL
Green
Realty
Corp.
...............................................
312
22,370
Spirit
Realty
Capital,
Inc.
..............................................
1,169
56,334
STORE
Capital
Corp.
................................................
2,325
79,980
VICI
Properties,
Inc.
.................................................
3,187
95,961
WP
Carey,
Inc.
.....................................................
1,694
138,993
1,725,528
Food
&
Staples
Retailing
1.4%
Casey's
General
Stores,
Inc.
...........................................
355
70,059
Costco
Wholesale
Corp.
..............................................
1,203
682,943
Kroger
Co.
(The)
....................................................
6,751
305,550
Walgreens
Boots
Alliance,
Inc.
.........................................
7,298
380,664
Walmart,
Inc.
......................................................
10,948
1,584,066
3,023,282
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-12
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Food
Products
1.4%
Archer-Daniels-Midland
Co.
...........................................
2,283
$
154,308
Bunge
Ltd.
........................................................
570
53,215
Campbell
Soup
Co.
..................................................
1,322
57,454
Conagra
Brands,
Inc.
................................................
1,959
66,900
Flowers
Foods,
Inc.
..................................................
2,027
55,682
General
Mills,
Inc.
...................................................
6,635
447,066
Hershey
Co.
(The)
..................................................
1,704
329,673
Hormel
Foods
Corp.
.................................................
2,943
143,648
Ingredion,
Inc.
......................................................
676
65,329
J
M
Smucker
Co.
(The)
...............................................
1,048
142,339
Kellogg
Co.
........................................................
2,313
149,004
McCormick
&
Co.,
Inc.
...............................................
10,620
1,025,998
Tyson
Foods,
Inc.,
A
.................................................
2,944
256,599
2,947,215
Gas
Utilities
0.0%
†
National
Fuel
Gas
Co.
................................................
396
25,320
UGI
Corp.
.........................................................
912
41,870
67,190
Health
Care
Equipment
&
Supplies
3.7%
Abbott
Laboratories
..................................................
11,240
1,581,918
Becton
Dickinson
and
Co.
.............................................
5,930
1,491,277
Cooper
Cos.,
Inc.
(The)
...............................................
111
46,502
a
Hologic
,
Inc.
.......................................................
584
44,711
a
IDEXX
Laboratories,
Inc.
..............................................
579
381,248
Medtronic
plc
......................................................
13,600
1,406,920
a
Quidel
Corp.
.......................................................
230
31,048
ResMed
,
Inc.
......................................................
1,465
381,603
Stryker
Corp.
......................................................
8,845
2,365,330
7,730,557
Health
Care
Providers
&
Services
1.8%
Cardinal
Health,
Inc.
.................................................
1,269
65,341
Chemed
Corp.
.....................................................
157
83,059
CVS
Health
Corp.
...................................................
8,742
901,825
a
Laboratory
Corp.
of
America
Holdings
....................................
392
123,170
Premier,
Inc.,
A
.....................................................
856
35,241
Quest
Diagnostics,
Inc.
...............................................
757
130,969
UnitedHealth
Group,
Inc.
..............................................
4,879
2,449,941
3,789,546
Health
Care
Technology
0.1%
Cerner
Corp.
.......................................................
2,839
263,658
Hotels,
Restaurants
&
Leisure
0.9%
McDonald's
Corp.
...................................................
7,322
1,962,809
Household
Durables
0.5%
DR
Horton,
Inc.
.....................................................
2,480
268,956
Garmin
Ltd.
........................................................
1,574
214,332
Lennar
Corp.,
A
.....................................................
1,162
134,978
a
NVR,
Inc.
.........................................................
33
194,993
PulteGroup,
Inc.
....................................................
2,321
132,668
Whirlpool
Corp.
.....................................................
273
64,062
1,009,989
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-13
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Household
Products
1.6%
Church
&
Dwight
Co.,
Inc.
.............................................
2,517
$
257,992
Colgate-Palmolive
Co.
...............................................
10,825
923,806
Kimberly-Clark
Corp.
.................................................
1,529
218,525
Procter
&
Gamble
Co.
(The)
...........................................
11,750
1,922,065
3,322,388
Industrial
Conglomerates
2.5%
3M
Co.
...........................................................
3,810
676,770
Honeywell
International,
Inc.
...........................................
7,535
1,571,123
Roper
Technologies,
Inc.
..............................................
5,935
2,919,189
5,167,082
Insurance
0.4%
Assured
Guaranty
Ltd.
...............................................
305
15,311
Erie
Indemnity
Co.,
A
.................................................
2,340
450,824
Old
Republic
International
Corp.
........................................
1,220
29,988
Progressive
Corp.
(The)
..............................................
4,023
412,961
909,084
Interactive
Media
&
Services
0.7%
a
Alphabet,
Inc.,
A
....................................................
118
341,851
a
Alphabet,
Inc.,
C
....................................................
111
321,188
a
Meta
Platforms,
Inc.,
A
...............................................
2,055
691,200
1,354,239
Internet
&
Direct
Marketing
Retail
0.1%
eBay,
Inc.
.........................................................
4,057
269,791
Qurate
Retail,
Inc.,
A
.................................................
2,414
18,346
288,137
IT
Services
4.4%
Accenture
plc,
A
....................................................
9,923
4,113,580
a
Akamai
Technologies,
Inc.
.............................................
1,041
121,839
Amdocs
Ltd.
.......................................................
1,402
104,926
Automatic
Data
Processing,
Inc.
........................................
2,816
694,369
Cognizant
Technology
Solutions
Corp.,
A
..................................
5,052
448,213
a
EPAM
Systems,
Inc.
.................................................
241
161,096
International
Business
Machines
Corp.
...................................
5,360
716,418
Jack
Henry
&
Associates,
Inc.
..........................................
794
132,590
Mastercard
,
Inc.,
A
..................................................
2,140
768,945
Paychex,
Inc.
......................................................
3,614
493,311
Visa,
Inc.,
A
........................................................
7,170
1,553,811
Western
Union
Co.
(The)
..............................................
1,022
18,232
9,327,330
Leisure
Products
0.0%
†
Brunswick
Corp.
....................................................
335
33,744
Polaris,
Inc.
........................................................
258
28,357
62,101
Life
Sciences
Tools
&
Services
1.7%
a
Bio-Rad
Laboratories,
Inc.,
A
...........................................
123
92,935
a
Mettler
-Toledo
International,
Inc.
........................................
252
427,697
Thermo
Fisher
Scientific,
Inc.
..........................................
1,030
687,257
a
Waters
Corp.
......................................................
433
161,336
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-14
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
(continued)
West
Pharmaceutical
Services,
Inc.
......................................
