2025-07-17LMZ0800_FranklinMulti-AssetVariableGrowthFund_ClassI


Franklin Multi-Asset Variable Growth Fund
Class Itrue
Semi-Annual Shareholder Report \| June 30, 2025

This semi-annual shareholder report contains important information about Franklin Multi-Asset Variable Growth Fund for the period January 1, 2025, to June 30, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at 877-6LM-FUND/656-3863.

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^†
Class I^1,²	$8	0.15%

†	Annualized.

1	Does not reflect expenses incurred from investing through variable annuity or variable life insurance products.

2	Excludes fees and expenses of the underlying funds in which the Fund invests.

KEY FUND STATISTICS (as of June 30, 2025)


Total Net Assets	$70,196,753
Total Number of Portfolio Holdings^*	12
Portfolio Turnover Rate	15%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of June 30, 2025)

Portfolio Composition^* (% of Total Investments)


Franklin Multi-Asset Variable Moderate Growth Fund
Class Itrue
Semi-Annual Shareholder Report \| June 30, 2025

This semi-annual shareholder report contains important information about Franklin Multi-Asset Variable Moderate Growth Fund for the period January 1, 2025, to June 30, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at 877-6LM-FUND/656-3863.

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*^,^†
Class I^1,²	$10	0.20%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

†	Annualized.

1	Does not reflect expenses incurred from investing through variable annuity or variable life insurance products.

2	Excludes fees and expenses of the underlying funds in which the Fund invests.

KEY FUND STATISTICS (as of June 30, 2025)


Total Net Assets	$28,720,070
Total Number of Portfolio Holdings^*	12
Portfolio Turnover Rate	14%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of June 30, 2025)

Portfolio Composition^* (% of Total Investments)


Franklin Multi-Asset Variable Conservative Growth Fund
Class Itrue
Semi-Annual Shareholder Report \| June 30, 2025

This semi-annual shareholder report contains important information about Franklin Multi-Asset Variable Conservative Growth Fund for the period January 1, 2025, to June 30, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at 877-6LM-FUND/656-3863.

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^†
Class I^1,²	$7	0.14%

†	Annualized.

1	Does not reflect expenses incurred from investing through variable annuity or variable life insurance products.

2	Excludes fees and expenses of the underlying funds in which the Fund invests.

KEY FUND STATISTICS (as of June 30, 2025)


Total Net Assets	$75,631,586
Total Number of Portfolio Holdings^*	12
Portfolio Turnover Rate	13%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of June 30, 2025)

Portfolio Composition^* (% of Total Investments)


Franklin Multi-Asset Variable Conservative Growth Fund
Class IItrue
Semi-Annual Shareholder Report \| June 30, 2025

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^†
Class II^1,²	$20	0.39%

†	Annualized.

1	Does not reflect expenses incurred from investing through variable annuity or variable life insurance products.

2	Excludes fees and expenses of the underlying funds in which the Fund invests.

KEY FUND STATISTICS (as of June 30, 2025)


Total Net Assets	$75,631,586
Total Number of Portfolio Holdings^*	12
Portfolio Turnover Rate	13%

*	Does not include derivatives, except purchased options, if any.

WHAT DID THE FUND INVEST IN? (as of June 30, 2025)

Portfolio Composition^* (% of Total Investments)

Schedules of Investments (unaudited)

June 30, 2025

Franklin Multi-Asset Variable Growth Fund

(Percentages shown based on Portfolio net assets)

Description		Shares	Value
Investments in Underlying Funds(a) — 98.9%
Domestic Equity — 74.3%
Franklin Value Investors Trust — Franklin Small Cap Value Fund, Class R6 Shares		18,536	$1,100,692
Legg Mason Global Asset Management Trust — Franklin U.S. Small Cap Equity Fund, Class IS Shares		83,496	1,130,529
Legg Mason Partners Investment Trust:
ClearBridge Appreciation Fund, Class IS Shares		135,002	4,985,622
ClearBridge Large Cap Growth Fund, Class IS Shares		219,602	17,210,239
ClearBridge Small Cap Growth Fund, Class IS Shares		39,653	1,615,476
Franklin U.S. Large Cap Equity Fund, Class IS Shares		702,392	17,630,047
Putnam Investment Funds — Putnam Large Cap Value Fund, Class R6 Shares		230,628	8,489,416

Total Domestic Equity			52,162,021
Foreign Equity — 16.3%
Legg Mason Global Asset Management Trust — Franklin International Equity Fund, Class IS Shares		545,196	11,410,959

Domestic Fixed Income — 8.3%
Franklin Templeton ETF Trust:
Franklin Investment Grade Corporate ETF		20,370	439,687
Franklin U.S. Core Bond ETF		203,337	4,375,812
Franklin U.S. Treasury Bond ETF		49,617	1,019,629

Total Domestic Fixed Income			5,835,128
Total Investments in Underlying Funds before Short-Term Investments (Cost — $49,891,983)			69,408,108
	Rate
Short-Term Investments — 1.2%
Invesco Government & Agency Portfolio, Institutional Class (Cost — $860,213)	4.240%	860,213	860,213 (b)
Total Investments — 100.1% (Cost — $50,752,196)			70,268,321
Liabilities in Excess of Other Assets — (0.1)%			(71,568 )
Total Net Assets — 100.0%			$70,196,753

(a)	Underlying Funds are affiliated with Franklin Resources, Inc. and more information about the Underlying Funds are available at www.franklintempleton.com (Note 8).
(b)	Rate shown is one-day yield as of the end of the reporting period.

Abbreviation(s) used in this schedule:
ETF	—	Exchange-Traded Fund

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Schedules of Investments (unaudited) (cont’d)

June 30, 2025

Franklin Multi-Asset Variable Moderate Growth Fund

(Percentages shown based on Portfolio net assets)

Description		Shares	Value
Investments in Underlying Funds(a) — 98.9%
Domestic Equity — 62.2%
Franklin Value Investors Trust — Franklin Small Cap Value Fund, Class R6 Shares		6,383	$379,025
Legg Mason Global Asset Management Trust — Franklin U.S. Small Cap Equity Fund, Class IS Shares		28,751	389,284
Legg Mason Partners Investment Trust:
ClearBridge Appreciation Fund, Class IS Shares		46,307	1,710,103
ClearBridge Large Cap Growth Fund, Class IS Shares		75,174	5,891,412
ClearBridge Small Cap Growth Fund, Class IS Shares		13,650	556,092
Franklin U.S. Large Cap Equity Fund, Class IS Shares		240,454	6,035,389
Putnam Investment Funds — Putnam Large Cap Value Fund, Class R6 Shares		78,955	2,906,330

Total Domestic Equity			17,867,635
Domestic Fixed Income — 23.1%
Franklin Templeton ETF Trust:
Franklin Investment Grade Corporate ETF		23,138	499,434
Franklin U.S. Core Bond ETF		230,948	4,970,001
Franklin U.S. Treasury Bond ETF		56,355	1,158,095

Total Domestic Fixed Income			6,627,530
Foreign Equity — 13.6%
Legg Mason Global Asset Management Trust — Franklin International Equity Fund, Class IS Shares		186,645	3,906,489
Total Investments in Underlying Funds before Short-Term Investments (Cost — $22,123,079)			28,401,654
	Rate
Short-Term Investments — 1.3%
Invesco Government & Agency Portfolio, Institutional Class (Cost — $378,966)	4.240%	378,966	378,966 (b)
Total Investments — 100.2% (Cost — $22,502,045)			28,780,620
Liabilities in Excess of Other Assets — (0.2)%			(60,550 )
Total Net Assets — 100.0%			$28,720,070

(a)	Underlying Funds are affiliated with Franklin Resources, Inc. and more information about the Underlying Funds are available at www.franklintempleton.com (Note 8).
(b)	Rate shown is one-day yield as of the end of the reporting period.

