Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

FSS3-Q3PH

1

Schedules

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CH

2

Franklin

Templeton

SMACS:

Series

E

5

Franklin

Templeton

SMACS:

Series

H

11

Franklin

Templeton

SMACS:

Series

I

19

Notes

to

Schedules

of

Investments

26

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2025

Franklin

Templeton

SMACS:

Series

CH

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

2

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

0.8%

Diversified

Consumer

Services

0.8%

Grand

Canyon

University

,

Secured

Note

,

5.125

%

,

10/01/28

....................

$

250,000

$

236,950

Total

Corporate

Bonds

(Cost

$231,627)

........................................

236,950

Municipal

Bonds

98.5%

Arizona

1.8%

a

Maricopa

County

Industrial

Development

Authority

,

Grand

Canyon

University

Obligated

Group

,

Revenue

,

144A,

2024

,

7.375

%

,

10/01/29

..........................

505,000

517,511

California

95.9%

Alameda

Community

Facilities

District

,

City

of

Alameda

Community

Facilities

District

No.

22-1

,

Special

Tax

,

2023

,

5

%

,

9/01/53

................................

125,000

123,307

Beaumont

Unified

School

District

,

Community

Facilities

District

No.

2020-1

Improvement

Area

No.

2

,

Special

Tax

,

2023

,

5

%

,

9/01/53

....................

150,000

148,413

b

California

Community

Choice

Financing

Authority

,

Revenue

,

2023

C

,

Mandatory

Put

,

5.25

%

,

10/01/31

...................................................

1,000,000

1,035,720

a

California

Community

College

Financing

Authority

,

NCCD-Napa

Valley

Properties

LLC

,

Revenue

,

144A,

2022

A

,

5.75

%

,

7/01/60

................................

500,000

413,482

a

California

Community

Housing

Agency

,

Annadel

Apartments,

Revenue,

144A,

2019

A,

5%,

4/01/49

..................

1,200,000

972,115

Mira

Vista

Hills

Apartments,

Revenue,

144A,

2021

A,

4%,

2/01/56

.............

300,000

147,382

Serenity

at

Larkspur

Apartments,

Revenue,

144A,

2020

A,

5%,

2/01/50

.........

1,000,000

700,038

c

Twin

Creek

Apartments,

Revenue,

Senior

Lien,

144A,

2022

A-2,

8.06%,

8/01/65

...

1,250,000

45,821

California

Educational

Facilities

Authority

,

St.

Mary's

College

of

California

,

Revenue

,

2023

A

,

Refunding

,

5.5

%

,

10/01/53

....................................

1,000,000

1,013,224

a

California

Enterprise

Development

Authority

,

Real

Journey

Academies

Obligated

Group

,

Revenue

,

144A,

2024

A

,

5

%

,

6/01/54

.............................

500,000

459,089

a,b

California

Infrastructure

&

Economic

Development

Bank

,

Desertxpress

Enterprises

LLC

,

Revenue

,

144A,

2025

A

,

Refunding

,

Mandatory

Put

,

9.5

%

,

1/01/35

........

285,000

276,242

d

California

Muncipal

Finance

Authority

,

8

%

,

12/01/42

.........................

600,000

601,376

California

Municipal

Finance

Authority

,

Special

Tax,

2024

D,

5%,

9/01/54

......................................

380,000

366,281

a

Ascent

613,

Revenue,

144A,

2025

A,

5.375%,

1/01/55

......................

500,000

466,171

BOLD

Program,

Special

Tax,

2022

B,

Refunding,

6%,

9/01/52

................

150,000

156,523

BOLD

Program,

Special

Tax,

2022

C,

6.25%,

9/01/52

.......................

150,000

158,758

BOLD

Program,

Special

Tax,

2022

D,

6.125%,

9/01/52

......................

150,000

157,641

BOLD

Program,

Special

Tax,

2023

A,

5.5%,

9/01/53

........................

100,000

103,062

BOLD

Program,

Special

Tax,

2023

C,

5.25%,

9/01/53

.......................

1,000,000

1,003,876

BOLD

Program,

Special

Tax,

2024

A,

5%,

9/01/48

.........................

100,000

100,253

a

Claremont

Graduate

University,

Revenue,

144A,

2020

B,

Refunding,

5%,

10/01/49

.

125,000

111,687

Community

Facilities

District

No.

2021-6

Improvement

Area

No.

2,

Special

Tax,

2022,

6%,

9/01/52

....................................................

150,000

156,523

Community

Facilities

District

No.

2023-5

Area

No.

1,

Special

Tax,

2023,

5.8%,

9/01/53

........................................................

1,000,000

1,043,797

Community

Facilities

District

No.

2023-5

Improvement

Area

No.

2,

Special

Tax,

2024,

5%,

9/01/54

....................................................

500,000

481,949

a,c

IH

Parkside

Fairfield

LLC,

Revenue,

144A,

2023

B,

2.617%,

9/01/43

...........

250,000

176,923

a

St.

Mary

and

All

Angels

Christian

Church,

Revenue,

144A,

2024

A,

5.75%,

5/01/54

.

200,000

199,675

a

Westside

Neighborhood

School,

Revenue,

144A,

2024,

6.375%,

6/15/64

........

250,000

261,023

a

California

Public

Finance

Authority

,

Kendal

at

Sonoma

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

5

%

,

11/15/46

.................................

1,250,000

1,134,272

a

California

School

Finance

Authority

,

Integrity

Charter

School,

Revenue,

144A,

2024,

5.6%,

7/01/64

................

500,000

459,901

Orange

County

Educational

Arts

Academy,

Revenue,

144A,

2023

A,

Refunding,

5.875%,

6/01/53

.................................................

100,000

98,843

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CH

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

3

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Statewide

Communities

Development

Authority

,

Special

Tax,

2023

A,

5.25%,

9/01/51

...................................

$

100,000

$

101,019

Community

Facilities

District

No.

2021-1,

Special

Tax,

2023,

5%,

9/01/53

........

150,000

147,969

Community

Facilities

District

No.

2022-03,

Special

Tax,

2023,

5%,

9/01/53

.......

150,000

147,307

Community

Facilities

District

No.

2022-07

Improvement

Area

No.

1,

Special

Tax,

2023,

5%,

9/01/53

................................................

150,000

148,858

Community

Facilities

District

No.

2022-08

Improvement

Area,

Special

Tax,

2024,

5.25%,

9/01/45

..................................................

150,000

150,263

Community

Facilities

District

No.

2024-9,

Special

Tax,

2024,

5%,

9/01/54

........

100,000

96,826

Community

Infrastructure

Program

Assessment

District

No.

20-02,

Special

Assessment,

2023,

5.75%,

9/02/53

...................................

1,000,000

1,016,944

a

Loma

Linda

University

Medical

Center

Obligated

Group,

Revenue,

144A,

2016

A,

5.25%,

12/01/56

.................................................

250,000

242,754

a

NCCD-Hooper

Street

LLC,

Revenue,

144A,

2019,

5.25%,

7/01/49

.............

100,000

95,559

a

NCCD-Hooper

Street

LLC,

Revenue,

144A,

2019,

5.25%,

7/01/52

.............

200,000

188,443

Chino

Community

Facilities

District

,

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2023

,

5.625

%

,

9/01/53

..........................................

1,000,000

1,036,918

a

City

&

County

of

San

Francisco

,

Community

Facilities

District

No.

2016-1

Improvement

Area

2,

Special

Tax,

144A,

2023

A,

5.25%,

9/01/48

............................................

965,000

970,622

District

No.

2020-1

Shoreline

Tax

Zone

1,

Special

Tax,

144A,

2023

C,

5.75%,

9/01/53

1,500,000

1,547,482

City

of

Dublin

,

Community

Facilities

District

No.

2015-1

Improvement

Area

No.

5

,

Special

Tax

,

2023

,

5.375

%

,

9/01/51

....................................

1,250,000

1,271,578

City

of

Lake

Elsinore

,

Community

Facilities

District

No.

2006-8

,

Special

Tax

,

2023

,

5

%

,

9/01/53

.........................................................

150,000

147,748

City

of

Menifee

,

Community

Facilities

District

No.

2023-2

Improvement

Area

No.

1

,

Special

Tax

,

2025

A

,

5

%

,

9/01/55

......................................

250,000

241,535

City

of

Rancho

Cordova

,

Arista

Del

Sol

Community

Facilities

District

No.

2022-1

Improvement

Area

No.

1,

Special

Tax,

2023,

5.375%,

9/01/53

...................................

200,000

203,398

Ranch

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

2,

Special

Tax,

2025,

5%,

9/01/54

............................................

500,000

474,788

a

CSCDA

Community

Improvement

Authority

,

CTR

City

Anaheim,

Revenue,

144A,

2020

A,

5%,

1/01/54

....................

400,000

357,757

Dublin,

Revenue,

144A,

2021

B,

4%,

2/01/57

.............................

140,000

101,223

Eastern

Municipal

Water

District

,

Community

Facilities

District

No.

2018-80

,

Special

Tax

,

2025

,

5

%

,

9/01/54

.............................................

600,000

582,707

Folsom

Ranch

Financing

Authority

,

City

of

Folsom

Community

Facilities

District

No.

23

Improvement

Area

No.

4

,

Special

Tax

,

2024

,

5

%

,

9/01/54

....................

300,000

290,915

Galt

Community

Facilities

District

,

City

of

Galt

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

1

,

Special

Tax

,

2023

A

,

6

%

,

9/01/53

..................

1,500,000

1,571,276

a

Los

Angeles

Housing

Authority

,

Housing

Pathways,

Inc.

,

Revenue

,

144A,

2024

B

,

6

%

,

12/01/62

........................................................

600,000

542,352

e

Moreno

Valley

Unified

School

District

,

Community

Facilities

District

No.

2023-1

,

Special

Tax

,

2025

,

5

%

,

9/01/55

.............................................

250,000

242,645

Mountain

House

Community

Facilities

District

,

City

of

Mountain

House

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

1

,

Special

Tax

,

2025

,

5

%

,

9/01/55

.........................................................

400,000

382,361

Orange

County

Community

Facilities

District

,

Community

Facilities

District

No.

2023-1

,

Special

Tax

,

2023

A

,

5.5

%

,

8/15/53

....................................

1,000,000

1,032,522

River

Islands

Public

Financing

Authority

,

Community

Facilities

District

2023-1

Area

No.

1,

Special

Tax,

2023,

5.625%,

9/01/53

1,000,000

1,021,370

Community

Facilities

District

No.

2023-1

Improvement

Area

2,

Special

Tax,

2024,

5%,

9/01/54

........................................................

670,000

640,029

e

Root

Creek

Water

District

,

Community

Facilities

District

No.

2016-1

Improvement

Area

No.

3

,

Special

Tax

,

2025

,

5.25

%

,

9/01/55

................................

225,000

222,847

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CH

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

4

See

Abbreviations

on

page

30

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

University

of

California

,

Revenue

,

2025

CC

,

5

%

,

5/15/53

......................

$

200,000

$

206,482

Washington

Township

Health

Care

District

,

Revenue

,

2023

A

,

5.75

%

,

7/01/48

......

150,000

156,777

28,154,641

Florida

0.3%

a,b

Florida

Development

Finance

Corp.

,

AAF

Operations

Holdings

LLC

,

Revenue

,

144A,

2024

,

Refunding

,

Mandatory

Put

,

12

%

,

7/15/28

...........................

100,000

103,838

U.S.

Territories

0.5%

Puerto

Rico

0.5%

GDB

Debt

Recovery

Authority

of

Puerto

Rico

,

7.5

%

,

8/20/40

...................

146,039

140,342

Total

Municipal

Bonds

(Cost

$28,777,574)

......................................

28,916,332

Total

Long

Term

Investments

(Cost

$29,009,201)

................................

