N-CSR 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-06243
 
Franklin Strategic Series

(Exact name of registrant as specified in charter)
 
_One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
 
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 4/30
 
Date of reporting period: 4/30/22
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.   
Not Applicable
.
 
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Strategic
Series
April
30,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
April
30,
2022,
the
U.S.
economy
showed
progress
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment
and
rising
wages
and
personal
consumption.
Growth
mostly
accelerated
in
2021
as
the
reopening
of
businesses,
widespread
vaccinations
and
federal
assistance
programs
boosted
consumer
spending,
excepting
slower
third-quarter
growth
as
the
swiftly
spreading
Delta
variant
hindered
global
supply
chains.
The
U.S.
economy
contracted
in
2022’s
first
quarter
given
a
record
trade
deficit
and
a
decline
in
inventory
investment.
Inflation
increased
during
the
12-month
period,
influenced
by
pandemic-related
supply
and
demand
imbalances,
higher
energy
prices,
Russia’s
invasion
of
Ukraine
and
broader
price
pressures.
During
most
of
the
period,
the
U.S.
Federal
Reserve
(Fed)
continued
quantitative
easing
measures
to
bolster
credit
markets
and
encourage
economic
activity.
However,
the
Fed
decreased
its
monthly
asset
purchases
starting
in
November
2021,
increased
its
tapering
in
subsequent
months
and
ended
purchases
in
March
2022.
To
support
its
goals
of
maximizing
employment
and
returning
long-term
annual
inflation
to
2%,
the
Fed
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%
at
its
March
meeting.
Shortly
after
the
reporting
period,
at
its
May
meeting,
the
Fed
raised
its
key
target
rate
again
to
a
range
of
0.75%–1.00%
and
stated
its
anticipation
of
ongoing
increases.
Although
stocks
benefited
early
in
the
period
from
the
economic
recovery,
during
the
period’s
last
four
months,
investor
concerns
about
inflation,
geopolitics
and
interest
rates
reversed
most
gains,
and
most
bond
valuations
also
declined.
In
this
environment,
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
posted
a
+0.21%
total
return
for
the
12-month
period.
1
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
We
believe
active,
professional
investment
management
serves
investors
well.
We
also
recognize
the
important
role
of
financial
professionals
in
today’s
markets
and
encourage
investors
to
continue
to
seek
their
advice.
Amid
changing
markets
and
economic
conditions,
we
are
confident
investors
with
a
well-diversified
portfolio
and
a
patient,
long-term
outlook
should
be
well-positioned
for
the
years
ahead.
In
addition,
Franklin
Strategic
Series’
annual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
All
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Edward
Perks,
CFA
President
and
Chief
Executive
Officer
–
Investment
Management
Franklin
Strategic
Series
This
letter
reflects
our
analysis
and
opinions
as
of
April
30,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Economic
and
Market
Overview
3
Franklin
Growth
Opportunities
Fund
4
Franklin
Small
Cap
Growth
Fund
10
Franklin
Small-Mid
Cap
Growth
Fund
16
Financial
Highlights
and
Schedules
of
Investments
22
Financial
Statements
54
Notes
to
Financial
Statements
59
Report
of
Independent
Registered
Public
Accounting
Firm
86
Tax
Information
87
Board
Members
and
Officers
88
Shareholder
Information
93
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Economic
and
Market
Overview
U.S.
equities,
as
measured
by
the
Standard
&
Poor’s
500
Index,
posted
a
+0.21%
total
return
for
the
12
months
ended
April
30,
2022.
1
Stocks
benefited
from
the
continued
economic
recovery,
implementation
of
COVID-19
vaccination
programs
and
resumption
of
both
business
and
leisure
travel.
Higher
wages
and
strong
household
balance
sheets
contributed
to
increased
consumer
spending,
particularly
on
goods.
A
rebound
in
corporate
earnings
and
the
passage
of
a
bipartisan
infrastructure
bill
further
bolstered
investor
sentiment.
However,
concerns
surrounding
inflation,
geopolitical
stability
and
interest
rates
erased
most
gains
in
the
final
third
of
the
12-month
period.
Elevated
demand
combined
with
supply
chain
disruptions
led
to
the
highest
inflation
since
1981.
Russia’s
invasion
of
Ukraine
injected
further
uncertainty
into
financial
markets,
provoking
significant
volatility
in
commodity
and
equity
prices.
Rising
interest
rates
also
pressured
stocks,
as
borrowing
costs
began
to
increase
from
historically
low
levels.
Gross
domestic
product
growth
was
robust
in
2021
before
contracting
in
the
first
quarter
of
2022
amid
lower
investments
in
inventories
and
a
growing
trade
deficit.
Nonetheless,
both
exports
and
imports
increased
significantly
and
industrial
production
grew
robustly.
However,
rising
prices
precipitated
a
notable
decline
in
consumer
confidence,
despite
high
spending
levels.
The
inflation
rate
was
notably
elevated
during
the
12-month
period
amid
increased
demand
and
supply-chain
bottlenecks.
Consequently,
the
personal
consumption
expenditures
index,
a
measure
of
inflation,
surged
during
the
period,
representing
the
highest
12-month
increase
in
decades.
The
unemployment
rate
declined
from
6.0%
in
April
2021
to
3.6%
in
April
2022
as
job
openings
increased,
but
a
relative
lack
of
available
workers
fueled
wage
growth,
adding
to
some
investors’
inflation
concerns.
In
an
effort
to
control
inflation,
the
U.S.
Federal
Reserve
(Fed)
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%
in
March
2022,
the
first
such
increase
since
2018.
The
Fed
noted
in
its
March
meeting
that
strength
in
the
U.S.
job
market
and
continued
inflationary
pressure,
exacerbated
by
the
war
in
Ukraine,
meant
it
anticipated
making
further
increases
to
the
federal
funds
target
rate.
Furthermore,
the
Fed
said
it
expected
to
begin
reducing
its
bond
holdings
at
a
future
meeting.
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
April
30,
2022.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
4
franklintempleton.com
Annual
Report
Franklin
Growth
Opportunities
Fund
This
annual
report
for
Franklin
Growth
Opportunities
Fund
covers
the
fiscal
year
ended
April
30,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation.
Under
normal
conditions,
the
Fund
invests
predominantly
in
equity
securities
of
companies
demonstrating
accelerating
growth,
increasing
profitability,
or
above-average
growth
or
growth
potential
as
compared
with
the
overall
economy.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-16.57%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
Fund’s
narrow
benchmark,
the
Russell
3000
®
Growth
Index,
which
measures
the
performance
of
those
Russell
3000
®
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
-6.83%
cumulative
total
return.
1
The
Fund’s
broad
benchmark,
the
Standard
&
Poor’s
500
Index
(S&P
500
®
),
which
tracks
the
broad
U.S.
stock
market,
posted
a
+0.21%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
6
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Investment
Strategy
We
use
fundamental,
bottom-up
research
to
seek
companies
meeting
our
criteria
of
growth
potential,
quality
and
valuation.
In
seeking
sustainable
growth
characteristics,
we
look
for
companies
we
believe
can
produce
sustainable
earnings
and
cash
flow
growth,
evaluating
the
long-term
market
opportunity
and
competitive
structure
of
an
industry.
We
define
quality
companies
as
those
with
strong
and
improving
competitive
positions
in
attractive
markets.
We
also
believe
important
attributes
of
quality
are
experienced
and
talented
management
teams
as
well
as
financial
strength
reflected
in
the
capital
structure,
gross
and
operating
margins,
free
cash
flow
generation
and
returns
on
capital
employed.
Our
valuation
analysis
includes
a
range
of
potential
outcomes
based
on
an
assessment
of
multiple
scenarios.
In
assessing
value,
we
consider
whether
security
prices
fully
reflect
the
balance
of
the
sustainable
growth
opportunities
relative
to
business
and
financial
risks.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Manager’s
Discussion
During
the
12
months
under
review,
Franklin
Growth
Opportunities
Fund
underperformed
its
benchmark
as
investors’
flight
from
growth-oriented
equities
in
the
latter
part
of
the
period
led
to
broad-based
declines
in
the
Fund
and
its
benchmark.
Much
of
the
Fund’s
underperformance
occurred
in
the
information
technology
(IT)
sector,
which
is
the
portfolio’s
largest
sector
allocation.
An
underweighted
position
in
technology
bellwether
Apple
was
a
leading
relative
detractor.
The
stock
resisted
the
market’s
technology
selloff
better
than
most,
as
demand
for
Apple
products
remained
strong
and
consumer
spending
in
Apple’s
ecosystem
was
robust.
Relative
returns
were
also
hindered
by
an
underweighting
in
Microsoft,
which
continued
to
benefit
from
its
Azure
cloud
business.
While
we
think
these
mega-cap
companies
are
excellent
businesses,
we
believe
Portfolio
Composition
4/30/22
%
of
Total
Net
Assets
Software
21.5%
IT
Services
9.1%
Internet
&
Direct
Marketing
Retail
7.4%
Semiconductors
&
Semiconductor
Equipment
6.0%
Technology
Hardware,
Storage
&
Peripherals
5.6%
Life
Sciences
Tools
&
Services
5.1%
Health
Care
Equipment
&
Supplies
5.0%
Interactive
Media
&
Services
4.7%
Capital
Markets
4.2%
Health
Care
Providers
&
Services
3.7%
Equity
Real
Estate
Investment
Trusts
(REITs)
2.9%
Professional
Services
2.6%
Hotels,
Restaurants
&
Leisure
2.6%
Pharmaceuticals
2.2%
Other*
15.8%
Short-Term
Investments
&
Other
Net
Assets
1.6%
1.
Source:
Morningstar.
Frank
Russell
Company
is
the
source
and
owner
of
the
trademarks,
service
marks
and
copyrights
related
to
the
Russell
Indexes.
Russell
®
is
a
trademark
of
Frank
Russell
Company.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
27
.
Franklin
Growth
Opportunities
Fund
5
franklintempleton.com
Annual
Report
our
balance
between
mega-,
large-,
and
mid-cap
companies
gives
us
broader
exposure
to
different
areas
of
the
market.
Another
detractor
in
the
IT
sector
was
cloud
communications
platform
company
Twilio,
which
processes
text
messages,
calls,
videos,
and
other
content
for
mobile
apps
including
the
major
ridesharing
apps.
The
stock
saw
a
pullback
in
its
equity
value,
but
is
still
one
of
the
world’s
top
performing
growth
stocks
of
the
past
five
years.
Our
second
largest
sector
exposure
was
health
care,
which
detracted
from
relative
performance
due
to
stock
selection
and
an
overweighting.
There
were
no
health
care
holdings
among
the
Fund’s
five
biggest
detractors,
though
UnitedHealth
Group
finished
as
a
top-five
contributor
as
low
utilization
of
health
care
services
during
the
pandemic
kept
managed
cared
medical
expenses
low.
Despite
growing
inflationary
pressures,
the
consumer
discretionary
sector
was
a
leading
contributor
to
relative
returns.
Off-benchmark
positions
in
Fanatics
Holdings
and
Lucid
Group
were
top
contributors
in
this
space.
Licensed
sports
merchandiser
Fanatics
has
been
outperforming
expectations
and
delivering
outsized
growth
and
profits
in
its
e-commerce
business.
Our
multi-cap
mandate
permits
us
to
invest
early
in
emerging
businesses,
like
Fanatics,
which
allows
us
take
advantage
of
disruptive
trends
before
our
peers.
Lucid
started
production
and
delivery
of
its
luxury
sedans,
which
boosted
the
stock
of
the
electric
vehicle
(EV)
manufacturer.
In
contrast,
supply-chain
snarls
and
parts
shortages
have
been
headwinds
for
EV
manufacturer
Rivian
Automotive.
Nonetheless,
we
believe
the
long-term
outlook
for
EV
adoption
in
the
U.S.
and
globally
is
robust.
In
the
communication
services
sector,
our
current
preference
for
lighter-than-index
exposures
to
interactive
media
and
services
companies
such
as
Meta
Platforms
proved
beneficial
in
relative
terms.
Shares
of
Meta,
formerly
Facebook,
faced
several
challenges
during
the
period
that
included
ongoing
headwinds
from
Apple
platform
changes;
inflationary
pressures
on
advertising
dollars;
and
decreased
user
engagement
due
to
competition.
Our
underweighting
to
Meta
helped
mitigate
the
relative
impact
of
the
stock’s
substantial
decline.
Thank
you
for
your
continued
participation
in
Franklin
Growth
Opportunities
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Grant
Bowers
Lead
Portfolio
Manager
Sara
Araghi,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
4/30/22
Company
Industry
%
of
Total
Net
Assets
a
aa
Amazon.com,
Inc.
7.4%
Internet
&
Direct
Marketing
Retail
Apple,
Inc.
5.6%
Technology
Hardware,
Storage
&
Peripherals
Microsoft
Corp.
5.0%
Software
Mastercard
,
Inc.
4.8%
IT
Services
Alphabet,
Inc.
3.3%
Interactive
Media
&
Services
NVIDIA
Corp.
3.0%
Semiconductors
&
Semiconductor
Equipment
SBA
Communications
Corp.
2.9%
Equity
Real
Estate
Investment
Trusts
(REITs)
ServiceNow
,
Inc.
2.8%
Software
UnitedHealth
Group,
Inc.
2.6%
Health
Care
Providers
&
Services
Danaher
Corp.
2.3%
Life
Sciences
Tools
&
Services
Performance
Summary
as
of
April
30,
2022
Franklin
Growth
Opportunities
Fund
6
franklintempleton.com
Annual
Report
The
performance
table
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4/30/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3
1-Year
-16.57%
-21.16%
5-Year
+91.03%
+12.54%
10-Year
+223.66%
+11.83%
Advisor
1-Year
-16.37%
-16.37%
5-Year
+93.36%
+14.10%
10-Year
+232.28%
+12.76%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Growth
Opportunities
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
See
page
8
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Growth
Opportunities
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Growth
stock
prices
reflect
projections
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramatically
if
the
company
fails
to
meet
those
projections.
To
the
extent
the
Fund
focuses
on
particular
countries,
regions,
industries,
sectors
or
types
of
invest-
ment
from
time
to
time,
it
may
be
subject
to
greater
risks
of
adverse
developments
in
such
areas
of
focus
than
a
fund
that
invests
in
a
wider
variety
of
countries,
regions,
industries,
sectors
or
investments.
Smaller,
midsized
and
relatively
new
or
unseasoned
companies
can
be
particularly
sensitive
to
changing
economic
conditions,
and
their
prospects
for
growth
are
less
certain
than
those
of
larger,
more
established
companies.
Historically,
these
securities
have
experienced
more
price
volatility
than
larger-company
stocks,
especially
over
the
short
term.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
4.
Source:
Morningstar.
The
Russell
3000
Growth
Index
is
market
capitalization
weighted
and
measures
performance
of
those
Russell
3000
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
values.
The
S&P
500
is
a
market
capitalization-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$0.2134
$4.8517
$5.0651
C
$0.2134
$4.8517
$5.0651
R
$0.2134
$4.8517
$5.0651
R6
$0.2134
$4.8517
$5.0651
Advisor
$0.2134
$4.8517
$5.0651
Total
Annual
Operating
Expenses
5
Share
Class
A
0.91%
Advisor
0.66%
Your
Fund’s
Expenses
Franklin
Growth
Opportunities
Fund
9
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
a
Net
Ann
ualized
Expense
Ratio
2
A
$1,000
$724.00
$3.80
$1,020.38
$4.46
0.89%
C
$1,000
$721.20
$7.00
$1,016.66
$8.20
1.64%
R
$1,000
$723.00
$4.87
$1,019.14
$5.71
1.14%
R6
$1,000
$725.00
$2.43
$1,021.98
$2.85
0.57%
Advisor
$1,000
$724.80
$2.73
$1,021.63
$3.20
0.64%
10
franklintempleton.com
Annual
Report
Franklin
Small
Cap
Growth
Fund
This
annual
report
for
Franklin
Small
Cap
Growth
Fund
covers
the
fiscal
year
ended
April
30,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
growth.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
the
equity
securities
of
small-cap
companies.
For
this
Fund,
small-cap
companies
are
those
with
market
capitalizations
not
exceeding
$1.5
billion
or
the
highest
market
capitalization
in
the
Russell
2000
®
Index,
whichever
is
greater,
at
the
time
of
purchase.
1
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-29.53%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
Russell
2000
®
Growth
Index,
which
measures
the
performance
of
small-cap
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
-26.44%
cumulative
total
return.
2
The
Standard
&
Poor’s
500
Index
(S&P
500),
which
tracks
the
broad
U.S.
stock
market,
posted
a
+0.21%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
12
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
We
use
fundamental,
bottom-up
research
to
seek
companies
meeting
our
criteria
of
growth
potential,
quality
and
valuation.
In
seeking
sustainable
growth
characteristics,
we
look
for
companies
we
believe
can
produce
sustainable
earnings
and
cash
flow
growth,
evaluating
the
long-term
market
opportunity
and
competitive
structure
of
an
industry.
We
define
quality
companies
as
those
with
strong
and
improving
competitive
positions
in
attractive
markets.
We
also
believe
important
attributes
of
quality
are
experienced
and
talented
management
teams
as
well
as
financial
strength
reflected
in
the
capital
structure,
gross
and
operating
margins,
free
cash
flow
generation
and
returns
on
capital
employed.
Our
valuation
analysis
includes
a
range
of
potential
outcomes
based
on
an
assessment
of
multiple
scenarios.
In
assessing
value,
we
consider
whether
security
prices
fully
reflect
the
balance
of
the
sustainable
growth
opportunities
relative
to
business
and
financial
risks.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Manager’s
Discussion
For
the
12
months
under
review,
negative
relative
performance
for
Franklin
Small
Cap
Growth
Fund
was
driven
mainly
by
stock
selection
in
the
industrials
sector
and
lack
of
exposure
to
the
energy
sector,
which
rallied
on
the
back
of
rising
oil
prices.
In
contrast,
stock
selection
and
an
overweighting
in
the
financials
sector
and
stock
selection
in
the
real
estate
sector
contributed
to
relative
performance.
The
industrials
sector
was
pressured
by
an
off-benchmark
position
in
Proterra,
which
struggled
over
the
period
despite
major
developments.
The
commercial
electric
vehicle
(EV)
company
went
public
in
June
2021
after
merging
with
special
purpose
acquisition
company
(SPAC)
ArcLight
Clean
Transition,
which
focuses
on
EV
technology
for
commercial
Portfolio
Composition
4/30/22
%
of
Total
Net
Assets
Software
11.4%
Biotechnology
7.0%
IT
Services
6.6%
Specialty
Retail
6.1%
Semiconductors
&
Semiconductor
Equipment
5.7%
Hotels,
Restaurants
&
Leisure
5.7%
Health
Care
Equipment
&
Supplies
4.7%
Food
Products
3.9%
Aerospace
&
Defense
3.9%
Trading
Companies
&
Distributors
3.9%
Machinery
3.4%
Health
Care
Technology
3.3%
Capital
Markets
3.2%
Household
Durables
3.1%
Other*
25.2%
Short-Term
Investments
&
Other
Net
Assets
2.9%
1.
The
Russell
2000
Index
is
market
capitalization
weighted
and
measures
performance
of
the
2,000
smallest
companies
in
the
Russell
3000
Index,
which
represent
a
small
amount
of
the
total
market
capitalization
of
the
Russell
3000
Index.
2.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
37
.
Franklin
Small
Cap
Growth
Fund
11
franklintempleton.com
Annual
Report
vehicles.
Despite
lackluster
stock
performance,
we
believe
Proterra
is
well-positioned
to
benefit
from
the
electrification
of
commercial
vehicles
by
leveraging
its
position
as
a
leading
manufacturer
of
EV
transit
buses.
In
contrast,
Univar
Solutions
was
a
contributor
in
the
sector.
The
specialty
chemicals
distributor
continued
to
execute
well
and
benefit
from
a
number
of
tailwinds,
including
market
share
gains
in
all
regions,
price-to-cost
gains
and
ongoing
digital
transformation.
Three
of
the
Fund’s
largest
relative
detractors
hailed
from
the
health
care
sector—1Life
Healthcare,
NeoGenomics
and
Accolade.
1Life
Healthcare
is
the
parent
company
of
One
Medical,
a
chain
of
primary
health
care
clinics.
We
believe
its
share
price
weakness
has
been
due
to
the
company’s
high
valuation
and
some
profit-taking.
Overall,
in
our
view,
One
Medical
is
building
an
attractive
franchise
of
doctors
and
patients
in
desirable
markets.
COVID-19
pandemic
surges
reduced
patient
visits
to
oncologists
and
sales
team
access
to
doctors,
which
negatively
impacted
margins
for
cancer
diagnostics
company
NeoGenomics.
Accolade
provides
a
platform
of
health
care
technology-enabled
services.
Management
pushed
out
profitability
expectations
due
to
several
acquisitions
over
the
period,
disappointing
investors.
In
the
consumer
discretionary
sector,
Rent
the
Runway
(RENT)
is
an
e-commerce
platform
that
allows
users
to
rent,
subscribe
or
buy
designer
apparel
and
accessories.
Since
the
company
went
public
in
October
2021,
we
have
seen
stock
weakness
as
a
result
of
market
dynamics
and
the
company’s
unique
and
unproven
business
model.
The
business
of
re-commerce
and
fashion
rental
is
still
in
its
early
stages,
and
we
believe
RENT
is
a
leader
in
this
category
with
much
room
for
growth.
Conversely,
a
position
in
casino
operator
Red
Rock
Resorts,
whose
shares
rose
as
the
economy
reopened,
mostly
offset
the
relative
underperformance
experienced
by
RENT.
Turning
to
contributors,
SiTime
and
Datto
Holding
were
among
the
best
performers
in
the
information
technology
(IT)
sector.
SiTime
manufactures
timing
solutions
used
in
various
industries,
including
aerospace,
automotive
and
communications.
The
company
has
demonstrated
operating
leverage
well
ahead
of
market
expectations,
which
has
lifted
its
stock.
The
improving
macroeconomic
environment
has
benefited
cybersecurity
firm
Datto
as
data
backups
become
a
more
acute
concern
in
the
wake
of
high
profile
ransomware
attacks.
Shares
also
rallied
on
news
of
Datto’s
acquisition
by
an
IT
management
and
security
company
in
April
2022.
Industrial
property
company
Rexford
Industrial
Realty
was
a
top
contributor
in
the
real
estate
sector.
The
company
has
been
benefiting
from
an
increase
in
warehouse
demand
driven
by
e-commerce
expansion
and
supply
chain
shifts.
Thank
you
for
your
continued
participation
in
Franklin
Small
Cap
Growth
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Michael
P.
McCarthy,
CFA
Lead
Portfolio
Manager
Bradley
T.
Carris,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
4/30/22
Company
Industry
%
of
Total
Net
Assets
A
aa
Beacon
Roofing
Supply,
Inc.
2.0%
Trading
Companies
&
Distributors
Univar
Solutions,
Inc.
1.9%
Trading
Companies
&
Distributors
Rexford
Industrial
Realty,
Inc.
1.8%
Equity
Real
Estate
Investment
Trusts
(REITs)
Allegiant
Travel
Co.
1.8%
Airlines
Inspire
Medical
Systems,
Inc.
1.7%
Health
Care
Technology
Red
Rock
Resorts,
Inc.
1.6%
Hotels,
Restaurants
&
Leisure
Arcosa
,
Inc.
1.6%
Construction
&
Engineering
Performance
Food
Group
Co.
1.5%
Food
&
Staples
Retailing
Simply
Good
Foods
Co.
(The)
1.5%
Food
Products
Five
Below,
Inc.
1.5%
Specialty
Retail
Performance
Summary
as
of
April
30,
2022
Franklin
Small
Cap
Growth
Fund
12
franklintempleton.com
Annual
Report
The
performance
table
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4/30/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class
:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-29.53%
-33.41%
5-Year
+61.92%
+8.88%
10-Year
+181.98%
+10.29%
Advisor
1-Year
-29.34%
-29.34%
5-Year
+63.91%
+10.39%
10-Year
+189.35%
+11.21%
See
page
14
for
Performance
Summary
footnotes.
Franklin
Small
Cap
Growth
Fund
Performance
Summary
13
franklintempleton.com
Annual
Report
See
page
14
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Small
Cap
Growth
Fund
Performance
Summary
14
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Smaller,
midsized
and
relatively
new
or
unseasoned
companies
can
be
particularly
sensitive
to
changing
economic
conditions,
and
their
prospects
for
growth
are
less
certain
than
those
of
larger,
more
established
companies.
Historically,
these
securities
have
experienced
more
price
volatility
than
larger-company
stocks,
especially
over
the
short
term.
Growth
stock
prices
reflect
projections
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramatically
if
the
company
fails
to
meet
those
projections.
To
the
extent
the
Fund
focuses
on
particular
countries,
regions,
industries,
sectors
or
types
of
investment
from
time
to
time,
it
may
be
subject
to
greater
risks
of
adverse
developments
in
such
areas
of
focus
than
a
fund
that
invests
in
a
wider
variety
of
countries,
regions,
industries,
sectors
or
investments.
From
time
to
time,
the
trading
market
for
a
particular
security
or
type
of
secu-
rity
in
which
the
Fund
invests
may
become
less
liquid
or
even
illiquid.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
8/31/22.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Source:
Morningstar.
The
Russell
2000
Growth
Index
is
market
capitalization
weighted
and
measures
performance
of
those
Russell
2000
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
values.
The
S&P
500
is
a
market
capitalization-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
6.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$0.7315
$3.5343
$4.2658
C
$0.7315
$3.5343
$4.2658
R
$0.7315
$3.5343
$4.2658
R6
$0.7315
$3.5343
$4.2658
Advisor
$0.7315
$3.5343
$4.2658
Total
Annual
Operating
Expenses
6
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.03%
1.04%
Advisor
0.78%
0.79%
Your
Fund’s
Expenses
Franklin
Small
Cap
Growth
Fund
15
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$714.90
$4.39
$1,019.67
$5.18
1.03%
C
$1,000
$711.90
$7.57
$1,015.95
$
8.91
1.78%
R
$1,000
$714.00
$5.46
$1,018.43
$6.43
1.28%
R6
$1,000
$716.30
$2.77
$1,021.57
$3.26
0.65%
Advisor
$1,000
$716.00
$3.28
$1,020.97
$3.86
0.77%
16
franklintempleton.com
Annual
Report
Franklin
Small-Mid
Cap
Growth
Fund
This
annual
report
for
Franklin
Small-Mid
Cap
Growth
Fund
covers
the
fiscal
year
ended
April
30,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
growth.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
the
equity
securities
of
small-capitalization
(small-
cap)
and
mid-capitalization
(mid-cap)
companies.
For
this
Fund,
small-cap
companies
are
companies
within
the
market
capitalization
range
of
companies
in
the
Russell
2500™
Index,
at
the
time
of
purchase,
and
mid-cap
companies
are
companies
within
the
market
capitalization
range
of
companies
in
the
Russell
Midcap
®
Index,
at
the
time
of
purchase.
1
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-22.83%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
Russell
Midcap
®
Growth
Index,
which
measures
the
performance
of
those
Russell
Midcap
®
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
-16.73%
cumulative
total
return.
2
Also
in
comparison,
the
Standard
&
Poor’s
500
Index
(S&P
500),
which
tracks
the
broad
U.S.
stock
market,
posted
a
+0.21%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
18
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Investment
Strategy
We
use
fundamental,
bottom-up
research
to
seek
companies
meeting
our
criteria
of
growth
potential,
quality
and
valuation.
In
seeking
sustainable
growth
characteristics,
we
look
for
companies
we
believe
can
produce
sustainable
earnings
and
cash
flow
growth,
evaluating
the
long-term
market
opportunity
and
competitive
structure
of
an
industry.
We
define
quality
companies
as
those
with
strong
and
improving
competitive
positions
in
attractive
markets.
We
also
believe
important
attributes
of
quality
are
experienced
and
talented
management
teams
as
well
as
financial
strength
reflected
in
the
capital
structure,
gross
and
operating
margins,
free
cash
flow
generation
and
returns
on
capital
employed.
Our
valuation
analysis
includes
a
range
of
potential
outcomes
based
on
an
assessment
of
multiple
scenarios.
In
assessing
value,
we
consider
whether
security
prices
fully
reflect
the
balance
of
the
sustainable
growth
opportunities
relative
to
business
and
financial
risks.
*Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Manager’s
Discussion
For
the
12
months
under
review,
negative
relative
performance
for
Franklin
Small-Mid
Cap
Growth
Fund
was
driven
mainly
by
stock
selection
in
the
information
technology
(IT)
and
health
care
sectors.
In
contrast,
stock
selection
in
the
consumer
discretionary
and
real
estate
sectors
contributed
to
relative
returns.
Portfolio
Composition
4/30/22
%
of
Total
Net
Assets
Software
17.6%
Hotels,
Restaurants
&
Leisure
6.2%
Life
Sciences
Tools
&
Services
5.6%
Semiconductors
&
Semiconductor
Equipment
5.4%
Health
Care
Equipment
&
Supplies
5.1%
Specialty
Retail
4.4%
IT
Services
4.4%
Capital
Markets
3.7%
Professional
Services
3.1%
Electronic
Equipment,
Instruments
&
Components
2.9%
Equity
Real
Estate
Investment
Trusts
(REITs)
2.8%
Biotechnology
2.6%
Textiles,
Apparel
&
Luxury
Goods
2.6%
Road
&
Rail
2.5%
Other*
26.6%
Short-Term
Investments
&
Other
Net
Assets
4.5%
1.
The
Russell
2500
Index
is
market
capitalization
weighted
and
measures
performance
of
the
2,500
smallest
companies
in
the
Russell
3000
Index,
which
represent
a
modest
amount
of
the
Russell
3000
Index’s
total
market
capitalization.
The
Russell
Midcap
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
800
smallest
companies
in
the
Russell
1000
Index,
which
represent
a
modest
amount
of
the
Russell
1000
Index’s
total
market
capitalization.
2.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
48
.
Franklin
Small-Mid
Cap
Growth
Fund
17
franklintempleton.com
Annual
Report
Weakness
in
the
IT
sector
was
largely
driven
by
stock
selection
in
the
software
industry,
where
we
hold
Coupa
Software.
Coupa
is
a
global
technology
platform
for
business
spend
management
that
helps
companies
gain
visibility
into
how
money
and
resources
are
spent.
The
company
lowered
its
2023
full-year
guidance,
which
weighed
on
its
shares.
Our
underweighting
in
network
security
provider
Palo
Alto
Networks,
whose
shares
reached
an
all-time
high,
further
dampened
relative
returns.
In
contrast,
SiTime
and
Synopsys
were
top
contributors
in
the
IT
sector.
Semiconductor
company
SiTime
manufactures
timing
solutions
used
in
various
industries,
including
aerospace,
automotive
and
communications.
Pandemic-related
disruptions
to
production
and
supply
chain
issues
created
chip
shortages
and
increased
prices,
benefiting
chipmakers
such
as
SiTime
and,
in
turn,
Synopsys,
which
makes
software
for
chip
companies.
While
the
health
care
sector
pressured
relative
performance,
there
were
no
individual
holdings
among
the
Fund’s
five
biggest
detractors.
In
the
communication
services
sector,
Roku
is
a
leading
platform
for
video-streaming
services.
Decelerating
revenue
growth
and
supply-chain
issues
weighed
on
its
stock.
Despite
growing
inflationary
pressures,
the
consumer
discretionary
sector
was
a
leading
contributor
to
relative
performance
for
the
12-month
period.
Off-benchmark
positions
in
Fanatics
Holdings
and
Lucid
Group
were
top
contributors
in
this
space.
Licensed
sports
merchandiser
Fanatics
is
a
private
company
with
an
approximate
valuation
of
$27
billion.
Its
e-commerce
business
has
been
outperforming
expectations
and
delivering
outsized
growth
with
better
profits.
Our
multi-cap
mandate
permits
us
to
invest
early
in
emerging
businesses,
like
Fanatics,
which
allows
us
to
take
advantage
of
disruptive
trends
before
our
peers.
Lucid
started
production
and
delivery
of
its
luxury
sedans,
which
boosted
the
stock
of
the
electric
vehicle
manufacturer.
In
contrast,
the
reopening
of
casinos
has
pulled
some
focus
away
from
online
gambling,
which
pressured
the
shares
of
DraftKings.
Thank
you
for
your
continued
participation
in
Franklin
Small-
Mid
Cap
Growth
Fund.
We
look
forward
to
serving
your
future
investment
needs.
John
P.
Scandalios,
CFA
Lead
Portfolio
Manager
Michael
P.
McCarthy,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
4/30/22
Company
Industry
%
of
Total
Net
Assets
a
aa
Synopsys,
Inc.
2.5%
Software
Chipotle
Mexican
Grill,
Inc.
2.0%
Hotels,
Restaurants
&
Leisure
Palo
Alto
Networks,
Inc.
2.0%
Software
Lululemon
Athletica
,
Inc.
2.0%
Textiles,
Apparel
&
Luxury
Goods
IDEXX
Laboratories,
Inc.
1.9%
Health
Care
Equipment
&
Supplies
CoStar
Group,
Inc.
1.9%
Professional
Services
Fastenal
Co.
1.8%
Trading
Companies
&
Distributors
ANSYS,
Inc.
1.7%
Software
Old
Dominion
Freight
Line,
Inc.
1.6%
Road
&
Rail
Crowdstrike
Holdings,
Inc.
1.6%
Software
Performance
Summary
as
of
April
30,
2022
Franklin
Small-Mid
Cap
Growth
Fund
18
franklintempleton.com
Annual
Report
The
performance
table
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4/30/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-22.83%
-27.08%
5-Year
+79.52%
+11.15%
10-Year
+189.05%
+10.57%
Advisor
1-Year
-22.65%
-22.65%
5-Year
+81.73%
+12.69%
10-Year
+196.29%
+11.47%
See
page
20
for
Performance
Summary
footnotes.
Franklin
Small-Mid
Cap
Growth
Fund
Performance
Summary
19
franklintempleton.com
Annual
Report
See
page
20
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Small-Mid
Cap
Growth
Fund
Performance
Summary
20
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Growth
stock
prices
reflect
projections
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramatically
if
the
company
fails
to
meet
those
projections.
Smaller,
midsized
and
relatively
new
or
unseasoned
companies
can
be
particularly
sensitive
to
changing
economic
conditions,
and
their
prospects
for
growth
are
less
certain
than
those
of
larger,
more
established
companies.
Historically,
these
securities
have
experienced
more
price
volatility
than
larger-company
stocks,
especially
over
the
short
term.
To
the
extent
the
Fund
focuses
on
particular
countries,
regions,
industries,
sectors
or
types
of
investment
from
time
to
time,
it
may
be
subject
to
greater
risks
of
adverse
developments
in
such
areas
of
focus
than
a
fund
that
invests
in
a
wider
variety
of
countries,
regions,
industries,
sectors
or
investments.
From
time
to
time,
the
trading
market
for
a
particular
security
or
type
of
security
in
which
the
Fund
invests
may
become
less
liquid
or
even
illiquid.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
8/31/22.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Source:
Morningstar.
The
Russell
Midcap
Growth
Index
is
market
capitalization
weighted
and
measures
performance
of
those
Russell
Midcap
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
values.
The
S&P
500
is
a
market
capitalization-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
6.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$1.2801
$5.6398
$6.9199
C
$1.2801
$5.6398
$6.9199
R
$1.2801
$5.6398
$6.9199
R6
$1.2801
$5.6398
$6.9199
Advisor
$1.2801
$5.6398
$6.9199
Total
Annual
Operating
Expenses
6
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.86%
0.87%
Advisor
0.61%
0.62%
Your
Fund’s
Expenses
Franklin
Small-Mid
Cap
Growth
Fund
21
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$698.60
$3.55
$1,020.62
$4.22
0.84%
C
$1,000
$695.80
$6.70
$1,016.89
$7.97
1.59%
R
$1,000
$698.00
$4.60
$1,019.38
$5.47
1.09%
R6
$1,000
$699.80
$2.15
$1,022.27
$2.56
0.51%
Advisor
$1,000
$699.40
$2.49
$1,021.86
$2.97
0.59%
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$56.25
$39.60
$39.57
$38.58
$34.81
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.28)
(0.26)
(0.14)
(0.13)
(0.10)
Net
realized
and
unrealized
gains
(losses)
...........
(7.76)
20.03
3.59
5.29
7.03
Total
from
investment
operations
....................
(8.04)
19.77
3.45
5.16
6.93
Less
distributions
from:
Net
realized
gains
.............................
(5.07)
(3.12)
(3.42)
(4.17)
(3.16)
Net
asset
value,
end
of
year
.......................
$43.14
$56.25
$39.60
$39.57
$38.58
Total
return
c
...................................
(16.57)%
50.64%
8.90%
15.91%
20.43%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.90%
0.91%
0.95%
0.94%
1.02%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.89%
0.91%
e
0.95%
e
0.94%
e
0.99%
Net
investment
(loss)
............................
(0.49)%
(0.51)%
(0.35)%
(0.32)%
(0.27)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$3,215,834
$4,203,693
$2,883,392
$2,819,007
$2,428,175
Portfolio
turnover
rate
............................
17.20%
17.54%
19.47%
24.21%
22.68%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$43.87
$31.61
$32.47
$32.67
$30.12
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.54)
(0.50)
(0.35)
(0.35)
(0.33)
Net
realized
and
unrealized
gains
(losses)
...........
(5.71)
15.88
2.91
4.32
6.04
Total
from
investment
operations
....................
(6.25)
15.38
2.56
3.97
5.71
Less
distributions
from:
Net
realized
gains
.............................
(5.07)
(3.12)
(3.42)
(4.17)
(3.16)
Net
asset
value,
end
of
year
.......................
$32.55
$43.87
$31.61
$32.47
$32.67
Total
return
c
...................................
(17.20)%
49.47%
8.10%
15.10%
19.53%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.65%
1.66%
1.70%
1.69%
1.77%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.64%
1.66%
e
1.70%
e
1.69%
e
1.74%
Net
investment
(loss)
............................
(1.23)%
(1.26)%
(1.10)%
(1.07)%
(1.02)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$158,895
$278,804
$216,757
$244,574
$400,295
Portfolio
turnover
rate
............................
17.20%
17.54%
19.47%
24.21%
22.68%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$52.69
$37.32
$37.57
$36.93
$33.52
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.39)
(0.36)
(0.22)
(0.21)
(0.18)
Net
realized
and
unrealized
gains
(losses)
...........
(7.17)
18.85
3.39
5.02
6.75
Total
from
investment
operations
....................
(7.56)
18.49
3.17
4.81
6.57
Less
distributions
from:
Net
realized
gains
.............................
(5.07)
(3.12)
(3.42)
(4.17)
(3.16)
Net
asset
value,
end
of
year
.......................
$40.06
$52.69
$37.32
$37.57
$36.93
Total
return
....................................
(16.79)%
50.26%
8.64%
15.66%
20.14%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.15%
1.15%
1.20%
1.19%
1.27%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
1.14%
1.15%
d
1.20%
d
1.19%
d
1.24%
Net
investment
(loss)
............................
(0.73)%
(0.75)%
(0.60)%
(0.57)%
(0.52)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$27,009
$40,396
$31,060
$37,105
$36,582
Portfolio
turnover
rate
............................
17.20%
17.54%
19.47%
24.21%
22.68%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
In
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$63.06
$43.97
$43.42
$41.78
$37.30
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
....................
(0.10)
(0.10)
0.01
0.01
0.07
Net
realized
and
unrealized
gains
(losses)
...........
(8.91)
22.31
3.96
5.80
7.57
Total
from
investment
operations
....................
(9.01)
22.21
3.97
5.81
7.64
Less
distributions
from:
Net
realized
gains
.............................
(5.07)
(3.12)
(3.42)
(4.17)
(3.16)
Net
asset
value,
end
of
year
.......................
$48.98
$63.06
$43.97
$43.42
$41.78
Total
return
....................................
(16.32)%
51.13%
9.34%
16.26%
20.98%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.57%
0.57%
0.59%
0.59%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.57%
d
0.57%
d
0.59%
d
0.58%
0.55%
Net
investment
income
(loss)
......................
(0.16)%
(0.17)%
0.01%
0.04%
0.17%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$461,475
$563,918
$383,208
$418,174
$369,688
Portfolio
turnover
rate
............................
17.20%
17.54%
19.47%
24.21%
22.68%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$62.01
$43.31
$42.87
$41.34
$37.02
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.15)
(0.14)
(0.04)
(0.03)
(0.01)
Net
realized
and
unrealized
gains
(losses)
...........
(8.72)
21.96
3.90
5.73
7.49
Total
from
investment
operations
....................
(8.87)
21.82
3.86
5.70
7.48
Less
distributions
from:
Net
realized
gains
.............................
(5.07)
(3.12)
(3.42)
(4.17)
(3.16)
Net
asset
value,
end
of
year
.......................
$48.07
$62.01
$43.31
$42.87
$41.34
Total
return
....................................
(16.37)%
51.01%
9.20%
16.16%
20.71%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.65%
0.66%
0.70%
0.69%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.64%
0.66%
d
0.70%
d
0.69%
d
0.74%
Net
investment
(loss)
............................
(0.24)%
(0.26)%
(0.10)%
(0.07)%
(0.02)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$636,524
$643,449
$467,727
$506,964
$583,509
Portfolio
turnover
rate
............................
17.20%
17.54%
19.47%
24.21%
22.68%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Growth
Opportunities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
96.0%
Airlines
0.4%
a
Wheels
Up
Experience,
Inc.
.............................
United
States
5,815,191
$
17,736,333
Auto
Components
0.4%
a
Aptiv
plc
............................................
United
States
189,736
20,187,911
Automobiles
2.0%
a
Lucid
Group,
Inc.
.....................................
United
States
1,003,521
18,143,660
a,b
Rivian
Automotive,
Inc.,
A
...............................
United
States
878,250
26,558,280
a
Tesla,
Inc.
...........................................
United
States
52,760
45,941,297
90,643,237
Beverages
1.5%
Constellation
Brands,
Inc.,
A
.............................
United
States
111,555
27,452,570
a
Monster
Beverage
Corp.
................................
United
States
484,498
41,511,789
68,964,359
Biotechnology
0.2%
a
Heron
Therapeutics,
Inc.
................................
United
States
2,051,293
9,271,844
Capital
Markets
4.2%
Intercontinental
Exchange,
Inc.
...........................
United
States
244,409
28,305,006
MSCI,
Inc.
...........................................
United
States
195,664
82,423,460
S&P
Global,
Inc.
......................................
United
States
185,168
69,715,752
a
TPG
Pace
Beneficial
II
Corp.,
A
...........................
United
States
662,600
6,500,106
186,944,324
Chemicals
1.1%
Linde
plc
............................................
United
Kingdom
154,034
48,052,447
Commercial
Services
&
Supplies
0.6%
a,c,d
Celonis
SE
..........................................
Germany
16,669
6,164,029
Republic
Services,
Inc.
.................................
United
States
155,729
20,909,733
27,073,762
Electric
Utilities
0.5%
NextEra
Energy,
Inc.
...................................
United
States
330,182
23,449,526
Entertainment
0.5%
a
Walt
Disney
Co.
(The)
..................................
United
States
187,983
20,984,542
Equity
Real
Estate
Investment
Trusts
(REITs)
2.9%
SBA
Communications
Corp.
.............................
United
States
382,862
132,895,229
Food
Products
0.4%
a
Freshpet
,
Inc.
........................................
United
States
204,131
19,055,629
Health
Care
Equipment
&
Supplies
5.0%
a
Edwards
Lifesciences
Corp.
.............................
United
States
536,231
56,722,515
a
Figs,
Inc.,
A
..........................................
United
States
2,616,894
40,980,560
a
IDEXX
Laboratories,
Inc.
................................
United
States
96,743
41,645,927
a,c,d
IL
MAKIAGE
Cosmetics
(2013)
Ltd.
........................
Israel
18,867
14,889,942
a
Intuitive
Surgical,
Inc.
..................................
United
States
239,025
57,198,682
a
Nevro
Corp.
.........................................
United
States
254,117
15,676,478
227,114,104
Health
Care
Providers
&
Services
3.2%
a
Guardant
Health,
Inc.
..................................
United
States
464,950
28,687,415
UnitedHealth
Group,
Inc.
................................
United
States
230,782
117,364,186
146,051,601
Health
Care
Technology
1.1%
a
Veeva
Systems,
Inc.,
A
.................................
United
States
262,456
47,753,869
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Hotels,
Restaurants
&
Leisure
2.6%
a
Chipotle
Mexican
Grill,
Inc.
..............................
United
States
42,142
$
61,342,317
a,b
Dutch
Bros,
Inc.,
A
....................................
United
States
462,699
22,103,131
a,c,d
Sweetgreen
,
Inc.
......................................
United
States
1,123,900
29,918,137
a,b
Sweetgreen
,
Inc.,
A
....................................
United
States
61,300
1,655,100
115,018,685
Industrial
Conglomerates
1.7%
Honeywell
International,
Inc.
.............................
United
States
158,245
30,621,990
Roper
Technologies,
Inc.
................................
United
States
100,820
47,377,334
77,999,324
Interactive
Media
&
Services
4.7%
a
Alphabet,
Inc.,
C
......................................
United
States
63,961
147,067,446
a
Meta
Platforms,
Inc.,
A
.................................
United
States
243,305
48,775,353
a
ZoomInfo
Technologies,
Inc.,
A
...........................
United
States
296,674
14,062,348
209,905,147
Internet
&
Direct
Marketing
Retail
7.4%
a
Amazon.com,
Inc.
.....................................
United
States
133,392
331,563,157
IT
Services
9.1%
a,c,d
Canva
,
Inc.
..........................................
Australia
11,829
8,371,768
a
Cloudflare
,
Inc.,
A
.....................................
United
States
186,639
16,077,083
a
Marqeta
,
Inc.,
A
.......................................
United
States
1,615,775
15,026,707
Mastercard
,
Inc.,
A
....................................
United
States
596,979
216,930,229
a
Okta
,
Inc.
...........................................
United
States
159,012
18,971,722
a
Shopify,
Inc.,
A
.......................................
Canada
35,967
15,351,435
a
Snowflake,
Inc.,
A
.....................................
United
States
109,874
18,836,799
a
Twilio
,
Inc.,
A
.........................................
United
States
171,086
19,130,837
Visa,
Inc.,
A
..........................................
United
States
382,309
81,481,517
410,178,097
Leisure
Products
1.5%
a,c,d
Fanatics
Holdings,
Inc.
.................................
United
States
1,029,939
68,576,928
Life
Sciences
Tools
&
Services
5.1%
Danaher
Corp.
.......................................
United
States
411,046
103,225,982
a
Illumina,
Inc.
.........................................
United
States
112,122
33,260,991
West
Pharmaceutical
Services,
Inc.
........................
United
States
291,844
91,948,371
228,435,344
Machinery
0.6%
a,b
Proterra
,
Inc.
.........................................
United
States
4,097,649
25,446,400
Pharmaceuticals
2.2%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
996,117
66,142,169
a
Catalent
,
Inc.
........................................
United
States
361,397
32,728,112
98,870,281
Professional
Services
2.6%
a
CoStar
Group,
Inc.
....................................
United
States
1,105,914
70,358,249
a,b
Legalzoom.com,
Inc.
...................................
United
States
1,673,284
24,011,625
TransUnion
..........................................
United
States
242,809
21,250,644
115,620,518
Road
&
Rail
2.0%
a
Uber
Technologies,
Inc.
.................................
United
States
767,343
24,155,958
Union
Pacific
Corp.
....................................
United
States
278,442
65,236,176
89,392,134
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
6.0%
Analog
Devices,
Inc.
...................................
United
States
245,931
$
37,966,828
ASML
Holding
NV,
NYRS
...............................
Netherlands
39,973
22,535,578
a,b
GLOBALFOUNDRIES,
Inc.
..............................
United
States
270,998
14,170,485
Monolithic
Power
Systems,
Inc.
...........................
United
States
160,258
62,859,598
NVIDIA
Corp.
........................................
United
States
719,580
133,460,503
270,992,992
Software
19.8%
a
Adobe,
Inc.
..........................................
United
States
182,269
72,169,411
a
Atlassian
Corp.
plc,
A
..................................
United
States
97,749
21,976,908
a
Bill.com
Holdings,
Inc.
..................................
United
States
494,493
84,414,900
a
Confluent,
Inc.,
A
......................................
United
States
750,190
23,435,936
a
Crowdstrike
Holdings,
Inc.,
A
.............................
United
States
108,678
21,600,839
a,b
Gitlab
,
Inc.,
A
........................................
United
States
229,994
11,023,612
a,c,d
HashiCorp
,
Inc.
.......................................
United
States
415,102
17,832,356
a
HashiCorp
,
Inc.,
A
.....................................
United
States
182,315
8,583,390
Intuit,
Inc.
...........................................
United
States
194,652
81,510,525
Microsoft
Corp.
.......................................
United
States
804,266
223,199,900
a,b
Monday.com
Ltd.
......................................
United
States
151,938
19,660,777
a
Paycom
Software,
Inc.
.................................
United
States
83,277
23,439,977
a
Salesforce,
Inc.
.......................................
United
States
243,417
42,826,787
a
ServiceNow
,
Inc.
......................................
United
States
259,633
124,130,537
a
Synopsys,
Inc.
.......................................
United
States
168,634
48,362,545
a
Tyler
Technologies,
Inc.
.................................
United
States
60,783
23,991,658
a
Workday,
Inc.,
A
......................................
United
States
209,710
43,347,057
891,507,115
Technology
Hardware,
Storage
&
Peripherals
5.6%
Apple,
Inc.
..........................................
United
States
1,589,838
250,637,961
Textiles,
Apparel
&
Luxury
Goods
1.1%
NIKE,
Inc.,
B
.........................................
United
States
388,186
48,406,794
Total
Common
Stocks
(Cost
$1,940,737,105)
....................................
4,318,729,594
Convertible
Preferred
Stocks
1.0%
Software
1.0%
a,c,d
Databricks
,
Inc.,
G
....................................
United
States
112,760
15,542,652
a,c,d
Lacework,
Inc.,
D
.....................................
United
States
810,440
17,711,833
a,c,d
OneTrust
LLC,
C
......................................
United
States
517,056
10,139,623
43,394,108
Total
Convertible
Preferred
Stocks
(Cost
$50,470,099)
...........................
43,394,108
Preferred
Stocks
1.4%
Commercial
Services
&
Supplies
0.2%
a,c,d,e
Optoro
,
Inc.,
E
.......................................
United
States
556,026
9,587,680
a
Health
Care
Providers
&
Services
0.5%
a,c,d
Tempus
Labs,
Inc.,
F
...................................
United
States
504,854
17,452,358
a,c,d
Tempus
Labs,
Inc.,
G
..................................
United
States
126,131
4,360,238
21,812,596
Software
0.7%
a,c,d,e
ClearMotion
,
Inc.,
C
...................................
United
States
2,610,594
245,393
a,c,d,e
ClearMotion
,
Inc.,
D
...................................
United
States
3,698,772
379,231
a,c,d,e
Talkdesk
,
Inc.,
C
......................................
United
States
1,753,060
26,669,323
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Preferred
Stocks
(continued)
Software
(continued)
a,c,d
Tanium,
Inc.,
G
.......................................
United
States
805,800
$
6,236,566
33,530,513
Total
Preferred
Stocks
(Cost
$59,298,189)
......................................
64,930,789
Warrants
Warrants
0.0%
Software
0.0%
a,c,d,e
ClearMotion
,
Inc.,
2/01/49
...............................
United
States
125,750
—
Total
Warrants
(Cost
$–)
......................................................
—
Principal
Amount
*
Corporate
Bonds
0.0%
†
c,d,e
ClearMotion
,
Inc.
,
7
%
,
12/21/22
...........................
United
States
251,500
301,800
Total
Corporate
Bonds
(Cost
$251,500)
........................................
301,800
Shares
a
Escrows
and
Litigation
Trusts
0.0%
a,c
Proterra
,
Inc.,
Escrow
Account
...........................
United
States
382,355
—
a,c
Wheels
Up
Experience,
Inc.,
Escrow
Account
................
United
States
102,780
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$2,050,756,893)
.............................
4,427,356,291
a
Short
Term
Investments
3.7%
a
a
Country
Shares
a
Value
a
a
Money
Market
Funds
1.5%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
66,393,267
66,393,267
Total
Money
Market
Funds
(Cost
$66,393,267)
..................................
66,393,267
a
a
a
a
h
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
2.2%
Money
Market
Funds
2.2%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
98,247,070
98,247,070
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$98,247,070)
...........................................................
98,247,070
Total
Short
Term
Investments
(Cost
$164,640,337
)
...............................
164,640,337
a
Total
Investments
(Cost
$2,215,397,230)
102.1%
................................
$4,591,996,628
Other
Assets,
less
Liabilities
(2.1)%
...........................................
(92,259,638)
Net
Assets
100.0%
...........................................................
$4,499,736,990
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
See
Abbreviations
on
page
85
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
April
30,
2022.
See
Note
1(c).
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
d
See
Note
9
regarding
restricted
securities.
e
See
Note
10
regarding
holdings
of
5%
voting
securities.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
h
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$30.08
$18.85
$21.46
$23.01
$19.60
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.14)
(0.18)
(0.11)
(0.15)
(0.13)
Net
realized
and
unrealized
gains
(losses)
...........
(7.89)
14.24
(1.07)
2.86
3.96
Total
from
investment
operations
....................
(8.03)
14.06
(1.18)
2.71
3.83
Less
distributions
from:
Net
realized
gains
.............................
(4.27)
(2.83)
(1.43)
(4.26)
(0.42)
Net
asset
value,
end
of
year
.......................
$17.78
$30.08
$18.85
$21.46
$23.01
Total
return
c
...................................
(29.53)%
76.43%
(6.25)%
16.06%
19.71%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.03%
1.03%
1.07%
1.07%
1.11%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.03%
e
1.02%
1.06%
1.06%
1.10%
Net
investment
(loss)
............................
(0.54)%
(0.69)%
(0.51)%
(0.68)%
(0.61)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$860,536
$1,244,591
$686,791
$713,442
$665,251
Portfolio
turnover
rate
............................
30.88%
47.80%
35.29%
42.10%
29.82%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$22.57
$14.69
$17.15
$19.41
$16.71
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.25)
(0.29)
(0.21)
(0.28)
(0.25)
Net
realized
and
unrealized
gains
(losses)
...........
(5.68)
11.00
(0.82)
2.28
3.37
Total
from
investment
operations
....................
(5.93)
10.71
(1.03)
2.00
3.12
Less
distributions
from:
Net
realized
gains
.............................
(4.27)
(2.83)
(1.43)
(4.26)
(0.42)
Net
asset
value,
end
of
year
.......................
$12.37
$22.57
$14.69
$17.15
$19.41
Total
return
c
...................................
(30.07)%
75.13%
(6.97)%
15.31%
18.79%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.78%
1.78%
1.82%
1.82%
1.86%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.78%
e
1.77%
1.81%
1.81%
1.85%
Net
investment
(loss)
............................
(1.31)%
(1.43)%
(1.26)%
(1.43)%
(1.36)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$32,755
$86,394
$66,269
$90,513
$132,116
Portfolio
turnover
rate
............................
30.88%
47.80%
35.29%
42.10%
29.82%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$27.76
$17.58
$20.15
$21.93
$18.74
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.19)
(0.23)
(0.15)
(0.20)
(0.17)
Net
realized
and
unrealized
gains
(losses)
...........
(7.20)
13.24
(0.99)
2.68
3.78
Total
from
investment
operations
....................
(7.39)
13.01
(1.14)
2.48
3.61
Less
distributions
from:
Net
realized
gains
.............................
(4.27)
(2.83)
(1.43)
(4.26)
(0.42)
Net
asset
value,
end
of
year
.......................
$16.10
$27.76
$17.58
$20.15
$21.93
Total
return
....................................
(29.71)%
75.96%
(6.47)%
15.78%
19.37%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.28%
1.28%
1.32%
1.32%
1.36%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
1.28%
d
1.27%
1.31%
1.31%
1.35%
Net
investment
(loss)
............................
(0.79)%
(0.93)%
(0.76)%
(0.93)%
(0.86)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$50,324
$79,314
$54,369
$74,634
$71,398
Portfolio
turnover
rate
............................
30.88%
47.80%
35.29%
42.10%
29.82%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$34.14
$21.07
$23.73
$24.88
$21.06
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.04)
(0.09)
(0.02)
(0.07)
(0.03)
Net
realized
and
unrealized
gains
(losses)
...........
(9.10)
15.99
(1.21)
3.18
4.27
Total
from
investment
operations
....................
(9.14)
15.90
(1.23)
3.11
4.24
Less
distributions
from:
Net
realized
gains
.............................
(4.27)
(2.83)
(1.43)
(4.26)
(0.42)
Net
asset
value,
end
of
year
.......................
$20.73
$34.14
$21.07
$23.73
$24.88
Total
return
....................................
(29.26)%
77.13%
(5.86)%
16.50%
20.23%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.65%
0.65%
0.67%
0.67%
0.65%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.64%
0.64%
0.64%
0.64%
0.63%
Net
investment
(loss)
............................
(0.15)%
(0.31)%
(0.09)%
(0.26)%
(0.14)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,529,170
$2,149,795
$1,136,759
$1,084,442
$935,509
Portfolio
turnover
rate
............................
30.88%
47.80%
35.29%
42.10%
29.82%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$33.43
$20.70
$23.37
$24.61
$20.88
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.08)
(0.13)
(0.06)
(0.10)
(0.08)
Net
realized
and
unrealized
gains
(losses)
...........
(8.89)
15.69
(1.18)
3.12
4.23
Total
from
investment
operations
....................
(8.97)
15.56
(1.24)
3.02
4.15
Less
distributions
from:
Net
realized
gains
.............................
(4.27)
(2.83)
(1.43)
(4.26)
(0.42)
Net
asset
value,
end
of
year
.......................
$20.19
$33.43
$20.70
$23.37
$24.61
Total
return
....................................
(29.34)%
76.86%
(5.99)%
16.30%
19.97%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.78%
0.78%
0.82%
0.82%
0.86%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.77%
0.77%
0.81%
0.81%
0.85%
Net
investment
(loss)
............................
(0.29)%
(0.44)%
(0.26)%
(0.43)%
(0.36)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$433,191
$739,985
$428,155
$725,622
$713,135
Portfolio
turnover
rate
............................
30.88%
47.80%
35.29%
42.10%
29.82%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Small
Cap
Growth
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
94.3%
Aerospace
&
Defense
3.9%
a
AAR
Corp.
..........................................
United
States
805,100
$
37,823,598
a
Axon
Enterprise,
Inc.
...................................
United
States
123,700
13,879,140
BWX
Technologies,
Inc.
................................
United
States
800,600
41,567,152
a
Kratos
Defense
&
Security
Solutions,
Inc.
...................
United
States
1,294,964
19,644,604
112,914,494
Airlines
2.2%
a
Allegiant
Travel
Co.
....................................
United
States
337,748
52,415,112
a
Wheels
Up
Experience,
Inc.
.............................
United
States
3,984,449
12,152,570
64,567,682
Banks
2.4%
Pinnacle
Financial
Partners,
Inc.
..........................
United
States
441,004
34,199,860
Western
Alliance
Bancorp
...............................
United
States
479,400
36,487,134
70,686,994
Biotechnology
7.0%
a
Alector
,
Inc.
..........................................
United
States
574,200
5,512,320
a
Arcutis
Biotherapeutics
,
Inc.
.............................
United
States
354,000
7,147,260
a
Ascendis
Pharma
A/S,
ADR
.............................
Denmark
214,600
19,586,542
a,b
Cullinan
Oncology,
Inc.
.................................
United
States
422,200
4,141,782
a
Cytokinetics,
Inc.
......................................
United
States
317,000
12,638,790
a,b
Day
One
Biopharmaceuticals,
Inc.
.........................
United
States
674,822
5,749,483
a
Dyne
Therapeutics,
Inc.
................................
United
States
623,500
4,975,530
a
Global
Blood
Therapeutics,
Inc.
...........................
United
States
475,400
14,594,780
a
Heron
Therapeutics,
Inc.
................................
United
States
1,775,508
8,025,296
a
Insmed
,
Inc.
.........................................
United
States
1,086,100
23,861,617
a
Intellia
Therapeutics,
Inc.
................................
United
States
114,900
5,633,547
a
Iovance
Biotherapeutics
,
Inc.
.............................
United
States
1,165,300
17,654,295
a
Karuna
Therapeutics,
Inc.
...............................
United
States
107,900
12,026,534
a
Kura
Oncology,
Inc.
....................................
United
States
564,700
8,103,445
a
Mirati
Therapeutics,
Inc.
................................
United
States
179,000
11,060,410
a
PTC
Therapeutics,
Inc.
.................................
United
States
973,400
34,390,222
a
Sutro
Biopharma,
Inc.
..................................
United
States
956,549
5,748,860
a
Twist
Bioscience
Corp.
.................................
United
States
118,362
3,413,560
204,264,273
Building
Products
0.9%
a
Masonite
International
Corp.
.............................
United
States
325,400
25,225,008
Capital
Markets
3.2%
Bridge
Investment
Group
Holdings,
Inc.,
A
...................
United
States
1,393,300
26,166,174
Evercore
,
Inc.,
A
......................................
United
States
284,100
30,043,575
Houlihan
Lokey
,
Inc.
...................................
United
States
453,300
37,755,357
93,965,106
Communications
Equipment
0.9%
a
Viavi
Solutions,
Inc.
....................................
United
States
1,730,300
24,812,502
Construction
&
Engineering
2.4%
Arcosa
,
Inc.
.........................................
United
States
858,000
45,928,740
Granite
Construction,
Inc.
...............................
United
States
798,243
23,667,905
69,596,645
Diversified
Consumer
Services
0.6%
a,c
Nerdy,
Inc.
..........................................
United
States
4,362,000
16,226,640
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Electronic
Equipment,
Instruments
&
Components
1.0%
Vontier
Corp.
.........................................
United
States
1,077,800
$
27,613,236
Equity
Real
Estate
Investment
Trusts
(REITs)
2.8%
Pebblebrook
Hotel
Trust
................................
United
States
1,160,400
28,336,968
Rexford
Industrial
Realty,
Inc.
............................
United
States
679,700
53,043,788
81,380,756
Food
&
Staples
Retailing
1.5%
a
Performance
Food
Group
Co.
............................
United
States
897,900
44,221,575
Food
Products
3.9%
a
Freshpet
,
Inc.
........................................
United
States
391,800
36,574,530
a
Hostess
Brands,
Inc.
...................................
United
States
661,874
15,017,921
a
Nomad
Foods
Ltd.
....................................
United
Kingdom
930,600
17,178,876
a
Simply
Good
Foods
Co.
(The)
............................
United
States
1,059,900
44,144,835
112,916,162
Health
Care
Equipment
&
Supplies
4.7%
a
CryoPort
,
Inc.
........................................
United
States
154,600
3,487,776
a
Figs,
Inc.,
A
..........................................
United
States
1,373,900
21,515,274
a
Haemonetics
Corp.
....................................
United
States
382,100
19,361,007
a
Inari
Medical,
Inc.
.....................................
United
States
182,400
14,719,680
a
Integer
Holdings
Corp.
.................................
United
States
521,400
39,193,638
a
Neogen
Corp.
........................................
United
States
330,932
8,736,605
a
Nevro
Corp.
.........................................
United
States
282,700
17,439,763
a
Pulmonx
Corp.
.......................................
United
States
492,416
11,867,225
136,320,968
Health
Care
Providers
&
Services
2.9%
a
1Life
Healthcare,
Inc.
..................................
United
States
1,193,600
8,414,880
a
HealthEquity
,
Inc.
.....................................
United
States
686,816
42,802,373
a
Hims
&
Hers
Health,
Inc.
................................
United
States
1,676,147
7,056,579
a
Privia
Health
Group,
Inc.
................................
United
States
1,170,700
25,743,693
84,017,525
Health
Care
Technology
3.3%
a
Certara
,
Inc.
.........................................
United
States
978,800
17,960,980
a
Inspire
Medical
Systems,
Inc.
............................
United
States
240,744
49,535,486
a
Phreesia
,
Inc.
........................................
United
States
1,254,682
28,707,124
96,203,590
Hotels,
Restaurants
&
Leisure
5.7%
a,b
Dutch
Bros,
Inc.,
A
....................................
United
States
278,400
13,299,168
a,b
Portillo's,
Inc.,
A
......................................
United
States
967,300
20,148,859
Red
Rock
Resorts,
Inc.,
A
...............................
United
States
1,047,600
46,052,496
a,d,e
Sweetgreen
,
Inc.
......................................
United
States
564,839
15,035,973
a,b
Sweetgreen
,
Inc.,
A
....................................
United
States
227,700
6,147,900
Texas
Roadhouse,
Inc.
.................................
United
States
428,100
35,245,473
a,b
Vacasa
,
Inc.,
A
.......................................
United
States
1,805,927
13,183,267
Wingstop
,
Inc.
........................................
United
States
182,413
16,738,217
165,851,353
Household
Durables
3.1%
a
M/I
Homes,
Inc.
.......................................
United
States
883,246
39,110,133
a
Sonos
,
Inc.
..........................................
United
States
698,000
15,928,360
a
Tri
Pointe
Homes,
Inc.
..................................
United
States
1,670,300
34,525,101
89,563,594
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
39
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Internet
&
Direct
Marketing
Retail
0.5%
a,b
Rent
the
Runway,
Inc.,
A
................................
United
States
2,466,458
$
15,637,344
IT
Services
6.6%
a
BigCommerce
Holdings,
Inc.,
1
...........................
United
States
1,144,200
20,446,854
a
Cantaloupe,
Inc.
......................................
United
States
929,265
5,083,080
a
Flywire
Corp.
........................................
United
States
1,014,958
30,966,369
a
LiveRamp
Holdings,
Inc.
................................
United
States
988,200
30,950,424
a
Marqeta
,
Inc.,
A
.......................................
United
States
2,213,715
20,587,549
a,c
Paymentus
Holdings,
Inc.,
A
.............................
United
States
1,667,900
27,620,424
a
Repay
Holdings
Corp.
..................................
United
States
1,100,500
14,724,690
a
Shift4
Payments,
Inc.,
A
................................
United
States
773,000
40,551,580
190,930,970
Life
Sciences
Tools
&
Services
0.5%
a,b
Codex
DNA,
Inc.
......................................
United
States
913,758
3,380,905
a
NeoGenomics
,
Inc.
....................................
United
States
1,254,900
11,858,805
15,239,710
Machinery
3.4%
Kennametal,
Inc.
......................................
United
States
1,256,200
32,322,026
a
Proterra
,
Inc.
.........................................
United
States
4,668,643
28,992,273
a
RBC
Bearings,
Inc.
....................................
United
States
223,400
37,609,390
98,923,689
Personal
Products
0.9%
a
BellRing
Brands,
Inc.
...................................
United
States
1,261,200
27,027,516
Pharmaceuticals
2.0%
a,c
EyePoint
Pharmaceuticals,
Inc.
...........................
United
States
1,725,700
19,500,410
a
Intra-Cellular
Therapies,
Inc.
.............................
United
States
335,200
16,964,472
a
Reata
Pharmaceuticals,
Inc.,
A
...........................
United
States
237,074
6,016,938
a
Revance
Therapeutics,
Inc.
..............................
United
States
971,692
15,916,315
58,398,135
Professional
Services
1.0%
a
Legalzoom.com,
Inc.
...................................
United
States
2,009,280
28,833,168
Semiconductors
&
Semiconductor
Equipment
5.7%
a
Allegro
MicroSystems
,
Inc.
..............................
Japan
555,500
13,504,205
a
Lattice
Semiconductor
Corp.
.............................
United
States
709,300
34,074,772
a
Onto
Innovation,
Inc.
...................................
United
States
545,309
38,793,282
a
Semtech
Corp.
.......................................
United
States
589,400
35,128,240
a
Silicon
Laboratories,
Inc.
................................
United
States
95,200
12,843,432
a
SiTime
Corp.
.........................................
United
States
187,412
31,592,041
165,935,972
Software
10.0%
a
Alkami
Technology,
Inc.
.................................
United
States
480,750
6,297,825
a
Alteryx
,
Inc.,
A
........................................
United
States
234,700
15,067,740
a
Avalara,
Inc.
.........................................
United
States
247,646
18,838,431
a
AvePoint
,
Inc.
........................................
United
States
2,100,700
10,293,430
a
BTRS
Holdings,
Inc.,
1
.................................
United
States
2,103,900
14,138,208
a
CS
Disco,
Inc.
........................................
United
States
955,820
29,353,232
a
Datto
Holding
Corp.
...................................
United
States
905,162
31,409,122
a
Duck
Creek
Technologies,
Inc.
...........................
United
States
1,618,869
25,788,583
a
Envestnet
,
Inc.
.......................................
United
States
395,922
31,531,228
a,b
Freshworks
,
Inc.,
A
....................................
United
States
1,487,800
27,033,326
a,b
Monday.com
Ltd.
......................................
United
States
215,800
27,924,520
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
(continued)
a,b
Paycor
HCM,
Inc.
.....................................
United
States
1,596,400
$
39,319,332
a
Q2
Holdings,
Inc.
.....................................
United
States
274,400
14,194,712
291,189,689
Specialty
Retail
5.7%
American
Eagle
Outfitters,
Inc.
...........................
United
States
2,219,700
33,539,667
a
Boot
Barn
Holdings,
Inc.
................................
United
States
280,460
25,258,228
a
Five
Below,
Inc.
.......................................
United
States
277,200
43,548,120
Lithia
Motors,
Inc.,
A
...................................
United
States
44,726
12,663,272
a,b
MYT
Netherlands
Parent
BV,
ADR
.........................
Germany
1,045,400
12,482,076
a,b
Petco
Health
&
Wellness
Co.,
Inc.
.........................
United
States
1,918,800
36,956,088
164,447,451
Textiles,
Apparel
&
Luxury
Goods
1.7%
a,b
Allbirds
,
Inc.,
A
.......................................
United
States
2,985,305
15,165,349
Steven
Madden
Ltd.
...................................
United
States
866,750
35,588,755
50,754,104
Trading
Companies
&
Distributors
3.9%
a
Beacon
Roofing
Supply,
Inc.
.............................
United
States
963,400
57,447,542
a
Univar
Solutions,
Inc.
..................................
United
States
1,898,132
55,273,604
112,721,146
Total
Common
Stocks
(Cost
$2,571,885,946)
....................................
2,740,386,997
Convertible
Preferred
Stocks
2.0%
Diversified
Consumer
Services
0.4%
a,d,e
Newsela
,
Inc.,
D
......................................
United
States
709,046
12,627,000
a
Software
1.2%
a,d,e
Benchling
,
Inc.,
F
.....................................
United
States
382,306
6,824,162
a,d,e
Checkr
,
Inc.,
E
.......................................
United
States
462,963
26,388,891
33,213,053
Specialty
Retail
0.4%
a,d,e
1661,
Inc.,
F
.........................................
United
States
3,436,485
11,377,470
a
Total
Convertible
Preferred
Stocks
(Cost
$72,500,003)
...........................
57,217,523
Preferred
Stocks
0.8%
Auto
Components
0.3%
a,d,e
Tula
eTechnology
,
Inc.
..................................
United
States
361,111
—
a,d,e
Tula
eTechnology
,
Inc.,
E
...............................
United
States
3,611,111
8,860,467
8,860,467
Commercial
Services
&
Supplies
0.3%
a,c,d,e
Optoro
,
Inc.,
E
.......................................
United
States
554,878
9,567,885
a
Software
0.2%
a,c,d,e
ClearMotion
,
Inc.,
D
...................................
United
States
3,698,772
379,232
a,d,e
Smule
,
Inc.,
144A,
G
...................................
United
States
1,542,673
3,681,140
a,d,e
Smule
,
Inc.,
144A,
H
...................................
United
States
352,675
994,075
5,054,447
Total
Preferred
Stocks
(Cost
$41,519,989)
......................................
23,482,799
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
41
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Warrants
0.0%
Software
0.0%
a,c,d,e
ClearMotion
,
Inc.,
2/01/49
...............................
United
States
312,500
$
—
Total
Warrants
(Cost
$–)
......................................................
—
Principal
Amount
*
Corporate
Bonds
0.0%
†
c,d,e
ClearMotion
,
Inc.
,
7
%
,
12/21/22
...........................
United
States
625,000
750,000
Total
Corporate
Bonds
(Cost
$625,000)
........................................
750,000
Shares
a
Escrows
and
Litigation
Trusts
0.0%
a,d
Proterra
,
Inc.,
Escrow
Account
...........................
United
States
344,921
—
a,d
Wheels
Up
Experience,
Inc.,
Escrow
Account
................
United
States
88,098
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$2,686,530,938)
.............................
2,821,837,319
a
Short
Term
Investments
5.4%
a
a
Country
Shares
a
Value
a
a
Money
Market
Funds
2.4%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
69,092,890
69,092,890
Total
Money
Market
Funds
(Cost
$69,092,890)
..................................
69,092,890
a
a
a
a
h
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
3.0%
Money
Market
Funds
3.0%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
87,800,835
87,800,835
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$87,800,835)
...........................................................
87,800,835
Total
Short
Term
Investments
(Cost
$156,893,725
)
...............................
156,893,725
a
Total
Investments
(Cost
$2,843,424,663)
102.5%
................................
$2,978,731,044
Other
Assets,
less
Liabilities
(2.5)%
...........................................
(72,755,352)
Net
Assets
100.0%
...........................................................
$2,905,975,692
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
See
Abbreviations
on
page
85.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
April
30,
2022.