4,524
$
2,121,801
3,491,026
Machinery
2.0%
Allison
Transmission
Holdings,
Inc.
......................................
997
36,241
Cummins,
Inc.
......................................................
1,599
348,806
Donaldson
Co.,
Inc.
.................................................
6,640
393,486
Dover
Corp.
.......................................................
6,729
1,221,986
Graco
,
Inc.
........................................................
1,705
137,457
Illinois
Tool
Works,
Inc.
...............................................
2,831
698,691
Lincoln
Electric
Holdings,
Inc.
..........................................
390
54,393
PACCAR,
Inc.
......................................................
2,699
238,214
Pentair
plc
........................................................
10,665
778,865
Snap-on,
Inc.
......................................................
515
110,921
Toro
Co.
(The)
.....................................................
1,170
116,895
4,135,955
Media
0.5%
Comcast
Corp.,
A
...................................................
13,101
659,374
Fox
Corp.,
A
.......................................................
1,361
50,221
Interpublic
Group
of
Cos.,
Inc.
(The)
.....................................
3,809
142,647
Omnicom
Group,
Inc.
................................................
2,338
171,305
1,023,547
Metals
&
Mining
0.4%
a
Cleveland-Cliffs,
Inc.
.................................................
1,160
25,253
Newmont
Corp.
.....................................................
5,106
316,674
Nucor
Corp.
.......................................................
2,835
323,615
Reliance
Steel
&
Aluminum
Co.
.........................................
529
85,814
Southern
Copper
Corp.
...............................................
497
30,670
Steel
Dynamics,
Inc.
.................................................
2,009
124,699
United
States
Steel
Corp.
.............................................
674
16,048
922,773
Multiline
Retail
1.4%
Dollar
General
Corp.
.................................................
2,492
587,688
Target
Corp.
.......................................................
10,036
2,322,732
2,910,420
Multi-Utilities
0.3%
Ameren
Corp.
......................................................
2,077
184,874
Consolidated
Edison,
Inc.
.............................................
3,275
279,423
WEC
Energy
Group,
Inc.
..............................................
1,992
193,363
657,660
Oil,
Gas
&
Consumable
Fuels
0.7%
Chevron
Corp.
.....................................................
5,575
654,226
Coterra
Energy,
Inc.
.................................................
4,878
92,682
EOG
Resources,
Inc.
................................................
5,245
465,914
Exxon
Mobil
Corp.
...................................................
5,320
325,531
Texas
Pacific
Land
Corp.
..............................................
14
17,484
1,555,837
Paper
&
Forest
Products
0.0%
†
Louisiana-Pacific
Corp.
...............................................
489
38,313
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-15
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Paper
&
Forest
Products
(continued)
a
Sylvamo
Corp.
.....................................................
219
$
6,108
44,421
Personal
Products
0.4%
Estee
Lauder
Cos.,
Inc.
(The),
A
........................................
1,960
725,592
Pharmaceuticals
3.0%
Bristol-Myers
Squibb
Co.
..............................................
11,666
727,375
Eli
Lilly
&
Co.
......................................................
2,660
734,745
Johnson
&
Johnson
.................................................
11,201
1,916,155
Merck
&
Co.,
Inc.
...................................................
8,596
658,797
Organon
&
Co.
.....................................................
1,329
40,468
Pfizer,
Inc.
.........................................................
24,029
1,418,913
Zoetis,
Inc.
........................................................
2,928
714,520
6,210,973
Professional
Services
0.1%
Booz
Allen
Hamilton
Holding
Corp.
......................................
1,135
96,237
a
FTI
Consulting,
Inc.
..................................................
225
34,519
ManpowerGroup
,
Inc.
................................................
236
22,970
Robert
Half
International,
Inc.
..........................................
1,350
150,552
304,278
Road
&
Rail
1.3%
AMERCO
.........................................................
39
28,323
JB
Hunt
Transport
Services,
Inc.
........................................
2,602
531,849
Knight-Swift
Transportation
Holdings,
Inc.
.................................
381
23,218
Landstar
System,
Inc.
................................................
412
73,756
Norfolk
Southern
Corp.
...............................................
3,275
975,000
Old
Dominion
Freight
Line,
Inc.
.........................................
832
298,172
Ryder
System,
Inc.
..................................................
121
9,974
Schneider
National,
Inc.,
B
............................................
388
10,441
Union
Pacific
Corp.
..................................................
2,782
700,870
2,651,603
Semiconductors
&
Semiconductor
Equipment
4.6%
Analog
Devices,
Inc.
.................................................
12,474
2,192,555
Applied
Materials,
Inc.
................................................
4,451
700,409
Intel
Corp.
.........................................................
13,485
694,478
KLA
Corp.
.........................................................
1,618
695,918
Lam
Research
Corp.
.................................................
968
696,137
Monolithic
Power
Systems,
Inc.
.........................................
301
148,492
QUALCOMM,
Inc.
...................................................
3,603
658,881
Skyworks
Solutions,
Inc.
..............................................
1,895
293,990
Teradyne,
Inc.
......................................................
883
144,397
Texas
Instruments,
Inc.
...............................................
14,907
2,809,522
Xilinx,
Inc.
.........................................................
2,594
550,006
9,584,785
Software
4.8%
a
Adobe,
Inc.
........................................................
983
557,420
a
Aspen
Technology,
Inc.
...............................................
609
92,690
a
Cadence
Design
Systems,
Inc.
.........................................
657
122,432
a
Fair
Isaac
Corp.
....................................................
174
75,459
a
Fortinet,
Inc.
.......................................................
931
334,601
Intuit,
Inc.
.........................................................
1,022
657,371
a
Manhattan
Associates,
Inc.
............................................
144
22,390
Microsoft
Corp.
.....................................................
22,090
7,429,309
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-16
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Software
(continued)
Oracle
Corp.
.......................................................
7,553
$
658,697
a
Zoom
Video
Communications,
Inc.,
A
....................................
936
172,140
10,122,509
Specialty
Retail
2.8%
a
AutoNation,
Inc.
....................................................
208
24,305
a
AutoZone,
Inc.
.....................................................
219
459,109
Best
Buy
Co.,
Inc.
...................................................
2,814
285,902
Dick's
Sporting
Goods,
Inc.
............................................
318
36,567
Foot
Locker,
Inc.
....................................................
1,266
55,236
Home
Depot,
Inc.
(The)
...............................................
1,617
671,071
Lowe's
Cos.,
Inc.
....................................................
8,518
2,201,733
a
O'Reilly
Automotive,
Inc.
..............................................
761
537,441
Penske
Automotive
Group,
Inc.
.........................................
147
15,761
Ross
Stores,
Inc.
...................................................