29,153,282

a

a

a

a

a

Short

Term

Investments

1.4%

Municipal

Bonds

1.4%

California

1.4%

f

Irvine

Ranch

Water

District

,

Water

Service

Corp.

,

Special

Assessment

,

2009

B

,

LOC

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

2.35

%

,

10/01/41

..................

100,000

100,000

f

Los

Angeles

Department

of

Water

&

Power

,

Power

System

,

Revenue

,

2023

C-1

,

SPA

TD

Bank

NA

,

Daily

VRDN

and

Put

,

3.1

%

,

7/01/57

.........................

300,000

300,000

400,000

Total

Municipal

Bonds

(Cost

$400,000)

.........................................

400,000

Total

Short

Term

Investments

(Cost

$400,000)

..................................

400,000

a

Total

Investments

(Cost

$29,409,201)

100.7%

...................................

$29,553,282

Other

Assets,

less

Liabilities

(0.7)%

...........................................

(185,178)

Net

Assets

100.0%

...........................................................

$29,368,104

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

May

31,

2025,

the

aggregate

value

of

these

securities

was

$10,590,205,

representing

36.1%

of

net

assets.

b

The

maturity

date

shown

represents

the

mandatory

put

date.

c

The

rate

shown

represents

the

yield

at

period

end.

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

4

regarding

fair

value

measurements.

e

Security

purchased

on

a

when-issued

basis.

f

Variable

rate

demand

notes

(VRDN)

are

obligations

which

contain

a

floating

or

variable

interest

rate

adjustment

formula

and

an

unconditional

right

of

demand

to

receive

pay-

ment

of

the

principal

balance

plus

accrued

interest

at

specified

dates.

Unless

otherwise

noted,

the

coupon

rate

is

determined

based

on

factors

including

supply

and

demand,

underlying

credit,

tax

treatment,

and

current

short

term

rates.

The

coupon

rate

shown

represents

the

rate

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2025

Franklin

Templeton

SMACS:

Series

E

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

5

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

40.0%

Aerospace

&

Defense

2.3%

a

Boeing

Co.

(The)

...................................

United

States

15,000

$

3,109,800

Northrop

Grumman

Corp.

.............................

United

States

10,000

4,847,700

7,957,500

Banks

2.6%

Fifth

Third

Bancorp

..................................

United

States

135,000

5,155,650

Truist

Financial

Corp.

................................

United

States

45,000

1,777,500

US

Bancorp

.......................................

United

States

50,000

2,179,500

9,112,650

Beverages

1.7%

PepsiCo,

Inc.

......................................

United

States

45,000

5,915,250

Biotechnology

1.1%

AbbVie,

Inc.

.......................................

United

States

20,000

3,722,200

Capital

Markets

0.7%

BlackRock,

Inc.

.....................................

United

States

2,500

2,449,725

Consumer

Staples

Distribution

&

Retail

0.9%

Target

Corp.

.......................................

United

States

32,900

3,092,929

Electric

Utilities

1.3%

NextEra

Energy,

Inc.

.................................

United

States

25,002

1,766,141

Xcel

Energy,

Inc.

....................................

United

States

40,000

2,804,000

4,570,141

Energy

Equipment

&

Services

2.8%

Schlumberger

NV

...................................

United

States

300,000

9,915,000

Food

Products

1.9%

Nestle

SA

,

ADR

....................................

United

States

63,000

6,710,130

Health

Care

Equipment

&

Supplies

2.3%

Abbott

Laboratories

..................................

United

States

20,000

2,671,600

Medtronic

plc

......................................

United

States

65,000

5,393,700

8,065,300

Health

Care

Providers

&

Services

0.9%

UnitedHealth

Group,

Inc.

..............................

United

States

10,000

3,019,100

Hotels,

Restaurants

&

Leisure

1.8%

McDonald's

Corp.

...................................

United

States

20,000

6,277,000

Interactive

Media

&

Services

1.0%

Alphabet,

Inc.

,

A

....................................

United

States

20,000

3,434,800

Machinery

0.6%

Caterpillar,

Inc.

.....................................

United

States

6,000

2,088,180

Metals

&

Mining

2.0%

Newmont

Corp.

.....................................

United

States

35,000

1,845,200

Rio

Tinto

plc

,

ADR

...................................

Australia

85,000

5,051,550

6,896,750

Oil,

Gas

&

Consumable

Fuels

5.0%

Exxon

Mobil

Corp.

...................................

United

States

29,003

2,967,007

Shell

plc

..........................................

United

States

170,000

5,609,138

TotalEnergies

SE

,

ADR

...............................

France

150,000

8,802,000

17,378,145

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

6

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Pharmaceuticals

3.9%

AstraZeneca

plc

,

ADR

................................

United

Kingdom

45,000

$

3,277,350

Bristol-Myers

Squibb

Co.

..............................

United

States

36,987

1,785,732

Merck

&

Co.,

Inc.

...................................

United

States

80,000

6,147,200

Pfizer,

Inc.

.........................................

United

States

100,000

2,349,000

13,559,282

Semiconductors

&

Semiconductor

Equipment

2.3%

Analog

Devices,

Inc.

.................................

United

States

15,000

3,209,700

Broadcom,

Inc.

.....................................

United

States

20,000

4,841,400

8,051,100

Software

0.8%

Salesforce,

Inc.

.....................................

United

States

10,000

2,653,700

Tobacco

4.1%

Philip

Morris

International,

Inc.

.........................

United

States

80,000

14,447,200

Total

Common

Stocks

(Cost

$

128,449,342

)

...................................

139,316,082

Equity-Linked

Securities

51.6%

Aerospace

&

Defense

2.5%

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Boeing

Co.

(The)

,

144A,

8.5

%

,

12/08/25

...............................

United

States

24,452

4,215,425

b

Goldman

Sachs

Bank

USA

into

RTX

Corp.

,

144A,

7.5

%

,

3/31/26

United

States

25,000

3,311,927

b

Wells

Fargo

Bank

NA

into

Boeing

Co.

(The)

,

144A,

9

%

,

6/17/25

United

States

6,300

1,253,516

8,780,868

Banks

2.5%

b

JPMorgan

Chase

Bank

NA

into

Truist

Financial

Corp.

,

144A,

9.5

%

,

3/02/26

....................................

United

States

12,000

480,581

b

Mizuho

Markets

Cayman

LP

into

US

Bancorp

,

144A,

9

%

,

2/25/26

United

States

65,000

2,880,461

b

Royal

Bank

of

Canada

into

Citigroup,

Inc.

,

144A,

8.5

%

,

8/27/25

.

United

States

13,000

871,619

b

Royal

Bank

of

Canada

into

Truist

Financial

Corp.

,

144A,

8.5

%

,

8/04/25

.........................................

United

States

24,000

960,048

b

UBS

AG

into

Bank

of

America

Corp.

,

144A,

8

%

,

1/28/26

......

United

States

78,000

3,478,168

8,670,877

Biotechnology

0.8%

b

Mizuho

Markets

Cayman

LP

into

Amgen,

Inc.

,

144A,

10

%

,

6/15/26

.........................................

United

States

10,400

2,946,207

Broadline

Retail

2.1%

b

Barclays

Bank

plc

into

Amazon.com,

Inc.

,

144A,

10

%

,

3/25/26

..

United

States

12,500

2,550,647

b

Toronto-Dominion

Bank

(The)

into

Amazon.com,

Inc.

,

144A,

10

%

,

3/31/26

.........................................

United

States

22,800

4,627,718

7,178,365

Capital

Markets

0.3%

b

Merrill

Lynch

BV

into

Morgan

Stanley

,

144A,

9

%

,

7/14/25

.....

United

States

10,000

1,076,234

Communications

Equipment

1.2%

b

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.

,

144A,

7.5

%

,

3/18/26

.........................................

United

States

30,000

1,903,669

b

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.

,

144A,

8

%

,

9/17/25

.........................................

United

States

15,000

812,546

b

UBS

AG

into

Cisco

Systems,

Inc.

,

144A,

8

%

,

6/10/25

........

United

States

30,000

1,602,229

4,318,444

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

7

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Equity-Linked

Securities

(continued)

Consumer

Staples

Distribution

&

Retail

0.2%

b

UBS

AG

into

Target

Corp.

,

144A,

10

%

,

9/15/25

.............

United

States

7,300

$

698,926

Containers

&

Packaging

0.4%

b

BNP

Paribas

SA

into

International

Paper

Co.

,

144A,

9

%

,

10/20/25

United

States

26,000

1,232,172

Energy

Equipment

&

Services

1.3%

b

Barclays

Bank

plc

into

Halliburton

Co.

,

144A,

10

%

,

5/21/26

....

United

States

186,567

3,659,054

b

Wells

Fargo

Bank

NA

into

Schlumberger

NV

,

144A,

10

%

,

11/26/25

........................................

United

States

25,000

857,559

4,516,613

Health

Care

Equipment

&

Supplies

0.2%

b

Toronto-Dominion

Bank

(The)

into

Medtronic

plc

,

144A,

8

%

,

4/13/26

.........................................

United

States

8,000

681,912

Health

Care

Providers

&

Services

1.4%

b

Citigroup

Global

Markets

Holdings,

Inc.

into

UnitedHealth

Group,

Inc.

,

144A,

9

%

,

1/27/26

.............................

United

States

1,780

579,063

b

JPMorgan

Chase

Bank

NA

into

CVS

Health

Corp.

,

144A,

9

%

,

11/25/25

........................................

United

States

30,000

1,867,622

b

Wells

Fargo

Bank

NA

into

CVS

Health

Corp.

,

144A,

10

%

,

4/09/26

United

States

33,000

2,158,607

b

Wells

Fargo

Bank

NA

into

UnitedHealth

Group,

Inc.

,

144A,

7

%

,

7/14/25

.........................................

United

States

1,300

395,104

5,000,396

Hotels,

Restaurants

&

Leisure

1.2%

b

Toronto-Dominion

Bank

(The)

into

Starbucks

Corp.

,

144A,

9

%

,

1/12/26

.........................................

United

States

50,000

4,329,919

Interactive

Media

&

Services

3.6%

b

Barclays

Bank

plc

into

Alphabet,

Inc.

,

144A,

8.5

%

,

4/23/26

....

United

States

4,850

795,824

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Alphabet,

Inc.

,

144A,

8.5

%

,

8/20/25

....................................

United

States

14,000

2,394,965

b

UBS

AG

into

Alphabet,

Inc.

,

144A,

9

%

,

4/16/26

.............

United

States

20,000

3,246,211

b

Wells

Fargo

Bank

NA

into

Alphabet,

Inc.

,

144A,

9

%

,

3/31/26

...

United

States

36,000

6,109,447

12,546,447

IT

Services

1.0%

b

Barclays

Bank

plc

into

International

Business

Machines

Corp.

,

144A,

8.5

%

,

6/09/25

...............................

United

States

9,500

1,838,702

b

UBS

AG

into

International

Business

Machines

Corp.

,

144A,

8

%

,

8/27/25

.........................................

United

States

8,000

1,712,238

3,550,940

Machinery

1.5%

b

Toronto-Dominion

Bank

(The)

into

Caterpillar,

Inc.

,

144A,

7.5

%

,

2/25/26

.........................................

United

States

15,000

5,237,900

Media

0.7%

b

JPMorgan

Chase

Bank

NA

into

Comcast

Corp.

,

144A,

8.5

%

,

9/02/25

.........................................

United

States

70,000

2,447,997

Metals

&

Mining

5.9%

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Freeport-McMoRan,

Inc.

,

144A,

12

%

,

6/09/26

............................

United

States

149,300

5,788,118

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Newmont

Corp.

,

144A,

9.5

%

,

2/18/26

...............................

United

States

19,000

884,904

b

J.P.

Morgan

Structured

Products

BV

into

Freeport-McMoRan,

Inc.