See
Note
1(c).
c
See
Note
10
regarding
holdings
of
5%
voting
securities.
d
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
e
See
Note
9
regarding
restricted
securities.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
h
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
43
0
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$49.66
$32.15
$37.17
$36.07
$34.35
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.25)
(0.24)
(0.07)
(0.09)
(0.15)
Net
realized
and
unrealized
gains
(losses)
...........
(9.42)
21.89
1.24
5.33
4.97
Total
from
investment
operations
....................
(9.67)
21.65
1.17
5.24
4.82
Less
distributions
from:
Net
realized
gains
.............................
(6.92)
(4.14)
(6.19)
(4.14)
(3.10)
Net
asset
value,
end
of
year
.......................
$33.07
$49.66
$32.15
$37.17
$36.07
Total
return
c
...................................
(22.83)%
68.37%
2.97%
17.43%
14.28%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.85%
0.86%
0.88%
0.88%
1.02%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.84%
0.85%
0.87%
0.87%
1.00%
Net
investment
(loss)
............................
(0.54)%
(0.54)%
(0.21)%
(0.25)%
(0.41)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$3,019,703
$4,217,167
$2,515,801
$2,684,131
$2,262,471
Portfolio
turnover
rate
............................
48.89%
53.69%
52.98%
54.28%
38.35%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$27.98
$19.41
$24.98
$25.84
$25.59
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.32)
(0.33)
(0.22)
(0.26)
(0.31)
Net
realized
and
unrealized
gains
(losses)
...........
(4.54)
13.04
0.84
3.54
3.66
Total
from
investment
operations
....................
(4.86)
12.71
0.62
3.28
3.35
Less
distributions
from:
Net
realized
gains
.............................
(6.92)
(4.14)
(6.19)
(4.14)
(3.10)
Net
asset
value,
end
of
year
.......................
$16.20
$27.98
$19.41
$24.98
$25.84
Total
return
c
...................................
(23.43)%
67.11%
2.14%
16.68%
13.39%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.60%
1.61%
1.63%
1.63%
1.77%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.59%
1.60%
1.62%
1.62%
1.75%
Net
investment
(loss)
............................
(1.29)%
(1.28)%
(0.96)%
(1.00)%
(1.16)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$110,596
$198,713
$138,940
$173,334
$334,769
Portfolio
turnover
rate
............................
48.89%
53.69%
52.98%
54.28%
38.35%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
45
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$43.32
$28.45
$33.66
$33.15
$31.87
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.32)
(0.30)
(0.14)
(0.16)
(0.22)
Net
realized
and
unrealized
gains
(losses)
...........
(7.97)
19.31
1.12
4.81
4.60
Total
from
investment
operations
....................
(8.29)
19.01
0.98
4.65
4.38
Less
distributions
from:
Net
realized
gains
.............................
(6.92)
(4.14)
(6.19)
(4.14)
(3.10)
Net
asset
value,
end
of
year
.......................
$28.11
$43.32
$28.45
$33.66
$33.15
Total
return
....................................
(23.00)%
67.96%
2.69%
17.17%
14.00%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.10%
1.10%
1.12%
1.12%
1.26%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
1.09%
1.09%
1.11%
1.11%
1.24%
Net
investment
(loss)
............................
(0.79)%
(0.78)%
(0.45)%
(0.49)%
(0.65)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$38,761
$60,264
$40,997
$50,721
$70,692
Portfolio
turnover
rate
............................
48.89%
53.69%
52.98%
54.28%
38.35%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$58.24
$37.12
$41.83
$39.91
$37.51
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
....................
(0.10)
(0.10)
0.07
0.05
0.05
Net
realized
and
unrealized
gains
(losses)
...........
(11.38)
25.36
1.41
6.01
5.45
Total
from
investment
operations
....................
(11.48)
25.26
1.48
6.06
5.50
Less
distributions
from:
Net
realized
gains
.............................
(6.92)
(4.14)
(6.19)
(4.14)
(3.10)
Net
asset
value,
end
of
year
.......................
$39.84
$58.24
$37.12
$41.83
$39.91
Total
return
....................................
(22.57)%
68.95%
3.40%
17.82%
14.90%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.51%
0.51%
0.52%
0.52%
0.50%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.50%
0.49%
0.48%
0.49%
0.47%
Net
investment
income
(loss)
......................
(0.19)%
(0.19)%
0.18%
0.13%
0.12%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$540,509
$648,078
$224,341
$259,053
$275,835
Portfolio
turnover
rate
............................
48.89%
53.69%
52.98%
54.28%
38.35%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$56.79
$36.30
$41.09
$39.33
$37.11
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
....................
(0.15)
(0.14)
0.02
0.01
(0.06)
Net
realized
and
unrealized
gains
(losses)
...........
(11.04)
24.77
1.38
5.89
5.38
Total
from
investment
operations
....................
(11.19)
24.63
1.40
5.90
5.32
Less
distributions
from:
Net
realized
gains
.............................
(6.92)
(4.14)
(6.19)
(4.14)
(3.10)
Net
asset
value,
end
of
year
.......................
$38.68
$56.79
$36.30
$41.09
$39.33
Total
return
....................................
(22.65)%
68.77%
3.26%
17.67%
14.57%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.60%
0.61%
0.63%
0.63%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.59%
0.60%
0.62%
0.62%
0.75%
Net
investment
income
(loss)
......................
(0.28)%
(0.29)%
0.04%
—%
d
(0.16)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$532,573
$552,987
$302,329
$355,141
$520,842
Portfolio
turnover
rate
............................
48.89%
53.69%
52.98%
54.28%
38.35%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Small-Mid
Cap
Growth
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
93.9%
Aerospace
&
Defense
1.4%
a
TransDigm
Group,
Inc.
.................................
United
States
103,900
$
61,800,759
Airlines
1.3%
a
Delta
Air
Lines,
Inc.
....................................
United
States
1,247,300
53,671,319
Banks
1.0%
a
SVB
Financial
Group
...................................
United
States
83,800
40,864,232
Biotechnology
2.6%
a
Alnylam
Pharmaceuticals,
Inc.
............................
United
States
168,300
22,456,269
a
Horizon
Therapeutics
plc
................................
United
States
398,200
39,246,592
a
Neurocrine
Biosciences,
Inc.
.............................
United
States
141,000
12,694,230
a
PTC
Therapeutics,
Inc.
.................................
United
States
462,700
16,347,191
a
Seagen
,
Inc.
.........................................
United
States
160,700
21,053,307
111,797,589
Building
Products
1.0%
Trane
Technologies
plc
.................................
United
States
298,100
41,701,209
Capital
Markets
3.7%
Ares
Management
Corp.
................................
United
States
629,400
41,678,867
MarketAxess
Holdings,
Inc.
..............................
United
States
122,200
32,213,142
MSCI,
Inc.
...........................................
United
States
145,500
61,291,875
Tradeweb
Markets,
Inc.,
A
...............................
United
States
293,300
20,880,027
156,063,911
Commercial
Services
&
Supplies
1.1%
Republic
Services,
Inc.
.................................
United
States
344,800
46,296,296
Communications
Equipment
1.2%
a
Arista
Networks,
Inc.
...................................
United
States
455,000
52,584,350
Containers
&
Packaging
1.9%
Avery
Dennison
Corp.
..................................
United
States
266,300
48,093,780
Ball
Corp.
...........................................
United
States
406,000
32,950,960
81,044,740
Electrical
Equipment
2.3%
a
Generac
Holdings,
Inc.
.................................
United
States
196,200
43,042,356
Rockwell
Automation,
Inc.
...............................
United
States
212,900
53,793,443
96,835,799
Electronic
Equipment,
Instruments
&
Components
2.9%
Cognex
Corp.
........................................
United
States
529,000
35,776,270
a
Keysight
Technologies,
Inc.
..............................
United
States
279,700
39,233,519
a
Zebra
Technologies
Corp.,
A
.............................
United
States
128,200
47,390,412
122,400,201
Entertainment
0.3%
a
Roku,
Inc.
...........................................
United
States
120,278
11,173,826
Equity
Real
Estate
Investment
Trusts
(REITs)
2.8%
Equity
LifeStyle
Properties,
Inc.
...........................
United
States
437,400
33,802,272
SBA
Communications
Corp.
.............................
United
States
154,600
53,663,206
Terreno
Realty
Corp.
...................................
United
States
449,800
32,722,950
120,188,428
Food
Products
0.8%
a
Freshpet
,
Inc.
........................................
United
States
345,800
32,280,430
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
49
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Equipment
&
Supplies
5.1%
a
Dexcom
,
Inc.
.........................................
United
States
128,114
$
52,344,818
a
Figs,
Inc.,
A
..........................................
United
States
528,700
8,279,442
a
IDEXX
Laboratories,
Inc.
................................
United
States
191,500
82,436,920
a
Inari
Medical,
Inc.
.....................................
United
States
302,900
24,444,030
a
Insulet
Corp.
.........................................
United
States
202,800
48,467,172
215,972,382
Health
Care
Providers
&
Services
1.3%
a
Guardant
Health,
Inc.
..................................
United
States
531,400
32,787,380
a
HealthEquity
,
Inc.
.....................................
United
States
365,700
22,790,424
55,577,804
Health
Care
Technology
1.8%
a
Certara
,
Inc.
.........................................
United
States
584,800
10,731,080
a
Veeva
Systems,
Inc.,
A
.................................
United
States
359,100
65,338,245
76,069,325
Hotels,
Restaurants
&
Leisure
6.2%
a
Chipotle
Mexican
Grill,
Inc.
..............................
United
States
58,600
85,298,746
Darden
Restaurants,
Inc.
...............................
United
States
347,300
45,749,829
a
DraftKings
,
Inc.,
A
.....................................
United
States
312,055
4,268,913
a
Expedia
Group,
Inc.
...................................
United
States
299,900
52,407,525
Vail
Resorts,
Inc.
......................................
United
States
169,600
43,105,536
a
Wynn
Resorts
Ltd.
....................................
United
States
474,400
33,435,712
264,266,261
Household
Durables
1.1%
a
NVR,
Inc.
...........................................
United
States
10,600
46,387,826
Interactive
Media
&
Services
1.4%
a
Match
Group,
Inc.
.....................................
United
States
558,259
44,186,200
a
Pinterest,
Inc.,
A
......................................
United
States
785,800
16,124,616
60,310,816
Internet
&
Direct
Marketing
Retail
0.4%
a
Etsy,
Inc.
............................................
United
States
172,400
16,065,956
IT
Services
4.4%
a,b
Adyen
NV,
144A,
Reg
S
................................
Netherlands
12,600
21,132,893
a
Cloudflare
,
Inc.,
A
.....................................
United
States
490,200
42,225,828
a
Marqeta
,
Inc.,
A
.......................................
United
States
1,288,636
11,984,315
a
MongoDB,
Inc.
.......................................
United
States
128,100
45,466,533
a
Okta
,
Inc.
...........................................
United
States
384,500
45,874,695
a
Snowflake,
Inc.,
A
.....................................
United
States
118,400
20,298,496
186,982,760
Leisure
Products
1.9%
a,c,d
Fanatics
Holdings,
Inc.
.................................
United
States
793,714
52,848,244
a
YETI
Holdings,
Inc.
....................................
United
States
560,000
27,367,200
80,215,444
Life
Sciences
Tools
&
Services
5.6%
a
10X
Genomics,
Inc.,
A
..................................
United
States
359,800
17,184,048
a
Avantor
,
Inc.
.........................................
United
States
1,535,500
48,951,740
Bio-
Techne
Corp.
.....................................
United
States
149,800
56,877,562
a
Mettler
-Toledo
International,
Inc.
..........................
United
States
50,600
64,643,018
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
(continued)
West
Pharmaceutical
Services,
Inc.
........................
United
States
162,200
$
51,102,732
238,759,100
Machinery
1.4%
IDEX
Corp.
..........................................
United
States
148,900
28,264,198
a
Proterra
,
Inc.
.........................................
United
States
1,823,855
11,326,140
Stanley
Black
&
Decker,
Inc.
.............................
United
States
169,500
20,365,425
59,955,763
Oil,
Gas
&
Consumable
Fuels
0.7%
Coterra
Energy,
Inc.
...................................
United
States
1,054,900
30,370,571
Personal
Products
1.0%
a
BellRing
Brands,
Inc.
...................................
United
States
1,290,100
27,646,843
a
Olaplex
Holdings,
Inc.
..................................
United
States
907,800
13,344,660
40,991,503
Pharmaceuticals
1.3%
a
Catalent
,
Inc.
........................................
United
States
291,400
26,389,184
a
Jazz
Pharmaceuticals
plc
...............................
United
States
169,800
27,205,356
53,594,540
Professional
Services
3.1%
a
CoStar
Group,
Inc.
....................................
United
States
1,257,200
79,983,064
TransUnion
..........................................
United
States
601,700
52,660,784
132,643,848
Road
&
Rail
2.5%
a
Lyft,
Inc.,
A
..........................................
United
States
1,114,000
36,316,400
Old
Dominion
Freight
Line,
Inc.
...........................
United
States
248,450
69,595,814
105,912,214
Semiconductors
&
Semiconductor
Equipment
5.3%
a
Allegro
MicroSystems
,
Inc.
..............................
Japan
182,741
4,442,434
Entegris
,
Inc.
.........................................
United
States
414,100
46,126,599
a,e
GLOBALFOUNDRIES,
Inc.
..............................
United
States
183,400
9,589,986
a
Lattice
Semiconductor
Corp.
.............................
United
States
723,314
34,748,004
Monolithic
Power
Systems,
Inc.
...........................
United
States
126,100
49,461,464
a
Semtech
Corp.
.......................................
United
States
533,563
31,800,355
a
SiTime
Corp.
.........................................
United
States
284,514
47,960,525
224,129,367
Software
16.3%
a
Alkami
Technology,
Inc.
.................................
United
States
752,500
9,857,750
a
ANSYS,
Inc.
.........................................
United
States
255,300
70,383,657
a
Arteris
,
Inc.
..........................................
United
States
908,100
10,706,499
a
Avalara,
Inc.
.........................................
United
States
491,300
37,373,191
a
Bill.com
Holdings,
Inc.
..................................
United
States
224,633
38,347,099
a
Black
Knight,
Inc.
.....................................
United
States
564,877
37,163,258
a
Crowdstrike
Holdings,
Inc.,
A
.............................
United
States
341,300
67,836,788
a
Datadog
,
Inc.,
A
......................................
United
States
180,700
21,824,946
a
DocuSign,
Inc.
.......................................
United
States
520,200
42,136,200
a
Duck
Creek
Technologies,
Inc.
...........................
United
States
1,092,416
17,402,187
a
HubSpot
,
Inc.
........................................
United
States
115,000
43,634,450
a,e
Monday.com
Ltd.
......................................
United
States
156,000
20,186,400
a
Palo
Alto
Networks,
Inc.
................................
United
States
148,300
83,237,824
a
Paylocity
Holding
Corp.
.................................
United
States
240,600
45,624,978
a
Synopsys,
Inc.
.......................................
United
States
363,400
104,219,486
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
51
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
(continued)
a
Zscaler
,
Inc.
.........................................
United
States
210,000
$
42,575,400
692,510,113
Specialty
Retail
4.4%
a
Burlington
Stores,
Inc.
..................................
United
States
224,600
45,719,576
a
Five
Below,
Inc.
.......................................
United
States
320,700
50,381,970
a
Petco
Health
&
Wellness
Co.,
Inc.
.........................
United
States
1,264,100
24,346,566
Tractor
Supply
Co.
....................................
United
States
335,800
67,646,910
188,095,022
Textiles,
Apparel
&
Luxury
Goods
2.6%
a
Allbirds
,
Inc.,
A
.......................................
United
States
1,408,980
7,157,618
Levi
Strauss
&
Co.,
A
..................................
United
States
1,030,400
18,660,544
a
Lululemon
Athletica
,
Inc.
................................
United
States
233,600
82,841,568
108,659,730
Trading
Companies
&
Distributors
1.8%
Fastenal
Co.
.........................................
United
States
1,372,900
75,935,099
Total
Common
Stocks
(Cost
$3,347,099,967)
....................................
3,982,108,533
Convertible
Preferred
Stocks
1.4%
Diversified
Consumer
Services
0.2%
a,c,d
Newsela
,
Inc.,
D
......................................
United
States
423,782
7,546,894
a
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,c,d,f
Phononic
Devices,
Inc.
.................................
United
States
513,050
1,605,117
a
Software
1.2%
a,c,d
Benchling
,
Inc.,
F
.....................................
United
States
347,106
6,195,842
a,c,d
Blaize
,
Inc.,
D
........................................
United
States
1,948,384
16,733,295
a,c,d
Databricks
,
Inc.,
G
....................................
United
States
75,943
10,467,857
a,c,d
OneTrust
LLC,
C
......................................
United
States
767,526
15,051,415
48,448,409
Total
Convertible
Preferred
Stocks
(Cost
$69,181,596)
...........................
57,600,420
Preferred
Stocks
0.1%
Semiconductors
&
Semiconductor
Equipment
0.1%
a,c,d,f
Phononic
Devices,
Inc.,
F
...............................
United
States
2,970,061
6,044,404
a
Total
Preferred
Stocks
(Cost
$7,499,998)
.......................................
6,044,404
Warrants
Warrants
0.0%
†
Software
0.0%
†
a,c,d
Blaize
,
Inc.,
D,
2/28/24
.................................
United
States
260,815
67,020
Total
Warrants
(Cost
$–)
......................................................
67,020
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
0.1%
Software
0.1%
c,d
Blaize
,
Inc.
,
D
,
10
%
,
8/24/23
.............................
United
States
4,725,000
$
4,725,000
Total
Corporate
Bonds
(Cost
$4,725,000)
.......................................
4,725,000
g
Senior
Floating
Rate
Interests
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
c,d,f,h,i
Phononic
,
Inc.
,
Advance
Term
Loan,
B,
12%,
PIK,
(3-month
USD
LIBOR),
7/31/26
United
States
128,884
112,590
Advance
Term
Loan,
D,
12%,
PIK,
(3-month
USD
LIBOR),
12/01/25
..........................................
United
States
307,736
266,507
Term
Loan,
A,
12%,
PIK,
(3-month
USD
LIBOR),
1/17/24
......
United
States
626,697
568,451
Term
Loan,
C,
12%,
PIK,
(3-month
USD
LIBOR),
8/25/24
......
United
States
124,845
108,823
1,056,371
a
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$1,169,277)
...........................
1,056,371
Shares
a
Escrows
and
Litigation
Trusts
0.0%
a,c
Proterra
,
Inc.,
Escrow
Account
...........................
United
States
134,477
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$3,429,675,838)
.............................
4,051,601,748
a
Short
Term
Investments
5.1%
a
a
Country
Shares
a
Value
a
a
Money
Market
Funds
4.6%
j,k
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
195,919,198
195,919,198
Total
Money
Market
Funds
(Cost
$195,919,198)
.................................
195,919,198
a
a
a
a
l
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.5%
Money
Market
Funds
0.5%
j,k
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
22,421,425
22,421,425
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$22,421,425)
...........................................................
22,421,425
Total
Short
Term
Investments
(Cost
$218,340,623
)
...............................
218,340,623
a
Total
Investments
(Cost
$3,648,016,461)
100.6%
................................
$4,269,942,371
Other
Assets,
less
Liabilities
(0.6)%
...........................................
(27,800,354)
Net
Assets
100.0%
...........................................................
$4,242,142,017
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
53
See
Abbreviations
on
page
85
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
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
April
30,
2022,
the
value
of
this
security
was
$21,132,893,
representing
0.5%
of
net
assets.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
d
See
Note
9
regarding
restricted
securities.
e
A
portion
or
all
of
the
security
is
on
loan
at
April
30,
2022.
See
Note
1(c).
f
See
Note
10
regarding
holdings
of
5%
voting
securities.
g
See
Note
1(d)
regarding
senior
floating
rate
interests.
h
Income
may
be
received
in
additional
securities
and/or
cash.
i
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
j
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
k
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
l
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
April
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$2,012,544,847
$2,561,533,855
$3,421,006,516
Cost
-
Non-controlled
affiliates
(Note
3
f
and
10
)
.................
202,852,383
281,890,808
227,009,945
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$91,307,481,
$83,232,797
and
$20,431,418,
respectively)
...................
$4,390,172,864
$2,747,792,728
$4,042,895,856
Value
-
Non-controlled
affiliates
(Note
3
f
and
10
)
................
201,823,764
230,938,316
227,046,515
Cash
..................................................
—
—
54,423
Receivables:
Investment
securities
sold
(Includes
securities
loaned
of
$–,
$130,296
and
$–,
respectively)
.....................................
—
24,533,424
59,067,175
Capital
shares
sold
......................................
12,993,966
3,738,886
2,717,484
Dividends
and
interest
...................................
620,133
561,741
903,695
Due
from
custodian
......................................
219,375
2,223,000
—
Total
assets
........................................
4,605,830,102
3,009,788,095
4,332,685,148
Liabilities:
Payables:
Investment
securities
purchased
............................
—
8,091,261
59,385,858
Capital
shares
redeemed
.................................
3,783,614
3,255,223
5,167,562
Management
fees
.......................................
2,157,042
1,567,409
1,705,539
Distribution
fees
........................................
889,724
244,605
798,399
Transfer
agent
fees
......................................
535,378
468,739
707,912
Trustees'
fees
and
expenses
...............................
6,511
3,125
1,653
Payable
upon
return
of
securities
loaned
(Note
1
c
)
................
98,466,445
90,023,835
22,421,425
Accrued
expenses
and
other
liabilities
.........................
254,398
158,206
354,783
Total
liabilities
.......................................
106,093,112
103,812,403
90,543,131
Net
assets,
at
value
...............................
$4,499,736,990
$2,905,975,692
$4,242,142,017
Net
assets
consist
of:
Paid-in
capital
...........................................
$1,969,831,588
$2,703,390,277
$3,618,106,596
Total
distributable
earnings
(losses)
...........................
2,529,905,402
202,585,415
624,035,421
Net
assets,
at
value
...............................
$4,499,736,990
$2,905,975,692
$4,242,142,017
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
April
30,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
55
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Class
A:
Net
assets,
at
value
.....................................
$3,215,833,614
$860,535,544
$3,019,702,791
Shares
outstanding
......................................
74,545,624
48,407,168
91,309,007
Net
asset
value
per
share
a
................................
$43.14
$17.78
$33.07
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
..............................................
$45.65
$18.81
$34.99
Class
C:
Net
assets,
at
value
.....................................
$158,895,449
$32,754,570
$110,596,417
Shares
outstanding
......................................
4,881,711
2,647,571
6,826,421
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$32.55
$12.37
$16.20
Class
R:
Net
assets,
at
value
.....................................
$27,009,143
$50,324,262
$38,761,069
Shares
outstanding
......................................
674,248
3,126,504
1,378,685
Net
asset
value
and
maximum
offering
price
per
share
...........
$40.06
$16.10
$28.11
Class
R6:
Net
assets,
at
value
.....................................
$461,475,242
$1,529,170,137
$540,508,551
Shares
outstanding
......................................
9,420,752
73,781,929
13,567,219
Net
asset
value
and
maximum
offering
price
per
share
...........
$48.98
$20.73
$39.84
Advisor
Class:
Net
assets,
at
value
.....................................
$636,523,542
$433,191,179
$532,573,189
Shares
outstanding
......................................
13,242,069
21,452,702
13,770,360
Net
asset
value
and
maximum
offering
price
per
share
...........
$48.07
$20.19
$38.68
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Operations
for
the
year
ended
April
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$12,733,
$–
and
$–,
respectively)
Unaffiliated
issuers
......................................
$18,031,668
$15,513,408
$15,734,160
Non-controlled
affiliates
(Note
3
f
a
nd
10
)
......................
6,268
9,529
21,410
Interest:
Unaffiliated
issuers
......................................
—
—
39,530
Non-controlled
affiliates
(Note
3
f
and
10
)
......................
6,357
15,799
123,312
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
5,608,332
3,448,826
964,214
Non-controlled
affiliates
(Note
3
f
)
...........................
11,533
16,056
5,238
Total
investment
income
.................................
23,664,158
19,003,618
16,887,864
Expenses:
Management
fees
(Note
3
a
)
.................................
30,789,220
23,028,413
25,290,685
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
10,530,702
2,848,779
10,094,319
    Class
C
..............................................
2,367,400
604,531
1,646,722
    Class
R
..............................................
190,797
332,355
269,547
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
4,236,799
1,934,751
5,058,570
    Class
C
..............................................
239,807
102,758
206,895
    Class
R
..............................................
38,457
112,919
67,584
    Class
R6
.............................................
144,974
642,700
281,394
    Advisor
Class
..........................................
737,161
1,034,063
780,257
Custodian
fees
(Note
4
)
....................................
31,167
45,490
30,519
Reports
to
shareholders
fees
................................
252,973
187,713
351,611
Registration
and
filing
fees
..................................
187,469
149,239
224,179
Professional
fees
.........................................
198,721
172,573
132,173
Trustees'
fees
and
expenses
................................
59,759
38,889
52,767
Other
..................................................
185,838
138,549
147,923
Total
expenses
.......................................
50,191,244
31,373,722
44,635,145
Expense
reductions
(Note
4
)
.............................
(1,386)
(6)
(178)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(139,736)
(241,422)
(314,074)
Net
expenses
.......................................
50,050,122
31,132,294
44,320,893
Net
investment
income
(loss)
..........................
(26,385,964)
(12,128,676)
(27,433,029)
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
403,329,145
202,551,180
265,521,246
Non-controlled
affiliates
(Note
3
f
and
10
)
....................
(8,787,832)
(108,266)
—
Foreign
currency
transactions
..............................
(6,807)
—
(61,222)
Net
realized
gain
(loss)
................................
394,534,506
202,442,914
265,460,024
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(1,224,805,022)
(1,379,495,740)
(1,513,535,947)
Non-controlled
affiliates
(Note
3
f
and
10
)
....................
(25,495,981)
(54,858,926)
(4,777,827)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
—
—
(13,075)
Net
change
in
unrealized
appreciation
(depreciation)
..........
(1,250,301,003)
(1,434,354,666)
(1,518,326,849)
Net
realized
and
unrealized
gain
(loss)
..........................
(855,766,497)
(1,231,911,752)
(1,252,866,825)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(882,152,461)
$(1,244,040,428)
$(1,280,299,854)
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
57
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(26,385,964)
$(24,853,214)
$(12,128,676)
$(16,528,767)
Net
realized
gain
(loss)
............
394,534,506
562,319,554
202,442,914
795,665,077
Net
change
in
unrealized
appreciation
(depreciation)
.................
(1,250,301,003)
1,438,216,506
(1,434,354,666)
1,041,322,646
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(882,152,461)
1,975,682,846
(1,244,040,428)
1,820,458,956
Distributions
to
shareholders:
Class
A
........................
(359,718,850)
(224,148,602)
(181,623,574)
(104,691,979)
Class
C
........................
(24,116,585)
(19,547,939)
(11,157,943)
(10,525,678)
Class
R
........................
(3,445,814)
(2,400,189)
(11,001,401)
(8,100,192)
Class
R6
.......................
(45,124,223)
(26,531,757)
(275,811,029)
(155,392,084)
Advisor
Class
...................
(60,941,142)
(30,835,998)
(86,977,922)
(58,222,612)
Total
distributions
to
shareholders
.....
(493,346,614)
(303,464,485)
(566,571,869)
(336,932,545)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(6,279,016)
101,012,799
167,442,730
134,170,863
Class
C
........................
(67,672,792)
(20,254,399)
(24,866,698)
(13,257,685)
Class
R
........................
(4,737,474)
(3,158,368)
3,295,454
(5,585,640)
Class
R6
.......................
33,819,307
17,769,683
295,833,158
287,293,924
Advisor
Class
...................
189,846,207
(19,471,444)
(25,196,039)
41,589,751
Total
capital
share
transactions
.......
144,976,232
75,898,271
416,508,605
444,211,213
Net
increase
(decrease)
in
net
assets
.....................
(1,230,522,843)
1,748,116,632
(1,394,103,692)
1,927,737,624
Net
assets:
Beginning
of
year
..................
5,730,259,833
3,982,143,201
4,300,079,384
2,372,341,760
End
of
year
......................
$4,499,736,990
$5,730,259,833
$2,905,975,692
$4,300,079,384
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
Franklin
Small-Mid
Cap
Growth
Fund
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
............................................
$(27,433,029)
$(23,956,403)
Net
realized
gain
(loss)
.................................................
265,460,024
979,421,933
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(1,518,326,849)
1,272,155,703
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(1,280,299,854)
2,227,621,233
Distributions
to
shareholders:
Class
A
.............................................................
(568,582,110)
(322,775,473)
Class
C
.............................................................
(38,633,049)
(26,786,941)
Class
R
.............................................................
(8,635,
560)
(5,438,863)
Class
R6
............................................................
(85,137,628)
(33,885,852)
Advisor
Class
........................................................
(83,955,454)
(37,430,317)
Total
distributions
to
shareholders
..........................................
(784,943,801)
(426,317,446)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
274,759,286
312,835,788
Class
C
.............................................................
(15,778,928)
(1,290,198)
Class
R
.............................................................
(1,091,727)
(1,603,654)
Class
R6
............................................................
143,151,443
275,615,792
Advisor
Class
........................................................
229,136,029
67,940,915
Total
capital
share
transactions
............................................
630,176,103
653,498,643
Net
increase
(decrease)
in
net
assets
...................................
(1,435,067,552)
2,454,802,430
Net
assets:
Beginning
of
year
.......................................................
5,677,209,569
3,222,407,139
End
of
year
...........................................................
$4,242,142,017
$5,677,209,569
Franklin
Strategic
Series
59
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
1.
Organization
and
Significant
Accounting
Policies
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, three
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Funds
offer five classes
of
shares: 
Class
A,
Class
C,
Class
R,
Class
R6,
and
Advisor
Class.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
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
Funds' administrator
has
responsibility
for
oversight
of
valuation,
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
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
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.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
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,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
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
Franklin
Strategic
Series
Notes
to
Financial
Statements
60
franklintempleton.com
Annual
Report
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
Funds.
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
April
30,
2022,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
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.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds,
and/or
uninvested
cash
as
included
in
due
from
custodian
in
the
Statements
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statements
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
61
franklintempleton.com
Annual
Report
d.
Senior
Floating
Rate
Interests
Certain
or
all
Funds
invest
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the
Funds
invest
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
e.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
April
30,
2022, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
62
franklintempleton.com
Annual
Report
h.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
April
3
0
,
202
2
,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value)
.
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
April
30,
2022
Shares
sold
a
...................................
6,890,606
$396,777,803
9,253,728
$238,990,129
Shares
issued
in
reinvestment
of
distributions
..........
6,082,227
350,944,784
7,947,202
176,427,893
Shares
redeemed
...............................
(13,159,714)
(754,001,603)
(10,164,246)
(247,975,292)
Net
increase
(decrease)
..........................
(186,881)
$(6,279,016)
7,036,684
$167,442,730
Year
ended
April
30,
2021
Shares
sold
a
...................................
9,852,737
$499,219,179
9,833,490
$259,856,939
Shares
issued
in
reinvestment
of
distributions
..........
4,067,652
210,907,495
3,766,883
100,952,866
Shares
redeemed
...............................
(12,009,751)
(609,113,875)
(8,666,706)
(226,638,942)
Net
increase
(decrease)
..........................
1,910,638
$101,012,799
4,933,667
$134,170,863
Class
C
Class
C
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
806,835
$35,542,381
365,784
$6,912,044
Shares
issued
in
reinvestment
of
distributions
..........
550,017
24,013,761
717,415
11,112,762
Shares
redeemed
a
..............................
(2,830,083)
(127,228,934)
(2,263,971)
(42,891,504)
Net
increase
(decrease)
..........................
(1,473,231)
$(67,672,792)
(1,180,772)
$(24,866,698)
Year
ended
April
30,
2021
Shares
sold
...................................
1,472,577
$59,035,199
563,562
$11,698,529
Shares
issued
in
reinvestment
of
distributions
..........
479,347
19,437,795
519,218
10,467,435
Shares
redeemed
a
..............................
(2,454,585)
(98,727,393)
(1,764,756)
(35,423,649)
Net
increase
(decrease)
..........................
(502,661)
$(20,254,399)
(681,976)
$(13,257,685)
Class
R
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
63
franklintempleton.com
Annual
Report
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Shares
Amount
Shares
Amount
Class
R
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
76,942
$3,980,274
551,504
$11,946,416
Shares
issued
in
reinvestment
of
distributions
..........
64,252
3,445,813
546,789
11,001,401
Shares
redeemed
...............................
(233,672)
(12,163,561)
(828,577)
(19,652,363)
Net
increase
(decrease)
..........................
(92,478)
$(4,737,474)
269,716
$3,295,454
Year
ended
April
30,
2021
Shares
sold
...................................
171,266
$8,043,810
717,438
$17,477,893
Shares
issued
in
reinvestment
of
distributions
..........
49,285
2,395,755
327,026
8,093,887
Shares
redeemed
...............................
(286,132)
(13,597,933)
(1,280,988)
(31,157,420)
Net
increase
(decrease)
..........................
(65,581)
$(3,158,368)
(236,524)
$(5,585,640)
Class
R6
Class
R6
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
1,240,329
$80,658,673
18,516,718
$540,887,626
Shares
issued
in
reinvestment
of
distributions
..........
492,336
32,218,482
9,701,881
250,696,604
Shares
redeemed
...............................
(1,254,887)
(79,057,848)
(17,399,202)
(495,751,072)
Net
increase
(decrease)
..........................
477,778
$33,819,307
10,819,397
$295,833,158
Year
ended
April
30,
2021
Shares
sold
...................................
1,780,597
$101,176,664
18,333,285
$556,812,453
Shares
issued
in
reinvestment
of
distributions
..........
330,490
19,184,931
4,628,874
140,578,888
Shares
redeemed
...............................
(1,883,548)
(102,591,912)
(13,948,785)
(410,097,417)
Net
increase
(decrease)
..........................
227,539
$17,769,683
9,013,374
$287,293,924
Advisor
Class
Advisor
Class
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
4,816,438
$312,058,174
4,892,787
$136,887,334
Shares
issued
in
reinvestment
of
distributions
..........
934,701
60,035,832
2,985,266
75,198,838
Shares
redeemed
...............................
(2,885,831)
(182,247,799)
(8,558,404)
(237,282,211)
Net
increase
(decrease)
..........................
2,865,308
$189,846,207
(680,351)
$(25,196,039)
Year
ended
April
30,
2021
Shares
sold
...................................
1,388,593
$77,802,045
8,029,152
$230,742,875
Shares
issued
in
reinvestment
of
distributions
..........
529,809
30,257,387
1,670,035
49,683,553
Shares
redeemed
...............................
(2,340,525)
(127,530,876)
(8,252,648)
(238,836,677)
Net
increase
(decrease)
..........................
(422,123)
$(19,471,444)
1,446,539
$41,589,751
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
64
franklintempleton.com
Annual
Report
Franklin
Small-Mid
Cap
Growth
Fund
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
April
30,
2022
Shares
sold
a
...................................
10,434,368
$484,680,273
Shares
issued
in
reinvestment
of
distributions
..........
12,690,378
554,315,810
Shares
redeemed
...............................
(16,735,087)
(764,236,797)
Net
increase
(decrease)
..........................
6,389,659
$274,759,286
Year
ended
April
30,
2021
Shares
sold
a
...................................
13,207,103
$591,860,878
Shares
issued
in
reinvestment
of
distributions
..........
6,654,125
306,156,283
Shares
redeemed
...............................
(13,188,883)
(585,181,373)
Net
increase
(decrease)
..........................
6,672,345
$312,835,788
Class
C
Class
C
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
1,058,316
$25,966,238
Shares
issued
in
reinvestment
of
distributions
..........
1,792,755
38,472,525
Shares
redeemed
a
..............................
(3,125,852)
(80,217,691)
Net
increase
(decrease)
..........................
(274,781)
$(15,778,928)
Year
ended
April
30,
2021
Shares
sold
...................................
1,554,802
$40,817,005
Shares
issued
in
reinvestment
of
distributions
..........
1,025,860
26,672,329
Shares
redeemed
a
..............................
(2,636,417)
(68,779,532)
Net
increase
(decrease)
..........................
(55,755)
$(1,290,198)
Class
R
Class
R
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
216,423
$8,644,434
Shares
issued
in
reinvestment
of
distributions
..........
231,763
8,610,007
Shares
redeemed
...............................
(460,531)
(18,346,168)
Net
increase
(decrease)
..........................
(12,345)
$(1,091,727)
Year
ended
April
30,
2021
Shares
sold
...................................
395,867
$15,543,080
Shares
issued
in
reinvestment
of
distributions
..........
134,671
5,411,097
Shares
redeemed
...............................
(580,286)
(22,557,831)
Net
increase
(decrease)
..........................
(49,748)
$(1,603,654)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
65
franklintempleton.com
Annual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Small-Mid
Cap
Growth
Fund
Shares
Amount
Class
R6
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
5,242,939
$288,735,264
Shares
issued
in
reinvestment
of
distributions
..........
1,465,418
77,007,708
Shares
redeemed
...............................
(4,268,611)
(222,591,529)
Net
increase
(decrease)
..........................
2,439,746
$143,151,443
Year
ended
April
30,
2021
Shares
sold
...................................
6,958,014
$373,028,400
Shares
issued
in
reinvestment
of
distributions
..........
574,433
30,956,221
Shares
redeemed
...............................
(2,449,090)
(128,368,829)
Net
increase
(decrease)
..........................
5,083,357
$275,615,792
Advisor
Class
Advisor
Class
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
5,277,785
$293,020,383
Shares
issued
in
reinvestment
of
distributions
..........
1,600,230
81,659,747
Shares
redeemed
...............................
(2,845,020)
(145,544,101)
Net
increase
(decrease)
..........................
4,032,995
$229,136,029
Year
ended
April
30,
2021
Shares
sold
...................................
2,877,964
$141,845,420
Shares
issued
in
reinvestment
of
distributions
..........
683,685
35,941,325
Shares
redeemed
...............................
(2,153,257)
(109,845,830)
Net
increase
(decrease)
..........................
1,408,392
$67,940,915
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
66
franklintempleton.com
Annual
Report
a.
Management
Fees
Franklin
Growth
Opportunities
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Small
Cap
Growth
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Small-Mid
Cap
Growth
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
year
ended
April
30,
2022,
each
Fund's
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
Annualized
Fee
Rate
Net
Assets
0.700%
Up
to
and
including
$500
million
0.600%
Over
$500
million,
up
to
and
including
$1
billion
0.550%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.500%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.475%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.450%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.440%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.430%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.420%
In
excess
of
$21.5
billion
Annualized
Fee
Rate
Net
Assets
0.750%
Up
to
and
including
$500
million
0.650%
Over
$500
million,
up
to
and
including
$1
billion
0.600%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.550%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.525%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.500%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.490%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.480%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.470%
In
excess
of
$21.5
billion
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
67
franklintempleton.com
Annual
Report
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of
the
Funds’
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
and
R
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
For
Franklin
Growth
Opportunities
Fund
and
Franklin
Small
Cap
Growth
Fund,
the
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
year:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Gross
effective
investment
management
fee
rate
........
0.530%
0.596%
0.455%
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Reimbursement
Plans:
Class
A
..............................
0.35%
0.35%
0.25%
Compensation
Plans:
Class
C
..............................
1.00%
1.00%
1.00%
Class
R
..............................
0.50%
0.50%
0.50%
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$425,241
$248,146
$554,909
CDSC
retained
...........................
$51,068
$13,695
$40,945
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
68
franklintempleton.com
Annual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
April
30,
2022,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
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.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
April
3
0
,
202
2
,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Transfer
agent
fees
........................
$2,916,720
$1,892,472
$2,802,939
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$
74,672,064
$
909,124,121
$
(917,402,918)
$
—
$
—
$
66,393,267
66,393,267
$
6,268
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$50,044,540
$1,234,510,755
$(1,186,308,225)
$—
$—
$98,247,070
98,247,070
$11,533
Total
Affiliated
Securities
...
$124,716,604
$2,143,634,876
$(2,103,711,143)
$—
$—
$164,640,337
$17,801
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
69
franklintempleton.com
Annual
Report
g.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2022.
h.
Interfund
Transactions
Certain
or
all
Funds
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
These
purchases,
sales
and
the
related
net
realized
gains
(losses),
if
any,
for
the
year
ended
April
30,
2022,
were
as
follows:
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$
205,154,775
$
726,608,757
$
(862,670,642)
$
—
$
—
$
69,092,890
69,092,890
$
9,529
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$64,722,231
$1,258,858,532
$(1,235,779,928)
$—
$—
$87,800,835
87,800,835
$16,056
Total
Affiliated
Securities
...
$269,877,006
$1,985,467,289
$(2,098,450,570)
$—
$—
$156,893,725
$25,585
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$
213,329,128
$
1,147,342,171
$
(1,164,752,101)
$
—
$
—
$
195,919,198
195,919,198
$
21,410
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$84,881,180
$737,108,749
$(799,568,504)
$—
$—
$22,421,425
22,421,425
$5,238
Total
Affiliated
Securities
...
$298,210,308
$1,884,450,920
$(1,964,320,605)
$—
$—
$218,340,623
$26,648
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
70
franklintempleton.com
Annual
Report
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses. During
the
year ended
April
30,
2022,
the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
The
tax
character
of
distributions
paid
during
the
years
ended
April
30,
2022
and
2021,
was
as
follows:
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
April
30,
2022,
Franklin
Small-Mid
Cap
Growth
Fund
deferred
post-October
capital
losses
of
$196,564,410
and
late-year
ordinary
losses
of
$1,581,287.
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Purchases
..............................
$—
$8,543,064
$—
Sales
..................................
$2,436,780
$—
$2,264,772
Net
Realized
Gains
(Losses)
.................
$294,780
$—
$273,972
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
2022
2021
2022
2021
Distributions
paid
from:
Ordinary
income
........................
$20,782,601
$29,626,465
$97,151,885
$73,106,432
Long
term
capital
gain
....................
472,564,013
273,838,020
469,419,984
263,826,113
$493,346,614
$303,464,485
$566,571,869
$336,932,545
Franklin
Small-Mid
Cap
Growth
Fund
2022
2021
Distributions
paid
from:
Ordinary
income
........................
$145,205,359
$37,327,998
Long
term
capital
gain
....................
639,738,442
388,989,448
$784,943,801
$426,317,446
3.
Transactions
with
Affiliates
(continued)
h.
Interfund
Transactions
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
71
franklintempleton.com
Annual
Report
At
April
30,
2022,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
long
term
capital
gains
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
passive
foreign
investment
company
shares
and
wash
sales.
The
Funds
utilized
a
tax
accounting
practice
to
treat
a
portion
of
the
proceeds
from
capital
shares
redeemed
as
a
distribution
from
realized
capital
gains.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
April
30,
2022,
were
as
follows:
At
April
30,
2022,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
7.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Funds
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
a
a
a
a
Cost
of
investments
.......................
$2,217,259,347
$2,849,656,538
$3,674,846,300
Unrealized
appreciation
.....................
$2,595,273,541
$681,636,362
$999,366,325
Unrealized
depreciation
.....................
(220,536,260)
(552,561,856)
(404,270,254)
Net
unrealized
appreciation
(depreciation)
.......
$2,374,737,281
$129,074,506
$595,096,071
Distributable
earnings:
Undistributed
long
term
capital
gain
s
...........
$155,168,131
$12,526,418
$219,267,987
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Purchases
..............................
$986,352,041
$1,166,380,387
$2,613,424,921
Sales
..................................
$1,443,814,060
$1,276,818,987
$2,785,626,123
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$98,466,445
$90,023,835
$22,421,425
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
5.
Income
Taxes
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
72
franklintempleton.com
Annual
Report
8.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
9.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
April
30,
2022,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Opportunities
Fund
11,829
Canva
,
Inc.
................................
12/22/21
$
20,158,531
$
8,371,768
16,669
Celonis
SE
.................................
6/16/21
6,149,572
6,164,029
125,750
ClearMotion
,
Inc.,
2/01/49
.....................
12/21/21
—
—
251,500
ClearMotion
,
Inc.,
7%,
12/21/22
.................
12/21/21
251,500
301,800
2,610,594
ClearMotion
,
Inc.,
C
..........................
11/06/17
5,499,999
245,393
3,698,772
ClearMotion
,
Inc.,
D
..........................
12/21/18
10,000,000
379,231
112,760
Databricks
,
Inc.,
G
...........................
2/01/21
20,000,005
15,542,652
1,029,939
Fanatics
Holdings,
Inc.
........................
8/13/20
-
3/22/21
19,730,229
68,576,928
415,102
a
HashiCorp
,
Inc.
.............................
3/06/20
12,004,812
17,832,356
18,867
IL
MAKIAGE
Cosmetics
(2013)
Ltd.
..............
12/06/21
16,241,091
14,889,942
810,440
Lacework,
Inc.,
D
............................
11/12/21
20,330,471
17,711,833
517,056
OneTrust
LLC,
C
............................
4/01/21
10,139,623
10,139,623
556,026
Optoro
,
Inc.,
E
..............................
7/24/18
-
12/01/21
10,942,592
9,587,680
1,123,900
b
Sweetgreen
,
Inc.
............................
11/09/18
-
1/21/21
15,142,819
29,918,137
1,753,060
Talkdesk
,
Inc.,
C
............................
7/15/20
11,517,955
26,669,323
805,800
Tanium,
Inc.,
G
..............................
9/14/15
4,000,233
6,236,566
504,854
Tempus
Labs,
Inc.,
F
.........................
5/29/19
12,499,983
17,452,358
126,131
Tempus
Labs,
Inc.,
G
.........................
2/06/20
4,837,427
4,360,238
Total
Restricted
Securities
(Value
is
5.7%
of
Net
Assets)
..............
$199,446,842
$254,379,857
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Small
Cap
Growth
Fund
3,436,485
1661,
Inc.,
F
................................
5/28/21
$
19,999,999
$
11,377,470
Franklin
Strategic
Series
Notes
to
Financial
Statements
73
franklintempleton.com
Annual
Report
Principal
Amount*/
Shares/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Small
Cap
Growth
Fund
(continued)
382,306
Benchling
,
Inc.,
F
............................
10/20/21
$
12,499,992
$
6,824,162
462,963
Checkr
,
Inc.,
E
..............................
8/24/21
25,000,002
26,388,891
312,500
ClearMotion
,
Inc.,
2/01/49
.....................
12/21/21
—
—
625,000
ClearMotion
,
Inc.,
7%,
12/21/22
.................
12/21/21
625,000
750,000
3,698,772
ClearMotion
,
Inc.,
D
..........................
12/21/18
10,000,000
379,232
709,046
Newsela
,
Inc.,
D
.............................
1/21/21
15,000,010
12,627,000
554,878
Optoro
,
Inc.,
E
..............................
7/24/18
-
12/01/21
10,919,999
9,567,885
1,542,673
Smule
,
Inc.,
144A,
G
.........................
5/31/16
11,099,995
3,681,140
352,675
Smule
,
Inc.,
144A,
H
.........................
4/27/17
2,999,995
994,075
564,839
c
Sweetgreen
,
Inc.
............................
11/09/18
-
1/21/21
7,649,483
15,035,973
361,111
Tula
eTechnology
,
Inc.
........................
11/01/18
—
—
3,611,111
Tula
eTechnology
,
Inc.,
E
......................
9/08/17
6,500,000
8,860,467
Total
Restricted
Securities
(Value
is
3.3%
of
Net
Assets)
..............
$122,294,475
$96,486,295
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Small-Mid
Cap
Growth
Fund
347,106
Benchling
,
Inc.,
F
............................
10/20/21
$
11,349,082
$
6,195,842
1,948,384
Blaize
,
Inc.,
D
..............................
3/02/21
-
11/09/21
20,346,009
16,733,295
260,815
Blaize
,
Inc.,
D,
2/28/24
........................
3/01/21
-
11/09/21
—
67,020
4,725,000
Blaize
,
Inc.,
D,
10%,
8/24/23
....................
4/01/22
4,725,000
4,725,000
75,943
Databricks
,
Inc.,
G
...........................
2/01/21
13,469,850
10,467,857
793,714
Fanatics
Holdings,
Inc.
........................
8/13/20
-
3/22/21
14,052,061
52,848,244
423,782
Newsela
,
Inc.,
D
.............................
1/21/21
8,965,193
7,546,894
767,526
OneTrust
LLC,
C
............................
4/01/21
15,051,415
15,051,415
513,050
Phononic
Devices,
Inc.
........................
1/17/20
-
11/03/20
47
1,605,117
2,970,061
Phononic
Devices,
Inc.,
F
......................
6/06/19
7,499,998
6,044,404
128,884
Phononic
,
Inc.,
Advance
Term
Loan,
B,
12%,
PIK,
7/31/26
..................................
8/25/20
-
4/01/22
124,574
112,590
307,736
Phononic
,
Inc.,
Advance
Term
Loan,
D,
12%,
PIK,
12/01/25
.................................
1/15/21
-
4/01/22
303,522
266,507
626,697
Phononic
,
Inc.,
Term
Loan,
A,
12%,
PIK,
1/17/24
....
1/17/20
-
4/01/22
618,002
568,451
124,845
Phononic
,
Inc.,
Term
Loan,
C,
12%,
PIK,
8/25/24
....
12/03/20
-
4/01/22
123,179
108,823
Total
Restricted
Securities
(Value
is
2.9%
of
Net
Assets)
..............
$96,627,932
$122,341,459
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$8,583,390
as
of
April
30,
2022.
b
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$1,655,100
as
of
April
30,
2022.
c
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$6,147,900
as
of
April
30,
2022.
9.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
74
franklintempleton.com
Annual
Report
10.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
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
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
year
ended
April
30,
2022,
investments
in
“affiliated
companies”
were
as
follows:
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares/Principal
Amount
*
Held
at
End
of
Year
Investment
Income
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
AvidXchange
Holdings,
Inc.
............
$
13,792,310
$
7,237,437
$
(10,949,576)
$
(8,787,832)
$
(1,292,339)
$
—
a
—
$
—
ClearMotion
,
Inc.,
2/01/49
—
—
—
—
—
—
125,750
—
ClearMotion
,
Inc.,
C
...
7,703,411
—
—
—
(7,458,018)
245,393
2,610,594
—
ClearMotion
,
Inc.,
D
...
11,706,569
—
—
—
(11,327,338)
379,231
3,698,772
—
HashiCorp
,
Inc.,
E
....
19,097,102
—
—
—
—
b
 —
b
—
b
—
Optoro
,
Inc.,
E
.......
12,164,900
921,889
—
—
(3,499,109)
9,587,680
556,026
—
Talkdesk
,
Inc.,
C
.....
28,638,800
—
—
—
(1,969,477)
26,669,323
1,753,060
—
Tempus
Labs,
Inc.,
F
..
22,633,975
—
—
—
 —
b
 —
b
—
b
—
Tempus
Labs,
Inc.,
G
..
5,814,771
—
—
—
 —
b
 —
b
—
b
—
Wheels
Up
Experience,
Inc.
............
57,526,068
—
—
—
 —
b
 —
b
—
b
—
Interest
ClearMotion
,
Inc.,
7%,
12/21/22
.........
—
251,500
—
—
50,300
301,800
251,500
6,357
Total
Affiliated
Securities
(Value
is
0.8%
of
Net
Assets)
..........
$179,077,906
$8,410,826
$(10,949,576)
$
(8,787,832)
$
(25,495,981)
$37,183,427
$6,357
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares/Principal
Amount
*
Held
at
End
of
Year
Investment
Income
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
ClearMotion
,
Inc.,
2/01/49
$
—
$
—
$
—
$
—
$
—
$
—
312,500
$
—
ClearMotion
,
Inc.,
D
...
11,706,569
—
—
—
(11,327,337)
379,232
3,698,772
—
EyePoint
Pharmaceuticals
Inc
.............
8,894,080
12,560,726
(793,734)
(108,266)
(1,052,396)
19,500,410
1,725,700
—
Nerdy
Inc
..........
—
41,281,658
—
—
(25,055,018)
16,226,640
4,362,000
—
Optoro
,
Inc.,
E
.......
12,139,766
920,001
—
—
(3,491,882)
9,567,885
554,878
—
Paymentus
Holdings
Inc
—
41,677,717
—
—
(14,057,293)
27,620,424
1,667,900
—
Franklin
Strategic
Series
Notes
to
Financial
Statements
75
franklintempleton.com
Annual
Report
11.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares/Principal
Amount*
Held
at
End
of
Year
Investment
Income
Franklin
Small
Cap
Growth
Fund
(continued)
Non-Controlled
Affiliates
TPG
Pace
Governance
LLC,
A
..........
$
25,000,000
$
—
$
(25,000,000)
$
—
$
—
$
—
a
—
$
—
Wheels
Up
Experience,
Inc.
............
39,308,057
—
—
—
—
b
—
b
—
b
—
Interest
ClearMotion
,
Inc.,
7%,
12/21/22
.........
—
625,000
—
—
125,000
750,000
625,000
15,799
Total
Affiliated
Securities
(Value
is
2.5%
of
Net
Assets)
..........
$97,048,472
$97,065,102
$(25,793,734)
$
(108,266)
$
(54,858,926)
$74,044,591
$15,799
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Blaize
,
Inc.,
D
.......
$
13,521,001
$
6,824,999
$
—
$
—
$
—
b
$
—
b
—
b
$
—
Blaize
,
Inc.,
D,
2/28/24
.
—
—
—
—
—
b
—
b
—
b
—
Phononic
Devices,
Inc.
.
2,022,312
—
—
—
(417,195)
1,605,117
513,050
—
Phononic
Devices,
Inc.,
F
10,389,829
—
—
—
(4,345,425)
6,044,404
2,970,061
—
Interest
Phononic
,
Inc.,
Advance
Term
Loan,
B,
12%,
PIK,
7/31/26
..........
101,784
13,103
c
—
—
(2,297)
112,590
128,884
13,249
Phononic
,
Inc.,
Advance
Term
Loan,
D,
12%,
PIK,
12/01/25
......
242,282
30,798
c
—
—
(6,573)
266,507
307,736
31,146
Phononic
,
Inc.,
Term
Loan,
A,
12%,
PIK,
1/17/24
.
506,783
65,510
c
—
—
(3,842)
568,451
626,697
66,217
Phononic
,
Inc.,
Term
Loan,
C,
12%,
PIK,
8/25/24
98,759
12,559
c
—
—
(2,495)
108,823
124,845
12,700
Total
Affiliated
Securities
(Value
is
0.2%
of
Net
Assets)
..........
$26,882,750
$6,946,969
$—
$
—
$
(4,777,827)
$8,705,892
$123,312
*
In
U.S.
dollars
unless
otherwise
indicated.
a
As
of
April
30,
2022,
no
longer
held
by
the
fund.
b
As
of
April
30,
2022,
no
longer
an
affiliate.
c
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
10.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
76
franklintempleton.com
Annual
Report
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
year ended
April
30,
2022,
the
Funds
did
not
use
the
Global
Credit
Facility.
12.
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
April
30,
2022,
in
valuing
the
Funds'
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Airlines
..............................
$
17,736,333
$
—
$
—
$
17,736,333
Auto
Components
......................
20,187,911
—
—
20,187,911
Automobiles
..........................
90,643,237
—
—
90,643,237
Beverages
...........................
68,964,359
—
—
68,964,359
Biotechnology
.........................
9,271,844
—
—
9,271,844
Capital
Markets
........................
186,944,324
—
—
186,944,324
Chemicals
...........................
48,052,447
—
—
48,052,447
Commercial
Services
&
Supplies
...........
20,909,733
—
6,164,029
27,073,762
Electric
Utilities
........................
23,449,526
—
—
23,449,526
Entertainment
.........................
20,984,542
—
—
20,984,542
Equity
Real
Estate
Investment
Trusts
(REITs)
.
132,895,229
—
—
132,895,229
Food
Products
........................
19,055,629
—
—
19,055,629
Health
Care
Equipment
&
Supplies
.........
212,224,162
—
14,889,942
227,114,104
Health
Care
Providers
&
Services
..........
146,051,601
—
—
146,051,601
Health
Care
Technology
.................
47,753,869
—
—
47,753,869
Hotels,
Restaurants
&
Leisure
.............
85,100,548
—
29,918,137
115,018,685
Industrial
Conglomerates
................
77,999,324
—
—
77,999,324
Interactive
Media
&
Services
..............
209,905,147
—
—
209,905,147
Internet
&
Direct
Marketing
Retail
..........
331,563,157
—
—
331,563,157
IT
Services
...........................
401,806,329
—
8,371,768
410,178,097
Leisure
Products
.......................
—
—
68,576,928
68,576,928
Life
Sciences
Tools
&
Services
............
228,435,344
—
—
228,435,344
Machinery
............................
25,446,400
—
—
25,446,400
Pharmaceuticals
.......................
98,870,281
—
—
98,870,281
11.
Credit
Facility
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
77
franklintempleton.com
Annual
Report
Level
1
Level
2
Level
3
Total
Franklin
Growth
Opportunities
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Professional
Services
...................
$
115,620,518
$
—
$
—
$
115,620,518
Road
&
Rail
..........................
89,392,134
—
—
89,392,134
Semiconductors
&
Semiconductor
Equipment
.
270,992,992
—
—
270,992,992
Software
.............................
873,674,759
—
17,832,356
891,507,115
Technology
Hardware,
Storage
&
Peripherals
.
250,637,961
—
—
250,637,961
Textiles,
Apparel
&
Luxury
Goods
..........
48,406,794
—
—
48,406,794
Convertible
Preferred
Stocks
...............
—
—
43,394,108
43,394,108
Preferred
Stocks
........................
—
—
64,930,789
64,930,789
Warrants
..............................
—
—
—
a
—
Corporate
Bonds
........................
—
—
301,800
301,800
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
164,640,337
—
—
164,640,337
Total
Investments
in
Securities
...........
$4,337,616,771
$—
$254,379,857
$4,591,996,628
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
112,914,494
—
—
112,914,494
Airlines
..............................
64,567,682
—
—
64,567,682
Banks
...............................
70,686,994
—
—
70,686,994
Biotechnology
.........................
204,264,273
—
—
204,264,273
Building
Products
......................
25,225,008
—
—
25,225,008
Capital
Markets
........................
93,965,106
—
—
93,965,106
Communications
Equipment
..............
24,812,502
—
—
24,812,502
Construction
&
Engineering
...............
69,596,645
—
—
69,596,645
Diversified
Consumer
Services
............
16,226,640
—
—
16,226,640
Electronic
Equipment,
Instruments
&
Components
........................
27,613,236
—
—
27,613,236
Equity
Real
Estate
Investment
Trusts
(REITs)
.
81,380,756
—
—
81,380,756
Food
&
Staples
Retailing
.................
44,221,575
—
—
44,221,575
Food
Products
........................
112,916,162
—
—
112,916,162
Health
Care
Equipment
&
Supplies
.........
136,320,968
—
—
136,320,968
Health
Care
Providers
&
Services
..........
84,017,525
—
—
84,017,525
Health
Care
Technology
.................
96,203,590
—
—
96,203,590
Hotels,
Restaurants
&
Leisure
.............
150,815,380
—
15,035,973
165,851,353
Household
Durables
....................
89,563,594
—
—
89,563,594
Internet
&
Direct
Marketing
Retail
..........
15,637,344
—
—
15,637,344
IT
Services
...........................
190,930,970
—
—
190,930,970
Life
Sciences
Tools
&
Services
............
15,239,710
—
—
15,239,710
Machinery
............................
98,923,689
—
—
98,923,689
Personal
Products
.....................
27,027,516
—
—
27,027,516
Pharmaceuticals
.......................
58,398,135
—
—
58,398,135
Professional
Services
...................
28,833,168
—
—
28,833,168
Semiconductors
&
Semiconductor
Equipment
.
165,935,972
—
—
165,935,972
Software
.............................
291,189,689
—
—
291,189,689
Specialty
Retail
........................
164,447,451
—
—
164,447,451
Textiles,
Apparel
&
Luxury
Goods
..........
50,754,104
—
—
50,754,104
Trading
Companies
&
Distributors
..........
112,721,146
—
—
112,721,146
Convertible
Preferred
Stocks
...............
—
—
57,217,523
57,217,523
Preferred
Stocks
........................
—
—
23,482,799
a
23,482,799
Warrants
..............................
—
—
—
a
—
Corporate
Bonds
........................
—
—
750,000
750,000
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
78
franklintempleton.com
Annual
Report
Level
1
Level
2
Level
3
Total
Franklin
Small
Cap
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Short
Term
Investments
...................
$
156,893,725
—
—
$
156,893,725
Total
Investments
in
Securities
...........
$2,882,244,749
$—
$96,486,295
$2,978,731,044
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
61,800,759
$
—
$
—
61,800,759
Airlines
..............................
53,671,319
—
—
53,671,319
Banks
...............................
40,864,232
—
—
40,864,232
Biotechnology
.........................
111,797,589
—
—
111,797,589
Building
Products
......................
41,701,209
—
—
41,701,209
Capital
Markets
........................
156,063,911
—
—
156,063,911
Commercial
Services
&
Supplies
...........
46,296,296
—
—
46,296,296
Communications
Equipment
..............
52,584,350
—
—
52,584,350
Containers
&
Packaging
.................
81,044,740
—
—
81,044,740
Electrical
Equipment
....................
96,835,799
—
—
96,835,799
Electronic
Equipment,
Instruments
&
Components
........................
122,400,201
—
—
122,400,201
Entertainment
.........................
11,173,826
—
—
11,173,826
Equity
Real
Estate
Investment
Trusts
(REITs)
.
120,188,428
—
—
120,188,428
Food
Products
........................
32,280,430
—
—
32,280,430
Health
Care
Equipment
&
Supplies
.........
215,972,382
—
—
215,972,382
Health
Care
Providers
&
Services
..........
55,577,804
—
—
55,577,804
Health
Care
Technology
.................
76,069,325
—
—
76,069,325
Hotels,
Restaurants
&
Leisure
.............
264,266,261
—
—
264,266,261
Household
Durables
....................
46,387,826
—
—
46,387,826
Interactive
Media
&
Services
..............
60,310,816
—
—
60,310,816
Internet
&
Direct
Marketing
Retail
..........
16,065,956
—
—
16,065,956
IT
Services
...........................
165,849,867
21,132,893
—
186,982,760
Leisure
Products
.......................
27,367,200
—
52,848,244
80,215,444
Life
Sciences
Tools
&
Services
............
238,759,100
—
—
238,759,100
Machinery
............................
59,955,763
—
—
59,955,763
Oil,
Gas
&
Consumable
Fuels
.............
30,370,571
—
—
30,370,571
Personal
Products
.....................
40,991,503
—
—
40,991,503
Pharmaceuticals
.......................
53,594,540
—
—
53,594,540
Professional
Services
...................
132,643,848
—
—
132,643,848
Road
&
Rail
..........................
105,912,214
—
—
105,912,214
Semiconductors
&
Semiconductor
Equipment
.
224,129,367
—
—
224,129,367
Software
.............................
692,510,113
—
—
692,510,113
Specialty
Retail
........................
188,095,022
—
—
188,095,022
Textiles,
Apparel
&
Luxury
Goods
..........
108,659,730
—
—
108,659,730
Trading
Companies
&
Distributors
..........
75,935,099
—
—
75,935,099
Convertible
Preferred
Stocks
...............
—
—
57,600,420
57,600,420
Preferred
Stocks
........................
—
—
6,044,404
6,044,404
Warrants
..............................
—
—
67,020
67,020
Corporate
Bonds
........................
—
—
4,725,000
4,725,000
Senior
Floating
Rate
Interests
...............
—
—
1,056,371
1,056,371
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
218,340,623
—
—
218,340,623
Total
Investments
in
Securities
...........
$4,126,468,019
$21,132,893
b
$122,341,459
$4,269,942,371
a
Includes
securities
determined
to
have
no
value
at
April
30,
2022.
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
79
franklintempleton.com
Annual
Report
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 year.
At
April
30,
2022,
the
reconciliation is
as follows:
b
Includes
foreign
securities
valued
at
$21,132,893,
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.
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Airlines
..........
$
35,000,000
$
—
$
(35,000,000)
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Capital
Markets
.....
44,235,321
—
(41,447,045)
—
—
—
—
(2,788,276)
—
—
Commercial
Services
&
Supplies
........
—
6,149,572
—
—
—
—
—
14,457
6,164,029
14,457
Health
Care
Equipment
&
Supplies
.......
20,963,721
49,090,655
(50,606,085)
—
—
—
—
(4,558,349)
14,889,942
(1,351,149)
Hotels,
Restaurants
&
Leisure
.........
—
15,142,819
—
—
—
—
—
14,775,318
29,918,137
14,775,318
IT
Services
........
11,524,036
20,158,530
(10,353,395)
—
—
—
—
(12,957,403)
8,371,768
(11,786,763)
Leisure
Products
....
—
19,730,229
—
—
—
—
—
48,846,699
68,576,928
48,846,699
Professional
Services
.
26,204,625
—
(16,479,338)
—
—
—
—
(9,725,287)
—
—
Software
..........
13,792,310
12,004,812
(12,499,971)
—
—
—
—
4,535,205
17,832,356
5,827,544
Convertible
Preferred
Stocks
:
Leisure
Products
....
27,858,025
—
(19,730,229)
—
—
—
—
(8,127,796)
—
—
Software
..........
31,034,048
20,330,471
—
—
—
—
—
(7,970,411)
43,394,108
(7,970,411)
Preferred
Stocks
:
Airlines
..........
22,526,068
—
(17,499,998)
—
—
—
—
(5,026,070)
—
—
Automobiles
.......
51,786,112
—
(22,294,007)
—
—
—
—
(29,492,105)
—
—
Commercial
Services
&
Supplies
........
12,164,900
921,889
—
—
—
—
—
(3,499,109)
9,587,680
(3,499,109)
Food
&
Staples
Retailing
16,925,725
—
(15,142,819)
—
—
—
—
(1,782,906)
—
—
Health
Care
Providers
&
Services
........
28,448,746
—
—
—
—
—
—
(6,636,150)
21,812,596
(6,636,150)
IT
Services
........
21,029,873
—
(14,451,387)
—
—
—
—
(6,578,486)
—
—
Software
..........
76,397,495
—
(13,366,762)
—
—
—
—
(29,500,220)
33,530,513
(23,724,665)
Warrants
:
Food
&
Staples
Retailing
—
c
—
—
c
—
—
—
—
—
—
—
Software
..........
—
—
c
—
—
—
—
—
—
—
c
—
Corporate
Bonds
:
Software
..........
—
251,500
—
—
—
—
—
50,300
301,800
50,300
Escrows
and
Litigation
Trusts
...........
—
—
c
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$439,891,005
$143,780,477
$(268,871,036)
$—
$—
$—
$—
$(60,420,589)
$254,379,857
$14,546,071
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Airlines
..........
20,000,000
—
(20,000,000)
—
—
—
—
—
—
—
Capital
Markets
.....
30,328,348
—
(28,364,000)
—
—
—
—
(1,964,348)
—
—
Consumer
Finance
...
7,142,860
—
(7,142,860)
—
—
—
—
—
—
—
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
80
franklintempleton.com
Annual
Report
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Small
Cap
Growth
Fund
(continued)
Assets:
Investments
in
Securities:
Common
Stocks:
Hotels,
Restaurants
&
Leisure
.........
$
—
$
7,649,483
$
—
$
—
$
—
$
—
$
—
$
7,386,490
$
15,035,973
$
7,386,490
IT
Services
........
11,554,574
—
(10,000,003)
—
—
—
—
(1,554,571)
—
—
Professional
Services
.
22,414,698
—
(14,095,961)
—
—
—
—
(8,318,737)
—
—
Road
&
Rail
.......
7,500,000
—
(7,500,000)
—
—
—
—
—
—
—
Software
..........
15,494,946
8,525,027
(14,025,027)
—
—
—
—
(9,994,946)
—
—
Convertible
Preferred
Stocks
:
Diversified
Consumer
Services
........
14,854,244
—
—
—
—
—
—
(2,227,244)
12,627,000
(2,227,244)
Software
..........
—
37,499,994
—
—
—
—
—
(4,286,941)
33,213,053
(4,286,941)
Specialty
Retail
.....
—
19,999,999
—
—
—
—
—
(8,622,529)
11,377,470
(8,622,529)
Textiles,
Apparel
&
Luxury
Goods
....
15,570,065
—
(14,999,998)
—
—
—
—
(570,067)
—
—
Preferred
Stocks
:
Airlines
..........
19,308,057
—
(14,999,997)
—
—
—
—
(4,308,060)
—
—
Auto
Components
....
8,082,642
c
—
—
—
—
—
—
777,825
8,860,467
c
777,825
Automobiles
.......
46,716,172
—
(19,762,395)
—
—
—
—
(26,953,777)
—
—
Commercial
Services
&
Supplies
........
12,139,766
920,001
—
—
—
—
—
(3,491,882)
9,567,885
(3,491,882)
Food
&
Staples
Retailing
8,380,798
—
(7,649,483)
—
—
—
—
(731,315)
—
—
Software
..........
24,381,344
—
—
—
—
—
—
(19,326,897)
5,054,447
(19,326,89
7
)
Specialty
Retail
.....
21,926,375
4,500,003
(20,833,337)
—
—
—
—
(5,593,041)
—
—
Warrants
:
Food
&
Staples
Retailing
—
c
—
—
c
—
—
—
—
—
—
—
Software
..........
—
—
c
—
—
—
—
—
—
—
c
—
Corporate
Bonds
:
Software
..........
—
625,000
—
—
—
—
—
125,000
750,000
125,000
Escrows
and
Litigation
Trusts
:
—
—
c
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$285,794,889
$79,719,507
$(179,373,061)
$—
$—
$—
$—
$(89,655,040)
$96,486,295
$(29,666,178)
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Capital
Markets
.....
18,263,167
—
(15,557,225)
—
—
—
—
(2,705,942)
—
—
Consumer
Finance
...
9,633,710
—
(9,633,710)
—
—
—
—
—
—
—
IT
Services
........
10,310,127
—
(8,922,986)
—
—
—
—
(1,387,141)
—
—
Leisure
Products
....
—
14,052,061
—
—
—
—
—
38,796,183
52,848,244
38,796,183
Road
&
Rail
.......
6,752,000
—
(6,752,000)
—
—
—
—
—
—
—
Software
..........
18,260,372
10,046,501
(16,528,101)
—
—
—
—
(11,778,772)
—
—
Convertible
Preferred
Stocks
:
Diversified
Consumer
Services
........
8,878,072
—
—
—
—
—
—
(1,331,178)
7,546,894
(1,331,178)
Leisure
Products
....
20,938,178
—
(14,052,061)
—
—
—
—
(6,886,117)
—
—
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
81
franklintempleton.com
Annual
Report
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
April
30,
2022,
are
as
follows:
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Assets:
Investments
in
Securities:
Convertible
Preferred
Stocks:
Semiconductors
&
Semiconductor
Equipment
.......
$
—
$
47
$
—
$
—
$
—
$
—
$
—
$
1,605,070
$
1,605,117
$
1,605,070
Software
..........
42,644,651
18,174,080
—
—
—
—
—
(12,370,322)
48,448,409
(12,370,322)
Textiles,
Apparel
&
Luxury
Goods
....
9,271,156
—
(8,931,711)
—
—
—
—
(339,445)
—
—
Preferred
Stocks
:
Automobiles
.......
18,213,603
—
(7,135,914)
—
—
—
—
(11,077,689)
—
—
Semiconductors
&
Semiconductor
Equipment
.......
10,389,829
—
—
—
—
—
—
(4,345,425)
6,044,404
(4,345,425)
Warrants
:
Semiconductors
&
Semiconductor
Equipment
.......
2,022,312
—
(47)
—
—
—
—
(2,022,265)
—
—
Software
..........
—
c
—
c
—
—
—
—
—
67,020
67,020
67,020
Corporate
Bonds
:
Software
..........
—
4,725,000
—
—
—
—
—
—
4,725,000
—
Senior
Floating
Rate
Interests
:
Semiconductors
&
Semiconductor
Equipment
.......
949,608
121,970
—
—
—
3
,
256
—
(1
8
,
463
)
1,056,371
(1
8
,
463
)
Escrows
and
Litigation
Trusts
...........
—
—
c
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$176,526,785
$47,119,659
$(87,513,755)
$—
$—
$3,256
$—
$(13,794,486)
$122,341,459
$22,402,885
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.
c
Includes
securities
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stock:
Health
Care
Equipment
&
Supplies.
$14,889,942
Market
comparables
Discount
for
lack
of
marketability
9.0%
Decrease
c
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
82
franklintempleton.com
Annual
Report
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
EV
/
EBITDA
multiple
17.0x
Increase
c
EV
/
revenue
multiple
3.1x
Increase
c
Volatility
of
peers
41.2%
Decrease
Hotels,
Restaurants
&
Leisure.
.
.
.
 29,918,137
Market
comparables
Discount
for
lack
of
marketability
1.4%
Decrease
IT
Services.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 8,371,768
Market
comparables
Discount
for
lack
of
marketability
22.1%
Decrease
c
EV
/
revenue
multiple
10.9x
–
22.2x
Increase
c
Leisure
Products
............
68,576,928
Market
comparables
Discount
for
lack
of
marketability
17.1%
Decrease
c
EV
/
revenue
multiple
6.2x
Increase
d
Software.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17,832,356
Market
comparables
Discount
for
lack
of
marketability
8.8%
Decrease
c
Convertible
Preferred
Stocks:
Software.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
33,254,485
Market
comparables
Discount
for
lack
of
marketability
14.9%
–
18.1%
(16.6%)
Decrease
c
EV
/
revenue
multiple
16.0x
–
54.1x
Increase
c
Volatility
of
peers
54.3%
Decrease
Preferred
Stocks:
Commercial
Services
&
Supplies
.