Abbreviation(s) used in this schedule:
ETF	—	Exchange-Traded Fund

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Franklin Multi-Asset Variable Conservative Growth Fund

(Percentages shown based on Portfolio net assets)

Description		Shares	Value
Investments in Underlying Funds(a) — 98.7%
Domestic Equity — 45.8%
Franklin Value Investors Trust — Franklin Small Cap Value Fund, Class R6 Shares		12,456	$739,644
Legg Mason Global Asset Management Trust — Franklin U.S. Small Cap Equity Fund, Class IS Shares		55,088	745,886
Legg Mason Partners Investment Trust:
ClearBridge Appreciation Fund, Class IS Shares		89,573	3,307,940
ClearBridge Large Cap Growth Fund, Class IS Shares		145,676	11,416,598
ClearBridge Small Cap Growth Fund, Class IS Shares		26,256	1,069,681
Franklin U.S. Large Cap Equity Fund, Class IS Shares		465,988	11,696,303
Putnam Investment Funds — Putnam Large Cap Value Fund, Class R6 Shares		153,022	5,632,719

Total Domestic Equity			34,608,771
Domestic Fixed Income — 42.9%
Franklin Templeton ETF Trust:
Franklin Investment Grade Corporate ETF		113,199	2,443,401
Franklin U.S. Core Bond ETF		1,129,862	24,314,630
Franklin U.S. Treasury Bond ETF		275,705	5,665,738

Total Domestic Fixed Income			32,423,769
Foreign Equity — 10.0%
Legg Mason Global Asset Management Trust — Franklin International Equity Fund, Class IS Shares		361,744	7,571,305
Total Investments in Underlying Funds before Short-Term Investments (Cost — $62,305,061)			74,603,845
	Rate
Short-Term Investments — 1.2%
Invesco Government & Agency Portfolio, Institutional Class (Cost — $922,552)	4.240%	922,552	922,552 (b)
Total Investments — 99.9% (Cost — $63,227,613)			75,526,397
Other Assets in Excess of Liabilities — 0.1%			105,189
Total Net Assets — 100.0%			$75,631,586

(a)	Underlying Funds are affiliated with Franklin Resources, Inc. and more information about the Underlying Funds are available at www.franklintempleton.com (Note 8).
(b)	Rate shown is one-day yield as of the end of the reporting period.

Abbreviation(s) used in this schedule:
ETF	—	Exchange-Traded Fund

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Statements of Assets and Liabilities (unaudited)

June 30, 2025

	Franklin Multi-Asset Variable Growth Fund	Franklin Multi-Asset Variable Moderate Growth Fund	Franklin Multi-Asset Variable Conservative Growth Fund
Assets:
Investments in affiliated Underlying Funds, at cost	$49,891,983	$22,123,079	$62,305,061
Short-term investments, at cost	860,213	378,966	922,552
Investments in affiliated Underlying Funds, at value	$69,408,108	$28,401,654	$74,603,845
Short-term investments, at value	860,213	378,966	922,552
Distributions receivable from unaffiliated Underlying Funds	3,071	1,290	3,625
Receivable for Portfolio shares sold	—	—	190,344
Receivable from investment manager	—	1,989	—
Total Assets	70,271,392	28,783,899	75,720,366
Liabilities:
Fund accounting fees payable	26,019	25,627	26,563
Audit and tax fees payable	15,518	15,372	15,492
Payable for Portfolio shares repurchased	14,296	3,902	22,802
Legal fees payable	11,793	11,968	11,768
Shareholder reports payable	4,957	6,071	5,896
Trustees’ fees payable	1,285	616	1,335
Service and/or distribution fees payable	—	—	4,398
Accrued expenses	771	273	526
Total Liabilities	74,639	63,829	88,780
Total Net Assets	$70,196,753	$28,720,070	$75,631,586
Net Assets:
Par value (Note 7)	$50	$20	$51
Paid-in capital in excess of par value	50,817,154	22,768,170	63,662,946
Total distributable earnings (loss)	19,379,549	5,951,880	11,968,589
Total Net Assets	$70,196,753	$28,720,070	$75,631,586
Net Assets:
Class I	$70,196,753	$28,720,070	$53,644,836
Class II	—	—	$21,986,750
Shares Outstanding:
Class I	5,044,315	2,039,863	3,597,454
Class II	—	—	1,484,204
Net Asset Value:
Class I	$13.92	$14.08	$14.91
Class II	—	—	$14.81

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Statements of Operations (unaudited)

For the Six Months Ended June 30, 2025

	Franklin Multi-Asset Variable Growth Fund	Franklin Multi-Asset Variable Moderate Growth Fund	Franklin Multi-Asset Variable Conservative Growth Fund
Investment Income:
Income distributions from affiliated Underlying Funds	$127,802	$123,540	$579,167
Interest	9,776	4,018	11,385
Total Investment Income	137,578	127,558	590,552
Expenses:
Fund accounting fees	15,461	15,226	15,687
Audit and tax fees	14,518	14,372	14,492
Legal fees	10,223	10,111	10,235
Shareholder reports	4,014	4,033	4,403
Trustees’ fees	2,134	983	2,246
Commitment fees (Note 9)	309	122	330
Interest expense	230	24	82
Custody fees	183	103	196
Transfer agent fees (Notes 2 and 5)	46	38	116
Service and/or distribution fees (Notes 2 and 5)	—	—	25,884
Miscellaneous expenses	2,561	2,432	3,237
Total Expenses	49,679	47,444	76,908
Less: Fee waivers and/or expense reimbursements (Notes 2 and 5)	—	(19,734)	—
Net Expenses	49,679	27,710	76,908
Net Investment Income	87,899	99,848	513,644
Realized and Unrealized Gain on Investments, Affiliated Underlying Funds and Capital Gain Distributions From Affiliated Underlying Funds (Notes 1 and 3):
Net Realized Gain From:
Sale of affiliated Underlying Funds	1,830,924	492,826	477,947
Investment transactions (Note 3)	11,638	3,901	7,759
Capital gain distributions from affiliated Underlying Funds	452,682	154,754	298,514
Net Realized Gain	2,295,244	651,481	784,220
Change in Net Unrealized Appreciation (Depreciation) from Affiliated Underlying Funds	2,592,943	1,123,441	3,090,954
Net Gain on Investments, Affiliated Underlying Funds and Capital Gain Distributions From Affiliated Underlying Funds	4,888,187	1,774,922	3,875,174
Increase in Net Assets From Operations	$4,976,086	$1,874,770	$4,388,818

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Financial Highlights

Franklin Multi-Asset Variable Growth Fund

For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class I Shares1	20252	2024	2023	2022	2021	2020
Net asset value, beginning of period	$14.26	$13.40	$11.85	$15.88	$14.74	$14.00
Income (loss) from operations:
Net investment income	0.02	0.13	0.19	0.20	0.16	0.17
Net realized and unrealized gain (loss)	1.02	2.21	2.10	(2.63 )	2.87	1.30
Total income (loss) from operations	1.04	2.34	2.29	(2.43)	3.03	1.47
Less distributions from:
Net investment income	(0.21 )	(0.29 )	(0.15 )	(0.41 )	(0.69 )	(0.21 )
Net realized gains	(1.17 )	(1.19 )	(0.59 )	(1.19 )	(1.20 )	(0.52 )
Total distributions	(1.38 )	(1.48 )	(0.74 )	(1.60 )	(1.89 )	(0.73 )
Net asset value, end of period	$13.92	$14.26	$13.40	$11.85	$15.88	$14.74
Total return3	7.53 %	17.64 %	19.58 %	(14.80 )%	20.69 %	11.24 %
Net assets, end of period (000s)	$70,197	$70,871	$73,344	$70,058	$94,277	$92,655
Ratios to average net assets:
Gross expenses4	0.15 %5	0.15 %	0.15 %	0.13 %	0.12 %	0.14 %
Net expenses4,6	0.15 5	0.15	0.15	0.13	0.12	0.13 7
Net investment income	0.26 5	0.86	1.53	1.52	1.00	1.27
Portfolio turnover rate	15 %8	60 %	20 %	42 %	19 %	21 %

1	Per share amounts have been calculated using the average shares method.
2	For the six months ended June 30, 2025 (unaudited).
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.
4	Does not include fees and expenses of the Underlying Funds in which the Portfolio invests.
5	Annualized.
6	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses (fees and expenses of Underlying Funds), to average net assets of Class I shares did not exceed 0.20%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Trustees’ consent.
7	Reflects fee waivers and/or expense reimbursements.
8	Excludes the value of securities received in lieu of cash proceeds from the sale of Underlying Funds and the subsequent sale of those securities.