,

144A,

10

%

,

5/19/26

............................

United

States

107,000

4,075,166

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

8

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Equity-Linked

Securities

(continued)

Metals

&

Mining

(continued)

b

Merrill

Lynch

BV

into

Freeport-McMoRan,

Inc.

,

144A,

10

%

,

5/12/26

.........................................

United

States

22,869

$

866,238

b

Mizuho

Markets

Cayman

LP

into

Barrick

Gold

Corp.

,

144A,

9

%

,

7/01/25

.........................................

Canada

55,000

1,034,261

b

Mizuho

Markets

Cayman

LP

into

Barrick

Gold

Corp.

,

144A,

10

%

,

8/21/25

.........................................

Canada

50,000

963,603

b

Mizuho

Markets

Cayman

LP

into

Freeport-McMoRan,

Inc.

,

144A,

10

%

,

12/24/25

....................................

United

States

20,000

783,431

b

Morgan

Stanley

Finance

LLC

into

Freeport-McMoRan,

Inc.

,

144A,

10

%

,

11/18/26

....................................

United

States

142,593

5,446,416

b

Royal

Bank

of

Canada

into

Freeport-McMoRan,

Inc.

,

144A,

10

%

,

7/08/25

.........................................

United

States

13,700

529,558

20,371,695

Oil,

Gas

&

Consumable

Fuels

0.7%

b

JPMorgan

Chase

Bank

NA

into

Exxon

Mobil

Corp.

,

144A,

8.5

%

,

11/03/25

........................................

United

States

2,500

260,068

b

Mizuho

Markets

Cayman

LP

into

Exxon

Mobil

Corp.

,

144A,

8.5

%

,

4/07/26

.........................................

United

States

20,000

2,108,577

2,368,645

Semiconductors

&

Semiconductor

Equipment

14.8%

b

BNP

Paribas

Issuance

BV

into

Advanced

Micro

Devices,

Inc.

,

144A,

10

%

,

3/02/26

................................

United

States

27,000

2,993,676

b

BNP

Paribas

Issuance

BV

into

Applied

Materials,

Inc.

,

144A,

10

%

,

12/10/25

....................................

United

States

26,000

4,187,846

b

BNP

Paribas

Issuance

BV

into

Microchip

Technology,

Inc.

,

144A,

11

%

,

5/18/26

.....................................

United

States

153,820

8,460,541

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Analog

Devices,

Inc.

,

144A,

9

%

,

7/08/25

.................................

United

States

6,200

1,332,454

b

Citigroup

Global

Markets

Holdings,

Inc.

into

Intel

Corp.

,

144A,

10

%

,

3/03/26

.....................................

United

States

19,000

401,273

b

Goldman

Sachs

Bank

USA

into

Applied

Materials,

Inc.

,

144A,

10

%

,

5/05/26

.....................................

United

States

29,000

4,295,549

b

Goldman

Sachs

International

Bank

into

Texas

Instruments,

Inc.

,

144A,

9

%

,

11/10/25

................................

United

States

8,000

1,351,438

b

J.P.

Morgan

Structured

Products

BV

into

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

,

144A,

10

%

,

4/15/26

..............

Taiwan

15,000

2,808,912

b

JPMorgan

Chase

Bank

NA

into

Analog

Devices,

Inc.

,

144A,

9

%

,

2/19/26

.........................................

United

States

13,000

2,728,847

b

Merrill

Lynch

BV

into

Advanced

Micro

Devices,

Inc.

,

144A,

11

%

,

5/06/26

.........................................

United

States

53,614

5,303,765

b

Mizuho

Markets

Cayman

LP

into

Analog

Devices,

Inc.

,

144A,

8.5

%

,

5/18/26

....................................

United

States

13,000

2,666,453

b

Mizuho

Markets

Cayman

LP

into

Intel

Corp.

,

144A,

10

%

,

12/08/25

United

States

125,200

2,550,611

b

Royal

Bank

of

Canada

into

Microchip

Technology,

Inc.

,

144A,

11

%

,

5/05/26

.....................................

United

States

62,000

3,152,359

b

Royal

Bank

of

Canada

into

Texas

Instruments,

Inc.

,

144A,

8

%

,

6/11/25

.........................................

United

States

8,000

1,466,303

b

UBS

AG

into

Intel

Corp.

,

144A,

10

%

,

7/29/25

...............

United

States

32,000

632,067

b

UBS

AG

into

Marvell

Technology,

Inc.

,

144A,

12

%

,

5/14/26

....

United

States

67,000

3,997,810

b

Wells

Fargo

Bank

NA

into

Broadcom,

Inc.

,

144A,

9.5

%

,

8/20/25

.

United

States

10,000

1,932,332

b

Wells

Fargo

Bank

NA

into

QUALCOMM,

Inc.

,

144A,

10

%

,

10/22/25

........................................

United

States

7,500

1,115,097

51,377,333

Software

4.2%

b

Barclays

Bank

plc

into

Salesforce,

Inc.

,

144A,

10

%

,

4/01/26

...

United

States

10,000

2,718,605

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

9

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Equity-Linked

Securities

(continued)

Software

(continued)

b

Merrill

Lynch

BV

into

Microsoft

Corp

,

144A,

7.5

%

,

10/06/25

....

United

States

5,000

$

2,234,480

b

Merrill

Lynch

BV

into

Microsoft

Corp.

,

144A,

6

%

,

2/13/26

......

United

States

2,500

1,110,336

b

Royal

Bank

of

Canada

into

Oracle

Corp.

,

144A,

10

%

,

5/13/26

..

United

States

31,000

4,708,856

b

UBS

AG

into

Oracle

Corp.

,

144A,

9

%

,

6/10/25

..............

United

States

5,800

807,083

b

Wells

Fargo

Bank

NA

into

Salesforce,

Inc.

,

144A,

9

%

,

6/15/26

..

United

States

12,000

3,159,480

14,738,840

Specialty

Retail

2.3%

b

Barclays

Bank

plc

into

Home

Depot,

Inc.

(The)

,

144A,

7

%

,

2/25/26

.........................................

United

States

7,000

2,644,727

b

Goldman

Sachs

Bank

USA

into

Home

Depot,

Inc.

(The)

,

144A,

8

%

,

5/18/27

......................................

United

States

10,000

3,684,318

b

J.P.

Morgan

Structured

Products

BV

into

Home

Depot,

Inc.

(The)

,

144A,

8

%

,

10/15/25

................................

United

States

4,100

1,504,663

7,833,708

Technology

Hardware,

Storage

&

Peripherals

1.1%

b

Barclays

Bank

plc

into

Dell

Technologies

Inc

,

144A,

12

%

,

9/03/25

United

States

18,000

2,027,808

b

Merrill

Lynch

BV

into

Dell

Technologies,

Inc.

,

144A,

12

%

,

3/09/26

United

States

7,000

799,966

b

Mizuho

Markets

Cayman

LP

into

Hewlett

Packard

Enterprise

Co.

,

144A,

9.5

%

,

9/30/25

...............................

United

States

64,000

1,083,340

3,911,114

Textiles,

Apparel

&

Luxury

Goods

1.7%

b

Goldman

Sachs

International

Bank

into

NIKE,

Inc.

,

144A,

9

%

,

3/31/26

.........................................

United

States

50,000

3,191,539

b

Royal

Bank

of

Canada

into

NIKE,

Inc.

,

144A,

10

%

,

12/24/25

...

United

States

43,000

2,719,514

5,911,053

Total

Equity-Linked

Securities

(Cost

$

178,733,600

)

............................

179,726,605

Convertible

Preferred

Stocks

8.6%

Aerospace

&

Defense

4.5%

Boeing

Co.

(The)

,

6

%

................................

United

States

235,000

15,820,200

Chemicals

1.9%

Albemarle

Corp.

,

7.25

%

..............................

United

States

225,000

6,527,250

Electric

Utilities

2.2%

NextEra

Energy,

Inc.

,

7.299

%

..........................

United

States

160,000

7,611,200

Total

Convertible

Preferred

Stocks

(Cost

$

27,979,306

)

.........................

29,958,650

Total

Long

Term

Investments

(Cost

$

335,162,248

)

.............................

349,001,337

a

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

10

See

Abbreviations

on

page

30

.

Short

Term

Investments

0.2%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.2%

c,d

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

4.079

%

..

United

States

669,923

$

669,923

Total

Money

Market

Funds

(Cost

$

669,923

)

...................................

669,923

Total

Short

Term

Investments

(Cost

$

669,923

)

................................

669,923

a

Total

Investments

(Cost

$

335,832,171

)

100.4

%

................................

$349,671,260

Other

Assets,

less

Liabilities

(

0.4

)

%

.........................................

(1,256,474)

Net

Assets

100.0%

.........................................................

$348,414,786

a

a

a

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

May

31,

2025,

the

aggregate

value

of

these

securities

was

$179,726,605,

representing

51.6%

of

net

assets.

c

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

d

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2025

Franklin

Templeton

SMACS:

Series

H

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

11

a

a

Shares

a

Value

a

Management

Investment

Companies

1.6%

Capital

Markets

1.6%

a

Franklin

Dynamic

Municipal

Bond

ETF

...................................

17,000

$

410,720

Total

Management

Investment

Companies

(Cost

$

403,766

)

.......................

410,720

Principal

Amount

a

a

a

a

Corporate

Bonds

0.9%

Diversified

Consumer

Services

0.9%

Grand

Canyon

University

,

Secured

Note

,

5.125

%

,

10/01/28

....................

$

250,000

236,950

Total

Corporate

Bonds

(Cost

$

231,628

)

........................................

236,950

Municipal

Bonds

85.4%

Alabama

2.8%

Homewood

Educational

Building

Authority

,

CHF

-

Horizons

II

LLC

,

Revenue

,

2024

C

,

5

%

,

10/01/56

.....................................................

300,000

280,509

MidCity

Improvement

District

,

Assessment

Area

,

Special

Assessment

,

2022

,

4.5

%

,

11/01/42

................

150,000

126,657

Assessment

Area

,

Special

Assessment

,

2022

,

4.75

%

,

11/01/49

...............

100,000

82,686

Mobile

County

Industrial

Development

Authority

,

AM/NS

Calvert

LLC

,

Revenue

,

2024

B

,

4.75

%

,

12/01/54

................................................

260,000

234,927

724,779

Arizona

3.8%

b

Maricopa

County

Industrial

Development

Authority

,

Grand

Canyon

University

Obligated

Group

,

Revenue

,

144A,

2024

,

7.375

%

,

10/01/29

..........................

405,000

415,034

b

Sierra

Vista

Industrial

Development

Authority

,

American

Leadership

Academy,

Inc.

,

Revenue

,

144A,

2023

,

5.75

%

,

6/15/58

......

150,000

149,921

c

Georgetown

Community

Development

Authority

,

Revenue

,

144A,

2021

A

,

0.522

%,

10/01/56

.......................................................

250,000

194,517

Tempe

Industrial

Development

Authority

,

Tempe

Life

Care

Village

Obligated

Group

,

Revenue

,

2019

,

5

%

,

12/01/50

........................................

250,000

223,300

982,772

Arkansas

0.6%

Arkansas

Development

Finance

Authority

,

United

States

Steel

Corp.

,

Revenue

,

2023

,

5.7

%

,

5/01/53

....................................................

150,000

151,719

California

6.4%

d

California

Community

Choice

Financing

Authority

,

Revenue

,

2023

C

,

Mandatory

Put

,

5.25

%

,

10/01/31

...................................................

130,000

134,644

b

California

Community

Housing

Agency

,

Arbors

Apartments

,

Revenue

,

144A,

2020

A

,

5

%

,

8/01/50

....................

125,000

115,632

Aster

Apartments

,

Revenue,

Junior

Lien

,

144A,

2021

A-2

,

4

%

,

2/01/43

..........