9,700
1,108,516
Tractor
Supply
Co.
..................................................
1,335
318,531
a
Victoria's
Secret
&
Co.
...............................................
199
11,053
Williams-Sonoma,
Inc.
...............................................
933
157,798
5,883,023
Technology
Hardware,
Storage
&
Peripherals
0.8%
Apple,
Inc.
........................................................
3,965
704,065
a
Dell
Technologies,
Inc.,
C
.............................................
627
35,218
Hewlett
Packard
Enterprise
Co.
.........................................
5,780
91,151
HP,
Inc.
...........................................................
15,903
599,066
NetApp,
Inc.
.......................................................
2,488
228,871
1,658,371
Textiles,
Apparel
&
Luxury
Goods
1.1%
Carter's,
Inc.
.......................................................
460
46,561
NIKE,
Inc.,
B
.......................................................
13,139
2,189,877
2,236,438
Thrifts
&
Mortgage
Finance
0.0%
†
New
York
Community
Bancorp,
Inc.
......................................
1,941
23,700
Tobacco
0.7%
Altria
Group,
Inc.
....................................................
15,138
717,390
Philip
Morris
International,
Inc.
.........................................
7,612
723,140
1,440,530
Trading
Companies
&
Distributors
0.8%
Fastenal
Co.
.......................................................
6,745
432,085
MSC
Industrial
Direct
Co.,
Inc.,
A
........................................
465
39,088
Watsco
,
Inc.
.......................................................
354
110,759
WW
Grainger,
Inc.
...................................................
1,947
1,009,013
1,590,945
Total
Common
Stocks
(Cost
$76,634,408)
......................................
139,952,750
a
Investments
In
Underlying
Funds
and
Exchange
Traded
Funds
31.8%
Domestic
Fixed
Income
20.4%
b
Franklin
Liberty
U.S.
Core
Bond
ETF
.....................................
1,022,500
25,689,597
b
Western
Asset
Core
Plus
Bond
Fund,
Class
IS
.............................
1,438,974
17,152,572
42,842,169
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-17
a
a
Shares
a
Value
a
Investments
In
Underlying
Funds
and
Exchange
Traded
Funds
(continued)
Domestic
Hybrid
8.1%
b
Franklin
Income
VIP
Fund,
Class
1
......................................
972,363
$
16,987,187
Foreign
Equity
3.3%
iShares
Core
MSCI
EAFE
ETF
.........................................
91,662
6,841,652
Total
Investments
In
Underlying
Funds
and
Exchange
Traded
Funds
(Cost
$66,759,343)
................................................................
66,671,008
Total
Long
Term
Investments
(Cost
$143,393,751)
...............................
206,623,758
a
a
a
a
a
Short
Term
Investments
1.9%
a
Money
Market
Funds
1.9%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
...................
4,067,757
4,067,757
Total
Money
Market
Funds
(Cost
$4,067,757)
...................................
4,067,757
Total
Short
Term
Investments
(Cost
$4,067,757
)
.................................
4,067,757
a
Total
Investments
(Cost
$147,461,508)
100.4%
..................................
$210,691,515
Other
Assets,
less
Liabilities
(0.4)%
...........................................
(859,793)
Net
Assets
100.0%
...........................................................
$209,831,722
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
3(e)
regarding
investments
in
FT
Underlying
Funds.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Templeton
Variable
Insurance
Products
Trust
Statement
of
Investments
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-18
At
December
31,
2021,
the
Fund
had
the
following total
return swap
contracts
outstanding.
See
Note
1(c).
Total
Return
Swap
Contracts
Underlying
Instruments
Financing
Rate
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Value
*
Value/
Unrealized
Appreciation
(Depreciation)
OTC
Swap
Contracts
Long
Dynamic
VIX
Backwardation
(BEFSDVB1
Index)
..
—
Monthly
BZWS
3/01/22
4,200,000
$
(33)
Total
Return
Swap
Contracts
....................................................................
$(33)
*
In
U.S.
dollars
unless
otherwise
indicated.
See
Note 8 regarding
other
derivative
information.
See
A
bbreviations
on
page
FVA-
30
.
Franklin
Templeton
Variable
Insurance
Products
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
December
31,
2021
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-19
Franklin
VolSmart
Allocation
VIP
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$83,618,213
Cost
-
Non-controlled
affiliates
(Not
e
3e)
........................................................
63,843,295
Value
-
Unaffiliated
issuers
..................................................................
$146,794,402
Value
-
Non-controlled
affiliates
(Not
e
3e)
.......................................................
63,897,113
Cash
....................................................................................
1,605
Receivables:
Capital
shares
sold
........................................................................
1,422
Dividend
s
...............................................................................
134,593
Total
assets
..........................................................................
210,829,135
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
845,809
Management
fees
.........................................................................
85,338
Distribution
fees
..........................................................................
26,395
Unrealized
depreciation
on
OTC
swap
contracts
....................................................
33
Accrued
expenses
and
other
liabilities
...........................................................
39,838
Total
liabilities
.........................................................................
997,413
Net
assets,
at
value
.................................................................
$209,831,722
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$128,522,419
Total
distributable
earnings
(losses)
.............................................................
81,309,303
Net
assets,
at
value
.................................................................
$209,831,722
Franklin
VolSmart
Allocation
VIP
Fund
Class
2:
Net
assets,
at
value
.......................................................................
$47,677
Shares
outstanding
........................................................................
3,061
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$15.57
Class
5:
Net
assets,
at
value
.......................................................................
$209,784,045
Shares
outstanding
........................................................................
13,516,159
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$15.52
Franklin
Templeton
Variable
Insurance
Products
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
December
31,
2021
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
FVA-20
Franklin
VolSmart
Allocation
VIP
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$2)
Unaffiliated
issuers
........................................................................
$2,561,869
Non-controlled
affiliates
(
Note
3e)
.............................................................
2,285,364
Total
investment
income
...................................................................
4,847,233
Expenses:
Management
fees
(Note
3
a
)
...................................................................
1,634,841
Distribution
fees:
(Note
3c
)
Class
5
................................................................................
306,464
Custodian
fees
(Note
4
)
......................................................................
2,845
Reports
to
shareholders
fees
..................................................................
18,781
Professional
fees
...........................................................................
105,014
Trustees'
fees
and
expenses
..................................................................
2,893
Other
....................................................................................
30,898
Total
expenses
.........................................................................
2,101,736
Expense
reductions
(Note
4
)
...............................................................
(248)
Expenses
waived/paid
by
affiliates
(Note
3e
and
3f)
..............................................
(469,048)
Net
expenses
.........................................................................
1,632,440
Net
investment
income
................................................................