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Financial Highlights (cont’d)

Franklin Multi-Asset Variable Moderate Growth Fund

For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class I Shares1	20252	2024	2023	2022	2021	2020
Net asset value, beginning of period	$14.43	$13.48	$11.95	$15.37	$14.62	$13.87
Income (loss) from operations:
Net investment income	0.05	0.18	0.22	0.21	0.17	0.18
Net realized and unrealized gain (loss)	0.92	1.89	1.90	(2.47 )	2.25	1.29
Total income (loss) from operations	0.97	2.07	2.12	(2.26)	2.42	1.47
Less distributions from:
Net investment income	—	(0.24 )	(0.24 )	(0.23 )	(0.68 )	(0.23 )
Net realized gains	(1.32 )	(0.88 )	(0.35 )	(0.93 )	(0.99 )	(0.49 )
Total distributions	(1.32 )	(1.12 )	(0.59 )	(1.16 )	(1.67 )	(0.72 )
Net asset value, end of period	$14.08	$14.43	$13.48	$11.95	$15.37	$14.62
Total return3	6.92 %	15.46 %	17.81 %	(14.36 )%	16.66 %	11.07 %
Net assets, end of period (000s)	$28,720	$28,575	$27,552	$26,389	$34,089	$33,030
Ratios to average net assets:
Gross expenses4	0.34 %5	0.37 %	0.37 %	0.35 %	0.31 %	0.35 %
Net expenses4,6,7	0.20 5	0.20	0.20	0.20	0.20	0.20
Net investment income	0.72 5	1.22	1.73	1.61	1.04	1.36
Portfolio turnover rate	14 %8	74 %	18 %	42 %	18 %	26 %

1	Per share amounts have been calculated using the average shares method.
2	For the six months ended June 30, 2025 (unaudited).
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.
4	Does not include fees and expenses of the Underlying Funds in which the Portfolio invests.
5	Annualized.
6	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses (fees and expenses of Underlying Funds), to average net assets of Class I shares did not exceed 0.20%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Trustees’ consent.
7	Reflects fee waivers and/or expense reimbursements.
8	Excludes the value of securities received in lieu of cash proceeds from the sale of Underlying Funds and the subsequent sale of those securities.

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Franklin Multi-Asset Variable Conservative Growth Fund

For a share of each class of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class I Shares1	20252	2024	2023	2022	2021	2020
Net asset value, beginning of period	$15.20	$14.41	$12.86	$16.25	$15.86	$14.88
Income (loss) from operations:
Net investment income	0.11	0.29	0.31	0.26	0.21	0.23
Net realized and unrealized gain (loss)	0.80	1.40	1.57	(2.59 )	1.60	1.37
Total income (loss) from operations	0.91	1.69	1.88	(2.33)	1.81	1.60
Less distributions from:
Net investment income	—	(0.41 )	(0.33 )	(0.30 )	(0.57 )	(0.32 )
Net realized gains	(1.20 )	(0.49 )	—	(0.76 )	(0.85 )	(0.30 )
Total distributions	(1.20 )	(0.90 )	(0.33 )	(1.06 )	(1.42 )	(0.62 )
Net asset value, end of period	$14.91	$15.20	$14.41	$12.86	$16.25	$15.86
Total return3	6.16 %	11.79 %	14.63 %	(14.17 )%	11.47 %	10.96 %
Net assets, end of period (000s)	$53,645	$54,672	$59,370	$57,593	$76,687	$77,465
Ratios to average net assets:
Gross expenses4	0.14 %5	0.14 %	0.14 %	0.13 %	0.12 %	0.14 %
Net expenses4,6	0.14 5	0.14	0.14	0.13	0.12	0.14 7
Net investment income	1.47 5	1.91	2.25	1.87	1.24	1.59
Portfolio turnover rate	13 %8	84 %	16 %	49 %	17 %	28 %

1	Per share amounts have been calculated using the average shares method.
2	For the six months ended June 30, 2025 (unaudited).
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.
4	Does not include fees and expenses of the Underlying Funds in which the Portfolio invests.
5	Annualized.
6	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses (fees and expenses of Underlying Funds), to average net assets of Class I shares did not exceed 0.20%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Trustees’ consent.
7	Reflects fee waivers and/or expense reimbursements.
8	Excludes the value of securities received in lieu of cash proceeds from the sale of Underlying Funds and the subsequent sale of those securities.

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Financial Highlights (cont’d)

Franklin Multi-Asset Variable Conservative Growth Fund

For a share of each class of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class II Shares1	20252	2024	2023	2022	2021	2020
Net asset value, beginning of period	$15.13	$14.34	$12.81	$16.18	$15.81	$14.83
Income (loss) from operations:
Net investment income	0.09	0.26	0.29	0.23	0.17	0.21
Net realized and unrealized gain (loss)	0.79	1.39	1.54	(2.57 )	1.58	1.35
Total income (loss) from operations	0.88	1.65	1.83	(2.34)	1.75	1.56
Less distributions from:
Net investment income	—	(0.37 )	(0.30 )	(0.27 )	(0.53 )	(0.28 )
Net realized gains	(1.20 )	(0.49 )	—	(0.76 )	(0.85 )	(0.30 )
Total distributions	(1.20 )	(0.86 )	(0.30 )	(1.03 )	(1.38 )	(0.58 )
Net asset value, end of period	$14.81	$15.13	$14.34	$12.81	$16.18	$15.81
Total return3	6.00 %	11.58 %	14.28 %	(14.33 )%	11.12 %	10.77 %
Net assets, end of period (000s)	$21,987	$20,778	$19,219	$15,171	$18,387	$13,579
Ratios to average net assets:
Gross expenses4	0.39 %5	0.39 %	0.39 %	0.38 %	0.37 %	0.39 %
Net expenses4,6	0.39 5	0.39	0.39	0.38	0.37	0.39 7
Net investment income	1.22 5	1.69	2.15	1.68	1.03	1.41
Portfolio turnover rate	13 %8	84 %	16 %	49 %	17 %	28 %

1	Per share amounts have been calculated using the average shares method.
2	For the six months ended June 30, 2025 (unaudited).
3	Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.
4	Does not include fees and expenses of the Underlying Funds in which the Portfolio invests.
5	Annualized.
6	As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses (fees and expenses of Underlying Funds), to average net assets of Class II shares did not exceed 0.45%. This expense limitation arrangement cannot be terminated prior to December 31, 2026 without the Board of Trustees’ consent.
7	Reflects fee waivers and/or expense reimbursements.
8	Excludes the value of securities received in lieu of cash proceeds from the sale of Underlying Funds and the subsequent sale of those securities.

See Notes to Financial Statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Notes to Financial Statements (unaudited)

1. Organization and significant accounting policies

Franklin Multi-Asset Variable Growth Fund (“Variable Growth”), Franklin Multi-Asset Variable Moderate Growth Fund (“Variable Moderate Growth”) and Franklin Multi-Asset Variable Conservative Growth Fund (“Variable Conservative Growth”) (the “Portfolios”) are separate diversified investment series of Legg Mason Partners Variable Equity Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Portfolios invest in Legg Mason and Franklin Templeton affiliated mutual funds and exchange-traded funds (“ETFs”) and ETFs managed by unaffiliated investment advisers (“Underlying Funds”). Shares of the Portfolios are offered to separate accounts sponsored by certain life insurance companies and qualified pension and retirement plans, including affiliates of the investment manager.

Shares of the Portfolios may only be purchased or redeemed through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies or through eligible pension or other qualified plans.

The Portfolios follow the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Portfolios and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(a) Investment valuation. Investments in the Underlying Funds are valued at the closing net asset value per share of each Underlying Fund on the day of valuation. Equity securities, including ETFs, for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. When the Portfolios hold securities or other assets that are denominated in a foreign currency, the Portfolios will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before each Portfolio calculates its net asset value, the Portfolios value these securities as determined in accordance with procedures approved by the Portfolios’ Board of Trustees (the “Board”).

Pursuant to policies adopted by the Board, the Portfolios’ manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Portfolios’ manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Portfolios’ pricing policies, and reporting to the Portfolios’ manager and the Board. When determining the reliability of third party pricing information for investments owned by the Portfolios, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Notes to Financial Statements (unaudited) (cont’d)

proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities. Additionally, if the closing net asset value per share for an Underlying Fund is not available on the day of valuation, the Valuation Committee may adjust the Underlying Fund’s last available net asset value per share to account for significant events that have occurred subsequent to the Underlying Fund’s last net asset value per share calculation but prior to the day of valuation.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board quarterly.

The Portfolios use valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

•

Level 1 — unadjusted quoted prices in active markets for identical investments

•

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3 — significant unobservable inputs (including the Portfolios’ own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Portfolios’ assets carried at fair value:

Variable Growth

ASSETS
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Investments in Underlying Funds†	$69,408,108	—	—	$69,408,108
Short-Term Investments†	860,213	—	—	860,213
Total Investments	$70,268,321	—	—	$70,268,321

†	See Schedule of Investments for additional detailed categorizations.

Variable Moderate Growth

ASSETS
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Investments in Underlying Funds†	$28,401,654	—	—	$28,401,654
Short-Term Investments†	378,966	—	—	378,966
Total Investments	$28,780,620	—	—	$28,780,620

†	See Schedule of Investments for additional detailed categorizations.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Variable Conservative Growth

ASSETS
Description	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Investments in Underlying Funds†	$74,603,845	—	—	$74,603,845
Short-Term Investments†	922,552	—	—	922,552
Total Investments	$75,526,397	—	—	$75,526,397

†	See Schedule of Investments for additional detailed categorizations.