230,000

199,625

Fountains

at

Emerald

Park

,

Revenue,

Junior

Lien

,

144A,

2021

A-2

,

4

%

,

8/01/46

...

195,000

155,839

Verdant

at

Green

Valley

Apartments

,

Revenue

,

144A,

2019

A

,

5

%

,

8/01/49

.......

105,000

93,406

b,d

California

Infrastructure

&

Economic

Development

Bank

,

Desertxpress

Enterprises

LLC

,

Revenue

,

144A,

2025

A

,

Refunding

,

Mandatory

Put

,

9.5

%

,

1/01/35

........

215,000

208,393

b,c

California

Municipal

Finance

Authority

,

IH

Parkside

Fairfield

LLC

,

Revenue

,

144A,

2023

B

,

2.614

%,

9/01/43

................................................

150,000

106,154

b

CMFA

Special

Finance

Agency

,

Solana

at

Grand

,

Revenue,

Junior

Lien

,

144A,

2021

A-2

,

4

%

,

8/01/45

..................................................

100,000

84,736

b

CMFA

Special

Finance

Agency

VII

,

Breakwater

Apartments

(The)

,

Revenue

,

144A,

2021

A-2

,

4

%

,

8/01/47

..............................................

200,000

164,265

b

CMFA

Special

Finance

Agency

VIII

,

Elan

Huntington

Beach

,

Revenue,

Junior

Lien

,

144A,

2021

A-2

,

4

%

,

8/01/47

.........................................

125,000

101,966

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

12

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

b

CMFA

Special

Finance

Agency

XII

,

Allure

Apartments

,

Revenue

,

144A,

2022

A-2

,

4.375

%

,

8/01/49

...................................................

$

100,000

$

79,731

b

CSCDA

Community

Improvement

Authority

,

Renaissance

at

City

Center

,

Revenue

,

144A,

2020

A

,

5

%

,

7/01/51

.............

110,000

99,648

Waterscape

Apartments

,

Revenue

,

144A,

2021

B

,

4

%

,

9/01/46

................

135,000

107,503

1,651,542

Colorado

2.0%

Colorado

Health

Facilities

Authority

,

BSLC

II

Obligated

Group

,

Revenue,

Second

Tier

,

2025

,

5.25

%

,

9/15/45

.........

195,000

189,976

Christian

Living

Neighborhoods

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

4

%

,

1/01/38

........................................................

100,000

90,432

Denver

Health

&

Hospital

Authority

,

Revenue

,

2019

A

,

Refunding

,

4

%

,

12/01/39

....

250,000

229,172

509,580

Connecticut

0.4%

Stamford

Housing

Authority

,

TJH

Senior

Living

LLC

Obligated

Group

,

Revenue

,

2025

A

,

Refunding

,

6.5

%

,

10/01/55

.........................................

100,000

98,512

Florida

23.8%

Avenir

Community

Development

District

,

Parcel

A-18

,

Special

Assessment

,

2024

A

,

6

%

,

5/01/55

......................................................

100,000

96,858

b

Babcock

Ranch

Community

Independent

Special

District

,

Assessment

Area

,

Special

Assessment

,

144A,

2024

,

5.25

%

,

5/01/55

...............................

150,000

141,327

b

Capital

Projects

Finance

Authority

,

PRG

-

UnionWest

Properties

LLC

,

Revenue,

Senior

Lien

,

144A,

2024

A-1

,

5

%

,

6/01/58

.....................................

250,000

234,611

Chaparral

Palm

Bay

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

2024

,

5.5

%

,

5/01/55

.....................................

100,000

94,372

Cypress

Bluff

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2025

,

5.55

%

,

5/01/55

....................................

100,000

94,802

Epperson

North

Community

Development

District

,

Assessment

Area

4

,

Special

Assessment

,

2024

,

5.6

%

,

5/01/55

.....................................

110,000

103,875

b

Florida

Development

Finance

Corp.

,

d

AAF

Operations

Holdings

LLC

,

Revenue

,

144A,

2024

,

Refunding

,

Mandatory

Put

,

12

%

,

7/15/28

...................................................

100,000

103,838

Mayflower

Retirement

Center,

Inc.

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

4

%

,

6/01/55

............................................

100,000

68,331

Fox

Branch

Ranch

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2025

,

5.4

%

,

5/01/55

.....................................

100,000

93,773

b

Gas

Worx

Community

Development

District

,

Special

Assessment

,

144A,

2025

,

6

%

,

5/01/57

.........................................................

150,000

147,822

GIR

East

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2025

,

5.5

%

,

5/01/55

................................................

100,000

92,659

Hammock

Oaks

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

2024

,

5.85

%

,

5/01/44

....................................

125,000

122,545

b

Hillcrest

Preserve

Community

Development

District

,

Special

Assessment

,

144A,

2024

,

5.3

%

,

5/01/54

....................................................

180,000

164,601

Kindred

Community

Development

District

II

,

Special

Assessment

,

2021

,

3.125

%

,

5/01/41

.........................................................

100,000

81,296

Kings

Creek

I

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2025

,

6

%

,

5/01/55

.......................................

100,000

98,457

b

Knightsbridge

Community

Development

District

,

Special

Assessment

,

144A,

2024

,

5.5

%

,

6/15/54

....................................................

135,000

132,262

Lakeside

Preserve

Community

Development

District

,

Special

Assessment

,

2023

,

6.375

%

,

5/01/54

...................................................

100,000

102,545

Langley

South

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2024

,

5.4

%

,

5/01/55

.....................................

100,000

94,042

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

13

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Florida

(continued)

Lee

County

Industrial

Development

Authority

,

Shell

Point

Obligated

Group

,

Revenue

,

2024

C

,

5

%

,

11/15/54

...............................................

$

270,000

$

252,748

Marion

Ranch

Community

Development

District

,

Special

Assessment

,

2024

,

5.7

%

,

5/01/44

.........................................................

100,000

97,790

North

AR-1

Pasco

Community

Development

District

,

Assessment

Area

3

,

Special

Assessment

,

2023

,

6

%

,

5/01/54

.......................................

70,000

70,209

North

Loop

Community

Development

District

,

Special

Assessment

,

2023

,

6.625

%

,

5/01/54

.........................................................

130,000

136,075

Pacific

Ace

Community

Development

District

,

Special

Assessment

,

2024

,

5.5

%

,

5/01/55

.........................................................

125,000

119,825

Palermo

Community

Development

District

,

Special

Assessment

,

2023

,

5

%

,

6/15/43

.................................

100,000

97,487

Assessment

Area

2

,

Special

Assessment

,

2025

,

5.5

%

,

6/15/55

................

100,000

97,230

Palm

Coast

Park

Community

Development

District

,

Special

Assessment

,

2023

,

5.6

%

,

5/01/53

.........................................................

100,000

97,794

Parker

Pointe

Community

Development

District

,

Special

Assessment

,

2024

,

5.5

%

,

5/01/44

.........................................................

100,000

96,745

Parrish

Lakes

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

2023

A

,

5.625

%

,

5/01/53

..................................

90,000

87,958

Pasadena

Ridge

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2024

,

5.375

%

,

5/01/55

...................................

105,000

97,396

Preserve

at

Savannah

Lakes

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2024

,

5.45

%

,

5/01/44

..............................

140,000

137,644

Prosperity

Lakes

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2023

,

6.125

%

,

12/15/53

...................................

160,000

166,661

Quail

Roost

Community

Development

District

,

Expansion

Area

,

Special

Assessment

,

2021

,

4

%

,

12/15/51

................................................

70,000

56,833

Reflection

Bay

Community

Development

District

,

Special

Assessment

,

2025

,

5.875

%

,

5/01/55

.........................................................

160,000

156,736

Regal

Village

Community

Development

District

,

Special

Assessment

,

2024

,

5.5

%

,

5/01/54

.........................................................

145,000

138,514

Ridge

at

Apopka

Community

Development

District

,

Parcel

2

,

Special

Assessment

,

2023

,

5.75

%

,

5/01/53

...............................................

100,000

100,250

River

Hall

Community

Development

District

,

Assessment

Area

4

,

Special

Assessment

,

2023

A

,

6.5

%

,

5/01/54

..............................................

105,000

108,641

River

Landing

Community

Development

District

,

Assessments

,

Special

Assessment

,

2025

,

5.45

%

,

5/01/55

...............................................

100,000

94,342

b,e

Saltmeadows

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

144A,

2025

,

6

%

,

5/01/55

..................................

150,000

150,189

Savanna

Lakes

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

2024

,

5.5

%

,

6/15/54

.....................................

135,000

128,566

Sawgrass

Village

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2023

,

5.75

%

,

5/01/53

...............

100,000

98,229

Assessment

Area

2

,

Special

Assessment

,

2023

,

6.375

%

,

11/01/53

.............

155,000

158,732

b

Seaton

Creek

Reserve

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

144A,

2023

,

5.5

%

,

6/15/53

................................

100,000

99,138

Seminole

Palms

Community

Development

District

,

Special

Assessment

,

2023

,

5.5

%

,

5/01/43

.........................................................

95,000

95,134

Springs

at

Lake

Alfred

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2024

,

5.6

%

,

5/01/54

.....................................

145,000

138,389

Stonegate

Preserve

Community

Development

District

,

Special

Assessment

,

2023

,

6.125

%

,

12/15/53

.............................

150,000

156,452

e

Special

Assessment

,

2025

,

5.875

%

,

6/15/55

.............................

125,000

123,806

Twisted

Oaks

Pointe

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

2023

,

5.375

%

,

5/01/43

..............

100,000

98,280

Assessment

Area

2

,

Special

Assessment

,

2023

,

6.125

%

,

5/01/54

..............

75,000

75,856

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

14

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Florida

(continued)

V-Dana

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

2025

,

5.55

%

,

5/01/55

...............................................

$

100,000

$

94,936

b

Wellness

Ridge

Community

Development

District

,

Assessment

Area

2

,

Special

Assessment

,

144A,

2024

,

5.2

%

,

6/15/55

................................

100,000

91,730

Westwood

of

Pasco

Community

Development

District

,

Assessments

,

Special

Assessment

,

2023

,

5.625

%

,

5/01/53

...................................

130,000

129,188

Winding

Oaks

Community

Development

District

,

Special

Assessment

,

2024

,

5.7

%

,

5/01/55

.........................................................

100,000

94,753

b

Woodland

Preserve

Community

Development

District

,

Assessment

Area

1

,

Special

Assessment

,

144A,

2025

,

5.5

%

,

5/01/55

................................

100,000

94,372

6,106,644

Illinois

2.8%

Illinois

Finance

Authority

,

Westminster

Village,

Inc.

Obligated

Group

,

Revenue

,

2018

A

,

Refunding

,

5

%

,

5/01/48

.............................................

100,000

83,609

Illinois

Housing

Development

Authority

,

Revenue

,

2024

I

,

Refunding

,

GNMA

Insured

,

4.625

%

,

4/01/50

...................................................

250,000

240,606

State

of

Illinois

,

GO

,

2020

C

,

4.25

%

,

10/01/45

........................................

100,000

88,227

GO

,

2021

A

,

4

%

,

3/01/41

............................................

360,000

322,895

735,337

Indiana

0.8%

b

City

of

Goshen

,

Green

Oaks

of

Goshen

LLC

,

Revenue

,

144A,

2021

A

,

5

%

,

8/01/41

..

100,000

82,242

Indianapolis

Local

Public

Improvement

Bond

Bank

,

Revenue,

Senior

Lien

,

2023

E

,

6.125

%

,

3/01/57

...................................................

110,000

114,184

196,426

Iowa

1.8%

Iowa

Finance

Authority

,

Iowa

Fertilizer

Co.

LLC

,

Revenue

,

2022

,

Pre-Refunded

,

5

%

,

12/01/50

..........

235,000

264,335

Lifespace

Communities,

Inc.