3,214,793
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
15,324,491
Non-controlled
affiliates
(
N
ote
3e)
...........................................................
1,792,054
Futures
contracts
.........................................................................
(1,524,228)
Swap
contracts
...........................................................................
20,919
Capital
gain
distributions
from
Underlying
Funds:
Non-controlled
affiliates
(Note
3e)
...........................................................
52,514
Net
realized
gain
(loss)
..................................................................
15,665,750
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
14,800,920
Non-controlled
affiliates
(Note
3e)
...........................................................
(1,267,691)
Futures
contracts
.........................................................................
325,338
Swap
contracts
...........................................................................
447
Net
change
in
unrealized
appreciation
(depreciation)
............................................
13,859,014
Net
realized
and
unrealized
gain
(loss)
............................................................
29,524,764
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$32,739,557
Franklin
Templeton
Variable
Insurance
Products
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
FVA-21
Franklin
VolSmart
Allocation
VIP
Fund
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$3,214,793
$3,086,186
Net
realized
gain
(loss)
.................................................
15,665,750
15,170,163
Net
change
in
unrealized
appreciation
(depreciation)
...........................
13,859,014
9,681,207
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
32,739,557
27,937,556
Distributions
to
shareholders:
Class
2
.............................................................
(4,360)
(470)
Class
5
.............................................................
(18,228,062)
(2,132,195)
Total
distributions
to
shareholders
..........................................
(18,232,422)
(2,132,665)
Capital
share
transactions:
(Note
2
)
Class
5
.............................................................
(537,826)
(15,361,900)
Total
capital
share
transactions
............................................
(537,826)
(15,361,900)
Net
increase
(decrease)
in
net
assets
...................................
13,969,309
10,442,991
Net
assets:
Beginning
of
year
.......................................................
195,862,413
185,419,422
End
of
year
...........................................................
$209,831,722
$195,862,413
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
Franklin
VolSmart
Allocation
VIP
Fund
FVA-22
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Templeton
Variable
Insurance
Products
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
eighteen separate
funds
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
Franklin
VolSmart
Allocation
VIP
Fund
(Fund)
is
included
in
this
report.
The
Fund
invests
a
large
percentage
of
its
assets
in
mutual
funds
(Underlying
Funds)
and
exchange
traded
funds
(ETFs),
including
affiliated
funds
managed
by
Franklin
Templeton
(FT
Underlying
Funds).
Shares
of
the
Fund
are
generally
sold
only
to
insurance
company
separate
accounts
to
fund
the
benefits
of
variable
life
insurance
policies
or
variable
annuity
contracts.
At
December
31,
2021,
97.7%
of
the
Fund's
shares
were
held
through
one
insurance
company.
Investment
activities
of
these
insurance
company
separate
accounts
could
have
a
material
impact
on
the
Fund.
The
Fund
offers
two
classes
of
shares:
Class
2
and
Class
5.
Each
class
of
shares
may
differ
by
its
distribution
fees,
voting
rights
on
matters
affecting
a
single
class
and
its
exchange
privilege.
The
accounting
policies
of
the
Underlying
Funds
are
outlined
in
their
respective
shareholder
reports.
A
copy
of
the
Underlying
Funds’
shareholder
reports
is
available
on
the
U.S.
Securities
and
Exchange
Commission
(SEC)
website
at
sec.gov.
The
Underlying
Funds’
shareholder
reports
are
not
covered
by
this
report.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Investments
in
the
Underlying
Funds
are
valued
at
their
closing
NAV
each
trading
day.
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.
Certain
derivative
financial
instruments
trade
in
the
OTC
market.
The
Fund's
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Fund's
net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-23
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the Fund's
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Derivative
Financial
Instruments
The
Fund invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statement
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statement
of
Operations.
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
The
Fund
attempts
to
reduce
its
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Fund
include
failure
of
the
Fund
to
maintain
certain
net
asset
levels
and/or
limit
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-24
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Fund
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
At
December
31,
2021, the
Fund
had
OTC
derivatives
in
a
net
liability
position
of
$33.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of
the
agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund's
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Fund's
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
The
Fund
entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
and
equity
price
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
The
Fund
entered
into
OTC
total
return
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
and
market
risk
of
an
underlying
instrument
such
as
a
stock,
bond,
index
or
basket
of
securities
or
indices.
A
total
return
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
a
return
linked
to
an
underlying
instrument
for
a
floating
or
fixed
rate
payment,
both
based
upon
a
notional
amount.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
or
received
are
accrued
daily
and
recorded
as
unrealized
appreciation
or
depreciation
until
the
payments
are
made,
at
which
time
they
are
recognized
as
realized
gain
or
loss.
See
Note
8
regarding
other
derivative
information.
d.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and if
applicable, excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
December
31,
2021,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Derivative
Financial
Instruments
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-25
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
The
Fund
indirectly
bears
its
proportionate
share
of
expenses
from
the
Underlying
Funds
and
ETFs.
Since
the
Underlying
Funds
and
ETFs
have
varied
expense
levels
and
the
Fund may
own
different
proportions
of
the
Underlying
Funds
and
ETFs
at
different
times,
the
amount
of
expenses
incurred
indirectly
by
the Fund
will
vary.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust, on
behalf
of
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-26
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
December
31,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
During
the
year ended
December
31,
2021
and
the
year
ended
December
31,
2020,
there
were
no
transactions
of
the
Fund’s
Class
2
shares.
Transactions
in
the
Fund's
Class
5
shares
were
as
follows:
3.Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers,
directors
and/or
trustees
of
certain
of
the
Underlying
Funds
and
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
of
0.80%
per
year
of
the
average
daily
net
assets
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
Class
2
and
Class
5
shares
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund's
compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
0.35%
and
0.15%
per
year
of
its
average
daily
net
assets
of
Class
2
and
Class
5,
respectively.
The
Board
has
agreed
to
limit
the
current
rate
to
0.25%
per
year
for
Class
2.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
d.
Transfer
Agent
Fees
Investor
Services,
under
terms
of
an
agreement,
performs
shareholder
servicing
for
the
Fund
and
is
not
paid
by
the Fund
for
the
services.
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Shares
Amount
Shares
Amount
Class
5
Shares:
Shares
sold
...................................
1,228,354
$18,215,053
1,955,432
$26,179,712
Shares
issued
in
reinvestment
of
distributions
..........
1,272,021
18,228,062
165,415
2,132,195
Shares
redeemed
...............................
(2,466,397)
(36,980,941)
(3,368,455)
(43,673,807)
Net
increase
(decrease)
..........................
33,978
$(537,826)
(1,247,608)
$(15,361,900)
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-27
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
e.