(b) Fund of funds risk. The cost of investing in the Portfolios, as funds of funds, may be higher than the cost of investing in a mutual fund that only invests directly in individual securities. An Underlying Fund may change its investment objective or policies without the Portfolios’ approval, which could force the Portfolios to withdraw their investments from such Underlying Fund at a time that is unfavorable to the Portfolios. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Portfolios would indirectly bear the costs of these trades without accomplishing any investment purpose.

(c) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Net investment income distributions, if any, from the Underlying Funds are recorded on the ex-dividend date as investment income. Interest income is recorded on an accrual basis. Short-term and long-term capital gain distributions, if any, from the Underlying Funds are recorded on the ex-dividend date as realized gains. The character of certain distributions received from the Underlying Funds may represent a return of capital. The Portfolios determine the components of these distributions subsequent to the ex-dividend date, based on the actual tax character reported by the Underlying Funds. These distributions are recorded by adjusting the cost basis of the related Underlying Fund. The cost of investments sold is determined by use of the specific identification method.

(d) Distributions to shareholders. Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Portfolios are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Share class accounting. Investment income, common expenses and realized/unrealized gains (losses) on investments are allocated to the various classes of the Portfolios on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

(f) Compensating balance arrangements. The Portfolios had an arrangement with their custodian bank whereby a portion of the custodian’s fees was paid indirectly by credits earned on the Portfolios’ cash on deposit with the bank. Effective April 1, 2025, credits earned, if any, are recognized as income.

(g) Federal and other taxes. It is the Portfolios’ policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Portfolios intend to distribute their taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Portfolios’ financial statements.

Management has analyzed the Portfolios’ tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2024, no provision for income tax is required in the Portfolios’ financial statements. The Portfolios’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

(h) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

2. Investment management agreement and other transactions with affiliates

Franklin Templeton Fund Adviser, LLC (“FTFA”) is each Portfolio’s investment manager. Franklin Advisers, Inc. (“Franklin Advisers”) is each Portfolio’s subadviser. Western Asset Management Company, LLC (“Western Asset”) manages the portion of each Portfolio’s cash and short-term instruments allocated to it. FTFA, Franklin Advisers and Western Asset are

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Notes to Financial Statements (unaudited) (cont’d)

wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”). Under the investment management agreements, the Portfolios do not pay a management fee.

FTFA provides administrative and certain oversight services to the Portfolios. FTFA delegates to the subadviser the day-to-day portfolio management of the Portfolios, except for the management of the portion of each Portfolio’s cash and short-term instruments allocated to Western Asset.

The Portfolios indirectly bear their proportionate share of expenses from the Underlying Funds. Since the Underlying Funds have varied expense levels and the Portfolios may own different proportions of the Underlying Funds at different times, the amount of expenses incurred indirectly by the Portfolios will vary.

As a result of expense limitation arrangements between the Portfolios and FTFA, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses (fees and expenses of Underlying Funds), to average net assets of Class I shares of Variable Growth, Variable Moderate Growth and Variable Conservative Growth and Class II shares of Variable Conservative Growth did not exceed 0.20% and 0.45%, respectively. These expense limitation arrangements cannot be terminated prior to December 31, 2026 without the Board’s consent.

During the six months ended June 30, 2025, fees waived and/or expenses reimbursed were as follows:


Variable Moderate Growth	$19,734

FTFA is permitted to recapture amounts waived and/or reimbursed to a class during the same fiscal year if the class’ total annual fund operating expenses have fallen to a level below the expense limitation (“expense cap”) in effect at the time the fees were earned or the expenses incurred. In no case will FTFA recapture any amount that would result, on any particular business day of the Portfolios, in the class’ total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

In addition, the Portfolios indirectly pay management and/or administration fees to FTFA and certain FTFA affiliates as shareholders in the Underlying Funds. These management and/or administration fees ranged from 0.09% to 0.75% of the average daily net assets of the Underlying Funds.

Franklin Distributors, LLC (“Franklin Distributors”) serves as the Portfolios’ sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources. Franklin Templeton Investor Services, LLC (“Investor Services”) serves as the Portfolios’ shareholder servicing agent and acts as the Portfolios’ transfer agent and dividend-paying agent. Investor Services is an indirect, wholly-owned subsidiary of Franklin Resources. Each class of shares of the Portfolios pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Investor Services charges account-based fees based on the number of individual shareholder accounts, as well as a fixed percentage fee based on the total account-based fees charged. In addition, each class reimburses Investor Services for out of pocket expenses incurred. For the six months ended June 30, 2025, Variable Moderate Growth incurred transfer agent fees as reported on the Statements of Operations, of which $34 was earned by Investor Services.

All officers and one Trustee of the Trust are employees of Franklin Resources or its affiliates and do not receive compensation from the Trust.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

3. Investments

During the six months ended June 30, 2025, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

	Purchases	Sales
Variable Growth*	$9,995,005	$15,734,397
Variable Moderate Growth**	4,048,591	5,847,145
Variable Conservative Growth***	9,458,512	13,730,429

*	Excludes the value of securities received from the Underlying Funds and the subsequent sale of those securities, totaling $4,471,763 and $4,506,027, respectively.
**	Excludes the value of securities received from the Underlying Funds and the subsequent sale of those securities, totaling $1,519,902 and $1,533,789, respectively.
***	Excludes the value of securities received from the Underlying Funds and the subsequent sale of those securities, totaling $2,950,911 and $2,970,594, respectively.

During the six months ended June 30, 2025, Variable Growth, Variable Moderate Growth and Variable Conservative Growth received securities in lieu of cash proceeds from the sale of their Underlying Fund: BrandywineGLOBAL — Diversified US Large Cap Value Fund. Subsequently, the securities were sold. The realized gains and losses from the sale of these securities are noted in the Statements of Operations.

At June 30, 2025, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

	Variable Growth
	Cost	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation
Securities	$53,257,057	$19,606,597	$(2,595,333 )	$17,011,264

	Variable Moderate Growth
	Cost	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation
Securities	$23,580,054	$6,403,481	$(1,202,915 )	$5,200,566

	Variable Conservative Growth
	Cost	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation
Securities	$64,855,625	$12,968,270	$(2,297,498 )	$10,670,772

4. Derivative instruments and hedging activities

During the six months ended June 30, 2025, the Portfolios did not invest in derivative instruments.

5. Class specific expenses, waivers and/or expense reimbursements

Variable Conservative Growth has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Portfolio pays service and/or distribution fees with respect to its Class II shares calculated at the annual rate of 0.25% of the average daily net assets of the class. Service and/or distribution fees are accrued daily and paid monthly.

For the six months ended June 30, 2025, class specific expenses were as follows:

	Transfer Agent Fees
Variable Growth
Class I	$46

	Transfer Agent Fees
Variable Moderate Growth
Class I	$38

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Notes to Financial Statements (unaudited) (cont’d)

	Service and/or Distribution Fees	Transfer Agent Fees
Variable Conservative Growth
Class I	—	$45
Class II	$25,884	71
Total	$25,884	$116

For the six months ended June 30, 2025, waivers and/or expense reimbursements by class were as follows:

	Waivers/Expense Reimbursements
Variable Moderate Growth
Class I	$19,734

6. Distributions to shareholders by class

	Six Months Ended June 30, 2025	Year Ended December 31, 2024
Variable Growth
Net Investment Income:
Class I	$950,000	$1,367,749
Net Realized Gains:
Class I	$5,410,576	$5,634,312

	Six Months Ended June 30, 2025	Year Ended December 31, 2024
Variable Moderate Growth
Net Investment Income:
Class I	—	$451,391
Net Realized Gains:
Class I	$2,467,546	$1,670,852

	Six Months Ended June 30, 2025	Year Ended December 31, 2024
Variable Conservative Growth
Net Investment Income:
Class I	—	$1,434,724
Class II	—	493,244
Total	—	$1,927,968
Net Realized Gains:
Class I	$4,017,905	$1,733,132
Class II	1,635,510	653,263
Total	$5,653,415	$2,386,395

7. Shares of beneficial interest

At June 30, 2025, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Portfolios have the ability to issue multiple classes of shares. Each class of shares represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Transactions in shares of each class were as follows:

	Six Months Ended June 30, 2025		Year Ended December 31, 2024
	Shares	Amount	Shares	Amount
Variable Growth
Class I
Shares sold	8,651	$127,408	18,052	$250,730
Shares issued on reinvestment	467,689	6,360,576	489,609	7,002,061
Shares repurchased	(402,731 )	(5,777,730 )	(1,011,512 )	(14,913,135 )
Net increase (decrease)	73,609	$710,254	(503,851 )	$(7,660,344 )