9,587,680
Discounted
cash
flow
Discount
for
lack
of
marketability
11.6%
Decrease
c
Discount
rate
14.9%
Decrease
Long
term
growth
rate
5.0%
Increase
Market
comparables
EV
/
revenue
multiple
7.9x
Increase
Volatility
of
peers
48.0%
Increase
Health
Care
Providers
&
Services.
17,452,358
Discounted
cash
flow
Discount
for
lack
of
marketability
7.4%
Decrease
Discount
rate
9.9%
Decrease
d
Long
term
growth
rate
5.0%
Increase
c
Software
...................
32,905,889
Discounted
cash
flow
Discount
for
lack
of
marketability
14.3%
Decrease
c
Discount
rate
11.3%
Decrease
c
Terminal
value
multiple
34.6x
Increase
c
Volatility
of
peers
50.0%
Decrease
Market
comparables
Discount
for
lack
of
marketability
10.5%
Decrease
c
EV
/
revenue
multiples
5.8x
Increase
Volatility
of
peers
53.5%
Decrease
All
Other
Investments.
.
.
.
21,590,314
e,f 
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$254,379,857
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
83
franklintempleton.com
Annual
Report
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stock:
Hotels,
Restaurants
&
Leisure
...
$15,035,973
Market
comparables
Discount
for
lack
of
marketability
1.4%
Decrease
Convertible
Preferred
Stocks:
Diversified
Consumer
Services
..
12,627,000
Discounted
cash
flow
Discount
for
lack
of
marketability
18.0%
Decrease
c
Discount
rate
17.4%
Decrease
d
Long
term
growth
rate
5.0%
Increase
Volatility
of
peers
64.8%
Decrease
Software
...................
6,824,162
Market
comparables
EV
/
revenue
multiple
35.6x
Increase
c
Specialty
Retail
..............
11,377,470
Market
comparables
Discount
for
lack
of
marketability
19.4%
Decrease
c
EV
/
revenue
multiple
2.2x
–
2.9x
Increase
 c
Preferred
Stocks:
Auto
Components
............
8,860,467
Market
comparables
Discount
for
lack
of
marketability
12.8%
Decrease
c
EV
/
EBITDA
multiple
19.9x
Increase
c
Volatility
of
peers
38.8%
Increase
Commercial
Services
&
Supplies
9,567,885
Discounted
cash
flow
Discount
for
lack
of
marketability
11.6%
Decrease
c
Discount
rate
14.9%
Decrease
Long
term
growth
rate
5.0%
Increase
Market
comparables
EV
/
revenue
multiple
6.2x
Increase
Volatility
of
peers
48.0%
Increase
Software
...................
3,681,140
Market
comparables
Discount
for
lack
of
marketability
12.0%
Decrease
c
EV
/
revenue
multiple
1.0x
–
1.7x
Increase
c
Volatility
of
peers
36.3%
Decrease
c
All
Other
Investments.
.
.
.
.
.
.
.
.
28,512,198
e,f 
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
$96,486,295
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
84
franklintempleton.com
Annual
Report
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stock:
Leisure
Products
............
$52,848,244
Market
comparables
Discount
for
lack
of
marketability
17.1%
Decrease
c
EV
/
revenue
multiple
6.2x
Increase
d
Convertible
Preferred
Stocks:
Diversified
Consumer
Services
..
7,546,894
Discounted
cash
flow
Discount
for
lack
of
marketability
18.0%
Decrease
c
Discount
rate
17.4%
Decrease
c
Long
term
growth
rate
5.0%
Increase
Volatility
of
peers
64.8%
Decrease
Software.
.
.
.
.
.
.
.
.
.
.
.
.
.
33,396,994
Discounted
cash
flow
Discount
for
lack
of
marketability
16.6%
Decrease
Discount
rate
18.4%
Decrease
c
Long
term
growth
rate
2.5%
Increase
Volatility
of
peers
64.2%
Decrease
Market
comparables
Discount
for
lack
of
marketability
14.9%
Decrease
c
EV
/
revenue
multiple
16.0x
–
35.6x
(24.2x)
Increase
c
Preferred
Stocks:
Semiconductors
&
Semiconductor
Equipment.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6,044,404
Discounted
cash
flow
Discount
for
lack
of
marketability
14.3%
Decrease
Discount
rate
12.8%
Decrease
c
Terminal
value
multiple
18.0x
Increase
c
Market
comparables
EV
/
revenue
multiple
4.7x
–
8.1x
Increase
c
Volatility
of
peers
41.6%
Decrease
c
All
Other
Investments.
.
.
.
.
.
.
.
.
22,504,923
e,f 
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$122,341,459
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
c
Represents
a
significant
impact
to
fair
value
but
not
net
assets.
d
Represents
a
significant
impact
to
fair
value
and
net
assets.
e
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
private
transaction
prices
or
non-public
third
party
pricing
information
which
is
unobservable.
f
Includes
securities
determined
to
have
no
value
at
April
30,
2022.
Abbreviations
List
EBITDA
-
Earnings
before
interest,
taxes,
depreciation
and
amortization
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
85
franklintempleton.com
Annual
Report
13.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-
04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
LIBOR
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
14.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
EV
-
Enterprise
value
Cu
r
rency
USD
United
States
Dollar
Selected
Portfolio
ADR
American
Depositary
Receipt
LIBOR
London
Inter-Bank
Offered
Rate
NYRS
New
York
Registry
Shares
PIK
Payment-In-Kind
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Report
of
Independent
Registered
Public
Accounting
Firm
86
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Strategic
Series
and
Shareholders
of
Franklin
Growth
Opportunities
Fund,
Franklin
Small
Cap
Growth
Fund
and
Franklin
Small-Mid
Cap
Growth
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
Franklin
Growth
Opportunities
Fund,
Franklin
Small
Cap
Growth
Fund
and
Franklin
Small-Mid
Cap
Growth
Fund
(three
of
the
funds
constituting
Franklin
Strategic
Series,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
April
30,
2022,
the
related
statements
of
operations
for
the
year
ended
April
30,
2022,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2022
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
April
30,
2022,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2022
and
each
of
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2022
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
April
30,
2022
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
PricewaterhouseCoopers
LLP
San
Francisco,
California
June
16,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Strategic
Series
Tax
Information
(unaudited)
87
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amount
s
on
their
tax
returns.
The
following
tax
information
for
the
Funds
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
their
fiscal
year.
The
Funds
hereby
report
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
April
30,
2022:
Pursuant
to:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
$474,702,293
$475,153,541
$643,745,286
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$14,429,639
$15,289,463
$14,666,591
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$16,020,101
$15,289,463
$15,184,362
Short-Term
Capital
Gain
Dividends
Distributed
§871(k)(2)(C)
$20,782,601
$97,151,885
$145,205,359
Franklin
Strategic
Series
Board
Members
and
Officers
88
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1991
119
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
100
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
120
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Strategic
Series
89
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
120
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
120
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
120
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Strategic
Series
90
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
100
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2013
131
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
2013
and
Trustee
since
1991
120
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
Strategic
Series
91
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Sonal
Desai,
Ph.D.
(1963)
Vice
President
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Edward
D.
Perks
(1970)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
President
and
Director,
Franklin
Advisers,
Inc.
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Strategic
Series
92
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Strategic
Series
Shareholder
Information
93
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
STRATEGIC
SERIES
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
April
12,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Strategic
Series
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Funds.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
Franklin
Strategic
Series
Shareholder
Information
94
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Annual
Report
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
January
31,
2022.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Growth
Opportunities
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
multi-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Small
Cap
Growth
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
small-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
five-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
discussed
this
performance
with
management
and
management
reported
that
the
Fund’s
one-,
three-
and
five-year
performance
ended
January
31,
2022
exceeded
that
of
its
benchmark,
the
Russell
2000
Growth
Index.
Management
explained
that
the
Fund’s
one-year
performance
ended
January
31,
2022
drove
the
Fund’s
relative
underperformance
for
the
three-year
period
versus
the
Performance
Universe.
Management
further
explained
that
the
Fund’s
relative
bias
toward
smaller
capitalization
stocks,
and
stock
selection
were
the
primary
detractors
from
relative
performance
over
the
one-year
period,
and
that
stock
selection
was
the
primary
detractor
from
relative
performance
over
all
reporting
periods.
Management
also
explained
its
commitment
to
the
Fund’s
investment
style
and
focus
on
higher-quality
small-cap
growth
companies.
The
Board
concluded
that
the
Fund’s
Management
Agreement
should
be
continued
for
an
additional
one-year
period,
and
management’s
efforts
should
continue
to
be
monitored.
Franklin
Small-Mid
Cap
Growth
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
mid-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
three-
and
five-year
periods
was
above
the
median
of
its
Performance
Universe
and
exceeded
16.50%.
The
Board
concluded
that
the
Fund’s
performance
was
acceptable.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
each
Fund
and
for
each
of
Franklin
Strategic
Series
Shareholder
Information
95
franklintempleton.com
Annual
Report
the
other
funds
in
each
Fund’s
respective
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Franklin
Growth
Opportunities
Fund
included
the
Fund
and
17
other
multi-cap
growth
funds.
The
Expense
Group
for
the
Franklin
Small
Cap
Growth
Fund
included
the
Fund
and
14
other
small-cap
growth
funds.
The
Expense
Group
for
the
Franklin
Small-Mid
Cap
Growth
Fund
included
the
Fund
and
12
other
mid-cap
growth
funds.
The
Board
noted
that
the
Management
Rates
and
actual
total
expense
ratios
for
these
Funds
were
below
the
medians
and
in
the
first
quintile
(least
expensive)
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
these
Funds
are
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds’
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Franklin
Strategic
Series
Shareholder
Information
96
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Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
each
Fund's
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
FSS1
A
06/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
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and/or
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Annual
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April
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2022
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Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
April
30,
2022,
the
U.S.
economy
showed
progress
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment
and
rising
wages
and
personal
consumption.
Growth
mostly
accelerated
in
2021
as
the
reopening
of
businesses,
widespread
vaccinations
and
federal
assistance
programs
boosted
consumer
spending,
excepting
slower
third-quarter
growth
as
the
swiftly
spreading
Delta
variant
hindered
global
supply
chains.
The
U.S.
economy
contracted
in
2022’s
first
quarter
given
a
record
trade
deficit
and
a
decline
in
inventory
investment.
Inflation
increased
during
the
12-month
period,
influenced
by
pandemic-related
supply
and
demand
imbalances,
higher
energy
prices,
Russia’s
invasion
of
Ukraine
and
broader
price
pressures.
During
most
of
the
period,
the
U.S.
Federal
Reserve
(Fed)
continued
quantitative
easing
measures
to
bolster
credit
markets
and
encourage
economic
activity.
However,
the
Fed
decreased
its
monthly
asset
purchases
starting
in
November
2021,
increased
its
tapering
in
subsequent
months
and
ended
purchases
in
March
2022.
To
support
its
goals
of
maximizing
employment
and
returning
long-term
annual
inflation
to
2%,
the
Fed
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%
at
its
March
meeting.
Shortly
after
the
reporting
period,
at
its
May
meeting,
the
Fed
raised
its
key
target
rate
again
to
a
range
of
0.75%–1.00%
and
stated
its
anticipation
of
ongoing
increases.
Although
stocks
benefited
early
in
the
period
from
the
economic
recovery,
during
the
period’s
last
four
months,
investor
concerns
about
inflation,
geopolitics
and
interest
rates
reversed
most
gains,
and
most
bond
valuations
also
declined.
In
this
environment,
U.S.
stocks,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
posted
a
+0.21%
total
return
for
the
12-month
period.
1
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
We
believe
active,
professional
investment
management
serves
investors
well.
We
also
recognize
the
important
role
of
financial
professionals
in
today’s
markets
and
encourage
investors
to
continue
to
seek
their
advice.
Amid
changing
markets
and
economic
conditions,
we
are
confident
investors
with
a
well-diversified
portfolio
and
a
patient,
long-term
outlook
should
be
well-positioned
for
the
years
ahead.
In
addition,
Franklin
Strategic
Series’
annual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
All
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Edward
Perks,
CFA
President
and
Chief
Executive
Officer
–
Investment
Management
Franklin
Strategic
Series
This
letter
reflects
our
analysis
and
opinions
as
of
April
30,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Economic
and
Market
Overview
3
Franklin
Biotechnology
Discovery
Fund
4
Franklin
Natural
Resources
Fund
11
Financial
Highlights
and
Schedules
of
Investments
19
Financial
Statements
34
Notes
to
Financial
Statements
38
Report
of
Independent
Registered
Public
Accounting
Firm
52
Tax
Information
53
Board
Members
and
Officers
54
Shareholder
Information
59
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Economic
and
Market
Overview
U.S.
equities,
as
measured
by
the
Standard
&
Poor’s
500
Index,
posted
a
+0.21%
total
return
for
the
12
months
ended
April
30,
2022.
1
Stocks
benefited
from
the
continued
economic
recovery,
implementation
of
COVID-19
vaccination
programs
and
resumption
of
both
business
and
leisure
travel.
Higher
wages
and
strong
household
balance
sheets
contributed
to
increased
consumer
spending,
particularly
on
goods.
A
rebound
in
corporate
earnings
and
the
passage
of
a
bipartisan
infrastructure
bill
further
bolstered
investor
sentiment.
However,
concerns
surrounding
inflation,
geopolitical
stability
and
interest
rates
erased
most
gains
in
the
final
third
of
the
12-month
period.
Elevated
demand
combined
with
supply
chain
disruptions
led
to
the
highest
inflation
since
1981.
Russia’s
invasion
of
Ukraine
injected
further
uncertainty
into
financial
markets,
provoking
significant
volatility
in
commodity
and
equity
prices.
Rising
interest
rates
also
pressured
stocks,
as
borrowing
costs
began
to
increase
from
historically
low
levels.
Gross
domestic
product
growth
was
robust
in
2021
before
contracting
in
the
first
quarter
of
2022
amid
lower
investments
in
inventories
and
a
growing
trade
deficit.
Nonetheless,
both
exports
and
imports
increased
significantly
and
industrial
production
grew
robustly.
However,
rising
prices
precipitated
a
notable
decline
in
consumer
confidence,
despite
high
spending
levels.
The
inflation
rate
was
notably
elevated
during
the
12-month
period
amid
increased
demand
and
supply-chain
bottlenecks.
Consequently,
the
personal
consumption
expenditures
index,
a
measure
of
inflation,
surged
during
the
period,
representing
the
highest
12-month
increase
in
decades.
The
unemployment
rate
declined
from
6.0%
in
April
2021
to
3.6%
in
April
2022
as
job
openings
increased,
but
a
relative
lack
of
available
workers
fueled
wage
growth,
adding
to
some
investors’
inflation
concerns.
In
an
effort
to
control
inflation,
the
U.S.
Federal
Reserve
(Fed)
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%
in
March
2022,
the
first
such
increase
since
2018.
The
Fed
noted
in
its
March
meeting
that
strength
in
the
U.S.
job
market
and
continued
inflationary
pressure,
exacerbated
by
the
war
in
Ukraine,
meant
it
anticipated
making
further
increases
to
the
federal
funds
target
rate.
Furthermore,
the
Fed
said
it
expected
to
begin
reducing
its
bond
holdings
at
a
future
meeting.
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
April
30,
2022.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
4
franklintempleton.com
Annual
Report
Franklin
Biotechnology
Discovery
Fund
This
annual
report
for
Franklin
Biotechnology
Discovery
Fund
covers
the
fiscal
year
ended
April
30,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
securities
of
biotechnology
companies
and
discovery
research
firms
located
in
the
U.S.
and
other
countries.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-28.56%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
NASDAQ
Biotechnology
Index
®
,
which
tracks
U.S.-
and
international-based
biotechnology
stocks,
posted
a
-22.12%
cumulative
total
return.
1
Also
in
comparison,
the
Standard
&
Poor’s
500
Index
(S&P
500
®
),
which
is
a
broad
measure
of
the
U.S.
stock
market,
posted
a
+0.21%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
7
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
We
are
research-driven,
fundamental
investors,
pursuing
a
growth
strategy.
As
bottom-up
investors
focusing
primarily
on
individual
securities,
we
choose
companies
that
have
identifiable
drivers
of
future
earnings
growth
and
that
present,
in
our
opinion,
the
best
trade-off
between
potential
earnings
growth,
business
and
financial
risk,
and
valuation.
Also,
in
seeking
sustainable
growth
characteristics,
we
look
for
companies
that
we
believe
can
produce
sustainable
earnings
growth
and
cash
flow
growth
or
the
potential
to
generate
income.
We
rely
on
a
team
of
analysts
to
help
provide
in-depth
industry
expertise
and
use
both
qualitative
and
quantitative
analysis
to
evaluate
companies
for
distinct
and
sustainable
competitive
advantages
likely
to
lead
to
growth
in
earnings
and/or
share
price.
Competitive
advantages,
such
as
a
particular
product
niche,
proven
technology,
sound
financial
position
and
strong
management,
are
all
factors
we
believe
may
contribute
to
strong
growth
potential.
Manager’s
Discussion
Biotechnology
industry
stocks
trended
weaker
throughout
most
of
the
12-month
period
under
review
and
relinquished
some
of
the
massive
gains
seen
in
2020
and
early
2021.
Pharmaceuticals
generally
held
up
better
than
their
biotechnology
counterparts,
while
life
sciences
tools
and
services
stocks
fared
worse,
especially
in
the
latter
half
of
the
period
when
technology-oriented
companies
were
broadly
shunned
by
investors.
As
it
pertained
to
the
Fund’s
core
biotechnology
holdings,
many
investors
began
realizing
that
while
COVID-19
was
improving
in
the
U.S.,
there
were
parts
of
the
world
more
seriously
impacted
by
the
virus.
This
development,
along
with
the
emergence
of
variant
coronavirus
strains
(namely
Delta
and
Omicron),
helped
sustain
investors’
focus
on
companies
working
to
combat
them,
as
the
pandemic
not
only
brought
attention
to
biotechnology
companies
developing
vaccines
but
also
those
that
were
not.
The
sector
eventually
began
to
fall
out
of
favor
in
late
2021,
amid
the
rotation
away
from
growth
stocks;
setbacks
in
clinical
trials;
delayed
drug
approvals;
media
coverage
positing
that
the
U.S.
Federal
Trade
Commission
would
take
a
more
aggressive
stance
on
biotechnology
mergers
and
acquisitions
(M&A),
despite
clear
evidence
that
biopharma
companies
know
well
how
to
follow
M&A
guidelines;
and
a
somewhat
hyped
yet
(we
believe)
increasingly
unlikely
scenario
where
U.S.
drug
price
regulation
will
be
included
as
part
of
near-term
legislation.
In
our
view,
the
overall
bullish
longer-term
growth
story
for
biotechnology
innovations
and
advancements
remained
intact
despite
the
recent
pullback
in
underlying
equities,
and
any
drug
pricing
reforms,
which
we
believe
are
still
unlikely
in
Portfolio
Composition
4/30/22
%
of
Total
Net
Assets
Biotechnology
75.9%
Pharmaceuticals
14.8%
Life
Sciences
Tools
&
Services
6.7%
Health
Care
Providers
&
Services
1.3%
Short-Term
Investments
&
Other
Net
Assets
1.3%
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
23
.
Franklin
Biotechnology
Discovery
Fund
5
franklintempleton.com
Annual
Report
the
near-term,
would
manifest
in
a
manner
compatible
with
industry
participants
delivering
transformative
medicines.
Additionally,
please
keep
in
mind
that
volatility
is
not
uncommon
in
the
biotechnology
industry,
and
we
seek
to
take
advantage
of
short-term
volatility
by
initiating
positions
or
adding
to
existing
holdings
in
companies
we
believe
are
undervalued.
The
Fund
saw
significant
negative
absolute
returns
across
the
portfolio.
The
bulk
of
the
overall
loss
was
due
to
biotechnology
holdings,
which
comprised
more
than
three-
quarters
of
the
portfolio’s
total
net
assets.
Smaller
allocations
in
pharmaceuticals
as
well
as
life
sciences
tools
and
services
also
dampened
returns,
though
to
a
lesser
degree.
At
the
individual
stock
level,
most
of
the
Fund’s
biggest
detractors
succumbed
to
outsized
declines
as
investors
erased
at
least
half
of
their
equity
value
during
the
period
under
review,
including
Mirati
Therapeutics,
Heron
Therapeutics,
Deciphera
Pharmaceuticals
(not
held
at
period-end),
Iovance
Biotherapeutics
and
Novavax.
Top
detractor
Mirati
reduced
the
Fund’s
absolute
return
by
roughly
two
percentage
points.
Mirati
received
mixed
news
from
the
U.S.
Food
and
Drug
Administration
(FDA)—it
formally
granted
the
company’s
application
to
review
new
lung
cancer
drug
candidate
adagrasib,
but
decided
to
grant
a
standard
review
window
(10
months)
instead
of
a
priority
review
(six
months),
which
came
as
a
surprise
to
most
investors.
While
the
reason
for
this
longer
timeline
remains
unclear,
we
continue
to
expect
FDA
approval
this
year,
likely
ahead
of
the
December
14,
2022,
decision
due-date.
Fundamentally,
we
believe
the
story
has
not
changed:
the
patient
cohort
and
potential
market
are
large,
the
high
unmet
need
is
still
there,
and
adagrasib—a
treatment
for
patients
with
non-small
cell
lung
cancer
harboring
the
KRAS-G12C
mutation—will
be
approved
eventually
(albeit
delayed
by
a
few
months).
Adagrasib’s
clinical
profile
suggests
it
might
be
a
superior
option
than
the
current
standard
of
care
for
this
subset
of
patients.
Early
in
the
period,
Heron
Therapeutics
released
financial
results
that
undershot
the
company’s
guidance
as
a
modified
version
of
newly
approved
non-opioid,
post-surgical,
delayed-release
painkiller
Zynrelef
was
experiencing
clinical
trial
headwinds,
with
the
company
seeking
to
expand
beyond
Zynrelef’s
currently
narrow
FDA-approved
label.
The
company
believed
it
could
secure
a
broader
label
with
additional
studies,
but
the
narrow
label
stood
to
impact
Zynrelef's
growth
trajectory.
By
May
2021,
the
FDA
had
approved
Zynrelef,
which
provides
pain
relief
for
72
hours
after
surgery,
and
its
commercial
launch
took
place
in
July.
Heron’s
other
pain
management
candidate,
HTX-
034,
entered
late-stage
clinical
trials
as
it
aimed
to
extend
the
pain
relief
to
five
to
seven
days.
The
next
leg
down
for
the
stock
price
came
in
early
2022
when
Heron
reported
disappointing
quarterly
results,
with
all
three
of
its
main
products
missing
revenue
estimates.
In
particular,
the
overall
demand
and
sales
of
Zynrelef
experienced
some
turbulence
and
revenues
came
in
well
short
of
expectations,
even
though
it
still
held
potential
to
be
a
blockbuster
drug,
in
our
view.
Our
investment
in
cancer-focused
drug
developer
Deciphera
Pharmaceuticals
shed
roughly
four-fifths
of
its
equity
value
before
it
was
liquidated
from
the
portfolio.
Unfortunately,
the
company’s
Phase
3
study
for
Qinlock
for
second-line
gastrointestinal
stromal
tumors
(GIST)
failed
to
meet
its
primary
endpoint,
and
the
company
discontinued
clinical
development
for
this
indication.
Deciphera
also
discontinued
early-stage
clinical
testing
for
a
drug
candidate
targeting
breast
cancer
and
then
embarked
on
a
restructuring
as
it
sought
to
prioritize
clinical
development
of
other
programs
and
the
continued
commercialization
of
Qinlock
for
fourth-
line
GIST.
The
company
intended
to
maintain
a
focus
on
drug-discovery
research,
streamlining
its
commercial
operations,
and
addressing
sharply
rising
operating
costs
in
a
bid
to
extend
its
cash
runway.
In
addition
to
narrowing
its
pipeline,
Deciphera
planned
to
reduce
its
workforce
by
about
35%.
We
viewed
second-line
GIST
as
the
key
growth
driver
for
the
stock,
and
so
without
this
indication
we
saw
limited
potential
for
upside
and
decided
to
exit
the
position.
Although
none
of
the
Fund’s
industry
allocations
advanced,
their
overall
losses
were
reduced
by
several
stocks
that
bypassed
the
sector’s
protracted
selloff
and
rallied
for
company-specific
reasons.
The
top
absolute
contributors
in
this
regard
included
Vertex
Pharmaceuticals,
Regeneron
Pharmaceuticals,
Zogenix
(not
held
at
period-end),
Amunix
Pharmaceuticals
(not
held
at
period-end),
Intra-Cellular
Therapies
and
Trillium
Therapeutics
(not
held
at
period-end).
Top
contributor
Vertex
continues
to
dominate
the
market
for
drugs
that
treat
cystic
fibrosis—a
rare
genetic
disorder
that
affects
patients’
internal
organs—while
developing
potential
blockbuster
medicines
in
other
therapeutic
fields.
Vertex’s
pipeline
is
starting
to
mature,
and
assets
such
as
VX-147
for
APOL1-mediated
kidney
diseases
and
CTX001
for
beta-
thalassemia
and
sickle
cell
disease
offer
the
potential
for
longer-term
growth.
Regeneron
reported
growing
revenue
and
free
cash
flow
growth
during
the
period
that
easily
beat
analysts’
consensus
estimates
and
provided
encouraging
updates
on
its
pipeline
progress.
Regeneron’s
ability
to
produce
billions
of
dollars
in
free
cash
was
attractive
for
investors
seeking
stability
within
the
biotechnology
space,
as
it
means
the
company
Franklin
Biotechnology
Discovery
Fund
6
franklintempleton.com
Annual
Report
can
be
self-sufficient
when
funding
becomes
scarce
as
the
stock
market
undergoes
a
correction,
just
as
we
saw
in
early
2022.
In
the
past
five
years,
Regeneron
has
posted
strong
profits
where
its
net
income
has
been
at
least
20%
or
more
of
revenue.
Those
high
margins
make
it
easy
for
the
business
to
grow
its
bottom
line
as
sales
rise.
The
big
story
for
Regeneron
was
its
COVID-19
antibody
therapy
REGEN-COV,
which
saw
robust
sales
through
the
end
of
the
Delta
wave.
Sales
for
eye-disease
drug
Eylea
also
increased
solidly,
as
did
sales
of
Dupixent,
which
is
FDA-approved
for
several
indications,
including
asthma
and
atopic
dermatitis.
Arguably
the
most
important
part
of
Regeneron’s
business
update—at
least
for
the
company’s
future
prospects—was
its
solid
pipeline
progress
on
multiple
fronts.
These
other
avenues
of
growth
were
key
to
Regeneron’s
rally
because
many
investors
believed
the
tailwind
generated
by
sales
of
REGEN-COV
were
set
to
wane
substantially
through
the
end
of
2022
as
the
pandemic
further
subsides.
The
company’s
ongoing
strength
in
terms
of
drug
discovery
and
competitive
advantages
have
helped
the
share
price
nearly
double
since
the
beginning
of
2020,
with
roughly
one-third
of
that
overall
gain
occurring
during
the
12
months
under
review.
Late
in
the
period,
shares
of
small-capitalization
drugmaker
Zogenix
soared
in
response
to
a
buyout
agreement
with
mid-size
Belgian
pharmaceutical
company
UCB
(not
a
Fund
holding);
the
up-front
portion
of
their
transaction
represented
an
estimated
66%
premium
to
Zogenix’s
closing
price
ahead
of
the
deal.
When
factoring
in
a
potential
contingency
payment,
the
total
deal
value
rises
to
US$1.9
billion.
The
latter
portion
of
the
contract
was
dependent
on
whether
Zogenix’s
Fintepla
epilepsy
treatment
is
approved
for
Lennox-Gastaut
syndrome
(a
rare
form
of
the
disease)
in
the
European
Union.
Finally,
the
shares
of
Amunix
Pharmaceuticals
more
than
tripled
in
value.
Immuno-oncology
specialist
Amunix,
which
offers
a
technology
platform
utilizing
a
next-generation
“smart
biologics”
approach
to
precisely
deliver
medicines
to
become
active
only
inside
tumor
tissues
(while
sparing
normal
tissues),
agreed
to
be
acquired
by
French
health
care
multinational
Sanofi
for
US$1
billion
and
up
to
an
additional
US$225
million
upon
achievement
of
certain
future
development
milestones
with
Amunix’s
suite
of
masked
T-cell
engagers,
cytokine
therapies,
and
a
technology
platform
for
making
“conditionally
activated
biologics.”
We
note
that
although
biotechnology
stocks
were
down
substantially
since
the
summer
of
2021,
scientific
progress
was
not
slowing.
The
media’s
focus
on
gene
editing,
messenger
RNA
(mRNA),
and
monoclonal
antibodies
may
have
waned,
but
patients
are
already
benefiting,
while
new
therapies
are
making
their
way
through
clinical
trials.
Thank
you
for
your
continued
participation
in
Franklin
Biotechnology
Discovery
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Evan
McCulloch,
CFA
Lead
Portfolio
Manager
Wendy
Lam,
Ph.D.
Akiva
Felt
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
4/30/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Vertex
Pharmaceuticals,
Inc.
8.6%
Biotechnology,
United
States
Amgen,
Inc.
7.2%
Biotechnology,
United
States
Regeneron
Pharmaceuticals,
Inc.
6.4%
Biotechnology,
United
States
Horizon
Therapeutics
plc
5.6%
Biotechnology,
United
States
Gilead
Sciences,
Inc.
5.0%
Biotechnology,
United
States
Jazz
Pharmaceuticals
plc
5.0%
Pharmaceuticals,
United
States
Illumina,
Inc.
4.5%
Life
Sciences
Tools
&
Services,
United
States
PTC
Therapeutics,
Inc.
3.3%
Biotechnology,
United
States
Biogen,
Inc.
3.2%
Biotechnology,
United
States
AstraZeneca
plc
3.0%
Pharmaceuticals,
United
Kingdom
Performance
Summary
as
of
April
30,
2022
Franklin
Biotechnology
Discovery
Fund
7
franklintempleton.com
Annual
Report
The
performance
table
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4
/3
0
/2
2
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-28.56%
-32.49%
5-Year
+5.26%
-0.11%
10-Year
+157.64%
+9.31%
Advisor
1-Year
-28.39%
-28.39%
5-Year
+6.58%
+1.28%
10-Year
+164.36%
+10.21%
See
page
9
for
Performance
Summary
footnotes.
Franklin
Biotechnology
Discovery
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
See
page
9
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Biotechnology
Discovery
Fund
Performance
Summary
9
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
Fund
is
a
nondiversified
fund
that
concentrates
in
a
single
sector,
which
involves
risks
such
as
patent
considerations,
product
liability,
government
regulatory
requirements,
and
regulatory
approval
for
new
drugs
and
medical
products.
Biotechnol-
ogy
companies
often
are
small
and/or
relatively
new.
Smaller
companies
can
be
particularly
sensitive
to
changes
in
economic
conditions
and
have
less
certain
growth
prospects
than
larger,
more
established
companies
and
can
be
volatile,
especially
over
the
short
term.
The
Fund
may
also
invest
in
foreign
companies,
which
involve
special
risks,
including
currency
fluctuations
and
political
uncertainty.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
8/31/22.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Source:
Morningstar.
The
NASDAQ
Biotechnology
Index
is
a
modified
capitalization-weighted
index
designed
to
measure
the
performance
of
NASDAQ-listed
companies
classified
as
either
biotechnology
or
pharmaceuticals.
The
S&P
500
is
a
market
capitalization-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
6.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Net
Investment
Income
Short-Term
Capital
Gain
Long-Term
Capital
Gain
Total
A
$1.0110
$1.1815
$15.4906
$17.6831
C
–
$1.1815
$15.4906
$16.6721
R6
$1.6110
$1.1815
$15.4906
$18.2831
Advisor
$1.4122
$1.1815
$15.4906
$18.0843
Total
Annual
Operating
Expenses
6
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.98%
0.99%
Advisor
0.73%
0.74%
Your
Fund’s
Expenses
Franklin
Biotechnology
Discovery
Fund
10
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
A
Net
Annualized
Expense
Ratio
2
A
$1,000
$766.90
$4.62
$1,019.57
$5.28
1.05%
C
$1,000
$765.10
$6.56
$1,017.37
$7.49
1.50%
R6
$1,000
$768.30
$2.94
$1,021.47
$3.36
0.67%
Advisor
$1,000
$767.80
$3.52
$1,020.81
$4.02
0.80%
11
franklintempleton.com
Annual
Report
Franklin
Natural
Resources
Fund
This
annual
report
for
Franklin
Natural
Resources
Fund
covers
the
fiscal
year
ended
April
30,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
high
total
return.
Total
return
consists
of
capital
appreciation
and
current
dividend
and
interest
income.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
equity
and
debt
securities
of
companies
that
own,
produce,
refine,
process,
transport
or
market
natural
resources,
as
well
as
those
that
provide
related
services.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+36.63%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
Standard
&
Poor’s
(S&P
®
)
North
American
Natural
Resources
Sector
Index,
which
tracks
companies
involved
in
industries
such
as
mining,
energy,
timber
and
forestry
services,
and
the
production
of
pulp
and
paper,
posted
a
+41.82%
cumulative
total
return.
1
Also
in
comparison,
the
Standard
&
Poor’s
500
Index
(S&P
500),
which
is
a
broad
measure
of
the
U.S.
stock
market,
posted
a
+0.21%
cumulative
total
return.
1
Please
note
index
performance
information
is
provided
for
reference
and
we
do
not
attempt
to
track
any
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
The
Fund’s
strategy,
which
focuses
on
companies
with
higher
long-term
growth
potential,
differs
from
the
natural
resources
index’s
large
weighting
in
income-oriented
companies
that
we
believe
typically
provide
more
limited
opportunities
for
growth.
This
difference
may
occasionally
lead
to
wide
performance
discrepancies,
especially
in
periods
when
investors
focus
on
short-term
safety
and
yield
or,
conversely,
when
investors
focus
more
heavily
on
companies
with
stronger
growth
prospects
and
greater
commodity
price
leverage.
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
15
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
We
are
research-driven,
fundamental
investors,
pursuing
a
growth
strategy.
As
bottom-up
investors
focusing
primarily
on
individual
securities,
we
choose
companies
that
have
identifiable
drivers
of
future
earnings
growth
and
that
present,
in
our
opinion,
the
best
trade-off
between
potential
earnings
growth,
business
and
financial
risk,
and
valuation.
Also,
in
seeking
sustainable
growth
characteristics,
we
look
for
companies
that
we
believe
can
produce
sustainable
earnings
growth
and
cash
flow
growth
or
the
potential
to
generate
income.
We
rely
on
a
team
of
analysts
to
help
provide
in-depth
industry
expertise
and
use
both
qualitative
and
quantitative
analysis
to
evaluate
companies
for
distinct
and
sustainable
competitive
advantages
likely
to
lead
to
growth
in
earnings
and/or
share
price.
Competitive
advantages,
such
as
a
particular
product
niche,
proven
technology,
sound
financial
position
and
strong
management,
are
all
factors
we
believe
may
contribute
to
strong
growth
potential.
Sector
Overview
Global
commodity
prices
rose
during
the
12
months
ended
April
30,
2022,
though
gains
were
concentrated
in
energy
and
food
products
while
most
metals
declined.
Energy
prices
rose
sharply
late
in
the
period
following
Russia’s
invasion
of
Ukraine,
which
sparked
concerns
about
severe
supply
constraints.
In
contrast,
metals
prices
were
hurt
by
supply-
chain
issues
which
hindered
automotive
production
as
well
as
slowing
economic
activity
in
China,
which
saw
renewed
lockdowns
to
contain
resurgent
COVID-19
outbreaks.
Geographic
Composition
4/30/22
%
of
Total
Net
Assets
North
America
79.1%
Europe
9.4%
Australia
&
New
Zealand
3.5%
Latin
America
&
Caribbean
2.7%
Middle East & Africa
1.2%
Other
0.3%
Short-Term
Investments
&
Other
Net
Assets
3.8%
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
30
.
Franklin
Natural
Resources
Fund
12
franklintempleton.com
Annual
Report
Crude
oil
prices
rose
significantly
during
the
period
due
to
the
continued
recovery
in
global
energy
demand
and
supply
constraints
caused
by
a
number
of
factors,
most
notably
the
February
2022
Russian
invasion
of
Ukraine.
Early
in
the
period,
demand
was
boosted
by
increased
global
economic
activity
and
a
natural
gas
shortage,
which
led
power
suppliers
to
turn
to
petroleum
products
to
fill
the
gap.
Supply
volumes
were
kept
in
check
by
disciplined
production
levels
by
the
Organization
of
the
Petroleum
Exporting
Countries
(OPEC)
and
certain
non-members.
Later
in
the
period,
oil
prices
rose
due
to
supply
constraints
caused
by
international
sanctions
on
Russian
energy
exports,
an
attack
on
a
Saudi
Arabian
oil
facility,
and
disruptions
to
energy
export
infrastructure
in
Russia
caused
by
a
significant
weather
event.
While
oil
prices
ended
the
period
significantly
higher,
total
gains
were
kept
somewhat
in
check
by
the
U.S.
government
announcing
a
large
release
from
its
strategic
petroleum
reserve
as
well
as
renewed
COVID-19
outbreaks
in
China
and
subsequent
lockdowns,
which
reduced
energy
demand
in
that
country.
U.S.
natural
gas
prices
more
than
doubled
during
a
highly
volatile
12
months.
Early
in
the
period,
prices
were
boosted
by
heat
waves
in
the
Western
U.S.,
which
increased
demand
for
air
conditioning,
and
droughts
in
the
U.S.
and
South
America,
which
limited
production
of
hydroelectric
power
and
put
more
demand
on
natural
gas-fired
power
plants.
Prices
then
fell
off
in
2021’s
fourth
quarter
as
inventory
levels
rose
and
warmer-than-usual
early-winter
weather
reduced
demand
for
heating.
Prices
shot
back
up
in
2022
following
Russia’s
invasion
of
Ukraine,
which
caused
many
European
countries
reliant
on
Russian
coal
and
natural
gas
to
seek
alternative
sources,
shifting
U.S.
exports
of
liquified
natural
gas
from
Asia
to
Europe.
Cold
winter
temperatures
in
Europe
and
the
Northeastern
U.S.
also
boosted
demand
for
heating
oil.
By
the
end
of
the
period,
low
inventory
levels
and
high
prices
led
to
increased
drilling
activity
in
the
U.S.,
though
activity
levels
were
still
fairly
moderate
and
far
below
levels
seen
over
the
past
10
years.
Gold
prices
rose
during
the
period,
boosted
by
central
bank
reserve
purchases,
demand
from
jewelry
consumers
in
Asia,
concerns
about
inflation,
and
instability
in
the
stock
market
and
geopolitics.
Gains
were
limited
by
tightening
monetary
policy
from
the
U.S.
Federal
Reserve
and
other
central
banks.
Silver
prices
fell
due
to
decreased
industrial
demand
and
the
aforementioned
tightening
of
central
bank
policies.
Prices
for
platinum
and
palladium,
key
components
in
catalytic
converters,
dropped
during
the
period
due
to
a
decline
in
automobile
production,
the
primary
end
market
for
both
metals.
Palladium
prices
did
recover
somewhat
in
2022
due
to
concerns
about
supplies
from
Russia,
one
of
the
world’s
largest
palladium
producers.
Copper
prices
ended
the
12-month
period
roughly
where
they
started.
Early
in
the
period,
prices
were
pressured
by
the
Chinese
government
releasing
state
reserves
of
the
metal
in
an
effort
to
tamp
down
commodity
prices
and
support
the
country’s
manufacturing
sector.
Later
in
the
period,
prices
were
supported
by
increased
demand
from
China,
continued
COVID-19
related
disruptions,
nationalistic
trends
in
major
producing
countries
and
escalating
energy
prices,
which
increased
mining
costs.
The
price
of
iron
ore
fell
significantly
during
the
period,
suffering
its
worst
ever
quarterly
decline
in
2021’s
third
quarter.
Prices
were
hurt
by
the
Chinese
government’s
decision
to
reduce
steel
production
in
an
effort
to
moderate
iron
prices
and
curb
pollution
along
with
a
crackdown
on
speculative
property
development,
which
reduced
construction
activity,
a
key
source
of
demand
for
the
metal.
Manager’s
Discussion
The
12-month
period
ending
April
30,
2022,
was
characterized
by
rolling
COVID-19
outbreaks
and
periodic
restrictions
on
travel
which
were
counterbalanced
by
increased
rollout
of
vaccinations.
In
2021,
most
commodity
prices
rose
steadily
as
the
post-pandemic
economic
recovery
gained
pace,
though
the
response
of
natural
resource-related
equities
was
muted
in
comparison
due
to
investors’
concerns
about
the
effects
of
the
spreading
Omicron
variant.
This
began
to
change
in
early
2022
as
the
Portfolio
Composition
4/30/22
%
of
Total
Net
Assets
Oil
&
Gas
Exploration
&
Production
18.5%
Integrated
Oil
&
Gas
17.9%
Oil
&
Gas
Equipment
&
Services
11.0%
Oil
&
Gas
Storage
&
Transportation
8.0%
Gold
7.4%
Oil
&
Gas
Refining
&
Marketing
6.1%
Diversified
Metals
&
Mining
5.3%
Copper
4.4%
Industrial
Gases
3.0%
Fertilizers
&
Agricultural
Chemicals
1.8%
Oil
&
Gas
Drilling
1.4%
Electrical
Components
&
Equipment
1.3%
Agricultural
Products
1.2%
Metal
&
Glass
Containers
1.2%
Specialty
Chemicals
1.1%
Diversified
Chemicals
1.0%
Other
5.6%
Short-Term
Investments
&
Other
Net
Assets
3.8%
Franklin
Natural
Resources
Fund
13
franklintempleton.com
Annual
Report
less
virulent
nature
of
Omicron
became
better
known
and
widespread
lockdowns
did
not
ensue.
Many
commodity
prices,
particularly
those
related
to
energy,
rose
further
due
to
the
build-up
of
Russian
troops
and
subsequent
invasion
of
Ukraine.
Fund
performance
followed
suit,
remaining
mostly
stable
in
2021
before
increasing
in
early
2022
through
mid-April,
when
some
gains
were
given
back
in
line
with
the
broader
market
retreat
due
to
fears
about
rising
inflation
and
interest
rates.
In
this
environment,
the
Fund
modestly
underperformed
its
benchmark,
the
S&P
North
American
Natural
Resources
Sector
Index,
largely
due
to
the
Fund’s
relative
underweighting
in
energy-related
industries,
which
rose
sharply
in
2022,
largely
driven
by
Russia’s
invasion
of
Ukraine.
The
Fund’s
largest
relative
detractor
was
stock
selection
and
an
underweighting
in
integrated
oil
&
gas.
Relative
performance
was
specifically
hurt
by
lower
exposures
to
U.S.
majors
Chevron
and
Exxon
Mobil,
as
well
as
larger
positions
in
European
companies
that
did
not
perform
as
well.
Stock
selection
and
an
overweighting
in
copper
also
hurt
relative
performance,
as
prices
of
the
industrial
metal
fell
late
in
the
period
due
to
concerns
about
demand
from
China.
Lundin
Mining
and
Antofagasta
were
also
hurt
by
concern
that
elections
in
Chile
and
Peru
could
result
in
more
economically
nationalistic
policies,
resulting
in
higher
taxes
on
those
companies’
operations.
Renewable
energy-related
holdings
also
detracted
as
a
result
of
rising
interest
rates,
broader
stock
market
weakness,
supply-chain
issues
and
inflationary
pressures.
Detractors
included
FREYR
Battery,
SES
AI,
Fluence
Energy,
Shoals
Technologies
Group
and
TPI
Composites.
Though
representing
a
small
weighting
of
the
portfolio,
several
solar
companies,
including
Shoals
and
SolarEdge
Technologies,
declined
significantly
after
the
U.S.
Department
of
Commerce
opened
an
investigation
into
possible
trade
violations
by
Chinese
panel
manufacturers,
resulting
in
project
delays
and
reduced
availability
of
equipment
supplies
from
Asia.
Other
companies
and
sectors
facing
inflationary
cost
pressures
and
the
potential
for
reduced
demand
included
industrial
gas
company
Air
Products
and
Chemicals
and
the
diversified
metals
&
mining
sector,
where
as
much
as
30%
of
costs
can
be
tied
to
fuel.
While
several
mining
stocks
performed
well
on
an
absolute
basis,
and
the
sector
generated
over
a
20%
return
for
the
Fund,
the
sector
detracted
from
relative
performance
given
the
Fund’s
strong
total
return.
In
contrast,
the
largest
relative
contributors
were
consumer-
oriented
sectors
where
the
Fund
was
underweighted,
such
as
paper
packaging
and
metal
&
glass
containers.
Other
relative
contributors
included
stock
selection
and
an
overweighting
in
oil
&
gas
exploration
&
production,
stock
selection
and
an
underweighting
in
oil
&
gas
storage
&
transportation,
and
overweightings
in
oil
&
gas
equipment
&
services
and
oil
&
gas
drilling,
all
of
which
also
contributed
on
an
absolute
basis.
Several
oilfield
services
stocks
in
the
Fund
were
down
over
the
12-month
period
and
still,
in
our
view,
hold
strong
upside
potential,
yet
the
Fund’s
holdings
still
outperformed
those
in
the
benchmark.
Standouts
in
these
sectors
were
Devon
Energy,
natural
gas-focused
Coterra
Energy,
Targa
Resources,
Williams
Cos.,
NexTier
Oilfield
Solutions
and
Patterson-UTI
Energy.
Gold
also
contributed
to
relative
returns
due
to
overweighted
positions
in
holdings
that
outperformed
the
sector
such
as
SSR
Mining,
Newmont
and
Barrick
Gold.
Thank
you
for
your
continued
participation
in
Franklin
Natural
Resources
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Frederick
G.
Fromm,
CFA
Lead
Portfolio
Manager
Matthew
J.
Adams,
CFA
Stephen
M.
Land,
CFA
Portfolio
Management
Team
Top
10
Holdings
4/30/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Chevron
Corp.
4.4%
Oil,
Gas
&
Consumable
Fuels,
United
States
ConocoPhillips
4.2%
Oil,
Gas
&
Consumable
Fuels,
United
States
Exxon
Mobil
Corp.
4.0%
Oil,
Gas
&
Consumable
Fuels,
United
States
Shell
plc
3.2%
Oil,
Gas
&
Consumable
Fuels,
Netherlands
Suncor
Energy,
Inc.
3.0%
Oil,
Gas
&
Consumable
Fuels,
Canada
Canadian
Natural
Resources
Ltd.
2.7%
Oil,
Gas
&
Consumable
Fuels,
Canada
EOG
Resources,
Inc.
2.7%
Oil,
Gas
&
Consumable
Fuels,
United
States
Newmont
Corp.
2.5%
Metals
&
Mining,
United
States
Coterra
Energy,
Inc.
2.5%
Oil,
Gas
&
Consumable
Fuels,
United
States
Schlumberger
NV
2.4%
Energy
Equipment
&
Services,
United
States
Franklin
Natural
Resources
Fund
14
franklintempleton.com
Annual
Report
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
April
30,
2022
Franklin
Natural
Resources
Fund
15
franklintempleton.com
Annual
Report
The
performance
table
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4
/3
0
/2
2
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3
1-Year
+36.63%
+29.08%
5-Year
+17.50%
+2.12%
10-Year
-14.96%
-2.16%
Advisor
1-Year
+36.93%
+36.93%
5-Year
+18.94%
+3.53%
10-Year
-12.70%
-1.35%
See
page
17
for
Performance
Summary
footnotes.
Franklin
Natural
Resources
Fund
Performance
Summary
16
franklintempleton.com
Annual
Report
See
page
17
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Natural
Resources
Fund
Performance
Summary
17
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Investing
in
a
fund
concentrating
in
the
natural
resources
sector
involves
special
risks,
includ-
ing
increased
susceptibility
to
adverse
economic
and
regulatory
developments
affecting
the
sector.
Growth
stock
prices
may
fall
dramatically
if
the
company
fails
to
meet
projections
of
earnings
or
revenue;
their
prices
may
be
more
volatile
than
other
securities,
particularly
over
the
short
term.
Smaller
companies
can
be
particularly
sensitive
to
changes
in
economic
conditions
and
have
less
certain
growth
prospects
than
larger,
more
established
companies
and
can
be
volatile,
especially
over
the
short
term.
The
Fund
may
also
invest
in
foreign
companies,
which
involve
special
risks,
including
currency
fluctuations
and
political
uncertainty.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
perfor-
mance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
4.
Source:
Morningstar.
The
S&P
North
American
Natural
Resources
Sector
Index
is
a
modified
capitalization-weighted
index
that
includes
companies
involved
in
extractive
industries
(mining),
energy
and
forestry
services,
producers
of
pulp
and
paper,
and
owners
and
operators
of
timber
tracts
or
plantations.
The
S&P
500
is
a
market
capitaliza-
tion-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Net
Investment
Income
A
$0.2750
C
$0.0795
R6
$0.3584
Advisor
$0.3119
Total
Annual
Operating
Expenses
5
Share
Class
A
1.25%
Advisor
1.00%
Your
Fund’s
Expenses
Franklin
Natural
Resources
Fund
18
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,188.70
$5.71
$1,019.58
$5.27
1.05%
C
$1,000
$1,184.20
$9.77
$1,015.85
$9.01
1.80%
R6
$1,000
$1,191.40
$3.44
$1,021.65
$3.18
0.63%
Advisor
$1,000
$1,190.10
$4.33
$1,020.84
$4.00
0.80%
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
.
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$163.50
$150.48
$138.85
$146.14
$147.22
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.75)
(0.99)
(0.69)
(0.99)
(0.80)
Net
realized
and
unrealized
gains
(losses)
...........
(43.17)
38.85
26.48
(1.75)
3.32
Total
from
investment
operations
....................
(43.92)
37.86
25.79
(2.74)
2.52
Less
distributions
from:
Net
investment
income
..........................
(1.01)
—
—
—
—
Net
realized
gains
.............................
(16.67)
(24.84)
(14.16)
(4.55)
(3.60)
Total
distributions
...............................
(17.68)
(24.84)
(14.16)
(4.55)
(3.60)
Net
asset
value,
end
of
year
.......................
$101.90
$163.50
$150.48
$138.85
$146.14
Total
return
c
...................................
(28.56)%
24.26%
18.52%
(1.60)%
1.69%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.04%
0.98%
1.03%
1.02%
1.05%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.04%
e
0.97%
1.01%
1.00%
1.03%
Net
investment
(loss)
............................
(0.54)%
(0.58)%
(0.49)%
(0.67)%
(0.53)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$705,915
$1,160,451
$960,305
$924,611
$1,081,883
Portfolio
turnover
rate
............................
26.25%
47.30%
32.92%
28.62%
26.95%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$152.95
$143.00
$133.51
$141.75
$143.98
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(1.51)
(2.16)
(1.70)
(2.03)
(1.90)
Net
realized
and
unrealized
gains
(losses)
...........
(40.18)
36.95
25.35
(1.66)
3.27
Total
from
investment
operations
....................
(41.69)
34.79
23.65
(3.69)
1.37
Less
distributions
from:
Net
realized
gains
.............................
(16.67)
(24.84)
(14.16)
(4.55)
(3.60)
Net
asset
value,
end
of
year
.......................
$94.59
$152.95
$143.00
$133.51
$141.75
Total
return
c
...................................
(29.00)%
23.33%
17.62%
(2.33)%
0.93%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.66%
1.73%
1.78%
1.77%
1.80%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.66%
e
1.72%
1.76%
1.75%
1.78%
Net
investment
(loss)
............................
(1.16)%
(1.32)%
(1.24)%
(1.42)%
(1.28)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$33,905
$64,801
$48,363
$46,508
$58,433
Portfolio
turnover
rate
............................
26.25%
47.30%
32.92%
28.62%
26.95%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$172.21
$156.99
$143.83
$150.65
$151.03
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.23)
(0.45)
(0.18)
(0.46)
(0.17)
Net
realized
and
unrealized
gains
(losses)
...........
(45.64)
40.51
27.50
(1.81)
3.39
Total
from
investment
operations
....................
(45.87)
40.06
27.32
(2.27)
3.22
Less
distributions
from:
Net
investment
income
..........................
(1.61)
—
—
—
—
Net
realized
gains
.............................
(16.67)
(24.84)
(14.16)
(4.55)
(3.60)
Total
distributions
...............................
(18.28)
(24.84)
(14.16)
(4.55)
(3.60)
Net
asset
value,
end
of
year
.......................
$108.06
$172.21
$156.99
$143.83
$150.65
Total
return
....................................
(28.29)%
24.67%
18.95%
(1.24)%
2.11%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.74%
0.71%
0.74%
0.70%
0.65%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.66%
0.64%
0.64%
0.63%
0.61%
Net
investment
(loss)
............................
(0.16)%
(0.25)%
(0.12)%
(0.30)%
(0.11)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$9,614
$16,721
$9,484
$6,164
$8,307
Portfolio
turnover
rate
............................
26.25%
47.30%
32.92%
28.62%
26.95%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$169.95
$155.30
$142.56
$149.54
$150.20
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..........................
(0.42)
(0.59)
(0.34)
(0.63)
(0.45)
Net
realized
and
unrealized
gains
(losses)
...........
(44.99)
40.08
27.24
(1.80)
3.39
Total
from
investment
operations
....................
(45.41)
39.49
26.90
(2.43)
2.94
Less
distributions
from:
Net
investment
income
..........................
(1.41)
—
—
—
—
Net
realized
gains
.............................
(16.67)
(24.84)
(14.16)
(4.55)
(3.60)
Total
distributions
...............................
(18.08)
(24.84)
(14.16)
(4.55)
(3.60)
Net
asset
value,
end
of
year
.......................
$106.46
$169.95
$155.30
$142.56
$149.54
Total
return
....................................
(28.39)%
24.56%
18.82%
(1.36)%
1.94%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.79%
0.73%
0.78%
0.77%
0.80%
Expenses
net
of
waiver
and
payments
by
affiliates
c
......
0.79%
d
0.72%
0.76%
0.75%
0.78%
Net
investment
(loss)
............................
(0.29)%
(0.33)%
(0.24)%
(0.42)%
(0.28)%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$110,726
$206,375
$159,348
$153,874
$180,219
Portfolio
turnover
rate
............................
26.25%
47.30%
32.92%
28.62%
26.95%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.1%
Biotechnology
75.4%
a
89bio,
Inc.
...........................................
United
States
134,065
$
290,921
a,b
Adagio
Therapeutics,
Inc.
...............................
United
States
100,903
288,583
a
Albireo
Pharma,
Inc.
...................................
United
States
161,787
5,148,062
a
Alector
,
Inc.
..........................................
United
States
454,545
4,363,632
Amgen,
Inc.
.........................................
United
States
266,362
62,112,955
a
Applied
Molecular
Transport,
Inc.
.........................
United
States
138,000
592,020
a
Applied
Therapeutics,
Inc.
...............................
United
States
761,354
1,499,867
a
Arcus
Biosciences,
Inc.
.................................
United
States
194,113
4,699,476
a
Arcutis
Biotherapeutics
,
Inc.
.............................
United
States
141,456
2,855,997
a
Argenx
SE,
ADR
......................................
Netherlands
72,998
20,973,785
a
Ascendis
Pharma
A/S,
ADR
.............................
Denmark
248,400
22,671,468
a,b
BELLUS
Health,
Inc.
...................................
Canada
587,700
4,736,862
a
Biogen,
Inc.
.........................................
United
States
133,875
27,771,030
a
BioMarin
Pharmaceutical,
Inc.
............................
United
States
142,456
11,588,796
a
Candel
Therapeutics,
Inc.
...............................
United
States
400,800
1,434,864
a,b
Centessa
Pharmaceuticals
plc,
ADR
.......................
United
States
278,993
2,432,819
a
Codiak
Biosciences,
Inc.
................................
United
States
123,288
364,933
a
CRISPR
Therapeutics
AG
...............................
Switzerland
106,514
5,285,225
a
Cullinan
Oncology,
Inc.
.................................
United
States
113,700
1,115,397
a
Cytokinetics,
Inc.
......................................
United
States
254,100
10,130,967
a,b
Day
One
Biopharmaceuticals,
Inc.
.........................
United
States
464,633
3,958,673
a
Dyne
Therapeutics,
Inc.
................................
United
States
215,539
1,720,001
a
Equillium
,
Inc.
........................................
United
States
294,800
720,786
a,b
Exscientia
plc,
ADR
....................................
United
Kingdom
30,087
323,736
a
Fate
Therapeutics,
Inc.
.................................
United
States
222,810
6,363,454
Gilead
Sciences,
Inc.
..................................
United
States
730,013
43,318,971
a
Harpoon
Therapeutics,
Inc.
..............................
United
States
445,299
1,001,923
a
Heron
Therapeutics,
Inc.
................................
United
States
1,739,677
7,863,340
a
HilleVax
,
Inc.
.........................................
United
States
97,700
1,865,093
a
Horizon
Therapeutics
plc
................................
United
States
488,349
48,131,677
a
Insmed
,
Inc.
.........................................
United
States
780,500
17,147,585
a
Intellia
Therapeutics,
Inc.
................................
United
States
109,353
5,361,578
a
Iovance
Biotherapeutics
,
Inc.
.............................
United
States
1,395,901
21,147,900
a
IVERIC
bio,
Inc.
......................................
United
States
419,108
5,804,646
a
Karuna
Therapeutics,
Inc.
...............................
United
States
43,937
4,897,218
a
Keros
Therapeutics,
Inc.
................................
United
States
148,751
7,885,291
a
Kezar
Life
Sciences,
Inc.
................................
United
States
846,450
10,055,826
a
Kronos
Bio,
Inc.
......................................
United
States
84,158
398,067
a
Legend
Biotech
Corp.,
ADR
.............................
United
States
159,125
6,388,869
a
LogicBio
Therapeutics,
Inc.
..............................
United
States
306,913
135,042
a
Merus
NV
...........................................
Netherlands
177,121
3,613,268
a
Mirati
Therapeutics,
Inc.
................................
United
States
228,819
14,138,726
a
Moderna
,
Inc.
........................................
United
States
97,615
13,120,432
a
Neurocrine
Biosciences,
Inc.
.............................
United
States
215,800
19,428,474
a,b
Novavax
,
Inc.
........................................
United
States
78,982
3,559,719
a,b
Pardes
Biosciences,
Inc.
................................
United
States
77,033
572,355
a
Praxis
Precision
Medicines,
Inc.
..........................
United
States
103,600
839,160
a
Prometheus
Biosciences,
Inc.
............................
United
States
178,787
4,702,098
a
PTC
Therapeutics,
Inc.
.................................
United
States
799,400
28,242,802
a
Regeneron
Pharmaceuticals,
Inc.
.........................
United
States
82,900
54,640,219
a,b
Reneo
Pharmaceuticals,
Inc.
.............................
United
States
158,423
367,541
a
Rocket
Pharmaceuticals,
Inc.
............................
United
States
375,771
3,862,926
a
Sage
Therapeutics,
Inc.
................................
United
States
101,070
3,185,726
a
Seagen
,
Inc.
.........................................
United
States
162,151
21,243,403
a
Sutro
Biopharma,
Inc.
..................................
United
States
916,889
5,510,503
a
Taysha
Gene
Therapies,
Inc.
.............................
United
States
304,256
1,113,577
a
Ultragenyx
Pharmaceutical,
Inc.
..........................
United
States
60,696
4,290,600
a
Vertex
Pharmaceuticals,
Inc.
.............................
United
States
269,770
73,706,559
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Biotechnology
(continued)
a
Viridian
Therapeutics,
Inc.
...............................
United
States
210,000
$
2,889,600
a,b
VistaGen
Therapeutics,
Inc.
.............................
United
States
3,617,653
4,594,419
648,469,442
Health
Care
Providers
&
Services
1.2%
a
Guardant
Health,
Inc.
..................................
United
States
173,066
10,678,172
Life
Sciences
Tools
&
Services
6.7%
a
Avantor
,
Inc.
.........................................
United
States
65,600
2,091,328
a,b
Codex
DNA,
Inc.
......................................
United
States
543,182
2,009,773
a
Illumina,
Inc.
.........................................
United
States
129,900
38,534,835
Thermo
Fisher
Scientific,
Inc.
............................
United
States
26,900
14,873,548
57,509,484
Pharmaceuticals
14.8%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
393,600
26,135,040
a
Athira
Pharma,
Inc.
....................................
United
States
666,676
6,860,096
a
Catalent
,
Inc.
........................................
United
States
22,700
2,055,712
a
EyePoint
Pharmaceuticals,
Inc.
...........................
United
States
1,172,900
13,253,770
a
Intra-Cellular
Therapies,
Inc.
.............................
United
States
450,226
22,785,938
a
Jazz
Pharmaceuticals
plc
...............................
United
States
269,708
43,212,616
a
Marinus
Pharmaceuticals,
Inc.
............................
United
States
149,200
987,704
a
Pliant
Therapeutics,
Inc.
................................
United
States
149,100
873,726
a
Reata
Pharmaceuticals,
Inc.,
A
...........................
United
States
186,056
4,722,101
a
Revance
Therapeutics,
Inc.
..............................
United
States
376,766
6,171,427
127,058,130
Total
Common
Stocks
(Cost
$653,794,230)
.....................................
843,715,228
Preferred
Stocks
0.2%
Biotechnology
0.1%
a,c,d
Pipeline
Therapeutics,
Inc.,
C
............................
United
States
779,505
751,599
a
Health
Care
Providers
&
Services
0.1%
a,c,d
Artiva
Biotherapeutics
,
Inc.,
B
............................
United
States
189,499
797,876
a
Total
Preferred
Stocks
(Cost
$4,173,484)
.......................................
1,549,475
Warrants
Warrants
0.0%
†
Pharmaceuticals
0.0%
†
a
Nuvation
Bio,
Inc.,
7/07/27
..............................
United
States
115,266
87,602
Total
Warrants
(Cost
$–)
......................................................
87,602
Principal
Amount
*
Corporate
Bonds
0.4%
Biotechnology
0.4%
c,d
HilleVax
,
Inc.
,
6
%
,
8/31/22
...............................
United
States
2,652,900
3,227,591
Total
Corporate
Bonds
(Cost
$2,652,900)
.......................................
3,227,591
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Escrows
and
Litigation
Trusts
0.0%
†
a,c
Sanofi
SA
...........................................
France
2,333,755
$
76,022
Total
Escrows
and
Litigation
Trusts
(Cost
$26,589)
..............................
76,022
Total
Long
Term
Investments
(Cost
$660,647,203)
...............................
848,655,918
a
Short
Term
Investments
1.3%
a
a
Country
Shares
a
Value
a
a
Money
Market
Funds
0.7%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
6,199,878
6,199,878
Total
Money
Market
Funds
(Cost
$6,199,878)
...................................
6,199,878
a
a
a
a
g
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.6%
Money
Market
Funds
0.6%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
4,994,101
4,994,101
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$4,994,101)
............................................................
4,994,101
Total
Short
Term
Investments
(Cost
$11,193,979
)
................................
11,193,979
a
Total
Investments
(Cost
$671,841,182)
100.0%
..................................
$859,849,897
Other
Assets,
less
Liabilities
0.0%
†
............................................
310,440
Net
Assets
100.0%
...........................................................
$860,160,337
See
A
bbreviations
on
page
51
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
April
30,
2022.
See
Note
1(d).
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
d
See
Note
9
regarding
restricted
securities.
e
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
g
See
Note
1(d)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$20.02
$13.60
$23.58
$27.96
$25.11
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.50
0.28
0.34
0.31
0.39
c
Net
realized
and
unrealized
gains
(losses)
...........
6.77
6.54
(9.96)
(4.20)
2.77
Total
from
investment
operations
....................
7.27
6.82
(9.62)
(3.89)
3.16
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.40)
(0.36)
(0.49)
(0.31)
Net
asset
value,
end
of
year
.......................
$27.01
$20.02
$13.60
$23.58
$27.96
Total
return
d
...................................
36.63%
50.55%
(41.30)%
(13.69)%
12.74%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.10%
1.24%
1.17%
1.03%
1.13%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
1.10%
1.24%
f
1.17%
f
1.03%
f
1.13%
f
Net
investment
income
...........................
2.17%
1.71%
1.75%
1.21%
1.56%
c
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$289,403
$176,127
$123,467
$247,362
$344,695
Portfolio
turnover
rate
............................
27.45%
49.23%
25.60%
29.83%
29.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.16
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.91%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$19.58
$13.25
$22.82
$27.17
$24.28
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.32
0.15
0.19
0.11
0.20
c
Net
realized
and
unrealized
gains
(losses)
...........
6.63
6.38
(9.70)
(4.07)
2.69
Total
from
investment
operations
....................
6.95
6.53
(9.51)
(3.96)
2.89
Less
distributions
from:
Net
investment
income
..........................
(0.08)
(0.20)
(0.06)
(0.39)
—
Net
asset
value,
end
of
year
.......................
$26.45
$19.58
$13.25
$22.82
$27.17
Total
return
d
...................................
35.59%
49.42%
(41.71)%
(14.37)%
11.90%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.86%
1.99%
1.92%
1.78%
1.88%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
1.86%
1.99%
f
1.92%
f
1.78%
f
1.88%
f
Net
investment
income
...........................
1.41%
0.93%
1.00%
0.46%
0.81%
c
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$30,427
$27,753
$23,391
$49,620
$83,814
Portfolio
turnover
rate
............................
27.45%
49.23%
25.60%
29.83%
29.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.16
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.16%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$21.58
$14.63
$25.22
$29.79
$26.87
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.64
0.39
0.54
0.45
0.57
c
Net
realized
and
unrealized
gains
(losses)
...........
7.31
7.05
(10.76)
(4.49)
2.95
Total
from
investment
operations
....................
7.95
7.44
(10.22)
(4.04)
3.52
Less
distributions
from:
Net
investment
income
..........................
(0.36)
(0.49)
(0.37)
(0.53)
(0.60)
Net
asset
value,
end
of
year
.......................
$29.17
$21.58
$14.63
$25.22
$29.79
Total
return
....................................
37.24%
51.43%
(41.02)%
(13.31)%
13.37%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.80%
0.89%
0.72%
0.62%
0.64%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.65%
0.72%
d
0.66%
d
0.59%
d
0.57%
d
Net
investment
income
...........................
2.53%
2.22%
2.26%
1.65%
2.12%
c
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$4,943
$1,722
$839
$15,627
$15,866
Portfolio
turnover
rate
............................
27.45%
49.23%
25.60%
29.83%
29.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.16
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.47%.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
a
Year
Ended
April
30,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$21.44
$14.54
$25.20
$29.80
$26.81
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.60
0.33
0.41
0.40
0.49
c
Net
realized
and
unrealized
gains
(losses)
...........
7.24
7.01
(10.64)
(4.49)
2.95
Total
from
investment
operations
....................
7.84
7.34
(10.23)
(4.09)
3.44
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.44)
(0.43)
(0.51)
(0.45)
Net
asset
value,
end
of
year
.......................
$28.97
$21.44
$14.54
$25.20
$29.80
Total
return
....................................
36.93%
50.95%
(41.15)%
(13.50)%
13.04%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.85%
1.00%
0.92%
0.78%
0.88%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.85%
1.00%
e
0.92%
e
0.78%
e
0.88%
e
Net
investment
income
...........................
2.39%
1.93%
2.00%
1.46%
1.81%
c
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$87,707
$39,562
$28,334
$62,639
$78,443
Portfolio
turnover
rate
............................
2
7.45%
49.23%
25.60%
29.83%
29.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.16
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.16%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Natural
Resources
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Country
Shares
a
Value
a
Common
Stocks
95.7%
Agricultural
Products
1.2%
Bunge
Ltd.
..........................................
United
States
25,700
$
2,907,184
a
Darling
Ingredients,
Inc.
................................
United
States
28,300
2,076,937
4,984,121
Construction
Machinery
&
Heavy
Trucks
0.4%
a
Proterra
,
Inc.
.........................................
United
States
270,800
1,681,668
a
Construction
Materials
0.6%
Martin
Marietta
Materials,
Inc.
............................
United
States
7,700
2,727,494
Copper
4.4%
Antofagasta
plc
.......................................
Chile
157,900
3,022,943
a
ERO
Copper
Corp.
....................................
Brazil
215,700
3,101,217
First
Quantum
Minerals
Ltd.
.............................
Zambia
53,200
1,525,206
Freeport-McMoRan,
Inc.
................................
United
States
190,400
7,720,720
a
Imperial
Metals
Corp.
..................................
Canada
122,760
353,569
Lundin
Mining
Corp.
...................................
Chile
220,800
2,016,101
17,739,756
Diversified
Chemicals
1.0%
Huntsman
Corp.
......................................
United
States
124,500
4,216,815
Diversified
Metals
&
Mining
5.3%
a
29Metals
Ltd.
........................................
Australia
1,174,800
2,222,949
a
Aclara
Resources,
Inc.
.................................
United
Kingdom
489,200
224,674
a,b
Aclara
Resources,
Inc.,
144A
............................
United
Kingdom
510,754
234,574
Anglo
American
plc
....................................
South
Africa
78,500
3,476,981
c
BHP
Group
Ltd.,
ADR
..................................
Australia
93,600
6,269,328
a
Capstone
Copper
Corp.
................................
Canada
623,400
2,838,820
a
Glencore
plc
.........................................
Australia
364,400
2,245,401
Rio
Tinto
plc,
ADR
.....................................
Australia
42,700
3,036,824
Teck
Resources
Ltd.,
B
.................................
Canada
47,500
1,874,350
22,423,901
Electrical
Components
&
Equipment
1.3%
a
Fluence
Energy,
Inc.
...................................
United
States
80,700
740,019
a
FREYR
Battery
SA
....................................
Norway
225,800
2,027,684
a,c
SES
AI
Corp.
........................................
Singapore
196,600
1,266,104
a
Shoals
Technologies
Group,
Inc.,
A
........................
United
States
132,300
1,320,354
5,354,161
Environmental
&
Facilities
Services
0.4%
a
Li-Cycle
Holdings
Corp.
.................................
Canada
248,500
1,612,765
a
Fertilizers
&
Agricultural
Chemicals
1.8%
Corteva
,
Inc.
.........................................
United
States
70,800
4,084,452
Nutrien
Ltd.
..........................................
Canada
35,100
3,448,575
7,533,027
Food
Distributors
0.4%
a
Performance
Food
Group
Co.
............................
United
States
32,100
1,580,925
a
Gold
7.4%
Agnico
Eagle
Mines
Ltd.
................................
Canada
85,400
4,971,169
Alamos
Gold,
Inc.,
A
...................................
Canada
402,900
3,129,990
Barrick
Gold
Corp.
....................................
Canada
327,291
7,301,862
Newcrest
Mining
Ltd.
...................................
Australia
26,800
503,251
Newmont
Corp.
.......................................
United
States
142,500
10,381,125
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Natural
Resources
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Gold
(continued)
SSR
Mining,
Inc.
......................................
Canada
184,700
$
4,065,247
30,352,644
Heavy
Electrical
Equipment
0.3%
a
TPI
Composites,
Inc.
...................................
United
States
101,400
1,160,016
a
Industrial
Gases
3.0%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
26,100
6,109,227
Linde
plc
............................................
United
Kingdom
19,800
6,176,808
12,286,035
Industrial
Machinery
0.7%
Xylem,
Inc.
..........................................
United
States
34,700
2,793,350
Integrated
Oil
&
Gas
17.7%
Chevron
Corp.
.......................................
United
States
116,600
18,267,722
Exxon
Mobil
Corp.
.....................................
United
States
193,300
16,478,825
Occidental
Petroleum
Corp.
.............................
United
States
86,300
4,754,267
Shell
plc,
ADR
........................................
Netherlands
250,000
13,357,500
Suncor
Energy,
Inc.
....................................
Canada
343,800
12,358,762
TotalEnergies
SE,
ADR
.................................
France
162,010
7,891,507
73,108,583
Marine
0.2%
Eneti
,
Inc.
...........................................
United
States
155,500
940,775
Metal
&
Glass
Containers
1.2%
Ball
Corp.
...........................................
United
States
36,900
2,994,804
Crown
Holdings,
Inc.
...................................
United
States
17,300
1,903,692
4,898,496
Oil
&
Gas
Drilling
1.4%
Helmerich
&
Payne,
Inc.
................................
United
States
64,500
2,968,935
Patterson-UTI
Energy,
Inc.
..............................
United
States
171,700
2,822,748
5,791,683
Oil
&
Gas
Equipment
&
Services
10.7%
Baker
Hughes
Co.
.....................................
United
States
157,400
4,882,548
Cactus,
Inc.,
A
........................................
United
States
32,000
1,597,760
ChampionX
Corp.
.....................................
United
States
129,700
2,736,670
Halliburton
Co.
.......................................
United
States
147,000
5,236,140
a
Liberty
Energy,
Inc.,
A
..................................
United
States
189,900
3,064,986
a
NexTier
Oilfield
Solutions,
Inc.
............................
United
States
187,400
2,067,022
a
Nine
Energy
Service,
Inc.
...............................
United
States
288,992
765,829
a
Oceaneering
International,
Inc.
...........................
United
States
158,200
1,792,406
a
Oil
States
International,
Inc.
.............................
United
States
250,600
1,694,056
a
Ranger
Energy
Services,
Inc.
............................
United
States
335,595
3,396,221
Schlumberger
NV
.....................................
United
States
255,000
9,947,550
a
Schoeller-Bleckmann
Oilfield
Equipment
AG
.................
Austria
17,600
1,006,998
a
Select
Energy
Services,
Inc.,
A
...........................
United
States
226,719
1,759,340
a,c
Technip
Energies
NV
...................................