Obligated

Group

,

Revenue

,

2016

A

,

5

%

,

5/15/36

....

100,000

100,321

Iowa

Higher

Education

Loan

Authority

,

Revenue

,

2025

,

6

%

,

10/01/55

............

100,000

103,387

468,043

Louisiana

2.5%

Calcasieu

Parish

Memorial

Hospital

Service

District

,

Southwest

Louisiana

Healthcare

System

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

5

%

,

12/01/39

............

100,000

93,960

Lakeshore

Villages

Master

Community

Development

District

,

Special

Assessment

,

2025

,

6

%

,

6/01/54

.................................................

170,000

170,733

b

Louisiana

Local

Government

Environmental

Facilities

&

Community

Development

Authority

,

Parish

of

St.

Martin

,

Revenue

,

144A,

2019

,

4.4

%

,

11/01/44

...........

135,000

124,957

Louisiana

Public

Facilities

Authority

,

Calcasieu

Bridge

Partners

LLC

,

Revenue,

Senior

Lien

,

2024

,

5.75

%

,

9/01/64

...........................................

255,000

263,215

652,865

Maryland

1.3%

Maryland

Economic

Development

Corp.

,

Morgan

View

&

Thurgood

Marshall

Student

Housing

,

Revenue

,

2020

,

4.25

%

,

7/01/50

................................

170,000

146,230

b

Town

of

La

Plata

,

Heritage

Green

Special

Taxing

District

,

Special

Tax

,

144A,

2023

A

,

6.5

%

,

2/15/53

....................................................

190,000

184,821

331,051

Michigan

1.4%

City

of

Detroit

,

GO

,

2023

C

,

6

%

,

5/01/43

..................................

100,000

108,045

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

15

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Michigan

(continued)

Michigan

Finance

Authority

,

Provident

Group

-

HFH

Energy

LLC

,

Revenue

,

2024

,

4.375

%

,

2/28/54

...................................................

$

295,000

$

266,641

374,686

Minnesota

0.4%

City

of

Apple

Valley

,

PHS

Apple

Valley

Senior

Housing,

Inc.

,

Revenue

,

2021

,

4

%

,

9/01/36

.........................................................

105,000

97,188

Nevada

0.4%

Henderson

Local

Improvement

Districts

,

Local

Improvement

District

No.

T-22

,

Special

Assessment

,

2023

,

5.25

%

,

3/01/53

....................................

100,000

93,263

New

Hampshire

1.0%

New

Hampshire

Business

Finance

Authority

,

Presbyterian

Homes

Obligated

Group

,

Revenue

,

2023

A

,

5.25

%

,

7/01/48

.....................................

250,000

250,088

New

York

5.1%

New

York

City

Housing

Development

Corp.

,

8

Spruce

NY

Owner

LLC

,

Revenue

,

2024

,

F

,

Refunding

,

5.25

%

,

12/15/31

........................................

250,000

254,192

New

York

Transportation

Development

Corp.

,

Delta

Air

Lines,

Inc.

,

Revenue

,

2020

,

4

%

,

10/01/30

.........................

100,000

97,973

Delta

Air

Lines,

Inc.

,

Revenue

,

2020

,

4.375

%

,

10/01/45

.....................

460,000

407,930

JFK

International

Air

Terminal

LLC

,

Revenue

,

2022

,

5

%

,

12/01/41

.............

185,000

186,130

JFK

NTO

LLC

,

Revenue

,

2024

,

5.5

%

,

6/30/60

............................

250,000

250,417

b

Oneida

Indian

Nation

of

New

York

,

Revenue

,

144A,

2024

B

,

6

%

,

9/01/43

..........

100,000

105,366

1,302,008

Ohio

1.6%

Buckeye

Tobacco

Settlement

Financing

Authority

,

Revenue,

Senior

Lien

,

2020

B-2

,

2

,

Refunding

,

5

%

,

6/01/55

.............................................

200,000

173,318

Ohio

Housing

Finance

Agency

,

Revenue

,

2023

C

,

8

%

,

8/01/34

.................

100,000

101,615

Summit

County

Development

Finance

Authority

,

UAkronPark,

Inc.

,

Revenue

,

2023

,

6

%

,

12/01/58

........................................................

125,000

130,547

405,480

Oklahoma

0.6%

Tulsa

Municipal

Airport

Trust

Trustees

,

American

Airlines,

Inc.

,

Revenue

,

2025

,

Refunding

,

6.25

%

,

12/01/40

..........................................

135,000

145,112

Pennsylvania

1.9%

b

Allentown

Commercial

and

Industrial

Development

Authority

,

Executive

Education

Academy

Charter

School

,

Revenue

,

144A,

2024

,

Refunding

,

5

%

,

7/01/59

........

250,000

224,724

Berks

County

Municipal

Authority

(The)

,

Tower

Health

Obligated

Group

,

Revenue

,

2024

A-1

,

8

%

,

6/30/34

..............

18,000

18,111

Tower

Health

Obligated

Group

,

Revenue

,

2024

A-2

,

6

%

,

6/30/34

..............

8,000

8,421

Tower

Health

Obligated

Group

,

Revenue

,

2024

A-3

,

5

%

,

6/30/39

..............

120,000

111,181

c

Tower

Health

Obligated

Group

,

Revenue

,

2024

B-1

,

1.364

%,

6/30/44

...........

59,000

42,483

Philadelphia

Authority

for

Industrial

Development

,

St.

Joseph's

University

,

Revenue

,

2022

,

5.5

%

,

11/01/60

...............................................

90,000

92,120

497,040

South

Dakota

0.6%

South

Dakota

Housing

Development

Authority

,

Revenue

,

2024

C

,

Refunding

,

GNMA

Insured

,

4.5

%

,

11/01/44

.............................................

150,000

146,223

Texas

11.1%

b

Arlington

Higher

Education

Finance

Corp.

,

BASIS

Texas

Charter

Schools,

Inc.

,

Revenue

,

144A,

2024

,

4.875

%

,

6/15/59

.................................

100,000

88,842

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

16

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

(continued)

b

City

of

Anna

,

Woods

at

Lindsey

Place

(The)

Public

Improvement

District

Area

1

,

Special

Assessment

,

144A,

2023

,

5.875

%

,

9/15/53

.........................

$

116,000

$

116,964

b

City

of

Austin

,

Whisper

Valley

Public

Improvement

District

Improvement

Area

No.

2

,

Special

Assessment

,

144A,

2022

,

5.5

%

,

11/01/51

..........................

100,000

98,067

b

City

of

Celina

,

Lakes

at

Mustang

Ranch

Public

Improvement

District

Phases

8-9

,

Special

Assessment

,

144A,

2025

,

5.625

%

,

9/01/55

.............................

150,000

141,711

Pravin

Public

Improvement

District

,

Special

Assessment

,

144A,

2023

,

6.75

%

,

9/01/53

100,000

97,005

b

City

of

Fate

,

Williamsburg

Public

Improvement

District

No.

1

Phase

3B

,

Special

Assessment

,

144A,

2023

,

5.375

%

,

8/15/53

...............................

100,000

97,333

City

of

Houston

Airport

System

,

United

Airlines,

Inc.

,

Revenue

,

2024

B

,

5.5

%

,

7/15/39

350,000

358,548

b

City

of

Hutto

,

Emory

Crossing

Public

Improvement

District

Improvement

Area

No.

2

,

Special

Assessment

,

144A,

2023

,

5.625

%

,

9/01/58

.........................

115,000

112,811

b

City

of

Kyle

,

6

Creeks

Public

Improvement

District

Improvement

Area

No.

5

,

Special

Assessment

,

144A,

2025

,

5.375

%

,

9/01/50

.......................................

141,000

131,698

Southwest

Kyle

Public

Improvement

District

No.

1

Improvement

Area

No.

2

,

Special

Assessment

,

144A,

2023

,

6.75

%

,

9/01/48

..............................

100,000

102,285

b

City

of

Manor

,

EntradenGlen

Public

Improvement

District

Improvement

Area

No.

1

,

Special

Assessment

,

144A,

2025

,

7

%

,

9/15/55

............................

100,000

100,178

b

City

of

Princeton

,

Southbridge

Public

Improvement

District

Improvement

Area

No.

2

,

Special

Assessment

,

144A,

2024

,

5.5

%

,

9/01/54

..........................

132,000

127,795

b

City

of

Tomball

,

Raburn

Reserve

Public

Improvement

District

Area

No.

2

,

Special

Assessment

,

144A,

2023

,

5.75

%

,

9/15/52

...............................

112,000

108,953

b

County

of

Bastrop

,

Double

Eagle

Ranch

Public

Improvement

District

Improvement

Area

No.

2

,

Special

Assessment

,

144A,

2024

,

5.25

%

,

9/01/44

....................

105,000

100,528

b

County

of

Denton

,

Green

Meadows

Public

Improvement

District

Major

Improvement

Area

,

Special

Assessment

,

144A,

2025

,

6.125

%

,

12/31/55

............................

100,000

97,060

Tabor

Ranch

Public

Improvement

District

Improvement

Area

No.

1

,

Special

Assessment,

Senior

Lien

,

144A,

2024

A

,

5.625

%

,

12/31/54

.................

106,000

99,428

b

County

of

Hays

,

La

Cima

Public

Improvement

District

,

Special

Assessment

,

144A,

2020

,

3.25

%

,

9/15/30

...............................................

100,000

91,305

County

of

Montgomery

,

Crockett

Meadows

Public

Improvement

District

Improvement

Area

No.

1

,

Special

Assessment

,

2025

,

5.5

%

,

9/15/54

......................

123,000

115,268

EP

Cimarron

Ventanas

PFC

,

Revenue

,

2024

,

Refunding

,

4.125

%

,

12/01/39

........

250,000

233,521

Harris

County

Municipal

Utility

District

No.

540

,

GO

,

2022

,

5.5

%

,

9/01/49

..........

100,000

92,220

New

Hope

Cultural

Education

Facilities

Finance

Corp.

,

NCCD-College

Station

Properties

LLC

,

Revenue

,

A

,

5

%

,

7/01/47

..............

50,000

47,507

Quality

Senior

Housing

Foundation

of

East

Texas,

Inc.

,

Revenue

,

2019

A-1

,

5

%

,

12/01/39

.......................................................

85,000

81,328

Quality

Senior

Housing

Foundation

of

East

Texas,

Inc.

,

Revenue,

Second

Tier

,

2019

B

,

5.5

%

,

12/01/54

................................................

180,000

161,742

Walden

Pond

Fresh

Water

Supply

District

,

GO

,

2022

,

6.25

%

,

9/01/47

............

45,000

44,166

2,846,263

Washington

0.8%

Washington

State

Housing

Finance

Commission

,

Eastside

Retirement

Association

Obligated

Group

,

Revenue

,

2023

A

,

Refunding

,

5

%

,

7/01/48

........................................................

120,000

118,007

b

Presbyterian

Retirement

Communities

Northwest

Obligated

Group

,

Revenue

,

144A,

2019

A

,

5

%

,

1/01/55

..............................................

100,000

85,632

203,639

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

17

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Wisconsin

3.3%

Public

Finance

Authority

,

b

Foundation

Academy

Charter

School

A

NJ

Nonprofit

Corp.

,

Revenue

,

144A,

2024

,

5

%

,

7/01/60

....................................................

$

300,000

$

258,077

b

Friends

Homes

Obligated

Group

,

Revenue

,

144A,

2019

,

Refunding

,

5

%

,

9/01/49

..

125,000

112,486

KSU

Bixby

Real

Estate

Foundation

LLC

,

Revenue

,

2025

B

,

5.5

%

,

6/15/55

.......

100,000

99,802

RED

River

Valley

Alliance

LLC

,

Revenue

,

2021

,

4

%

,

9/30/51

.................