	Six Months Ended June 30, 2025		Year Ended December 31, 2024
	Shares	Amount	Shares	Amount
Variable Moderate Growth
Class I
Shares sold	211	$3,112	18,195	$265,883
Shares issued on reinvestment	179,067	2,467,546	147,000	2,122,243
Shares repurchased	(119,819 )	(1,733,038 )	(228,527 )	(3,361,541 )
Net increase (decrease)	59,459	$737,620	(63,332 )	$(973,415 )

	Six Months Ended June 30, 2025		Year Ended December 31, 2024
	Shares	Amount	Shares	Amount
Variable Conservative Growth
Class I
Shares sold	6,588	$98,599	30,630	$472,572
Shares issued on reinvestment	274,634	4,017,905	208,361	3,167,856
Shares repurchased	(280,138 )	(4,272,735 )	(763,029 )	(11,826,127 )
Net increase (decrease)	1,084	$(156,231 )	(524,038 )	$(8,185,699 )
Class II
Shares sold	112,166	$1,714,797	177,925	$2,686,738
Shares issued on reinvestment	112,561	1,635,510	75,810	1,146,507
Shares repurchased	(113,909 )	(1,748,359 )	(220,214 )	(3,379,033 )
Net increase	110,818	$1,601,948	33,521	$454,212

8. Transactions with affiliated companies

As defined by the 1940 Act, an affiliated company is one in which the Portfolios own 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Portfolios. The following Underlying Funds were considered affiliated companies for all or some portion of the six months ended June 30, 2025. The following transactions were effected in such Underlying Funds for the six months ended June 30, 2025.

	Affiliate Value at December 31, 2024	Purchased		Sold		Realized Gain (Loss) from Sale of Affiliated Underlying Funds	Income Distributions from Affiliated Underlying Funds	Capital Gain Distributions from Affiliated Underlying Funds	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Affiliate Value at June 30, 2025
Variable Growth	Affiliate Value at December 31, 2024	Cost	Shares	Proceeds	Shares		Income Distributions from Affiliated Underlying Funds			Affiliate Value at June 30, 2025
Franklin Small Cap Value Fund, Class R6 Shares
	$1,483,863	$35,843	631	$367,807	6,736	$(35,582 )	—	—	$(15,625 )	$1,100,692
BrandywineGLOBAL — Diversified US Large Cap Value Fund, Class IS Shares
	4,388,129	16,823	798	4,612,557	220,095	1,417,628	—	—	(1,210,023 )	—
Franklin U.S. Small Cap Equity Fund, Class IS Shares
	1,142,010	65,928	5,351	98,264	7,785	(1,723 )	—	$3,241	22,578	1,130,529
ClearBridge Appreciation Fund, Class IS Shares
	5,290,506	17,389	493	646,971	18,883	138,087	—	—	186,611	4,985,622
ClearBridge Large Cap Growth Fund, Class IS Shares
	19,520,934	1,027,829	14,415	3,869,139	53,711	33,862	—	309,975	496,753	17,210,239

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Notes to Financial Statements (unaudited) (cont’d)

	Affiliate Value at December 31, 2024	Purchased		Sold		Realized Gain (Loss) from Sale of Affiliated Underlying Funds	Income Distributions from Affiliated Underlying Funds	Capital Gain Distributions from Affiliated Underlying Funds	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Affiliate Value at June 30, 2025
Variable Growth (cont’d)	Affiliate Value at December 31, 2024	Cost	Shares	Proceeds	Shares		Income Distributions from Affiliated Underlying Funds			Affiliate Value at June 30, 2025
ClearBridge Small Cap Growth Fund, Class IS Shares
	$1,987,121	$136,003	3,723	$540,862	14,174	$(16,882 )	—	—	$50,096	$1,615,476
Franklin U.S. Large Cap Equity Fund, Class IS Shares
	16,901,944	1,718,380	75,025	1,638,064	67,614	(17,720 )	—	$139,466	665,507	17,630,047
Putnam Large Cap Value Fund, Class R6 Shares
	4,347,691	4,619,880	128,539	836,943	23,968	(49,140 )	$33,792	—	407,928	8,489,416
Franklin International Equity Fund, Class IS Shares
	10,867,731	437,511	22,998	2,145,925	112,970	398,178	—	—	1,853,464	11,410,959
Franklin Investment Grade Corporate ETF
	360,058	145,172	6,828	75,046	3,532	(2,852 )	7,659	—	12,355	439,687
Franklin U.S. Core Bond ETF
	3,615,417	1,436,985	67,155	750,356	35,246	(25,937 )	70,377	—	99,703	4,375,812
Franklin U.S. Treasury Bond ETF
	840,855	337,262	16,424	175,089	8,599	(6,995 )	15,974	—	23,596	1,019,629
	$70,746,259	$9,995,005		$15,757,023		$1,830,924	$127,802	$452,682	$2,592,943	$69,408,108

	Affiliate Value at December 31, 2024	Purchased		Sold		Realized Gain (Loss) from Sale of Affiliated Underlying Funds	Income Distributions from Affiliated Underlying Funds	Capital Gain Distributions from Affiliated Underlying Funds	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Affiliate Value at June 30, 2025
Variable Moderate Growth	Affiliate Value at December 31, 2024	Cost	Shares	Proceeds	Shares		Income Distributions from Affiliated Underlying Funds			Affiliate Value at June 30, 2025
Franklin Small Cap Value Fund, Class R6 Shares
	$504,512	$13,198	235	$120,916	2,230	$(12,947 )	—	—	$(4,822 )	$379,025
BrandywineGLOBAL — Diversified US Large Cap Value Fund, Class IS Shares
	1,494,499	—	—	1,565,139	74,688	464,338	—	—	(393,698 )	—
Franklin U.S. Small Cap Equity Fund, Class IS Shares
	388,266	22,622	1,853	28,510	2,317	(1,625 )	—	$1,115	8,531	389,284
ClearBridge Appreciation Fund, Class IS Shares
	1,801,844	16,741	502	218,999	6,437	29,246	—	—	81,271	1,710,103
ClearBridge Large Cap Growth Fund, Class IS Shares
	6,648,042	444,693	6,265	1,394,159	19,261	14,136	—	105,962	178,700	5,891,412
ClearBridge Small Cap Growth Fund, Class IS Shares
	679,533	49,742	1,362	184,295	4,846	(6,596 )	—	—	17,708	556,092
Franklin U.S. Large Cap Equity Fund, Class IS Shares
	5,756,326	760,610	33,247	701,517	29,484	(20,279 )	—	47,677	240,249	6,035,389
Putnam Large Cap Value Fund, Class R6 Shares
	1,472,709	1,568,636	43,661	254,998	7,406	(18,785 )	$11,466	—	138,768	2,906,330
Franklin Investment Grade Corporate ETF
	459,826	80,164	3,786	52,171	2,453	(1,929 )	9,128	—	13,544	499,434
Franklin U.S. Core Bond ETF
	4,616,116	802,222	37,724	547,156	25,653	(17,852 )	83,947	—	116,671	4,970,001
Franklin U.S. Treasury Bond ETF
	1,073,664	191,296	9,388	130,469	6,396	(4,967 )	18,999	—	28,571	1,158,095
Franklin International Equity Fund, Class IS Shares
	3,698,590	98,667	5,178	658,802	34,698	70,086	—	—	697,948	3,906,489
	$28,593,927	$4,048,591		$5,857,131		$492,826	$123,540	$154,754	$1,123,441	$28,401,654