France
40,899
496,974
a
TechnipFMC
plc
......................................
United
Kingdom
566,700
3,921,564
44,366,064
Oil
&
Gas
Exploration
&
Production
18.5%
Aker
BP
ASA
.........................................
Norway
89,900
3,220,347
Canadian
Natural
Resources
Ltd.
.........................
Canada
181,500
11,233,461
ConocoPhillips
.......................................
United
States
182,000
17,384,640
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Natural
Resources
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Oil
&
Gas
Exploration
&
Production
(continued)
Coterra
Energy,
Inc.
...................................
United
States
352,400
$
10,145,596
Devon
Energy
Corp.
...................................
United
States
118,000
6,864,060
EOG
Resources,
Inc.
..................................
United
States
95,400
11,138,904
EQT
Corp.
..........................................
United
States
99,000
3,935,250
Hess
Corp.
..........................................
United
States
50,600
5,215,342
Pioneer
Natural
Resources
Co.
...........................
United
States
29,301
6,811,603
75,949,203
Oil
&
Gas
Refining
&
Marketing
6.1%
Marathon
Petroleum
Corp.
..............................
United
States
105,500
9,205,930
Phillips
66
...........................................
United
States
86,000
7,461,360
Valero
Energy
Corp.
...................................
United
States
76,200
8,494,776
25,162,066
Oil
&
Gas
Storage
&
Transportation
8.0%
Enbridge,
Inc.
........................................
Canada
71,000
3,098,440
Kinder
Morgan,
Inc.
....................................
United
States
341,700
6,201,855
New
Fortress
Energy,
Inc.
...............................
United
States
45,800
1,776,124
Targa
Resources
Corp.
.................................
United
States
57,800
4,243,098
TC
Energy
Corp.
......................................
Canada
176,300
9,326,270
Williams
Cos.,
Inc.
(The)
................................
United
States
250,600
8,593,074
33,238,861
Paper
Packaging
0.5%
Packaging
Corp.
of
America
.............................
United
States
12,800
2,062,976
Semiconductor
Equipment
0.4%
a
SolarEdge
Technologies,
Inc.
............................
United
States
6,700
1,677,747
a
Specialty
Chemicals
1.1%
Albemarle
Corp.
......................................
United
States
8,100
1,561,923
Ecolab,
Inc.
..........................................
United
States
9,900
1,676,466
Neo
Performance
Materials,
Inc.
..........................
Canada
23,600
237,167
b
Neo
Performance
Materials,
Inc.,
144A
.....................
Canada
85,000
854,201
4,329,757
Steel
0.8%
Vale
SA,
ADR
........................................
Brazil
188,800
3,188,832
Trading
Companies
&
Distributors
0.9%
a
Univar
Solutions,
Inc.
..................................
United
States
126,200
3,674,944
a
Total
Common
Stocks
(Cost
$266,815,248)
.....................................
394,836,665
Warrants
a
a
a
a
a
Warrants
0.2%
Integrated
Oil
&
Gas
0.2%
a
Occidental
Petroleum
Corp.,
8/03/27
.......................
United
States
17,900
603,946
Total
Warrants
(Cost
$88,605)
.................................................
603,946
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Natural
Resources
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Convertible
Bonds
0.3%
Oil
&
Gas
Equipment
&
Services
0.3%
b
Oil
States
International,
Inc.,
Senior
Note,
144A,
4.75%,
4/01/26
..
United
States
1,200,000
$
1,216,500
Total
Convertible
Bonds
(Cost
$1,200,000)
.....................................
1,216,500
Total
Long
Term
Investments
(Cost
$268,103,853)
...............................
396,657,111
a
Short
Term
Investments
5.4%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
4.5%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
18,559,837
18,559,837
Total
Money
Market
Funds
(Cost
$18,559,837)
..................................
18,559,837
f
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.9%
Money
Market
Funds
0.9%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
3,718,640
3,718,640
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$3,718,640)
.................................................................
3,718,640
Total
Short
Term
Investments
(Cost
$22,278,477
)
................................
22,278,477
a
Total
Investments
(Cost
$290,382,330)
101.6%
..................................
$418,935,588
Other
Assets,
less
Liabilities
(1.6)%
...........................................
(6,455,791)
Net
Assets
100.0%
...........................................................
$412,479,797
See
Abbreviations
on
page
51
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
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
April
30,
2022,
the
aggregate
value
of
these
securities
was
$2,305,275,
representing
0.6%
of
net
assets.
c
A
portion
or
all
of
the
security
is
on
loan
at
April
30,
2022.
See
Note
1(d).
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
f
See
Note
1(d)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
April
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$660,647,203
$268,103,853
Cost
-
Non-controlled
affiliates
(Note
3f)
.......................................
11,193,979
22,278,477
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$4,669,539
and
$3,540,884
respectively)
............................................................
$848,655,918
$396,657,111
Value
-
Non-controlled
affiliates
(Note
3f)
.......................................
11,193,979
22,278,477
Foreign
currency,
at
value
(cost
$–
and
$96,589
respectively)
.........................
—
96,589
Receivables:
Investment
securities
sold
..................................................
9,356,827
3,032,689
Capital
shares
sold
.......................................................
301,347
1,023,801
Dividends
and
interest
....................................................
128,661
488,461
Total
assets
.........................................................
869,636,732
423,577,128
Liabilities:
Payables:
Investment
securities
purchased
.............................................
1,801,841
6,434,348
Capital
shares
redeemed
..................................................
1,664,402
424,923
Management
fees
........................................................
504,157
173,699
Distribution
fees
.........................................................
130,040
86,847
Transfer
agent
fees
.......................................................
73,364
96,011
Trustees'
fees
and
expenses
................................................
5,972
—
Payable
upon
return
of
securities
loaned
(Note
1
d
)
.................................
4,994,101
3,718,640
Accrued
expenses
and
other
liabilities
..........................................
302,518
162,863
Total
liabilities
........................................................
9,476,395
11,097,331
Net
assets,
at
value
................................................
$860,160,337
$412,479,797
Net
assets
consist
of:
Paid-in
capital
............................................................
$727,815,446
$491,121,766
Total
distributable
earnings
(losses)
............................................
132,344,891
(78,641,969)
Net
assets,
at
value
................................................
$860,160,337
$412,479,797
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
April
30,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Class
A:
Net
assets,
at
value
......................................................
$705,915,358
$289,402,757
Shares
outstanding
.......................................................
6,927,560
10,716,437
Net
asset
value
per
share
a
.................................................
$101.90
$27.01
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
...............
$107.83
$28.58
Class
C:
Net
assets,
at
value
......................................................
$33,905,140
$30,426,542
Shares
outstanding
.......................................................
358,447
1,150,496
Net
asset
value
and
maximum
offering
price
per
share
a
............................
$94.59
$26.45
Class
R6:
Net
assets,
at
value
......................................................
$9,613,928
$4,943,039
Shares
outstanding
.......................................................
88,966
169,471
Net
asset
value
and
maximum
offering
price
per
share
............................
$108.06
$29.17
Advisor
Class:
Net
assets,
at
value
......................................................
$110,725,911
$87,707,459
Shares
outstanding
.......................................................
1,040,108
3,027,146
Net
asset
value
and
maximum
offering
price
per
share
............................
$106.46
$28.97
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Operations
for
the
year
ended
April
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$–
and
$343,157,
respectively)
Unaffiliated
issuers
.......................................................
$5,532,663
$9,589,668
Non-controlled
affiliates
(Not
e
3f)
............................................
2,027
1,128
Interest:
Unaffiliated
issuers
.......................................................
105,624
57,000
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
....................................
321,604
56,836
Non-controlled
affiliates
(N
ote
3
f
)
............................................
2,387
398
Total
investment
income
..................................................
5,964,305
9,705,030
Expenses:
Management
fees
(Note
3
a
)
..................................................
7,076,435
1,586,257
Distribution
fees:
(Note
3c
)
    Class
A
...............................................................
2,424,699
533,367
    Class
C
...............................................................
433,486
274,475
Transfer
agent
fees:
(Note
3e
)
    Class
A
...............................................................
1,517,770
478,701
    Class
C
...............................................................
77,523
63,034
    Class
R6
..............................................................
15,190
4,427
    Advisor
Class
...........................................................
251,917
118,338
Custodian
fees
(Note
4
)
.....................................................
27,241
3,302
Reports
to
shareholders
fees
.................................................
184,316
100,978
Registration
and
filing
fees
...................................................
118,446
77,329
Professional
fees
..........................................................
90,119
68,435
Trustees'
fees
and
expenses
.................................................
17,018
2,580
Other
...................................................................
52,971
33,267
Total
expenses
........................................................
12,287,131
3,344,490
Expense
reductions
(Note
4
)
..............................................
(211)
—
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
.............................
(44,026)
(18,131)
Net
expenses
........................................................
12,242,894
3,326,359
Net
investment
income
(loss)
...........................................
(6,278,589)
6,378,671
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
(8,447,950)
22,525,181
Foreign
currency
transactions
...............................................
—
30,266
Net
realized
gain
(loss)
.................................................
(8,447,950)
22,555,447
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
(361,108,400)
62,258,641
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
.............
—
(2,741)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(361,108,400)
62,255,900
Net
realized
and
unrealized
gain
(loss)
...........................................
(369,556,350)
84,811,347
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$(375,834,939)
$91,190,018
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(6,278,589)
$(8,190,243)
$6,378,671
$3,277,215
Net
realized
gain
(loss)
............
(8,447,950)
260,875,031
22,555,447
(40,534,611)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(361,108,400)
37,007,017
62,255,900
118,462,452
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(375,834,939)
289,691,805
91,190,018
81,205,056
Distributions
to
shareholders:
Class
A
........................
(116,449,013)
(158,473,630)
(2,494,288)
(3,383,596)
Class
C
........................
(5,802,207)
(9,137,943)
(89,554)
(282,821)
Class
R6
.......................
(1,531,760)
(1,586,782)
(38,089)
(30,669)
Advisor
Class
...................
(18,710,888)
(27,324,424)
(604,573)
(789,349)
Total
distributions
to
shareholders
.....
(142,493,868)
(196,522,779)
(3,226,504)
(4,486,435)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(32,374,163)
124,171,813
49,938,829
(2,174,380)
Class
C
........................
(9,481,659)
14,137,153
(5,131,362)
(5,035,749)
Class
R6
.......................
(1,164,486)
6,785,898
2,505,666
437,681
Advisor
Class
...................
(26,838,261)
32,584,271
32,039,388
(812,850)
Total
capital
share
transactions
.......
(69,858,569)
177,679,135
79,352,521
(7,585,298)
Net
increase
(decrease)
in
net
assets
.....................
(588,187,376)
270,848,161
167,316,035
69,133,323
Net
assets:
Beginning
of
year
..................
1,448,347,713
1,177,499,552
245,163,762
176,030,439
End
of
year
......................
$860,160,337
$1,448,347,713
$412,479,797
$245,163,762
Franklin
Strategic
Series
Notes
to
Financial
Statements
38
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
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, two
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Funds
offer four classes
of
shares: Class A,
Class
C,
Class R6
and
Advisor
Class.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period. Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
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
Funds' administrator
has
responsibility
for
oversight
of
valuation,
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
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.
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,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
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
Franklin
Strategic
Series
Notes
to
Financial
Statements
39
franklintempleton.com
Annual
Report
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
April
30,
2022,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
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.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Purchased
on
a
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
d.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statements
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
40
franklintempleton.com
Annual
Report
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
e.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
April
30,
2022, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
h.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Securities
Lending
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
41
franklintempleton.com
Annual
Report
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
April
30,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
April
30,
2022
Shares
sold
a
...................................
697,466
$95,076,826
4,574,724
$112,358,901
Shares
issued
in
reinvestment
of
distributions
..........
920,138
111,042,205
113,195
2,454,070
Shares
redeemed
...............................
(1,787,600)
(238,493,194)
(2,769,168)
(64,874,142)
Net
increase
(decrease)
..........................
(169,996)
$(32,374,163)
1,918,751
$49,938,829
Year
ended
April
30,
2021
Shares
sold
a
...................................
1,106,111
$190,970,597
2,266,637
$38,321,213
Shares
issued
in
reinvestment
of
distributions
..........
873,696
151,123,087
195,163
3,313,861
Shares
redeemed
...............................
(1,263,851)
(217,921,871)
(2,741,345)
(43,809,454)
Net
increase
(decrease)
..........................
715,956
$124,171,813
(279,545)
$(2,174,380)
Class
C
Class
C
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
58,272
$7,410,166
528,718
$12,503,124
Shares
issued
in
reinvestment
of
distributions
..........
51,346
5,768,235
4,156
88,531
Shares
redeemed
a
..............................
(174,846)
(22,660,060)
(799,586)
(17,723,017)
Net
increase
(decrease)
..........................
(65,228)
$(9,481,659)
(266,712)
$(5,131,362)
Year
ended
April
30,
2021
Shares
sold
...................................
139,814
$22,954,794
375,909
$6,161,042
Shares
issued
in
reinvestment
of
distributions
..........
56,116
9,105,394
16,868
281,023
Shares
redeemed
a
..............................
(110,459)
(17,923,035)
(740,499)
(11,477,814)
Net
increase
(decrease)
..........................
85,471
$14,137,153
(347,722)
$(5,035,749)
Class
R6
Class
R6
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
30,316
$4,514,817
136,937
$3,702,675
Shares
issued
in
reinvestment
of
distributions
..........
11,670
1,491,452
1,629
38,088
Shares
redeemed
...............................
(50,114)
(7,170,755)
(48,892)
(1,235,097)
Net
increase
(decrease)
..........................
(8,128)
$(1,164,486)
89,674
$2,505,666
Year
ended
April
30,
2021
Shares
sold
...................................
59,665
$10,868,376
49,526
$940,798
Shares
issued
in
reinvestment
of
distributions
..........
8,532
1,552,442
1,679
30,669
Shares
redeemed
...............................
(31,511)
(5,634,920)
(28,743)
(533,786)
Net
increase
(decrease)
..........................
36,686
$6,785,898
22,462
$437,681
Advisor
Class
1.
Organization
and
Significant
Accounting
Policies
(continued)
h.
Guarantees
and
Indemnifications
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
42
franklintempleton.com
Annual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
Franklin
Biotechnology
Discovery
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Year
ended
April
30,
2022
Shares
sold
...................................
212,105
$29,010,753
1,902,955
$49,991,010
Shares
issued
in
reinvestment
of
distributions
..........
134,287
16,914,739
25,738
598,134
Shares
redeemed
...............................
(520,642)
(72,763,753)
(746,824)
(18,549,756)
Net
increase
(decrease)
..........................
(174,250)
$(26,838,261)
1,181,869
$32,039,388
Year
ended
April
30,
2021
Shares
sold
...................................
482,142
$85,624,728
940,812
$16,811,124
Shares
issued
in
reinvestment
of
distributions
..........
137,265
24,655,507
43,029
781,847
Shares
redeemed
...............................
(431,123)
(77,695,964)
(1,086,738)
(18,405,821)
Net
increase
(decrease)
..........................
188,284
$32,584,271
(102,897)
$(812,850)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.775%
Up
to
and
including
$100
million
0.650%
Over
$100
million,
up
to
and
including
$200
million
0.635%
Over
$200
million,
up
to
and
including
$250
million
0.585%
Over
$250
million,
up
to
and
including
$700
million
0.550%
Over
$700
billion,
up
to
and
including
$1.2
billion
0.525%
Over
$1.2
billion,
up
to
and
including
$7.5
billion
0.515%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.505%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.495%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.475%
In
excess
of
$15
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
43
franklintempleton.com
Annual
Report
Franklin
Natural
Resources
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
year
ended
April
30,
2022,
each
Fund's
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
the
Funds’
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
The
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Gross
effective
investment
management
fee
rate
........
0.593%
0.534%
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Reimbursement
Plans:
Class
A
...............................
0.35%
0.35%
Class
C
...............................
1.00%
1.00%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
44
franklintempleton.com
Annual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
year:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
April
30,
2022,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
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.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
April
30,
2022,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$126,521
$58,023
CDSC
retained
...........................
$21,371
$6,334
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Transfer
agent
fees
........................
$796,548
$326,834
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
24
%
$
62,712,992
$
241,240,346
$
(297,753,460)
$
—
$
—
$
6,199,878
6,199,878
$
2,027
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
45
franklintempleton.com
Annual
Report
g.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2022.
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses. During
the
year
ended
April
30,
2022
the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Biotechnology
Discovery
Fund
(continued)
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
24
%
$28,782,225
$259,311,031
$(283,099,155)
$—
$—
$4,994,101
4,994,101
$2,387
Total
Affiliated
Securities
...
$91,495,217
$500,551,377
$(580,852,615)
$—
$—
$11,193,979
$4,414
Franklin
Natural
Resources
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$
11,479,563
$
108,587,852
$
(101,507,578)
$
—
$
—
$
18,559,837
18,559,837
$
1,128
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$450,105
$87,590,510
$(84,321,975)
$—
$—
$3,718,640
3,718,640
$398
Total
Affiliated
Securities
...
$11,929,668
$196,178,362
$(185,829,553)
$—
$—
$22,278,477
$1,526
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
46
franklintempleton.com
Annual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
April
30,
2022,
the
capital
loss
carryforwards
were
as
follows:
During
the
year
ended
April
30,
2022,
the
following Funds
utilized
capital
loss
carryforwards
as
follows:
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
April
30,
2022,
the
Franklin
Biotechnology
Discovery
Fund
deferred
post-October
capital
losses
of
$43,500,972
and
late-year
ordinary
losses
of
$4,562,217.
The
tax
character
of
distributions
paid
during
the
years
ended
April
30,
2022
and
2021,
was
as
follows:
At
April
30,
2022,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
ordinary
income
for
income
tax
purposes
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
—
$
6,489,737
Long
term
.............................
—
201,797,349
Total
capital
loss
carryforwards
............
$—
$208,287,086
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Capital
loss
utilized
carryforwards
....
$—
$22,111,530
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
2022
2021
2022
2021
Distributions
paid
from:
Ordinary
income
........................
$17,767,039
$82,206,647
$3,226,504
$4,486,435
Long
term
capital
gain
....................
124,726,829
114,316,132
—
—
$142,493,868
$196,522,779
$3,226,504
$4,486,435
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
a
a
a
Cost
of
investments
.......................
$679,441,813
$297,860,720
Unrealized
appreciation
.....................
$320,631,010
$143,663,880
Unrealized
depreciation
.....................
(140,222,926)
(22,589,012)
Net
unrealized
appreciation
(depreciation)
.......
$180,408,084
$121,074,868
Distributable
earnings:
Undistributed
ordinary
income
................
$—
$6,398,815
Total
distributable
earnings
..................
$—
$6,398,815
Franklin
Strategic
Series
Notes
to
Financial
Statements
47
franklintempleton.com
Annual
Report
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
corporate
actions,
passive
foreign
investment
company
shares
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
April
30,
2022,
were
as
follows:
At
April
30,
2022,
in
connection
with
securities
lending
transactions,
the
Franklin
Biotechnology
Discovery
Fund
and
Franklin
Natural
Resources
Fund
loaned
equity
investments
and
received
$4,994,101
and
$3,718,640
of
cash
collateral,
respectively.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
7.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
8.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
9.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
April
30,
2022,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Purchases
..............................
$307,512,095
$152,229,170
Sales
..................................
$486,092,018
$79,158,862
5.
Income
Taxes
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
48
franklintempleton.com
Annual
Report
10.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
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
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
year
ended
April
30,
2022,
investments
in
“affiliated
companies”
were
as
follows:
11.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
year
ended
April
30,
2022,
the
Funds
did
not
use
the
Global
Credit
Facility.
Principal
Amount
*
/
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Biotechnology
Discovery
Fund
189,499
Artiva
Biotherapeutics
,
Inc.,
B
...................
2/22/21
$
2,084,489
$
797,876
2,652,900
a
HilleVax
,
Inc.,
6%,
8/31/22
.....................
8/31/21
2,652,900
3,227,591
779,505
Pipeline
Therapeutics,
Inc.,
C
...................
2/09/21
2,088,995
751,599
Total
Restricted
Securities
(Value
is
0.6%
of
Net
Assets)
..............
$6,826,384
$4,777,066
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$1,865,093
as
of
April
30,
2022.
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Artiva
Biotherapeutics
,
Inc.,
B
..........
$
2,084,489
$
—
$
—
$
—
$
—
a
$—
a
—
$
—
Total
Affiliated
Securities
(Value
is
0.
0
%
of
Net
Assets)
..........
$2,084,489
$—
$—
$—
$—
$—
$—
a
As
of
April
30,
2022,
no
longer
an
affiliate.
9.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
49
franklintempleton.com
Annual
Report
12.
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
April
30,
2022,
in
valuing
the
Fund's
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
........................
$
843,715,228
$
—
$
—
$
843,715,228
Preferred
Stocks
........................
—
—
1,549,475
1,549,475
Warrants
..............................
87,602
—
—
87,602
Corporate
Bonds
........................
—
—
3,227,591
3,227,591
Escrows
and
Litigation
Trusts
...............
—
—
76,022
76,022
Short
Term
Investments
...................
11,193,979
—
—
11,193,979
Total
Investments
in
Securities
...........
$854,996,809
$—
$4,853,088
$859,849,897
Level
1
Level
2
Level
3
Total
Franklin
Natural
Resources
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Agricultural
Products
....................
$
4,984,121
$
—
$
—
$
4,984,121
Construction
Machinery
&
Heavy
Trucks
.....
1,681,668
—
—
1,681,668
Construction
Materials
..................
2,727,494
—
—
2,727,494
Copper
..............................
14,716,813
3,022,943
—
17,739,756
Diversified
Chemicals
...................
4,216,815
—
—
4,216,815
Diversified
Metals
&
Mining
...............
14,478,570
7,945,331
—
22,423,901
Electrical
Components
&
Equipment
........
5,354,161
—
—
5,354,161
Environmental
&
Facilities
Services
.........
1,612,765
—
—
1,612,765
Fertilizers
&
Agricultural
Chemicals
.........
7,533,027
—
—
7,533,027
Food
Distributors
......................
1,580,925
—
—
1,580,925
Gold
................................
29,849,393
503,251
—
30,352,644
Heavy
Electrical
Equipment
..............
1,160,016
—
—
1,160,016
Industrial
Gases
.......................
12,286,035
—
—
12,286,035
Industrial
Machinery
....................
2,793,350
—
—
2,793,350
Integrated
Oil
&
Gas
....................
73,108,583
—
—
73,108,583
Marine
..............................
940,775
—
—
940,775
Metal
&
Glass
Containers
................
4,898,496
—
—
4,898,496
Oil
&
Gas
Drilling
......................
5,791,683
—
—
5,791,683
Oil
&
Gas
Equipment
&
Services
...........
42,862,092
1,503,972
—
44,366,064
Oil
&
Gas
Exploration
&
Production
.........
72,728,856
3,220,347
—
75,949,203
Oil
&
Gas
Refining
&
Marketing
............
25,162,066
—
—
25,162,066
Oil
&
Gas
Storage
&
Transportation
.........
33,238,861
—
—
33,238,861
Franklin
Strategic
Series
Notes
to
Financial
Statements
50
franklintempleton.com
Annual
Report
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 year.
At
April
30,
2022,
the
reconciliation is
as follows:
Level
1
Level
2
Level
3
Total
Franklin
Natural
Resources
Fund
(continued)
Assets:
Common
Stocks:
Paper
Packaging
......................
$
2,062,976
$
—
$
—
$
2,062,976
Semiconductor
Equipment
...............
1,677,747
—
—
1,677,747
Specialty
Chemicals
....................
3,475,556
854,201
—
4,329,757
Steel
................................
3,188,832
—
—
3,188,832
Trading
Companies
&
Distributors
..........
3,674,944
—
—
3,674,944
Warrants
..............................
603,946
—
—
603,946
Convertible
Bonds
.......................
—
1,216,500
—
1,216,500
Short
Term
Investments
...................
22,278,477
—
—
22,278,477
Total
Investments
in
Securities
...........
$400,669,043
$18,266,545
b
$—
$418,935,588
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
foreign
securities
valued
at
$16,195,844,
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.
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Biotechnology
......
$
—
c
$
—
$
—
c
$
—
$
—
$
—
$
(2,597,516)
$
2,597,516
$
—
$
—
Capital
Markets
.....
5,631,994
—
(5,191,890)
—
—
—
—
(440,104)
—
—
Convertible
Preferred
Stocks
:
Pharmaceuticals
....
5,000,000
—
(4,999,991)
—
—
—
—
(9)
—
—
Preferred
Stocks
:
Biotechnology
......
5,574,503
—
(11,745,652)
—
—
—
7,620,274
(697,526)
751,599
(976,358)
Health
Care
Providers
&
Services
........
2,084,489
—
—
—
—
—
—
(1,286,613)
797,876
(1,286,613)
Pharmaceuticals
....
2,087,102
2,087,101
(4,174,203)
—
—
—
—
—
—
—
Corporate
Bonds
:
Biotechnology
......
—
2,652,900
—
—
—
—
—
574,691
3,227,591
574,691
Escrows
and
Litigation
Trusts
...........
851,316
26,589
(852,046)
—
—
—
(1,087,487)
1,137,650
76,022
49,433
Total
Investments
in
Securities
............
$21,229,404
$4,766,590
$(26,963,782)
$—
$—
$—
$3,935,271
$1,885,605
$4,853,088
$(1,638,847)
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
51
franklintempleton.com
Annual
Report
13.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Balance
at
Beginning
of
Year
Purchases
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a          
a
a
a
a
a
a
a
a
a
Franklin
Natural
Resources
Fund
Assets:
Investments
in
Securities:
Common
Stocks
Consumer
Finance
...
$
743,430
$
—
$
(743,430)
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Environmental
&
Facilities
Services
..
1,738,000
—
(1,738,000)
—
—
—
—
—
—
—
Investment
Banking
&
Brokerage
.......
3,796,238
—
(3,688,211)
—
—
—
—
(108,027)
—
—
Total
Investments
in
Securities
.
$6,277,668
$—
$(6,169,641)
$—
$—
$—
$—
$(108,027)
$—
$—
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.
c
Includes
securities
determined
to
have
no
value.
Selected
Portfolio
ADR
American
Depositary
Receipt
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Report
of
Independent
Registered
Public
Accounting
Firm
52
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Strategic
Series
and
Shareholders
of
Franklin
Biotechnology
Discovery
Fund
and
Franklin
Natural
Resources
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
Franklin
Biotechnology
Discovery
Fund
and
Franklin
Natural
Resources
Fund
(two
of
the
funds
constituting
Franklin
Strategic
Series,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
April
30,
2022,
the
related
statements
of
operations
for
the
year
ended
April
30,
2022,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2022
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
April
30,
2022,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2022
and
each
of
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2022
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
April
30,
2022
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
PricewaterhouseCoopers
LLP
San
Francisco,
California
June
16,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Strategic
Series
Tax
Information
(unaudited)
53
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amount
s
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Funds
below
hereby
report
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
April
30,
2022:
Pursuant
to:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
$124,726,829
$—
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$5,044,561
$5,758,710
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$5,507,283
$10,152,285
Short-Term
Capital
Gain
Dividends
Distributed
§871(k)(2)(C)
$9,512,962
$—
Franklin
Strategic
Series
Board
Members
and
Officers
54
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1991
119
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
100
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
129
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Strategic
Series
55
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
129
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
120
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
120
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Strategic
Series
56
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
101
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(January
2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2013
140
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
39
of
the
investment
companies
in
Franklin
Templeton;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015),
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
and
Trustee
since
2013
and
Vice
President
since
1991
129
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
37
of
the
investment
companies
in
Franklin
Templeton.
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Breda
M.
Beckerle
(1958)
Interim
Chief
Compliance
Officer
Since
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Advisory
Services,
LLC,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
41
of
the
investment
companies
in
Franklin
Templeton.
Independent
Board
Members
(continued)
Franklin
Strategic
Series
57
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Sonal
Desai,
Ph.D.
(1963)
Vice
President
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Edward
D.
Perks
(1970)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
President
and
Director,
Franklin
Advisers,
Inc.
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Strategic
Series
58
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Strategic
Series
Shareholder
Information
59
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
STRATEGIC
SERIES
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
April
12,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Strategic
Series
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Funds.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
Franklin
Strategic
Series
Shareholder
Information
60
franklintempleton.com
Annual
Report
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
January
31,
2022.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Biotechnology
Discovery
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
health/biotechnology
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-
,
three-,
five
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
discussed
this
performance
with
management
and
management
explained
that
the
Fund
concentrates
its
investments
within
the
biotechnology
industries,
while
the
Performance
Universe
is
comprised
mostly
of
general
healthcare
funds.
Management
noted,
however,
that
the
Fund
also
underperformed
its
narrow
peer
group
of
biotechnology-only
sector
funds.
Management
explained
that
the
Fund’s
underperformance
versus
its
Performance
Universe
was
driven
by
stock
selection
and,
in
particular,
the
Fund’s
overweight
position
in
the
Hematology/Oncology
therapeutic
area
and
underweight
position
in
the
mega-cap
biotechnology
sector.
Management
reviewed
with
the
Board
the
enhancements
it
made
to
the
Fund’s
investment
processes
and
changes
in
the
Fund’s
portfolio
holdings
in
an
effort
to
improve
performance.
Management
represented
that
it
continues
to
have
confidence
in
the
Fund’s
portfolio
management
team.
The
Board
concluded
that
the
Fund’s
Management
Agreement
should
be
continued
for
an
additional
one-year
period,
and
management’s
efforts
should
continue
to
be
closely
monitored.
Franklin
Natural
Resources
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
global
natural
resources
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
five-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
one-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
discussed
this
performance
with
management
and
management
explained
that
the
Fund
outperformed
its
Performance
Universe
in
the
one-year
period
ended
January
31,
2022
due
to
the
Fund’s
heavier
weighting
in
energy
equities
versus
peers,
as
energy
equities
posted
strong
performance
over
the
period.
Management
also
explained
that
investments
of
the
Fund’s
peer
group
have
changed
over
the
past
two
to
three
years
as
peers
have
shifted
away
from
energy
investments
and
several
energy
focused
funds
have
closed.
Management
further
explained
that
the
Fund’s
benchmark
is
weighted
approximately
70%
in
energy
investments
and
that,
prior
to
the
pandemic,
the
Fund’s
portfolio
had
a
similar
weighting
to
energy
investments.
Management
also
explained
that
the
Fund
was
materially
overweight
energy
investments
over
the
three-
and
five-
year
periods
ended
January
31,
2022
versus
its
peers
and
that
this
overweight
position
adversely
impacted
the
Fund’s
relative
longer-term
performance.
Management
then
discussed
with
the
Board
the
actions
that
have
been
taken
in
an
effort
to
address
the
sources
of
the
Fund’s
longer-term
underperformance,
including
the
reduction
in
the
weighting
of
the
Fund’s
energy
investments
from
approximately
70%
to
60%.
The
Board
noted
that
the
Fund’s
one-year
annualized
total
return
was
43.59%
and
fell
in
the
second
quintile
of
the
Fund’s
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Franklin
Strategic
Series
Shareholder
Information
61
franklintempleton.com
Annual
Report
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
each
Fund
and
for
each
of
the
funds
in
each
Fund’s
respective
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Franklin
Biotechnology
Discovery
Fund
included
the
Fund
and
nine
other
health/
biotechnology
funds.
The
Expense
Group
for
the
Franklin
Natural
Resources
Fund
included
the
Fund,
four
other
global
natural
resources
funds
and
four
natural
resources
funds.
The
Board
noted
that
the
Management
Rates
and
actual
total
expense
ratios
for
the
Funds
were
below
the
medians
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds’
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Franklin
Natural
Resources
Fund
had
experienced
a
decrease
in
assets
and
would
not
be
expected
to
Franklin
Strategic
Series
Shareholder
Information
62
franklintempleton.com
Annual
Report
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
each
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
FSS2
A
06/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
and
Shareholder
Letter
Franklin
Strategic
Series
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
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franklintempleton.com
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ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Strategic
Income
Fund
A
Series
of
Franklin
Strategic
Series
April
30,
2022
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franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
April
30,
2022,
the
U.S.
economy
showed
progress
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment
and
rising
wages
and
personal
consumption.
Growth
mostly
accelerated
in
2021
as
the
reopening
of
businesses,
widespread
vaccinations
and
federal
assistance
programs
boosted
consumer
spending,
excepting
slower
third-quarter
growth
as
the
swiftly
spreading
Delta
variant
hindered
global
supply
chains.
The
U.S.
economy
contracted
in
2022’s
first
quarter
given
a
record
trade
deficit
and
a
decline
in
inventory
investment.
Inflation
increased
during
the
12-month
period,
influenced
by
pandemic-related
supply
and
demand
imbalances,
higher
energy
prices,
Russia’s
invasion
of
Ukraine
and
broader
price
pressures.
During
most
of
the
period,
the
U.S.
Federal
Reserve
(Fed)
continued
quantitative
easing
measures
to
bolster
credit
markets
and
encourage
economic
activity.
However,
the
Fed
decreased
its
monthly
asset
purchases
starting
in
November
2021,
increased
its
tapering
in
subsequent
months
and
ended
purchases
in
March
2022.
To
support
its
goals
of
maximizing
employment
and
returning
long-term
annual
inflation
to
2%,
the
Fed
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%
at
its
March
meeting.
Shortly
after
the
reporting
period,
at
its
May
meeting,
the
Fed
raised
its
key
target
rate
again
to
a
range
of
0.75%–1.00%
and
stated
its
anticipation
of
ongoing
increases.
Although
stocks
benefited
early
in
the
period
from
the
economic
recovery,
during
the
period’s
last
four
months,
investor
concerns
about
inflation,
geopolitics
and
interest
rates
reversed
most
gains,
and
most
bond
valuations
also
declined.
In
this
environment,
investment-grade
bonds,
as
measured
by
the
Bloomberg
U.S.
Aggregate
Bond
Index,
posted
a
-8.51%
total
return
for
the
12-month
period.
1
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
We
believe
active,
professional
investment
management
serves
investors
well.
We
also
recognize
the
important
role
of
financial
professionals
in
today’s
markets
and
encourage
investors
to
continue
to
seek
their
advice.
Amid
changing
markets
and
economic
conditions,
we
are
confident
investors
with
a
well-diversified
portfolio
and
a
patient,
long-term
outlook
should
be
well-positioned
for
the
years
ahead.
In
addition,
Franklin
Strategic
Income
Fund’s
annual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
All
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Edward
Perks,
CFA
President
and
Chief
Executive
Officer
–
Investment
Management
Franklin
Strategic
Series
This
letter
reflects
our
analysis
and
opinions
as
of
April
30,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Franklin
Strategic
Income
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
9
Financial
Highlights
and
Schedule
of
Investments
10
Financial
Statements
208
Notes
to
Financial
Statements
213
Report
of
Independent
Registered
Public
Accounting
Firm
234
Tax
Information
235
Board
Members
and
Officers
236
Shareholder
Information
241
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Franklin
Strategic
Income
Fund
This
annual
report
for
Franklin
Strategic
Income
Fund
covers
the
fiscal
year
ended
April
30,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
earn
a
high
level
of
current
income.
A
secondary
goal
is
capital
appreciation
over
the
long
term.
The
Fund
uses
an
active
asset
allocation
process
and
under
normal
market
conditions
invests
at
least
65%
of
its
assets
in
U.S.
and
foreign
debt
securities,
including
those
in
emerging
markets.
The
Fund
may
invest
in
all
varieties
of
fixed,
variable
and
floating
rate
income
securities,
including
bonds,
U.S.
and
foreign
government
and
agency
securities,
corporate
loans
(and
loan
participations),
mortgage-backed
securities
and
other
asset-backed
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-6.07%
cumulative
total
return
for
the
12
months
under
review.
In
comparison,
the
Bloomberg
U.S.
Aggregate
Bond
Index,
which
represents
the
U.S.
investment-grade
fixed
rate
taxable
bond
market,
posted
a
-8.51%
cumulative
total
return.
1
The
Lipper
Multi-
Sector
Income
Funds
Classification
Average,
which
consists
of
funds
chosen
by
Lipper
that
seek
current
income
by
allocating
assets
among
different
fixed
income
securities
sectors,
with
a
significant
portion
rated
below
investment
grade,
posted
a
-5.62%
cumulative
total
return.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
6
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Economic
and
Market
Overview
The
U.S.
bond
market,
as
measured
by
the
Bloomberg
U.S.
Aggregate
Bond
Index,
posted
a
-8.51%
total
return
for
the
12
months
ended
April
30,
2022.
1
Growing
inflation
amid
supply
chain
disruptions
and
increased
consumer
spending
led
to
tighter
monetary
policy,
reducing
the
value
of
most
bonds.
Geopolitical
instability
disrupted
financial
markets
late
in
the
12-month
period
following
Russia’s
invasion
of
Ukraine,
contributing
to
significant
volatility
in
bond
markets.
The
yield
curve
flattened
notably
during
the
period,
reflecting
investors’
expectations
that
short-term
interest
rates
would
continue
to
rise,
while
the
outlook
for
long-term
economic
growth
was
uncertain.
In
an
effort
to
control
inflation,
the
U.S.
Federal
Reserve
(Fed)
raised
the
federal
funds
target
rate
to
a
range
of
0.25%–0.50%,
the
first
such
increase
since
2018.
The
Fed
noted
in
its
March
2022
meeting
that
strength
in
the
U.S.
job
market
and
continued
inflationary
pressure,
exacerbated
by
the
war
in
Ukraine,
meant
it
anticipated
making
further
increases
to
the
federal
funds
target
rate.
Furthermore,
the
Fed
said
it
expected
to
begin
reducing
its
bond
holdings
at
a
future
meeting.
U.S.
Treasury
(UST)
bonds,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-7.35%
total
return
for
the
12-month
period.
1
The
10-year
UST
yield
(which
moves
inversely
to
price)
increased,
particularly
later
in
the
period
amid
high
inflation
and
the
Fed’s
less
accommodative
stance.
Mortgage-backed
securities
(MBS),
as
measured
by
the
Bloomberg
U.S.
MBS
Index,
posted
a
-8.76%
total
return
for
the
period
as
mortgage
rates
rose
to
the
highest
level
in
over
a
decade.
1
Corporate
bond
prices
also
declined
overall,
constrained
by
inflation,
rising
interest
rates
and
concerns
about
the
impact
of
higher
interest
rates
on
corporate
borrowing
costs
and
the
wider
economy.
Corporate
yield
spreads,
a
measure
of
the
difference
in
yields
between
corporate
bonds
and
similarly-
dated
USTs,
increased,
reflecting
investors’
increasing
risk-off
preferences.
In
this
environment,
high-yield
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
High
Yield
Bond
Index,
posted
a
-5.22%
total
return,
while
investment-grade
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-10.43%
total
return.
1
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
2.
Source:
Lipper,
a
Thomson
Reuters
Company.
For
the
12-month
period
ended
4/30/22,
this
category
consisted
of
359
funds.
Lipper
calculations
do
not
include
sales
charges
or
expense
subsidization
by
a
fund’s
manager.
Fund
performance
relative
to
the
average
may
have
differed
if
these
or
other
factors
had
been
considered.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Franklin
Strategic
Income
Fund
4
franklintempleton.com
Annual
Report
Investment
Strategy
We
use
an
active
asset
allocation
strategy
to
try
to
achieve
the
Fund’s
investment
goals.
We
employ
a
top-down
analysis
of
macroeconomic
trends
combined
with
a
bottom-
up
fundamental
analysis
of
market
sectors,
industries
and
issuers
to
try
to
take
advantage
of
varying
sector
reactions
to
economic
events.
We
regularly
enter
into
various
currency-
related
transactions
involving
derivative
instruments,
including
currency
and
cross
currency
forwards,
currency
swaps,
currency
and
currency
index
futures
contracts
and
currency
options.
The
Fund
also
regularly
enters
into
interest-rate
and
credit-related
transactions
involving
derivative
instruments,
including
interest-rate,
fixed
income
total
return
and
credit
default
swaps
and
interest
rate
and/or
bond
futures
contracts.
Manager’s
Discussion
Over
the
reporting
period,
against
the
backdrop
of
persistent
inflationary
pressures,
rising
geopolitical
instability,
tighter
monetary
policy
and
higher
interest-rates,
fixed
income
performance
was
mixed.
On
an
excess
returns
basis,
Treasury
Inflation-Protected
Securities
(TIPS),
non-agency
mortgage-backed
securities
(RMBS),
senior
secured
floating-rate
loans,
collateralized
loan
obligations
(CLOs)
and
high-yield
corporate
credit
(HY)
were
the
best
performers,
with
positive
excess
returns
at
period-end.
While
portfolio
positioning
was
diversified
from
a
risk
perspective,
the
Fund’s
largest
allocation
was
in
corporate
credit—inclusive
of
HY
and
investment-grade
corporate
credit
(IG),
senior
secured
floating-rate
bank
loans
and
CLOs—with
a
majority
of
credit
exposure
in
HY
corporate
securities.
We
increased
allocation
to
IG
and
senior
secured
floating-rate
loans
and
pared
exposure
to
HY.
As
economic
fundamentals
moderated,
concerns
remained
about
the
ability
of
individual
IG
companies
to
continue
to
push
through
price
increases
to
offset
input
cost
inflation,
especially
given
the
recent
jump
in
energy
prices.
We
remain
cautious
over
the
sector
due
to
current
levels
of
uncertainty
and
less
favorable
market
technical
conditions.
Amidst
the
Fed’s
apparent
determination
to
bring
inflation
under
control
(as
evidenced
by
the
recent
outsized
50
basis
point
rate
hike),
the
possibility
of
more
rate
increases
than
the
market
is
expecting
ultimately
benefits
floating-rate
assets
such
as
bank
loans.
We
retain
a
generally
constructive
view
on
the
HY
asset
class,
as
most
HY
issuers
in
the
past
few
years
have
been
able
to
strengthen
their
balance
sheets,
refinance
their
upcoming
maturities,
and
build
liquidity
buffers,
leaving
many
well-positioned
coming
into
this
challenging
period.
We
increased
our
allocation
to
marketplace
loans,
while
paring
our
exposure
to
sovereign
emerging
markets
securities
(EM),
foreign
currency
and
RMBS.
During
the
period,
our
allocation
to
RMBS,
senior
secured
floating-rate
loans
and
HY
allocations
were
the
most
significant
contributor
to
returns.
In
contrast,
our
allocation
to
EM
was
the
largest
detractor
from
Fund
performance.
As
the
continuing
Russia-Ukraine
war
led
to
significant
volatility
in
global
financial
markets,
the
EM
sector
was
directly
impacted
by
risk-off
sentiment
and
outflows,
resulting
in
it
being
the
worst
performing
fixed
income
asset
class.
Extreme
price
volatility
had
a
material
impact
on
performance.
IG
and
non-
dollar
developed
securities
also
detracted.
During
the
period,
foreign
currency
exposure
detracted
from
performance.
Thank
you
for
your
participation
in
Franklin
Strategic
Income
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Sonal
Desai,
Ph.D.
Patricia
O’Connor,
CFA
William
Chong,
CFA,
FRM
David
Yuen,
CFA,
FRM
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
Portfolio
Composition
4/30/22
%
of
Total
Net
Assets
Corporate
Bonds
45.0%
Management
Investment
Companies
10.5%
U.S.
Government
and
Agency
Securities
9.4%
Foreign
Government
and
Agency
Securities
8.1%
Asset-Backed
Securities
7.5%
Residential
Mortgage-Backed
Securities
7.0%
Marketplace
Loans
2.5%
Mortgage-Backed
Securities
2.2%
Senior
Floating
Rate
Interests
1.1%
Other
1.8%
Short-Term
Investments
&
Other
Net
Assets
4.9%
FRM
®
is
a
trademark
owned
by
Global
Association
of
Risk
Professionals
(GARP).
Franklin
Strategic
Income
Fund
5
franklintempleton.com
Annual
Report
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
April
30,
2022
Franklin
Strategic
Income
Fund
6
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
4/30/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-6.07%
-9.62%
5-Year
+5.31%
+0.28%
10-Year
+24.75%
+1.84%
Advisor
1-Year
-5.83%
-5.83%
5-Year
+6.63%
+1.29%
10-Year
+27.88%
+2.49%
30-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
(with
fee
waiver)
(without
fee
waiver)
A
4.10%
3.34%
3.27%
Advisor
4.55%
3.71%
3.63%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Strategic
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
See
page
8
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(5/1/12–4/30/22)
Advisor
Class
(5/1/12–4/30/22)
Franklin
Strategic
Income
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Changes
in
the
financial
strength
of
a
bond
issuer
or
in
a
bond’s
credit
rating
may
affect
its
value.
High
yields
reflect
the
higher
credit
risks
associated
with
certain
lower-rated
securities
held
in
the
portfolio.
Floating-rate
loans
and
high-yield
corporate
bonds
are
rated
below
investment
grade
and
are
subject
to
greater
risk
of
default,
which
could
result
in
loss
of
principal—a
risk
that
may
be
heightened
in
a
slowing
economy.
The
risks
of
foreign
securities
include
currency
fluctuations
and
political
uncertainty.
Investments
in
developing
markets
involve
heightened
risks
related
to
the
same
factors,
in
addition
to
those
associated
with
their
relatively
small
size
and
lesser
liquidity.
Investing
in
derivative
securities
and
the
use
of
foreign
currency
techniques
involve
special
risks
as
such
may
not
achieve
the
anticipated
benefits
and/or
may
result
in
losses
to
the
Fund.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
perfor-
mance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
8/31/22.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
the
sum
of
the
respective
class’s
dividend
distributions
over
the
past
12
months
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
4/30/22.
6.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
7.
Source:
Morningstar.
The
Bloomberg
U.S.
Aggregate
Bond
Index
measures
the
investment-grade,
U.S.
dollar-denominated,
fixed-rate
taxable
bond
market.
The
index
includes
Treasuries,
government-related
and
corporate
securities,
mortgage-backed
securities
(agency
fixed-rate
and
hybrid
adjustable-rate
mortgage
pass-throughs),
asset-backed
securities
and
commercial
mortgage-backed
securities
(agency
and
nonagency).
8.
Source:
Lipper,
a
Thomson
Reuters
Company.
The
Lipper
Multi-Sector
Income
Funds
Classification
Average
is
calculated
by
averaging
the
total
returns
of
all
funds
within
the
Lipper
Multi-Sector
Income
Funds
classification
in
the
Lipper
Open-End
underlying
funds
universe.
Lipper
Multi-Sector
Income
Funds
are
defined
as
funds
that
seek
current
income
by
allocating
assets
among
different
fixed
income
securities
sectors
(not
primarily
in
one
sector
except
for
defensive
purposes),
including
U.S.
and
foreign
governments,
with
a
significant
portion
rated
below
investment
grade.
For
the
12-month
period
ended
4/30/22,
there
were
359
funds
in
this
category.
Lipper
calculations
do
not
include
sales
charges,
but
include
reinvestment
of
any
income
or
distributions.
Fund
performance
relative
to
the
average
may
have
differed
if
these
and
other
factors
had
been
considered.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Consolidated
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–4/30/22)
Share
Class
Net
Investment
Income
A
$0.3378
C
$0.2975
R
$0.3147
R6
$0.3719
Advisor
$0.3612
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.87%
0.89%
Advisor
0.62%
0.64%
Your
Fund’s
Expenses
Franklin
Strategic
Income
Fund
9
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/21
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
Ending
Account
Value
4/30/22
Expenses
Paid
During
Period
11/1/21–4/30/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$923.20
$4.02
$1,020.62
$4.22
0.84%
C
$1,000
$921.30
$5.92
$1,018.64
$6.22
1.24%
R
$1,000
$922.70
$5.21
$1,019.38
$5.47
1.09%
R6
$1,000
$924.90
$2.31
$1,022.39
$2.43
0.48%
Advisor
$1,000
$924.40
$2.83
$1,021.86
$2.97
0.59%
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
2
a
Year
Ended
April
30,
2022
2021*
2020
a
2019
a
2018
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.44
$8.67
$9.61
$9.61
$9.84
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.37
0.38
0.42
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(0.84)
0.75
(0.90)
—
d
(0.32)
Total
from
investment
operations
....................
(0.55)
1.12
(0.52)
0.42
0.07
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.34)
(0.35)
(0.42)
(0.42)
(0.30)
Net
asset
value,
end
of
year
.......................
$8.55
$9.44
$8.67
$9.61
$9.61
Total
return
e
...................................
(6.07)%
13.05%
(5.72)%
4.52%
0.64%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.90%
0.88%
0.88%
0.89%
0.90%
Expenses
net
of
waiver
and
payments
by
affiliates
f
......
0.84%
0.86%
0.86%
0.84%
0.85%
Net
investment
income
...........................
3.11%
3.93%
4.01%
4.39%
3.93%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$2,609,533
$2,862,068
$2,686,523
$3,131,799
$3,291,002
Portfolio
turnover
rate
............................
52.98%
111.72%
g
118.64%
116.21%
g
115.94%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
h
....
41.46%
54.21%
g
86.69%
39.01%
g
47.40%
*Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
h
See
Note
1(i)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
Year
Ended
April
30,
2022
2021*
2020
a
2019
a
2018
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.44
$8.67
$9.61
$9.60
$9.84
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.33
0.34
0.38
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.84)
0.75
(0.90)
0.01
(0.33)
Total
from
investment
operations
....................
(0.59)
1.08
(0.56)
0.39
0.02
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.30)
(0.31)
(0.38)
(0.38)
(0.26)
Net
asset
value,
end
of
year
.......................
$8.55
$9.44
$8.67
$9.61
$9.60
Total
return
d
...................................
(6.48)%
12.58%
(6.11)%
4.19%
0.14%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.29%
1.28%
1.28%
1.29%
1.30%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
1.24%
1.26%
1.26%
1.24%
1.25%
Net
investment
income
...........................
2.70%
3.51%
3.61%
3.99%
3.53%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$171,374
$387,589
$518,795
$716,327
$1,078,890
Portfolio
turnover
rate
............................
52.98%
111.72%
f
118.64%
116.21%
f
115.94%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
g
....
41.46%
54.21%
f
86.69%
39.01%
f
47.40%
*Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions
.
g
See
Note
1(i)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Year
Ended
April
30,
2022
2021*
2020
a
2019
a
2018
a
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.40
$8.63
$9.57
$9.57
$9.81
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.34
0.36
0.39
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.85)
0.76
(0.91)
0.01
(0.33)
Total
from
investment
operations
....................
(0.58)
1.10
(0.55)
0.40
0.03
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.31)
(0.33)
(0.39)
(0.40)
(0.27)
Net
asset
value,
end
of
year
.......................
$8.51
$9.40
$8.63
$9.57
$9.57
Total
return
....................................
(6.33)%
12.83%
(5.98)%
4.28%
0.29%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.15%
1.13%
1.13%
1.14%
1.15%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
1.09%
1.11%
1.11%
1.09%
1.10%
Net
investment
income
...........................
2.86%
3.68%
3.76%
4.14%
3.68%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$48,447
$59,366
$62,063
$85,458
$105,692
Portfolio
turnover
rate
............................
52.98%
111.72%
e
118.64%
116.21%
e
115.94%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
f
....
41.46%
54.21%
e
86.69%
39.01%
e
47.40%
*Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
f
See
Note
1(i)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
Year
Ended
April
30,
2022
2021*
2020
a
2019
a
2018
a
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.45
$8.68
$9.63
$9.62
$9.86
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.32
0.40
0.43
0.45
0.43
Net
realized
and
unrealized
gains
(losses)
...........
(0.84)
0.75
(0.93)
0.02
(0.34)
Total
from
investment
operations
....................
(0.52)
1.15
(0.50)
0.47
0.09
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.37)
(0.38)
(0.45)
(0.46)
(0.33)
Net
asset
value,
end
of
year
.......................
$8.56
$9.45
$8.68
$9.63
$9.62
Total
return
....................................
(5.72)%
13.45%
(5.46)%
5.03%
0.95%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.54%
0.52%
0.51%
0.50%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.48%
0.50%
0.49%
0.45%
0.45%
Net
investment
income
...........................
3.47%
4.30%
4.38%
4.78%
4.33%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$136,184
$132,736
$133,575
$307,287
$433,068
Portfolio
turnover
rate
............................
52.98%
111.72%
e
118.64%
116.21%
e
115.94%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
f
....
41.46%
54.21%
e
86.69%
39.01%
e
47.40%
*Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
f
See
Note
1(i)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Year
Ended
April
30,
2022
2021*
2020
a
2019
a
2018
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.45
$8.68
$9.62
$9.62
$9.85
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.39
0.40
0.44
0.41
Net
realized
and
unrealized
gains
(losses)
...........
(0.84)
0.75
(0.90)
—
d
(0.32)
Total
from
investment
operations
....................
(0.53)
1.14
(0.50)
0.44
0.09
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
..
(0.36)
(0.37)
(0.44)
(0.44)
(0.32)
Net
asset
value,
end
of
year
.......................
$8.56
$9.45
$8.68
$9.62
$9.62
Total
return
....................................
(5.83)%
13.32%
(5.47)%
4.88%
0.79%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.65%
0.63%
0.63%
0.64%
0.65%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
0.59%
0.61%
0.61%
0.59%
0.60%
Net
investment
income
...........................
3.36%
4.18%
4.26%
4.64%
4.18%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$390,465
$462,624
$517,522
$608,317
$933,747
Portfolio
turnover
rate
............................
52.98%
111.72%
f
118.64%
116.21%
f
115.94%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
g
....
41.46%
54.21%
f
86.69%
39.01%
f
47.40%
*Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
g
See
Note
1(i)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Strategic
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.5%
Energy
Equipment
&
Services
0.1%
a
Weatherford
International
plc
.............................
United
States
151,545
$
4,891,873
Machinery
0.3%
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
406,124
8,483,610
Media
0.1%
a
Clear
Channel
Outdoor
Holdings,
Inc.
......................
United
States
285,564
702,488
a
iHeartMedia,
Inc.,
A
....................................
United
States
115,085
1,840,209
a,b
iHeartMedia,
Inc.,
B
...................................
United
States
1,941
28,864
2,571,561
Multiline
Retail
0.0%
a,b,c
K2016470219
South
Africa
Ltd.,
A
.........................
South
Africa
125,940,079
—
a,b,c
K2016470219
South
Africa
Ltd.,
B
.........................
South
Africa
12,532,821
—
—
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a,d
Amplify
Energy
Corp.
..................................
United
States
5,288
35,324
a,b,c
Riviera
Resources,
Inc.
.................................
United
States
84,462
—
35,324
Total
Common
Stocks
(Cost
$23,885,829)
......................................
15,982,368
Management
Investment
Companies
10.5%
Capital
Markets
10.5%
e
Franklin
Floating
Rate
Income
Fund
.......................
United
States
39,102,540
318,685,701
SPDR
Blackstone
Senior
Loan
ETF
.......................
United
States
750,000
33,352,500
352,038,201
Total
Management
Investment
Companies
(Cost
$411,245,063)
...................
352,038,201
Warrants
Warrants
0.0%
†
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a,b
Battalion
Oil
Corp.,
A,
10/08/22
...........................
United
States
10,639
22
a,b
Battalion
Oil
Corp.,
B,
10/08/22
...........................
United
States
13,300
2
a,b
Battalion
Oil
Corp.,
C,
10/08/22
...........................
United
States
17,100
—
a,b
Chaparral
Energy,
Inc.,
10/01/24
..........................
United
States
9
—
a,b
Chaparral
Energy,
Inc.,
10/01/25
..........................
United
States
9
—
24
Paper
&
Forest
Products
0.0%
†
a
Verso
Corp.,
7/25/23
...................................
United
States
4,095
47,826
Software
0.0%
a,b,c
WorkCapital
BSD
SARL,
2/13/26
..........................
Luxembourg
6,000,000
—
Total
Warrants
(Cost
$750,000)
................................................
47,850
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
f,g,h
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
664,480
491,251
Total
Convertible
Bonds
(Cost
$181,495)
.......................................
491,251
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
45.0%
Aerospace
&
Defense
0.6%
Boeing
Co.
(The)
,
Senior
Note
,
5.15
%
,
5/01/30
...............
United
States
8,100,000
$
8,052,887
h
TransDigm,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
3/15/26
....
United
States
13,000,000
12,949,495
21,002,382
Air
Freight
&
Logistics
0.1%
h
DAE
Funding
LLC
,
Senior
Note
,
144A,
1.55
%
,
8/01/24
.........
United
Arab
Emirates
2,300,000
2,147,225
FedEx
Corp.
,
Senior
Bond
,
4.05
%
,
2/15/48
..................
United
States
1,200,000
1,035,143
3,182,368
Airlines
0.9%
h
American
Airlines
Inc/AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.75
%
,
4/20/29
............................
United
States
5,900,000
5,694,680
h
Azul
Investments
LLP
,
Senior
Note
,
144A,
7.25
%
,
6/15/26
.......
Brazil
410,000
349,068
h
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.5
%
,
10/20/25
.....................................
United
States
10,400,000
10,339,258
h
Hawaiian
Brand
Intellectual
Property
Ltd.
/
HawaiianMiles
Loyalty
Ltd.
,
Senior
Secured
Note
,
144A,
5.75
%
,
1/20/26
............
United
States
8,200,000
8,008,366
h
International
Consolidated
Airlines
Group
SA
,
Senior
Note
,
Reg
S,
3.75
%
,
3/25/29
.....................................
United
Kingdom
3,000,000
EUR
2,735,915
h
United
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
4/15/26
.
United
States
1,700,000
1,643,050
28,770,337
Auto
Components
1.1%
h
Allison
Transmission,
Inc.
,
Senior
Bond,
144A,
5.875%,
6/01/29
.....................
United
States
7,000,000
6,920,130
Senior
Bond,
144A,
3.75%,
1/30/31
......................
United
States
3,400,000
2,946,542
Dana,
Inc.
,
Senior
Note
,
5.625
%
,
6/15/28
...................
United
States
9,000,000
8,599,770
h
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
8,600,000
7,062,750
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Bond,
4.875%,
3/15/27
..........................
United
States
4,700,000
4,389,471
Senior
Note,
5%,
7/15/29
.............................
United
States
8,300,000
7,410,696
37,329,359
Automobiles
0.3%
h
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
...........................................
United
Kingdom
11,800,000
9,837,424
Banks
1.3%
Banco
Santander
SA
,
Sub.
Bond
,
2.749
%
,
12/03/30
...........
Spain
3,000,000
2,480,163
Bank
of
America
Corp.
,
Senior
Bond
,
2.676%
to
6/18/40,
FRN
thereafter
,
6/19/41
...................................
United
States
4,000,000
3,000,737
China
Construction
Bank
Corp.
,
Sub.
Bond
,
4.25%
to
2/26/24,
FRN
thereafter
,
2/27/29
...................................
China
8,000,000
8,079,749
HSBC
Holdings
plc
,
Senior
Bond
,
2.848%
to
6/03/30,
FRN
thereafter
,
6/04/31
...........................................
United
Kingdom
8,300,000
7,176,197
JPMorgan
Chase
&
Co.
,
Senior
Bond,
2.522%
to
4/21/30,
FRN
thereafter,
4/22/31
.....
United
States
9,400,000
8,177,050
Senior
Bond,
2.525%
to
11/18/40,
FRN
thereafter,
11/19/41
....
United
States
4,000,000
2,974,313
h
Societe
Generale
SA
,
Senior
Bond
,
144A,
2.889%
to
6/08/31,
FRN
thereafter
,
6/09/32
...................................
France
7,500,000
6,146,740
SVB
Financial
Group
,
Senior
Bond
,
3.125
%
,
6/05/30
...........
United
States
2,700,000
2,425,292
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Banks
(continued)
h
UniCredit
SpA
,
Senior
Bond
,
144A,
3.127%
to
6/02/31,
FRN
thereafter
,
6/03/32
...................................
Italy
5,300,000
$
4,385,601
44,845,842
Beverages
0.3%
Anheuser-Busch
InBev
Worldwide,
Inc.
,
Senior
Bond
,
3.5
%
,
6/01/30
Belgium
1,300,000
1,234,514
h
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
9,000,000
7,844,850
9,079,364
Biotechnology
0.2%
AbbVie,
Inc.
,
Senior
Note
,
3.2
%
,
11/21/29
...................
United
States
6,000,000
5,593,022
Building
Products
0.8%
Carrier
Global
Corp.
,
Senior
Note
,
2.722
%
,
2/15/30
............
United
States
16,000,000
14,114,418
h
Eco
Material
Technologies,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
1/31/27
.....................................
United
States
5,000,000
4,847,125
Owens
Corning
,
Senior
Bond
,
4.3
%
,
7/15/47
.................
United
States
2,000,000
1,780,792
h
Standard
Industries,
Inc.
,
Senior
Bond,
144A,
4.75%,
1/15/28
......................
United
States
4,800,000
4,422,816
Senior
Bond,
144A,
4.375%,
7/15/30
.....................
United
States
1,600,000
1,336,000
Senior
Bond,
144A,
3.375%,
1/15/31
.....................
United
States
1,400,000
1,120,119
27,621,270
Capital
Markets
1.2%
Goldman
Sachs
Group,
Inc.
(The)
,
Senior
Bond,
3.21%
to
4/21/41,
FRN
thereafter,
4/22/42
......
United
States
7,000,000
5,648,537
Senior
Note,
0.673%
to
3/07/23,
FRN
thereafter,
3/08/24
......
United
States
8,500,000
8,294,912
Morgan
Stanley
,
Senior
Bond,
3.591%
to
7/21/27,
FRN
thereafter,
7/22/28
.....
United
States
10,000,000
9,592,769
Senior
Note,
3.737%
to
4/23/23,
FRN
thereafter,
4/24/24
......
United
States
8,500,000
8,499,534
h
MSCI,
Inc.
,
Senior
Bond
,
144A,
3.25
%
,
8/15/33
...............
United
States
11,800,000
9,988,228
42,023,980
Chemicals
3.8%
h
Alpek
SAB
de
CV
,
Senior
Bond
,
144A,
4.25
%
,
9/18/29
.........
Mexico
8,000,000
7,418,960
f,h
Anagram
International,
Inc.
/
Anagram
Holdings
LLC
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
..............................
United
States
689,264
706,579
h
ASP
Unifrax
Holdings,
Inc.
,
Senior
Note,
144A,
7.5%,
9/30/29
.......................
United
States
2,000,000
1,642,610
Senior
Secured
Note,
144A,
5.25%,
9/30/28
...............
United
States
3,000,000
2,649,720
h
Axalta
Coating
Systems
LLC
,
Senior
Note
,
144A,
3.375
%
,
2/15/29
United
States
4,150,000
3,596,514
h
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
Mexico
7,000,000
6,294,295
h
Braskem
Netherlands
Finance
BV
,
Senior
Bond
,
144A,
4.5
%
,
1/31/30
...........................................
Brazil
15,600,000
14,081,652
CF
Industries,
Inc.
,
Senior
Bond
,
5.15
%
,
3/15/34
..............
United
States
3,400,000
3,521,023
CNAC
HK
Finbridge
Co.
Ltd.
,
Senior
Note
,
4.875
%
,
3/14/25
.....
China
7,800,000
7,965,357
h
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........................................
Switzerland
6,700,000
6,206,378
h
CVR
Partners
LP
/
CVR
Nitrogen
Finance
Corp.
,
Senior
Secured
Note
,
144A,
6.125
%
,
6/15/28
...........................
United
States
3,000,000
2,944,260
h
Diamond
BC
BV
,
Senior
Note
,
144A,
4.625
%
,
10/01/29
.........
United
States
2,200,000
1,895,388
h
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
7,000,000
6,266,400
h
Gates
Global
LLC
/
Gates
Corp.
,
Senior
Note
,
144A,
6.25
%
,
1/15/26
United
States
12,500,000
12,202,625
h
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
5,000,000
5,218,975
f,h
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
..
United
States
2,500,000
2,464,225
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
(continued)
h
LSF11
A5
HoldCo
LLC
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
....
United
States
5,600,000
$
4,885,328
Methanex
Corp.
,
Senior
Note
,
5.125
%
,
10/15/27
..............
Canada
5,000,000
4,806,100
h
PMHC
II,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
...............
United
States
7,100,000
5,724,872
h
SABIC
Capital
II
BV
,
Senior
Bond
,
144A,
4.5
%
,
10/10/28
........
Saudi
Arabia
5,500,000
5,629,756
Sasol
Financing
USA
LLC
,
Senior
Bond
,
6.5
%
,
9/27/28
.........
South
Africa
8,900,000
8,849,849
h
Syngenta
Finance
NV
,
Senior
Note
,
144A,
4.892
%
,
4/24/25
......
Switzerland
8,000,000
8,035,228
Westlake
Corp.
,
Senior
Bond
,
3.375
%
,
6/15/30
...............
United
States
2,500,000
2,322,877
h
Yara
International
ASA
,
Senior
Bond
,
144A,
3.148
%
,
6/04/30
.....
Brazil
1,400,000
1,240,456
126,569,427
Commercial
Services
&
Supplies
0.5%
h
APCOA
Parking
Holdings
GmbH
,
Senior
Secured
Note
,
144A,
4.625
%
,
1/15/27
.....................................
Germany
1,700,000
EUR
1,663,810
h
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
...........
United
States
7,200,000
5,908,500
h
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
11,000,000
9,410,445
16,982,755
Communications
Equipment
0.3%
h
CommScope
Technologies
LLC
,
Senior
Bond
,
144A,
6
%
,
6/15/25
.
United
States
10,018,000
8,778,273
Construction
&
Engineering
0.1%
h
Arcosa,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
2,600,000
2,375,607
h
Rutas
2
and
7
Finance
Ltd.
,
Senior
Secured
Bond
,
144A,
Zero
Cpn.,
9/30/36
...........................................
United
States
1,160,000
779,004
3,154,611
Construction
Materials
0.1%
h
Cemex
SAB
de
CV
,
Senior
Bond
,
144A,
3.875
%
,
7/11/31
.......
Mexico
4,600,000
3,908,620
Consumer
Finance
0.4%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
,
Senior
Bond
,
3.4
%
,
10/29/33
.................................
Ireland
4,500,000
3,697,419
h
PRA
Group,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
............
United
States
2,600,000
2,409,927
h
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.........
United
States
9,000,000
7,964,775
14,072,121
Containers
&
Packaging
1.3%
h
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note
,
144A,
5.25
%
,
8/15/27
............................
United
States
3,700,000
3,184,442
h
Mauser
Packaging
Solutions
Holding
Co.
,
Senior
Note
,
144A,
7.25
%
,
4/15/25
...........................................
United
States
13,000,000
12,335,115
h
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
8/15/23
...........................................
United
States
6,625,000
6,726,230
h
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
..........
United
States
6,100,000
5,390,966
h
Pactiv
Evergreen
Group
Issuer,
Inc./Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
4,600,000
4,019,963
h
Sealed
Air
Corp.
,
Senior
Bond
,
144A,
5.125
%
,
12/01/24
........
United
States
9,000,000
9,169,290
WRKCo,
Inc.
,
Senior
Bond
,
3
%
,
6/15/33
....................
United
States
3,600,000
3,140,671
43,966,677
Diversified
Consumer
Services
0.2%
Grand
Canyon
University
,
5.125
%
,
10/01/28
.................
United
States
7,500,000
7,237,500
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
Financial
Services
0.5%
i
Cia
Securitizadora
de
Creditos
Financeiros
Vert-Fintech
,
12
,
Senior
Secured
Note
,
FRN
,
14.9
%
,
(
BZDIOVRA
+
5.75
%
),
2/14/24
....
Brazil
12,733,484
BRL
$
2,297,537
h
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6
%
,
8/15/26
..
United
States
7,000,000
6,537,860
h
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
11,000,000
9,593,760
18,429,157
Diversified
Telecommunication
Services
1.3%
h
Altice
France
Holding
SA
,
Senior
Note
,
144A,
6
%
,
2/15/28
......
Luxembourg
9,100,000
7,531,251
h
Altice
France
SA
,
Senior
Secured
Note,
144A,
5.5%,
1/15/28
................
France
2,500,000
2,206,150
Senior
Secured
Note,
144A,
5.5%,
10/15/29
...............
France
3,000,000
2,553,405
AT&T,
Inc.
,
Senior
Bond
,
3.65
%
,
9/15/59
....................
United
States
4,000,000
3,092,254
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond
,
4.5
%
,
5/01/32
......................................
United
States
13,000,000
10,960,625
h
Iliad
Holding
SASU
,
Senior
Secured
Note,
144A,
6.5%,
10/15/26
...............
France
2,800,000
2,694,552
Senior
Secured
Note,
144A,
7%,
10/15/28
.................
France
5,400,000
5,112,963
h
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
......................................
United
Kingdom
10,600,000
9,218,608
43,369,808
Electric
Utilities
1.8%
CGNPC
International
Ltd.
,
Senior
Bond
,
3.75
%
,
12/11/27
.......
China
3,289,000
3,209,213
Duke
Energy
Corp.
,
Senior
Bond,
2.45%,
6/01/30
...........................
United
States
3,800,000
3,320,099
Senior
Bond,
3.75%,
9/01/46
...........................
United
States
1,600,000
1,327,778
Exelon
Corp.
,
Senior
Bond,
4.05%,
4/15/30
...........................
United
States
13,400,000
13,137,996
Senior
Bond,
4.45%,
4/15/46
...........................
United
States
1,400,000
1,311,861
Southern
Co.
(The)
,
Senior
Bond
,
4.4
%
,
7/01/46
..............
United
States
5,000,000
4,563,797
h
State
Grid
Overseas
Investment
BVI
Ltd.
,
Senior
Bond
,
144A,
3.5
%
,
5/04/27
...........................................
China
15,800,000
15,571,275
Virginia
Electric
and
Power
Co.
,
Senior
Bond
,
6.35
%
,
11/30/37
...
United
States
820,000
976,815
h
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
4.375%,
5/01/29
.....................
United
States
11,000,000
9,996,140
Senior
Secured
Bond,
144A,
4.3%,
7/15/29
................
United
States
6,000,000
5,583,899
58,998,873
Electrical
Equipment
0.5%
h
Sensata
Technologies
BV
,
Senior
Note
,
144A,
4
%
,
4/15/29
......
United
States
9,600,000
8,569,920
h
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
8,500,000
7,416,378
15,986,298
Electronic
Equipment,
Instruments
&
Components
0.3%
CDW
LLC
/
CDW
Finance
Corp.
,
Senior
Note
,
3.25
%
,
2/15/29
....
United
States
5,000,000
4,406,850
Flex
Ltd.
,
Senior
Bond
,
4.875
%
,
5/12/30
....................
United
States
7,100,000
7,038,868
11,445,718
Energy
Equipment
&
Services
0.7%
h
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
6,000,000
5,871,870
h
Nabors
Industries,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
5/15/27
.....
United
States
3,400,000
3,473,117
h
Schlumberger
Holdings
Corp.
,
Senior
Note
,
144A,
3.9
%
,
5/17/28
..
United
States
3,800,000
3,690,008
h
Weatherford
International
Ltd.
,
Senior
Note,
144A,
11%,
12/01/24
.......................
United
States
554,000
571,415
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Energy
Equipment
&
Services
(continued)
h
Weatherford
International
Ltd.,
(continued)
Senior
Note,
144A,
8.625%,
4/30/30
.....................
United
States
11,700,000
$
11,597,976
25,204,386
Entertainment
0.5%
h
Live
Nation
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
3.75
%
,
1/15/28
...........................................
United
States
2,400,000
2,178,000
h
Magallanes,
Inc.
,
Senior
Note
,
144A,
4.054
%
,
3/15/29
..........
United
States
2,100,000
2,008,953
Netflix,
Inc.
,
Senior
Bond,
4.375%,
11/15/26
.........................
United
States
11,800,000
11,682,590
Senior
Bond,
6.375%,
5/15/29
..........................
United
States
2,000,000
2,122,720
17,992,263
Equity
Real
Estate
Investment
Trusts
(REITs)
1.1%
h
American
Finance
Trust,
Inc.
/
American
Finance
Operating
Partner
LP
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
.....................
United
States
5,300,000
4,522,119
h
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
7,700,000
6,924,491
h
MGM
Growth
Properties
Operating
Partnership
LP
/
MGP
Finance
Co-Issuer,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
2/15/29
..........
United
States
3,300,000
3,133,525
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
3.5
%
,
3/15/31
......................................
United
States
4,000,000
3,403,720
h
Park
Intermediate
Holdings
LLC
/
PK
Domestic
Property
LLC
/
PK
Finance
Co-Issuer
,
Senior
Secured
Note
,
144A,
5.875
%
,
10/01/28
United
States
4,700,000
4,565,345
Simon
Property
Group
LP
,
Senior
Bond
,
4.25
%
,
11/30/46
.......
United
States
3,000,000
2,809,498
h
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...........................................
United
States
7,500,000
6,924,075
h
XHR
LP
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/01/29
.........
United
States
3,500,000
3,228,067
35,510,840
Food
&
Staples
Retailing
0.1%
h
Cencosud
SA
,
Senior
Bond
,
144A,
4.375
%
,
7/17/27
...........
Chile
3,400,000
3,293,903
Food
Products
0.6%
h
Bimbo
Bakeries
USA,
Inc.
,
Senior
Bond
,
144A,
4
%
,
5/17/51
.....
Mexico
2,000,000
1,710,934
h
JBS
Finance
Luxembourg
SARL
,
Senior
Bond,
144A,
3.625%,
1/15/32
.....................
United
States
3,500,000
2,992,500
Senior
Note,
144A,
2.5%,
1/15/27
.......................
United
States
6,300,000
5,661,684
h
Lamb
Weston
Holdings,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
1/31/30
.
United
States
10,000,000
8,936,950
19,302,068
Gas
Utilities
0.1%
Piedmont
Natural
Gas
Co.,
Inc.