345,000

271,994

Wisconsin

Health

&

Educational

Facilities

Authority

,

PHW

Menomonee

Falls,

Inc.

,

Revenue

,

2024

,

6.125

%

,

10/01/59

.....................................

100,000

98,046

840,405

U.S.

Territories

8.2%

District

of

Columbia

0.9%

District

of

Columbia

,

International

School

Obligated

Group

,

Revenue

,

2019

,

5

%

,

7/01/49

............

140,000

133,673

Plenary

Infrastructure

DC

LLC

,

Revenue

,

2022

A

,

5.5

%

,

8/31/33

..............

100,000

110,515

244,188

Puerto

Rico

7.3%

Commonwealth

of

Puerto

Rico

,

GO

,

2022

A-1

,

4

%

,

7/01/41

..........................................

223,382

191,531

GO

,

2022

A-1

,

4

%

,

7/01/46

..........................................

515,826

424,260

GDB

Debt

Recovery

Authority

of

Puerto

Rico

,

7.5

%

,

8/20/40

...................

91,274

87,714

Puerto

Rico

Sales

Tax

Financing

Corp.

,

Sales

Tax

,

Revenue

,

A-1

,

5

%

,

7/01/58

.....

1,255,000

1,179,142

1,882,647

Total

U.S.

Territories

....................................................................

2,126,835

Total

Municipal

Bonds

(Cost

$

22,514,780

)

......................................

21,937,500

Total

Long

Term

Investments

(Cost

$

23,150,174

)

................................

22,585,170

a

a

a

a

a

Short

Term

Investments

7.0%

Municipal

Bonds

7.0%

California

1.9%

f

Los

Angeles

Department

of

Water

&

Power

,

Power

System

,

Revenue

,

2023

C-1

,

SPA

TD

Bank

NA

,

Daily

VRDN

and

Put

,

3.1

%

,

7/01/57

.........................

500,000

500,000

Colorado

1.2%

f

Colorado

Health

Facilities

Authority

,

Intermountain

Healthcare

Obligated

Group

,

Revenue

,

2024

D

,

Daily

VRDN

and

Put

,

3

%

,

5/15/64

.......................

300,000

300,000

New

York

3.5%

f

New

York

City

Municipal

Water

Finance

Authority

,

Water

&

Sewer

System

,

Revenue

,

2022

DD

,

Refunding

,

Daily

VRDN

and

Put

,

3

%

,

6/15/33

.....................

900,000

900,000

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

18

See

Abbreviations

on

page

30

.

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Municipal

Bonds

(continued)

Pennsylvania

0.4%

f

Delaware

County

Industrial

Development

Authority

,

United

Parcel

Service,

Inc.

,

Revenue

,

2015

,

Refunding

,

Daily

VRDN

and

Put

,

2.95

%

,

9/01/45

..............

$

100,000

$

100,000

Total

Municipal

Bonds

(Cost

$

1,800,000

)

.......................................

1,800,000

Total

Short

Term

Investments

(Cost

$

1,800,000

)

.................................

1,800,000

a

Total

Investments

(Cost

$

24,950,174

)

94.9

%

....................................

$24,385,170

Other

Assets,

less

Liabilities

5.1

%

.............................................

1,303,533

Net

Assets

100.0%

...........................................................

$25,688,703

a

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

May

31,

2025,

the

aggregate

value

of

these

securities

was

$6,594,859,

representing

25.7%

of

net

assets.

c

The

rate

shown

represents

the

yield

at

period

end.

d

The

maturity

date

shown

represents

the

mandatory

put

date.

e

Security

purchased

on

a

when-issued

basis.

f

Variable

rate

demand

notes

(VRDN)

are

obligations

which

contain

a

floating

or

variable

interest

rate

adjustment

formula

and

an

unconditional

right

of

demand

to

receive

pay-

ment

of

the

principal

balance

plus

accrued

interest

at

specified

dates.

Unless

otherwise

noted,

the

coupon

rate

is

determined

based

on

factors

including

supply

and

demand,

underlying

credit,

tax

treatment,

and

current

short

term

rates.

The

coupon

rate

shown

represents

the

rate

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2025

Franklin

Templeton

SMACS:

Series

I

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

19

a

a

Shares

a

Value

a

Common

Stocks

0.4%

Banks

0.4%

Bank

of

America

Corp.

...............................................

45,000

$

1,985,850

Pharmaceuticals

0.0%

†

a

Endo,

Inc.

.........................................................

4,647

97,587

a

Total

Common

Stocks

(Cost

$

1,322,760

)

.......................................

2,083,437

a

Equity-Linked

Securities

0.2%

Pharmaceuticals

0.2%

b

BNP

Paribas

SA

into

Pfizer,

Inc.

,

144A,

10.5

%

,

7/23/25

.......................

58,000

1,383,962

Total

Equity-Linked

Securities

(Cost

$

1,618,200

)

................................

1,383,962

Principal

Amount

a

a

a

a

Corporate

Bonds

77.6%

Aerospace

&

Defense

1.9%

b

Bombardier,

Inc.

,

Senior

Note

,

144A,

8.75

%

,

11/15/30

........................

$

1,500,000

1,611,837

b

TransDigm,

Inc.

,

Senior

Secured

Note

,

144A,

6.75

%

,

8/15/28

..............................

1,500,000

1,527,903

Senior

Secured

Note

,

144A,

6.875

%

,

12/15/30

............................

2,500,000

2,579,858

Senior

Secured

Note

,

144A,

6.625

%

,

3/01/32

.............................

4,500,000

4,602,397

10,321,995

Automobile

Components

0.6%

b

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

...........

4,000,000

3,079,304

Automobiles

0.7%

Ford

Motor

Co.

,

Senior

Bond

,

6.1

%

,

8/19/32

...............................

4,000,000

3,908,610

Banks

0.4%

Bank

of

America

Corp.

,

Sub.

Bond

,

5.425%

to

8/14/34,

FRN

thereafter

,

8/15/35

.....

50,000

49,010

Barclays

plc

,

c

Junior

Sub.

Bond

,

7.625%

to

9/14/35,

FRN

thereafter

,

Perpetual

...............

2,000,000

1,980,784

Sub.

Bond

,

7.119%

to

6/26/33,

FRN

thereafter

,

6/27/34

.....................

200,000

215,567

Fifth

Third

Bancorp

,

Senior

Note

,

6.339%

to

7/26/28,

FRN

thereafter

,

7/27/29

......

50,000

52,312

Wells

Fargo

&

Co.

,

Senior

Bond

,

6.491%

to

10/22/33,

FRN

thereafter

,

10/23/34

.....

100,000

107,289

2,404,962

Building

Products

1.1%

b

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....

800,000

708,708

b

EMRLD

Borrower

LP

/

Emerald

Co-Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

12/15/30

........................................................

2,000,000

2,022,727

b

Quikrete

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

6.375

%

,

3/01/32

............

3,000,000

3,050,646

5,782,081

Capital

Markets

0.4%

Charles

Schwab

Corp.

(The)

,

Senior

Note

,

5.643%

to

5/18/28,

FRN

thereafter

,

5/19/29

50,000

51,780

c

Goldman

Sachs

Group,

Inc.

(The)

,

Junior

Sub.

Bond

,

6.85%

to

2/09/30,

FRN

thereafter

,

Perpetual

........................................................

2,000,000

2,021,524

Morgan

Stanley

,

Senior

Bond

,

6.627%

to

10/31/33,

FRN

thereafter

,

11/01/34

..................

100,000

108,552

Sub.

Bond

,

5.948%

to

1/18/33,

FRN

thereafter

,

1/19/38

.....................

50,000

50,457

2,232,313

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

20

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

3.0%

Celanese

US

Holdings

LLC

,

Senior

Bond

,

6.629

%

,

7/15/32

........................................

$

2,000,000

$

2,048,300

Senior

Bond

,

7.2

%

,

11/15/33

.........................................

3,500,000

3,656,415

Senior

Note

,

7.05

%

,

11/15/30

.........................................

1,000,000

1,031,300

b

Rain

Carbon,

Inc.

,

Senior

Secured

Note

,

144A,

12.25

%

,

9/01/29

................

3,500,000

3,651,018

b

SCIH

Salt

Holdings,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

5/01/29

..................

6,000,000

5,891,820

16,278,853

Commercial

Services

&

Supplies

1.2%

b

Allied

Universal

Holdco

LLC

,

Senior

Secured

Note

,

144A,

7.875

%

,

2/15/31

........

4,000,000

4,148,156

b

RR

Donnelley

&

Sons

Co.

,

Senior

Secured

Note

,

144A,

9.5

%

,

8/01/29

...........

2,500,000

2,508,720

6,656,876

Communications

Equipment

3.9%

b

CommScope

LLC

,

Senior

Note

,

144A,

8.25

%

,

3/01/27

.....................................

11,000,000

10,980,839

Senior

Secured

Note

,

144A,

9.5

%

,

12/15/31

..............................

10,000,000

10,400,680

21,381,519

Consumer

Finance

0.6%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond

,

5.3

%

,

1/19/34

.........................................................

200,000

197,664

Ford

Motor

Credit

Co.

LLC

,

Senior

Note

,

7.35

%

,

3/06/30

......................

3,000,000

3,126,136

b

Macquarie

Airfinance

Holdings

Ltd.

,

Senior

Note

,

144A,

6.4

%

,

3/26/29

............

50,000

51,733

3,375,533

Containers

&

Packaging

5.3%

b

Ardagh

Metal

Packaging

Finance

USA

LLC

/

Ardagh

Metal

Packaging

Finance

plc

,

Senior

Note

,

144A,

4

%

,

9/01/29

.......................................

2,500,000

2,220,607

b

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

8/15/27

.....................................

8,900,000

4,057,644

Senior

Secured

Note

,

144A,

4.125

%

,

8/15/26

.............................

6,000,000

5,460,000

b

Clydesdale

Acquisition

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

6.75

%

,

4/15/32

..

2,500,000

2,528,320

b

Mauser

Packaging

Solutions

Holding

Co.

,

Secured

Note

,

144A,

9.25

%

,

4/15/27

...................................

9,000,000

8,873,372

Senior

Secured

Note

,

144A,

7.875

%

,

4/15/27

.............................

5,500,000

5,559,048

28,698,991

Diversified

REITs

0.0%

†

b

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Bond

,

144A,

4.625

%

,

12/01/29

.....

50,000

48,532

Diversified

Telecommunication

Services

3.0%

b

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

5.125

%

,

5/01/27

...................................

5,000,000

4,951,543

Senior

Note

,

144A,

6.375

%

,

9/01/29

....................................

11,000,000

11,156,068

16,107,611

Electric

Utilities

2.8%

b

NRG

Energy,

Inc.

,

Senior

Bond

,

144A,

6.25

%

,

11/01/34

...................................

3,000,000

3,003,477

Senior

Note

,

144A,

6

%

,

2/01/33

.......................................

3,000,000

2,974,970

Senior

Secured

Bond

,

144A,

7

%

,

3/15/33

................................

50,000

53,961

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

21

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

Pacific

Gas

and

Electric

Co.

,

Senior

Bond

,

6.4

%

,

6/15/33

.....................

$

50,000

$

51,471

PG&E

Corp.

,

Senior

Secured

Note

,

5

%

,

7/01/28

............................

50,000

48,816

Southern

Co.

(The)

,

2025

,

Junior

Sub.

Bond

,

6.375%

to

3/14/35,

FRN

thereafter

,

3/15/55

.........................................................

5,000,000

5,094,080

b

Vistra

Operations

Co.

LLC

,

Senior

Note

,

144A,

6.875

%

,

4/15/32

....................................

4,000,000

4,163,868

Senior

Secured

Bond

,

144A,

6.95

%

,

10/15/33

............................

50,000

53,924

15,444,567

Electrical

Equipment

0.0%

†

Regal

Rexnord

Corp.