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

	Affiliate Value at December 31, 2024	Purchased		Sold		Realized Gain (Loss) from Sale of Affiliated Underlying Funds	Income Distributions from Affiliated Underlying Funds	Capital Gain Distributions from Affiliated Underlying Funds	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Affiliate Value at June 30, 2025
Variable Conservative Growth	Affiliate Value at December 31, 2024	Cost	Shares	Proceeds	Shares		Income Distributions from Affiliated Underlying Funds			Affiliate Value at June 30, 2025
Franklin Small Cap Value Fund, Class R6 Shares
	$1,007,305	$53,817	957	$287,628	5,228	$(26,253 )	—	—	$(7,597 )	$739,644
BrandywineGLOBAL — Diversified US Large Cap Value Fund, Class IS Shares
	2,936,369	—	—	3,075,299	146,745	312,836	—	—	(173,906 )	—
Franklin U.S. Small Cap Equity Fund, Class IS Shares
	775,609	65,652	5,383	109,702	8,655	8,499	—	$2,125	5,828	745,886
ClearBridge Appreciation Fund, Class IS Shares
	3,540,301	81,431	2,437	529,089	15,511	139,222	—	—	76,075	3,307,940
ClearBridge Large Cap Growth Fund, Class IS Shares
	13,062,254	1,048,006	14,813	3,076,788	42,376	85,404	—	204,414	297,722	11,416,598
ClearBridge Small Cap Growth Fund, Class IS Shares
	1,356,866	133,824	3,663	446,580	11,620	3,882	—	—	21,689	1,069,681
Franklin U.S. Large Cap Equity Fund, Class IS Shares
	11,314,557	1,604,308	70,163	1,655,085	69,412	(36,642 )	—	91,975	469,165	11,696,303
Putnam Large Cap Value Fund, Class R6 Shares
	2,893,802	3,027,470	84,230	516,886	15,111	(41,773 )	$22,581	—	270,106	5,632,719
Franklin Investment Grade Corporate ETF
	2,329,139	254,421	12,011	196,579	9,260	(7,650 )	45,348	—	64,070	2,443,401
Franklin U.S. Core Bond ETF
	23,380,796	2,541,661	119,605	2,094,625	98,363	(71,820 )	416,922	—	558,618	24,314,630
Franklin U.S. Treasury Bond ETF
	5,438,154	612,141	30,088	502,417	24,669	(19,949 )	94,316	—	137,809	5,665,738
Franklin International Equity Fund, Class IS Shares
	7,283,633	35,781	1,748	1,251,675	65,698	132,191	—	—	1,371,375	7,571,305
	$75,318,785	$9,458,512		$13,742,353		$477,947	$579,167	$298,514	$3,090,954	$74,603,845

9. Redemption facility

The Portfolios, together with other U.S. registered and foreign investment funds (collectively, the “Borrowers”) managed by Franklin Resources or its affiliates, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.995 billion (the “Global Credit Facility”). The 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. Unless renewed, the Global Credit Facility will terminate on January 30, 2026.

Under the terms of the Global Credit Facility, the Portfolios shall, in addition to interest charged on any borrowings made by the Portfolios and other costs incurred by the Portfolios, 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 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 the Statements of Operations. The Portfolios did not utilize the Global Credit Facility during the six months ended June 30, 2025.

10. Operating segments

The Portfolios have adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The update is limited to disclosure requirements and does not impact the Portfolios’ financial position or results of operations.

The Portfolios operate as a single operating segment, which is an investment portfolio. The Portfolios’ Investment Manager serves as the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements.

Franklin Variable Asset Allocation Series 2025 Semi-Annual Report

Board Approval of Management and

Subadvisory Agreements (unaudited)

Legg Mason Partners Variable Equity Trust
— Franklin Multi-Asset Variable Growth Fund

At an in-person meeting of the Board of Trustees of Legg Mason Partners Variable Equity Trust (the “Trust”) held on May 6-7, 2025, the Board, including the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended (the “1940 Act”), approved for an annual period the continuation of the management agreement (the “Management Agreement”) between the Trust and Franklin Templeton Fund Adviser, LLC (the “Manager”) with respect to Franklin Multi-Asset Variable Growth Fund, a series of the Trust (the “Fund”), and the sub-advisory agreement pursuant to which Franklin Advisers, Inc. (“Franklin Advisers”) provides day-to-day management of the Fund’s portfolio, and the sub-advisory agreement pursuant to which Western Asset Management Company, LLC (“Western Asset” and, together with Franklin Advisers, the “Sub-Advisers”) provides day-to-day management of the Fund’s cash and short-term instruments allocated to it by the Manager. The management agreement and sub-advisory agreements are collectively referred to as the “Agreements.”

Background

The Board received extensive information in advance of the meeting to assist it in its consideration of the Agreements and asked questions and requested additional information from management. Throughout the year the Board (including its various committees) had met with representatives of the Manager and the Sub-Advisers, and had received information relevant to the renewal of the Agreements. Prior to the meeting the Independent Trustees met with their independent legal counsel to discuss and consider the information provided and submitted questions to management, and they considered the responses provided. The Board received and considered a variety of information about the Manager and the Sub-Advisers, as well as the management and sub-advisory arrangements for the Fund and other funds overseen by the Board, certain portions of which are discussed below. The information received and considered by the Board both in conjunction with the May 2025 meeting and throughout the year was both written and oral. The contractual arrangements discussed below are the product of multiple years of review and negotiation and information received and considered by the Board during those years.

The information provided and presentations made to the Board encompassed the Fund and all funds for which the Board has responsibility. The discussion below covers both the advisory and the administrative functions being rendered by the Manager, both of which functions are encompassed by the Management Agreement, as well as the advisory functions rendered by the Sub-Advisers pursuant to the Sub-Advisory Agreements.

Board approval of management agreement and sub-advisory agreements

The Independent Trustees were advised by separate independent legal counsel throughout the process. Prior to voting, the Independent Trustees received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements. The Independent Trustees also reviewed the proposed continuation of the Management Agreement and the Sub-Advisory Agreements in private sessions with their independent legal counsel at which no representatives of the Manager and Sub-Advisers were present. The Independent Trustees considered the Management Agreement and each Sub-Advisory Agreement separately in the course of their review. In doing so, they noted the respective roles of the Manager and the Sub-Advisers in providing services to the Fund.

In approving the Agreements, the Board, including the Independent Trustees, considered a variety of factors, including those factors discussed below. No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve the Management Agreement and the Sub-Advisory Agreements. Each Trustee may have attributed different weight to the various factors in evaluating the Management Agreement and each Sub-Advisory Agreement.

After considering all relevant factors and information, the Board, exercising its business judgment, determined that the continuation of the Agreements was in the best interests of the Fund and its shareholders and approved the continuation of each such agreement for another year.

Nature, extent and quality of the services under the management agreement and sub-advisory agreements

The Board received and considered information regarding the nature, extent and quality of services provided to the Fund by the Manager and the Sub-Advisers under the Management Agreement and the Sub-Advisory Agreements, respectively,

Franklin Variable Asset Allocation Series

during the past year. The Board noted information received at regular meetings throughout the year related to the services rendered by the Manager in its management of the Fund’s affairs and the Manager’s role in coordinating the activities of the Fund’s other service providers. The Board’s evaluation of the services provided by the Manager and the Sub-Advisers took into account the Board’s knowledge gained as Trustees of funds in the fund complex overseen by the Trustees, including knowledge gained regarding the scope and quality of the investment management and other capabilities of the Manager and the Sub-Advisers, and the quality of the Manager’s administrative and other services. The Board observed that the scope of services provided by the Manager and the Sub-Advisers, and of the undertakings required of the Manager and Sub-Advisers in connection with those services, including maintaining and monitoring their own and the Fund’s compliance programs, liquidity risk management programs, derivatives risk management programs, cybersecurity programs and valuation-related policies, had expanded over time as a result of regulatory, market and other developments. The Board also noted that on a regular basis it received and reviewed information from the Manager regarding the Fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board also considered the risks associated with the Fund borne by the Manager and its affiliates (such as entrepreneurial, operational, reputational, litigation and regulatory risk), as well as the Manager’s and each Sub-Adviser’s risk management processes.

The Board reviewed the qualifications, backgrounds and responsibilities of the Manager’s and each Sub-Adviser’s senior personnel and the team of investment professionals primarily responsible for the day-to-day portfolio management of the Fund. The Board also considered, based on its knowledge of the Manager and the Manager’s affiliates, the financial resources of Franklin Resources, Inc., the parent organization of the Manager and the Sub-Advisers. The Board recognized the importance of having a fund manager with significant resources.

The Board considered the division of responsibilities among the Manager and the Sub-Advisers and the oversight provided by the Manager. The Board also considered the policies and practices of the Manager and the Sub-Advisers regarding the selection of brokers and dealers and the execution of portfolio transactions. The Board considered management’s periodic reports to the Board on, among other things, its business plans, any organizational changes and portfolio manager compensation.

The Board received and considered performance information for the Fund as well as for a group of funds (the “Performance Universe”) selected by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, based on classifications provided by Thomson Reuters Lipper (“Lipper”). The Board was provided with a description of the methodology used to determine the similarity of the Fund with the funds included in the Performance Universe. It was noted that while the Board found the Broadridge data generally useful, they recognized its limitations, including that the data may vary depending on the end date selected and that the results of the performance comparisons may vary depending on the selection of the peer group and its composition over time. The Board also noted that it had received and discussed with management information throughout the year at periodic intervals comparing the Fund’s performance against its benchmark and against the Fund’s peers. The Board also considered the Fund’s performance in light of overall financial market conditions.

The information comparing the Fund’s performance to that of its Performance Universe, consisting of funds (including the Fund) classified as mixed-asset target allocation aggressive growth funds underlying variable insurance products by Lipper, showed, among other data, that the performance of the Fund’s Class I shares for the 1-, 3-, 5- and 10-year periods ended December 31, 2024 was above the median performance of the funds in the Performance Universe for each period.