Investments
in
Underlying
Funds
The Fund
invests in Underlying
Funds
which
are
managed
by
affiliates
of
the
Fund’s
administrative
manager,
Franklin
Templeton
Services,
LLC.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
Underlying
Fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
Underlying
Fund.
The
Fund
does
not
invest
in
Underlying
Funds
for
the
purpose
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
Underlying
Funds,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
the
Underlying
Funds.
Investments
in
Underlying
Funds
for
the
year
ended
December
31,
2021,
were
as
follows:
f.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
operating expenses
(excluding
interest
expense,
distribution
fees,
acquired
fund
fees and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations) for
each
class
of
the
Fund
do not
exceed
0.65%,
based
on
the
average
net
assets
of
each
class
until
April
30,
2022.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
4.
Expense
Offset
Arrangement
The Fund has
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
year
ended
December
31,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Dividend
Income
a
a
a
a
a
a
a
a
a
Franklin
VolSmart
Allocation
VIP
Fund
Non-Controlled
Affiliates
Franklin
Income
Fund,
Class
R6
.
$
15,594,859
$
4,138,735
$
(20,664,426)
$
1,750,536
$
(819,704)
$
—
—
$
218,735
Franklin
Income
VIP
Fund,
Class
1
—
21,443,624
(5,504,000)
94,647
952,916
16,987,187
972,363
951,401
Franklin
Liberty
U.S.
Core
Bond
ETF
....................
26,945,614
3,996,383
(4,093,888)
(147,906)
(1,010,606)
25,689,597
1,022,500
639,447
a
Franklin
Low
Duration
Total
Return
Fund,
Class
R6
............
6,591,183
4,260,743
(10,785,767)
(52,533)
(13,626)
—
—
161,236
Franklin
Strategic
Income
Fund,
Class
R6
................
6,368,172
4,256,880
(10,552,905)
147,310
(219,457)
—
—
256,881
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.......
3,563,810
30,728,296
(30,224,349)
—
—
4,067,757
4,067,757
391
Western
Asset
Core
Plus
Bond
Fund,
Class
I
S
............
—
17,309,786
—
—
(157,214)
17,152,572
1,438,974
109,787
Total
Non-Controlled
Affiliates
$59,063,638
$86,134,447
$(81,825,335)
$1,792,054
$(1,267,691)
$63,897,113
$2,337,878
Total
Affiliated
Securities
....
$59,063,638
$86,134,447
$(81,825,335)
$1,792,054
$(1,267,691)
$63,897,113
$2,337,878
a
Dividend
income
includes
capital
gain
distributions
received,
if
any,
from
underlying
funds,
and
are
presented
in
corresponding
line
item
in
the
Statement
of
Operations.
3.Transactions
with
Affiliates
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-28
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
5.
Income
Taxes
The
tax
character
of
distributions
paid
during
the
years
ended
December
31,
2021
and
2020,
was
as
follows:
At
December
31,
2021,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation),
undistributed
ordinary
income
and
undistributed
long
term
capital
gains
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatment
of
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
December
31,
2021,
aggregated
$81,989,628
and
$96,772,717,
respectively.
7.
Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
8.
Other
Derivative
Information
At
December
31,
2021,
investments
in
derivative
contracts
are
reflected
in
the
Statement of
Assets
and
Liabilities
as
follows:
2021
2020
Distributions
paid
from:
Ordinary
income
..........................................................
$18,232,422
$2,132,665
Cost
of
investments
..........................................................................
$147,587,182
Unrealized
appreciation
........................................................................
$64,902,935
Unrealized
depreciation
........................................................................
(1,798,635)
Net
unrealized
appreciation
(depreciation)
..........................................................
$63,104,300
Distributable
earnings:
Undistributed
ordinary
income
...................................................................
$4,697,090
Undistributed
long
term
capital
gains
..............................................................
1
3,507,918
Total
distributable
earnings
.....................................................................
$18,205,008
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Franklin
VolSmart
Allocation
VIP
Fund
Equity
contracts
...........
Unrealized
appreciation
on
OTC
swap
contracts
$
—
Unrealized
depreciation
on
OTC
swap
contracts
$
3
3
Total
....................
$—
$33
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-29
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
For
the
year
ended
December
31,
2021,
the
effect
of
derivative
contracts
in
the
Statement
of
Operations
was
as
follows:
For
the
year
ended
December
31,
2021,
the
average
month
end
notional
amount
of
futures
contracts
and
swap
contracts
represented
$4,034,202
and
$3,884,615,
respectively.
See
Note
1(c) regarding
derivative
financial
instruments.
9.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matured
on
February
4,
2022.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Effective
February
4,
2022,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one-year
term,
maturing
February
3,
2023,
for
a
total
of
$2.675
billion.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
year
ended
December
31,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
10.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Year
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Year
Franklin
VolSmart
Allocation
VIP
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Equity
Contracts
..............
Futures
contracts
$(1,524,228)
Futures
contracts
$325,338
Swap
contracts
20,919
Swap
contracts
447
Total
.......................
$(1,503,309)
$325,785
8.
Other
Derivative
Information
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Notes
to
Financial
Statements
FVA-30
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
(continued)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
December
31,
2021,
in
valuing
the
Fund's assets
and
liabilities
carried
at
fair
value,
is
as
follows:
11.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements.
12.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure,
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
VolSmart
Allocation
VIP
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
........................
$
139,952,750
$
—
$
—
$
139,952,750
Management
Investment
Companies
.........
66,671,008
—
—
66,671,008
Short
Term
Investments
...................
4,067,757
—
—
4,067,757
Total
Investments
in
Securities
...........
$210,691,515
$—
$—
$210,691,515
Liabilities:
Other
Financial
Instruments:
Swap
contracts
..........................
$
—
$
33
$
—
$
33
Total
Other
Financial
Instruments
.........
$—
$33
$—
$33
a
For
detailed
categories,
see
the
accompanying
Statement
of
Investments.
Counterparty
BZWS
Barclays
Bank
plc
Selected
Portfolio
ETF
Exchange-Traded
Fund
REIT
Real
Estate
Investment
Trust
VIX
Market
Volatility
Index
10.