,

Senior

Note

,

6.05

%

,

4/15/28

..........................

50,000

51,347

Energy

Equipment

&

Services

1.2%

b

Weatherford

International

Ltd.

,

Senior

Note

,

144A,

8.625

%

,

4/30/30

..............

6,500,000

6,607,536

Entertainment

0.0%

†

b

Netflix,

Inc.

,

Senior

Bond

,

144A,

5.375

%

,

11/15/29

..........................

100,000

103,661

Food

Products

0.5%

JBS

USA

Holding

Lux

SARL

/

JBS

USA

Food

Co.

/

JBS

Lux

Co.

SARL

,

Senior

Note

,

5.75

%

,

4/01/33

...................................................

50,000

50,678

b

Post

Holdings,

Inc.

,

Senior

Bond

,

144A,

5.5

%

,

12/15/29

....................................

500,000

494,332

Senior

Secured

Note

,

144A,

6.25

%

,

2/15/32

..............................

2,000,000

2,035,928

2,580,938

Ground

Transportation

0.4%

b

Ashtead

Capital,

Inc.

,

Senior

Bond

,

144A,

5.95

%

,

10/15/33

....................

200,000

202,194

b

,d

Herc

Holdings

Escrow,

Inc.

,

Senior

Note

,

144A,

7

%

,

6/15/30

...................

2,000,000

2,061,701

2,263,895

Health

Care

Equipment

&

Supplies

1.3%

b

Medline

Borrower

LP

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

....................................

5,000,000

4,890,122

Senior

Secured

Note

,

144A,

3.875

%

,

4/01/29

.............................

2,000,000

1,886,463

6,776,585

Health

Care

Providers

&

Services

17.7%

b

CHS/Community

Health

Systems,

Inc.

,

144A,

10.75

%

,

6/15/33

..............................................

17,500,000

18,274,725

Secured

Note

,

144A,

6.875

%

,

4/15/29

..................................

20,000,000

16,733,100

Senior

Secured

Note

,

144A,

10.875

%

,

1/15/32

............................

16,000,000

17,073,904

b

DaVita,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

2/15/31

....................................

6,000,000

5,318,254

Senior

Note

,

144A,

6.875

%

,

9/01/32

....................................

3,000,000

3,049,491

Senior

Note

,

144A,

6.75

%

,

7/15/33

.....................................

500,000

505,506

b

Kedrion

SpA

,

Senior

Secured

Note

,

144A,

6.5

%

,

9/01/29

......................

1,000,000

964,864

Tenet

Healthcare

Corp.

,

Senior

Note

,

6.125

%

,

10/01/28

........................................

8,000,000

8,016,984

Senior

Secured

Note

,

6.125

%

,

6/15/30

..................................

11,000,000

11,121,532

Senior

Secured

Note

,

6.75

%

,

5/15/31

...................................

15,000,000

15,460,155

96,518,515

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

22

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

7.9%

b

Caesars

Entertainment,

Inc.

,

Senior

Note

,

144A,

8.125

%

,

7/01/27

....................................

$

1,352,000

$

1,354,831

Senior

Note

,

144A,

6

%

,

10/15/32

......................................

7,000,000

6,719,392

Senior

Secured

Note

,

144A,

7

%

,

2/15/30

................................

4,500,000

4,620,397

b

Carnival

Corp.

,

Senior

Note

,

144A,

6

%

,

5/01/29

.......................................

5,000,000

5,016,303

Senior

Note

,

144A,

6.125

%

,

2/15/33

....................................

8,500,000

8,526,303

b

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

1/15/30

.....................................

5,000,000

4,544,823

Senior

Secured

Note

,

144A,

4.625

%

,

1/15/29

.............................

1,000,000

938,559

b

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

6.75

%

,

2/01/32

..........................

750,000

750,608

b

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.......................

3,500,000

3,376,494

b

Wynn

Resorts

Finance

LLC

/

Wynn

Resorts

Capital

Corp.

,

Senior

Note

,

144A,

7.125

%

,

2/15/31

.........................................................

7,000,000

7,346,374

43,194,084

Household

Durables

0.6%

b

Newell

Brands,

Inc.

,

Senior

Note

,

144A,

8.5

%

,

6/01/28

.......................

1,750,000

1,814,835

Shea

Homes

LP

/

Shea

Homes

Funding

Corp.

,

Senior

Note

,

4.75

%

,

4/01/29

.......

1,500,000

1,438,354

3,253,189

Household

Products

0.3%

b

Energizer

Holdings,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

12/31/27

...................

1,500,000

1,511,130

Independent

Power

and

Renewable

Electricity

Producers

3.0%

b

Calpine

Corp.

,

Senior

Note

,

144A,

4.625

%

,

2/01/29

..........................

6,000,000

5,851,331

b

,c

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

8%

to

10/14/26,

FRN

thereafter

,

Perpetual

....

10,000,000

10,269,370

16,120,701

Media

1.4%

b

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note

,

144A,

7.5

%

,

6/01/29

.....................................

300,000

265,499

Senior

Secured

Note

,

144A,

5.125

%

,

8/15/27

.............................

1,000,000

978,907

Senior

Secured

Note

,

144A,

9

%

,

9/15/28

................................

3,000,000

3,144,279

b

Stagwell

Global

LLC

,

Senior

Note

,

144A,

5.625

%

,

8/15/29

.....................

200,000

188,215

b

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

6/01/27

.....

3,250,000

3,252,088

7,828,988

Metals

&

Mining

2.4%

b

Alcoa

Nederland

Holding

BV

,

Senior

Note

,

144A,

4.125

%

,

3/31/29

...............

750,000

706,068

ArcelorMittal

SA

,

Senior

Bond

,

6.8

%

,

11/29/32

..............................

50,000

54,129

b

Cleveland-Cliffs,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

5/01/33

....................

6,000,000

5,159,561

b

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Bond

,

144A,

4.375

%

,

4/01/31

...................................

800,000

735,067

Senior

Bond

,

144A,

6.125

%

,

4/15/32

...................................

6,000,000

5,989,426

b

Mineral

Resources

Ltd.

,

Senior

Note

,

144A,

8.5

%

,

5/01/30

....................

550,000

545,275

13,189,526

Oil,

Gas

&

Consumable

Fuels

8.0%

b

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note

,

144A,

11

%

,

4/15/26

......................................

508,000

509,568

Senior

Note

,

144A,

8.125

%

,

1/15/27

....................................

7,500,000

7,243,413

Senior

Note

,

144A,

9.75

%

,

7/15/28

.....................................

3,000,000

2,905,893

Senior

Secured

Note

,

144A,

9.25

%

,

7/15/29

..............................

3,000,000

3,082,500

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

23

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Cheniere

Corpus

Christi

Holdings

LLC

,

Senior

Secured

Note

,

3.7

%

,

11/15/29

......

$

100,000

$

95,847

b

CITGO

Petroleum

Corp.

,

Senior

Secured

Note

,

144A,

6.375

%

,

6/15/26

...........

1,000,000

1,002,319

Energy

Transfer

LP

,

Senior

Bond

,

6.55

%

,

12/01/33

..........................

50,000

53,133

b

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond

,

144A,

7.25

%

,

2/15/35

....................................

3,000,000

2,782,530

Senior

Note

,

144A,

6

%

,

4/15/30

.......................................

1,000,000

949,606

b

Matador

Resources

Co.

,

Senior

Note

,

144A,

6.5

%

,

4/15/32

....................

4,000,000

3,920,146

Occidental

Petroleum

Corp.

,

Senior

Note

,

8.875

%

,

7/15/30

....................

50,000

56,246

b

Venture

Global

LNG,

Inc.

,

Senior

Secured

Note

,

144A,

8.125

%

,

6/01/28

.............................

10,000,000

10,241,350

Senior

Secured

Note

,

144A,

9.875

%

,

2/01/32

.............................

8,000,000

8,515,768

b

Venture

Global

Plaquemines

LNG

LLC

,

Senior

Secured

Bond

,

144A,

7.75

%

,

5/01/35

.

2,000,000

2,107,872

Williams

Cos.,

Inc.

(The)

,

Senior

Bond

,

5.65

%

,

3/15/33

.......................

100,000

102,451

43,568,642

Passenger

Airlines

3.9%

b

,e

American

Airlines

Group,

Inc.

,

Senior

Secured

Note

,

144A,

PIK,

10.75

%

,

2/15/26

...

5,000,000

5,023,775

b

American

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

8.5

%

,

5/15/29

..............

10,000,000

10,367,400

American

Airlines,

Inc.

/

AAdvantage

Loyalty

IP

Ltd.

,

b

Senior

Secured

Note

,

144A,

5.5

%

,

4/20/26

...............................

1,333,333

1,331,889

b

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.75

%

,

10/20/28

.

50,000

49,822

b

JetBlue

Airways

Corp.

/

JetBlue

Loyalty

LP

,

Senior

Secured

Note

,

144A,

9.875

%

,

9/20/31

.........................................................

4,500,000

4,454,373

21,227,259

Personal

Care

Products

0.6%

b

Opal

Bidco

SAS

,

Senior

Secured

Note

,

144A,

6.5

%

,

3/31/32

...................

3,000,000

2,999,506

Pharmaceuticals

1.6%

b

1261229

BC

Ltd.

,

Senior

Secured

Note

,

144A,

10

%

,

4/15/32

...................

5,000,000

4,953,210

b

Endo

Finance

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

8.5

%

,

4/15/31

..........

2,000,000

2,072,662

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

8.125

%

,

9/15/31

....

1,500,000

1,670,475

8,696,347

Semiconductors

&

Semiconductor

Equipment

0.0%

†

Micron

Technology,

Inc.

,

Senior

Bond

,

5.875

%

,

2/09/33

.......................

200,000

204,529

Software

0.9%

b

McAfee

Corp.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

..........................

5,000,000

4,628,860

Workday,

Inc.

,

Senior

Bond

,

3.8

%

,

4/01/32

................................

150,000

139,193

4,768,053

Specialized

REITs

0.0%

†

American

Tower

Corp.

,

Senior

Note

,

4.05

%

,

3/15/32

.........................

50,000

47,190

Specialty

Retail

0.0%

†

Lowe's

Cos.,

Inc.

,

Senior

Bond

,

5

%

,

4/15/33

...............................

60,000

59,867

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

Hewlett

Packard

Enterprise

Co.

,

Senior

Bond

,

5

%

,

10/15/34

...................

50,000

48,703

HP,

Inc.

,

Senior

Bond

,

5.5

%

,

1/15/33

.....................................

80,000

79,731

128,434

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

24

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Textiles,

Apparel

&

Luxury

Goods

0.4%

b

Hanesbrands,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/31

..........................

$

2,000,000

$

2,114,928

Tobacco

0.0%

†

BAT

Capital

Corp.

,

Senior

Bond

,

6.421

%

,

8/02/33

...........................

50,000

53,626

Trading

Companies

&

Distributors

0.6%

b

Foundation

Building

Materials,

Inc.

,

Senior

Note

,

144A,

6

%

,

3/01/29

.............

4,000,000

3,410,974

b

United

Rentals

North

America,

Inc.

,

Senior

Secured

Note

,

144A,

6

%

,

12/15/29

.....

50,000

50,881

3,461,855

Total

Corporate

Bonds

(Cost

$

417,385,052

)

.....................................

423,052,078

Senior

Floating

Rate

Interests

2.0%

Containers

&

Packaging

0.4%

d

,f

Clydesdale

Acquisition

Holdings,

Inc.,

First

Lien,

2025

Incremental

Closing

Date

CME

Term

Loan,

B

,

7.548

%

,

(

3-month

SOFR

+

3.25

%

),

4/01/32

...................