The Board concluded that, overall, the nature, extent and quality of services provided (and expected to be provided), including performance, under the Management Agreement and each Sub-Advisory Agreement were sufficient for renewal.

Expense ratios

The Board noted that the Fund bears indirectly its pro rata share of the expenses of the underlying funds in which it invests, including management fees payable by such underlying funds to the Manager or its affiliates. The Board noted that there is no management fee payable by the Fund to the Manager or sub-investment advisory fees payable by the Fund to the Sub-Advisers.

The Board received an analysis of complex-wide management fees provided by the Manager, which, among other things, set out a framework of fees based on asset classes.

Franklin Variable Asset Allocation Series

Board Approval of Management and

Subadvisory Agreements (unaudited) (cont’d)

The Board also received and considered information comparing the Fund’s overall expense ratio with those of a group of nine mixed-asset target allocation aggressive growth funds of funds underlying variable insurance products (including the Fund) selected by Broadridge to be comparable to the Fund (the “Expense Group”), and a broader group of funds selected by Broadridge consisting of mixed-asset target allocation aggressive growth funds of funds underlying variable insurance products (including the Fund) (the “Expense Universe”). This information showed that the Fund’s actual total expense ratio was approximately equivalent to the median of the total expense ratios of the funds in the Expense Group, before including underlying fund expenses, and approximately equivalent to the median of the actual total expense ratios of the funds in the Expense Universe, after including underlying fund expenses. The Board also considered that the current limitation on the Fund’s expenses is expected to continue until and expire on December 31, 2026.

Taking all of the above into consideration, as well as the factors identified below, the Board determined that the fee and expense arrangements for the Fund were reasonable in light of the nature, extent and quality of the services provided to the Fund under the Management Agreement and the Sub-Advisory Agreements.

Manager profitability

The Board received and considered an analysis of the profitability of the Manager and its affiliates in providing services to the Fund. The Board also received profitability information with respect to the Legg Mason Funds complex as a whole. The Board received information with respect to the Manager’s allocation methodologies used in preparing this profitability data. It was noted that the allocation methodologies had been reviewed by an outside consultant. The profitability of the Manager and its affiliates was considered by the Board not excessive in light of the nature, extent and quality of the services provided to the Fund.

Economies of scale

The Board received and discussed information concerning whether the Manager realizes economies of scale with respect to the management of the Fund as the Fund’s assets grow. The Board also noted the size of the Fund.

The Board determined that the management fee structure for the Fund was reasonable.

Other benefits to the manager and the sub-advisers

The Board considered other benefits received by the Manager, the Sub-Advisers and their affiliates as a result of their relationship with the Fund, including the opportunity to offer additional products and services to Fund shareholders, including the appointment of an affiliate of the Manager as the transfer agent of the Fund.

In light of the costs of providing investment management and other services to the Fund and the ongoing commitment of the Manager and the Sub-Advisers to the Fund, the Board considered that the ancillary benefits that the Manager, the Sub-Advisers and their affiliates received were reasonable.

Franklin Variable Asset Allocation Series

Legg Mason Partners Variable Equity Trust
— Franklin Multi-Asset Variable Moderate Growth Fund

At an in-person meeting of the Board of Trustees of Legg Mason Partners Variable Equity Trust (the “Trust”) held on May 6-7, 2025, the Board, including the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended (the “1940 Act”), approved for an annual period the continuation of the management agreement (the “Management Agreement”) between the Trust and Franklin Templeton Fund Adviser, LLC (the “Manager”) with respect to Franklin Multi-Asset Variable Moderate Growth Fund, a series of the Trust (the “Fund”), and the sub-advisory agreement pursuant to which Franklin Advisers, Inc. (“Franklin Advisers”) provides day-to-day management of the Fund’s portfolio, and the sub-advisory agreement pursuant to which Western Asset Management Company, LLC (“Western Asset” and, together with Franklin Advisers, the “Sub-Advisers”) provides day-to-day management of the Fund’s cash and short-term instruments allocated to it by the Manager. The management agreement and sub-advisory agreements are collectively referred to as the “Agreements.”

Background

Board approval of management agreement and sub-advisory agreements

Nature, extent and quality of the services under the management agreement and sub-advisory agreements

Franklin Variable Asset Allocation Series

Board Approval of Management and

Subadvisory Agreements (unaudited) (cont’d)

The information comparing the Fund’s performance to that of its Performance Universe, consisting of funds (including the Fund) classified as mixed-asset target allocation growth funds underlying variable insurance products by Lipper, showed, among other data, that the performance of the Fund’s Class I shares for the 1-, 3-, 5- and 10-year periods ended December 31, 2024 was above the median performance of the funds in the Performance Universe for each period.

Expense ratios

The Board received an analysis of complex-wide management fees provided by the Manager, which, among other things, set out a framework of fees based on asset classes.

Franklin Variable Asset Allocation Series

The Board also received and considered information comparing the Fund’s overall expense ratio with those of a group of 13 mixed-asset target allocation growth funds of funds underlying variable insurance products (including the Fund) selected by Broadridge to be comparable to the Fund (the “Expense Group”), and a broader group of funds selected by Broadridge consisting of mixed-asset target allocation growth funds of funds underlying variable insurance products (including the Fund) (the “Expense Universe”). This information showed that the Fund’s actual total expense ratio was above the median of the total expense ratios of the funds in the Expense Group, before including underlying fund expenses, and above the median of the actual total expense ratios of the funds in the Expense Universe, after including underlying fund expenses. The Board took into account management’s discussion of the Fund’s expenses. The Board also considered that the current limitation on the Fund’s expenses is expected to continue until and expire on December 31, 2026.

Manager profitability

Economies of scale

The Board determined that the management fee structure for the Fund was reasonable.

Other benefits to the manager and the sub-advisers

Franklin Variable Asset Allocation Series

Board Approval of Management and

Subadvisory Agreements (unaudited) (cont’d)

Legg Mason Partners Variable Equity Trust
— Franklin Multi-Asset Variable Conservative Growth Fund

At an in-person meeting of the Board of Trustees of Legg Mason Partners Variable Equity Trust (the “Trust”) held on May 6-7, 2025, the Board, including the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended (the “1940 Act”), approved for an annual period the continuation of the management agreement (the “Management Agreement”) between the Trust and Franklin Templeton Fund Adviser, LLC (the “Manager”) with respect to Franklin Multi-Asset Variable Conservative Growth Fund, a series of the Trust (the “Fund”), and the sub-advisory agreement pursuant to which Franklin Advisers, Inc. (“Franklin Advisers”) provides day-to-day management of the Fund’s portfolio, and the sub-advisory agreement pursuant to which Western Asset Management Company, LLC (“Western Asset” and, together with Franklin Advisers, the “Sub-Advisers”) provides day-to-day management of the Fund’s cash and short-term instruments allocated to it by the Manager. The management agreement and sub-advisory agreements are collectively referred to as the “Agreements.”

Background

Board approval of management agreement and sub-advisory agreements

Nature, extent and quality of the services under the management agreement and sub-advisory agreements

Franklin Variable Asset Allocation Series

The information comparing the Fund’s performance to that of its Performance Universe, consisting of funds (including the Fund) classified as mixed-asset target allocation moderate funds underlying variable insurance products by Lipper, showed, among other data, that the performance of the Fund’s Class I shares for the 1-, 3-, 5- and 10-year periods ended December 31, 2024 was above the median performance of the funds in the Performance Universe for each period.

Expense ratios

The Board received an analysis of complex-wide management fees provided by the Manager, which, among other things, set out a framework of fees based on asset classes.

Franklin Variable Asset Allocation Series

Board Approval of Management and

Subadvisory Agreements (unaudited) (cont’d)

The Board also received and considered information comparing the Fund’s overall expense ratio with those of a group of 11 mixed-asset target allocation moderate funds of funds underlying variable insurance products (including the Fund) selected by Broadridge to be comparable to the Fund (the “Expense Group”), and a broader group of funds selected by Broadridge consisting of mixed-asset target allocation moderate funds of funds underlying variable insurance products (including the Fund) (the “Expense Universe”). This information showed that the Fund’s actual total expense ratio was at the median of the total expense ratios of the funds in the Expense Group, before including underlying fund expenses, and approximately equivalent to the median of the actual total expense ratios of the funds in the Expense Universe, after including underlying fund expenses. The Board also considered that the current limitation on the Fund’s expenses is expected to continue until and expire on December 31, 2026.

Manager profitability

Economies of scale

The Board determined that the management fee structure for the Fund was reasonable.