,
Senior
Bond
,
3.35
%
,
6/01/50
....
United
States
2,800,000
2,232,288
Health
Care
Equipment
&
Supplies
0.1%
h
Mozart
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
United
States
5,300,000
4,619,692
Health
Care
Providers
&
Services
1.6%
Anthem,
Inc.
,
Senior
Bond
,
3.7
%
,
9/15/49
...................
United
States
1,400,000
1,200,509
Centene
Corp.
,
Senior
Note,
4.25%,
12/15/27
..........................
United
States
3,000,000
2,913,480
Senior
Note,
2.45%,
7/15/28
...........................
United
States
2,300,000
2,009,522
Senior
Note,
4.625%,
12/15/29
.........................
United
States
2,300,000
2,231,000
Senior
Note,
3.375%,
2/15/30
..........................
United
States
1,400,000
1,252,797
Senior
Note,
2.625%,
8/01/31
..........................
United
States
5,300,000
4,410,819
h
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.875%,
4/15/29
....................
United
States
8,000,000
7,028,480
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Health
Care
Providers
&
Services
(continued)
h
CHS/Community
Health
Systems,
Inc.,
(continued)
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
3,700,000
$
3,531,234
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
2,300,000
2,176,593
CVS
Health
Corp.
,
Senior
Bond
,
1.75
%
,
8/21/30
..............
United
States
4,000,000
3,264,841
h
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
9,000,000
7,845,885
HCA,
Inc.
,
Senior
Bond
,
3.5
%
,
9/01/30
.....................
United
States
7,200,000
6,460,308
h
ModivCare
Escrow
Issuer,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
.
United
States
4,400,000
3,855,566
Orlando
Health
Obligated
Group
,
3.777
%
,
10/01/28
............
United
States
3,870,000
3,759,167
Quest
Diagnostics,
Inc.
,
Senior
Bond
,
2.8
%
,
6/30/31
...........
United
States
2,100,000
1,832,163
53,772,364
Hotels,
Restaurants
&
Leisure
1.7%
h
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
1/15/29
...............
United
States
5,000,000
4,545,125
Las
Vegas
Sands
Corp.
,
Senior
Bond
,
3.9
%
,
8/08/29
...........
United
States
8,300,000
7,149,536
h
Melco
Resorts
Finance
Ltd.
,
Senior
Note
,
144A,
5.75
%
,
7/21/28
..
Hong
Kong
5,900,000
4,987,211
h
Motion
Bondco
DAC
,
Senior
Note
,
144A,
6.625
%
,
11/15/27
......
United
Kingdom
2,000,000
1,844,390
h
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
...........
United
States
15,600,000
14,430,078
h
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/15/29
United
States
3,200,000
2,803,488
h
Premier
Entertainment
Sub
LLC
/
Premier
Entertainment
Finance
Corp.
,
Senior
Bond,
144A,
5.875%,
9/01/31
.....................
United
States
3,900,000
3,076,476
Senior
Note,
144A,
5.625%,
9/01/29
.....................
United
States
4,300,000
3,445,504
h
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
........
United
States
3,100,000
2,818,210
h
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
11,700,000
8,087,098
h
Wynn
Macau
Ltd.
,
Senior
Note
,
144A,
5.625
%
,
8/26/28
.........
Macau
6,200,000
4,952,157
58,139,273
Household
Durables
0.5%
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
................
United
States
4,900,000
4,038,525
Mohawk
Industries,
Inc.
,
Senior
Bond
,
3.625
%
,
5/15/30
.........
United
States
14,300,000
13,330,598
17,369,123
Household
Products
0.4%
h
Central
Garden
&
Pet
Co.
,
Senior
Bond
,
144A,
4.125
%
,
4/30/31
..
United
States
7,000,000
6,013,560
h
Kimberly-Clark
de
Mexico
SAB
de
CV
,
Senior
Bond
,
144A,
2.431
%
,
7/01/31
...........................................
Mexico
2,200,000
1,861,959
h
Spectrum
Brands,
Inc.
,
Senior
Bond
,
144A,
3.875
%
,
3/15/31
.....
United
States
4,800,000
4,026,768
11,902,287
Independent
Power
and
Renewable
Electricity
Producers
1.7%
h
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
4.125
%
,
6/15/28
...........................................
Spain
3,400,000
3,098,828
h
Calpine
Corp.
,
Senior
Bond,
144A,
5%,
2/01/31
........................
United
States
4,300,000
3,672,264
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
4,000,000
3,638,440
Senior
Note,
144A,
4.625%,
2/01/29
.....................
United
States
6,500,000
5,689,320
h
Clearway
Energy
Operating
LLC
,
Senior
Note
,
144A,
3.75
%
,
2/15/31
United
States
7,800,000
6,719,895
h
Colbun
SA
,
Senior
Bond,
144A,
3.95%,
10/11/27
.....................
Chile
7,500,000
7,284,525
Senior
Bond,
144A,
3.15%,
3/06/30
......................
Chile
2,900,000
2,523,870
h
InterGen
NV
,
Senior
Secured
Bond
,
144A,
7
%
,
6/30/23
.........
Netherlands
11,900,000
11,653,908
h
Talen
Energy
Supply
LLC
,
Senior
Note,
144A,
10.5%,
1/15/26
......................
United
States
3,000,000
1,114,320
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Independent
Power
and
Renewable
Electricity
Producers
(continued)
h
Talen
Energy
Supply
LLC,
(continued)
Senior
Secured
Note,
144A,
7.25%,
5/15/27
...............
United
States
10,800,000
$
10,355,904
55,751,274
Insurance
0.2%
Arch
Capital
Group
Ltd.
,
Senior
Bond
,
3.635
%
,
6/30/50
.........
United
States
10,000,000
8,394,966
Interactive
Media
&
Services
0.5%
h
Tencent
Holdings
Ltd.
,
Senior
Bond
,
144A,
2.39
%
,
6/03/30
......
China
17,100,000
14,500,591
h
ZipRecruiter,
Inc.
,
Senior
Note
,
144A,
5
%
,
1/15/30
.............
United
States
3,500,000
3,277,155
17,777,746
Internet
&
Direct
Marketing
Retail
0.6%
Alibaba
Group
Holding
Ltd.
,
Senior
Bond
,
4
%
,
12/06/37
.........
China
4,000,000
3,468,642
d
JD.com,
Inc.
,
Senior
Bond
,
3.375
%
,
1/14/30
.................
China
12,200,000
11,112,958
h
Match
Group
Holdings
II
LLC
,
Senior
Note
,
144A,
3.625
%
,
10/01/31
United
States
5,700,000
4,750,665
19,332,265
IT
Services
0.8%
h
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
9,200,000
8,103,590
h
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
7,000,000
6,718,603
Senior
Note,
144A,
3.625%,
6/15/29
.....................
United
States
2,200,000
1,971,959
h
Presidio
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
2/01/27
United
States
12,000,000
11,401,380
28,195,532
Machinery
0.2%
h
Manitowoc
Co.,
Inc.
(The)
,
Secured
Note
,
144A,
9
%
,
4/01/26
....
United
States
7,000,000
7,252,735
Marine
0.4%
ICTSI
Treasury
BV
,
Senior
Bond
,
4.625
%
,
1/16/23
.............
Philippines
12,000,000
12,160,620
Media
1.9%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
,
Senior
Secured
Bond
,
2.8
%
,
4/01/31
.......
United
States
15,900,000
13,217,717
h
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
5,200,000
4,907,708
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
3,500,000
3,307,430
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
3,200,000
3,011,280
h
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Senior
Secured
Note
,
144A,
5.375
%
,
8/15/26
....................
United
States
7,400,000
2,747,176
h
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
2,300,000
2,169,187
h
DISH
DBS
Corp.
,
Senior
Secured
Note
,
144A,
5.75
%
,
12/01/28
...
United
States
10,300,000
9,232,457
Fox
Corp.
,
Senior
Bond
,
3.5
%
,
4/08/30
.....................
United
States
1,400,000
1,299,772
h
Sinclair
Television
Group,
Inc.
,
Senior
Bond,
144A,
5.5%,
3/01/30
.......................
United
States
3,900,000
3,193,866
Senior
Secured
Note,
144A,
4.125%,
12/01/30
.............
United
States
7,600,000
6,313,130
h
Sirius
XM
Radio,
Inc.
,
Senior
Note
,
144A,
4
%
,
7/15/28
.........
United
States
6,000,000
5,430,750
h
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
5.125
%
,
2/15/25
.....................................
United
States
10,000,000
9,838,000
64,668,473
Metals
&
Mining
0.8%
h
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
9,200,000
7,968,718
h
CSN
Inova
Ventures
,
Senior
Note
,
144A,
6.75
%
,
1/28/28
........
Brazil
4,400,000
4,379,738
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Metals
&
Mining
(continued)
h
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...........................................
Australia
7,300,000
$
6,469,406
h
Novelis
Corp.
,
Senior
Note
,
144A,
3.25
%
,
11/15/26
............
United
States
1,700,000
1,553,196
h
SunCoke
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/30/29
United
States
6,100,000
5,476,763
25,847,821
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.0%
†
h
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
................................
United
States
1,400,000
1,219,806
Multiline
Retail
0.0%
b,f,h
K2016470219
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
3
%
,
12/31/22
.......................................
South
Africa
10,752,954
—
b,f,h
K2016470260
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
25
%
,
12/31/22
......................................
South
Africa
4,273,580
—
—
Multi-Utilities
0.2%
Dominion
Energy,
Inc.
,
C
,
Senior
Note
,
3.375
%
,
4/01/30
........
United
States
7,800,000
7,239,178
Oil,
Gas
&
Consumable
Fuels
5.2%
h
Antero
Resources
Corp.
,
Senior
Note,
144A,
8.375%,
7/15/26
.....................
United
States
1,106,000
1,193,181
Senior
Note,
144A,
7.625%,
2/01/29
.....................
United
States
2,170,000
2,301,502
Canadian
Natural
Resources
Ltd.
,
Senior
Bond
,
2.95
%
,
7/15/30
..
Canada
3,700,000
3,322,596
h
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note
,
144A,
6
%
,
2/01/29
....................
United
States
15,200,000
14,811,944
h
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
3,100,000
3,037,909
h
CVR
Energy,
Inc.
,
Senior
Note
,
144A,
5.25
%
,
2/15/25
..........
United
States
5,000,000
4,844,050
h
DT
Midstream,
Inc.
,
Senior
Bond
,
144A,
4.375
%
,
6/15/31
.......
United
States
4,600,000
4,127,649
h
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
1/30/28
.................................
United
States
8,700,000
8,732,016
Energy
Transfer
LP
,
Senior
Bond
,
3.75
%
,
5/15/30
.............
United
States
7,300,000
6,741,364
EnLink
Midstream
LLC
,
Senior
Bond,
5.375%,
6/01/29
..........................
United
States
10,900,000
10,624,230
h
Senior
Note,
144A,
5.625%,
1/15/28
.....................
United
States
1,700,000
1,686,450
h
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
........................
United
States
6,500,000
6,297,135
Senior
Bond,
144A,
6.25%,
4/15/32
......................
United
States
1,700,000
1,659,625
Senior
Note,
144A,
5.75%,
2/01/29
......................
United
States
2,000,000
1,962,540
h
Lundin
Energy
Finance
BV
,
Senior
Bond
,
144A,
3.1
%
,
7/15/31
...
Netherlands
8,700,000
7,594,006
h
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note,
144A,
10%,
2/29/24
......................
United
States
3,608,495
3,661,847
Secured
Note,
144A,
11.5%,
2/28/25
.....................
United
States
16,387,122
16,787,705
MPLX
LP
,
Senior
Note
,
2.65
%
,
8/15/30
.....................
United
States
15,000,000
12,908,715
Occidental
Petroleum
Corp.
,
Senior
Bond,
8.875%,
7/15/30
..........................
United
States
6,800,000
8,177,000
Senior
Bond,
6.125%,
1/01/31
..........................
United
States
5,900,000
6,209,190
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
5,000,000
5,432,950
Senior
Bond,
6.2%,
3/15/40
............................
United
States
7,800,000
8,086,416
h
Rattler
Midstream
LP
,
Senior
Note
,
144A,
5.625
%
,
7/15/25
......
United
States
8,200,000
8,221,279
Sabine
Pass
Liquefaction
LLC
,
Senior
Secured
Note
,
4.5
%
,
5/15/30
United
States
10,000,000
9,944,606
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note
,
4.5
%
,
5/15/29
..
United
States
12,000,000
10,806,780
h
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
..............
United
States
2,600,000
2,363,478
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
h
Venture
Global
Calcasieu
Pass
LLC,
(continued)
Senior
Secured
Note,
144A,
3.875%,
8/15/29
..............
United
States
2,600,000
$
2,375,893
173,912,056
Paper
&
Forest
Products
0.4%
h
Glatfelter
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
...........
United
States
4,300,000
3,445,418
Suzano
Austria
GmbH
,
Senior
Bond,
3.75%,
1/15/31
...........................
Brazil
7,100,000
6,161,522
DM3N,
Senior
Bond,
3.125%,
1/15/32
....................
Brazil
4,400,000
3,559,688
13,166,628
Personal
Products
0.3%
h
Oriflame
Investment
Holding
plc
,
Senior
Secured
Note
,
144A,
5.125
%
,
5/04/26
.....................................
Switzerland
9,600,000
7,027,200
h
Prestige
Brands,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
4/01/31
.......
United
States
1,900,000
1,613,546
8,640,746
Pharmaceuticals
1.4%
h
Bausch
Health
Cos.,
Inc.
,
Senior
Bond,
144A,
5.25%,
2/15/31
......................
United
States
4,000,000
2,785,100
Senior
Secured
Note,
144A,
6.125%,
2/01/27
..............
United
States
2,500,000
2,404,825
Senior
Secured
Note,
144A,
4.875%,
6/01/28
..............
United
States
6,300,000
5,597,298
h
Bayer
US
Finance
II
LLC
,
Senior
Bond
,
144A,
4.375
%
,
12/15/28
..
Germany
11,700,000
11,625,923
h
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco,
Inc.
,
Secured
Note
,
144A,
9.5
%
,
7/31/27
.................................
United
States
6,580,000
5,203,398
h
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Bond,
144A,
5.125%,
4/30/31
.....................
United
States
3,300,000
2,986,979
Senior
Secured
Note,
144A,
4.125%,
4/30/28
..............
United
States
5,000,000
4,657,000
Royalty
Pharma
plc
,
Senior
Bond
,
3.3
%
,
9/02/40
..............
United
States
5,300,000
4,142,998
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
5.125
%
,
5/09/29
.....................................
Israel
9,100,000
8,274,539
47,678,060
Real
Estate
Management
&
Development
0.9%
China
Overseas
Finance
Cayman
VI
Ltd.
,
Senior
Bond
,
5.95
%
,
5/08/24
...........................................
China
7,500,000
7,790,175
h
Country
Garden
Holdings
Co.
Ltd.
,
Senior
Secured
Note
,
Reg
S,
7.25
%
,
4/08/26
.....................................
China
9,900,000
7,350,750
h
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
5,000,000
4,967,900
h
Howard
Hughes
Corp.
(The)
,
Senior
Note
,
144A,
5.375
%
,
8/01/28
.
United
States
10,000,000
9,707,500
h
Vivion
Investments
SARL
,
Senior
Note
,
Reg
S,
3
%
,
8/08/24
.....
Luxembourg
1,800,000
EUR
1,747,146
31,563,471
Road
&
Rail
0.6%
CSX
Corp.
,
Senior
Bond
,
4.1
%
,
3/15/44
....................
United
States
1,600,000
1,461,450
h
First
Student
Bidco,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
..............................
United
States
6,500,000
5,825,755
h
Kazakhstan
Temir
Zholy
Finance
BV
,
Senior
Bond
,
144A,
6.95
%
,
7/10/42
...........................................
Kazakhstan
7,550,000
7,676,462
h
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
5,400,000
5,118,147
20,081,814
Software
0.6%
h
Condor
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
...
United
States
11,300,000
10,123,162
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Software
(continued)
h
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
10,000,000
$
8,575,000
18,698,162
Specialty
Retail
0.9%
AutoNation,
Inc.
,
Senior
Bond
,
4.75
%
,
6/01/30
...............
United
States
1,900,000
1,875,521
h
Lithia
Motors,
Inc.
,
Senior
Bond,
144A,
4.375%,
1/15/31
.....................
United
States
5,000,000
4,595,225
Senior
Note,
144A,
3.875%,
6/01/29
.....................
United
States
6,100,000
5,516,261
h
Michaels
Cos.,
Inc.
(The)
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
6,100,000
4,810,612
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
4,700,000
4,047,593
h
Park
River
Holdings,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
8/01/29
....
United
States
11,400,000
9,142,938
h,i
Party
City
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
FRN
,
5.75
%
,
(
6-month
USD
LIBOR
+
5
%
),
7/15/25
.....................
United
States
1,153,545
1,007,126
30,995,276
Technology
Hardware,
Storage
&
Peripherals
0.1%
Teledyne
FLIR
LLC
,
Senior
Note
,
2.5
%
,
8/01/30
..............
United
States
2,100,000
1,811,013
Textiles,
Apparel
&
Luxury
Goods
0.1%
h
Kontoor
Brands,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
11/15/29
......
United
States
2,200,000
1,912,284
Thrifts
&
Mortgage
Finance
0.1%
h
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
2,700,000
2,426,895
Tobacco
0.4%
Altria
Group,
Inc.
,
Senior
Bond
,
3.4
%
,
5/06/30
................
United
States
12,400,000
11,133,336
h
Imperial
Brands
Finance
plc
,
Senior
Bond
,
144A,
3.875
%
,
7/26/29
.
United
Kingdom
2,200,000
2,057,188
13,190,524
Trading
Companies
&
Distributors
0.7%
h
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
13,600,000
11,862,328
h
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
7/15/27
..........
United
States
5,300,000
5,198,797
h
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
6/15/28
....
United
States
5,500,000
5,684,250
22,745,375
Wireless
Telecommunication
Services
0.7%
h
America
Movil
SAB
de
CV
,
Senior
Bond
,
144A,
5.375
%
,
4/04/32
..
Mexico
7,100,000
6,476,620
f,h
Digicel
Group
Holdings
Ltd.
,
Senior
Note
,
144A,
PIK,
8
%
,
4/01/25
.
Bermuda
144,192
120,109
T-Mobile
USA,
Inc.
,
Senior
Secured
Bond,
3.3%,
2/15/51
.....................
United
States
4,800,000
3,598,810
Senior
Secured
Note,
3.875%,
4/15/30
...................
United
States
13,400,000
12,706,487
22,902,026
Total
Corporate
Bonds
(Cost
$1,693,203,116)
...................................
1,509,088,419
j
Senior
Floating
Rate
Interests
1.1%
Aerospace
&
Defense
0.1%
k
Dynasty
Acquisition
Co.,
Inc.
,
2020
Term
Loan,
B1,
4.506%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
...........................................
United
States
2,802,206
2,752,145
2020
Term
Loan,
B2,
4.506%,
(3-month
USD
LIBOR
+
3.5%),
4/06/26
...........................................
United
States
1,506,563
1,479,648
4,231,793
a
a
a
a
a
a
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
j
Senior
Floating
Rate
Interests
(continued)
Airlines
0.2%
k
Air
Canada
,
Term
Loan
,
4.25
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
8/11/28
...........................................
Canada
5,451,436
$
5,409,188
Diversified
Consumer
Services
0.2%
k
KUEHG
Corp.
,
Term
Loan,
B3
,
4.756
%
,
(
3-month
USD
LIBOR
+
3.75
%
),
2/21/25
.....................................
United
States
7,045,171
6,987,506
k
Leisure
Products
0.2%
Hercules
Achievement,
Inc.
(Varsity
Brands
Holding
Co.,
Inc.)
,
First
Lien,
Initial
Term
Loan
,
4.5
%
,
(
1-month
USD
LIBOR
+
3.5
%
),
12/16/24
..........................................
United
States
4,119,598
3,977,143
Motion
Acquisition
Ltd.
,
Term
Loan,
B1,
4.256%,
(3-month
USD
LIBOR
+
3.25%),
11/12/26
United
Kingdom
3,387,845
3,325,390
Term
Loan,
B2,
4.256%,
(3-month
USD
LIBOR
+
3.25%),
11/12/26
United
Kingdom
482,978
474,074
7,776,607
a
a
a
a
a
a
k
Media
0.3%
Cengage
Learning,
Inc.
,
First
Lien,
Term
Loan,
B
,
5.75
%
,
(
3-month
USD
LIBOR
+
4.75
%
),
7/14/26
..........................
United
States
7,054,363
6,945,902
Clear
Channel
Outdoor
Holdings,
Inc.
,
Term
Loan,
B
,
4.738
%
,
(
1-month
USD
LIBOR
+
3.5%;
3-month
USD
LIBOR
+
3.5%
),
8/21/26
...........................................
United
States
606,647
593,094
Diamond
Sports
Group
LLC
,
First
Lien,
CME
Term
Loan,
9%,
(1-month
SOFR
+
8%),
5/25/26
United
States
1,940,638
1,979,141
Second
Lien,
CME
Term
Loan,
3.656%,
(1-month
SOFR
+
3.25%),
8/24/26
...........................................
United
States
2,925,169
992,729
10,510,866
a
a
a
a
a
a
Personal
Products
0.1%
k
Coty,
Inc.
,
USD
Term
Loan,
B
,
2.701
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
4/07/25
.....................................
United
States
1,577,408
1,539,242
Software
0.0%
b,c,k,l
WorkCapital
BSD
SARL
,
Term
Loan
,
6.5
%
,
(
1-month
USD
LIBOR
),
11/02/22
..........................................
Luxembourg
20,000,000
—
Total
Senior
Floating
Rate
Interests
(Cost
$57,542,092)
..........................
36,455,202
b,m
Marketplace
Loans
2.5%
Diversified
Financial
Services
2.5%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$86,201,988)
....................................
83,510,806
Foreign
Government
and
Agency
Securities
8.1%
h
African
Export-Import
Bank
(The)
,
Senior
Bond
,
144A,
3.994
%
,
9/21/29
...........................................
Supranational
n
13,600,000
12,846,424
Banque
Centrale
de
Tunisie
,
Senior
Note
,
5.625
%
,
2/17/24
......
Tunisia
3,700,000
EUR
2,717,905
h
Banque
Ouest
Africaine
de
Developpement
,
Senior
Bond
,
144A,
5
%
,
7/27/27
...........................................
Supranational
n
11,500,000
11,450,378
Brazil
Notas
do
Tesouro
Nacional
,
o
Index
Linked,
6%,
5/15/23
.............................
Brazil
37,320,209
BRL
7,641,031
Senior
Bond,
3.875%,
6/12/30
..........................
Brazil
9,300,000
8,213,388
Colombia
Government
Bond
,
Senior
Bond,
3.875%,
4/25/27
..........................
Colombia
14,000,000
12,742,100
Senior
Bond,
9.85%,
6/28/27
...........................
Colombia
55,750,000,000
COP
14,272,732
Senior
Bond,
5%,
6/15/45
.............................
Colombia
20,700,000
15,447,375
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
h
Comision
Federal
de
Electricidad
,
Senior
Bond
,
144A,
3.348
%
,
2/09/31
...........................................
Mexico
9,500,000
$
7,668,162
h
Dominican
Republic
Government
Bond
,
Senior
Bond,
144A,
6.85%,
1/27/45
......................
Dominican
Republic
6,800,000
6,142,400
Senior
Note,
144A,
8.9%,
2/15/23
.......................
Dominican
Republic
838,300,000
DOP
15,290,945
Ecopetrol
SA
,
Senior
Bond,
4.125%,
1/16/25
..........................
Colombia
3,800,000
3,681,402
Senior
Bond,
4.625%,
11/02/31
.........................
Colombia
4,400,000
3,684,428
g,h
Electricite
de
France
SA
,
Junior
Sub.
Bond,
144A,
5.25%
to
1/28/23,
FRN
thereafter,
Perpetual
..........................................
France
25,000,000
24,781,250
Junior
Sub.
Bond,
144A,
5.625%
to
1/21/24,
FRN
thereafter,
Perpetual
..........................................
France
5,000,000
4,894,100
h
Export-Import
Bank
of
India
,
Senior
Bond
,
144A,
3.875
%
,
2/01/28
.
India
16,000,000
15,439,263
h
Gabon
Government
Bond
,
Senior
Bond
,
144A,
6.625
%
,
2/06/31
..
Gabon
3,900,000
3,535,701
h
Indonesia
Asahan
Aluminium
Persero
PT
,
Senior
Bond
,
144A,
5.45
%
,
5/15/30
.....................................
Indonesia
13,800,000
13,861,617
Indonesia
Government
Bond
,
h
Senior
Bond,
144A,
4.35%,
1/08/27
......................
Indonesia
8,100,000
8,311,748
h
Senior
Bond,
144A,
3.85%,
7/18/27
......................
Indonesia
12,000,000
12,106,860
h
Senior
Bond,
144A,
4.625%,
4/15/43
.....................
Indonesia
3,000,000
2,855,100
FR39,
11.75%,
8/15/23
...............................
Indonesia
29,150,000,000
IDR
2,205,606
h
Iraq
Government
Bond
,
Senior
Bond
,
144A,
5.8
%
,
1/15/28
......
Iraq
9,150,000
8,865,527
h
Israel
Electric
Corp.
Ltd.
,
Senior
Secured
Bond
,
144A,
Reg
S,
4.25
%
,
8/14/28
...........................................
Israel
9,200,000
9,177,000
Mexico
Government
Bond
,
Senior
Bond
,
3.75
%
,
1/11/28
........
Mexico
4,000,000
3,858,140
Peru
Government
Bond
,
Senior
Bond
,
6.55
%
,
3/14/37
..........
Peru
8,600,000
9,911,973
Petroleos
Mexicanos
,
Senior
Bond
,
6.625
%
,
6/15/35
...........
Mexico
6,500,000
5,282,940
h
Romania
Government
Bond
,
Senior
Bond
,
144A,
6.125
%
,
1/22/44
.
Romania
4,700,000
4,861,342
Turkey
Government
Bond
,
Senior
Bond,
4.875%,
10/09/26
.........................
Turkey
8,000,000
7,082,968
Senior
Bond,
5.95%,
1/15/31
...........................
Turkey
15,500,000
13,030,850
Total
Foreign
Government
and
Agency
Securities
(Cost
$312,205,061)
............
271,860,655
U.S.
Government
and
Agency
Securities
9.4%
U.S.
Treasury
Bonds
,
7.125%,
2/15/23
.....................................
United
States
3,000,000
3,122,817
6.25%,
8/15/23
.....................................
United
States
4,000,000
4,197,031
6.875%,
8/15/25
.....................................
United
States
1,000,000
1,124,649
3%,
11/15/44
.......................................
United
States
19,000,000
18,375,078
3%,
2/15/47
........................................
United
States
17,600,000
17,159,656
3%,
2/15/48
........................................
United
States
17,400,000
17,105,695
U.S.
Treasury
Notes
,
1.5%,
9/15/22
......................................
United
States
34,600,000
34,624,966
1.625%,
11/15/22
....................................
United
States
29,800,000
29,810,105
1.75%,
1/31/23
.....................................
United
States
37,400,000
37,378,010
2.75%,
2/15/24
.....................................
United
States
36,300,000
36,363,808
o
0.625%,
1/15/26
.....................................
United
States
27,000,000
33,891,881
1.125%,
2/28/27
.....................................
United
States
40,000,000
36,742,188
2.375%,
5/15/27
.....................................
United
States
48,200,000
46,921,570
Total
U.S.
Government
and
Agency
Securities
(Cost
$331,077,692)
................
316,817,454
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Asset-Backed
Securities
7.5%
Airlines
0.0%
†
United
Airlines
Pass-Through
Trust
,
2020-1
,
B
,
4.875
%
,
7/15/27
.
..
United
States
996,000
$
964,006
Consumer
Finance
0.6%
k
Citibank
Credit
Card
Issuance
Trust
,
2017-A7
,
A7
,
FRN
,
0.821
%
,
(
1-month
USD
LIBOR
+
0.37
%
),
8/08/24
.
..................
United
States
20,069,000
20,084,766
Diversified
Financial
Services
6.9%
h,k
AMMC
CLO
XI
Ltd.
,
2012-11A
,
CR2
,
144A,
FRN
,
2.199
%
,
(
3-month
USD
LIBOR
+
1.9
%
),
4/30/31
.
..........................
United
States
1,000,000
984,263
h,k
Antares
CLO
Ltd.
,
2018-1A
,
B
,
144A,
FRN
,
2.713
%
,
(
3-month
USD
LIBOR
+
1.65
%
),
4/20/31
.
.............................
United
States
17,500,000
17,277,977
h,k
BCC
Middle
Market
CLO
LLC
,
2018-1A
,
A2
,
144A,
FRN
,
3.213
%
,
(
3-month
USD
LIBOR
+
2.15
%
),
10/20/30
.
.................
United
States
6,300,000
6,226,428
h,k
BlueMountain
CLO
Ltd.
,
2014-2A,
CR2,
144A,
FRN,
3.263%,
(3-month
USD
LIBOR
+
2.2%),
10/20/30
.....................................
United
States
3,800,000
3,775,099
2016-3A,
CR,
144A,
FRN,
2.706%,
(3-month
USD
LIBOR
+
2.2%),
11/15/30
..........................................
United
States
300,000
294,476
2018-1A,
D,
144A,
FRN,
3.349%,
(3-month
USD
LIBOR
+
3.05%),
7/30/30
...........................................
United
States
5,000,000
4,753,902
h,k
BlueMountain
Fuji
EUR
CLO
V
DAC
,
5A
,
B
,
144A,
FRN
,
1.55
%
,
(
3-month
EURIBOR
+
1.55
%
),
1/15/33
.
...................
Ireland
6,200,000
EUR
6,470,692
h,k
BlueMountain
Fuji
US
CLO
III
Ltd.
,
2017-3A
,
C
,
144A,
FRN
,
2.744
%
,
(
3-month
USD
LIBOR
+
1.7
%
),
1/15/30
.
...................
United
States
1,250,000
1,228,794
h,k
Burnham
Park
CLO
Ltd.
,
2016-1A
,
BR
,
144A,
FRN
,
2.563
%
,
(
3-month
USD
LIBOR
+
1.5
%
),
10/20/29
.
..................
United
States
3,500,000
3,469,137
h,k
Buttermilk
Park
CLO
Ltd.
,
2018-1A
,
C
,
144A,
FRN
,
3.144
%
,
(
3-month
USD
LIBOR
+
2.1
%
),
10/15/31
.
..................
United
States
9,730,950
9,605,937
h,k
Carlyle
Global
Market
Strategies
CLO
Ltd.
,
2013-3A,
BR,
144A,
FRN,
2.744%,
(3-month
USD
LIBOR
+
1.7%),
10/15/30
..........................................
United
States
300,000
293,916
2014-2RA,
B,
144A,
FRN,
2.331%,
(3-month
USD
LIBOR
+
1.825%),
5/15/31
....................................
United
States
580,000
569,869
2014-4RA,
C,
144A,
FRN,
3.944%,
(3-month
USD
LIBOR
+
2.9%),
7/15/30
...........................................
United
States
3,000,000
2,827,684
h,k
Carlyle
GMS
Finance
MM
CLO
LLC
,
2015-1A
,
A2R
,
144A,
FRN
,
3.244
%
,
(
3-month
USD
LIBOR
+
2.2
%
),
10/15/31
.
...........
United
States
12,000,000
11,824,999
h,p
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2018-29,
PT,
144A,
FRN,
26.576%,
12/15/43
...............
United
States
389,288
379,046
2019-26,
PT,
144A,
FRN,
18.781%,
8/15/44
................
United
States
1,479,853
1,440,963
2019-31,
PT,
144A,
FRN,
19.208%,
9/15/44
................
United
States
1,312,197
1,265,917
2019-37,
PT,
144A,
FRN,
19.88%,
10/17/44
................
United
States
1,456,949
1,402,687
2019-42,
PT,
144A,
FRN,
18.836%,
11/15/44
...............
United
States
1,589,169
1,543,989
2019-51,
PT,
144A,
FRN,
16.013%,
1/15/45
................
United
States
1,731,277
1,688,222
2019-52,
PT,
144A,
FRN,
16.268%,
1/15/45
................
United
States
1,777,628
1,745,097
2019-S1,
PT,
144A,
FRN,
14.61%,
4/15/44
.................
United
States
641,653
617,086
2019-S2,
PT,
144A,
FRN,
13.653%,
5/16/44
................
United
States
484,695
464,089
2019-S3,
PT,
144A,
FRN,
12.981%,
6/15/44
................
United
States
832,916
804,355
2019-S4,
PT,
144A,
FRN,
12.603%,
8/15/44
................
United
States
1,034,004
1,007,489
2019-S5,
PT,
144A,
FRN,
13.393%,
9/15/44
................
United
States
1,055,369
1,027,634
2019-S6,
PT,
144A,
FRN,
11.814%,
10/17/44
...............
United
States
1,030,561
990,497
2019-S7,
PT,
144A,
FRN,
11.04%,
12/15/44
................
United
States
885,210
855,979
2019-S8,
PT,
144A,
FRN,
10.075%,
1/15/45
................
United
States
1,204,542
1,161,941
2020-2,
PT,
144A,
FRN,
16.26%,
3/15/45
..................
United
States
1,687,984
1,647,000
2020-7,
PT,
144A,
FRN,
16.119%,
4/17/45
.................
United
States
1,024,929
987,981
h,k
Dryden
55
CLO
Ltd.
,
2018-55A
,
D
,
144A,
FRN
,
3.894
%
,
(
3-month
USD
LIBOR
+
2.85
%
),
4/15/31
.
.........................
United
States
3,000,000
2,946,047
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Asset-Backed
Securities
(continued)
Diversified
Financial
Services
(continued)
h,k
Dryden
75
CLO
Ltd.
,
2019-75A
,
AR2
,
144A,
FRN
,
2.084
%
,
(
3-month
USD
LIBOR
+
1.04
%
),
4/15/34
.
.........................
United
States
30,321,000
$
30,018,990
h,k
Galaxy
XVIII
CLO
Ltd.
,
2018-28A
,
C
,
144A,
FRN
,
2.994
%
,
(
3-month
USD
LIBOR
+
1.95
%
),
7/15/31
.
.........................
United
States
3,070,000
3,013,975
h,k
Galaxy
XXVII
CLO
Ltd.
,
2018-27A
,
C
,
144A,
FRN
,
2.259
%
,
(
3-month
USD
LIBOR
+
1.8
%
),
5/16/31
.
..........................
United
States
3,600,000
3,572,854
h
Home
Partners
of
America
Trust
,
2021-2,
B,
144A,
2.302%,
12/17/26
......................
United
States
12,231,609
11,180,237
2021-3,
B,
144A,
2.649%,
1/17/41
.......................
United
States
4,681,322
4,253,012
h,k
HPS
Loan
Management
Ltd.
,
13A-18
,
C
,
144A,
FRN
,
3.194
%
,
(
3-month
USD
LIBOR
+
2.15
%
),
10/15/30
.
.................
United
States
4,950,000
4,892,532
h,k
LCM
XVII
LP
,
17A,
BRR,
144A,
FRN,
2.644%,
(3-month
USD
LIBOR
+
1.6%),
10/15/31
..........................................
United
States
4,590,000
4,531,625
17A,
CRR,
144A,
FRN,
3.144%,
(3-month
USD
LIBOR
+
2.1%),
10/15/31
..........................................
United
States
4,240,000
4,165,393
h,k
LCM
XVIII
LP
,
18A
,
DR
,
144A,
FRN
,
3.863
%
,
(
3-month
USD
LIBOR
+
2.8
%
),
4/20/31
.
....................................
United
States
6,860,000
6,522,331
h,k
Madison
Park
Euro
Funding
VIII
DAC
,
8A
,
BRN
,
144A,
FRN
,
1.7
%
,
(
3-month
EURIBOR
+
1.7
%
),
4/15/32
.
....................
Ireland
4,100,000
EUR
4,301,304
h,k
Neuberger
Berman
CLO
XXII
Ltd.
,
2016-22A
,
CR
,
144A,
FRN
,
3.244
%
,
(
3-month
USD
LIBOR
+
2.2
%
),
10/17/30
.
...........
United
States
2,129,630
2,105,768
h,k
Northwoods
Capital
Ltd.
,
2018-11BA
,
A1
,
144A,
FRN
,
2.144
%
,
(
3-month
USD
LIBOR
+
1.1
%
),
4/19/31
.
...................
United
States
7,565,193
7,527,328
h,k
Octagon
Investment
Partners
28
Ltd.
,
2016-1A
,
BR
,
144A,
FRN
,
2.984
%
,
(
3-month
USD
LIBOR
+
1.8
%
),
10/24/30
.
...........
United
States
3,914,730
3,901,926
h,k
Octagon
Investment
Partners
36
Ltd.
,
2018-1A
,
A1
,
144A,
FRN
,
2.014
%
,
(
3-month
USD
LIBOR
+
0.97
%
),
4/15/31
.
...........
United
States
7,475,000
7,414,178
h,k
Octagon
Investment
Partners
37
Ltd.
,
2018-2A
,
C
,
144A,
FRN
,
4.034
%
,
(
3-month
USD
LIBOR
+
2.85
%
),
7/25/30
.
...........
United
States
4,000,000
3,882,364
h,k
Octagon
Investment
Partners
38
Ltd.
,
2018-1A
,
C
,
144A,
FRN
,
4.013
%
,
(
3-month
USD
LIBOR
+
2.95
%
),
7/20/30
.
...........
United
States
5,000,000
4,691,452
h,p
Prosper
Pass-Thru
Trust
III
,
2020-PT1,
A,
144A,
FRN,
8.796%,
3/15/26
.................
United
States
1,039,163
1,051,352
2020-PT2,
A,
144A,
FRN,
9.444%,
4/15/26
.................
United
States
1,207,095
1,181,621
2020-PT3,
A,
144A,
FRN,
7.183%,
5/15/26
.................
United
States
316,044
310,266
h,k
Strata
CLO
I
Ltd.
,
2018-1A
,
B
,
144A,
FRN
,
3.244
%
,
(
3-month
USD
LIBOR
+
2.2
%
),
1/15/31
.
..............................
United
States
14,100,000
14,070,540
h,p
Upgrade
Master
Pass-Thru
Trust
,
2019-PT1,
A,
144A,
FRN,
12.735%,
6/15/25
................
United
States
388,169
356,658
2019-PT2,
A,
144A,
FRN,
15.288%,
2/15/26
................
United
States
922,273
933,070
h,k
Voya
CLO
Ltd.
,
2013-2A,
A2AR,
144A,
FRN,
2.584%,
(3-month
USD
LIBOR
+
1.4%),
4/25/31
......................................
United
States
2,200,000
2,165,470
2013-2A,
BR,
144A,
FRN,
3.034%,
(3-month
USD
LIBOR
+
1.85%),
4/25/31
.....................................
United
States
5,770,000
5,574,653
2014-1A,
CR2,
144A,
FRN,
3.844%,
(3-month
USD
LIBOR
+
2.8%),
4/18/31
......................................
United
States
8,000,000
7,433,651
2016-1A,
BR,
144A,
FRN,
2.863%,
(3-month
USD
LIBOR
+
1.8%),
1/20/31
...........................................
United
States
590,000
575,324
231,207,066
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$257,408,569)
..............................
252,255,838
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Commercial
Mortgage-Backed
Securities
0.5%
Diversified
Financial
Services
0.5%
h,k
BX
Commercial
Mortgage
Trust
,
2021-VOLT,
A,
144A,
FRN,
1.254%,
(1-month
USD
LIBOR
+
0.7%),
9/15/36
......................................
United
States
2,480,000
$
2,430,436
2021-VOLT,
B,
144A,
FRN,
1.504%,
(1-month
USD
LIBOR
+
0.95%),
9/15/36
.....................................
United
States
3,890,000
3,795,309
2022-LP2,
A,
144A,
FRN,
1.535%,
(1-month
SOFR
+
1.013%),
2/15/39
...........................................
United
States
9,375,325
9,188,432
p
Commercial
Mortgage
Trust
,
2006-GG7
,
AJ
,
FRN
,
6.214
%
,
7/10/38
United
States
2,336,688
1,900,487
17,314,664
a
a
a
a
a
a
Total
Commercial
Mortgage-Backed
Securities
(Cost
$17,956,804)
................
17,314,664
Mortgage-Backed
Securities
2.2%
q
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Adjustable
Rate
0.0%
†
FHLMC,
2.348%,
(1-year
CMT
T-Note
+/-
MBS
Margin),
1/01/33
..
United
States
9,484
9,450
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
0.0%
†
FHLMC
Gold
Pools,
15
Year,
5%,
7/01/22
...................
United
States
350
357
FHLMC
Gold
Pools,
20
Year,
5%,
5/01/27
-
5/01/30
............
United
States
156,169
162,464
FHLMC
Gold
Pools,
30
Year,
4.5%,
10/01/40
.................
United
States
58,139
60,732
FHLMC
Gold
Pools,
30
Year,
5%,
3/01/34
-
2/01/38
............
United
States
299,373
314,845
FHLMC
Gold
Pools,
30
Year,
5.5%,
6/01/33
-
6/01/36
..........
United
States
461,276
487,960
FHLMC
Gold
Pools,
30
Year,
6%,
6/01/33
-
6/01/37
............
United
States
172,737
184,710
FHLMC
Gold
Pools,
30
Year,
6.5%,
12/01/25
-
6/01/36
.........
United
States
45,959
49,299
FHLMC
Gold
Pools,
30
Year,
7%,
5/01/28
-
8/01/32
............
United
States
8,516
8,728
FHLMC
Gold
Pools,
30
Year,
7.5%,
1/01/26
-
1/01/31
..........
United
States
2,486
2,718
FHLMC
Gold
Pools,
30
Year,
8%,
11/01/25
-
1/01/26
...........
United
States
40
41
FHLMC
Gold
Pools,
30
Year,
9%,
12/01/24
..................
United
States
22
23
1,271,877
q
Federal
National
Mortgage
Association
(FNMA)
Adjustable
Rate
0.0%
†
FNMA,
2.279%,
(1-year
CMT
T-Note
+/-
MBS
Margin),
12/01/34
..
United
States
50,527
50,933
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
2.2%
FNMA,
15
Year,
2.5%,
7/01/27
...........................
United
States
95,769
93,972
FNMA,
20
Year,
4.5%,
3/01/28
...........................
United
States
28,776
29,316
FNMA,
20
Year,
5%,
9/01/23
-
6/01/31
......................
United
States
192,366
199,709
FNMA,
30
Year,
3%,
9/01/48
-
9/01/51
......................
United
States
19,492,883
18,523,757
FNMA,
30
Year,
4.5%,
2/01/41
...........................
United
States
143,440
149,699
FNMA,
30
Year,
5%,
10/01/35
............................
United
States
359,774
380,805
FNMA,
30
Year,
5.5%,
9/01/33
-
12/01/35
...................
United
States
559,689
591,697
FNMA,
30
Year,
6%,
6/01/34
-
5/01/38
......................
United
States
990,126
1,063,848
FNMA,
30
Year,
6.5%,
3/01/28
-
10/01/37
...................
United
States
168,406
182,386
FNMA,
30
Year,
7.5%,
10/01/29
...........................
United
States
3,011
3,304
FNMA,
30
Year,
8%,
1/01/25
-
5/01/26
......................
United
States
1,018
1,069
r
FNMA,
Single-family,
30
Year,
4%,
5/25/52
..................
United
States
51,317,000
51,040,369
72,259,931
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
0.0%
†
GNMA
I,
30
Year,
8%,
2/15/25
............................
United
States
12
12
GNMA
I,
Single-family,
30
Year,
5%,
6/15/34
-
7/15/34
..........
United
States
59,159
62,446
GNMA
I,
Single-family,
30
Year,
5.5%,
2/15/33
-
6/15/36
........
United
States
206,633
220,357
GNMA
I,
Single-family,
30
Year,
6%,
8/15/36
.................
United
States
11,008
11,985
GNMA
I,
Single-family,
30
Year,
6.5%,
2/15/29
-
3/15/32
........
United
States
3,698
3,909
GNMA
I,
Single-family,
30
Year,
7%,
11/15/27
-
5/15/28
.........
United
States
4,054
4,069
GNMA
I,
Single-family,
30
Year,
7.5%,
9/15/23
-
5/15/27
........
United
States
340
343
GNMA
I,
Single-family,
30
Year,
8%,
7/15/26
-
9/15/27
..........
United
States
1,979
2,019
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
(continued)
GNMA
I,
Single-family,
30
Year,
8.5%,
8/15/24
................
United
States
23
$
23
GNMA
I,
Single-family,
30
Year,
9%,
1/15/25
.................
United
States
66
66
GNMA
I,
Single-family,
30
Year,
9.5%,
6/15/25
................
United
States
220
221
GNMA
II,
Single-family,
30
Year,
5%,
9/20/33
-
11/20/33
.........
United
States
98,944
106,058
GNMA
II,
Single-family,
30
Year,
5.5%,
6/20/34
...............
United
States
51,580
56,255
GNMA
II,
Single-family,
30
Year,
6%,
11/20/34
................
United
States
54,288
59,128
GNMA
II,
Single-family,
30
Year,
6.5%,
7/20/28
-
12/20/31
.......
United
States
32,132
34,375
GNMA
II,
Single-family,
30
Year,
7.5%,
4/20/32
...............
United
States
8,887
9,425
570,691
Total
Mortgage-Backed
Securities
(Cost
$75,610,668)
............................
74,162,882
Municipal
Bonds
0.8%
California
0.1%
San
Bernardino
Community
College
District
,
GO
,
2019
A-1
,
3.271
%
,
8/01/39
...........................................
United
States
2,160,000
1,907,371
Illinois
0.2%
State
of
Illinois
,
GO
,
2003
,
5.1
%
,
6/01/33
...................
United
States
6,960,000
7,126,450
New
Jersey
0.1%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2019
B
,
Refunding
,
4.131
%
,
6/15/42
............................
United
States
3,535,000
3,153,949
New
York
0.2%
Metropolitan
Transportation
Authority
,
Revenue
,
2020
E
,
Refunding
,
4
%
,
11/15/45
.......................................
United
States
5,340,000
5,155,586
New
York
State
Dormitory
Authority
,
State
University
of
New
York
Dormitory
Facilities
,
Revenue
,
2019
B
,
Refunding
,
3.142
%
,
7/01/43
...........................................
United
States
3,145,000
2,660,499
7,816,085
Ohio
0.0%
†
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group
,
Revenue
,
2019
G
,
Refunding
,
3.276
%
,
1/01/42
.............
United
States
1,975,000
1,700,481
Pennsylvania
0.1%
University
of
Pittsburgh-of
the
Commonwealth
System
of
Higher
Education
,
Revenue
,
2017
C
,
Refunding
,
3.005
%
,
9/15/41
.....
United
States
5,500,000
4,680,396
Texas
0.1%
Texas
State
University
System
,
Revenue
,
2019
B
,
Refunding
,
3.289
%
,
3/15/40
.....................................
United
States
1,965,000
1,736,063
Total
Municipal
Bonds
(Cost
$30,513,435)
......................................
28,120,795
Residential
Mortgage-Backed
Securities
7.0%
Diversified
Financial
Services
2.1%
h
BRAVO
Residential
Funding
Trust
,
2019-1,
A1C,
144A,
3.5%,
3/25/58
.......................
United
States
2,199,647
2,194,417
p
2019-2,
A3,
144A,
FRN,
3.5%,
10/25/44
...................
United
States
4,684,291
4,564,877
h,p
CIM
Trust
,
2019-INV1,
A1,
144A,
FRN,
4%,
2/25/49
..................
United
States
1,196,457
1,192,894
2019-INV2,
A3,
144A,
FRN,
4%,
5/25/49
..................
United
States
2,193,650
2,171,005
h,p
COLT
Mortgage
Loan
Trust
,
2022-4
,
A1
,
144A,
FRN
,
4.301
%
,
3/25/67
...........................................
United
States
4,130,000
4,129,958
h,p
J.P.
Morgan
Mortgage
Trust
,
2021-13,
A4,
144A,
FRN,
2.5%,
4/25/52
...................
United
States
14,259,090
13,193,950
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Residential
Mortgage-Backed
Securities
(continued)
Diversified
Financial
Services
(continued)
h,p
J.P.
Morgan
Mortgage
Trust,
(continued)
2021-15,
A4,
144A,
FRN,
2.5%,
6/25/52
...................
United
States
4,518,251
$
4,214,498
h,p
Mill
City
Mortgage
Loan
Trust
,
2018-4
,
A1B
,
144A,
FRN
,
3.5
%
,
4/25/66
...........................................
United
States
9,022,612
8,894,729
h,p
OBX
Trust
,
2021-J3
,
A4
,
144A,
FRN
,
2.5
%
,
10/25/51
...........
United
States
2,958,852
2,760,855
h,p
Provident
Funding
Associates
LLP
,
2021-J1
,
A3
,
144A,
FRN
,
2.5
%
,
2/20/49
...........................................
United
States
9,188,615
8,570,144
h,p
Provident
Funding
Mortgage
Trust
,
2019-1
,
A2
,
144A,
FRN
,
3
%
,
12/25/49
..........................................
United
States
1,809,621
1,730,152
h,p
PSMC
Trust
,
2021-3
,
A3
,
144A,
FRN
,
2.5
%
,
8/25/51
...........
United
States
17,253,088
16,039,918
69,657,397
a
a
a
a
a
a
Thrifts
&
Mortgage
Finance
4.9%
k
FHLMC
Structured
Agency
Credit
Risk
Debt
Notes
,
2013-DN2,
M2,
FRN,
4.918%,
(1-month
USD
LIBOR
+
4.25%),
11/25/23
..........................................
United
States
5,738,027
5,856,001
2014-DN2,
M3,
FRN,
4.268%,
(1-month
USD
LIBOR
+
3.6%),
4/25/24
...........................................
United
States
10,445,020
10,665,879
2014-DN3,
M3,
FRN,
4.668%,
(1-month
USD
LIBOR
+
4%),
8/25/24
...........................................
United
States
257,023
259,772
2014-DN4,
M3,
FRN,
5.218%,
(1-month
USD
LIBOR
+
4.55%),
10/25/24
..........................................
United
States
2,783,058
2,830,202
2014-HQ1,
M3,
FRN,
4.768%,
(1-month
USD
LIBOR
+
4.1%),
8/25/24
...........................................
United
States
75,156
75,214
2015-DNA1,
M3,
FRN,
3.968%,
(1-month
USD
LIBOR
+
3.3%),
10/25/27
..........................................
United
States
697,452
709,735
2015-DNA3,
M3,
FRN,
5.368%,
(1-month
USD
LIBOR
+
4.7%),
4/25/28
...........................................
United
States
8,881,800
9,255,166
2016-DNA2,
M3,
FRN,
5.318%,
(1-month
USD
LIBOR
+
4.65%),
10/25/28
..........................................
United
States
7,931,957
8,285,974
k
FNMA
Connecticut
Avenue
Securities
,
2013-C01,
M2,
FRN,
5.918%,
(1-month
USD
LIBOR
+
5.25%),
10/25/23
..........................................
United
States
4,727,785
4,926,412
2014-C01,
M2,
FRN,
5.068%,
(1-month
USD
LIBOR
+
4.4%),
1/25/24
...........................................
United
States
6,123,348
6,339,827
2014-C02,
1M2,
FRN,
3.268%,
(1-month
USD
LIBOR
+
2.6%),
5/25/24
...........................................
United
States
5,686,702
5,741,865
2014-C03,
1M2,
FRN,
3.668%,
(1-month
USD
LIBOR
+
3%),
7/25/24
...........................................
United
States
12,346,444
12,509,342
2014-C03,
2M2,
FRN,
3.568%,
(1-month
USD
LIBOR
+
2.9%),
7/25/24
...........................................
United
States
913,358
917,386
2015-C01,
1M2,
FRN,
4.968%,
(1-month
USD
LIBOR
+
4.3%),
2/25/25
...........................................
United
States
1,966,885
1,999,430
2015-C02,
1M2,
FRN,
4.668%,
(1-month
USD
LIBOR
+
4%),
5/25/25
...........................................
United
States
6,608,820
6,682,230
2015-C03,
1M2,
FRN,
5.668%,
(1-month
USD
LIBOR
+
5%),
7/25/25
...........................................
United
States
7,697,752
7,862,796
2016-C01,
1M2,
FRN,
7.418%,
(1-month
USD
LIBOR
+
6.75%),
8/25/28
...........................................
United
States
1,516,565
1,622,983
2016-C02,
1M2,
FRN,
6.668%,
(1-month
USD
LIBOR
+
6%),
9/25/28
...........................................
United
States
12,054,964
12,709,544
2016-C03,
1M2,
FRN,
5.968%,
(1-month
USD
LIBOR
+
5.3%),
10/25/28
..........................................
United
States
7,791,128
8,118,065
2016-C05,
2M2,
FRN,
5.118%,
(1-month
USD
LIBOR
+
4.45%),
1/25/29
...........................................
United
States
3,062,771
3,177,537
2016-C06,
1M2,
FRN,
4.918%,
(1-month
USD
LIBOR
+
4.25%),
4/25/29
...........................................
United
States
1,218,080
1,274,708
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Residential
Mortgage-Backed
Securities
(continued)
Thrifts
&
Mortgage
Finance
(continued)
k
FNMA
Connecticut
Avenue
Securities,
(continued)
2016-C07,
2M2,
FRN,
5.018%,
(1-month
USD
LIBOR
+
4.35%),
5/25/29
...........................................
United
States
2,289,109
$
2,394,544
2017-C01,
1M2,
FRN,
4.218%,
(1-month
USD
LIBOR
+
3.55%),
7/25/29
...........................................
United
States
13,197,948
13,680,893
2017-C03,
1M2,
FRN,
3.668%,
(1-month
USD
LIBOR
+
3%),
10/25/29
..........................................
United
States
17,241,962
17,711,761
2017-C04,
2M2,
FRN,
3.518%,
(1-month
USD
LIBOR
+
2.85%),
11/25/29
..........................................
United
States
5,508,094
5,633,261
2017-C05,
1M2,
FRN,
2.868%,
(1-month
USD
LIBOR
+
2.2%),
1/25/30
...........................................
United
States
12,423,885
12,528,491
163,769,018
a
a
a
a
a
a
Total
Residential
Mortgage-Backed
Securities
(Cost
$246,225,809)
................
233,426,415
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a,b
K2016470219
South
Africa
Ltd.,
Escrow
Account
..............
South
Africa
620,001
—
a
Mesquite
Energy,
Inc.,
Escrow
Account
.....................
United
States
6,000,000
90,000
a,b
Millennium
Corporate
Claim
Trust,
Escrow
Account
............
United
States
8,736,450
—
a,b
Millennium
Lender
Claim
Trust,
Escrow
Account
..............
United
States
8,736,450
—
Total
Escrows
and
Litigation
Trusts
(Cost
$5,707,489)
...........................
90,000
Total
Long
Term
Investments
(Cost
$3,549,715,110)
.............................
3,191,662,800
a
Short
Term
Investments
4.5%
a
a
Country
Shares
a
Value
a
a
Money
Market
Funds
1.3%
e,s
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
43,841,735
43,841,735
Total
Money
Market
Funds
(Cost
$43,841,735)
..................................
43,841,735
Principal
Amount
*
a
a
a
a
Repurchase
Agreements
3.1%
t
Joint
Repurchase
Agreement,
0.209%,
5/02/22
(Maturity
Value
$103,399,748)
BNP
Paribas
Securities
Corp.
(Maturity
Value
$60,862,126)
Deutsche
Bank
Securities,
Inc.
(Maturity
Value
$3,585,903)
HSBC
Securities
(USA),
Inc.
(Maturity
Value
$38,951,719)
Collateralized
by
U.S.
Government
Agency
Securities,
1.75%
-
6%,
12/20/24
-
10/20/51;
U.S.
Treasury
Bonds,
7.5%
-
7.63%,
11/15/24
-
2/15/25;
U.S.
Treasury
Notes,
0.38%
-
2%,
10/31/22
-
8/31/27
and
U.S.
Cash
Management
Bill,
Discount
Note,
0.00%,
5/17/22
(valued
at
$105,705,098)
..............................
103,397,950
103,397,950
Total
Repurchase
Agreements
(Cost
$103,397,950)
..............................
103,397,950
u
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Shares
Money
Market
Funds
0.1%
e,s
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.024%
....
United
States
4,261,000
4,261,000
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Short
Term
Investments
(continued)
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Repurchase
Agreements
0.0%
†
t
Joint
Repurchase
Agreement,
BNP
Paribas
SA,
0.27%,
5/02/22
(Maturity
Value
$1,066,040)
Collateralized
by
U.S.
Treasury
Bond,
6%,
2/15/26;
U.S.
Treasury
Bonds,
Index
Linked,
2%
-
2.375%,
1/15/25
-
1/15/26;
U.S.
Treasury
Bonds,
Strips,
2/15/26
-
2/15/27;
U.S.
Treasury
Notes,
0.25%
-
2.625%,
12/31/22
-
11/15/26;
and
U.S.
Treasury
Notes,
Index
Linked,
0.125%
-
0.25%,
1/15/25
-
7/15/26
(valued
at
$1,087,336)
........................................
1,066,016
$
1,066,016
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$5,327,016)
............................................................
5,327,016
Total
Short
Term
Investments
(Cost
$152,566,701
)
...............................
152,566,701
a
Total
Investments
(Cost
$3,702,281,811)
99.6%
..................................
$3,344,229,501
Other
Assets,
less
Liabilities
0.4%
.............................................
11,773,665
Net
Assets
100.0%
...........................................................
$3,356,003,166
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
c
See
Note
10
regarding
restricted
securities.
d
A
portion
or
all
of
the
security
is
on
loan
at
April
30,
2022.
See
Note
1(g).
e
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
f
Income
may
be
received
in
additional
securities
and/or
cash.
g
Perpetual
security
with
no
stated
maturity
date.
h
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
April
30,
2022,
the
aggregate
value
of
these
securities
was
$1,494,434,352,
representing
44.5%
of
net
assets.
i
The
coupon
rate
shown
represents
the
rate
at
period
end.
j
See
Note
1(j)
regarding
senior
floating
rate
interests.
k
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
l
See
Note
7
regarding
credit
risk
and
defaulted
securities.
m
See
Note
1(h)
regarding
Marketplace
Lending.
See
full
breakdown
of
marketplace
loans
holdings
in
the
table
at
the
end
of
this
schedule.
n
A
supranational
organization
is
an
entity
formed
by
two
or
more
central
governments
through
international
treaties.
o
Principal
amount
of
security
is
adjusted
for
inflation.
See
Note
1(l).
p
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
q
Adjustable
Rate
Mortgage-Backed
Security
(ARM);
the
rate
shown
is
the
effective
rate
at
period
end.
ARM
rates
are
not
based
on
a
published
reference
rate
and
spread,
but
instead
pass-through
weighted
average
interest
income
inclusive
of
any
caps
or
floors,
if
applicable,
from
the
underlying
mortgage
loans
in
which
the
majority
of
mortgages
pay
interest
based
on
the
index
shown
at
their
designated
reset
dates
plus
a
spread,
less
the
applicable
servicing
and
guaranty
fee
(MBS
margin).
r
Security
purchased
on
a
to-be-announced
(TBA)
basis.
See
Note
1(d).
s
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
t
See
Note
1(c)
regarding
joint
repurchase
agreement.
u
See
Note
1(g)
regarding
securities
on
loan.
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Strategic
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
,
At
April
30,
2022,
the
Fund
had
the
following
marketplace
loans
outstanding.
See
Note
1(i).
Description
Principal
Amount
Value
Marketplace
Loans
-
2.5%
Block,
Inc.
4570563.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
$
3,056
$
2,975
4570573.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
2,280
2,213
4570584.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
2,366
2,301
4570588.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
1,262
1,155
4570590.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
3,864
3,764
4570594.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
2,486
2,391
4570657.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
3,887
3,695
4570713.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
629
614
4570971.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
437
429
4571001.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
1,039
1,013
4571169.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
9,246
8,998
4571393.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
1,369
1,338
4571672.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
915
834
4571886.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
991
971
4571917.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
1,859
1,814
4572106.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
1,402
1,369
4572151.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
275
265
4572288.SQ.FTS.B,
Zero
Cpn,
3/29/23
...
7,814
7,138
4574091.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
2,011
1,921
4574224.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
5,693
5,548
4574839.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
44
44
4574878.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
1,936
1,847
4575152.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
1,148
1,070
4575169.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
4,581
4,271
4575478.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
624
605
4575791.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
9,581
9,253
4576331.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
606
475
4577366.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
11,055
10,658
4577656.SQ.FTS.B,
Zero
Cpn,
3/30/23
...
596
579
4577706.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
789
773
4577788.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
10,335
10,123
4578581.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
592
535
4578615.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
1,681
1,350
4578678.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
6,071
5,342
4579014.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
25,700
23,141
4579784.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
942
916
4579992.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
3,032
2,962
4580046.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
1,589
1,544
4580065.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
3,360
3,275
4580233.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
2,094
1,750
4580316.SQ.FTS.B,
Zero
Cpn,
4/01/23
...
1,130
1,094
4581051.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
14,256
13,915
4581308.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
1,741
1,618
4581341.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
21,288
13,999
4581499.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
1,396
1,366
4581541.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
332
324
4581574.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
2,759
783
4581593.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
2,559
2,386
4581674.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
2,289
2,233
4581773.SQ.FTS.B,
Zero
Cpn,
4/02/23
...
3,860
3,610
4581855.SQ.FTS.B,
Zero
Cpn,
4/03/23
...
1,165
1,127
4581900.SQ.FTS.B,
Zero
Cpn,
4/03/23
...
2,284
2,234
4582111.SQ.FTS.B,
Zero
Cpn,
4/03/23
...
1,717
1,651
4582159.SQ.FTS.B,
Zero
Cpn,
4/03/23
...
714
694
4582359.SQ.FTS.B,
Zero
Cpn,
4/03/23
...
1,306
997
4582557.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
624
542
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4583023.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
$
2,391
$
2,333
4583119.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
264
230
4583508.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
2,281
2,228
4583618.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
1,048
1,027
4583666.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
1,582
1,492
4583735.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
623
490
4583747.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
4,841
4,723
4583884.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
82
79
4583887.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
868
839
4583983.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
6,332
3,639
4584076.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
1,478
1,394
4584177.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
12,235
11,539
4584537.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
7,184
7,017
4584895.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
4,046
3,948
4585147.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
4,221
4,080
4585288.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
13,554
5,852
4585416.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
1,250
932
4585442.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
28
27
4585446.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
3,578
3,495
4585727.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
5,220
5,076
4585909.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
11,516
11,185
4586083.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
309
294
4586185.SQ.FTS.B,
Zero
Cpn,
4/04/23
...
2,972
2,408
4586755.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
259
232
4586775.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
1,190
1,107
4586831.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
1,157
1,137
4587010.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
2,279
1,761
4587068.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
3,766
3,601
4587168.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
2,151
1,863
4587209.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
6,678
5,604
4587352.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
1,297
745
4587380.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
3,900
3,606
4587542.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
2,724
2,647
4587668.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
707
695
4588111.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
1,993
1,953
4588245.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
3,204
2,926
4588347.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
8,356
8,152
4588789.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
14,696
14,366
4589702.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
3,489
1,707
4589783.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
2,963
2,893
4589912.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
393
383
4590025.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
2,251
2,145
4590181.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
7,270
6,856
4590358.SQ.FTS.B,
Zero
Cpn,
4/05/23
...
762
460
4590484.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
2,937
2,854
4590559.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
1,139
1,054
4590854.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
605
594
4590930.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
1,006
811
4590963.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
1,957
1,899
4591044.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
659
642
4591061.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
144
140
4591071.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
3,598
3,378
4591292.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
2,529
2,465
4592111.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
720
701
4592145.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
10,141
9,854
4592389.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
5,776
5,534
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4592914.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
$
3,145
$
3,045
4592971.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
626
611
4592987.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
1,650
1,615
4593066.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
2,121
1,962
4593141.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
2,716
2,602
4593356.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
3,082
3,010
4593809.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
3,789
3,625
4593856.SQ.FTS.B,
Zero
Cpn,
4/06/23
...
6,190
5,797
4597805.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
2,252
2,188
4597941.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
5,820
5,499
4598030.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
203
194
4598151.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
682
664
4598182.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
1,281
719
4598741.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
1,149
527
4598762.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
947
915
4598804.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
2,221
2,149
4599898.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
1,412
1,092
4599998.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
62
61
4600162.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
1,237
1,217
4600811.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
293
288
4600847.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
4,017
3,759
4600984.SQ.FTS.B,
Zero
Cpn,
4/07/23
...
7,248
7,068
4601272.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
687
670
4601301.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
2,829
2,549
4601373.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
1,596
1,554
4601587.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
14,396
14,053
4602271.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
538
402
4602285.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
34,133
22,002
4603320.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
963
947
4603703.SQ.FTS.B,
Zero
Cpn,
4/08/23
...
10,880
10,481
4603994.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
2,614
2,546
4604078.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
30,373
29,066
4604288.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
484
474
4604293.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
8,626
7,901
4604422.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
769
756
4604465.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
3,472
3,381
4604540.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
465
440
4604557.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
1,632
1,588
4604615.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
21,667
12,455
4604750.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
920
882
4604761.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
3,033
2,958
4604802.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
3,709
3,604
4604837.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
3,302
2,948
4604859.SQ.FTS.B,
Zero
Cpn,
4/09/23
...
1,374
1,336
4604872.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
1,194
1,045
4604886.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
2,273
1,187
4604916.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
157
151
4605120.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
5,518
4,636
4605163.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
3,688
3,616
4605267.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
1,247
1,212
4605365.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
1,112
1,083
4605385.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
8,128
6,134
4605490.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
3,531
3,077
4605510.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
3,743
3,615
4605537.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
1,209
1,179
4605547.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
4,679
4,381
4605635.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
1,302
1,232
4605646.SQ.FTS.B,
Zero
Cpn,
4/10/23
...
3,303
3,225
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4605694.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
$
860
$
812
4605736.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
4,290
4,064
4605766.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
3,387
3,249
4605789.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
4,109
3,995
4605828.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
976
890
4605840.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
367
361
4605852.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,612
1,571
4605868.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,462
1,224
4605898.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,555
2,312
4605919.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
181
173
4605925.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,527
2,288
4605943.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
3,841
3,747
4606045.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
3,020
2,822
4606065.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
6,423
6,279
4606179.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
10,364
3,499
4606219.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
704
373
4606224.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,112
1,107
4606259.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,382
1,327
4606319.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,887
1,837
4606335.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,103
909
4606342.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,931
2,854
4606361.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
5,034
4,883
4606392.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
402
366
4606464.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
17,369
14,959
4606623.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
9,753
9,482
4606700.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
6,857
6,666
4606780.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
5,095
3,684
4606824.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
7,756
7,330
4606877.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,888
2,151
4606916.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
15,475
15,133
4607071.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
15,484
15,051
4607174.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,251
2,190
4607192.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,386
1,355
4607208.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,043
1,018
4607214.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
1,875
1,827
4607238.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
15,513
15,093
4607321.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
3,319
3,186
4607336.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
366
358
4607382.SQ.FTS.B,
Zero
Cpn,
4/11/23
...
2,655
2,565
4607438.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
632
548
4607495.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
9
9
4607515.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,908
2,660
4607540.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,988
1,843
4607829.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
637
504
4607870.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
771
750
4607937.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,493
3,409
4608016.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,271
1,234
4608634.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
587
565
4608638.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
2,901
1,423
4608665.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,754
3,547
4608720.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
5,735
5,568
4608765.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,463
3,244
4608782.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
23,604
13,887
4608956.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
4,081
3,470
4608999.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
269
259
4609002.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,279
3,214
4609076.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
431
423
4609188.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
5,097
1,860
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4609209.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
$
3,764
$
3,607
4609248.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
7,481
7,303
4609372.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,149
1,116
4609386.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,979
3,837
4609420.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,447
1,407
4609436.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
6,862
4,689
4609472.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
2,063
2,001
4609496.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
12,193
7,808
4609551.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
5,454
1,938
4609565.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
677
607
4609574.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
2,161
2,100
4609599.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,695
1,527
4609610.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
859
842
4609622.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
6,071
5,865
4609661.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
242
227
4609705.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
654
640
4609715.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
21,611
20,872
4609888.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
3,887
2,037
4609932.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
481
436
4609948.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
10,659
9,917
4610101.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,086
984
4610106.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
6,814
6,646
4610234.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,690
1,650
4610255.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
929
909
4610269.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
1,670
1,624
4610320.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
2,114
2,064
4610366.SQ.FTS.B,
Zero
Cpn,
4/12/23
...
4,341
3,712
4610443.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
10,924
7,491
4610587.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
2,578
2,500
4610737.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
577
562
4610754.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
481
470
4610852.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
420
254
4610919.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
4,967
3,629
4611767.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
2,569
2,500
4611897.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
400
391
4611907.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
476
438
4611929.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
501
490
4611968.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
4,486
4,372
4612120.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
8,353
5,715
4612400.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
4,665
4,568
4612920.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
2,332
710
4612947.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
1,708
1,542
4612987.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
2,021
1,965
4613164.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
792
736
4613448.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
977
958
4613534.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
969
944
4613586.SQ.FTS.B,
Zero
Cpn,
4/13/23
...
303
298
4617840.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
146
137
4617849.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
3,468
3,369
4617909.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
1,856
1,774
4618070.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
548
533
4618113.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
10,089
9,057
4618453.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
1,499
1,448
4618518.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
2,097
2,000
4618621.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
21,394
20,651
4619503.SQ.FTS.B,
Zero
Cpn,
4/14/23
...
18,895
18,424
4621133.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
15,500
14,476
4621443.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,618
1,553
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4621574.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
$
953
$
875
4621907.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
3,409
3,237
4621989.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
864
805
4622171.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,394
1,340
4622222.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,860
1,810
4622266.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,449
1,407
4622290.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
15,883
15,053
4622639.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
3,183
2,546
4622713.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,550
1,504
4623345.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
2,082
927
4623364.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
6,315
6,186
4623580.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,913
1,785
4623613.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
1,904
1,784
4623669.SQ.FTS.B,
Zero
Cpn,
4/15/23
...
536
526
4623745.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
4,062
3,953
4623773.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
3,801
3,695
4623812.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
8,606
8,187
4623860.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
379
365
4623863.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
10,024
8,015
4623911.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
316
310
4623923.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
3,944
3,780
4623944.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
2,530
2,464
4624002.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
784
666
4624011.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
746
598
4624036.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
2,261
2,163
4624059.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
85
83
4624180.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
270
250
4624183.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
465
456
4624232.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
392
385
4624325.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
5,097
3,970
4624345.SQ.FTS.B,
Zero
Cpn,
4/16/23
...
2,932
2,842
4624403.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
652
322
4624405.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
754
685
4624408.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
624
590
4624444.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
7,076
6,829
4624501.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,066
1,036
4624513.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
5,591
5,403
4624545.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
266
223
4624549.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,032
1,014
4624631.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
3,195
3,118
4624673.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
8,265
7,990
4624742.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
9,034
8,782
4624869.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,786
1,368
4624887.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
2,104
2,049
4624932.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
3,300
2,549
4624958.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,260
1,220
4625004.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,797
1,756
4625034.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,953
1,898
4625054.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,906
1,356
4625063.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
1,131
1,036
4625082.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
7,215
6,759
4625127.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
2,385
2,195
4625142.SQ.FTS.B,
Zero
Cpn,
4/17/23
...
5,721
5,591
4625629.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
4,020
3,152
4625798.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
1,316
844
4625813.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
4,134
4,015
4625979.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
3,736
3,617
4626020.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
8,734
8,534
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4626121.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
$
5,742
$
5,604
4626298.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
10,268
3,701
4626356.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
2,681
2,604
4626406.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
3,784
3,687
4626471.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
1,449
1,413
4626495.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
465
445
4626510.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
571
485
4626514.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
4,330
4,196
4626787.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
369
337
4626790.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
1,738
1,678
4626960.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
2,167
2,110
4626999.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
1,098
1,072
4627247.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
9,471
9,223
4627409.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
439
430
4627415.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
14,464
14,142
4627581.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
207
191
4627586.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
4,624
3,204
4627629.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
32,599
31,714
4628088.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
1,010
961
4628095.SQ.FTS.B,
Zero
Cpn,
4/18/23
...
2,616
2,550
4628186.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,379
2,319
4628276.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,798
2,735
4628388.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
26,669
25,754
4629095.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,618
2,542
4629149.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
6,593
6,077
4629254.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,908
2,331
4629281.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
7,239
7,034
4629537.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
5,287
5,152
4629722.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
383
376
4629765.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,237
2,176
4629808.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
862
841
4629963.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
503
492
4630006.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
4,755
4,639
4630127.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,117
1,925
4630153.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
17,264
16,732
4630530.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,496
1,229
4630554.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
1,732
1,685
4630600.SQ.FTS.B,
Zero
Cpn,
4/19/23
...
2,995
2,923
4630666.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
502
494
4630986.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
1,346
1,315
4631135.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
7,301
6,714
4631339.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
1,639
1,595
4631381.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
1,191
1,142
4631402.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
3,311
3,085
4631512.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
6,788
6,236
4631644.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
3,660
3,530
4631701.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
1,215
1,179
4631906.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
6,076
5,905
4632065.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
3,680
3,385
4632162.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
2,381
2,175
4632282.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
9,355
9,029
4632557.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
1,167
1,142
4632596.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
848
712
4632610.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
6,533
6,085
4632880.SQ.FTS.B,
Zero
Cpn,
4/20/23
...