2,457,045

2,441,111

Health

Care

Providers

&

Services

0.1%

f

MPH

Acquisition

Holdings

LLC,

First

Lien,

Exchange

First

Out

CME

Term

Loan

,

8.03

%

,

(

3-month

SOFR

+

3.75

%

),

12/31/30

....................................

537,401

530,012

IT

Services

1.1%

f

Twitter,

Inc.,

First

Lien,

CME

Term

Loan,

B1

,

10.949

%

,

(

3-month

SOFR

+

6.5

%

),

10/26/29

........................................................

5,984,694

5,934,392

Personal

Care

Products

0.4%

d

,f

Opal

LLC,

First

Lien,

CME

Term

Loan,

B2

,

7.435

%

,

(

6-month

SOFR

+

3.25

%

),

3/31/32

2,000,000

2,005,000

Total

Senior

Floating

Rate

Interests

(Cost

$

10,778,094

)

..........................

10,910,515

Mortgage-Backed

Securities

18.5%

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

10.9%

FHLMC

Pool,

30

Year

,

5

%,

5/01/53

......................................

1,582,462

1,536,207

FHLMC

Pool,

30

Year

,

5

%,

11/01/54

.....................................

4,915,715

4,761,878

FHLMC

Pool,

30

Year

,

5

%,

12/01/54

.....................................

10,812,110

10,474,576

FHLMC

Pool,

30

Year

,

5.5

%,

7/01/53

.....................................

5,788,372

5,746,035

FHLMC

Pool,

30

Year

,

5.5

%,

12/01/54

....................................

10,594,538

10,494,966

FHLMC

Pool,

30

Year

,

5.5

%,

11/01/53

-

2/01/55

............................

11,405,581

11,299,729

FHLMC

Pool,

30

Year

,

6

%,

6/01/53

......................................

2,531,280

2,561,995

FHLMC

Pool,

30

Year

,

6

%,

1/01/55

......................................

5,632,912

5,692,065

FHLMC

Pool,

30

Year

,

6

%,

2/01/55

......................................

6,886,151

6,958,464

59,525,915

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

1.8%

FNMA,

30

Year

,

5

%,

5/01/53

...........................................

1,570,433

1,524,528

FNMA,

30

Year

,

5

%,

11/01/53

..........................................

4,787,570

4,647,724

FNMA,

30

Year

,

5.5

%,

11/01/54

.........................................

3,801,892

3,767,052

9,939,304

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

5.8%

GNMA

II,

Single-family,

30

Year

,

5.5

%,

3/20/55

.............................

5,725,056

5,690,352

GNMA

II,

Single-family,

30

Year

,

5.5

%,

5/20/55

.............................

5,050,000

5,019,387

GNMA

II,

Single-family,

30

Year

,

6

%,

1/20/55

...............................

7,861,997

7,947,112

GNMA

II,

Single-family,

30

Year

,

6

%,

2/20/55

...............................

4,905,876

4,958,988

GNMA

II,

Single-family,

30

Year

,

6

%,

3/20/55

...............................

5,226,131

5,282,710

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

25

See

Abbreviations

on

page

30

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

(continued)

GNMA

II,

Single-family,

30

Year

,

6

%,

5/20/55

...............................

$

2,500,000

$

2,527,262

31,425,811

Total

Mortgage-Backed

Securities

(Cost

$

100,778,534

)

...........................

100,891,030

Shares

Escrows

and

Litigation

Trusts

0.0%

a

,g

Endo,

Inc.,

Escrow

Account

............................................

300,000

—

Total

Escrows

and

Litigation

Trusts

(Cost

$

–

)

...................................

—

Total

Long

Term

Investments

(Cost

$

531,882,640

)

...............................

538,321,022

a

a

a

a

a

Short

Term

Investments

0.8%

a

Money

Market

Funds

0.8%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

4.079

%

..................

4,525,915

4,525,915

Total

Money

Market

Funds

(Cost

$

4,525,915

)

...................................

4,525,915

Total

Short

Term

Investments

(Cost

$

4,525,915

)

.................................

4,525,915

a

Total

Investments

(Cost

$

536,408,555

)

99.5

%

...................................

$542,846,937

Other

Assets,

less

Liabilities

0.5

%

.............................................

2,604,035

Net

Assets

100.0%

...........................................................

$545,450,972

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

May

31,

2025,

the

aggregate

value

of

these

securities

was

$361,831,803,

representing

66.3%

of

net

assets.

c

Perpetual

security

with

no

stated

maturity

date.

d

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

g

Fair

valued

using

significant

unobservable

inputs.

See

Note

4

regarding

fair

value

measurements.

h

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

26

Quarterly

Schedules

of

Investments

1.

Organization

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

ten

separate funds, four

of

which

are

included

in

this

report

(Funds).

The Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

2. Financial

Instrument

Valuation

The

Funds’

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

Funds

calculate

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

Board

has

designated

the

Funds'

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and exchange

traded

funds 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.

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Funds’

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Funds’

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

Funds’ net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets. 

The

Funds

have procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

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

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

27

Quarterly

Schedules

of

Investments

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

Funds’

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

Funds’

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

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

May

31,

2025,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2 within

the

fair

value

hierarchy

(referred

to

as

"market

level

fair

value").

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds’

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds’

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

Funds

for

financial

reporting

purposes.

3.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

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

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

During

the

period

ended

May

31,

2025,

investments

in

affiliated

management

investment

companies

were

as

follows: 

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Templeton

SMACS:

Series

E

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.079%

$1,129,213

$177,707,766

$(178,167,056)

$—

$—

$669,923

669,923

$109,183

Total

Affiliated

Securities

...

$1,129,213

$177,707,766

$(178,167,056)

$—

$—

$669,923

$109,183

Franklin

Templeton

SMACS:

Series

H

Non-Controlled

Affiliates

Dividends

Franklin

Dynamic

Municipal

Bond

ETF

...................

$421,260

$—

$—

$—

$(10,540)

$410,720

17,000

$12,577

Total

Affiliated

Securities

...

$421,260

$—

$—

$—

$(10,540)

$410,720

$12,577

Franklin

Templeton

SMACS:

Series

I

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.079%

$2,116,283

$188,529,877

$(186,120,245)

$—

$—

$4,525,915

4,525,915

$160,767

Total

Affiliated

Securities

...

$2,116,283

$188,529,877

$(186,120,245)

$—

$—

$4,525,915

$160,767

2. Financial

Instrument

Valuation

(continued)

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

28

Quarterly

Schedules

of

Investments

4. Fair

Value

Measurements

The

Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Funds’

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

Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

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

May

31,

2025,

in

valuing

the

Funds’

assets

carried

at

fair

value,

is

as

follows:  

Level

1

Level

2

Level

3

Total

Franklin

Templeton

SMACS:

Series

CH

Assets:

Investments

in

Securities:

a

Corporate

Bonds

........................

$

—

$

236,950

$

—

$

236,950

Municipal

Bonds

:

Arizona

..............................

—

517,511

—

517,511

California

.............................

—

27,553,265

601,376

28,154,641

Florida

...............................

—

103,838

—

103,838

U.S.

Territories

..........................

Puerto

Rico

...........................

—

140,342

—

140,342

Short

Term

Investments

...................

—

400,000

—

400,000

Total

Investments

in

Securities

...........

$—

$28,951,906

$601,376

$29,553,282

Franklin

Templeton

SMACS:

Series

E

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

7,957,500

—

—

7,957,500

Banks

...............................

9,112,650

—

—

9,112,650

Beverages

...........................

5,915,250

—

—

5,915,250

Biotechnology

.........................

3,722,200

—

—

3,722,200

Capital

Markets

........................

2,449,725

—

—

2,449,725

Consumer

Staples

Distribution

&

Retail

......

3,092,929

—

—

3,092,929

Electric

Utilities

........................

4,570,141

—

—

4,570,141

Energy

Equipment

&

Services

.............

9,915,000

—

—

9,915,000

Food

Products

........................

6,710,130

—

—

6,710,130

Health

Care

Equipment

&

Supplies

.........

8,065,300

—

—

8,065,300

Health

Care

Providers

&

Services

..........

3,019,100

—

—

3,019,100

Hotels,

Restaurants

&

Leisure

.............

6,277,000

—

—

6,277,000

Interactive

Media

&

Services

..............

3,434,800

—

—

3,434,800

Machinery

............................

2,088,180

—

—

2,088,180

Metals

&

Mining

.......................

6,896,750

—

—

6,896,750

Oil,

Gas

&

Consumable

Fuels

.............

11,769,007

5,609,138

—

17,378,145

Pharmaceuticals

.......................

13,559,282

—

—

13,559,282

Semiconductors

&

Semiconductor

Equipment

.

8,051,100

—

—

8,051,100

Software

.............................

2,653,700

—

—

2,653,700

Tobacco

.............................

14,447,200

—

—

14,447,200

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

29

Quarterly

Schedules

of

Investments

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the

period.

At May

31,

2025,

the

reconciliations

are

as

follows:

Level

3

financial

instruments,

for

the

Franklin

Templeton

SMACS:

Series

CH,

include

the

fair

value

of

assets

and/or

liabilities

derived

from

recent

transactions,

private

transaction

prices,

or

non-public

third-party

pricing

information

that

is

unobservable.

Level

1

Level

2

Level

3

Total

Franklin

Templeton

SMACS:

Series

E

(continued)

Assets:

(continued)

Investments

in

Securities:

(continued)

Equity-Linked

Securities

...................

$

—

$

179,726,605

$

—

$

179,726,605

Convertible

Preferred

Stocks

................

29,958,650

—

—

29,958,650

Short

Term

Investments

...................

669,923

—

—

669,923

Total

Investments

in

Securities

...........

$164,335,517

$185,335,743

b

$—

$349,671,260

Franklin

Templeton

SMACS:

Series

H

Assets:

Investments

in

Securities:

a

Management

Investment

Companies

.........

410,720

—

—

410,720

Corporate

Bonds

........................

—

236,950

—

236,950

Municipal

Bonds

.........................

—

21,937,500

—

21,937,500

Short

Term

Investments

...................

—

1,800,000

—

1,800,000

Total

Investments

in

Securities

...........

$410,720

$23,974,450

$—

$24,385,170

Franklin

Templeton

SMACS:

Series

I

Assets:

Investments

in

Securities:

a

Common

Stocks

.........................

2,083,437

—

—

2,083,437

Equity-Linked

Securities

...................

—

1,383,962

—

1,383,962

Corporate

Bonds

........................

—

423,052,078

—

423,052,078

Senior

Floating

Rate

Interests

...............

—

10,910,515

—

10,910,515

Mortgage-Backed

Securities

................

—

100,891,030

—

100,891,030

Escrows

and

Litigation

Trusts

...............

—

—

—

c

—

Short

Term

Investments

...................

4,525,915

—

—

4,525,915

Total

Investments

in

Securities

...........

$6,609,352

$536,237,585

$—

$542,846,937

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

b

Includes

foreign

securities

valued

at

$5,609,138,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

c

Includes

financial

instruments

determined

to

have

no

value.

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciation

(Depreciation)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Templeton

SMACS:

Series

CH

Assets:

Investments

in

Securities:

Municipal

Bonds

:

United

States

.

$

14,263

$

600,000

$

(8,372)

$

—

$

—

$

—

$

(53,586)

$

49,071

$

601,376

$

1,376

Total

Investments

in

Securities

.......

$14,263

$600,000

$(8,372)

$—

$—

$—

$(53,586)

$49,071

$601,376

$1,376

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

4. Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

30

Quarterly

Schedules

of

Investments

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

CME

Chicago

Mercantile

Exchange

ETF

Exchange-Traded

Fund

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

GO

General

Obligation

LOC

Letter

of

Credit

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

SPA

Standby

Purchase

Agreement

For

additional

information

on

the

Funds'

significant

accounting

policies,

please

refer

to

the Funds'

most

recent

semiannual

or

annual

shareholder

report.