Other benefits to the manager and the sub-advisers

Franklin Variable Asset Allocation Series

Franklin
Variable Asset Allocation Series

Trustees

Andrew L. Breech

Stephen R. Gross

Susan M. Heilbron

Arnold L. Lehman

Robin J. W. Masters

Ken Miller

G. Peter O’Brien
Chair

Thomas F. Schlafly

Jane Trust

Investment manager

Franklin Templeton Fund Adviser, LLC

Subadviser

Franklin Advisers, Inc.

Distributor

Franklin Distributors, LLC

Custodian

The Bank of New York Mellon

Transfer agent

Franklin Templeton Investor
Services, LLC
3344 Quality Drive
Rancho Cordova, CA 95670-7313

Independent registered public
accounting firm

PricewaterhouseCoopers LLP
Baltimore, MD

Franklin Variable Asset Allocation Series
Franklin Multi-Asset Variable Growth Fund
Franklin Multi-Asset Variable Moderate Growth Fund
Franklin Multi-Asset Variable Conservative Growth Fund

The Portfolios are separate investment series of Legg Mason Partners Variable Equity Trust, a Maryland statutory trust.

Franklin Variable Asset Allocation Series
Legg Mason Funds
One Madison Avenue, 17th Floor
New York, NY 10010

The Portfolios file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Portfolios’ Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Portfolios at 877-6LM-FUND/656-3863.

Information on how the Portfolios voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Portfolios use to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Portfolios at 877-6LM-FUND/656-3863, (2) at www.franklintempleton.com and (3) on the SEC’s website at www.sec.gov.

This report is submitted for the general information of the shareholders of Franklin Multi-Asset Variable Growth Fund, Franklin Multi-Asset Variable Moderate Growth Fund and Franklin Multi-Asset Variable Conservative Growth Fund. This report is not authorized for distribution to prospective investors in the Portfolios unless preceded or accompanied by a current prospectus.

Investors should consider each Portfolio’s investment objectives, risks, charges and expenses carefully before investing. Each prospectus contains this and other important information about the Portfolios. Please read the prospectuses carefully before investing.

www.franklintempleton.com

Franklin Templeton Funds Privacy and Security Notice

Your Privacy Is Our Priority

Franklin Templeton* is committed to safeguarding your personal information. This notice is designed to provide you with a summary of the non-public personal information Franklin Templeton may collect and maintain about current or former individual investors; our policy regarding the use of that information; and the measures we take to safeguard the information. We do not sell individual investors’ non-public personal information to anyone and only share it as described in this notice.

Information We Collect

When you invest with us, you provide us with your non-public personal information. We collect and use this information to service your accounts and respond to your requests. The non-public personal information we may collect falls into the following categories:

• Information we receive from you or your financial intermediary on applications or other forms, whether we receive the form in writing or electronically. For example, this information may include your name, address, tax identification number, birth date, investment selection, beneficiary information, and your personal bank account information and/or email address if you have provided that information.

• Information about your transactions and account history with us, or with other companies that are part of Franklin Templeton, including transactions you request on our website or in our app. This category also includes your communications to us concerning your investments.

• Information we receive from third parties (for example, to update your address if you move, obtain or verify your email address or obtain additional information to verify your identity).

• Information collected from you online, such as your IP address or device ID and data gathered from your browsing activity and location. (For example, we may use cookies to collect device and browser information so our website recognizes your online preferences and device information.) Our website contains more information about cookies and similar technologies and ways you may limit them.

• Other general information that we may obtain about you such as demographic information.

Disclosure Policy

To better service your accounts and process transactions or services you requested, we may share non-public personal information with other Franklin Templeton companies. From time to time we may also send you information about products/services offered by other Franklin Templeton companies although we will not share your non-public personal information with these companies without first offering you the opportunity to prevent that sharing.

We will only share non-public personal information with outside parties in the limited circumstances permitted by law. For example, this includes situations where we need to share information with companies who work on our behalf to service or maintain your account or process transactions you requested, when the disclosure is to companies assisting us with our own marketing efforts, when the disclosure is to a party representing you, or when required by law (for example, in response to legal process). Additionally, we will ensure that any outside companies working on our behalf, or with whom we have joint marketing agreements, are under contractual obligations to protect the confidentiality of your information, and to use it only to provide the services we asked them to perform.

Confidentiality and Security

Our employees are required to follow procedures with respect to maintaining the confidentiality of our investors’ non-public personal information. Additionally, we maintain physical, electronic and procedural safeguards to protect the information. This includes performing ongoing evaluations of our systems containing investor information and making changes when appropriate.

At all times, you may view our current privacy notice on our website at
https://www.franklintempleton.com/help/privacy-policy or contact us for a copy at (800) 632-2301.

NOT PART OF THE SEMI-ANNUAL REPORT

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

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.

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, there unto duly authorized.

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.

For the Six Months Ended June 30, 2025 (unaudited) and the Year Ended December 31, 2024	2025	2024
Operations:
Net investment income	$87,899	$642,873
Net realized gain	2,295,244	11,783,963
Change in net unrealized appreciation (depreciation)	2,592,943	(237,542)
Increase in Net Assets From Operations	4,976,086	12,189,294
Distributions to Shareholders From (Notes 1 and 6):
Total distributable earnings	(6,360,576)	(7,002,061)
Decrease in Net Assets From Distributions to Shareholders	(6,360,576)	(7,002,061)
Portfolio Share Transactions (Note 7):
Net proceeds from sale of shares	127,408	250,730
Reinvestment of distributions	6,360,576	7,002,061
Cost of shares repurchased	(5,777,730 )	(14,913,135 )
Increase (Decrease) in Net Assets From Portfolio Share Transactions	710,254	(7,660,344)
Decrease in Net Assets	(674,236)	(2,473,111)
Net Assets:
Beginning of period	70,870,989	73,344,100
End of period	$70,196,753	$70,870,989

For the Six Months Ended June 30, 2025 (unaudited) and the Year Ended December 31, 2024	2025	2024
Operations:
Net investment income	$99,848	$350,391
Net realized gain	651,481	4,090,200
Change in net unrealized appreciation (depreciation)	1,123,441	(321,411)
Increase in Net Assets From Operations	1,874,770	4,119,180
Distributions to Shareholders From (Notes 1 and 6):
Total distributable earnings	(2,467,546)	(2,122,243)
Decrease in Net Assets From Distributions to Shareholders	(2,467,546)	(2,122,243)
Portfolio Share Transactions (Note 7):
Net proceeds from sale of shares	3,112	265,883
Reinvestment of distributions	2,467,546	2,122,243
Cost of shares repurchased	(1,733,038 )	(3,361,541 )
Increase (Decrease) in Net Assets From Portfolio Share Transactions	737,620	(973,415)
Increase in Net Assets	144,844	1,023,522
Net Assets:
Beginning of period	28,575,226	27,551,704
End of period	$28,720,070	$28,575,226

For the Six Months Ended June 30, 2025 (unaudited) and the Year Ended December 31, 2024	2025	2024
Operations:
Net investment income	$513,644	$1,473,696
Net realized gain	784,220	8,238,444
Change in net unrealized appreciation (depreciation)	3,090,954	(804,970)
Increase in Net Assets From Operations	4,388,818	8,907,170
Distributions to Shareholders From (Notes 1 and 6):
Total distributable earnings	(5,653,415)	(4,314,363)
Decrease in Net Assets From Distributions to Shareholders	(5,653,415)	(4,314,363)
Portfolio Share Transactions (Note 7):
Net proceeds from sale of shares	1,813,396	3,159,310
Reinvestment of distributions	5,653,415	4,314,363
Cost of shares repurchased	(6,021,094 )	(15,205,160 )
Increase (Decrease) in Net Assets From Portfolio Share Transactions	1,445,717	(7,731,487)
Increase (Decrease) in Net Assets	181,120	(3,138,680)
Net Assets:
Beginning of period	75,450,466	78,589,146
End of period	$75,631,586	$75,450,466


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

Schedules of Investments	1
Statements of Assets and Liabilities	4
Statements of Operations	5
Statements of Changes in Net Assets	6
Financial Highlights	9
Notes to Financial Statements	13
Changes in and Disagreements with Accountants	23
Results of Meeting(s) of Shareholders	23
Remuneration Paid to Directors, Officers and Others	23
Board Approval of Management and Subadvisory Agreements	24

Changes in and Disagreements with Accountants	For the period covered by this report
Not applicable.
Results of Meeting(s) of Shareholders	For the period covered by this report
Not applicable.
Remuneration Paid to Directors, Officers and Others	For the period covered by this report
Refer to the financial statements included herein.

Legg Mason Partners Variable Equity Trust

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer

Date:	August 19, 2025