1,153
1,122
4634326.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
6,552
5,793
4634436.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
2,343
2,276
4634618.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
922
903
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4634735.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
$
1,544
$
1,391
4634851.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
3,518
3,403
4635075.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
22,657
20,582
4635753.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
20,444
19,571
4636668.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
10,553
6,808
4636852.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
644
622
4636968.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
3,374
2,700
4637052.SQ.FTS.B,
Zero
Cpn,
4/21/23
...
8,346
5,798
4637138.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
2,013
1,924
4637234.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
2,052
1,485
4637528.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
2,057
1,949
4637606.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
2,458
2,388
4637771.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
1,772
1,728
4637865.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
814
794
4637980.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
1,436
1,406
4638157.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
2,464
1,523
4638292.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
5,114
3,899
4638349.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
2,392
2,339
4638466.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
10,837
10,571
4638918.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
1,978
1,879
4638974.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
613
602
4639008.SQ.FTS.B,
Zero
Cpn,
4/22/23
...
37,534
36,004
4639718.SQ.FTS.B,
Zero
Cpn,
4/23/23
...
9,394
8,252
4639894.SQ.FTS.B,
Zero
Cpn,
4/23/23
...
3,046
2,959
4639952.SQ.FTS.B,
Zero
Cpn,
4/23/23
...
211
207
4639996.SQ.FTS.B,
Zero
Cpn,
4/23/23
...
1,910
1,816
4640163.SQ.FTS.B,
Zero
Cpn,
4/23/23
...
8,146
5,894
4640311.SQ.FTS.B,
Zero
Cpn,
4/24/23
...
12,255
11,826
4640616.SQ.FTS.B,
Zero
Cpn,
4/24/23
...
1,371
1,336
4640710.SQ.FTS.B,
Zero
Cpn,
4/24/23
...
1,156
1,070
4640756.SQ.FTS.B,
Zero
Cpn,
4/24/23
...
2,587
2,498
4640963.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
7,653
5,468
4640966.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
718
703
4640969.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
1,454
1,411
4640975.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
10,845
10,399
4640976.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
597
583
4641022.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
4,093
3,984
4641042.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
8,741
8,525
4641072.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
2,624
2,556
4641296.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
2,316
2,250
4641357.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
13,156
12,834
4641713.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
6,094
4,891
4641784.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
3,366
3,285
4641943.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
541
530
4641978.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
2,699
2,632
4642060.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
6,613
6,474
4642336.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
7,304
7,080
4642502.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
2,344
1,199
4642522.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
6,347
5,943
4642668.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
1,857
1,822
4642753.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
8,365
8,168
4643101.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
2,142
2,089
4643136.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
1,016
889
4643157.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
3,185
3,027
4643223.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
2,002
1,957
4643272.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
10,185
9,932
4643448.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
716
244
4643455.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
5,984
4,984
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
39
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4643510.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
$
2,571
$
2,498
4643552.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
3,535
3,414
4643601.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
5,420
5,277
4643723.SQ.FTS.B,
Zero
Cpn,
4/25/23
...
4,721
4,550
4643970.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
2,559
1,980
4644008.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
5,415
4,497
4644101.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
133
130
4644134.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
7,781
7,431
4644490.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
8,800
8,542
4645336.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
1,981
1,924
4645715.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
61,742
45,879
4647125.SQ.FTS.B,
Zero
Cpn,
4/26/23
...
1,870
1,790
4647992.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
29,638
28,943
4649047.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
2,463
2,406
4649133.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
2,037
1,983
4649161.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
7,495
7,263
4649272.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
2,746
2,653
4649296.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
1,249
1,212
4649328.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
3,346
3,249
4649372.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
1,403
1,360
4649396.SQ.FTS.B,
Zero
Cpn,
4/27/23
...
1,545
1,490
4650965.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
618
564
4650978.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
1,453
1,351
4651011.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
10,697
10,150
4651201.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
12,302
11,954
4651624.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
4,557
4,420
4651931.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
290
267
4652033.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
35,748
34,768
4653170.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
1,101
1,073
4653214.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
2,410
2,338
4653702.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
1,613
1,386
4653708.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
109
107
4653714.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
1,057
1,004
4653754.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
2,441
2,295
4653879.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
725
709
4653920.SQ.FTS.B,
Zero
Cpn,
4/28/23
...
2,192
1,907
4653999.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
126
124
4654183.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
2,435
2,357
4654291.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
197
183
4654333.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
901
879
4655034.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
919
854
4655273.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
1,630
1,597
4655510.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
300
257
4655535.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
5,653
5,516
4655988.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
2,964
2,860
4656066.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
815
678
4656430.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
1,668
1,627
4656520.SQ.FTS.B,
Zero
Cpn,
4/29/23
...
3,780
3,621
4656675.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
11,913
11,623
4656885.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
968
546
4656938.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
1,311
1,220
4656958.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
4,142
2,151
4656984.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
2,818
2,704
4657195.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
1,278
1,089
4657212.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
471
447
4657235.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
5,904
4,270
4657294.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
5,088
4,958
4657373.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
3,122
2,172
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4657432.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
$
3,531
$
3,439
4657502.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
1,298
544
4657736.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
103
101
4657804.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
6,510
5,725
4657890.SQ.FTS.B,
Zero
Cpn,
4/30/23
...
8,669
8,422
4658038.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
4,108
3,600
4658194.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
1,872
1,821
4658320.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
7,358
4,049
4658653.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
2,672
2,455
4658722.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
2,143
2,089
4658779.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
2,876
2,804
4658842.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
779
764
4658898.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
19,873
18,905
4659328.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
9,341
8,698
4659469.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
29
28
4659520.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
135
133
4659540.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
816
791
4659552.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
484
466
4659580.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
6,467
6,313
4659810.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
2,539
2,245
4659844.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
625
601
4659948.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
977
955
4659969.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
3,244
2,534
4659990.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
8,054
7,716
4660310.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
4,720
4,448
4660412.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
59,073
38,077
4660968.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
3,265
3,182
4661015.SQ.FTS.B,
Zero
Cpn,
5/01/23
...
2,939
2,684
4661122.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,648
1,556
4661174.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,066
1,043
4661468.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
9,835
9,528
4661643.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
4,295
4,198
4661808.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
4,141
3,805
4661890.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
3,935
1,596
4661964.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,367
1,330
4662048.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
3,170
3,066
4662127.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,437
1,403
4662158.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,276
1,125
4662184.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
3,615
3,039
4662309.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
20,845
17,997
4662567.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,251
1,223
4662632.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
3,665
3,562
4662672.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
7,820
4,489
4662785.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
4,177
3,970
4662839.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,995
1,935
4662868.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
5,832
4,294
4662910.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
2,909
2,444
4662952.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
4,715
4,485
4663027.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
3,500
3,403
4663078.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
942
920
4663096.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
27,120
16,924
4663347.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
4,775
3,901
4663438.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
2,357
2,282
4663479.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
7,407
7,155
4663564.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
1,389
1,354
4663579.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
8,837
8,579
4663916.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
24,742
15,441
4664077.SQ.FTS.B,
Zero
Cpn,
5/02/23
...
2,286
2,239
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4664186.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
$
2,312
$
2,200
4664270.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
16,952
16,514
4665055.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
2,041
1,986
4665159.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
5,296
5,172
4665323.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
2,856
2,779
4665413.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
2,706
2,629
4665470.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
1,578
1,523
4665676.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
5,242
4,278
4665926.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
2,555
2,490
4666114.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
1,202
1,074
4666154.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
5,717
5,227
4666280.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
8,347
8,109
4666482.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
788
774
4666530.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
993
941
4666596.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
4,477
4,371
4666682.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
4,646
4,492
4666752.SQ.FTS.B,
Zero
Cpn,
5/03/23
...
3,250
3,115
4668423.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
3,905
3,810
4668555.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
2,822
2,726
4668647.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
460
452
4668688.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
704
685
4668726.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
1,976
1,919
4668899.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
10,440
10,053
4669420.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
774
756
4669472.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
1,673
1,637
4669594.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
10,653
10,338
4670200.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
69
68
4670235.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
1,989
1,930
4670351.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
6,192
6,062
4670748.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
740
718
4670809.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
4,849
4,628
4670913.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
228
224
4670935.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
258
253
4670988.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
2,395
2,295
4671067.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
1,135
1,009
4671121.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
7,288
4,444
4671288.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
2,874
2,769
4671373.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
3,895
3,806
4671597.SQ.FTS.B,
Zero
Cpn,
5/04/23
...
9,765
9,495
4672075.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
23,198
22,523
4674155.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
1,517
1,308
4674404.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
492
473
4674453.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
595
566
4674465.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
7,629
6,703
4674741.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
1,689
1,579
4674886.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
1,275
1,178
4674930.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
19,765
18,802
4675799.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
3,286
1,753
4675859.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
337
330
4675936.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
2,182
2,084
4676126.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
3,823
3,689
4676298.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
1,041
1,005
4676563.SQ.FTS.B,
Zero
Cpn,
5/05/23
...
6,859
6,644
4677625.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
1,252
1,180
4677655.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
5,103
2,217
4677705.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
2,350
2,265
4677749.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
352
129
4677758.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
215
205
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4677767.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
$
2,845
$
2,768
4677833.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
4,402
4,247
4677893.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
2,705
1,256
4678003.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
1,775
1,738
4678116.SQ.FTS.B,
Zero
Cpn,
5/06/23
...
3,078
2,909
4678180.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
1,257
1,160
4678187.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
875
810
4678195.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
1,004
956
4678277.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
2,444
2,104
4678312.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
1,394
1,279
4678323.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
6,587
6,365
4678440.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
990
916
4678475.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
1,224
1,181
4678504.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
2,270
2,200
4678549.SQ.FTS.B,
Zero
Cpn,
5/07/23
...
5,884
5,621
4679334.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,604
2,544
4681076.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
5,370
5,185
4681277.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
869
661
4681434.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
9,331
9,084
4681784.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,627
2,548
4681873.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,879
2,783
4681958.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,241
2,183
4682013.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
4,339
4,149
4682239.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
1,023
1,003
4682382.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
11,407
11,066
4682745.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
1,826
1,765
4682763.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
3,679
3,573
4682911.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,212
2,128
4682982.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,577
2,493
4683205.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
6,057
5,876
4683430.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
1,164
1,126
4683449.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
20,322
19,783
4684124.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,935
2,805
4684185.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
1,248
1,156
4684212.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
3,510
3,389
4684279.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,247
2,180
4684335.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
1,077
1,054
4684406.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
295
250
4684424.SQ.FTS.B,
Zero
Cpn,
5/08/23
...
2,754
2,673
4689260.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
15,401
14,901
4689630.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
535
426
4689646.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,221
1,171
4689690.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
4,742
4,612
4690049.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,969
1,451
4690235.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,059
1,022
4690409.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,336
1,278
4690481.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,193
1,162
4690611.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
4,199
4,057
4691296.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,536
1,445
4691442.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
6,310
6,122
4691756.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
7,269
3,695
4692191.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
11,446
10,365
4692510.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
2,314
2,246
4692579.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,076
1,038
4692628.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,863
996
4692642.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
4,744
3,978
4692944.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
331
292
4692982.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
834
536
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
41
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4692987.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
$
3,709
$
3,567
4693038.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
3,861
3,632
4693075.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,359
1,334
4693190.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
5,105
4,879
4693409.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
133
130
4693423.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
19,067
16,861
4693642.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,301
1,269
4693724.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
851
827
4693752.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
3,135
3,057
4693941.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
9,494
6,962
4694140.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,320
1,235
4694200.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,384
875
4694222.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
1,174
1,151
4694295.SQ.FTS.B,
Zero
Cpn,
5/09/23
...
502
485
4701939.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
2,060
1,982
4702569.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
8,568
7,731
4703238.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
2,335
2,276
4704792.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
5,260
5,094
4704915.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
19,198
14,553
4705953.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
7,803
7,549
4706235.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
8,463
6,784
4706450.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
8,292
7,962
4706756.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
1,605
1,347
4706808.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
6,249
5,652
4707023.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
715
689
4707047.SQ.FTS.B,
Zero
Cpn,
5/10/23
...
15,718
14,801
4707138.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
613
443
4707221.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
214
206
4707232.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
439
400
4707248.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
1,014
960
4707269.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
1,899
1,824
4707300.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
423
406
4707305.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
3,209
3,101
4707334.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
9,201
8,838
4707494.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
2,097
2,009
4707511.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
7,323
6,488
4707638.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
1,142
1,091
4707748.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
4,722
4,598
4707810.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
174
166
4707814.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
595
541
4707821.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
504
490
4707824.SQ.FTS.B,
Zero
Cpn,
5/11/23
...
1,518
1,484
4708842.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
2,163
2,111
4708881.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
6,602
6,375
4709429.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
4,631
4,484
4711555.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
1,109
1,081
4711828.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
15,064
6,585
4712429.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
14,869
14,351
4713443.SQ.FTS.B,
Zero
Cpn,
5/12/23
...
1,149
1,099
4713461.SQ.FTS.B,
Zero
Cpn,
5/13/23
...
783
264
4713664.SQ.FTS.B,
Zero
Cpn,
5/13/23
...
4,024
3,904
4713785.SQ.FTS.B,
Zero
Cpn,
5/13/23
...
10,385
9,914
4714060.SQ.FTS.B,
Zero
Cpn,
5/13/23
...
1,500
1,212
4714469.SQ.FTS.B,
Zero
Cpn,
5/14/23
...
828
281
4714510.SQ.FTS.B,
Zero
Cpn,
5/14/23
...
3,082
2,967
4714589.SQ.FTS.B,
Zero
Cpn,
5/14/23
...
17,974
17,331
4716941.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
5,352
5,142
4717340.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
3,630
3,155
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4717504.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
$
1,740
$
1,694
4717695.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
491
474
4718120.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
24,068
23,212
4719282.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
898
836
4719311.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
1,835
1,789
4719492.SQ.FTS.B,
Zero
Cpn,
5/15/23
...
345
321
4720097.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
796
720
4720319.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
32,371
31,437
4723006.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
7,366
7,167
4723279.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
2,993
2,916
4723372.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
152
147
4723373.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
2,510
2,396
4723454.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
1,636
1,582
4723505.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
1,885
1,852
4723682.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
1,608
1,555
4723739.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
43
42
4723756.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
2,160
2,095
4723911.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
1,666
1,616
4723979.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
8,036
7,606
4724551.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
3,421
3,305
4724699.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
3,764
3,667
4724827.SQ.FTS.B,
Zero
Cpn,
5/16/23
...
3,805
3,677
4725108.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
134
132
4725159.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
1,310
1,288
4725500.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
2,737
2,664
4725667.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
3,688
3,600
4726198.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
2,556
2,475
4727726.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
1,378
1,342
4728031.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
1,856
1,789
4728173.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
1,637
1,587
4728338.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
4,830
4,665
4728592.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
670
628
4728605.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
6,393
5,939
4728845.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
1,170
1,146
4729038.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
1,274
1,243
4729378.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
327
319
4729437.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
4,279
3,947
4729540.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
693
678
4729631.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
111
109
4729653.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
4,616
4,500
4729758.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
997
975
4729828.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
12,453
12,069
4730353.SQ.FTS.B,
Zero
Cpn,
5/17/23
...
5,374
5,283
4738688.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
1,612
1,418
4738753.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
9,615
6,447
4739151.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
1,551
1,504
4739265.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
4,017
3,927
4740841.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
9,062
6,441
4741312.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
7,890
6,012
4741844.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
4,741
4,558
4742234.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
8,804
8,481
4742735.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
8,247
7,986
4743238.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
251
246
4743290.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
746
715
4743383.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
2,082
2,036
4743596.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
7,479
7,135
4744249.SQ.FTS.B,
Zero
Cpn,
5/18/23
...
6,896
6,640
4744488.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
770
745
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4744585.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
$
4,881
$
4,737
4744976.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
3,374
2,862
4745172.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
14,420
13,951
4747059.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
1,508
1,472
4747188.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
553
423
4747259.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
855
836
4747344.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
3,200
3,110
4747532.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
2,934
2,853
4747756.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
2,229
2,074
4748281.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
1,766
1,712
4748471.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
1,449
1,414
4748625.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
9,537
9,348
4749572.SQ.FTS.B,
Zero
Cpn,
5/19/23
...
4,994
4,797
4749640.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
4,647
4,508
4749732.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
12,296
11,914
4750103.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
9,577
9,077
4750235.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
652
640
4750298.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
3,616
3,385
4750347.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
1,236
1,167
4750374.SQ.FTS.B,
Zero
Cpn,
5/20/23
...
15,174
14,790
4750803.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
4,512
4,359
4751050.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
4,356
4,266
4751209.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
2,326
2,259
4751463.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
2,027
1,970
4751536.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
586
568
4751549.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
1,361
1,114
4751578.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
5,331
5,151
4751680.SQ.FTS.B,
Zero
Cpn,
5/21/23
...
3,016
2,955
4752031.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
920
898
4752128.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
13,926
13,406
4754132.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
4,106
3,958
4754491.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
606
540
4754528.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
594
569
4754787.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
8,066
7,733
4755231.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
1,384
1,340
4755278.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
30,643
29,434
4756113.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
1,025
997
4756159.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
6,805
6,427
4756371.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
963
937
4756435.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
3,552
3,449
4756554.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
3,614
3,356
4756608.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
12,448
8,225
4756801.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
111
109
4756819.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
3,464
3,359
4757052.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
2,267
2,190
4757159.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
5,198
4,904
4757425.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
410
398
4757460.SQ.FTS.B,
Zero
Cpn,
5/22/23
...
153
150
4761210.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
603
582
4761258.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
6,645
6,284
4761374.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
247
211
4761386.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
6,042
5,849
4761655.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
2,468
2,377
4761750.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
13,913
13,513
4763518.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
15,517
15,098
4764456.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
3,189
2,972
4764584.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
523
510
4764599.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
9,741
9,549
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4765267.SQ.FTS.B,
Zero
Cpn,
5/23/23
...
$
35,671
$
34,603
4773604.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
9,605
6,263
4773759.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
613
466
4773955.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
2,868
2,770
4774144.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
2,474
1,800
4774186.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
5,706
5,529
4774293.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
7,124
5,515
4774471.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
779
761
4776334.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
28,422
27,463
4777755.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
795
323
4777776.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
3,072
2,956
4777853.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
2,431
2,132
4777946.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
6,584
5,895
4778147.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
1,787
1,731
4778229.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
379
373
4778622.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
11,204
10,445
4778835.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
1,423
1,379
4778859.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
4,540
4,372
4779011.SQ.FTS.B,
Zero
Cpn,
5/24/23
...
4,251
4,130
4779254.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
1,678
1,630
4779274.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
5,680
5,464
4779351.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
3,286
3,177
4779404.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
1,358
1,324
4779439.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
1,581
1,231
4779454.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
2,160
2,099
4779483.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
1,018
991
4779515.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
1,744
1,685
4779544.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
2,038
1,978
4779581.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
1,075
1,000
4779593.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
5,194
4,771
4779678.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
5,800
4,623
4779833.SQ.FTS.B,
Zero
Cpn,
5/25/23
...
21,558
20,256
4781746.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
2,139
2,090
4782448.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
1,225
1,195
4782528.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
538
460
4782831.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
6,739
6,479
4783513.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
2,372
2,292
4783667.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
16,378
15,494
4784665.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
2,258
2,126
4784781.SQ.FTS.B,
Zero
Cpn,
5/26/23
...
3,427
3,343
4785231.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
2,995
2,660
4785272.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
3,277
3,171
4785308.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
1,710
1,652
4785365.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
1,275
1,230
4785399.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
457
389
4785406.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
5,642
5,446
4785480.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
1,330
1,242
4785485.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
5,981
5,452
4785582.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
1,380
1,341
4785638.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
3,679
3,583
4785715.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
1,058
985
4785742.SQ.FTS.B,
Zero
Cpn,
5/27/23
...
9,588
9,309
4785957.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
3,224
3,121
4786029.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
11,778
11,316
4786214.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
1,938
1,123
4786242.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
298
286
4786366.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
744
721
4786395.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
3,115
2,459
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
43
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4786447.SQ.FTS.B,
Zero
Cpn,
5/28/23
...
$
4,267
$
3,994
4786652.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
11,978
11,635
4788373.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
17,012
15,501
4789370.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
14,598
13,470
4789783.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
9,321
8,303
4790065.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
1,006
977
4790186.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
14,017
13,385
4790547.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
1,259
1,231
4790581.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
841
817
4790591.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
1,336
1,060
4790609.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
4,412
4,257
4790686.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
7,013
6,746
4790824.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
3,478
2,964
4790895.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
1,553
1,459
4791055.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
482
459
4791065.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
4,774
4,629
4791160.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
9,437
9,147
4791294.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
3,111
3,035
4791362.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
3,649
3,532
4791505.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
11,886
11,535
4791812.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
3,106
3,020
4791853.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
1,877
1,803
4791913.SQ.FTS.B,
Zero
Cpn,
5/29/23
...
2,078
2,014
4792256.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
11,979
11,719
4792640.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
3,357
3,120
4792666.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
4,790
4,643
4792733.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
7,193
5,662
4792842.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
6,295
5,551
4792978.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
2,705
2,116
4793042.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
12,458
12,149
4793573.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
2,872
2,772
4793886.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
10,544
9,762
4794315.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
12,980
12,470
4794616.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
6,421
6,225
4794760.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
21,424
20,108
4795007.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
14,016
13,688
4795386.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
1,200
1,094
4795399.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
874
803
4795424.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
48,361
45,997
4796125.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
803
755
4796150.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
31,749
30,617
4796420.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
2,315
2,250
4796452.SQ.FTS.B,
Zero
Cpn,
5/30/23
...
5,649
5,255
4796651.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
3,524
2,247
4796735.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
516
433
4796880.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
2,127
2,060
4797061.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
10,040
9,786
4797203.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
8,205
7,976
4797373.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
1,673
1,617
4797420.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
803
776
4797429.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
6,578
6,387
4797629.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
3,622
3,459
4797807.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
18,000
17,508
4798750.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
592
573
4798801.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
4,280
2,893
4798843.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
8,109
7,296
4799348.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
2,931
2,862
4799447.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
9,268
8,988
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4799608.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
$
7,123
$
6,942
4799719.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
2,574
2,497
4799759.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
496
477
4799862.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
2,924
2,828
4799921.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
24,088
23,415
4800237.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
338
319
4800251.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
6,949
6,765
4800337.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
1,794
1,748
4800353.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
5,144
5,024
4800458.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
10,290
9,590
4800550.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
6,372
6,172
4800609.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
3,916
3,571
4800644.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
424
337
4800658.SQ.FTS.B,
Zero
Cpn,
6/01/23
...
11,697
11,167
4805441.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
21,750
21,185
4805721.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
8,683
8,416
4805905.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
34,683
33,690
4807286.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
1,902
1,662
4807333.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
2,287
2,192
4807387.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
7,154
6,987
4807696.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
13,414
12,928
4807880.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
25,503
23,902
4808228.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
2,257
2,118
4808282.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
905
869
4808310.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
776
762
4808413.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
1,845
1,796
4808500.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
46,350
44,735
4809122.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
4,164
4,058
4809261.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
4,086
3,971
4809331.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
14,347
12,854
4809479.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
490
418
4809488.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
1,672
1,633
4809531.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
4,208
4,108
4809630.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
3,013
2,896
4809654.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
2,776
2,674
4809687.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
18,018
12,053
4809752.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
1,067
1,042
4809776.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
2,513
2,437
4809809.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
615
561
4809811.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
190
185
4809812.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
2,095
2,041
4809840.SQ.FTS.B,
Zero
Cpn,
6/02/23
...
1,838
1,719
4810075.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
5,727
5,272
4810144.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
4,693
4,288
4810261.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
1,819
1,760
4810323.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
120
118
4810965.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
611
589
4811176.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
17,410
16,309
4811763.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
16,563
15,688
4811954.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
6,439
6,275
4812078.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
1,028
1,003
4812102.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
31,857
30,735
4812700.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
3,107
3,010
4812784.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
480
464
4812787.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
5,994
5,264
4812842.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
3,308
3,221
4813010.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
3,650
3,563
4813069.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
2,065
1,992
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4813108.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
$
3,061
$
2,925
4813131.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
788
747
4813142.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
671
653
4813154.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
3,980
3,168
4813165.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
5,082
4,932
4813191.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
6,080
5,884
4813265.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
2,779
2,667
4813314.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
1,539
1,495
4813387.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
1,783
1,717
4813400.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
215
210
4813403.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
10,271
9,515
4813651.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
2,540
2,460
4813693.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
882
858
4813706.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
4,084
3,926
4813942.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
3,135
3,048
4814014.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
7,681
7,131
4814161.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
2,612
2,536
4814188.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
1,991
1,761
4814198.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
482
473
4814219.SQ.FTS.B,
Zero
Cpn,
6/03/23
...
1,954
1,898
4814317.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
4,396
4,256
4814361.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
2,090
2,009
4814394.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
1,052
1,024
4814403.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
21,842
20,199
4814649.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
3,074
2,803
4814705.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
6,088
5,914
4814778.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
1,347
1,310
4814796.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
6,020
5,801
4814884.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
10,981
10,637
4815062.SQ.FTS.B,
Zero
Cpn,
6/04/23
...
22,801
15,285
4815254.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
2,213
2,142
4815290.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
1,434
1,388
4815359.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
3,435
3,326
4815427.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
362
352
4815440.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
9,017
8,754
4815592.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
1,880
1,813
4815617.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
1,765
1,505
4815646.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
9,103
8,818
4815791.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
2,904
2,769
4815836.SQ.FTS.B,
Zero
Cpn,
6/05/23
...
17,294
15,601
4816519.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
5,419
5,252
4816763.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
3,319
3,221
4816842.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
1,388
1,341
4816871.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
1,571
1,410
4816879.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
3,400
3,293
4816943.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
5,182
5,049
4817023.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
3,281
3,207
4817230.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
563
485
4817240.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
2,479
2,415
4817325.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
3,787
3,657
4817415.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
838
795
4817437.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
2,813
2,551
4817479.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
1,699
1,665
4817555.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
2,077
1,993
4817573.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
1,643
1,458
4817602.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
6,707
6,036
4817699.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
735
720
4817751.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
3,450
3,367
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4817870.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
$
5,334
$
5,210
4817986.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
12,064
11,659
4818196.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
11,114
10,743
4818363.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
1,634
1,493
4818428.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
769
748
4818482.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
10,892
10,591
4818704.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
5,652
5,439
4818787.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
382
371
4818794.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
2,677
2,603
4818832.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
6,960
6,772
4818874.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
427
412
4818879.SQ.FTS.B,
Zero
Cpn,
6/06/23
...
20,249
19,521
4819144.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
2,634
2,515
4819184.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
7,505
7,336
4819294.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,543
1,371
4819298.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
5,177
3,725
4819343.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
44,776
41,043
4819636.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,369
1,331
4819642.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,095
1,075
4819735.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
42,320
39,693
4820001.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,605
1,505
4820020.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
5,366
5,092
4820060.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,668
1,615
4820067.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
401
371
4820091.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
4,990
4,499
4820170.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,034
980
4820180.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
2,867
2,653
4820198.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
655
628
4820205.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,163
1,133
4820313.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
13,868
13,293
4820503.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
5,516
5,309
4820542.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
686
670
4820553.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
10,164
5,390
4820586.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
914
882
4820601.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
7,412
7,149
4820655.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
96
94
4820754.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,001
921
4820761.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
14,759
14,259
4821129.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
10,971
10,638
4821195.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
1,774
1,722
4821209.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
2,120
2,021
4821290.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
4,822
4,673
4821317.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
2,692
2,629
4821351.SQ.FTS.B,
Zero
Cpn,
6/07/23
...
9,258
8,921
4821505.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
1,019
919
4821513.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
11,123
10,536
4821574.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
4,324
4,205
4821599.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
5,494
5,345
4821630.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
7,136
7,002
4821715.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
2,099
2,004
4821729.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
2,474
2,384
4821742.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
5,136
4,879
4821771.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
3,019
2,766
4821781.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
4,648
4,033
4821801.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
6,926
6,277
4821846.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
1,257
1,183
4821904.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
796
389
4821908.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
934
758
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
45
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4821936.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
$
395
$
389
4821955.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
13,108
12,550
4822042.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
524
508
4822050.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
18,688
18,006
4822175.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
2,457
2,363
4822201.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
867
848
4822221.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
6,814
6,002
4822253.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
4,606
4,071
4822332.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
919
865
4822339.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
2,549
2,467
4822354.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
1,028
1,001
4822361.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
5,394
5,224
4822413.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
32,653
31,334
4822937.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
1,567
1,529
4823019.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
3,100
2,959
4823185.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
563
534
4824530.SQ.FTS.B,
Zero
Cpn,
6/08/23
...
49,762
48,339
4827143.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
11,926
11,652
4827297.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
3,401
3,149
4827316.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
1,550
1,500
4827322.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
5,518
5,378
4827412.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
28,969
27,758
4828259.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
571
555
4828301.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
32,685
31,678
4828730.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
6,960
6,694
4828820.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
947
920
4828854.SQ.FTS.B,
Zero
Cpn,
6/09/23
...
23,129
18,466
4829216.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
45,695
31,985
4830253.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,871
1,814
4830274.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
597
584
4830283.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
806
788
4830294.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,818
2,511
4830320.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
8,580
8,183
4830376.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,620
2,527
4830392.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
7,123
6,902
4830439.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,041
3,888
4830468.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
12,498
12,046
4830551.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,489
3,383
4830640.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,586
2,358
4830652.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
11,756
11,424
4830753.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,288
4,143
4830820.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
459
434
4830822.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
709
693
4830837.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
6,740
6,425
4830906.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,580
3,297
4830931.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
482
416
4830936.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
5,609
5,355
4830967.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,280
2,206
4831001.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,221
4,092
4831054.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,235
1,205
4831077.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
903
855
4831084.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,377
4,192
4831110.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,245
894
4831117.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,059
2,833
4831145.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
5,074
4,900
4831201.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
11,789
8,782
4831245.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,292
2,232
4831269.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,166
3,188
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4831295.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
$
1,128
$
1,093
4831300.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,358
1,326
4831319.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
5,551
5,385
4831353.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
10,459
7,151
4831418.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
8,160
7,825
4831466.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
904
872
4831475.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,802
3,564
4831508.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,758
3,615
4831531.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
5,440
5,213
4831606.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
6,973
6,474
4831650.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,403
1,323
4831653.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,944
1,474
4831675.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,892
2,686
4831689.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,402
2,343
4831716.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,114
1,085
4831721.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,725
4,254
4831746.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,480
1,176
4831772.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
11,634
11,191
4831889.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,798
1,681
4831910.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
7,695
7,388
4831986.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
13,526
12,176
4832097.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,130
3,038
4832127.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,785
2,640
4832149.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
5,235
5,126
4832260.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
975
871
4832278.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
478
412
4832297.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,124
2,001
4832346.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,558
1,471
4832369.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,389
3,277
4832410.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,364
1,320
4832424.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,807
1,746
4832448.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
13,151
12,700
4832548.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
11,397
7,103
4832628.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,742
2,665
4832667.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
2,864
2,810
4832720.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
3,726
3,584
4832815.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
1,219
1,180
4832868.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
4,035
3,896
4832932.SQ.FTS.B,
Zero
Cpn,
6/10/23
...
29,095
27,991
4833204.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
8,716
8,404
4833336.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
3,647
3,552
4833388.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
5,149
5,028
4833494.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
2,439
2,305
4833520.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
5,690
4,118
4833576.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
3,954
3,682
4833621.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
2,059
2,010
4833659.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
9,124
8,801
4833766.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
3,393
3,273
4833812.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
2,136
2,062
4833828.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
2,809
2,720
4833861.SQ.FTS.B,
Zero
Cpn,
6/11/23
...
8,229
8,011
4834054.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
1,768
1,535
4834077.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
1,414
1,365
4834108.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
4,506
4,367
4834162.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
698
604
4834168.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
484
438
4834187.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
3,724
3,585
4834220.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
2,130
1,546
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4834234.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
$
5,154
$
4,977
4834319.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
5,625
5,422
4834382.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
1,335
1,279
4834399.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
1,302
1,255
4834416.SQ.FTS.B,
Zero
Cpn,
6/12/23
...
47,089
45,632
4835546.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
311
303
4835595.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
6,973
6,704
4835737.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
4,616
4,463
4836247.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
3,928
3,834
4836359.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
109
107
4836387.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
609
419
4836406.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
6,292
6,105
4836543.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
10,887
10,539
4836720.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
10,895
8,757
4836839.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
2,081
1,989
4836888.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
6,167
5,927
4836998.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
1,071
1,035
4837045.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
1,407
1,371
4837086.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
1,520
1,487
4837127.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
30,944
26,975
4837490.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
7,904
7,305
4837601.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
19,680
16,032
4837832.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
4,409
4,219
4837849.SQ.FTS.B,
Zero
Cpn,
6/13/23
...
4,219
4,021
4837910.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
37,162
34,708
4838261.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,402
2,916
4838294.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
4,028
3,922
4838333.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
750
357
4838364.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
4,911
4,667
4838399.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
8,895
8,472
4838538.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
18,521
17,037
4838849.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
2,485
2,396
4838894.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,735
1,672
4838915.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,335
1,296
4838933.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,424
1,379
4838950.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
10,254
9,555
4838982.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
43,093
41,502
4839060.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
346
339
4839065.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
502
488
4839067.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,333
1,272
4839102.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,596
1,392
4839115.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,729
3,559
4839151.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
2,591
2,491
4839175.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,720
1,428
4839204.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
9,363
9,074
4839283.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
4,410
4,157
4839346.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
7,640
7,366
4839422.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
22,499
21,564
4839507.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,673
3,270
4839602.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,283
2,432
4839660.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
2,884
2,766
4839695.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,701
3,554
4839768.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
8,448
7,480
4839836.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
2,253
2,180
4839855.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,192
1,081
4839881.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
12,509
12,055
4839993.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
13,955
13,525
4840026.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
847
805
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4840033.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
$
491
$
428
4840040.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
6,103
5,841
4840076.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
6,019
5,748
4840139.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
2,772
2,580
4840166.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,255
2,940
4840227.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,685
3,603
4840302.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
9,158
8,579
4840397.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
5,517
5,357
4840438.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,370
1,302
4840451.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
4,600
4,384
4840454.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
15,336
14,745
4840626.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,167
882
4840685.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
2,057
1,995
4840693.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
22,109
20,619
4840697.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,213
710
4840772.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
3,454
3,343
4840854.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
666
632
4840883.SQ.FTS.B,
Zero
Cpn,
6/14/23
...
1,687
1,635
4840946.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
1,845
1,734
4840964.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
3,582
3,456
4840981.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
1,067
1,036
4840999.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
7,424
7,204
4841077.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,101
2,039
4841093.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
3,381
3,050
4841116.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
11,234
7,543
4841174.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,724
2,652
4841580.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,455
2,339
4841613.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
822
729
4841670.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
4,220
4,091
4841697.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
731
710
4841734.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,982
2,905
4841767.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
29,094
27,013
4841927.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
355
348
4842009.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
6,837
6,535
4842088.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
4,028
3,761
4842108.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
1,116
1,066
4842161.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
7,403
7,130
4842266.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
4,021
3,833
4842304.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,149
2,041
4842324.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
1,634
1,562
4842349.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
1,898
1,548
4842376.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
1,842
1,781
4842421.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
401
393
4842483.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
3,459
3,306
4842503.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
9,304
9,037
4842605.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
4,353
2,950
4842631.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
6,675
5,653
4842660.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
15,454
14,965
4842821.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,363
2,288
4842840.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
22,041
20,616
4842938.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
758
739
4842950.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
19,837
19,211
4843091.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
3,798
3,667
4843160.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
4,983
4,786
4843200.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
8,736
8,289
4843260.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
7,879
7,371
4843311.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,927
2,280
4843394.SQ.FTS.B,
Zero
Cpn,
6/15/23
...
2,971
2,759
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4848084.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
$
11,257
$
10,997
4848365.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
2,385
2,306
4848370.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
21,848
18,433
4848554.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
5,964
5,776
4848622.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
4,201
4,026
4848683.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,279
3,171
4848754.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
919
828
4848786.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
8,563
8,268
4848970.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
4,889
4,743
4849168.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,351
3,228
4849389.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
8,998
8,623
4849669.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
17,172
16,587
4850013.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
38,723
37,075
4850458.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
13,806
13,282
4850611.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,065
1,019
4850645.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,656
3,518
4850690.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
35,878
34,579
4851069.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
975
938
4851510.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
2,031
1,951
4852345.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,978
1,930
4853165.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,502
3,321
4853816.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,809
1,748
4854087.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
19,743
17,916
4857073.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,382
1,331
4857136.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,037
876
4857157.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,122
1,091
4857173.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
2,479
2,399
4857247.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,460
1,412
4857259.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,258
3,165
4857295.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,292
1,265
4857359.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,544
3,423
4857385.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
2,597
2,506
4857427.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
11,021
9,668
4857526.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,832
1,719
4857536.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
5,466
5,308
4857584.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
6,446
6,036
4857633.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
3,029
2,338
4857679.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
1,959
1,862
4857700.SQ.FTS.B,
Zero
Cpn,
6/16/23
...
2,833
2,727
4857766.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
7,791
7,502
4857912.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,432
4,243
4857991.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,971
1,908
4858043.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
678
632
4858078.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,122
3,869
4858139.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,478
4,060
4858187.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
432
399
4858260.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
8,264
8,017
4858432.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
6,280
5,974
4858544.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,038
1,013
4858620.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
2,689
2,567
4858674.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
2,434
2,317
4858747.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
309
300
4858751.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,463
1,275
4858799.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
2,095
1,985
4858942.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,260
1,162
4859031.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
264
259
4859120.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,096
3,784
4859281.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,880
1,795
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4859353.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
$
1,094
$
1,067
4859395.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
3,956
3,736
4859465.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,438
4,284
4859519.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,671
1,552
4859542.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
3,495
3,149
4859615.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
5,278
4,818
4859675.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
2,371
2,293
4859811.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,170
1,120
4859995.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,488
3,138
4860026.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
6,196
5,708
4860098.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
6,752
6,558
4860159.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
5,608
5,385
4860257.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
8,195
7,952
4860412.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
3,271
3,155
4860544.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
13,523
12,890
4860744.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
534
517
4860769.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
14,619
14,201
4860887.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
14,203
13,755
4861018.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
1,267
1,142
4861028.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
2,203
2,118
4861060.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
4,389
4,179
4861133.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
33,693
32,534
4861461.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
883
787
4861474.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
3,643
3,500
4861550.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
5,396
5,223
4861671.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
2,223
2,141
4861743.SQ.FTS.B,
Zero
Cpn,
6/17/23
...
530
495
4861854.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,235
910
4861868.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
30,866
29,795
4861877.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,136
3,041
4861907.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,776
3,683
4861992.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
2,212
2,134
4862012.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
4,115
3,724
4862014.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
6,610
6,390
4862034.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,235
2,652
4862056.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
2,476
2,408
4862070.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
7,282
7,126
4862074.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,766
3,404
4862128.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,857
3,614
4862148.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
6,208
5,981
4862165.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,531
1,492
4862184.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
862
829
4862192.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
19,555
15,741
4862217.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,591
1,552
4862252.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,939
1,898
4862306.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,637
1,584
4862318.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
2,312
2,236
4862341.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
939
441
4862346.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,950
1,888
4862370.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
2,921
2,819
4862387.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,951
1,888
4862401.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
1,478
1,422
4862422.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
2,518
2,423
4862443.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
7,343
6,776
4862502.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
8,876
8,259
4862532.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
5,581
5,362
4862554.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,625
3,486
4862588.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
3,695
3,565
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4862601.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
$
895
$
865
4862615.SQ.FTS.B,
Zero
Cpn,
6/18/23
...
8,849
7,556
4862676.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
9,005
8,692
4862730.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
411
396
4862738.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,083
1,035
4862758.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
497
478
4862769.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
11,280
9,264
4862799.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
3,504
3,287
4862828.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
5,567
5,313
4862835.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,683
1,627
4862850.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
2,039
1,989
4862874.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
3,935
3,798
4862918.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
2,193
2,113
4862938.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,726
1,552
4862943.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
822
578
4862963.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,694
1,605
4862998.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,319
1,086
4863006.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
3,015
2,931
4863011.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
738
700
4863026.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
729
708
4863041.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
820
778
4863045.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
974
954
4863048.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
978
940
4863060.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
53
52
4863062.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
3,882
2,220
4863080.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
12,552
11,927
4863082.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
965
921
4863092.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,010
977
4863104.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
649
605
4863112.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,134
1,034
4863152.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
2,830
2,739
4863180.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,106
1,022
4863186.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
7,336
6,879
4863238.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
6,432
4,431
4863256.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,328
1,267
4863272.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
717
595
4863274.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
3,847
3,748
4863316.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
4,491
4,316
4863323.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
3,211
3,073
4863343.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
2,439
2,285
4863359.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
22,906
21,339
4863364.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
5,942
5,750
4863412.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
13,840
12,781
4863472.SQ.FTS.B,
Zero
Cpn,
6/19/23
...
1,523
1,486
4863607.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
7,116
6,378
4863700.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
6,868
6,557
4863733.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
6,582
6,423
4863925.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
8,023
7,481
4864134.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,168
1,130
4864344.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
3,380
3,152
4864375.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,850
1,750
4864424.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
3,716
3,552
4864583.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
7,026
6,720
4864776.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
7,524
7,277
4864990.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
6,602
6,372
4865007.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
10,388
9,247
4865123.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
485
473
4865141.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,162
816
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4865173.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
$
2,945
$
2,832
4865251.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
12,453
11,480
4865268.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
2,330
2,254
4865321.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
4,422
4,247
4865419.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
8,765
5,717
4865424.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
14,645
14,017
4865486.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,582
1,521
4865515.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
2,356
1,651
4865553.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
4,077
3,630
4865629.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
9,646
9,296
4865744.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
6,847
6,573
4865787.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
72,363
65,207
4865905.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
4,834
4,681
4866192.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
2,605
2,521
4866358.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
2,940
2,846
4866407.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
5,379
5,150
4866502.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
759
743
4866514.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
8,002
7,758
4866601.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
4,684
4,493
4866624.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,603
1,453
4866645.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
2,339
2,274
4866660.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
8,841
8,297
4866708.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
369
361
4866726.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
8,243
7,922
4866779.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,572
1,522
4866807.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
427
376
4866813.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
843
684
4866814.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
56,533
54,684
4866856.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
388
369
4866867.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
11,913
11,524
4866997.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
5,297
5,022
4867061.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
3,300
3,192
4867117.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
5,595
5,357
4867244.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
1,213
1,131
4867252.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
217
212
4867257.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
2,487
2,016
4867259.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
5,583
5,369
4867275.SQ.FTS.B,
Zero
Cpn,
6/20/23
...
3,931
3,807
4867335.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
798
782
4867656.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
17,946
16,685
4867783.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
1,046
917
4867795.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
950
930
4867843.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
2,715
2,172
4867863.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
3,328
2,907
4867903.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
3,205
2,600
4867929.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,336
4,213
4868090.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,595
4,309
4868203.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
2,922
2,804
4868234.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
146
143
4868246.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,762
4,387
4868295.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
1,048
977
4868354.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
13,435
12,872
4868508.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
1,643
1,557
4868518.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,410
4,279
4868563.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
2,704
2,591
4868579.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
6,704
6,402
4868662.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
1,281
1,247
4868688.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
902
867
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
49
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4868697.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
$
1,686
$
1,625
4868757.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
6,437
6,188
4868792.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,178
3,763
4868828.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
9,303
8,809
4868891.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
5,131
4,955
4868920.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
17,811
17,175
4869014.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
798
730
4869082.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,036
3,793
4869107.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
643
623
4869171.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
2,535
1,219
4869198.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,193
4,069
4869249.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
5,732
5,547
4869313.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
2,735
2,625
4869332.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
5,581
5,312
4869477.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,102
3,845
4869512.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
14,830
13,655
4869658.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,796
4,615
4869771.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
4,650
4,479
4869815.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
7,761
5,424
4869839.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
350
336
4869860.SQ.FTS.B,
Zero
Cpn,
6/21/23
...
3,295
3,218
4871719.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,974
3,782
4871723.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,150
3,015
4871747.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
5,880
5,599
4871763.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
1,858
1,532
4871773.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
12,219
11,084
4871779.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
1,551
1,498
4871810.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
7,014
6,133
4871837.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,055
1,455
4871853.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
22,400
17,023
4871859.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,418
3,302
4871878.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,919
2,831
4871894.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
21,467
18,443
4871917.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,323
3,191
4871931.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
711
663
4871993.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
5,825
5,583
4872013.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
766
737
4872014.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
30,946
29,921
4872022.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,109
1,796
4872027.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
11,503
8,173
4872072.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
4,515
3,335
4872091.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
38,309
36,434
4872284.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
7,642
7,300
4872387.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,045
2,928
4872398.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
1,425
1,385
4872421.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,432
3,331
4872437.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,760
1,447
4872442.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
715
618
4872443.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,222
2,134
4872445.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
4,150
3,986
4872459.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
1,929
1,832
4872496.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
5,556
5,362
4872499.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,572
2,488
4872518.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
482
425
4872520.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
706
682
4872526.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
4,365
4,187
4872570.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,279
3,148
4872619.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
341
313
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4872628.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
$
1,570
$
1,507
4872649.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
6,926
6,680
4872656.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,503
3,320
4872666.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
4,218
4,068
4872693.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
9,165
6,395
4872699.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,213
2,128
4872739.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
8,208
7,667
4872752.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,007
1,904
4872788.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,306
2,196
4872802.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
18,668
17,745
4872825.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,836
3,609
4872880.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,280
2,215
4872914.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
8,537
8,241
4872983.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
8,982
5,026
4873140.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
8,531
8,147
4873161.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
15,138
14,550
4873251.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
4,067
3,932
4873297.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
740
532
4873313.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,379
2,002
4873343.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
8,237
7,916
4873371.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
1,683
1,634
4873391.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
3,575
3,353
4873405.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
23,063
22,406
4873433.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
1,994
1,933
4873459.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,794
2,584
4873489.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
2,534
2,431
4873508.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
9,014
8,655
4873558.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
9,053
8,863
4873601.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
5,590
3,170
4873664.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
29,821
28,290
4873742.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
8,243
7,626
4873819.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
462
449
4873829.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
7,014
6,781
4873916.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
5,867
5,587
4873921.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
19,800
18,950
4873955.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
10,762
10,268
4874102.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
7,512
7,200
4874121.SQ.FTS.B,
Zero
Cpn,
6/22/23
...
11,176
10,736
4874157.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
3,873
3,729
4874188.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
2,976
2,864
4874217.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,472
4,297
4874257.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
7,813
7,289
4874324.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
27,519
25,766
4874535.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,393
954
4874544.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
2,485
2,291
4874557.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,442
4,292
4874609.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
13,634
11,130
4874736.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
889
851
4874750.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
563
485
4874751.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
2,012
1,956
4874776.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
6,330
6,106
4874845.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
5,829
5,449
4874894.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,176
1,146
4874912.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,046
1,024
4874928.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,581
4,229
4874998.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
3,946
3,690
4875041.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,299
1,238
4875046.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
12,258
11,792
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4875174.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
$
6,555
$
5,957
4875239.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
473
461
4875253.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
10,794
10,467
4875372.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
16,778
15,706
4875554.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
3,915
3,764
4875613.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,607
4,441
4875644.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,968
4,786
4875681.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
29,410
27,658
4875940.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
15,020
14,361
4876174.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,667
1,567
4876210.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,071
1,005
4876226.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
13,793
12,912
4876299.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
5,257
5,055
4876352.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,012
3,862
4876397.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
4,247
4,059
4876445.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
2,669
2,485
4876467.SQ.FTS.B,
Zero
Cpn,
6/23/23
...
1,850
1,668
4876489.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
21,620
20,162
4876493.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,466
1,293
4876510.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
8,736
8,531
4876536.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
6,314
5,308
4876553.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
40,440
38,917
4876632.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,542
2,471
4876643.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
3,609
3,486
4876658.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,538
2,421
4876659.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
3,147
2,932
4876663.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,097
2,023
4876670.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
8,972
8,112
4876696.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
3,845
3,715
4876740.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,942
1,866
4876741.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,405
1,290
4876745.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
5,193
4,990
4876759.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
7,325
7,046
4876775.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,139
1,110
4876778.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
3,365
2,663
4876785.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
8,563
8,302
4876806.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
10,373
10,017
4876809.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,499
2,414
4876815.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
6,741
6,426
4876827.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
15,803
9,301
4876846.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
20,865
20,066
4876890.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,296
2,149
4876892.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
542
491
4876898.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
3,621
3,507
4876908.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,886
2,821
4876923.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
310
295
4876924.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,710
2,626
4876933.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
22,945
19,607
4876955.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
634
602
4876961.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,304
2,241
4876972.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
294
286
4876974.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
4,224
4,054
4876986.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
8,849
8,536
4876988.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
14,788
14,324
4877001.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
6,820
5,824
4877017.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,837
762
4877022.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
6,713
6,529
4877040.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
6,804
6,613
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4877053.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
$
1,503
$
1,448
4877057.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
788
739
4877059.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,072
913
4877062.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
3,361
3,253
4877067.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,174
580
4877069.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,695
2,586
4877077.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,977
2,883
4877092.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
784
752
4877095.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,472
2,398
4877107.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,678
2,603
4877115.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
759
739
4877121.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
4,130
3,980
4877135.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
4,083
3,967
4877136.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,844
1,767
4877143.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
982
961
4877152.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
4,032
3,628
4877159.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
934
902
4877160.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,561
737
4877161.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
2,729
2,503
4877168.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
12,433
11,988
4877172.SQ.FTS.B,
Zero
Cpn,
6/24/23
...
1,427
1,388
4877197.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
12,010
11,215
4877212.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
4,136
3,964
4877229.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
3,896
3,750
4877237.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
8,164
7,081
4877248.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
964
686
4877253.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
2,717
2,611
4877254.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,572
1,512
4877259.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
3,467
3,343
4877265.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
767
740
4877266.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,087
902
4877269.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,474
1,421
4877276.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,384
1,335
4877279.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
5,075
4,883
4877290.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,458
1,422
4877291.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
14,637
13,196
4877304.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,837
1,731
4877313.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,314
1,245
4877316.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
5,498
4,573
4877323.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,405
1,360
4877336.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
3,002
2,903
4877343.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
338
328
4877345.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
6,229
5,980
4877350.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,110
1,053
4877362.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
4,667
4,513
4877366.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
8,856
8,652
4877375.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
4,658
4,443
4877391.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
406
398
4877394.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
15,841
14,815
4877443.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
12,580
12,053
4877467.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
3,148
3,026
4877479.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
3,993
3,836
4877494.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
9,820
9,316
4877530.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
1,561
1,388
4877534.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
4,338
3,573
4877563.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
16,078
15,502
4877571.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
406
392
4877577.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
3,616
3,494
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
51
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4877586.SQ.FTS.B,
Zero
Cpn,
6/25/23
...
$
14,686
$
13,905
4877623.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
1,932
1,865
4877627.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
4,030
3,867
4877630.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
4,837
4,534
4877643.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
25,949
24,972
4877698.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
16,283
14,591
4877712.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
3,958
3,821
4877730.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
3,574
3,446
4877739.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
1,233
1,197
4877744.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,361
2,274
4877750.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
300
294
4877752.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
14,423
13,845
4877756.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
6,746
6,482
4877781.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,366
2,285
4877801.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
5,728
5,531
4877814.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
1,475
1,429
4877818.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
6,046
5,890
4877840.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
5,640
3,656
4877855.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
7,174
6,874
4877879.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
360
353
4877880.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
1,056
1,026
4877883.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
4,600
4,454
4877891.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
5,783
5,571
4877895.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,996
2,872
4877899.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,809
2,726
4877908.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
623
609
4877910.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,369
2,292
4877917.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,510
2,268
4877920.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
2,357
2,269
4877932.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
1,327
1,299
4877941.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
510
496
4877943.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
5,501
4,857
4877946.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
4,132
3,424
4877958.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
8,242
7,858
4877973.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
3,818
3,698
4877974.SQ.FTS.B,
Zero
Cpn,
6/26/23
...
3,237
3,138
4878000.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,465
4,092
4878060.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
22,983
22,200
4878103.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
796
641
4878145.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,813
4,494
4878271.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
7,832
7,390
4878318.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
9,447
9,147
4878352.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,935
4,794
4878421.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
13,265
12,820
4878504.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,551
3,315
4878517.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
17,914
17,103
4878612.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
5,017
4,830
4878624.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,788
3,643
4878647.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,743
2,654
4878684.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
613
593
4878700.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,553
4,390
4878711.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,278
2,214
4878717.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,442
3,242
4878727.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,939
2,758
4878739.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,538
3,443
4878752.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
6,811
4,789
4878763.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,008
2,922
4878778.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,205
3,073
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4878787.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
$
4,067
$
2,816
4878806.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
9,183
8,908
4878823.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
997
955
4878841.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
10,434
10,214
4878858.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
626
599
4878864.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
10,535
10,176
4878897.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,397
2,313
4878912.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,691
1,622
4878927.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,403
1,344
4878934.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,846
1,750
4878949.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
957
918
4878962.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,327
1,904
4878974.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,673
2,587
4878996.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,534
1,500
4879004.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,651
3,545
4879027.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,910
1,832
4879034.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
22,050
21,305
4879099.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,914
2,833
4879121.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
690
658
4879124.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
6,987
5,521
4879136.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
51,790
49,283
4879195.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
7,887
7,714
4879257.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,188
2,044
4879259.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,221
2,148
4879260.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
11,932
8,103
4879279.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
16,681
15,614
4879328.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,542
2,373
4879332.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
18,453
16,702
4879349.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
7,103
6,845
4879371.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,688
1,454
4879372.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
20,677
19,906
4879455.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
51,156
37,171
4879524.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,047
2,951
4879558.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,803
2,695
4879560.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,608
1,539
4879562.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,229
2,432
4879573.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
404
394
4879583.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
16,325
15,573
4879586.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,042
998
4879607.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
15,483
14,283
4879620.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
5,453
5,236
4879645.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
20,468
19,759
4879681.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
844
819
4879687.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
5,571
5,263
4879701.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
414
405
4879720.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,738
2,637
4879728.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,694
2,273
4879747.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,474
1,437
4879751.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
9,028
8,740
4879757.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,817
4,613
4879784.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
806
785
4879797.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
14,829
14,155
4879828.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,011
2,167
4879835.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
42,634
41,257
4879853.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
8,144
7,880
4879944.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,416
2,128
4879965.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,628
2,384
4880007.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
385
378
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4880017.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
$
431
$
418
4880020.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
9,914
9,661
4880025.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,083
2,031
4880063.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
5,604
4,159
4880065.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,540
2,341
4880067.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
46,366
44,680
4880088.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
5,582
5,420
4880134.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
4,539
4,345
4880161.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,793
3,521
4880171.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
10,654
10,045
4880176.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
1,648
1,616
4880186.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
10,316
9,771
4880200.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,780
3,634
4880212.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
6,452
6,176
4880228.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
19,034
17,175
4880231.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
6,289
5,683
4880260.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
608
558
4880263.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
6,444
6,220
4880271.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
6,587
3,760
4880273.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
35,724
27,284
4880279.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
16,482
11,794
4880336.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
3,671
3,430
4880347.SQ.FTS.B,
Zero
Cpn,
6/27/23
...
2,061
2,019
4880374.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
20,797
19,537
4880509.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
5,837
5,549
4880542.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
831
792
4880560.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,486
2,370
4880583.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
905
886
4880603.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,552
2,393
4880642.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
6,499
6,119
4880760.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
172
169
4880766.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
7,573
7,018
4880840.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
4,928
4,553
4880881.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
274
247
4880887.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
662
642
4880946.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
30,642
29,742
4881216.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
940
893
4881236.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
425
369
4881245.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
3,002
2,925
4881269.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,592
1,528
4881273.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
6,167
5,993
4881332.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,341
2,080
4881352.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,118
2,034
4881387.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,183
2,040
4881407.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,446
2,364
4881418.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
65,064
60,427
4881591.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,941
1,753
4881593.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
18,494
17,755
4881594.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
9,619
9,270
4881595.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,633
2,530
4881624.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
6,107
5,870
4881625.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,362
758
4881632.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
5,202
2,274
4881635.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,746
2,640
4881636.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
169
166
4881640.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,773
1,693
4881642.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
69
68
4881643.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,515
2,452
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4881645.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
$
409
$
399
4881651.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,637
2,536
4881659.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
20,644
19,816
4881661.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
7,169
6,645
4881662.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
17,159
16,593
4881853.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
5,304
5,078
4881866.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
25,043
23,035
4881933.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
809
760
4881955.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
2,869
2,778
4881967.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,872
1,589
4881982.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,869
1,716
4882005.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
3,011
2,913
4882025.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
6,321
6,127
4882047.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
17,178
16,740
4882127.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
35,043
29,920
4882290.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
294
285
4882292.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
3,713
2,967
4882306.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
4,133
3,941
4882320.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
39,260
37,860
4882407.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
7,315
6,907
4882470.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
9,046
8,675
4882526.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
3,329
3,208
4882536.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
5,366
5,187
4882577.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,636
1,575
4882595.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
844
802
4882598.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
5,564
5,369
4882615.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
1,308
1,216
4882617.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
484
470
4882630.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
9,877
8,888
4882632.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
3,749
3,619
4882665.SQ.FTS.B,
Zero
Cpn,
6/28/23
...
7,612
6,720
4884629.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
3,143
3,035
4884654.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
33,754
32,555
4884881.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
2,171
2,081
4884930.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
5,586
4,576
4884971.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
5,442
5,257
4885014.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
9,231
8,888
4885067.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
43,150
41,511
4885480.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
2,915
2,821
4885527.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
10,550
10,111
4885661.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
45,766
40,763
4885876.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
511
453
4886134.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
7,725
7,498
4886221.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
3,401
3,270
4886247.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
968
905
4886253.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
3,941
3,817
4886289.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
255
249
4886304.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
14,049
12,695
4886432.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
661
618
4886439.SQ.FTS.B,
Zero
Cpn,
6/29/23
...
1,730
1,675
4886544.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
42,761
40,057
4886887.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
549
533
4886903.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
2,380
1,143
4886912.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
2,287
1,443
4886937.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
1,103
1,026
4886949.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
4,755
4,587
4887034.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
2,363
2,300
4887115.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
3,876
3,672
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
53
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4887186.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
$
1,392
$
1,334
4887201.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
1,793
1,735
4887212.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
13,071
11,174
4887297.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
30,622
28,902
4887522.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
7,783
7,519
4887591.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
26,267
25,490
4888067.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
1,973
1,846
4888101.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
4,925
4,745
4888177.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
1,440
1,085
4888184.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
4,542
4,231
4888323.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
1,405
1,364
4888343.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
8,243
7,979
4888426.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
275
270
4888441.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
19,144
18,682
4888694.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
10,927
9,312
4888778.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
8,426
8,142
4888956.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
10,158
9,746
4889015.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
5,861
5,630
4889049.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
11,634
11,125
4889117.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
14,136
13,583
4889188.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
279
273
4889195.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
8,283
7,756
4889268.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
981
430
4889279.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
12,211
10,443
4889327.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
4,064
3,686
4889354.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
8,930
8,536
4889414.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
2,197
1,951
4889435.SQ.FTS.B,
Zero
Cpn,
6/30/23
...
6,635
6,131
4889466.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
1,988
1,921
4889477.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
9,704
9,055
4889535.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
1,299
1,264
4889545.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
3,530
3,099
4889557.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
796
775
4889560.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
3,528
3,362
4889574.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
3,975
3,307
4889596.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
2,350
2,251
4889615.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
722
694
4889623.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
17,084
15,056
4889733.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
926
877
4889740.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
1,037
998
4889755.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
906
877
4889768.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
1,399
831
4889776.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
6,735
6,408
4889830.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
4,427
4,202
4889873.SQ.FTS.B,
Zero
Cpn,
7/01/23
...
3,942
3,843
4889906.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
3,438
3,323
4889931.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
1,683
1,627
4889956.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
4,749
4,307
4889983.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
20,000
19,211
4890126.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
1,998
1,914
4890139.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
5,692
5,371
4890163.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
870
852
4890172.SQ.FTS.B,
Zero
Cpn,
7/02/23
...
26,242
25,330
4890365.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
2,645
2,554
4890426.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
2,605
2,520
4890462.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
1,193
1,157
4890474.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
7,986
7,685
4890653.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
9,973
9,514
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4890816.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
$
13,536
$
13,165
4891034.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
4,272
4,136
4891093.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
6,195
5,962
4891170.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
107
105
4891172.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
1,082
985
4891202.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
12,064
9,851
4891296.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
19,423
18,899
4891712.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
7,980
7,527
4891886.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
6,666
5,768
4891943.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
2,380
2,309
4891988.SQ.FTS.B,
Zero
Cpn,
7/03/23
...
18,142
16,923
4892454.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
3,700
3,570
4892554.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
533
502
4892563.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
960
941
4892723.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
10,024
9,770
4892990.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
4,425
4,245
4893066.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
3,265
1,735
4893079.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,309
2,240
4893104.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
1,172
1,060
4893123.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
3,132
2,750
4893158.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
4,424
4,270
4893263.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,590
2,481
4893283.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
4,837
4,655
4893338.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
6,661
4,455
4893393.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,143
1,979
4893457.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
6,565
6,406
4893540.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,022
1,864
4893576.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
6,113
5,908
4893657.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
837
802
4893671.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
7,125
6,675
4893716.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
29,676
28,709
4893974.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
18,202
17,397
4894101.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
19,470
18,011
4894216.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,795
2,698
4894245.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
5,369
5,187
4894316.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
6,333
6,107
4894375.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
5,184
4,925
4894444.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,203
1,806
4894456.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
5,891
4,859
4894507.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
36,558
32,100
4894618.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
1,099
1,068
4894625.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,282
2,227
4894729.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
2,083
2,028
4894821.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
3,215
2,120
4894841.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
5,087
4,936
4894867.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
346
330
4894869.SQ.FTS.B,
Zero
Cpn,
7/04/23
...
11,472
10,897
4894946.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
4,643
4,380
4895058.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
3,710
3,476
4895069.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
1,453
1,423
4895085.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
3,732
3,461
4895122.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
1,392
1,331
4895125.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
10,323
8,523
4895205.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
1,107
897
4895222.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
1,617
1,168
4895229.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
3,665
3,562
4895299.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
2,632
2,569
4895359.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
9,829
9,332
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4895457.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
$
2,732
$
2,632
4895492.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
1,249
710
4895514.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
4,097
3,866
4895760.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
8,220
7,937
4895861.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
45,001
43,058
4896251.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
2,440
2,389
4896337.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
18,234
17,704
4896434.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
997
958
4896484.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
1,221
617
4896493.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
6,872
6,528
4896547.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
7,151
4,984
4896736.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
46,066
40,778
4896978.SQ.FTS.B,
Zero
Cpn,
7/05/23
...
40,728
37,501
4898411.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
7,245
4,778
4898442.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
604
578
4898451.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
1,030
1,005
4898465.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
652
561
4898473.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
6,499
6,295
4898556.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
6,075
5,636
4898572.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
2,557
2,437
4898597.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
5,444
5,244
4898646.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
808
786
4898654.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
3,535
3,429
4898692.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
4,800
4,627
4898715.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
1,448
1,402
4898727.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
7,418
7,123
4898791.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
2,959
2,771
4898852.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
3,072
2,962
4898988.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
1,507
1,441
4899015.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
7,319
7,046
4899103.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
4,829
4,561
4899151.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
5,214
3,816
4899197.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
34,182
33,139
4899472.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
2,107
2,012
4899494.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
3,743
3,599
4899522.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
11,931
11,590
4899617.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
13,011
12,594
4899693.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
11,930
11,083
4899774.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
33,616
30,578
4900097.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
1,325
1,260
4900129.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
2,090
1,964
4900139.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
1,584
1,485
4900158.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
6,928
6,681
4900224.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
7,307
7,049
4900337.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
30,828
29,637
4900586.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
2,507
2,408
4900628.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
1,716
1,644
4900649.SQ.FTS.B,
Zero
Cpn,
7/06/23
...
6,105
5,939
4900806.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
30,108
25,863
4900955.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
29,873
28,470
4901331.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
4,065
3,876
4901374.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
5,309
4,260
4901425.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
1,107
1,076
4901461.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
9,536
8,476
4901701.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
2,264
2,189
4901726.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
17,165
16,615
4902000.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
2,927
2,849
4902028.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
258
253
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4902059.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
$
550
$
541
4902084.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
766
740
4902091.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
1,415
1,350
4902106.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
1,660
1,450
4902110.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
1,680
1,588
4902510.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
17,476
16,995
4902772.SQ.FTS.B,
Zero
Cpn,
7/07/23
...
19,514
18,936
4902887.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
4,102
2,245
4902899.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
2,145
2,040
4902907.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,233
1,046
4902912.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,647
1,584
4902920.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
23,775
22,940
4903054.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,824
1,767
4903069.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
2,950
2,848
4903095.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,328
1,267
4903102.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,742
1,689
4903123.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,915
1,527
4903139.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
3,943
3,838
4903187.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,013
994
4903202.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
2,942
2,679
4903220.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,491
1,445
4903243.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,873
1,821
4903259.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
6,894
6,645
4903294.SQ.FTS.B,
Zero
Cpn,
7/08/23
...
1,977
1,918
4903308.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
7,634
7,427
4903410.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
915
887
4903434.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
947
917
4903444.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
3,440
3,161
4903463.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
8,511
8,208
4903532.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
13,821
13,207
4903607.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
2,297
2,235
4903628.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
10,542
10,167
4903700.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
5,438
5,213
4903727.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
1,325
1,284
4903789.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
3,865
3,732
4903800.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
3,422
3,290
4903824.SQ.FTS.B,
Zero
Cpn,
7/09/23
...
17,809
17,181
4904094.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
9,500
9,208
4904286.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
3,092
3,009
4904362.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
10,737
10,207
4904568.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
639
625
4904578.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
2,608
2,518
4904605.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
1,314
1,287
4904661.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
13,460
12,934
4904789.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
4,192
4,047
4904856.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
1,392
1,359
4904955.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
1,203
1,170
4904984.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
1,693
1,589
4904997.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
5,172
4,998
4905081.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
2,585
2,524
4905112.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
2,385
2,308
4905152.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
993
970
4905176.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
2,274
1,827
4905191.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
15,770
15,121
4905338.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
4,664
4,493
4905364.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
4,939
4,561
4905394.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
4,829
4,669
4905436.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
1,671
1,349
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
55
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4905439.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
$
29,476
$
28,500
4905666.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
5,420
5,184
4905695.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
8,422
7,677
4905754.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
4,086
3,964
4905830.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
3,787
3,625
4905853.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
3,326
3,215
4905888.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
1,406
1,346
4905897.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
27,348
25,239
4906108.SQ.FTS.B,
Zero
Cpn,
7/10/23
...
3,906
3,803
4906229.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
2,443
2,358
4906260.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
24,196
22,452
4906460.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
9,612
9,138
4906549.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
1,547
1,508
4906967.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
739
692
4906979.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
1,298
1,173
4906994.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
2,768
2,423
4907018.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
565
549
4907028.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
2,362
2,293
4907076.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
28,455
27,155
4907364.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
2,006
1,214
4907410.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
1,399
1,355
4907438.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
4,333
4,165
4907478.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
716
700
4907482.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
18,832
18,312
4907734.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
451
435
4907766.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
2,176
2,076
4907869.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
3,862
3,515
4907906.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
4,015
3,904
4907944.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
1,290
1,234
4907960.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
435
424
4907970.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
9,815
9,488
4908030.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
2,289
2,197
4908064.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
54,447
49,493
4908344.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
3,570
3,455
4908401.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
1,603
1,549
4908470.SQ.FTS.B,
Zero
Cpn,
7/11/23
...
32,979
31,841
4908542.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
7,703
6,337
4908597.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
7,886
7,416
4908717.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
4,024
3,663
4908757.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
13,424
12,661
4908919.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
4,192
4,049
4908971.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
66,283
64,068
4909851.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
50,734
49,146
4910473.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
957
928
4910510.SQ.FTS.B,
Zero
Cpn,
7/12/23
...
5,321
5,095
4913000.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
10,376
8,370
4913066.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
15,697
15,100
4913185.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
22,859
15,822
4913344.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
1,127
1,100
4913352.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
545
529
4913360.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
2,802
2,686
4913388.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
3,453
3,299
4913428.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
864
844
4913461.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
3,630
2,953
4913492.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
8,026
7,676
4913609.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
5,577
5,279
4913736.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
617
605
4913780.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
2,392
2,126
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4913797.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
$
4,688
$
4,211
4913822.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
253
247
4913824.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
37,787
36,235
4914351.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
2,916
2,807
4914425.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
6,734
6,251
4914495.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
7,165
6,988
4914576.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
11,157
10,762
4914674.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
1,619
1,367
4914688.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
4,154
4,025
4914708.SQ.FTS.B,
Zero
Cpn,
7/13/23
...
46,224
44,293
4915310.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
1,172
1,131
4915410.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
3,095
2,998
4915427.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
13,487
13,069
4915513.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,472
2,395
4915551.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
7,077
6,919
4915693.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
23,336
22,101
4915905.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,111
2,054
4915946.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
3,426
3,290
4916034.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
6,605
6,438
4916148.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,484
2,398
4916174.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,364
2,124
4916196.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
12,996
12,509
4916330.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
4,764
4,655
4916400.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,088
1,821
4916415.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
1,077
1,021
4916435.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,036
1,936
4916467.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
6,345
6,116
4916628.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
1,197
1,142
4916640.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
3,717
3,298
4916664.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
1,441
1,379
4916673.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
9,554
9,229
4916780.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
10,006
9,325
4916836.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
3,756
3,275
4916851.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
10,105
9,894
4922562.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
11,410
8,515
4922630.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
11,158
10,717
4922742.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
7,085
6,693
4922790.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
790
662
4922808.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
2,852
2,733
4922899.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
1,646
1,251
4922902.SQ.FTS.B,
Zero
Cpn,
7/14/23
...
35,193
33,564
4923000.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
5,421
4,968
4923033.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
1,895
1,793
4923043.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
2,257
2,189
4923052.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
7,788
7,521
4923077.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
1,168
1,137
4923082.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
4,779
4,628
4923106.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
3,763
3,610
4923122.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
5,770
4,936
4923150.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
1,980
1,843
4923162.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
3,055
2,953
4923176.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
4,877
4,695
4923193.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
362
316
4923197.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
1,972
1,908
4923210.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
608
586
4923214.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
5,830
5,535
4923248.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
5,456
5,297
4923292.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
1,366
1,336
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4923318.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
$
2,702
$
2,618
4923335.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
15,697
14,793
4923435.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
2,883
2,794
4923455.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
3,993
3,842
4923483.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
1,208
1,100
4923493.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
330
306
4923497.SQ.FTS.B,
Zero
Cpn,
7/15/23
...
3,908
3,511
4923524.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
2,943
2,855
4923558.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
15,277
14,644
4923627.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
14,223
13,890
4923778.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
6,895
6,016
4923811.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
5,726
5,465
4923851.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
3,860
3,745
4923904.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
17,409
16,349
4924013.SQ.FTS.B,
Zero
Cpn,
7/16/23
...
2,029
1,714
4924028.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
7,778
7,525
4924085.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
9,328
8,652
4924138.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
1,028
971
4924146.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
3,025
2,951
4924184.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
3,302
3,053
4924206.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
21,246
18,908
4924302.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
1,292
1,253
4924346.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
5,034
4,841
4924368.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
10,654
10,271
4924418.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
1,371
1,337
4924432.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
1,871
1,741
4924440.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
5,534
5,354
4924475.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
2,572
2,028
4924493.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
7,274
6,876
4924523.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
1,767
1,700
4924545.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
524
491
4924547.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
16,356
15,684
4924642.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
899
790
4924678.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
3,790
3,640
4924691.SQ.FTS.B,
Zero
Cpn,
7/17/23
...
1,018
993
4924701.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
9,045
8,713
4925046.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
6,294
6,075
4925176.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
9,526
9,099
4925329.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
1,608
1,543
4925358.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
957
933
4925376.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
16,666
15,953
4925497.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
1,246
1,137
4925535.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
22,774
20,668
4925645.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
2,265
2,158
4925660.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
1,666
1,619
4925730.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
2,006
1,913
4925739.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
172
168
4925752.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
2,050
1,951
4925758.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
5,199
4,887
4925780.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
1,424
1,302
4925785.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
3,532
3,135
4925803.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
1,429
1,396
4925819.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
3,993
3,641
4925849.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
2,758
2,544
4925889.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
9,061
8,489
4925959.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
6,282
6,038
4925988.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
9,625
9,225
4926030.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
7,075
6,800
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4926061.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
$
9,126
$
8,473
4926126.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
16,517
16,025
4926230.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
3,883
2,645
4926257.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
3,378
3,295
4926287.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
18,596
14,164
4926383.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
730
704
4926387.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
5,713
4,881
4926397.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
4,324
4,194
4926414.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
2,929
2,853
4926427.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
5,059
4,870
4926453.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
11,470
10,878
4926498.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
3,860
3,755
4926543.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
40,736
38,635
4926799.SQ.FTS.B,
Zero
Cpn,
7/18/23
...