Fair
Value
Measurements
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
FVA-31
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Templeton
Variable
Insurance
Products
Trust
and
Shareholders
of
Franklin
VolSmart
Allocation
VIP
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
statement
of
investments,
of
Franklin
VolSmart
Allocation
VIP
Fund
(one
of
the
funds
constituting
Franklin
Templeton
Variable
Insurance
Products
Trust,
referred
to
hereafter
as
the
“Fund”)
as
of
December
31,
2021,
the
related
statement
of
operations
for
the
year
ended
December
31,
2021,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2021,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2021
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
December
31,
2021,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
December
31,
2021
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
December
31,
2021
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2021
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
PricewaterhouseCoopers
LLP
San
Francisco,
California
February
17,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Templeton
Variable
Insurance
Products
Trust
Tax
Information
(unaudited)
FVA-32
Annual
Report
Franklin
VolSmart
Allocation
VIP
Fund
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
`
The
Fund
hereby
reports
the
following
amount,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amount,
for
the
fiscal
year
ended
December
31,
2021:
Pursuant
to:
Amount
Reported
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$2,052,016
Franklin
Templeton
Variable
Insurance
Products
Trust
Index
Descriptions
I-1
Annual
Report
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
For
Russell
Indexes:
Frank
Russell
Company
is
the
source
and
owner
of
the
trademarks,
service
marks
and
copyrights
related
to
the
Russell
Indexes.
Russell
®
is
a
trademark
of
Frank
Russell
Company.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Bloomberg
1-3
Month
U.S.
Treasury
Bill
Index
measures
the
performance
of
U.S.
Treasury
bills
that
have
a
remaining
maturity
of
greater
than
or
equal
to
one
month
and
less
than
three
months.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
Bloomberg
U.S.
Aggregate
Bond
Index
measures
the
performance
of
the
investment-grade,
U.S.
dollar-
denominated,
fixed-rate
taxable
bond
market.
The
index
includes
Treasuries,
government-related
and
corporate
securities,
mortgage-backed
securities
(agency
fixed-
rate
and
hybrid
adjustable-rate
mortgage
pass-throughs),
asset-backed
securities
and
commercial
mortgage-backed
securities
(agency
and
nonagency).
Bloomberg
U.S.
Corporate
Bond
Index
measures
the
performance
of
the
investment-grade,
fixed-rate,
taxable
corporate
bond
market.
It
includes
U.S.
dollar-denominated
securities
publicly
issued
by
U.S.
and
non-U.S.
industrial,
utility
and
financial
issuers.
Bloomberg
U.S.
Corporate
High
Yield
Bond
Index
measures
the
performance
of
the
U.S.
dollar-denominated,
high-yield,
fixed-rate
corporate
bond
market.
Securities
are
classified
as
high
yield
if
the
middle
rating
of
Moody’s,
Fitch
and
Standard
&
Poor’s
is
Ba1/BB+/BB+
or
below.
Bonds
from
issuers
with
an
emerging
markets
(EM)
country
of
risk,
based
on
Bloomberg
EM
country
definition,
are
excluded.
Bloomberg
U.S.
Government
-
Intermediate
Index
is
the
intermediate
component
of
the
Bloomberg
U.S.
Government
Index,
which
includes
U.S.
dollar-denominated,
fixed-rate,
nominal
U.S.
Treasuries
and
U.S.
agency
debentures
(securities
issued
by
U.S.
government-owned
or
government-sponsored
entities,
and
debt
explicitly
guaranteed
by
the
U.S.
government).
Bloomberg
U.S.
High
Yield
Very
Liquid
Index
is
a
component
of
the
U.S.
Corporate
High
Yield
Index
that
is
designed
to
track
a
more
liquid
component
of
the
U.S.
dollar-
denominated,
high-yield,
fixed-rate
corporate
bond
market.
Bloomberg
U.S.
Mortgage-Backed
Securities
(MBS)
Index
tracks
the
performance
of
fixed-rate
agency
mortgage-
backed
pass-through
securities
guaranteed
by
Ginnie
Mae
(GNMA),
Fannie
Mae
(FNMA)
and
Freddie
Mac
(FHLMC).
Effective
June
1,
2017,
hybrid
adjustable-rate
mortgages
were
removed
from
the
index.
Bloomberg
U.S.
Treasury
Index
measures
the
performance
of
U.S.
dollar-denominated,
fixed-rate,
nominal
debt
issued
by
the
U.S.
Treasury
with
at
least
one
year
until
final
maturity.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
FTSE
®
EPRA
®
/NAREIT
®
Developed
Index
is
a
free
float-
adjusted
index
designed
to
measure
the
performance
of
publicly
traded
real
estate
securities
in
the
North
American,
European
and
Asian
real
estate
markets.
FTSE
World
Government
Bond
Index
measures
the
performance
of
fixed-rate,
local
currency,
investment-grade
sovereign
bonds
and
is
stated
in
U.S.
dollar
terms.
J.P.
Morgan
(JPM)
Global
Government
Bond
Index
(GGBI)
tracks
total
returns
for
liquid,
fixed-rate,
domestic
government
bonds
with
maturities
greater
than
one
year
issued
by
developed
countries
globally.
Lipper
Multi-Sector
Income
Funds
Classification
Average
is
calculated
by
averaging
the
total
returns
of
all
funds
within
the
Lipper
Multi-Sector
Income
Funds
classification
in
the
Lipper
Open-End
underlying
funds
universe.
Lipper
Multi-Sector
Income
Funds
are
defined
as
funds
that
seek
current
income
by
allocating
assets
among
different
fixed
income
securities
sectors
(not
primarily
in
one
sector
except
for
defensive
purposes),
including
U.S.
and
foreign
governments,
with
a
significant
portion
rated
below
investment
grade.
For
the
12-month
period
ended
12/31/21,
Franklin
Templeton
Variable
Insurance
Products
Trust
Index
Descriptions
I-2
Annual
Report
there
were
365
funds
in
this
category.
Lipper
calculations
do
not
include
sales
charges,
but
include
reinvestment
of
any
income
or
distributions.
Fund
performance
relative
to
the
average
may
have
differed
if
these
and
other
factors
had
been
considered.
Lipper
VIP
General
U.S.
Government
Funds
Classification
Average
is
an
equally
weighted
average
calculation
of
performance
figures
for
all
funds
within
the
Lipper
General
U.S.
Government
Funds
classification
in
the
Lipper
VIP
underlying
funds
universe.
Lipper
General
U.S.
Government
Funds
invest
primarily
in
U.S.
government
and
agency
issues.
For
the
12-month
period
ended
12/31/21,
there
were
24
funds
in
this
category.
Lipper
calculations
do
not
include
contract
fees,
expenses
or
sales
charges,
and
may
have
been
different
if
such
charges
had
been
considered.
MSCI
All
Country
Asia
Index-NR
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
developed
and
emerging
markets
in
Asia.
MSCI
All
Country
World
Index
(ACWI)
is
a
free
float-
adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
developed
and
emerging
markets.
MSCI
All
Country
World
Index
(ACWI)-NR
is
a
free
float-
adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
developed
and
emerging
markets.
MSCI
All
Country
World
Index
(ACWI)
ex
USA
Index
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
developed
and
emerging
markets,
excluding
the
U.S.