1,830
1,700
4926834.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,316
2,182
4926854.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
5,951
5,551
4926899.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
588
563
4926904.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
5,998
5,760
4926961.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
1,926
1,856
4926974.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
21,879
19,418
4927139.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,560
2,482
4927161.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
4,470
4,281
4927199.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,974
2,820
4927228.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
26,312
25,527
4927610.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
4,595
4,419
4927688.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,325
2,271
4927752.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
506
472
4927759.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
1,293
1,219
4927781.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
11,738
11,263
4927870.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
10,893
10,478
4927995.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
4,478
4,332
4928103.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
3,641
3,308
4928145.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,314
2,243
4928178.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
518
501
4928195.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,086
2,015
4928230.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
1,010
985
4928320.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
4,503
4,375
4928365.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
328
314
4928374.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
11,950
11,588
4928527.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
3,585
3,471
4928571.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
9,556
9,333
4928719.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,441
2,362
4928767.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
6,629
6,498
4928876.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
812
617
4928880.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
3,742
3,594
4928927.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
6,851
6,526
4928990.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
856
806
4928997.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
822
802
4929011.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
2,832
2,527
4929024.SQ.FTS.B,
Zero
Cpn,
7/19/23
...
3,751
2,947
4930391.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
2,777
2,659
4930413.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
36,760
35,011
4930606.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
2,208
2,141
4930620.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
4,422
4,168
4930648.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
2,937
2,799
4930691.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
1,702
1,658
4930698.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
16,372
15,700
4930786.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
9,634
9,266
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
57
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4930917.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
$
2,455
$
2,389
4931016.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
1,018
557
4931020.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
9,424
9,161
4931177.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
1,155
1,122
4931187.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
3,034
2,932
4931247.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
6,889
6,656
4931347.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
4,031
3,870
4931380.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
1,010
861
4931388.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
13,280
10,096
4931539.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
4,523
4,092
4931589.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
11,648
11,360
4931731.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
11,431
11,044
4931818.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
1,641
1,584
4931875.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
3,500
3,388
4931914.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
10,441
9,778
4931993.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
2,297
2,216
4932026.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
686
650
4932029.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
2,491
2,334
4932061.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
4,640
4,498
4932130.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
396
376
4932141.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
5,235
4,823
4932235.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
1,463
1,324
4932315.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
399
371
4932431.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
8,158
7,957
4932569.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
4,389
4,230
4932604.SQ.FTS.B,
Zero
Cpn,
7/20/23
...
9,690
9,147
4932773.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
31,439
27,551
4933233.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
1,602
1,561
4933258.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
3,789
3,487
4933293.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
14,275
12,593
4933426.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
1,367
1,291
4933448.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
9,330
8,953
4933597.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
3,702
3,563
4933889.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
29,476
27,171
4934079.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
17,594
16,967
4934171.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
1,899
1,733
4934178.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
1,114
980
4934201.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
47,268
45,738
4934730.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
5,438
5,095
4934783.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
2,011
1,940
4934794.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
7,287
6,950
4934833.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
9,530
8,731
4934866.SQ.FTS.B,
Zero
Cpn,
7/21/23
...
9,997
9,188
4934957.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
8,843
8,458
4935023.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
2,524
2,449
4935035.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
419
410
4935039.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
882
843
4935046.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
1,669
1,607
4935052.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
354
347
4935057.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
4,869
4,730
4935090.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
650
601
4935095.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
3,343
3,135
4935106.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
4,008
3,907
4935151.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
536
518
4935169.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
1,141
1,108
4935180.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
4,212
4,110
4935232.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
2,313
2,236
4935264.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
1,704
1,532
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4935271.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
$
1,419
$
1,369
4935283.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
29,189
26,598
4935452.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
3,176
3,082
4935485.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
3,589
2,618
4935511.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
474
447
4935513.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
2,064
2,000
4935533.SQ.FTS.B,
Zero
Cpn,
7/22/23
...
3,579
3,408
4935581.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
3,790
3,647
4935609.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
1,475
1,421
4935619.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
20,435
19,780
4935785.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
1,438
1,375
4935794.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
10,994
9,362
4935850.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
5,850
5,250
4935886.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
1,764
1,501
4935889.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
353
336
4935897.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
1,659
1,512
4935902.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
3,308
3,200
4935921.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
3,486
3,036
4935954.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
5,408
4,464
4935990.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
9,052
8,712
4936044.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
3,305
3,169
4936069.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
6,623
4,877
4936108.SQ.FTS.B,
Zero
Cpn,
7/23/23
...
4,533
4,362
4936134.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
5,941
5,717
4936183.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
4,515
4,244
4936266.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
3,391
3,277
4936308.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
1,261
1,232
4936315.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
8,123
7,800
4936369.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
828
798
4936376.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
10,416
10,064
4936519.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
9,238
8,467
4936625.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
9,640
9,318
4936704.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
2,205
2,132
4936732.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
8,392
8,095
4936810.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
1,858
1,785
4936897.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
1,645
1,564
4936911.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
5,194
5,084
4936975.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
7,203
6,902
4937018.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
3,453
3,289
4937066.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
1,235
1,207
4937076.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
9,455
8,886
4937157.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
51,615
48,671
4937490.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
7,003
6,683
4937559.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
42,317
40,666
4937896.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
23,353
22,758
4938397.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
20,229
19,635
4938817.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
2,303
2,215
4938836.SQ.FTS.B,
Zero
Cpn,
7/24/23
...
16,582
15,564
4939001.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
606
591
4939024.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
1,789
1,737
4939230.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
5,731
5,394
4939317.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
2,984
2,918
4939359.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
963
911
4939362.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
2,791
2,664
4939384.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
3,282
3,164
4939413.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
804
755
4939426.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
11,520
10,995
4939507.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
20,310
19,807
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4939730.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
$
8,998
$
8,761
4939841.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
9,465
8,874
4940060.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
2,922
2,832
4940101.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
5,674
5,439
4940192.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
11,896
11,492
4940284.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
8,461
8,104
4940399.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
2,581
2,494
4940438.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
25,660
24,664
4940722.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
93
92
4940724.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
57
56
4940725.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
897
872
4940728.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
454
421
4940732.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
1,219
1,188
4940746.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
6,239
5,804
4940783.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
1,841
1,777
4940809.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
15,167
14,723
4940940.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
2,512
2,440
4940967.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
2,616
2,551
4941033.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
1,501
1,444
4941046.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
13,287
12,928
4941153.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
7,357
7,144
4941224.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
4,401
4,309
4941284.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
3,726
3,414
4941294.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
5,487
5,296
4941329.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
10,828
10,353
4941373.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
1,428
1,389
4941385.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
328
313
4941387.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
1,857
1,786
4941397.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
517
505
4941400.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
427
417
4941411.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
3,294
3,181
4941429.SQ.FTS.B,
Zero
Cpn,
7/25/23
...
5,879
5,475
4941481.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
1,300
1,178
4941491.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
36,470
35,066
4942035.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
3,221
3,120
4942183.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
720
695
4942189.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
5,885
5,669
4942261.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
1,131
751
4942273.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
7,986
7,761
4942359.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
2,361
2,263
4942372.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
20,365
19,711
4942583.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
21,729
21,086
4942797.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
1,974
1,912
4942819.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
4,062
3,923
4942877.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
442
431
4942884.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
10,417
10,004
4942982.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
2,638
2,516
4943004.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
1,864
1,806
4943016.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
4,969
4,810
4943074.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
11,668
10,798
4943197.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
1,183
1,147
4943220.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
34,577
33,156
4943578.SQ.FTS.B,
Zero
Cpn,
7/26/23
...
39,564
37,957
4945069.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
6,240
6,000
4945113.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
5,729
5,481
4945152.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
20,259
19,378
4945265.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
3,164
3,035
4945313.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
32,858
31,349
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4945707.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
$
11,375
$
10,873
4945879.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
720
633
4945880.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
1,184
1,139
4945894.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
3,873
3,739
4945932.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
6,872
6,494
4946006.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
17,428
16,812
4946305.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
23,100
22,164
4946852.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
1,172
1,126
4946893.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
5,980
5,753
4946952.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
1,813
1,712
4947004.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
6,446
6,086
4947177.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
6,126
5,878
4947272.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
1,765
1,700
4947394.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
6,127
5,878
4947535.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
9,595
7,878
4947706.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
15,310
14,322
4947992.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
3,740
3,575
4948049.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
1,308
1,254
4948128.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
2,402
2,309
4948314.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
3,511
3,369
4948432.SQ.FTS.B,
Zero
Cpn,
7/27/23
...
2,750
2,605
4948736.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
7,686
5,042
4948963.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
4,644
4,438
4949043.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
1,846
1,787
4949139.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
1,029
1,003
4949155.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
19,732
18,964
4949573.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
39,263
37,661
4952583.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
13,387
12,656
4953255.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
1,495
1,434
4953260.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
3,110
2,983
4953337.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
32,208
29,658
4953863.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
433
417
4953880.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
3,552
3,287
4953930.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
10,672
8,982
4954038.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
6,374
6,051
4954105.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
4,305
4,024
4954191.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
3,794
3,515
4954238.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
1,168
1,125
4954275.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
11,231
10,774
4954565.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
2,873
2,753
4954636.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
3,478
3,143
4954705.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
8,300
7,835
4954893.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
17,681
16,959
4955003.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
1,713
1,619
4955064.SQ.FTS.B,
Zero
Cpn,
7/28/23
...
20,140
19,324
4955564.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
11,768
11,313
4955637.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
271
263
4955644.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
4,646
4,438
4955672.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
2,799
2,642
4955682.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
293
283
4955692.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
599
582
4955702.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
7,293
6,995
4955747.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
5,804
5,579
4955781.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
4,471
4,237
4955803.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
2,670
2,561
4955814.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
2,904
2,786
4955835.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
3,415
3,279
4955873.SQ.FTS.B,
Zero
Cpn,
7/29/23
...
16,695
16,017
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
59
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4956013.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
$
3,335
$
3,191
4956026.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
3,453
3,317
4956050.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
7,138
6,848
4956088.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
28,347
26,871
4956298.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
516
503
4956317.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
2,169
2,087
4956346.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
376
361
4956351.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,609
1,547
4956362.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,968
1,883
4956375.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,547
1,401
4956381.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,404
1,318
4956395.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,823
1,749
4956409.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,863
1,760
4956427.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
7,103
4,953
4956468.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
906
768
4956476.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
5,121
4,913
4956511.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
4,530
4,255
4956552.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
297
283
4956559.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
4,276
4,130
4956615.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
1,164
1,056
4956625.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
4,795
4,604
4956661.SQ.FTS.B,
Zero
Cpn,
7/30/23
...
16,072
15,531
4957370.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
6,735
6,293
4957806.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
2,000
1,932
4958032.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
4,352
4,189
4958464.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
820
793
4958740.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
5,452
5,245
4959866.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
4,148
3,978
4960133.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
4,212
4,071
4960369.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
16,806
16,128
4960965.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
6,549
6,286
4961201.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
20,563
19,666
4961584.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
1,335
1,281
4961597.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
7,862
7,541
4961752.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
4,004
3,840
4961850.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
8,707
8,382
4962039.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
1,426
1,373
4962078.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
8,947
8,582
4962202.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
1,299
1,227
4962401.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
698
671
4962432.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
34,712
33,291
4962904.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
1,749
1,675
4962922.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
536
508
4962936.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
3,297
3,162
4962955.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
5,239
5,076
4963068.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
5,071
4,890
4963139.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
2,035
1,944
4963170.SQ.FTS.B,
Zero
Cpn,
7/31/23
...
61,941
59,648
4963563.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,520
1,467
4963590.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
4,899
4,698
4963643.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
2,067
1,957
4963659.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
25,010
24,099
4963878.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
10,037
9,691
4964044.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
8,951
8,603
4964204.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
4,677
4,484
4964272.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,675
1,596
4964322.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,231
1,184
4964338.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,192
1,041
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4964354.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
$
1,084
$
1,042
4964374.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
5,075
4,867
4964465.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
390
375
4964472.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
3,879
3,720
4964529.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
2,595
2,498
4964575.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
24,277
23,169
4964861.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
6,209
5,954
4964927.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
2,578
2,471
4964966.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
4,978
4,793
4965012.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
7,154
6,903
4965103.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
984
832
4965121.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
6,256
4,912
4965154.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
18,077
17,261
4965364.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
212
205
4965372.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
20,970
19,799
4965597.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
10,075
9,640
4965667.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
298
289
4965668.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,263
1,217
4965686.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
3,205
3,075
4965713.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,124
1,071
4965729.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
1,562
1,494
4965763.SQ.FTS.B,
Zero
Cpn,
8/01/23
...
18,055
17,414
4966006.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
14,063
13,220
4966108.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
56,465
52,768
4966389.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
1,207
1,157
4966392.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
1,070
1,019
4966398.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
838
777
4966403.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
3,660
3,166
4966444.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
1,651
1,562
4966458.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
4,387
4,209
4966487.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
1,228
1,179
4966524.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
12,743
12,117
4966705.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
6,543
6,274
4966959.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
2,719
1,814
4967002.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
4,016
3,834
4967037.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
3,606
3,453
4967101.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
2,100
2,019
4967129.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
4,982
4,749
4967450.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
914
878
4967479.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
3,979
3,817
4967507.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
9,193
8,779
4967613.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
2,273
2,165
4967689.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
7,501
7,195
4967744.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
15,829
15,221
4967891.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
19,692
17,636
4968046.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
7,462
7,152
4968209.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
8,814
8,342
4968287.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
4,944
4,740
4968338.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
3,100
2,982
4968357.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
1,444
1,388
4968368.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
3,396
3,221
4968450.SQ.FTS.B,
Zero
Cpn,
8/02/23
...
48,129
45,949
4970106.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,839
2,721
4970146.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
7,877
7,547
4970205.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
5,578
5,358
4970306.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
1,942
1,852
4970320.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
3,146
2,998
4970339.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,304
2,166
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4970362.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
$
28,259
$
27,089
4970789.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
1,654
1,592
4970923.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
4,254
4,077
4970972.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,029
1,961
4971021.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,126
1,967
4971058.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
9,318
8,616
4971164.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
7,854
7,575
4971252.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
4,763
4,417
4971305.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
28,382
25,633
4971585.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
5,014
4,821
4971668.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
725
697
4971683.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
7,173
6,887
4971809.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,738
2,624
4971856.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
14,170
13,582
4972020.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
9,865
8,926
4972138.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,547
2,442
4972172.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
2,984
2,754
4972199.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
36,297
33,915
4972586.SQ.FTS.B,
Zero
Cpn,
8/03/23
...
7,917
7,603
4972633.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
2,453
2,351
4972693.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
4,439
4,242
4972751.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
13,215
12,773
4972866.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
5,253
5,051
4972905.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
2,257
2,163
4972925.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
3,514
3,235
4972966.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
1,458
1,366
4972984.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
4,060
3,892
4973032.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
1,305
1,226
4973052.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
13,162
12,446
4973218.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
749
718
4973229.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
7,491
7,181
4973286.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
2,649
2,465
4973539.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
882
845
4973554.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
1,767
1,705
4973605.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
1,751
1,687
4973656.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
1,289
1,231
4973674.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
30,231
28,974
4973952.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
2,935
2,813
4973968.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
6,238
5,965
4974021.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
66,509
63,038
4974841.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
3,649
3,510
4974867.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
1,127
1,046
4974878.SQ.FTS.B,
Zero
Cpn,
8/04/23
...
18,182
17,329
4975020.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
2,765
2,681
4975072.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
9,943
9,219
4975130.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
2,065
1,970
4975145.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
3,198
2,993
4975156.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
16,614
15,798
4975256.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
3,927
3,743
4975279.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
6,745
6,370
4975322.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
1,106
745
4975331.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
605
554
4975338.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
1,221
1,171
4975342.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
3,770
3,481
4975362.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
2,457
2,355
4975376.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
4,339
4,106
4975409.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
809
747
4975446.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
15,665
14,949
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4975551.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
$
4,106
$
3,935
4975567.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
1,971
1,890
4975582.SQ.FTS.B,
Zero
Cpn,
8/05/23
...
3,117
2,790
4975606.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
4,348
4,111
4975642.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
1,515
1,453
4975653.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
27,943
22,443
4975870.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
3,096
2,967
4976046.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
858
829
4976049.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
1,941
1,867
4976072.SQ.FTS.B,
Zero
Cpn,
8/06/23
...
6,921
6,071
4976355.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
4,146
3,802
4976462.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
4,635
4,441
4976561.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
2,621
1,781
4976562.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
921
837
4976571.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
6,732
6,393
4976704.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
12,746
12,122
4976950.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
1,089
1,044
4976975.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
332
316
4976992.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
344
333
4976999.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
345
333
4977037.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
5,142
4,927
4977066.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
27,038
24,721
4977248.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
23,413
22,318
4977684.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
770
737
4977696.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
7,140
6,911
4977802.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
2,766
2,668
4977850.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
5,274
4,721
4977887.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
2,524
2,419
4977905.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
3,766
3,609
4977916.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
10,422
9,342
4978000.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
550
534
4978018.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
2,603
2,483
4978057.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
9,421
8,935
4978793.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
1,005
949
4978801.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
4,687
4,492
4978834.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
3,845
3,639
4978857.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
5,014
4,805
4978904.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
5,792
5,380
4978935.SQ.FTS.B,
Zero
Cpn,
8/07/23
...
8,753
8,416
4978982.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
31,747
30,274
4979270.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,778
2,583
4979273.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
5,465
4,649
4979334.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
733
621
4979341.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
1,852
1,775
4979356.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
1,346
1,299
4979368.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
4,599
4,407
4979694.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
10,098
8,663
4979833.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
5,333
5,110
4979884.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
3,358
3,218
4979955.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
5,289
5,069
4980012.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,367
2,270
4980046.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
28,360
26,793
4980356.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,573
2,471
4980375.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
295
287
4980379.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,729
2,271
4980396.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
11,036
10,420
4980452.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
4,898
4,694
4980465.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
909
754
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
61
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4980469.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
$
563
$
538
4980478.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
1,322
1,258
4980482.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
1,542
1,480
4980502.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
10,560
9,994
4980568.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
1,370
1,306
4980579.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
4,931
4,699
4980617.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
8,013
7,705
4980701.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
5,617
5,397
4980756.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
5,676
5,440
4980769.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
12,544
12,036
4980876.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
3,442
3,244
4980897.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,064
1,974
4980909.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,808
2,700
4980957.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
2,936
2,821
4980976.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
7,003
6,682
4981063.SQ.FTS.B,
Zero
Cpn,
8/08/23
...
23,167
22,281
4981159.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
3,183
2,443
4981214.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
1,208
1,160
4981228.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
6,511
6,196
4981276.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
14,644
13,956
4981400.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
1,609
1,501
4981403.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
10,909
10,275
4981531.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
18,918
18,128
4981755.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
4,626
3,736
4981815.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
4,865
4,639
4981853.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
4,328
3,921
4981893.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
2,501
2,396
4981928.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
4,044
3,874
4981981.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
5,072
4,697
4982021.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
4,847
4,482
4982072.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
7,730
7,333
4982187.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
14,843
13,989
4982386.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
6,970
6,581
4982458.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
2,477
2,386
4982513.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
5,395
5,216
4982568.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
1,458
1,398
4982575.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
7,129
6,904
4982682.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
3,401
3,262
4982738.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
1,209
1,168
4982793.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
32,793
31,423
4983108.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
1,166
1,075
4983113.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
20,535
19,545
4983321.SQ.FTS.B,
Zero
Cpn,
8/09/23
...
1,675
1,608
4984869.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,247
1,195
4984885.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
3,302
3,149
4984935.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,852
2,142
4984948.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,889
1,764
4984958.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
6,413
5,948
4984980.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
592
545
4984983.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,763
1,650
4984998.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,435
2,331
4985007.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
8,169
7,755
4985040.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
5,974
5,721
4985077.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
6,655
6,397
4985145.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
20,886
20,099
4985546.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
8,221
7,878
4985678.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,100
1,054
4985730.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
5,552
5,316
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4985819.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
$
10,082
$
9,671
4985962.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,328
2,231
4985982.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
7,257
6,951
4986074.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
934
891
4986111.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
920
842
4986112.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
731
680
4986119.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,283
2,178
4986141.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,362
1,302
4986175.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,936
2,640
4986257.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
6,102
5,844
4986355.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
9,448
7,095
4986443.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
801
742
4986449.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
5,995
5,664
4986539.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,032
988
4986561.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,359
2,207
4986630.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,291
2,202
4986674.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,092
1,037
4986696.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,287
2,186
4986758.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
539
521
4986779.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
682
659
4986800.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
3,366
3,223
4986863.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
5,023
4,699
4986907.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
4,170
3,995
4986955.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,249
2,156
4986998.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,678
2,569
4987061.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,734
2,486
4987092.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
1,607
1,527
4987112.SQ.FTS.B,
Zero
Cpn,
8/10/23
...
2,446
2,343
4987164.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,197
1,133
4987195.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,453
1,371
4987213.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
10,128
8,457
4987321.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
2,184
2,099
4987357.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,276
1,176
4987375.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,633
1,556
4987388.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,021
978
4987414.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,960
1,807
4987437.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
3,695
3,594
4987494.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
2,392
2,296
4987503.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
19,975
18,884
4987661.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
20,252
19,105
4987931.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
6,013
5,760
4988015.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
3,327
3,202
4988102.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
978
936
4988146.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,182
1,132
4988194.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
2,391
2,301
4988312.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
7,420
6,978
4988723.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,809
1,733
4988816.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
283
274
4988843.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
4,279
4,128
4989079.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
7,832
7,500
4989295.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
701
661
4989352.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
4,860
4,662
4989437.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
152
146
4989442.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,137
1,019
4989451.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,293
1,218
4989516.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
1,308
1,260
4989550.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
3,541
3,429
4989667.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
34,032
32,588
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4990019.SQ.FTS.B,
Zero
Cpn,
8/11/23
...
$
55,622
$
53,280
4990354.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
11,462
10,692
4990394.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
4,402
4,214
4990411.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
2,039
1,908
4990418.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
47,250
40,935
4990588.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
3,958
3,777
4990602.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
4,476
4,285
4990625.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
2,902
2,416
4990639.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
984
823
4990643.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
4,444
4,256
4990668.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
1,864
1,786
4990699.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
1,675
1,565
4990710.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
4,841
4,650
4990738.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
8,475
8,115
4990781.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
932
862
4990783.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
8,745
8,171
4990838.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
15,834
14,947
4990889.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
12,699
11,916
4990943.SQ.FTS.B,
Zero
Cpn,
8/12/23
...
13,995
13,404
4991024.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
5,812
5,566
4991054.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
2,487
2,383
4991071.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
2,774
2,611
4991083.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
615
594
4991184.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
7,947
7,429
4991228.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
9,490
9,057
4991262.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
8,990
8,169
4991303.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
838
527
4991308.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
2,628
2,490
4991331.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
3,255
3,104
4991354.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
8,336
8,006
4991421.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
518
501
4991429.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
799
776
4991437.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
1,245
1,175
4991440.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
5,742
5,498
4991469.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
1,164
1,100
4991474.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
3,144
2,993
4991496.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
7,788
7,415
4991536.SQ.FTS.B,
Zero
Cpn,
8/13/23
...
20,819
19,835
4992005.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
21,825
20,880
4992363.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
20,154
19,028
4992524.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
711
683
4992534.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
9,416
8,449
4992579.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
789
756
4992613.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
392
371
4992621.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
4,482
4,247
4992639.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
1,443
1,380
4992687.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
1,813
1,736
4992698.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
8,126
7,753
4992755.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
2,640
2,483
4992780.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
1,156
1,104
4992796.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
11,827
11,344
4992910.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
2,444
2,348
4992960.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
10,458
9,907
4993022.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
1,926
1,812
4993039.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
3,443
3,132
4993042.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
17,116
15,790
4993190.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
2,398
2,279
4993212.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
2,565
2,418
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4993229.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
$
4,292
$
4,123
4993303.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
4,034
3,864
4993361.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
22,037
20,774
4993701.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
1,252
1,187
4993714.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
977
837
4993828.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
12,547
11,630
4993945.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
6,297
6,033
4994011.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
8,161
7,813
4994055.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
25,453
24,373
4994210.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
5,313
5,064
4994274.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
570
552
4994345.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
3,379
3,219
4994355.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
23,451
22,451
4994476.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
5,868
5,602
4994516.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
3,980
3,811
4994535.SQ.FTS.B,
Zero
Cpn,
8/14/23
...
19,723
18,923
4994634.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
747
715
4994655.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
9,543
9,137
4994746.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
11,114
10,628
4994809.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
1,066
1,028
4994949.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
501
465
4994954.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
961
924
4994973.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
454
406
4994974.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,624
3,472
4995008.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
27,724
25,586
4995212.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
1,984
1,912
4995235.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
5,407
5,047
4995302.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
4,422
4,190
4995431.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
6,247
5,249
4995583.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
5,347
5,115
4996413.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
5,802
5,324
4998009.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,345
3,147
4998343.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
4,487
3,944
4998810.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
4,244
4,063
4999055.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
802
776
4999206.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
28,055
26,861
4999973.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
6,001
5,724
5000187.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
6,104
5,650
5000337.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
4,103
3,928
5000435.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
513
478
5000461.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,046
2,926
5000580.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
4,412
4,238
5000758.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
1,971
1,697
5000795.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
841
799
5000825.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
1,512
1,444
5000869.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
25,656
24,605
5001697.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
14,763
13,818
5002021.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
4,657
4,460
5002123.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,113
2,664
5002242.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
2,555
2,451
5002333.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,475
3,335
5002580.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
534
517
5002591.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
1,752
1,647
5002671.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
739
636
5002863.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
2,011
1,870
5002917.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
5,187
4,975
5003039.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,432
3,291
5003183.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
6,672
6,433
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
63
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5003474.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
$
12,232
$
11,472
5003829.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
3,312
3,171
5003901.SQ.FTS.B,
Zero
Cpn,
8/15/23
...
59,016
56,447
5004219.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
5,332
5,047
5004378.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
3,262
3,124
5004424.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
3,221
2,709
5004476.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
812
729
5004509.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
8,818
8,446
5004686.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
2,167
1,895
5004772.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
2,727
2,604
5004833.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
11,490
11,036
5005109.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
20,891
19,999
5005723.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
26,348
25,317
5006625.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
2,466
2,363
5006699.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
1,364
1,309
5006732.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
454
431
5006740.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
14,957
14,333
5006903.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
1,093
1,044
5006916.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
1,951
1,874
5006932.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
8,379
7,983
5007025.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
4,485
3,934
5007046.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
10,979
10,348
5007134.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
15,364
14,684
5007309.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
1,763
1,710
5007365.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
8,813
8,440
5007486.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
194
188
5007526.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
2,365
2,236
5007574.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
3,846
3,532
5007644.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
459
445
5007682.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
2,423
2,306
5007725.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
1,189
1,151
5007781.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
329
314
5007783.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
1,201
1,109
5007792.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
3,968
3,786
5007933.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
3,177
3,042
5007978.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
902
865
5007997.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
11,638
10,910
5008066.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
13,832
13,283
5008225.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
8,397
8,032
5008325.SQ.FTS.B,
Zero
Cpn,
8/16/23
...
58,270
55,539
5015567.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
2,941
2,836
5015600.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
8,151
7,617
5015663.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
6,362
5,986
5015714.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
5,513
5,059
5015739.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
8,602
7,477
5015820.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
3,394
3,248
5015843.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
3,662
3,504
5015896.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
8,069
7,677
5015943.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
12,553
11,978
5016072.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
8,992
7,609
5016157.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,976
1,920
5016260.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
3,465
3,316
5016318.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
5,601
5,342
5016548.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
2,290
2,143
5016651.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
960
924
5016847.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
5,903
5,649
5017088.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
3,116
2,986
5017327.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
6,106
5,844
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5017447.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
$
1,463
$
1,339
5017473.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,283
1,228
5017490.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,795
1,720
5017513.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,859
1,781
5017533.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
4,967
4,753
5017742.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
7,745
7,413
5017858.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
3,817
3,655
5017920.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,508
1,266
5017936.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
7,554
7,205
5018054.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
853
792
5018062.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
2,848
2,652
5018114.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
17,593
16,830
5018400.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
8,457
5,931
5018527.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,169
1,117
5018549.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,892
1,823
5018646.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
27,446
26,257
5019061.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
6,810
6,484
5019129.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
1,056
989
5019136.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
4,704
4,491
5019199.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
2,346
2,046
5019291.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
496
478
5019310.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
812
710
5019332.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
13,599
13,014
5019624.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
789
734
5019644.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
3,712
3,530
5019704.SQ.FTS.B,
Zero
Cpn,
8/17/23
...
45,394
42,057
5020371.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
8,311
7,862
5020493.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
7,715
6,829
5020597.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
5,260
4,891
5020626.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
83,813
80,192
5022957.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
3,465
3,316
5023114.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
940
888
5023148.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
4,144
3,945
5023301.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
1,954
1,889
5023344.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
1,060
1,018
5023380.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
1,120
1,085
5023411.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
1,253
881
5023445.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
49,636
47,484
5024292.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
23,938
22,790
5024633.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
2,088
1,998
5024677.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
981
912
5024761.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
1,475
1,406
5024778.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
49,165
46,766
5025542.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
25,831
22,171
5025721.SQ.FTS.B,
Zero
Cpn,
8/18/23
...
4,396
4,193
5025752.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
6,448
3,922
5025775.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
4,657
4,458
5025781.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
3,954
3,729
5025789.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
6,306
6,011
5025806.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
26,321
25,014
5025882.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
2,996
2,297
5025892.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
1,174
1,127
5025902.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
18,815
15,175
5025981.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
1,332
1,273
5025991.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
1,342
1,292
5025997.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
9,008
8,237
5026144.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
2,537
2,383
5026160.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
566
542
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5026167.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
$
3,603
$
3,456
5026195.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
2,121
2,057
5026234.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
3,448
3,303
5026249.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
4,678
4,500
5026295.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
4,592
4,409
5026320.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
13,545
12,913
5026383.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
1,958
1,583
5026388.SQ.FTS.B,
Zero
Cpn,
8/19/23
...
1,564
1,430
5026399.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
10,871
10,473
5026482.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
576
553
5026490.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
2,471
2,356
5026514.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
20,171
18,962
5026601.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
20,312
19,308
5026706.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
464
447
5026712.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
9,244
8,844
5026770.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
2,019
1,941
5026819.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
3,295
3,154
5026832.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
1,791
1,683
5026850.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
11,619
11,141
5026923.SQ.FTS.B,
Zero
Cpn,
8/20/23
...
1,882
1,516
5026934.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
3,295
2,539
5026955.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
10,626
9,866
5027018.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
7,943
6,681
5027044.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
1,804
1,746
5027076.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
3,962
3,780
5027110.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
13,364
12,781
5027186.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
15,659
14,977
5027279.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
489
472
5027281.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
2,672
2,539
5027289.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
1,186
1,135
5027296.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
2,242
2,145
5027306.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
3,992
3,480
5027325.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
704
674
5027328.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
2,081
2,013
5027341.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
4,250
4,066
5027359.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
3,564
3,411
5027373.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
8,844
6,865
5027411.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
1,866
1,747
5027427.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
414
400
5027436.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
4,300
4,113
5027458.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
4,219
4,079
5027483.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
2,305
2,197
5027494.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
3,437
3,301
5027532.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
617
593
5027537.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
591
565
5027541.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
9,692
9,214
5027590.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
828
802
5027597.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
8,545
7,447
5027634.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
971
860
5027636.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
1,515
1,454
5027648.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
405
382
5027654.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
2,120
2,035
5027663.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
9,570
9,153
5027718.SQ.FTS.B,
Zero
Cpn,
8/21/23
...
6,678
6,410
5027897.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,787
1,670
5027903.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
2,382
2,236
5027987.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
6,610
6,302
5028116.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,981
1,925
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5028223.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
$
9,649
$
9,229
5028492.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
31,870
30,510
5029672.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
2,843
2,710
5029736.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
18,608
17,723
5029950.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
3,451
3,302
5030021.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
896
816
5030030.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
11,434
10,988
5030129.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
14,526
13,918
5030266.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,682
1,603
5030271.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,620
1,567
5030309.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
4,370
4,180
5030365.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
3,787
3,190
5030392.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
13,163
12,563
5030488.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
705
679
5030574.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
3,346
3,201
5030640.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
10,327
9,879
5030759.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
2,926
2,800
5030831.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
5,666
4,804
5030905.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
6,288
5,940
5030956.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
311
297
5030958.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,303
1,158
5030982.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
4,135
3,972
5031032.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
7,444
7,145
5031131.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,038
963
5031140.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
17,640
16,512
5031253.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
2,597
2,185
5031312.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
6,244
5,897
5031370.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
2,325
2,202
5031402.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
5,393
5,159
5031471.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
5,258
4,305
5031501.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
1,114
1,040
5031503.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
6,409
5,769
5031582.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
7,072
6,822
5031708.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
6,921
6,624
5031823.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
3,708
3,558
5031880.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
4,459
4,289
5031927.SQ.FTS.B,
Zero
Cpn,
8/22/23
...
9,428
9,018
5031999.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
6,977
6,676
5032102.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
21,641
20,417
5032361.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
8,078
7,677
5032478.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
41,582
39,594
5032908.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
774
739
5032929.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,062
974
5032944.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,181
1,123
5032959.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,323
1,226
5032980.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
2,425
2,310
5033014.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
3,159
2,998
5033100.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,853
1,772
5033148.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
220
213
5033157.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
5,373
5,118
5033875.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,751
1,527
5033901.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,959
1,874
5033958.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,967
1,881
5033997.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
10,376
9,908
5034149.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
3,687
2,548
5034192.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
7,003
6,769
5034297.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
6,299
5,735
5034354.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
15,471
14,798
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
65
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5034599.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
$
63,551
$
60,820
5035256.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
3,375
3,114
5035300.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
15,679
14,921
5035401.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
39,493
37,687
5035652.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,452
1,389
5035669.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
3,374
3,103
5035700.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
1,011
965
5035713.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
66,506
63,446
5036110.SQ.FTS.B,
Zero
Cpn,
8/23/23
...
5,769
5,226
5037757.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
6,757
6,470
5037826.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
3,845
3,640
5037853.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
1,609
1,540
5037877.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
61,779
59,014
5038445.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
2,866
2,721
5038467.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
12,778
12,216
5038650.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
5,592
5,346
5038681.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
54
52
5038686.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
11,884
11,145
5038825.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
5,954
5,692
5038904.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
12,861
10,187
5039021.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
7,821
7,374
5039090.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
104,054
89,812
5039744.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
2,571
2,463
5039798.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
20,286
19,482
5040032.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
10,575
9,919
5040123.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
7,806
7,379
5040180.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
4,943
4,726
5040203.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
11,934
10,814
5040277.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
3,713
3,550
5040322.SQ.FTS.B,
Zero
Cpn,
8/24/23
...
64,418
61,744
5040636.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,361
2,262
5040665.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
4,325
4,156
5040733.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,266
2,166
5040777.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,673
1,583
5040793.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
835
787
5040803.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
893
856
5040822.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
4,674
4,447
5040879.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
14,613
12,980
5041019.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,564
2,452
5041029.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
12,655
12,097
5041133.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
3,175
3,036
5041179.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,157
2,080
5041226.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,188
1,101
5041229.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,472
1,410
5041301.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
4,840
4,651
5041405.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
4,946
4,718
5041520.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
9,535
9,114
5041812.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,120
2,017
5041851.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,943
1,858
5041867.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
13,956
13,350
5042043.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,202
1,134
5042065.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,476
2,186
5042089.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,487
1,391
5042096.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
1,129
1,045
5042100.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
39,058
37,139
5042475.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
3,634
3,478
5042510.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
5,482
5,170
5042569.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
5,360
5,150
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5042646.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
$
9,044
$
8,615
5042751.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
773
732
5042757.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
45,846
43,592
5043092.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
4,319
4,132
5043125.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,097
1,943
5043135.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
3,055
2,883
5043156.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,300
2,182
5043177.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
4,042
3,864
5043195.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
8,183
7,821
5043267.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
733
677
5043269.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
730
696
5043273.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
2,898
2,770
5043279.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
3,548
3,357
5043297.SQ.FTS.B,
Zero
Cpn,
8/25/23
...
37,918
34,105
5043339.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
17,175
15,932
5043417.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
2,711
2,601
5043427.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
21,810
20,852
5043500.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
1,789
1,727
5043522.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
549
526
5043528.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
1,699
1,623
5043542.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
10,897
10,222
5043602.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
12,129
11,594
5043665.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
767
731
5043674.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
2,918
2,775
5043696.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
8,827
8,436
5043747.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
8,009
7,656
5043783.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
2,385
2,019
5043793.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
13,011
12,043
5043874.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
2,072
2,000
5043897.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
1,872
1,779
5043906.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
3,565
3,363
5043938.SQ.FTS.B,
Zero
Cpn,
8/26/23
...
16,703
15,884
5044057.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
2,553
2,428
5044067.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
1,320
1,260
5044089.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
6,518
6,231
5044123.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
2,322
2,209
5044135.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
1,524
1,447
5044146.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
2,007
1,891
5044162.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
2,057
1,923
5044176.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
1,561
1,096
5044184.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
1,122
1,078
5044194.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
5,057
4,802
5044227.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
4,251
4,063
5044254.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
423
407
5044258.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
27,083
25,477
5044401.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
390
367
5044404.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
2,202
1,649
5044414.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
16,297
15,359
5044518.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
2,089
1,972
5044530.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
9,341
8,879
5044585.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
3,045
2,914
5044623.SQ.FTS.B,
Zero
Cpn,
8/27/23
...
13,707
13,099
5044781.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
574
519
5044794.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
8,892
7,895
5044990.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
7,541
7,222
5045305.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
5,028
4,806
5045429.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
5,132
4,918
5045548.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
521
364
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
66
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5045551.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
$
5,116
$
4,906
5045662.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
2,040
1,733
5045690.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
1,388
1,324
5045729.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
1,965
1,879
5045751.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
6,105
5,800
5045863.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
1,125
1,001
5045875.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
5,731
5,483
5045925.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
4,122
3,916
5045958.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
8,582
7,950
5046040.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
5,338
5,129
5046136.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
6,601
6,287
5047248.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
359
342
5047252.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
7,593
7,180
5047314.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
802
744
5047321.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
10,304
9,718
5047433.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
2,582
2,391
5047455.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
3,320
3,080
5047492.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
22,850
21,771
5047878.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
2,680
2,560
5047895.SQ.FTS.B,
Zero
Cpn,
8/28/23
...
2,229
2,118
5047948.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
23,027
22,006
5048071.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
3,953
3,726
5048081.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
4,164
3,875
5048099.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
8,546
8,179
5048154.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
3,613
3,460
5048173.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
7,215
6,918
5048221.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
5,024
4,763
5048246.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
13,463
12,875
5048359.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
2,963
2,842
5048398.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
21,992
19,082
5048558.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
2,015
1,833
5048582.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
11,980
11,170
5048731.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
6,485
6,218
5048815.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,068
946
5048817.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,572
1,457
5048866.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
2,797
2,652
5048925.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
25,030
23,891
5049555.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,065
1,018
5049567.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
8,275
7,858
5049670.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,680
1,589
5049681.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
969
823
5049703.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,744
1,667
5049736.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
895
850
5049743.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
14,559
13,931
5049867.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,252
1,179
5049875.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
2,817
2,688
5049899.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,062
975
5049908.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
869
835
5049911.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
988
948
5049924.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
784
755
5049935.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
7,630
6,757
5050020.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,138
1,071
5050035.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
2,816
2,691
5050062.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
3,337
3,189
5050110.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,222
1,131
5050115.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
14,752
14,169
5050339.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,653
1,574
5050358.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
1,274
1,213
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5050391.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
$
561
$
506
5050394.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
14,712
12,010
5050533.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
15,690
15,022
5050682.SQ.FTS.B,
Zero
Cpn,
9/01/23
...
57,672
55,136
5051201.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
8,670
8,285
5051259.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
6,209
5,914
5051278.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
10,244
9,778
5051319.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
2,141
2,038
5051326.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
3,628
3,391
5051342.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
10,865
10,385
5051410.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
4,345
4,152
5051453.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
14,560
13,840
5051523.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
3,738
3,524
5051538.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
848
793
5051546.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
52,879
50,201
5051850.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
4,981
4,708
5051869.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
1,456
1,382
5051875.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
37,978
36,039
5052260.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
10,317
9,862
5052420.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
2,181
2,070
5052448.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
30,010
28,335
5052776.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
1,369
1,294
5052788.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
14,329
13,810
5052934.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
10,494
9,972
5053149.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
2,065
1,984
5053176.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
2,041
1,955
5053205.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
17,591
15,282
5053322.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
2,943
2,812
5053352.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
11,415
10,783
5053488.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
17,063
16,395
5053677.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
11,174
10,451
5053755.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
8,851
8,458
5053830.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
4,861
4,616
5053860.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
15,615
14,833
5053940.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
1,850
1,456
5053949.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
1,485
1,394
5053958.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
3,142
3,003
5053995.SQ.FTS.B,
Zero
Cpn,
9/02/23
...
32,422
30,987
5055853.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
4,931
4,641
5055908.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
9,521
9,121
5055994.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
6,284
5,712
5056046.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,908
2,719
5056065.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
688
655
5056067.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
6,042
5,635
5056086.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,317
1,267
5056094.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
7,416
7,103
5056154.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
6,292
5,999
5056227.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,089
1,048
5056268.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
7,860
7,510
5056366.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,489
1,338
5056393.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
19,871
18,881
5056732.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
5,986
5,739
5056855.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
4,158
3,644
5056932.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
942
886
5056944.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
3,881
3,660
5057030.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,463
2,367
5057053.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
293
284
5057063.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,212
2,115
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
67
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5057097.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
$
1,882
$
1,797
5057130.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
22,486
21,330
5057308.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,352
1,276
5057338.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
945
903
5057343.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,806
2,535
5057364.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
27,421
26,376
5057830.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
3,178
3,002
5057847.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
722
697
5057853.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
14,050
13,517
5058129.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
4,613
4,401
5058157.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,395
2,262
5058187.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
5,192
4,895
5058247.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
5,347
4,999
5058332.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
3,914
3,739
5058369.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,879
1,792
5058383.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,050
990
5058390.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,515
1,438
5058414.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,297
2,180
5058435.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
14,706
13,971
5058570.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
1,180
1,137
5058589.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
2,937
2,709
5058612.SQ.FTS.B,
Zero
Cpn,
9/03/23
...
14,309
13,624
5058908.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
22,253
21,244
5059195.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
2,921
2,817
5059251.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
15,297
14,623
5059326.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
13,939
11,494
5059404.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
3,228
3,065
5059427.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
5,420
5,049
5059478.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
8,473
7,763
5059516.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
28,682
27,496
5059877.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
1,114
1,078
5059902.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
22,487
21,531
5060096.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
3,887
3,713
5060140.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
2,078
2,005
5060164.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
2,747
2,578
5060181.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
3,965
3,788
5060261.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
3,307
3,166
5060312.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
21,604
20,644
5060513.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
3,614
3,447
5060578.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
7,743
7,056
5060628.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
590
561
5060641.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
37,879
35,715
5060881.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
6,142
5,867
5060970.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
6,583
6,103
5061028.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
11,851
11,308
5061190.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
11,202
10,693
5061317.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
12,614
11,978
5061493.SQ.FTS.B,
Zero
Cpn,
9/04/23
...
6,776
6,462
5061524.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
1,368
1,306
5061544.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
24,410
23,168
5061643.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
10,428
9,941
5061685.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
2,268
2,168
5061692.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
9,147
8,737
5061739.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
3,773
3,612
5061760.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
40,954
39,133
5062017.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
16,282
15,460
5062120.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
1,423
1,378
5062138.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
3,903
3,724
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5062161.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
$
1,783
$
1,716
5062178.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
3,204
3,044
5062197.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
1,215
899
5062206.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
14,610
13,868
5062281.SQ.FTS.B,
Zero
Cpn,
9/05/23
...
3,661
3,480
5062300.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
3,069
2,867
5062318.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
2,107
1,924
5062332.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
1,358
1,302
5062340.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
3,352
2,984
5062352.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
2,335
2,078
5062364.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
23,907
22,752
5062512.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
4,171
3,944
5062559.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
1,822
1,730
5062578.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
11,893
11,254
5062652.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
6,061
5,498
5062685.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
2,255
2,154
5062693.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
2,278
2,056
5062710.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
6,261
5,910
5062755.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
2,338
2,223
5062781.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
1,039
1,004
5062791.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
3,208
3,079
5062831.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
988
935
5062835.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
2,722
2,594
5062850.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
717
681
5062859.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
600
564
5062871.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
3,018
2,729
5062904.SQ.FTS.B,
Zero
Cpn,
9/06/23
...
25,886
24,724
5063597.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,030
980
5063620.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
8,618
8,231
5063741.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
8,243
7,549
5063823.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,637
2,487
5063860.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
11,265
9,810
5064000.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
5,000
4,780
5064065.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
4,466
4,299
5064129.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
19,788
18,788
5064390.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
7,694
7,356
5064502.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,817
1,637
5064535.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
4,280
4,078
5064600.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,648
2,534
5064634.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
11,853
11,259
5064729.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
10,307
9,910
5064839.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
4,830
4,576
5064875.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
27,690
26,492
5065106.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
3,565
3,405
5065119.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
8,632
8,233
5065166.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,023
984
5065174.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,915
2,721
5065196.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
15,080
14,389
5065301.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,269
1,208
5065309.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,899
2,703
5065322.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,500
2,394
5065329.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,114
1,061
5065349.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,978
1,733
5065377.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,801
2,675
5065404.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,687
1,999
5065416.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
5,442
5,197
5065443.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
4,707
4,496
5065503.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
802
768
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
68
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5065516.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
$
8,014
$
7,644
5065573.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
3,656
3,332
5065622.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
672
638
5065637.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
768
644
5065655.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
5,080
4,727
5065689.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
8,062
7,530
5065724.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
388
376
5065735.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
8,255
7,910
5065780.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
4,006
3,803
5065803.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
17,858
17,062
5065887.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,498
1,400
5065900.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
7,050
6,559
5065939.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
907
853
5065943.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
1,538
1,446
5065946.SQ.FTS.B,
Zero
Cpn,
9/07/23
...
2,008
1,846
5066006.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
1,407
1,291
5066029.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
3,922
3,776
5066072.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
2,492
2,200
5066115.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
12,251
11,189
5066183.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
4,556
4,354
5066197.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
1,080
1,028
5066204.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
35,356
33,565
5066377.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
23,603
22,571
5066659.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
738
686
5066664.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
3,824
3,651
5066705.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
15,549
14,855
5066901.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
3,287
3,146
5066925.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
4,275
4,058
5066972.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
2,355
2,201
5066994.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
3,026
2,901
5067030.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
25,665
24,315
5067225.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
2,520
1,794
5067242.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
9,994
9,423
5067314.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
2,104
2,020
5067365.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
5,063
4,785
5067403.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
12,645
11,545
5067489.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
1,435
1,374
5067540.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
2,413
2,330
5067618.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
4,244
4,068
5067645.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
3,933
3,699
5067663.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
1,644
1,542
5067694.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
11,458
10,551
5067798.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
20,381
19,272
5067945.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
2,430
2,294
5067962.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
3,606
3,307
5067982.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
14,213
13,629
5068096.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
9,025
8,618
5068158.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
6,487
5,895
5068189.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
53,094
50,279
5068551.SQ.FTS.B,
Zero
Cpn,
9/08/23
...
29,687
28,348
5068694.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
4,604
4,407
5068754.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
3,626
3,425
5068779.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
9,053
8,634
5068844.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
1,557
1,405
5068857.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
5,389
5,158
5068945.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
4,331
4,136
5069047.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
1,315
1,222
5069050.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
911
875
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5069076.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
$
4,397
$
4,173
5069116.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
15,192
14,273
5069265.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
356
343
5069279.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
675
621
5069292.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
10,040
9,456
5069434.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
686
653
5069462.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
15,896
13,613
5069608.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
9,604
9,015
5069692.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
885
840
5069695.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
20,660
18,768
5069848.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
532
500
5069856.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
2,219
2,119
5069886.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
9,762
9,267
5069952.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
6,918
6,595
5070005.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
426
412
5070016.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
10,853
9,673
5070132.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
4,104
3,836
5070178.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
16,726
15,598
5070321.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
1,317
1,237
5070339.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
2,721
2,447
5070366.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
2,481
2,369
5070395.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
2,944
2,783
5070434.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
754
697
5070445.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
2,988
2,853
5070480.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
1,795
1,712
5070497.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
2,754
2,612
5070538.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
9,646
9,209
5070638.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
6,613
5,781
5070695.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
8,539
8,152
5070759.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
5,236
4,993
5070803.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
8,663
8,218
5070878.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
1,307
1,241
5070882.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
919
885
5070900.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
15,264
14,552
5071139.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
39,174
35,944
5071324.SQ.FTS.B,
Zero
Cpn,
9/09/23
...
12,019
11,335
5072967.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,728
2,318
5072985.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
33,995
32,440
5073091.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
684
646
5073100.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,650
5,392
5073115.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
4,764
4,506
5073131.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
7,724
6,872
5073149.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,216
2,114
5073159.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
4,021
3,452
5073171.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
21,758
20,552
5073257.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,570
5,261
5073312.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
755
729
5073323.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
617
594
5073332.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
11,530
10,624
5073420.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,976
2,394
5073441.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,171
4,903
5073510.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
8,335
7,803
5073629.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
18,913
18,028
5073819.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
1,507
1,448
5073827.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,072
1,948
5073853.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,718
4,910
5073901.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
15,852
15,130
5074091.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
522
471
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
69
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5074102.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
$
1,433
$
1,370
5074149.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,323
5,080
5074213.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
9,049
8,638
5074289.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
18,845
17,033
5074442.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
1,939
1,558
5074455.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,906
2,654
5074507.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
1,304
1,239
5074517.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,581
5,275
5074559.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
1,398
1,334
5074562.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
9,059
8,548
5075119.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,268
2,150
5075166.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
4,842
4,644
5075206.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
742
712
5075210.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
10,840
10,262
5075254.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
5,045
4,831
5075307.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
1,388
1,329
5075317.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
3,689
3,522
5075354.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
12,311
11,573
5075424.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
2,710
2,370
5075477.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
6,266
5,969
5075548.SQ.FTS.B,
Zero
Cpn,
9/10/23
...
8,200
7,812
5075619.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
8,781
8,251
5075743.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
5,537
5,328
5075842.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
4,567
4,245
5075887.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
6,349
5,947
5075923.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
28,838
27,497
5076057.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
5,573
5,317
5076126.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
4,151
3,961
5076150.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
4,228
4,034
5076201.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
16,605
15,843
5076391.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
20,290
18,905
5076644.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
4,128
3,934
5076679.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
8,828
8,375
5076760.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
26,320
24,987
5077146.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
1,699
1,627
5077170.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
2,332
2,223
5077184.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
41,181
39,013
5077566.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
686
661
5077583.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
5,036
4,836
5077648.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
2,073
1,820
5077670.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
910
873
5077673.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
3,192
3,055
5077727.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
3,671
3,440
5077768.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
6,362
6,073
5077828.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
4,474
3,802
5077855.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
1,586
1,431
5077870.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
3,849
3,656
5077899.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
5,333
5,016
5077949.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
424
397
5077967.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
5,653
5,394
5078033.SQ.FTS.B,
Zero
Cpn,
9/11/23
...
19,814
18,881
5078212.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
11,193
10,535
5078291.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
2,447
2,337
5078306.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
1,240
1,180
5078313.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
488
453
5078321.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
2,051
1,957
5078343.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
2,923
2,563
5078362.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
5,274
5,032
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5078374.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
$
7,869
$
7,367
5078408.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
1,189
1,147
5078425.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
3,001
2,749
5078439.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
4,846
4,637
5078467.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
8,930
8,446
5078514.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
4,830
4,570
5078544.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
1,489
1,383
5078558.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
2,513
2,393
5078579.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
4,329
4,078
5078604.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
26,212
24,253
5078751.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
1,698
1,518
5078771.SQ.FTS.B,
Zero
Cpn,
9/12/23
...
4,909
4,731
5078910.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
13,392
11,981
5079003.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
1,190
1,146
5079023.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
7,158
6,827
5079074.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
6,071
5,835
5079117.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
855
794
5079122.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
20,915
19,954
5079259.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
5,457
4,996
5079299.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
6,423
6,129
5079342.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
11,561
10,954
5079422.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
12,489
11,847
5079504.SQ.FTS.B,
Zero
Cpn,
9/13/23
...
5,041
4,801
5079599.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
16,274
15,588
5080042.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
976
894
5080059.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
7,816
7,457
5080157.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
4,666
4,453
5080222.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
2,169
2,031
5080255.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
735
635
5080265.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
1,564
1,488
5080284.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
4,050
3,756
5080351.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
808
772
5080366.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
340
330
5080376.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
58,009
54,883
5080816.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
4,936
4,670
5080875.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
3,708
3,535
5080936.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
12,732
11,966
5080993.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
5,126
4,827
5081050.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
3,327
3,166
5081079.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
2,557
2,427
5081105.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
9,730
8,370
5081144.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
8,986
8,544
5081227.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
28,894
26,953
5081484.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
4,830
4,575
5081512.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
11,405
10,806
5081575.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
5,438
5,189
5081612.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
2,569
2,432
5081615.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
972
868
5081619.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
12,431
11,961
5081691.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
5,594
4,914
5081723.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
3,456
3,206
5081755.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
5,142
4,858
5081783.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
6,922
6,414
5081854.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
7,856
6,903
5081884.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
4,886
4,662
5081950.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
12,564
11,048
5082026.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
2,074
1,949
5082039.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
1,486
1,406
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5082045.SQ.FTS.B,
Zero
Cpn,
9/14/23
...
$
23,887
$
22,602
5082283.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
2,953
2,780
5082320.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
13,858
13,224
5082432.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
5,218
4,786
5082470.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
3,070
2,832
5082495.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
9,109
8,503
5082548.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
1,750
1,668
5082571.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
37,770
35,904
5083191.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
550
524
5083212.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
4,812
4,560
5083247.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
18,128
17,302
5083406.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
15,926
15,193
5083575.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
1,067
999
5083580.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
2,628
2,496
5083613.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
1,109
1,058
5083630.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
17,295
15,937
5083832.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
5,658
5,398
5083873.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
15,521
14,538
5084132.SQ.FTS.B,
Zero
Cpn,
9/15/23
...
95,264
90,877
5084771.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
4,053
3,196
5084823.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
1,051
1,003
5084843.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
5,525
5,270
5084899.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
2,084
1,997
5084934.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
33,929
30,144
5085081.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
3,029
2,783
5085105.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
6,078
5,732
5085137.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
1,763
1,664
5085148.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
15,887
14,693
5085337.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
7,416
6,877
5085496.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
697
655
5085501.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
4,158
3,956
5085589.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
9,981
8,925
5085736.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
8,751
8,330
5085852.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
387
365
5085858.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
1,308
1,214
5085865.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
29,886
28,379
5086181.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
1,433
1,365
5086206.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
3,197
2,964
5086243.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
4,636
4,377
5086311.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
2,336
2,214
5086335.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
10,301
9,761
5086423.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
2,570
2,463
5086465.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
2,093
2,007
5086497.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
3,641
3,476
5086589.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
37,541
34,783
5087007.SQ.FTS.B,
Zero
Cpn,
9/16/23
...
11,351
10,828
5088406.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
2,585
2,417
5088456.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
3,540
3,258
5088492.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
4,968
4,728
5088556.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
576
554
5088565.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
4,951
4,623
5088590.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
10,901
9,838
5088691.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
2,963
2,825
5088721.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
29,854
28,393
5089238.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
9,659
9,167
5089439.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
5,250
4,800
5089493.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
20,510
18,679
5089731.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
3,189
3,022
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5089773.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
$
1,443
$
1,309
5089802.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
806
765
5089812.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
7,137
6,790
5089873.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
5,146
4,907
5089962.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
407
381
5089971.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
1,333
1,259
5090017.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
8,727
8,390
5090172.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
1,157
1,104
5090178.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
1,898
1,748
5090193.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
5,314
5,067
5090254.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
565
542
5090268.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
510
478
5090272.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
4,138
3,931
5090340.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
459
440
5090354.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
3,669
3,499
5090396.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
19,672
17,755
5090712.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
21,686
19,825
5090950.SQ.FTS.B,
Zero
Cpn,
9/17/23
...
35,464
33,806
5091194.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
2,413
2,293
5091263.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
3,877
3,697
5091326.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
9,054
8,424
5091446.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
3,263
2,985
5091483.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
1,358
1,246
5091530.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
2,093
1,845
5091551.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
3,812
3,566
5091720.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
970
902
5091730.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
1,584
1,466
5091744.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
5,305
4,991
5091830.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
2,764
2,599
5091912.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
32,304
29,943
5092317.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
5,647
5,347
5092421.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
967
922
5092432.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
6,286
5,902
5092547.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
4,903
4,641
5092599.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
1,456
1,388
5092632.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
5,317
5,063
5092689.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
3,940
3,764
5092737.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
7,129
6,464
5092850.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
8,531
8,136
5092982.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
25,853
24,761
5093265.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
1,186
1,121
5093274.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
13,597
12,688
5093436.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
31,094
29,491
5093765.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
431
412
5093775.SQ.FTS.B,
Zero
Cpn,
9/18/23
...
7,789
7,426
5093829.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
469
449
5093833.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
7,374
7,018
5093863.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
12,096
11,456
5093917.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
11,098
9,912
5093969.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
2,779
2,655
5093985.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
3,432
3,272
5093999.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
2,465
2,347
5094016.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
4,609
4,394
5094040.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
2,527
2,424
5094058.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
8,802
8,273
5094101.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
15,722
14,987
5094152.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
1,219
1,169
5094158.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
4,925
4,726
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
71
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5094195.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
$
18,307
$
17,450
5094295.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
2,169
2,060
5094313.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
1,971
1,878
5094324.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
3,070
2,384
5094340.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
2,654
2,469
5094361.SQ.FTS.B,
Zero
Cpn,
9/19/23
...
7,174
6,630
5094396.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
911
863
5094400.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
5,601
5,353
5094427.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
3,382
3,200
5094443.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
1,779
1,618
5094456.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
1,693
1,565
5094467.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
3,726
3,505
5094492.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
1,924
1,747
5094501.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
1,423
1,358
5094510.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
1,278
1,214
5094514.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
957
913
5094518.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
6,512
6,207
5094544.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
8,421
8,027
5094595.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
2,536
2,386
5094610.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
12,219
11,648
5094691.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
2,230
2,078
5094697.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
936
852
5094706.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
817
782
5094712.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
5,748
5,482
5094741.SQ.FTS.B,
Zero
Cpn,
9/20/23
...
8,381
7,990
5094892.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,878
3,698
5094988.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,676
3,505
5095053.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,320
1,247
5095103.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
24,400
23,195
5095522.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
8,875
8,462
5095583.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
424
409
5095585.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
6,166
5,644
5095627.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
6,485
6,020
5095687.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
12,912
12,317
5095789.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
9,809
8,777
5095858.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
10,412
9,834
5095917.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
29,748
27,697
5096086.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,469
2,325
5096101.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
13,024
11,067
5096186.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,791
2,669
5096206.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
11,881
11,327
5096285.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,266
3,095
5096291.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,582
1,455
5096304.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
4,011
3,757
5096332.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
21,980
20,968
5096521.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,309
2,173
5096535.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,253
1,185
5096541.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,494
3,331
5096555.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
6,602
6,294
5096628.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
10,237
9,381
5096674.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
18,361
16,744
5096785.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,915
1,779
5096794.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
677
525
5096798.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
5,654
5,388
5096823.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
903
855
5096827.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,410
2,299
5096836.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,706
1,637
5096866.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
14,642
13,638
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5096932.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
$
4,772
$
4,555
5096951.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
6,816
6,499
5096988.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
6,198
5,856
5097030.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
17,355
16,423
5097121.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
8,281
7,922
5097160.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,848
1,763
5097170.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
14,827
14,051
5097245.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
472
450
5097251.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,894
2,686
5097267.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,461
1,240
5097273.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,346
2,217
5097281.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
5,708
5,444
5097291.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,588
3,399
5097309.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,862
1,768
5097318.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
25,369
24,130
5097416.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
16,510
15,762
5097498.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
4,751
4,506
5097510.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,322
2,207
5097531.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
11,197
10,658
5097579.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,823
3,644
5097591.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
2,295
2,171
5097611.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,181
3,033
5097615.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
3,894
3,713
5097630.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
7,306
6,871
5097666.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
4,517
4,276
5097690.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,774
1,689
5097697.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
4,810
4,535
5097715.SQ.FTS.B,
Zero
Cpn,
9/21/23
...
1,122
1,038
5097753.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
9,497
9,063
5097834.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
17,875
16,841
5097942.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
2,573
2,456
5097961.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
4,239
3,980
5097979.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
1,360
1,296
5097995.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
11,416
10,729
5098070.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
16,386
15,634
5098234.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
1,500
1,430
5098259.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
4,145
3,731
5098275.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
7,417
6,798
5098325.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
898
818
5098347.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
492
470
5098348.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
1,884
1,775
5098382.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
976
931
5098389.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
18,027
17,162
5098530.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
9,050
7,734
5098609.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
13,500
12,870
5098699.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
10,535
9,911
5098757.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
2,934
2,714
5098792.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
7,811
7,445
5098834.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
12,612
12,021
5098974.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
18,627
17,507
5099135.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
5,708
5,441
5099157.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
4,545
4,333
5099181.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
1,066
1,011
5099183.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
1,511
1,343
5099198.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
27,071
25,852
5099469.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
18,404
17,471
5099664.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
1,083
1,039
5099673.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
16,114
15,452
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5099742.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
$
4,348
$
4,148
5099762.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
40,122
37,833
5100019.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
4,186
3,895
5100055.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
8,333
7,665
5100108.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
8,622
7,891
5100163.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
6,651
6,342
5100187.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
2,225
2,125
5100194.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
2,772
2,588
5100220.SQ.FTS.B,
Zero
Cpn,
9/22/23
...
20,714
19,718
5100418.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,389
5,169
5100485.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
6,357
5,799
5100517.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,073
1,956
5100527.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,480
2,327
5100540.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
6,012
5,661
5100566.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
11,343
10,810
5100653.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
4,689
4,394
5100682.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
4,414
4,182
5100725.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
9,503
8,954
5100815.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,474
2,342
5100868.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
724
681
5100874.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
1,633
1,565
5100897.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,300
5,050
5100957.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
7,900
7,499
5101039.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,757
5,424
5101147.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
4,892
4,687
5101225.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,925
2,774
5101288.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
370
358
5101296.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
39,945
38,218
5101673.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
1,955
1,793
5101683.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
3,393
3,091
5101700.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
8,915
8,289
5101793.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
4,038
3,715
5101835.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
456
431
5101843.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
4,091
3,874
5101887.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,385
2,273
5101913.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,508
5,185
5101948.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
521
496
5101953.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
3,086
2,852
5101988.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
19,974
19,101
5102216.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
1,080
1,014
5102222.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,428
2,221
5102249.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,602
2,489
5102277.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
6,376
6,122
5102366.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,296
4,978
5102409.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
1,379
1,295
5102418.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
1,605
1,494
5102427.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
540
515
5102435.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,614
5,018
5102472.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
5,977
5,601
5102539.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
2,858
2,728
5102556.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
21,343
19,913
5102716.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
1,037
978
5102720.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
3,801
3,609
5102730.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
9,731
9,275
5102756.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
978
909
5102758.SQ.FTS.B,
Zero
Cpn,
9/23/23
...
10,190
9,705
5104358.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
9,181
8,610
5104437.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
10,276
9,593
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5104499.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
$
33,573
$
32,077
5104948.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
33,680
31,938
5105828.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
904
848
5105857.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
6,922
6,397
5105914.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
2,974
2,781
5105963.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
2,369
2,201
5106011.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
5,154
4,891
5106104.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
4,474
4,189
5106141.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,576
1,468
5106170.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
13,322
12,405
5106328.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,298
1,192
5106337.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
7,566
7,028
5106421.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
8,492
7,777
5106504.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,986
1,896
5106521.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,325
1,242
5106538.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
17,369
16,273
5106672.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,431
1,333
5106683.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,398
1,306
5106699.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,860
1,740
5106706.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
2,009
1,859
5106724.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
31,324
29,468
5106855.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,397
1,229
5106861.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
5,703
5,243
5106892.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
2,287
2,132
5106923.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
7,289
7,000
5107004.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
31,038
29,442
5107213.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,742
1,636
5107221.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
5,622
5,251
5107264.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
6,112
5,791
5107339.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
1,704
1,558
5107353.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
2,750
2,551
5107404.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
3,817
3,476
5107431.SQ.FTS.B,
Zero
Cpn,
9/24/23
...
21,683
20,611
5107560.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
6,913
6,555
5107683.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
3,806
3,632
5107774.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
3,183
2,976
5107835.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
4,957
4,790
5107921.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
17,610
16,475
5108160.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
10,443
10,002
5108302.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
3,522
3,277
5108349.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
2,200
2,089
5108376.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
3,195
2,960
5108447.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
5,965
5,589
5108497.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
3,687
3,518
5108535.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
5,632
5,280
5108607.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
657
588
5108622.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
6,473
6,033
5108730.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
2,965
2,761
5108745.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
4,539
4,375
5108786.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
1,495
1,356
5108816.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
6,695
6,165
5108900.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
20,893
19,586
5109145.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
2,790
2,553
5109191.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
2,604
2,434
5109209.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
4,340
3,908
5109269.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
4,952
4,725
5109345.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
1,654
1,552
5109366.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
7,665
7,265
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
73
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5109454.SQ.FTS.B,
Zero
Cpn,
9/25/23
...
$
66,274
$
61,247
5110097.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
3,741
3,520
5110117.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
775
731
5110122.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
6,267
5,977
5110167.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
3,772
3,543
5110200.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
4,179
3,907
5110240.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
1,313
1,222
5110254.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
2,563
2,366
5110270.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
4,280
3,948
5110314.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
9,617
9,038
5110389.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
2,595
2,401
5110410.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
10,186
9,720
5110481.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
15,778
14,663
5110636.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
4,996
4,742
5110673.SQ.FTS.B,
Zero
Cpn,
9/26/23
...
5,361
4,962
5110725.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
6,682
6,380
5110762.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
1,552
1,438
5110779.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
4,001
3,761
5110811.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
7,987
7,495
5110863.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
8,253
7,821
5110923.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
584
550
5110925.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
9,880
9,285
5110983.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
3,783
3,574
5111012.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
1,699
1,577
5111024.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
5,084
4,766
5111063.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
6,524
6,067
5111103.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
2,775
2,601
5111117.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
1,090
1,024
5111129.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
11,695
10,992
5111247.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
6,707
6,234
5111290.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
2,791
2,627
5111314.SQ.FTS.B,
Zero
Cpn,
9/27/23
...
10,808
10,056
5111520.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
32,447
30,249
5112172.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
14,440
13,655
5112318.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
16,139
15,283
5112445.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
2,115
2,005
5112464.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
3,961
3,706
5112539.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
2,083
1,954
5112558.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
2,542
2,425
5112573.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
5,249
5,010
5112611.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
3,406
3,178
5112638.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
9,905
9,455
5112702.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
3,483
3,198
5112732.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
2,385
2,311
5112746.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
4,321
4,119
5112797.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
4,372
4,087
5112852.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
2,067
1,913
5112862.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
1,426
1,299
5112874.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
9,845
9,254
5112955.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
10,104
9,367
5113058.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
6,473
5,939
5113141.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
11,106
10,268
5113266.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
3,843
3,538
5113337.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
12,233
11,339
5113494.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
974
906
5113505.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
6,828
6,392
5113574.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
32,234
31,008
5113882.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
30,268
28,553
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5114206.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
$
2,191
$
2,055
5114225.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
748
681
5114229.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
16,307
15,351
5114361.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
1,362
1,256
5114378.SQ.FTS.B,
Zero
Cpn,
9/28/23
...
6,435
5,997
5114504.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
11,030
10,272
5114611.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
13,594
12,750
5114687.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
5,572
5,367
5114738.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
19,339
18,162
5114897.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
1,600
1,480
5114930.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
12,203
11,469
5115107.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
9,902
9,447
5115241.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
3,434
3,202
5115314.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
8,413
8,027
5115456.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
17,279
16,357
5115737.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
5,690
5,395
5115799.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
3,915
3,626
5115847.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
2,219
2,103
5115892.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
489
438
5115911.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
10,707
10,003
5116007.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
2,481
2,323
5116044.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
2,105
1,954
5116095.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
403
351
5116096.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
3,341
3,185
5116126.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
1,220
1,115
5116150.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
9,059
8,590
5116225.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
10,652
9,970
5116412.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
2,129
1,975
5116448.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
13,335
12,908
5116541.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
1,664
1,556
5116547.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
10,172
9,560
5116610.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
2,937
2,728
5116653.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
1,196
1,073
5116662.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
13,494
12,565
5116803.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
3,351
3,140
5116874.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
8,986
8,409
5116990.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
18,073
16,945
5117163.SQ.FTS.B,
Zero
Cpn,
9/29/23
...
45,599
43,219
5117214.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,987
1,863
5117238.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
12,614
11,778
5117309.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,334
1,245
5117315.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
45,677
42,320
5117643.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
13,794
12,895
5117743.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,513
5,150
5117787.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
3,972
3,713
5117854.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,322
2,162
5117897.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,424
4,220
5117949.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,802
5,445
5118035.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
13,525
12,913
5118159.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
11,839
11,158
5118288.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
13,710
12,859
5118372.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
8,976
8,568
5118441.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,864
1,748
5118470.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
10,594
9,836
5118558.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
6,100
5,822
5118620.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,620
4,259
5118686.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
25,753
24,122
5118857.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,446
2,292
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5118869.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
$
16,918
$
15,844
5118998.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,881
2,695
5119011.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,124
1,052
5119023.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,062
3,819
5119054.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,253
2,073
5119060.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,037
979
5119074.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,631
4,327
5119109.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,912
1,792
5119131.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,034
3,776
5119154.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
10,737
10,102
5119201.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,310
2,151
5119221.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
6,147
5,772
5119262.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,540
1,426
5119267.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
9,913
9,578
5119331.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
8,165
7,793
5119369.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
13,751
13,280
5119392.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
585
541
5119401.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,936
2,778
5119405.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
48,627
45,544
5119608.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,962
5,695
5119655.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,563
2,447
5119665.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
6,818
6,393
5121536.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,045
1,952
5121555.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,391
2,240
5121599.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
6,333
5,953
5121637.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
551
514
5121651.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
26,411
25,022
5122084.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,616
1,509
5122141.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,020
1,875
5122180.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,325
2,176
5122204.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,337
4,990
5122269.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
12,970
12,103
5122424.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,765
5,501
5122484.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
9,348
8,435
5122619.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,438
1,362
5122643.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
805
742
5122658.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
27,183
25,547
5122947.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,134
1,066
5122968.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
8,709
8,077
5123057.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
25,617
23,998
5123267.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
13,741
12,851
5123471.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
3,071
2,909
5123495.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,379
4,145
5123531.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,731
2,605
5123561.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,807
5,444
5123613.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,406
1,305
5123647.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,665
4,327
5123759.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
5,726
5,415
5123887.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
16,241
15,308
5124058.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
3,448
3,208
5124084.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
4,956
4,651
5124174.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
15,966
14,996
5124284.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,331
1,245
5124299.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
2,501
2,348
5124324.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
10,043
9,355
5124425.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
7,769
7,175
5124518.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
21,145
19,985
5124679.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,012
933
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5124703.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
$
1,169
$
1,070
5124708.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
1,316
1,214
5124747.SQ.FTS.B,
Zero
Cpn,
9/30/23
...
9,422
8,731
5124897.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
97,868
93,299
5126309.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
8,609
8,366
5126420.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
1,403
1,299
5126438.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
30,735
29,073
5126826.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
423
366
5126842.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
3,138
3,009
5126889.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
19,813
18,556
5127131.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
9,641
9,025
5127322.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
15,068
14,158
5127649.SQ.FTS.B,
Zero
Cpn,
10/01/23
..
4,096
3,836
5127713.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
1,141
1,039
5127728.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
1,960
1,876
5127740.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
3,546
3,380
5127769.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
13,576
12,704
5127847.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
813
755
5127850.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
2,466
2,301
5127873.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
2,586
2,437
5127892.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
7,938
7,520
5127929.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
1,543
1,426
5127935.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
2,800
2,671
5127947.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
25,232
23,644
5128072.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
1,501
1,390
5128084.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
2,371
2,251
5128107.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
20,133
18,921
5128235.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
6,350
5,977
5128284.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
13,765
13,039
5128360.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
5,977
5,659
5128393.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
3,393
3,132
5128413.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
1,788
1,680
5128425.SQ.FTS.B,
Zero
Cpn,
10/02/23
..
5,384
5,000
5128469.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
8,122
7,652
5128518.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
670
600
5128523.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
2,380
2,236
5128537.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
629
576
5128541.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
9,131
8,506
5128593.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
4,715
4,433
5128624.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
5,715
5,276
5128661.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
756
704
5128669.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
982
923
5128680.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
549
519
5128685.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
564
528
5128693.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
5,254
4,937
5128715.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
12,661
11,835
5128766.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
1,453
1,372
5128778.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
5,987
5,535
5128805.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
6,120
5,717
5128828.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
12,177
11,615
5128913.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
7,741
7,147
5128949.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
1,681
1,523
5128956.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
2,434
2,276
5128974.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
2,024
1,930
5128981.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
3,867
3,620
5129001.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
3,990
3,720
5129023.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
4,051
3,805
5129036.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
840
781
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5129044.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
$
1,245
$
1,156
5129055.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
10,834
10,181
5129127.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
6,328
5,994
5129165.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
14,180
13,525
5129235.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
1,997
1,844
5129252.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
1,184
1,110
5129262.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
5,462
5,094
5129282.SQ.FTS.B,
Zero
Cpn,
10/03/23
..