MSCI
All
Country
World
Index
(ACWI)
ex
USA
Index-NR
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
developed
and
emerging
markets,
excluding
the
U.S.
MSCI
Emerging
Markets
(EM)
Index-NR
is
a
free
float-
adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
emerging
markets.
MSCI
Europe
Index-NR
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
developed
markets
in
Europe.
MSCI
USA
High
Dividend
Yield
Index
is
based
on
the
MSCI
USA
Index,
its
parent
index,
and
includes
large-
and
mid-capitalization
stocks.
The
index
is
designed
to
reflect
the
performance
of
equities
in
the
parent
index
(excluding
real
estate
investment
trusts)
with
higher
dividend
income
and
quality
characteristics
than
average
dividend
yields
that
are
both
sustainable
and
persistent.
MSCI
World
ex
USA
Index-NR
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
developed
markets,
excluding
the
U.S.
MSCI
World
Growth
Index-NR
measures
large
and
midcap
securities
exhibiting
overall
growth
style
characteristics
across
23
developed
markets
countries.
MSCI
World
Index
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
developed
markets.
MSCI
World
Value
Index-NR
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
stocks
exhibiting
overall
value
style
characteristics
in
global
developed
markets.
Russell
1000
®
Growth
Index
is
market
capitalization
weighted
and
measures
the
performance
of
Russell
1000
®
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates.
Russell
1000
®
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
1,000
largest
companies
in
the
Russell
3000
®
Index,
which
represents
the
majority
of
the
U.S.
market’s
total
capitalization.
Russell
1000
®
Value
Index
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
1000
®
Index
companies
with
relatively
lower
price-to-book
ratios
and
lower
forecasted
growth
rates.
Russell
2000
®
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
2,000
smallest
companies
in
the
Russell
3000
®
Index
that
represent
a
small
amount
of
the
total
market
capitalization
of
the
Russell
3000
®
Index.
Russell
2000
®
Value
Index
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
2000
®
Index
companies
with
relatively
lower
price-to-book
ratios
and
lower
forecasted
growth
rates.
Franklin
Templeton
Variable
Insurance
Products
Trust
Index
Descriptions
I-3
Annual
Report
Russell
2500
TM
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
2,500
smallest
companies
in
the
Russell
3000
Index
®
that
represent
a
modest
amount
of
the
Russell
3000
®
Index’s
total
market
capitalization.
Russell
3000
®
Growth
Index
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
3000
®
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates.
Russell
3000
®
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
largest
3,000
U.S.
companies
representing
the
majority
of
the
U.S.
market’s
total
capitalization.
Russell
Midcap
®
Growth
Index
is
market
capitalization
weighted
and
measures
the
performance
of
those
Russell
Midcap
®
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates.
Russell
Midcap
®
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
800
smallest
companies
in
the
Russell
1000
®
Index
that
represent
a
modest
amount
of
the
Russell
1000
®
Index’s
total
market
capitalization.
Standard
&
Poor’s
®
500
Index
(S&P
500
®
)
is
a
market
capitalization-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
Franklin
Templeton
Variable
Insurance
Products
Trust
Board
Members
and
Officers
BOD-1
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1988
120
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
101
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
121
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Templeton
Variable
Insurance
Products
Trust
BOD-2
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2005
and
Lead
Independent
Trustee
since
2019
121
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
121
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(May
2019-January
1,
2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-
2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
121
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
BOD-3
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
May
2021
101
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(January
2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-January
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2013
132
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
2013
and
Trustee
since
1988
121
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
October
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
BOD-4
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Vice
President,
FASA,
LLC;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
-
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
-
AML
Compliance
Since
July
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Edward
D.
Perks
(1970)
President
and
Chief
Executive
Officer
-
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
President
and
Director,
Franklin
Advisers,
Inc.;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Craig
S.
Tyle
(1960)
Vice
President
Since
2005
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
General
Counsel
and
Executive
Vice
President,
Franklin
Resources,
Inc.;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
BOD-5
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007-2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Templeton
Variable
Insurance
Products
Trust
Shareholder
Information
SI-1
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
TEMPLETON
VARIABLE
INSURANCE
PRODUCTS
TRUST
Franklin
Allocation
VIP
Fund
(Fund)
At
a
meeting
held
on
September
8,
2021
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Templeton
Variable
Insurance
Products
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
a
new
investment
sub-advisory
agreement
between
Franklin
Advisers,
Inc.
(Manager),
the
Fund’s
investment
manager,
and
each
of
Brandywine
Global
Investment
Management,
LLC,
ClearBridge
Investments,
LLC,
Western
Asset
Management
Company,
LLC,
and
Western
Asset
Management
Company
Limited
(each
a
Sub-Adviser
and
collectively,
the
Sub-Advisers),
on
behalf
of
the
Fund
(each
a
Sub-Advisory
Agreement)
for
an
initial
two-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
each
Sub-Advisory
Agreement.
The
Board
reviewed
and
considered
information
provided
by
the
Manager
and
the
Sub-Advisers
at
the
Meeting
with
respect
to
each
Sub-Advisory
Agreement.
The
Board
also
reviewed
and
considered
the
factors
it
deemed
relevant
in
approving
each
Sub-Advisory
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent,
and
quality
of
the
services
to
be
provided
by
each
Sub-Adviser;
and
(ii)
the
costs
of
the
services
to
be
provided
by
each
Sub-Adviser.
The
Board
further
reviewed
and
considered
information
provided
by
management
showing
the
expected
impact
of
hiring
each
Sub-Adviser
on
the
Manager’s
profitability
consistent
with
the
Order
(as
defined
below).
The
Board
also
considered
that
management
proposed
that
the
Board
approve
each
Sub-Advisory
Agreement
in
order
to
provide
the
Fund’s
portfolio
management
team
with
access
to
additional
investment
strategies
that
could
be
accessed
to
attain
desired
exposures
across
asset
allocation
portfolios
and
to
diversify
holdings
in
the
Fund.
The
Board
reviewed
and
further
considered
the
form
of
Sub-Advisory
Agreement
and
the
terms
of
each
Sub-Advisory
Agreement
which
were
discussed
at
the
Meeting,
noting
that
the
terms
and
conditions
of
each
Sub-Advisory
Agreement
were
substantially
similar
to
the
terms
and
conditions
of
the
Fund’s
other
sub-advisory
agreements
and
substantially
similar
to
the
terms
and
conditions
of
sub-advisory
agreements
for
other
Franklin
Templeton
(FT)
mutual
funds.
In
approving
each
Sub-Advisory
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
hiring
of
each
Sub-Adviser
is
in
the
best
interests
of
the
Fund
and
its
shareholders
and
does
not
involve
a
conflict
of
interest
from
which
the
Manager
or
Sub-Adviser
derives
an
inappropriate
advantage.
The
Board
also
determined
that
the
terms
of
each
Sub-Advisory
Agreement
are
fair
and
reasonable
and
that
the
approval
of
such
Sub-Advisory
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
to
be
provided
by
each
Sub-Adviser
and
currently
being
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
In
doing
so,
the
Board
noted
that
the
Fund
employs
a
"manager
of
managers"
structure
pursuant
to
an
exemptive
order
(Order)
granted
to
the
Manager
by
the
U.S.
Securities
and
Exchange
Commission,
whereby
the
Manager
and
the
Fund
may,
without
shareholder
approval,
enter
into
sub-advisory
agreements
with
sub-advisers
that
are
indirect
or
direct
wholly
owned
subsidiaries
of
Franklin
Resources,
Inc.
(FRI).
In
particular,
with
respect
to
each
Sub-Adviser,
the
Board
took
into
account
that
each
Sub-
Advisory
Agreement
would
not
affect
how
the
Fund
is
managed
or
the
Fund's
investment
goal,
principal
investment
strategies
or
principal
risks
associated
with
an
investment
in
the
Fund.
The
Board
reviewed
and
considered
information
regarding
the
nature,
quality
and
extent
of
investment
sub-
advisory
services
to
be
provided
by
each
Sub-Adviser
to
the
Fund
and
its
shareholders
under
each
Sub-Advisory
Agreement;
each
Sub-Adviser's
experience
as
manager
of
other
funds
and
accounts,
including
those
within
the
FT
organization;
the
personnel,
operations,
financial
condition,
and
investment
management
capabilities,
methodologies
and
resources
of
each
Sub-Adviser
and
each
Sub-Adviser's
capabilities,
as
demonstrated
by,
among
other
things,
its
policies
and
procedures
reasonably
designed
to
prevent
violations
of
the
federal
securities
laws.
Franklin
Templeton
Variable
Insurance
Products
Trust
Shareholder
Information
SI-2
Annual
Report
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
FRI,
the
parent
of
the
Manager
and
each
Sub-Adviser,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT's
commitment
to
enhancing
services
and
controlling
costs,
as
reflected
in
its
outsourcing
of
certain
administrative
functions,
and
growth
opportunities,
as
evidenced
by
its
acquisition
of
the
Legg
Mason
companies.
The
Board
also
noted
FT's
attention
focused
on
expanding
the
distribution
opportunities
for
all
funds
in
the
FT
family
of
funds.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
to
be
provided
by
each
Sub-Adviser
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
noted
its
review
and
consideration
of
the
performance
results
of
the
Fund
in
connection
with
the
April
2021
annual
contract
renewal
(Annual
Contract
Renewal)
of
the
Fund’s
investment
management
agreement.
The
Board
recalled
its
conclusion
at
that
time
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
investment
sub-advisory
fee
to
be
charged
by
each
Sub-Adviser.
The
Board
noted
that
the
addition
of
each
Sub-
Adviser
will
have
no
impact
on
the
amount
of
management
fees
that
are
currently
paid
by
the
Fund
as
each
Sub-Adviser
will
be
paid
by
the
Manager
out
of
the
management
fee
that
the
Manager
receives
from
the
Fund.
The
Board
further
noted
that
the
allocation
of
the
fee
between
the
Manager
and
each
Sub-Adviser
reflected
the
services
to
be
provided
by
each.
The
Board
concluded
that
each
proposed
investment
sub-advisory
fee
is
reasonable.
Management
Profitability
and
Economies
of
Scale
The
Board
noted
that
it
reviewed
and
considered
information
showing
the
expected
impact
of
retaining
each
Sub-
Adviser
on
the
profitability
of
the
Manager
consistent
with
the
conditions
of
the
Order.
The
Board
determined
that
its
conclusions
regarding
profitability
and
economies
of
scale
reached
in
connection
with
the
Annual
Contract
Renewal
of
the
investment
management
agreement
with
the
Manager
had
not
changed
as
a
result
of
the
proposal
to
approve
each
Sub-Advisory
Agreement.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
each
Sub-Advisory
Agreement
for
an
initial
two-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
VIP5
A
02/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Franklin
Templeton
Variable
Insurance
Products
Trust
(FTVIP)
shares
are
not
offered
to
the
public;
they
are
offered
and
sold
only
to:
(1)
insurance
company
separate
accounts
(Separate
Account)
to
serve
as
the
underlying
investment
vehicle
for
variable
contracts;
(2)
certain
qualified
plans;
and
(3)
other
mutual
funds
(funds
of
funds).
Authorized
for
distribution
to
investors
in
Separate
Accounts
only
when
accompanied
or
preceded
by
the
current
prospectus
for
the
applicable
contract,
which
includes
the
Separate
Account
and
the
FTVIP
prospectuses.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
The
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
Franklin
Templeton
Variable
Insurance
Products
Trust
Investment
Manager
Fund
Administrator
Distributor
Franklin
Advisers,
Inc.
Franklin
Templeton
Services,
LLC
Franklin
Distributors,
LLC
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4.
Principal Accountant Fees and Services.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $782,449 for the fiscal year ended
December 31, 2021
and $929,368 for the fiscal year ended December 31, 2020
.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c) Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $100,125 for the fiscal year ended December 31, 2021 and $202,570 for the fiscal year ended December 31, 2020. The services for which these fees were paid included tax compliance services related to year-end.
(d) All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $8,122 for the fiscal year ended December 31, 2021 and $0 for the fiscal year ended December 31, 2020. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $90,743 for the fiscal year ended December 31, 2021 and $55,772 for the fiscal year ended December 31, 2020. The services for which these fees were paid included benchmarking services in connection with the ICI TA survey, assets under management certification,
professional fees in connection with determining the feasibility of a U.S. direct lending structure, compliance examination for Investment Advisor Act rule 204-2 and 206-4 (2), the issuance of an Auditors’ Certificate for South Korean regulatory shareholder disclosures, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, and professional fees in connection with SOC 1 Reports.
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $198,990 for the fiscal year ended December 31, 2021 and $258,342 for the fiscal year ended December 31, 2020.
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee
of Listed Registrants.
N/AItem 6. Schedule of Investments.
N/A
Item 7
. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8
. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9
. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a) Evaluation
of Disclosure Controls and Procedures
. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls
. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12
. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a)(1)
Code of Ethics
(a)(2)
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(b)
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Franklin Templeton Variable Insurance Products Trust
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer – Finance and Administration
Date February 28, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer – Finance and Administration
Date February 28, 2022
By S\Christopher Kings________________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date February 28, 2022