15,254
14,168
5129642.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
19,934
18,491
5129868.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,323
2,148
5129900.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
10,760
10,107
5130126.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
370
345
5130132.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
1,229
1,162
5130156.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
1,301
1,245
5130190.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
4,150
3,960
5130234.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
13,745
13,020
5130328.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,782
2,613
5130358.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
9,979
9,527
5130416.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
10,308
9,642
5130497.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
1,230
1,131
5130503.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
13,216
12,623
5130601.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
4,146
3,918
5130628.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
21,157
19,555
5130799.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
5,427
5,090
5130823.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
7,124
6,562
5130908.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
1,315
1,198
5130922.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
6,372
6,037
5130982.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
8,235
7,790
5131037.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
20,159
18,497
5131196.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,168
2,008
5131231.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
622
582
5131238.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
9,510
8,905
5131308.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
1,130
994
5131324.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
14,715
13,789
5131400.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
549
519
5131408.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
6,016
5,693
5131509.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
3,435
3,293
5131529.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
3,945
3,652
5131540.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
8,872
8,369
5131575.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
9,194
8,548
5131621.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
5,250
4,972
5131656.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
678
628
5131669.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
30,622
28,669
5131790.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
21,275
20,025
5131875.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
972
904
5131884.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
7,567
7,103
5131917.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
14,817
13,887
5132006.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,436
2,247
5132023.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
4,479
4,223
5132062.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
19,924
18,874
5132153.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,783
2,565
5132163.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,089
1,947
5132178.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
1,828
1,728
5132203.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
2,504
2,299
5132209.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
31,370
29,732
5132431.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
52,050
48,898
5132720.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
4,659
4,364
5132753.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
10,142
9,616
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5132826.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
$
726
$
671
5132845.SQ.FTS.B,
Zero
Cpn,
10/04/23
..
67,337
62,194
5132902.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,528
2,366
5132918.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,387
3,175
5132946.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,118
2,943
5132957.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,141
1,058
5132960.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,445
1,338
5132976.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
8,259
7,680
5133006.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
6,710
6,219
5133063.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,720
2,513
5133092.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,273
1,174
5133104.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
8,790
8,232
5133155.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,189
2,054
5133166.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
10,967
10,460
5133219.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
4,194
3,900
5133254.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
74,713
69,959
5133903.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,200
1,142
5133917.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,276
1,209
5133935.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,896
3,653
5133961.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,913
1,785
5133965.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
12,971
12,046
5134057.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,089
2,893
5134104.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
4,102
3,834
5134137.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
6,139
5,744
5134185.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,039
1,850
5134215.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
6,932
6,333
5134297.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,753
1,641
5134302.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
287
239
5134308.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
7,664
7,155
5134349.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,586
1,471
5134361.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
10,747
10,215
5134465.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
606
567
5134478.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
10,217
9,636
5134549.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,726
3,488
5134577.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,962
3,693
5134589.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,487
1,378
5134599.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
22,502
21,429
5134740.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
16,430
15,172
5134884.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,575
2,456
5134908.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,897
1,775
5134911.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
16,285
15,521
5135043.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,341
2,180
5135063.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
9,509
9,071
5135101.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
18,601
17,822
5135239.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
3,075
2,915
5135269.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
49,441
46,848
5135680.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
2,570
2,408
5135710.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,056
981
5135722.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
1,769
1,641
5135733.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
9,233
8,573
5135797.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
34,479
32,047
5136001.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
10,690
10,183
5136023.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
9,770
9,323
5136068.SQ.FTS.B,
Zero
Cpn,
10/05/23
..
25,947
24,316
5136113.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,693
3,421
5136166.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,558
3,330
5136182.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,917
1,775
5136194.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,014
2,826
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5136216.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
$
1,053
$
984
5136224.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
23,230
21,690
5136378.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,272
1,205
5136389.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
8,362
7,896
5136453.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,519
2,333
5136483.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,441
2,270
5136529.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
10,178
9,559
5136627.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,361
3,153
5136658.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,490
1,390
5136667.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
6,927
6,607
5136782.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
455
418
5136784.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,270
2,952
5136863.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,864
1,750
5136872.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,038
2,874
5136931.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,688
3,517
5136979.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
703
657
5136996.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
631
593
5137004.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,656
3,426
5137074.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
925
878
5137080.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,759
1,647
5137092.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,060
985
5137100.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,112
1,032
5137109.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
5,632
5,340
5137161.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
9,914
9,214
5137273.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,653
2,530
5137295.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,303
2,196
5137315.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
699
653
5137325.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
5,509
5,001
5138049.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
65
–
5138072.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
6,083
5,695
5138099.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
5,129
4,648
5138173.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
12,261
11,607
5138297.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
13,214
12,259
5138360.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
3,747
3,497
5138393.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
5,126
4,867
5138431.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
4,020
3,759
5138470.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
8,958
8,326
5138578.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,130
2,000
5138599.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
10,151
9,435
5138679.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
10,018
9,371
5138741.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
8,482
7,777
5138802.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
9,098
8,438
5138860.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,179
2,054
5138869.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
6,726
6,285
5138917.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,076
999
5138928.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
7,559
7,146
5139033.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
4,633
4,391
5139115.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
1,291
1,214
5139145.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
7,606
7,114
5139219.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
17,856
17,028
5139377.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
2,595
2,440
5139424.SQ.FTS.B,
Zero
Cpn,
10/06/23
..
73,685
69,226
5141482.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
23,054
21,588
5141675.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
1,035
983
5141701.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
723
680
5141708.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
17,240
16,329
5141807.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
5,737
5,343
5141861.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
10,236
9,526
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5141945.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
$
1,762
$
1,659
5141962.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
4,132
3,883
5142028.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
2,023
1,896
5142049.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
2,551
2,383
5142085.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
3,633
3,490
5142133.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
1,556
1,449
5142175.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
4,090
3,849
5142267.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
1,237
1,144
5142327.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
5,498
5,129
5142404.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
7,510
7,162
5142507.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
6,940
6,613
5142602.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
7,342
6,851
5142724.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
8,372
7,985
5142830.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
5,748
5,363
5142915.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
8,505
7,964
5143050.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
18,839
17,609
5143292.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
4,651
4,359
5143352.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
3,678
3,436
5143378.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
2,684
2,499
5143386.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
22,954
21,549
5143582.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
9,329
8,733
5143837.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
4,013
3,751
5143977.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
19,504
18,281
5144216.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
1,655
1,555
5144252.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
41,140
38,612
5144774.SQ.FTS.B,
Zero
Cpn,
10/07/23
..
9,178
8,604
5144849.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
12,214
11,541
5144972.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
2,826
2,677
5144989.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
1,499
1,391
5144998.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
9,035
8,491
5145086.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
2,203
2,023
5145120.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
31,337
29,414
5145573.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
8,301
7,911
5145692.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
5,048
4,739
5145760.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
5,040
4,780
5145818.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
2,240
2,093
5145849.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
742
699
5145899.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
2,268
2,101
5145947.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
7,410
7,068
5146065.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
3,554
3,330
5146087.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
13,728
12,712
5146269.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
1,533
1,462
5146313.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
4,482
4,243
5146356.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
36,865
34,547
5146675.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
8,965
8,436
5146747.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
4,085
3,928
5146790.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
8,229
7,999
5146884.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
2,747
2,568
5146937.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
5,559
5,195
5146977.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
25,014
23,854
5147207.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
1,617
1,487
5147226.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
11,664
11,125
5147315.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
5,117
4,808
5147343.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
9,638
9,017
5147415.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
2,280
2,101
5147455.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
3,004
2,779
5147486.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
1,977
1,853
5147509.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
5,344
5,045
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
77
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5147632.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
$
13,955
$
13,073
5147724.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
3,229
3,021
5147754.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
8,020
7,450
5147855.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
15,370
14,308
5148014.SQ.FTS.B,
Zero
Cpn,
10/08/23
..
17,011
15,976
5148101.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
1,001
952
5148107.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
9,686
9,067
5148137.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
5,627
5,217
5148166.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
3,462
3,238
5148177.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
37,520
35,776
5148337.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
5,558
5,189
5148379.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
14,525
13,564
5148474.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
535
491
5148479.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
10,354
9,875
5148527.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
4,729
4,440
5148555.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
3,487
3,251
5148588.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
18,639
17,703
5148711.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
18,896
18,020
5148850.SQ.FTS.B,
Zero
Cpn,
10/09/23
..
2,334
2,226
5148859.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
8,549
8,028
5148917.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
2,051
1,879
5148941.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
4,418
4,106
5148963.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
35,107
32,879
5149129.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
2,290
2,145
5149144.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
3,995
3,748
5149160.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
822
771
5149170.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
1,369
1,291
5149178.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
13,927
13,195
5149269.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
1,202
1,118
5149276.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
1,101
1,025
5149285.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
1,392
1,305
5149296.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
26,562
24,865
5149434.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
8,109
7,554
5149477.SQ.FTS.B,
Zero
Cpn,
10/10/23
..
34,781
32,419
5149943.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
3,364
3,182
5149994.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
11,887
11,259
5150113.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
9,480
8,973
5150288.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
1,031
956
5150319.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
12,509
11,927
5150453.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
3,164
2,948
5150470.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
9,515
8,832
5150537.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
2,440
2,276
5150547.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
29,365
27,587
5150755.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
555
497
5150775.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
14,026
13,163
5150947.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
14,730
13,839
5151046.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
1,427
1,328
5151058.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
22,803
21,305
5151251.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
1,003
959
5151254.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
21,829
20,793
5151467.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
2,457
2,296
5151485.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
6,407
5,904
5151644.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
953
901
5151656.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
53,071
49,541
5152221.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
13,381
12,756
5152276.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
5,488
5,200
5152302.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
6,655
6,233
5152326.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
4,357
4,091
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5152334.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
$
14,803
$
14,391
5152396.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
2,315
2,169
5152412.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
16,056
15,201
5152519.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
38,721
36,275
5152767.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
5,829
5,559
5152822.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
35,829
33,832
5152971.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
9,329
8,711
5153086.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
5,518
5,165
5153125.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
1,994
1,859
5153136.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
4,879
4,562
5153148.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
6,244
5,935
5153173.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
1,264
1,195
5153179.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
421
401
5153190.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
21,201
19,854
5153353.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
2,511
2,329
5153369.SQ.FTS.B,
Zero
Cpn,
10/11/23
..
15,537
14,554
5153453.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
10,856
10,276
5153589.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
5,281
4,942
5153611.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
16,849
15,786
5153784.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
3,651
3,446
5153808.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
12,033
11,465
5153874.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
7,985
7,615
5153956.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
3,494
3,282
5153988.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
3,687
3,515
5154008.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
1,249
1,174
5154015.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
10,699
10,020
5154100.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
7,016
6,570
5154181.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
2,829
2,677
5154217.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
3,114
3,016
5154262.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
2,561
2,441
5154314.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
4,772
4,464
5154404.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
6,987
6,579
5154543.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
5,265
5,019
5154612.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
1,575
1,473
5154631.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
9,472
8,865
5154724.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
14,336
13,672
5154882.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
2,112
2,014
5154907.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
6,727
6,316
5154961.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
4,452
4,122
5154987.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
5,920
5,550
5155036.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
7,241
6,782
5155122.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
2,649
2,513
5155141.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
1,147
1,075
5155148.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
30,215
28,306
5155471.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
68,346
63,761
5156010.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
6,232
5,944
5156084.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
2,045
1,963
5156124.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
1,864
1,778
5156156.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
13,166
12,746
5156296.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
31,389
29,929
5156655.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
6,231
5,912
5156702.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
6,886
6,417
5156782.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
10,437
9,985
5156875.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
12,650
12,013
5156973.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
6,728
6,318
5157001.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
30,599
29,162
5157137.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
4,272
4,056
5157152.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
7,797
7,321
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5157233.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
$
2,048
$
1,889
5157254.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
3,450
3,213
5157279.SQ.FTS.B,
Zero
Cpn,
10/12/23
..
14,628
13,954
5157398.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
3,692
3,545
5157456.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
3,359
3,124
5157473.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
5,358
5,109
5157521.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
2,405
2,226
5157547.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
14,938
13,928
5157746.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
5,937
5,566
5157821.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
6,011
5,627
5157875.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
607
569
5157884.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
15,175
14,089
5158067.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,020
960
5158082.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,421
1,310
5158098.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
5,486
5,171
5158164.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,101
1,052
5158173.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
5,082
4,746
5158213.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,387
4,119
5158265.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,327
1,234
5158274.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
2,711
2,532
5158290.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,997
4,765
5158325.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
8,765
8,233
5158425.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
26,836
25,145
5158685.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
3,284
3,076
5158706.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
38,583
35,874
5159072.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
2,947
2,786
5159090.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
19,203
17,953
5159226.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,819
4,591
5159258.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
2,685
2,515
5159278.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,157
3,888
5159304.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,485
4,277
5159356.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
13,074
12,273
5159439.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,046
3,786
5159464.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,788
1,676
5159477.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
4,318
4,036
5159501.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
3,099
2,909
5159523.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
7,853
7,324
5159580.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
11,484
10,806
5159643.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
2,635
2,447
5159675.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
6,507
6,090
5159726.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
65,262
61,292
5160199.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,200
1,112
5160219.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
5,011
4,627
5160236.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
26,936
25,242
5160471.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
3,140
2,920
5160501.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
552
503
5160507.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,856
1,762
5160522.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
1,234
1,156
5160531.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
2,165
2,075
5160539.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
17,371
16,257
5160629.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
5,634
5,262
5160651.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
7,030
6,586
5160717.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
809
693
5160744.SQ.FTS.B,
Zero
Cpn,
10/13/23
..
83,992
80,079
5162509.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
68,839
64,448
5162935.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
5,630
5,238
5162955.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,420
2,280
5162987.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
1,948
1,811
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5163000.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
$
10,381
$
9,896
5163098.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
6,577
6,175
5163155.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
10,726
10,190
5163289.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
1,980
1,827
5163312.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
21,867
20,530
5163509.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
11,656
10,912
5163616.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
23,064
21,618
5163807.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
37,907
35,352
5164173.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
877
804
5164174.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,555
2,390
5164196.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
6,619
6,192
5164254.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,939
3,709
5164302.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,852
2,668
5164324.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
7,781
7,308
5164410.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
34,441
32,391
5164779.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,808
3,574
5164800.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
31,463
29,459
5165105.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
4,513
4,228
5165156.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
6,515
6,171
5165213.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,838
2,654
5165244.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,265
3,057
5165268.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,284
3,098
5165288.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
9,520
8,974
5165378.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
10,036
9,319
5165433.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
1,940
1,804
5165457.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
6,441
6,141
5165511.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
12,534
11,744
5165652.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,351
3,194
5165695.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,140
2,928
5165726.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
1,224
1,143
5165737.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,471
3,228
5165754.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,990
2,797
5165799.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
4,183
3,877
5165875.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
5,473
5,183
5165914.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,131
1,983
5165958.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
2,020
1,881
5165986.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
3,440
3,280
5166049.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
11,891
11,261
5166156.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
7,637
7,164
5166223.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
1,712
1,599
5166227.SQ.FTS.B,
Zero
Cpn,
10/14/23
..
75,098
71,601
5166521.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
7,464
7,066
5166615.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
11,466
10,971
5166705.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,463
1,348
5166730.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,307
1,222
5166751.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
9,960
9,117
5166817.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,706
4,392
5166841.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,094
3,877
5166870.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
8,392
8,130
5166956.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,746
1,655
5166972.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
38,266
35,832
5167334.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
972
911
5167335.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,975
4,627
5167401.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
2,009
1,864
5167427.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
965
898
5167455.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,575
1,507
5167500.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
6,729
6,372
5167604.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
13,059
12,456
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
79
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5168098.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
$
2,717
$
2,549
5168205.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,006
3,759
5168289.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
6,023
5,596
5168411.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,684
1,590
5168454.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,362
4,075
5168510.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
3,208
3,058
5168563.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
7,221
6,884
5168680.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,358
4,093
5168750.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
9,227
8,639
5168842.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
6,847
6,641
5168932.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
3,245
3,010
5168977.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
8,334
7,758
5169045.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
3,427
3,179
5169102.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
50,338
47,113
5169673.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
27,695
26,006
5169921.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
3,383
3,105
5169928.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
4,661
4,477
5169962.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
5,424
5,095
5170009.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,420
1,304
5170019.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
3,117
2,888
5170034.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
10,853
10,160
5170150.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
1,459
1,363
5170153.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
3,345
3,125
5170173.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
55,988
53,052
5170777.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
8,080
7,567
5170843.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
16,245
15,235
5170976.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
12,073
11,510
5171068.SQ.FTS.B,
Zero
Cpn,
10/15/23
..
68,469
64,122
5171614.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
845
795
5171620.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
2,028
1,903
5171635.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
2,986
2,796
5171656.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
1,012
954
5171665.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
7,696
7,206
5171725.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
6,676
6,325
5171759.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
5,780
5,415
5171787.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
1,530
1,432
5171798.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
35,147
32,913
5172034.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
13,162
12,325
5172121.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
16,423
15,651
5172232.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
4,960
4,616
5172263.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
2,841
2,690
5172281.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
3,492
3,307
5172304.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
9,989
9,323
5172371.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
4,991
4,640
5172402.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
3,954
3,712
5172432.SQ.FTS.B,
Zero
Cpn,
10/16/23
..
8,505
7,955
5172517.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
3,560
3,392
5172535.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
8,443
7,917
5172607.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
2,503
2,335
5172631.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
3,124
2,903
5172651.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
3,197
3,047
5172676.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
6,418
6,112
5172726.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
4,922
4,527
5172757.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
9,442
8,939
5172829.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
4,488
4,280
5172857.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
2,476
2,324
5172879.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
1,635
1,526
5172887.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
10,011
9,478
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5172968.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
$
18,376
$
17,150
5173093.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
2,298
2,149
5173109.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
2,816
2,677
5173135.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
1,309
1,214
5173148.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
3,674
3,420
5173173.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
3,763
3,508
5173204.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
4,933
4,548
5173238.SQ.FTS.B,
Zero
Cpn,
10/17/23
..
13,032
12,425
5173468.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
1,506
1,413
5173516.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
6,006
5,571
5173671.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
674
636
5173697.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
14,341
13,573
5174300.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
12,985
12,367
5175259.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
668
636
5175283.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,316
2,192
5175382.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
557
527
5175389.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
1,598
1,485
5175425.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,037
1,908
5175500.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
16,349
15,358
5175826.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
6,278
5,880
5175901.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
5,092
4,780
5175979.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,336
2,210
5176007.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
1,294
1,225
5176028.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
3,759
3,477
5176050.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
3,502
3,314
5176106.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
18,339
17,299
5176286.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
3,377
3,248
5176343.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
10,325
9,663
5176420.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,688
2,516
5176448.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
13,001
12,395
5176544.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
5,460
5,125
5176617.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
1,489
1,391
5176630.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
15,120
14,073
5176794.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,459
4,168
5176878.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,856
2,654
5176935.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
1,924
1,787
5176983.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,473
4,188
5177016.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,116
1,954
5177078.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
5,405
5,021
5177137.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
10,258
9,717
5177259.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,088
3,809
5177284.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
493
450
5177285.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
28,982
27,416
5177658.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
6,340
5,872
5177710.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
19,526
18,615
5177975.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
682
645
5177983.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,208
2,058
5178002.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
43,553
40,875
5178365.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
8,909
8,395
5178424.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,069
3,852
5178484.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
8,034
7,524
5178540.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
6,065
5,726
5178576.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
5,894
5,471
5178621.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,327
4,052
5178641.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
9,239
8,643
5178744.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
7,803
7,327
5178833.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,513
4,229
5178882.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
724
674
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5178888.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
$
12,179
$
11,407
5178958.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
3,927
3,686
5178983.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,050
1,962
5179008.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
4,181
3,915
5179086.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
1,117
1,042
5179099.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
8,307
7,869
5179181.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
5,099
4,775
5179211.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
2,563
2,383
5179241.SQ.FTS.B,
Zero
Cpn,
10/18/23
..
20,733
19,410
5179609.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
37,125
35,394
5180070.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
3,983
3,706
5180171.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
5,654
5,295
5180228.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
5,658
5,328
5180392.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
2,357
2,212
5180490.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
1,857
1,728
5180564.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
15,953
14,974
5181365.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
550
510
5181422.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
3,002
2,867
5181779.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
29,561
27,669
5182490.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
4,968
4,674
5182579.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
6,316
5,981
5182664.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
3,847
3,626
5182752.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
4,897
4,584
5182826.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
15,449
14,464
5183061.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
5,383
5,161
5183134.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
22,596
21,536
5183457.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
3,134
2,911
5183535.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
17,765
16,574
5183886.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
5,495
5,286
5183980.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
2,207
2,067
5184014.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
1,722
1,611
5184042.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
1,548
1,461
5184066.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
1,323
1,230
5184127.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
6,305
6,011
5184257.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
9,044
8,470
5184333.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
1,933
1,810
5184366.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
11,981
11,344
5184532.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
5,305
4,958
5184597.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
2,720
2,594
5184623.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
3,579
3,373
5184644.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
1,605
1,499
5184654.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
4,811
4,537
5184700.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
10,911
10,459
5184855.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
2,408
2,251
5184893.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
28,529
27,200
5185270.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
22,333
20,905
5185515.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
7,156
6,701
5185561.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
2,002
1,851
5185567.SQ.FTS.B,
Zero
Cpn,
10/19/23
..
5,290
4,954
5185661.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
1,272
1,208
5185727.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
2,378
2,209
5185810.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
5,586
5,228
5185927.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
17,449
16,287
5186341.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
2,368
2,210
5186377.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
12,454
11,795
5186731.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
1,096
1,023
5186818.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
3,855
3,609
5187140.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
4,346
4,056
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5187627.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
$
1,097
$
1,013
5187713.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
946
879
5187726.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
7,808
7,312
5187974.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
3,015
2,812
5188076.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
12,947
12,209
5188425.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
33,624
31,341
5188774.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
3,700
3,513
5188827.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
3,996
3,732
5188867.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
47,013
44,511
5189475.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
3,061
2,918
5189542.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
8,614
8,005
5189604.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
11,200
10,609
5189756.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
557
519
5189764.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
9,836
9,376
5189905.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
29,929
28,452
5190292.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
12,093
11,386
5190391.SQ.FTS.B,
Zero
Cpn,
10/20/23
..
28,978
27,138
5198086.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
112,161
105,013
5201739.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
5,218
4,864
5201935.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
13,456
12,568
5202212.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
8,042
7,521
5202392.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
1,923
1,808
5202442.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
3,392
3,149
5202499.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
6,946
6,497
5202559.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
779
742
5202606.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
3,928
3,660
5202714.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
50,760
48,380
5203664.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
3,031
2,862
5203698.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
2,706
2,522
5203735.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
7,308
6,963
5203797.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
2,847
2,713
5203870.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
4,746
4,449
5203935.SQ.FTS.B,
Zero
Cpn,
10/21/23
..
3,903
3,687
5204070.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
4,871
4,611
5204240.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
1,819
1,693
5204280.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
5,106
4,748
5204450.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
10,735
9,915
5204688.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
8,099
7,424
5204798.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
26,598
25,177
5206327.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
8,172
7,651
5206535.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
3,892
3,605
5206615.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
13,108
12,490
5206948.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
9,880
9,415
5207294.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
15,595
14,630
5207486.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
4,415
4,193
5207544.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
69,681
65,232
5208601.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
17,016
16,197
5209009.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
5,554
5,277
5209284.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
5,422
5,132
5209497.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
3,216
3,009
5209644.SQ.FTS.B,
Zero
Cpn,
10/22/23
..
18,149
17,295
5209774.SQ.FTS.B,
Zero
Cpn,
10/23/23
..
4,737
4,414
5209797.SQ.FTS.B,
Zero
Cpn,
10/23/23
..
1,474
1,379
5209815.SQ.FTS.B,
Zero
Cpn,
10/23/23
..
1,673
1,566
5209822.SQ.FTS.B,
Zero
Cpn,
10/23/23
..
81,712
76,868
5210348.SQ.FTS.B,
Zero
Cpn,
10/23/23
..
19,253
18,023
5210490.SQ.FTS.B,
Zero
Cpn,
10/23/23
..
2,642
2,474
5210505.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
2,247
2,108
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
81
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5210519.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
$
14,063
$
12,989
5210616.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
3,286
3,075
5210634.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
5,666
5,457
5210691.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
3,472
3,287
5210720.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
1,980
1,882
5210732.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
17,537
16,445
5210863.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
7,394
6,892
5210903.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
15,828
14,818
5211045.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
15,099
14,131
5211163.SQ.FTS.B,
Zero
Cpn,
10/24/23
..
10,806
10,072
5211382.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
3,110
2,891
5211496.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
1,463
1,368
5211551.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
1,934
1,842
5211599.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
2,449
2,332
5211635.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
5,668
5,407
5211795.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
2,327
2,174
5211869.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
9,853
9,224
5212286.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
13,231
12,607
5212836.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
51,789
49,348
5213740.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
5,070
4,798
5213804.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
4,407
4,135
5213861.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
2,245
2,120
5213875.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
20,066
18,962
5213982.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
1,237
1,157
5213989.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
6,912
6,467
5214076.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
13,540
12,676
5214246.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
7,600
7,354
5214355.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
4,778
4,453
5214421.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
1,123
1,060
5214428.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
78,768
73,734
5215219.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
1,508
1,427
5215226.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
34,997
32,763
5215678.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
995
939
5215684.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
1,347
1,257
5215697.SQ.FTS.B,
Zero
Cpn,
10/25/23
..
70,470
66,121
5216200.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
78,809
73,760
5218386.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
21,059
20,066
5218771.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
36,128
33,924
5219348.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
568
530
5219361.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
16,421
15,371
5219548.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
7,378
6,891
5219633.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
10,830
10,071
5219771.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
2,147
2,014
5219790.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
1,853
1,749
5219804.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
963
901
5219834.SQ.FTS.B,
Zero
Cpn,
10/26/23
..
107,588
100,715
34,109,883
Freedom
Financial
Asset
Management
LLC
APP-11690146.FP.FTS.B,
5.99%,
12/01/23
6,284
6,361
APP-11695207.FP.FTS.B,
15.49%,
12/12/23
9,759
9,863
APP-12210758.FP.FTS.B,
22.49%,
1/15/24
15,231
15,323
APP-11798810.FP.FTS.B,
5.99%,
1/21/24
.
6,105
6,197
APP-11878331.FP.FTS.B,
5.99%,
1/22/24
.
10,570
10,739
APP-12050449.FP.FTS.B,
5.99%,
1/22/24
.
7,242
7,357
APP-12165611.FP.FTS.B,
20.49%,
1/22/24
11,178
11,292
APP-11694096.FP.FTS.B,
5.99%,
1/30/24
.
6,619
6,734
APP-11723164.FP.FTS.B,
17.99%,
2/01/24
6,383
6,435
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11550730.FP.FTS.B,
23.99%,
2/03/24
$
9,068
$
9,142
APP-11695208.FP.FTS.B,
5.99%,
2/04/24
.
6,768
6,868
APP-12436440.FP.FTS.B,
18.99%,
2/09/24
7,439
7,514
APP-12150591.FP.FTS.B,
5.99%,
2/28/24
.
8,611
8,757
APP-12139572.FP.FTS.B,
5.99%,
3/01/24
.
9,682
9,833
APP-12139722.FP.FTS.B,
5.99%,
3/02/24
.
10,175
10,336
APP-12050193.FP.FTS.B,
5.99%,
3/06/24
.
10,671
10,845
APP-12173490.FP.FTS.B,
17.99%,
3/08/24
7,021
7,124
APP-12403417.FP.FTS.B,
18.99%,
3/08/24
8,034
8,111
APP-12412711.FP.FTS.B,
5.99%,
3/16/24
.
10,526
10,708
APP-12460422.FP.FTS.B,
16.99%,
3/25/24
7,957
8,119
APP-10161712.FP.FTS.B,
23.99%,
8/15/24
6,314
6,176
APP-10199058.FP.FTS.B,
18.49%,
9/30/24
12,915
13,173
APP-10876917.FP.FTS.B,
23.99%,
10/19/24
..........................
10,789
10,687
APP-10609876.FP.FTS.B,
25.49%,
10/25/24
..........................
8,630
8,609
APP-10901539.FP.FTS.B,
15.49%,
11/27/24
28,376
28,681
APP-10784743.FP.FTS.B,
23.99%,
11/28/24
12,801
12,847
APP-11694740.FP.FTS.B,
7.49%,
12/15/24
19,588
19,850
APP-11595022.FP.FTS.B,
8.49%,
12/16/24
17,054
17,291
APP-11710009.FP.FTS.B,
18.49%,
12/20/24
29,349
6,082
APP-11694411.FP.FTS.B,
13.99%,
12/21/24
16,145
16,315
APP-11731526.FP.FTS.B,
16.49%,
12/21/24
12,023
12,139
APP-11694509.FP.FTS.B,
9.74%,
12/22/24
15,853
16,086
APP-11736995.FP.FTS.B,
17.99%,
12/22/24
9,395
9,524
APP-11695015.FP.FTS.B,
18.49%,
12/22/24
32,621
32,873
APP-11740367.FP.FTS.B,
18.99%,
12/22/24
9,168
9,263
APP-11395504.FP.FTS.B,
25.49%,
1/08/25
8,864
8,760
APP-12144621.FP.FTS.B,
25.49%,
1/21/25
9,394
9,403
APP-11798754.FP.FTS.B,
6.99%,
1/22/25
.
27,738
28,173
APP-12148090.FP.FTS.B,
9.74%,
1/22/25
.
16,676
16,931
APP-12167100.FP.FTS.B,
17.99%,
1/22/25
9,340
9,433
APP-12173761.FP.FTS.B,
25.49%,
1/22/25
8,461
8,475
APP-12185700.FP.FTS.B,
9.74%,
1/23/25
.
12,918
13,120
APP-12164966.FP.FTS.B,
11.74%,
1/23/25
19,495
19,788
APP-12185297.FP.FTS.B,
15.99%,
1/23/25
16,780
17,016
APP-12179908.FP.FTS.B,
18.99%,
1/23/25
9,348
9,443
APP-12087415.FP.FTS.B,
12.99%,
1/25/25
24,477
24,778
APP-11694335.FP.FTS.B,
11.24%,
1/27/25
9,289
9,448
APP-11924017.FP.FTS.B,
15.99%,
1/28/25
17,040
17,259
APP-11702169.FP.FTS.B,
25.49%,
1/28/25
8,909
8,982
APP-11509368.FP.FTS.B,
14.99%,
1/29/25
23,706
24,046
APP-12365615.FP.FTS.B,
16.99%,
2/01/25
9,530
9,619
APP-12414484.FP.FTS.B,
17.24%,
2/02/25
30,833
30,812
APP-12287483.FP.FTS.B,
12.99%,
2/03/25
21,886
22,037
APP-11733782.FP.FTS.B,
15.74%,
2/03/25
19,889
19,816
APP-11730944.FP.FTS.B,
15.99%,
2/03/25
10,299
10,296
APP-11725711.FP.FTS.B,
21.99%,
2/03/25
12,488
12,415
APP-11694464.FP.FTS.B,
11.49%,
2/04/25
12,271
12,465
APP-11736672.FP.FTS.B,
23.74%,
2/04/25
23,885
23,778
APP-12175602.FP.FTS.B,
17.49%,
2/25/25
12,940
13,086
APP-12085226.FP.FTS.B,
23.99%,
2/25/25
13,738
13,793
APP-12213351.FP.FTS.B,
13.24%,
2/26/25
10,239
10,408
APP-12175455.FP.FTS.B,
16.99%,
3/01/25
8,906
9,034
APP-12165485.FP.FTS.B,
18.99%,
3/01/25
14,419
14,486
APP-12141452.FP.FTS.B,
17.49%,
3/04/25
20,147
20,184
APP-12029075.FP.FTS.B,
15.99%,
3/05/25
19,219
19,376
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12155870.FP.FTS.B,
15.99%,
3/05/25
$
17,290
$
17,557
APP-12173727.FP.FTS.B,
18.49%,
3/05/25
30,332
30,332
APP-12124683.FP.FTS.B,
16.99%,
3/06/25
13,964
13,961
APP-12172939.FP.FTS.B,
9.74%,
3/07/25
.
19,094
19,420
APP-12017283.FP.FTS.B,
14.24%,
3/07/25
30,830
31,174
APP-12142572.FP.FTS.B,
15.24%,
3/07/25
40,938
41,615
APP-10156554.FP.FTS.B,
9.49%,
3/08/25
.
24,394
24,818
APP-12188446.FP.FTS.B,
11.99%,
3/08/25
19,147
19,453
APP-12185763.FP.FTS.B,
12.99%,
3/08/25
23,705
23,965
APP-12184624.FP.FTS.B,
15.74%,
3/08/25
19,133
19,165
APP-12168882.FP.FTS.B,
17.49%,
3/08/25
23,123
23,307
APP-12175546.FP.FTS.B,
17.99%,
3/08/25
15,454
15,552
APP-12031531.FP.FTS.B,
20.99%,
3/08/25
16,439
16,444
APP-12414365.FP.FTS.B,
9.74%,
3/09/25
.
13,516
13,756
APP-12414463.FP.FTS.B,
16.99%,
3/09/25
7,172
7,269
APP-12178610.FP.FTS.B,
23.99%,
3/09/25
12,209
12,235
APP-12201442.FP.FTS.B,
19.49%,
3/10/25
18,258
18,331
APP-12139801.FP.FTS.B,
9.49%,
3/11/25
.
20,749
21,125
APP-12426283.FP.FTS.B,
23.74%,
3/15/25
19,770
19,885
APP-12246234.FP.FTS.B,
16.99%,
3/17/25
16,562
16,763
APP-12309616.FP.FTS.B,
13.49%,
3/18/25
12,092
12,306
APP-11853561.FP.FTS.B,
17.99%,
3/18/25
14,429
14,632
APP-12050722.FP.FTS.B,
9.49%,
3/20/25
.
19,322
19,681
APP-12281554.FP.FTS.B,
9.49%,
3/20/25
.
26,343
26,832
APP-12416946.FP.FTS.B,
9.49%,
3/20/25
.
20,999
21,389
APP-12426976.FP.FTS.B,
18.99%,
3/20/25
14,932
15,104
APP-12413819.FP.FTS.B,
16.99%,
3/21/25
10,814
10,979
APP-12106203.FP.FTS.B,
9.74%,
3/22/25
.
18,544
18,900
APP-12270743.FP.FTS.B,
16.49%,
3/22/25
14,877
15,125
APP-12381356.FP.FTS.B,
9.74%,
3/24/25
.
15,106
15,405
APP-12414413.FP.FTS.B,
17.99%,
3/25/25
15,748
16,024
APP-10157776.FP.FTS.B,
22.49%,
8/13/25
34,218
34,161
APP-10564744.FP.FTS.B,
19.49%,
9/15/25
7,652
860
APP-10861885.FP.FTS.B,
15.49%,
10/17/25
..........................
18,360
18,595
APP-10833798.FP.FTS.B,
15.99%,
10/18/25
..........................
18,125
18,300
APP-10463967.FP.FTS.B,
18.99%,
10/23/25
..........................
21,360
21,453
APP-10612921.FP.FTS.B,
18.49%,
11/07/25
9,772
9,877
APP-11361622.FP.FTS.B,
12.49%,
11/15/25
39,266
39,707
APP-11579289.FP.FTS.B,
10.99%,
12/05/25
12,084
12,220
APP-11701123.FP.FTS.B,
10.99%,
12/14/25
18,173
18,426
APP-11739697.FP.FTS.B,
15.49%,
12/15/25
20,378
20,572
APP-11678649.FP.FTS.B,
18.49%,
12/17/25
18,776
18,920
APP-11737115.FP.FTS.B,
12.49%,
12/18/25
14,270
14,478
APP-11731020.FP.FTS.B,
19.99%,
12/20/25
29,769
29,938
APP-11693902.FP.FTS.B,
15.24%,
12/21/25
29,487
29,846
APP-11712135.FP.FTS.B,
13.24%,
12/22/25
13,091
13,299
APP-11531737.FP.FTS.B,
13.99%,
12/22/25
12,130
12,315
APP-11442801.FP.FTS.B,
16.49%,
12/22/25
17,843
18,051
APP-10314724.FP.FTS.B,
11.74%,
1/08/26
32,230
32,737
APP-12165054.FP.FTS.B,
10.24%,
1/14/26
17,947
18,194
APP-12174416.FP.FTS.B,
10.24%,
1/22/26
19,430
19,735
APP-12171910.FP.FTS.B,
12.49%,
1/22/26
15,030
15,266
APP-11799040.FP.FTS.B,
15.74%,
1/22/26
40,192
40,623
APP-12199831.FP.FTS.B,
16.99%,
1/22/26
14,490
14,670
APP-12006366.FP.FTS.B,
20.99%,
1/22/26
9,570
9,658
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11687753.FP.FTS.B,
13.49%,
1/25/26
$
21,262
$
21,613
APP-11694677.FP.FTS.B,
10.24%,
1/28/26
14,800
15,069
APP-11657555.FP.FTS.B,
18.49%,
1/28/26
45,709
46,247
APP-11695130.FP.FTS.B,
16.99%,
2/01/26
13,079
13,216
APP-12287012.FP.FTS.B,
17.49%,
2/01/26
13,397
13,429
APP-12458983.FP.FTS.B,
15.99%,
2/02/26
11,596
11,731
APP-11579337.FP.FTS.B,
10.99%,
2/04/26
25,057
25,501
APP-11740258.FP.FTS.B,
17.49%,
2/05/26
7,215
7,344
APP-11595092.FP.FTS.B,
19.49%,
2/05/26
38,583
38,921
APP-12168235.FP.FTS.B,
19.49%,
2/23/26
8,827
9,004
APP-12139578.FP.FTS.B,
15.24%,
2/24/26
11,145
11,325
APP-12119897.FP.FTS.B,
10.24%,
2/28/26
21,168
21,545
APP-12174351.FP.FTS.B,
15.99%,
3/01/26
19,450
19,575
APP-12176488.FP.FTS.B,
14.99%,
3/04/26
19,451
19,775
APP-12033031.FP.FTS.B,
13.99%,
3/05/26
7,293
7,428
APP-12050179.FP.FTS.B,
16.49%,
3/07/26
16,383
16,684
APP-12128364.FP.FTS.B,
13.24%,
3/08/26
28,559
28,817
APP-12463162.FP.FTS.B,
18.49%,
3/10/26
15,543
15,722
APP-12209184.FP.FTS.B,
19.49%,
3/11/26
14,258
14,404
APP-12270284.FP.FTS.B,
9.99%,
3/14/26
.
36,925
37,583
APP-12287014.FP.FTS.B,
16.99%,
3/15/26
15,221
15,450
APP-12466087.FP.FTS.B,
18.99%,
3/15/26
12,649
12,816
APP-12397804.FP.FTS.B,
16.99%,
3/16/26
12,264
12,454
APP-12400371.FP.FTS.B,
16.99%,
3/16/26
21,943
22,260
APP-12372783.FP.FTS.B,
14.99%,
3/17/26
20,962
21,256
APP-12406010.FP.FTS.B,
9.99%,
3/18/26
.
24,208
24,666
APP-12431691.FP.FTS.B,
9.49%,
3/20/26
.
29,518
30,092
APP-12286988.FP.FTS.B,
10.99%,
3/21/26
48,504
49,474
APP-12343526.FP.FTS.B,
16.99%,
3/21/26
24,950
25,362
APP-12463857.FP.FTS.B,
17.49%,
3/21/26
9,761
9,967
APP-12448349.FP.FTS.B,
14.99%,
3/23/26
21,426
21,790
APP-12414671.FP.FTS.B,
15.99%,
3/23/26
22,911
23,344
APP-12397053.FP.FTS.B,
19.99%,
3/23/26
34,461
34,964
APP-12431061.FP.FTS.B,
10.99%,
3/24/26
48,431
49,449
APP-12443256.FP.FTS.B,
16.74%,
3/24/26
37,777
38,463
APP-12414591.FP.FTS.B,
19.49%,
3/24/26
9,396
9,578
APP-12459668.FP.FTS.B,
14.99%,
3/25/26
18,317
18,670
APP-12463779.FP.FTS.B,
15.99%,
3/25/26
13,552
13,855
APP-12464227.FP.FTS.B,
16.24%,
3/25/26
30,964
31,432
APP-12414582.FP.FTS.B,
18.49%,
3/25/26
19,467
19,845
APP-10174955.FP.FTS.B,
19.49%,
8/15/26
25,907
26,027
APP-10573456.FP.FTS.B,
17.49%,
9/10/26
14,484
14,473
APP-10550239.FP.FTS.B,
23.49%,
9/18/26
19,723
20,118
APP-10406165.FP.FTS.B,
18.99%,
9/20/26
17,728
17,773
APP-09994260.FP.FTS.B,
17.49%,
9/28/26
30,418
30,893
APP-10843011.FP.FTS.B,
21.49%,
10/20/26
46,937
46,629
APP-10590417.FP.FTS.B,
17.99%,
10/23/26
..........................
19,047
11,397
APP-10618590.FP.FTS.B,
20.49%,
10/26/26
..........................
15,353
15,209
APP-11151176.FP.FTS.B,
19.99%,
10/30/26
11,198
11,150
APP-10516826.FP.FTS.B,
18.99%,
11/01/26
20,000
20,400
APP-11021919.FP.FTS.B,
17.99%,
11/03/26
17,064
16,988
APP-10582732.FP.FTS.B,
21.99%,
11/04/26
8,210
4,867
APP-10609892.FP.FTS.B,
17.99%,
11/05/26
9,746
9,941
APP-10541760.FP.FTS.B,
17.49%,
11/06/26
20,000
20,400
APP-11341867.FP.FTS.B,
14.99%,
11/20/26
24,195
24,418
APP-11400385.FP.FTS.B,
14.49%,
11/26/26
11,274
11,428
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
83
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11381442.FP.FTS.B,
20.49%,
11/26/26
$
23,690
$
23,762
APP-10762380.FP.FTS.B,
11.99%,
11/29/26
17,019
8,506
APP-10850914.FP.FTS.B,
14.24%,
11/29/26
22,654
22,971
APP-10801509.FP.FTS.B,
19.49%,
11/29/26
25,502
14,932
APP-11744624.FP.FTS.B,
13.24%,
12/09/26
22,722
22,948
APP-11579549.FP.FTS.B,
13.49%,
12/15/26
44,510
45,048
APP-11695023.FP.FTS.B,
13.49%,
12/15/26
16,036
16,230
APP-11673143.FP.FTS.B,
19.99%,
12/15/26
11,368
11,404
APP-11700609.FP.FTS.B,
19.99%,
12/15/26
47,766
47,914
APP-11737058.FP.FTS.B,
22.49%,
12/15/26
9,382
9,370
APP-11671786.FP.FTS.B,
22.49%,
12/16/26
8,527
8,521
APP-11604288.FP.FTS.B,
15.49%,
12/17/26
15,629
15,731
APP-11736851.FP.FTS.B,
19.99%,
12/17/26
13,390
13,426
APP-11679563.FP.FTS.B,
17.99%,
12/18/26
28,972
29,036
APP-11693245.FP.FTS.B,
18.49%,
12/18/26
19,876
19,903
APP-11719573.FP.FTS.B,
19.99%,
12/18/26
12,442
12,455
APP-11665810.FP.FTS.B,
20.99%,
12/18/26
32,092
32,121
APP-11579432.FP.FTS.B,
14.99%,
12/19/26
15,354
15,542
APP-11022370.FP.FTS.B,
16.49%,
12/20/26
10,654
10,837
APP-11733566.FP.FTS.B,
19.24%,
12/20/26
20,435
20,580
APP-11740523.FP.FTS.B,
10.99%,
12/21/26
23,323
23,679
APP-11724221.FP.FTS.B,
11.24%,
12/21/26
47,440
48,162
APP-11443178.FP.FTS.B,
11.74%,
12/21/26
13,291
13,483
APP-11694985.FP.FTS.B,
12.99%,
12/21/26
13,123
13,311
APP-11695114.FP.FTS.B,
17.49%,
12/21/26
14,818
14,937
APP-11730592.FP.FTS.B,
17.99%,
12/21/26
40,179
40,449
APP-11723942.FP.FTS.B,
19.49%,
12/21/26
45,804
46,034
APP-11726144.FP.FTS.B,
20.49%,
12/21/26
28,907
28,958
APP-11553389.FP.FTS.B,
12.24%,
12/22/26
18,976
19,255
APP-11563018.FP.FTS.B,
18.99%,
12/22/26
19,165
19,303
APP-11731905.FP.FTS.B,
18.99%,
12/22/26
19,164
19,302
APP-11735206.FP.FTS.B,
19.49%,
12/22/26
20,710
20,826
APP-11730543.FP.FTS.B,
19.99%,
12/22/26
13,974
14,029
APP-11733931.FP.FTS.B,
19.99%,
12/22/26
15,158
15,210
APP-11740969.FP.FTS.B,
19.99%,
12/22/26
15,349
15,435
APP-11186111.FP.FTS.B,
16.99%,
12/28/26
16,891
16,998
APP-11401848.FP.FTS.B,
15.49%,
1/05/27
12,440
12,485
APP-12116526.FP.FTS.B,
18.99%,
1/05/27
14,375
14,344
APP-11146646.FP.FTS.B,
12.74%,
1/07/27
30,858
31,292
APP-11411446.FP.FTS.B,
17.99%,
1/09/27
48,264
48,934
APP-11208788.FP.FTS.B,
20.99%,
1/09/27
16,346
16,267
APP-11397497.FP.FTS.B,
11.99%,
1/10/27
22,610
23,036
APP-11410185.FP.FTS.B,
22.49%,
1/10/27
28,196
28,281
APP-11413059.FP.FTS.B,
13.74%,
1/11/27
12,574
12,771
APP-11946615.FP.FTS.B,
16.49%,
1/11/27
21,483
21,702
APP-12090452.FP.FTS.B,
16.99%,
1/15/27
19,252
19,351
APP-12139980.FP.FTS.B,
19.99%,
1/15/27
7,232
7,253
APP-12032875.FP.FTS.B,
11.24%,
1/16/27
24,266
24,574
APP-12094650.FP.FTS.B,
18.99%,
1/19/27
7,727
7,778
APP-12073890.FP.FTS.B,
10.99%,
1/20/27
21,127
21,436
APP-12213292.FP.FTS.B,
12.99%,
1/20/27
13,659
13,851
APP-12040387.FP.FTS.B,
18.49%,
1/20/27
13,284
4,267
APP-12132313.FP.FTS.B,
11.24%,
1/21/27
12,491
12,677
APP-12137436.FP.FTS.B,
16.99%,
1/21/27
28,821
29,023
APP-12173162.FP.FTS.B,
17.49%,
1/21/27
16,576
16,720
APP-12138638.FP.FTS.B,
19.99%,
1/21/27
11,525
11,557
APP-11798808.FP.FTS.B,
10.99%,
1/22/27
19,237
19,530
APP-12172519.FP.FTS.B,
11.24%,
1/22/27
14,417
14,636
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12154405.FP.FTS.B,
14.49%,
1/22/27
$
14,459
$
14,648
APP-12161019.FP.FTS.B,
20.49%,
1/22/27
10,194
10,233
APP-12122672.FP.FTS.B,
22.99%,
1/22/27
15,577
15,657
APP-12169743.FP.FTS.B,
24.24%,
1/22/27
28,551
28,597
APP-12186510.FP.FTS.B,
9.74%,
1/23/27
.
40,849
41,525
APP-12107351.FP.FTS.B,
16.49%,
1/23/27
21,242
21,429
APP-11651502.FP.FTS.B,
17.49%,
1/24/27
16,379
16,556
APP-12089965.FP.FTS.B,
8.99%,
1/25/27
.
33,586
34,137
APP-12105986.FP.FTS.B,
10.99%,
1/25/27
33,058
33,598
APP-11732587.FP.FTS.B,
23.49%,
1/25/27
9,651
9,713
APP-12209707.FP.FTS.B,
25.49%,
1/25/27
10,790
10,841
APP-11595106.FP.FTS.B,
13.49%,
1/26/27
13,506
13,731
APP-11579435.FP.FTS.B,
15.49%,
1/28/27
18,282
18,511
APP-11694310.FP.FTS.B,
16.74%,
1/28/27
43,272
44,002
APP-11739118.FP.FTS.B,
16.99%,
1/28/27
15,343
15,522
APP-11595260.FP.FTS.B,
18.99%,
1/29/27
14,277
14,438
APP-11588109.FP.FTS.B,
20.49%,
1/30/27
24,364
24,644
APP-11697560.FP.FTS.B,
12.49%,
1/31/27
39,365
40,102
APP-12414657.FP.FTS.B,
10.99%,
2/01/27
35,300
35,765
APP-12462065.FP.FTS.B,
17.74%,
2/01/27
38,139
38,066
APP-12459489.FP.FTS.B,
18.24%,
2/01/27
38,988
39,070
APP-11711469.FP.FTS.B,
19.99%,
2/01/27
16,087
16,127
APP-11705115.FP.FTS.B,
21.49%,
2/01/27
48,828
48,799
APP-11709913.FP.FTS.B,
21.49%,
2/02/27
49,361
49,706
APP-12408607.FP.FTS.B,
18.49%,
2/03/27
15,913
15,880
APP-11732543.FP.FTS.B,
20.99%,
2/03/27
14,383
14,368
APP-11733248.FP.FTS.B,
10.99%,
2/04/27
38,621
39,276
APP-11694211.FP.FTS.B,
11.99%,
2/04/27
48,679
49,610
APP-11724908.FP.FTS.B,
12.74%,
2/04/27
40,413
41,069
APP-11709701.FP.FTS.B,
16.49%,
2/04/27
14,770
14,973
APP-11712504.FP.FTS.B,
17.99%,
2/04/27
9,743
9,899
APP-11725393.FP.FTS.B,
17.99%,
2/04/27
48,716
49,015
APP-11731565.FP.FTS.B,
18.99%,
2/04/27
48,775
49,188
APP-11695149.FP.FTS.B,
19.49%,
2/04/27
21,206
21,292
APP-11732774.FP.FTS.B,
19.49%,
2/04/27
11,713
11,761
APP-11694359.FP.FTS.B,
19.99%,
2/04/27
11,067
11,142
APP-11660434.FP.FTS.B,
20.49%,
2/04/27
28,130
28,251
APP-11694079.FP.FTS.B,
10.99%,
2/05/27
21,278
21,645
APP-11722179.FP.FTS.B,
11.99%,
2/05/27
27,081
27,557
APP-11740935.FP.FTS.B,
13.99%,
2/05/27
48,489
49,313
APP-12420689.FP.FTS.B,
14.49%,
2/05/27
12,565
12,711
APP-11608429.FP.FTS.B,
17.49%,
2/05/27
38,968
39,604
APP-11744076.FP.FTS.B,
17.49%,
2/05/27
22,495
22,692
APP-09759707.FP.FTS.B,
18.99%,
2/05/27
7,320
7,386
APP-11741297.FP.FTS.B,
19.24%,
2/05/27
20,503
20,495
APP-11724087.FP.FTS.B,
19.99%,
2/05/27
9,772
9,819
APP-11742772.FP.FTS.B,
19.99%,
2/05/27
15,523
15,598
APP-11742867.FP.FTS.B,
23.24%,
2/05/27
19,620
19,613
APP-12337990.FP.FTS.B,
16.49%,
2/07/27
7,815
7,922
APP-11738196.FP.FTS.B,
21.99%,
2/15/27
10,590
10,655
APP-12029572.FP.FTS.B,
16.99%,
2/24/27
18,443
18,600
APP-12033253.FP.FTS.B,
17.99%,
2/24/27
13,866
13,952
APP-12017176.FP.FTS.B,
18.24%,
2/24/27
35,136
35,429
APP-12176796.FP.FTS.B,
8.99%,
2/25/27
.
26,848
27,278
APP-12096330.FP.FTS.B,
17.24%,
2/25/27
35,607
35,964
APP-12159528.FP.FTS.B,
18.99%,
2/28/27
14,560
14,741
APP-12050224.FP.FTS.B,
11.74%,
3/01/27
41,365
42,041
APP-12156019.FP.FTS.B,
13.24%,
3/01/27
31,310
31,786
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12168636.FP.FTS.B,
13.24%,
3/01/27
$
19,569
$
19,960
APP-12210481.FP.FTS.B,
15.49%,
3/01/27
24,559
24,754
APP-12171147.FP.FTS.B,
16.24%,
3/01/27
29,424
29,588
APP-12208752.FP.FTS.B,
16.49%,
3/01/27
21,807
11,150
APP-12211243.FP.FTS.B,
17.24%,
3/01/27
35,540
35,827
APP-12107891.FP.FTS.B,
17.99%,
3/01/27
15,506
15,561
APP-12175594.FP.FTS.B,
18.99%,
3/01/27
13,753
13,844
APP-12208717.FP.FTS.B,
21.74%,
3/01/27
24,556
24,570
APP-12150597.FP.FTS.B,
25.49%,
3/01/27
10,393
10,382
APP-12176496.FP.FTS.B,
18.49%,
3/02/27
21,368
21,519
APP-12158633.FP.FTS.B,
23.24%,
3/02/27
19,731
19,720
APP-12005996.FP.FTS.B,
15.49%,
3/03/27
11,773
11,868
APP-12185324.FP.FTS.B,
19.99%,
3/04/27
12,998
13,045
APP-12097524.FP.FTS.B,
21.24%,
3/04/27
19,726
19,755
APP-12183636.FP.FTS.B,
21.49%,
3/04/27
14,858
14,902
APP-11708192.FP.FTS.B,
25.49%,
3/04/27
11,119
11,128
APP-12105218.FP.FTS.B,
10.99%,
3/05/27
24,618
25,080
APP-12101962.FP.FTS.B,
13.49%,
3/05/27
14,702
14,948
APP-12214905.FP.FTS.B,
16.49%,
3/05/27
11,788
11,980
APP-12159801.FP.FTS.B,
16.99%,
3/05/27
27,225
27,431
APP-12123398.FP.FTS.B,
19.99%,
3/05/27
19,717
19,780
APP-12164096.FP.FTS.B,
21.49%,
3/05/27
14,157
14,188
APP-12133804.FP.FTS.B,
10.99%,
3/06/27
21,519
21,897
APP-12168034.FP.FTS.B,
18.99%,
3/06/27
15,473
15,604
APP-12172482.FP.FTS.B,
20.49%,
3/06/27
27,631
27,740
APP-12050159.FP.FTS.B,
13.24%,
3/07/27
34,182
34,792
APP-12124756.FP.FTS.B,
13.24%,
3/07/27
8,877
8,919
APP-12032991.FP.FTS.B,
14.49%,
3/07/27
23,064
23,446
APP-12171245.FP.FTS.B,
16.99%,
3/07/27
28,733
28,979
APP-12125835.FP.FTS.B,
19.99%,
3/07/27
13,931
14,158
APP-12168830.FP.FTS.B,
22.49%,
3/07/27
10,261
10,466
APP-12140862.FP.FTS.B,
8.99%,
3/08/27
.
25,393
25,840
APP-12164888.FP.FTS.B,
8.99%,
3/08/27
.
33,201
33,785
APP-12105970.FP.FTS.B,
10.99%,
3/08/27
21,743
22,119
APP-12155604.FP.FTS.B,
11.24%,
3/08/27
15,451
15,736
APP-12097459.FP.FTS.B,
13.24%,
3/08/27
24,525
24,960
APP-12106008.FP.FTS.B,
13.49%,
3/08/27
15,504
15,785
APP-12050743.FP.FTS.B,
14.99%,
3/08/27
17,281
17,570
APP-12150738.FP.FTS.B,
16.74%,
3/08/27
43,411
44,161
APP-12167178.FP.FTS.B,
17.49%,
3/08/27
24,599
24,796
APP-12188890.FP.FTS.B,
20.49%,
3/08/27
18,563
18,677
APP-12432804.FP.FTS.B,
13.24%,
3/09/27
35,815
36,340
APP-12366828.FP.FTS.B,
16.99%,
3/09/27
15,888
16,098
APP-12427802.FP.FTS.B,
18.24%,
3/09/27
48,889
49,106
APP-12427999.FP.FTS.B,
18.99%,
3/09/27
25,557
25,718
APP-12176276.FP.FTS.B,
19.99%,
3/09/27
18,784
18,976
APP-11965580.FP.FTS.B,
20.49%,
3/09/27
27,169
27,352
APP-11508449.FP.FTS.B,
8.49%,
3/10/27
.
30,228
30,723
APP-12216897.FP.FTS.B,
10.99%,
3/10/27
38,991
39,633
APP-12448900.FP.FTS.B,
13.24%,
3/10/27
30,830
31,317
APP-12450922.FP.FTS.B,
15.24%,
3/10/27
35,581
35,948
APP-12451319.FP.FTS.B,
17.49%,
3/10/27
11,746
11,838
APP-12203395.FP.FTS.B,
22.49%,
3/10/27
10,944
11,033
APP-12451332.FP.FTS.B,
22.99%,
3/10/27
15,223
15,290
APP-12199670.FP.FTS.B,
10.99%,
3/11/27
34,112
34,664
APP-12459432.FP.FTS.B,
13.24%,
3/11/27
24,415
24,810
APP-12464629.FP.FTS.B,
16.49%,
3/11/27
14,708
14,968
APP-12459441.FP.FTS.B,
17.49%,
3/11/27
16,648
16,830
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11910407.FP.FTS.B,
17.99%,
3/11/27
$
24,703
$
24,943
APP-12210087.FP.FTS.B,
18.74%,
3/11/27
49,236
49,825
APP-12212610.FP.FTS.B,
18.99%,
3/11/27
9,504
9,660
APP-12459768.FP.FTS.B,
19.74%,
3/11/27
33,931
34,217
APP-12071137.FP.FTS.B,
19.99%,
3/11/27
26,924
27,206
APP-12462440.FP.FTS.B,
20.49%,
3/11/27
17,846
17,977
APP-12460903.FP.FTS.B,
10.99%,
3/15/27
39,040
39,742
APP-12467297.FP.FTS.B,
13.24%,
3/15/27
30,870
31,416
APP-12442169.FP.FTS.B,
14.49%,
3/15/27
20,608
20,955
APP-12291770.FP.FTS.B,
16.49%,
3/15/27
22,551
22,938
APP-12420649.FP.FTS.B,
16.74%,
3/15/27
41,890
42,610
APP-12422367.FP.FTS.B,
18.49%,
3/15/27
11,699
11,805
APP-12379303.FP.FTS.B,
13.24%,
3/16/27
23,629
24,055
APP-12345397.FP.FTS.B,
19.74%,
3/16/27
39,337
39,706
APP-12196952.FP.FTS.B,
19.99%,
3/16/27
15,529
15,676
APP-12407602.FP.FTS.B,
19.99%,
3/16/27
17,705
17,906
APP-12408935.FP.FTS.B,
19.99%,
3/17/27
13,778
13,916
APP-12433554.FP.FTS.B,
25.49%,
3/17/27
9,882
9,977
APP-12460693.FP.FTS.B,
13.24%,
3/18/27
24,478
24,937
APP-12462116.FP.FTS.B,
17.49%,
3/18/27
28,499
28,910
APP-11948900.FP.FTS.B,
17.74%,
3/18/27
43,249
43,875
APP-12418630.FP.FTS.B,
17.99%,
3/18/27
20,646
20,855
APP-12433361.FP.FTS.B,
18.49%,
3/18/27
18,490
18,680
APP-12461150.FP.FTS.B,
18.49%,
3/18/27
17,711
17,893
APP-12421799.FP.FTS.B,
19.74%,
3/18/27
30,389
30,767
APP-12244962.FP.FTS.B,
19.99%,
3/18/27
9,847
9,970
APP-12463831.FP.FTS.B,
19.99%,
3/18/27
9,837
9,973
APP-12369379.FP.FTS.B,
13.24%,
3/19/27
20,570
20,964
APP-12357813.FP.FTS.B,
10.99%,
3/20/27
31,290
31,900
APP-12238970.FP.FTS.B,
11.24%,
3/20/27
12,719
12,965
APP-12287686.FP.FTS.B,
11.24%,
3/20/27
23,481
23,919
APP-12422648.FP.FTS.B,
13.24%,
3/20/27
22,695
23,137
APP-12380981.FP.FTS.B,
13.74%,
3/20/27
10,763
10,977
APP-12392789.FP.FTS.B,
18.99%,
3/20/27
17,730
17,991
APP-12438335.FP.FTS.B,
19.49%,
3/20/27
20,792
21,073
APP-12230901.FP.FTS.B,
20.24%,
3/20/27
49,472
50,164
APP-12412709.FP.FTS.B,
20.24%,
3/20/27
46,708
47,350
APP-12424835.FP.FTS.B,
23.99%,
3/20/27
32,145
32,514
APP-12459776.FP.FTS.B,
10.99%,
3/21/27
33,039
33,694
APP-12287335.FP.FTS.B,
13.24%,
3/21/27
20,643
21,046
APP-12402614.FP.FTS.B,
13.74%,
3/21/27
25,853
26,380
APP-12416550.FP.FTS.B,
19.49%,
3/21/27
15,787
5,549
APP-12450320.FP.FTS.B,
19.99%,
3/21/27
13,809
13,980
APP-12415203.FP.FTS.B,
21.24%,
3/21/27
23,515
23,876
APP-12345892.FP.FTS.B,
13.49%,
3/22/27
16,546
16,906
APP-11904597.FP.FTS.B,
14.74%,
3/22/27
31,155
31,636
APP-12345261.FP.FTS.B,
15.49%,
3/22/27
24,089
24,452
APP-12443158.FP.FTS.B,
17.49%,
3/22/27
11,816
11,981
APP-12453912.FP.FTS.B,
19.74%,
3/22/27
39,447
40,054
APP-12463880.FP.FTS.B,
19.74%,
3/22/27
39,469
40,051
APP-12402250.FP.FTS.B,
19.99%,
3/22/27
25,000
25,414
APP-12446716.FP.FTS.B,
22.49%,
3/22/27
9,100
9,227
APP-12270745.FP.FTS.B,
17.74%,
3/23/27
37,826
38,375
APP-12429877.FP.FTS.B,
19.74%,
3/23/27
29,668
30,126
APP-12435676.FP.FTS.B,
20.49%,
3/23/27
39,518
40,026
APP-12456449.FP.FTS.B,
23.49%,
3/23/27
9,926
10,106
APP-12414131.FP.FTS.B,
10.99%,
3/24/27
20,471
20,896
APP-12420863.FP.FTS.B,
17.49%,
3/24/27
18,870
19,199
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
85
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12463499.FP.FTS.B,
17.49%,
3/24/27
$
23,657
$
24,069
APP-12468743.FP.FTS.B,
18.24%,
3/24/27
31,564
32,089
APP-12468934.FP.FTS.B,
19.99%,
3/24/27
9,881
10,052
APP-12408200.FP.FTS.B,
21.74%,
3/24/27
25,930
26,276
APP-12468566.FP.FTS.B,
19.74%,
3/25/27
30,046
30,541
APP-11872544.FP.FTS.B,
19.99%,
3/25/27
13,544
13,744
APP-12173877.FP.FTS.B,
25.49%,
4/07/27
9,793
9,871
APP-12171005.FP.FTS.B,
23.99%,
4/08/27
31,397
31,553
APP-12185506.FP.FTS.B,
25.49%,
4/09/27
10,000
6,612
8,681,044
LendingClub
Corp.
-
LCX
156436810.LC.FTS.B,
16.95%,
8/05/22
...
2,219
2,226
158826233.LC.FTS.B,
15.24%,
9/16/22
...
3,797
3,793
157785314.LC.FTS.B,
14.3%,
9/26/22
...
828
835
160802832.LC.FTS.B,
12.4%,
10/25/22
...
2,468
2,450
161875960.LC.FTS.B,
14.3%,
11/14/22
...
8,022
8,015
162075372.LC.FTS.B,
10.33%,
11/19/22
..
5,972
1,088
162031324.LC.FTS.B,
17.74%,
11/19/22
..
8,471
8,425
162345533.LC.FTS.B,
7.02%,
11/26/22
...
7,310
7,247
162683524.LC.FTS.B,
23.05%,
12/03/22
..
7,735
7,575
162951198.LC.FTS.B,
15.24%,
12/13/22
..
14,620
14,046
163070194.LC.FTS.B,
16.12%,
12/13/22
..
5,799
5,709
163452323.LC.FTS.B,
6.46%,
12/17/22
...
2,392
2,374
162484042.LC.FTS.B,
23.05%,
12/20/22
..
321
315
163306459.LC.FTS.B,
8.81%,
12/23/22
...
8,302
8,219
163655887.LC.FTS.B,
8.81%,
12/23/22
...
9,737
9,659
163921952.LC.FTS.B,
13.08%,
12/27/22
..
4,626
4,526
163941621.LC.FTS.B,
20.55%,
12/27/22
..
8,764
8,782
163868384.LC.FTS.B,
23.05%,
12/27/22
..
2,847
2,859
163925598.LC.FTS.B,
23.05%,
12/27/22
..
8,016
267
163869594.LC.FTS.B,
25.65%,
12/27/22
..
5,196
5,106
163871880.LC.FTS.B,
25.65%,
12/27/22
..
7,652
7,677
163925247.LC.FTS.B,
25.65%,
12/27/22
..
4,672
4,656
163150963.LC.FTS.B,
20.55%,
12/30/22
..
5,194
5,058
164015868.LC.FTS.B,
23.05%,
12/30/22
..
952
938
164046739.LC.FTS.B,
23.05%,
12/30/22
..
480
476
164077353.LC.FTS.B,
15.24%,
12/31/22
..
8,226
8,062
163637444.LC.FTS.B,
20.55%,
12/31/22
..
7,670
7,552
164071817.LC.FTS.B,
10.33%,
1/03/23
...
1,398
1,372
164643957.LC.FTS.B,
6.46%,
1/10/23
...
1,065
1,055
164734842.LC.FTS.B,
6.46%,
1/14/23
...
10,737
10,617
164879386.LC.FTS.B,
6.46%,
1/14/23
...
2,213
2,203
164753318.LC.FTS.B,
7.56%,
1/14/23
...
4,074
4,032
164786863.LC.FTS.B,
10.33%,
1/14/23
...
1,496
1,469
164807045.LC.FTS.B,
11.71%,
1/14/23
...
3,164
2,505
164808805.LC.FTS.B,
13.08%,
1/14/23
...
3,452
3,393
165032371.LC.FTS.B,
7.56%,
1/21/23
...
10,863
10,756
164976165.LC.FTS.B,
11.02%,
1/21/23
...
2,028
1,967
164689412.LC.FTS.B,
11.71%,
1/21/23
...
2,269
2,232
165209265.LC.FTS.B,
13.08%,
1/21/23
...
14,607
14,235
165299446.LC.FTS.B,
17.74%,
1/21/23
...
1,507
1,486
165466706.LC.FTS.B,
7.56%,
1/24/23
...
3,430
3,395
165386603.LC.FTS.B,
8.19%,
1/24/23
...
10,936
10,830
165519373.LC.FTS.B,
8.19%,
1/24/23
...
306
305
165504889.LC.FTS.B,
8.81%,
1/24/23
...
825
818
165073250.LC.FTS.B,
12.4%,
1/24/23
...
5,719
5,618
163866777.LC.FTS.B,
14.3%,
1/24/23
...
8,123
7,900
Description
Principal
Amount
Value
LendingClub
Corp.
-
LCX
(continued)
163911666.LC.FTS.B,
15.24%,
1/24/23
...
$
10,946
$
10,801
165529419.LC.FTS.B,
16.95%,
1/24/23
...
2,312
2,246
165216714.LC.FTS.B,
17.74%,
1/24/23
...
10,061
9,793
164710540.LC.FTS.B,
6.46%,
1/27/23
...
6,710
6,642
165116341.LC.FTS.B,
6.46%,
1/27/23
....
2,804
2,779
164964075.LC.FTS.B,
8.81%,
1/27/23
...
742
733
165175377.LC.FTS.B,
8.81%,
1/27/23
...
4,679
4,631
164685625.LC.FTS.B,
10.33%,
1/27/23
...
6,712
6,599
165576005.LC.FTS.B,
16.12%,
1/27/23
...
9,869
9,704
165397059.LC.FTS.B,
17.74%,
1/27/23
...
3,014
2,975
165575241.LC.FTS.B,
17.74%,
1/27/23
...
5,359
5,289
165064126.LC.FTS.B,
13.08%,
1/28/23
...
6,754
6,634
165562480.LC.FTS.B,
6.46%,
1/31/23
...
115
113
165899098.LC.FTS.B,
17.74%,
2/04/23
...
4,710
4,365
166123497.LC.FTS.B,
8.81%,
2/05/23
...
6,703
6,619
166141899.LC.FTS.B,
6.46%,
2/07/23
...
10,410
10,284
166191657.LC.FTS.B,
7.02%,
2/07/23
...
12,047
11,894
166195099.LC.FTS.B,
7.56%,
2/07/23
...
9,567
9,447
166496776.LC.FTS.B,
7.56%,
2/11/23
....
12,079
11,929
166505020.LC.FTS.B,
8.19%,
2/11/23
....
9,658
9,541
166520793.LC.FTS.B,
14.3%,
2/11/23
....
3,023
2,822
166669255.LC.FTS.B,
15.24%,
2/14/23
...
1,553
1,485
165115069.LC.FTS.B,
11.71%,
2/18/23
...
909
894
166744387.LC.FTS.B,
16.12%,
2/18/23
...
9,956
9,476
166966308.LC.FTS.B,
16.12%,
2/19/23
...
818
781
167030788.LC.FTS.B,
13.08%,
2/28/23
...
12,718
12,480
167023907.LC.FTS.B,
17.74%,
2/28/23
...
2,116
400
167114304.LC.FTS.B,
17.74%,
2/28/23
...
3,326
3,274
167520510.LC.FTS.B,
23.05%,
2/28/23
...
9,624
9,342
167126995.LC.FTS.B,
23.05%,
3/02/23
...
13,434
12,146
167907245.LC.FTS.B,
6.46%,
3/06/23
...
8,579
8,188
168159441.LC.FTS.B,
8.81%,
3/11/23
....
6,679
6,386
167837487.LC.FTS.B,
14.3%,
3/16/23
...
10,583
9,654
168351728.LC.FTS.B,
14.3%,
3/16/23
...
3,739
3,552
148884785.LC.FTS.B,
13.08%,
4/09/24
...
19,163
18,700
157686946.LC.FTS.B,
16.12%,
8/28/24
...
5,659
5,535
159198648.LC.FTS.B,
17.74%,
9/25/24
...
8,868
8,597
158981937.LC.FTS.B,
16.12%,
9/26/24
...
8,736
8,493
161864961.LC.FTS.B,
12.4%,
11/14/24
...
13,437
12,723
161858763.LC.FTS.B,
14.3%,
11/14/24
...
2,969
2,827
161888275.LC.FTS.B,
15.24%,
11/14/24
..
9,145
8,715
162030908.LC.FTS.B,
12.4%,
11/19/24
...
9,487
8,314
162266279.LC.FTS.B,
11.02%,
11/22/24
..
17,535
16,731
162966512.LC.FTS.B,
11.02%,
12/12/24
..
13,921
12,036
162318190.LC.FTS.B,
13.08%,
12/13/24
..
3,310
2,859
163115691.LC.FTS.B,
13.08%,
12/13/24
..
23,294
22,221
163292439.LC.FTS.B,
8.19%,
12/18/24
...
10,124
8,955
163517783.LC.FTS.B,
13.08%,
12/18/24
..
14,710
12,993
163658787.LC.FTS.B,
10.33%,
12/23/24
..
5,912
5,314
163803194.LC.FTS.B,
23.05%,
12/26/24
..
7,369
7,062
163556130.LC.FTS.B,
Zero
Cpn,
12/27/24
25,445
2,409
163438746.LC.FTS.B,
17.74%,
12/27/24
..
1,538
1,513
163510988.LC.FTS.B,
18.62%,
12/27/24
..
22,061
20,390
163479653.LC.FTS.B,
20.55%,
12/30/24
..
7,746
7,394
163615560.LC.FTS.B,
20.55%,
12/30/24
..
10,069
9,498
163919650.LC.FTS.B,
20.55%,
12/30/24
..
4,095
3,863
163989384.LC.FTS.B,
23.05%,
12/30/24
..
13,698
12,917
164031282.LC.FTS.B,
12.4%,
12/31/24
...
26,046
24,540
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
(continued)
164083561.LC.FTS.B,
12.4%,
12/31/24
...
$
16,455
$
2,743
164050345.LC.FTS.B,
13.08%,
12/31/24
..
18,863
17,821
164067189.LC.FTS.B,
13.08%,
12/31/24
..
23,765
22,372
164510336.LC.FTS.B,
13.08%,
1/10/25
...
18,927
17,106
165144136.LC.FTS.B,
14.3%,
1/21/25
...
18,601
1,783
165291472.LC.FTS.B,
14.3%,
1/21/25
...
22,666
20,069
165441115.LC.FTS.B,
8.81%,
1/24/25
....
9,789
8,680
164939734.LC.FTS.B,
20.55%,
1/24/25
...
7,133
6,762
164586812.LC.FTS.B,
8.19%,
1/27/25
...
8,345
7,662
165535605.LC.FTS.B,
12.4%,
1/28/25
...
14,859
9,183
165115667.LC.FTS.B,
20.55%,
1/28/25
...
16,846
15,915
165510737.LC.FTS.B,
8.19%,
1/30/25
...
14,787
13,340
165594623.LC.FTS.B,
13.08%,
2/03/25
...
17,561
16,545
166081454.LC.FTS.B,
8.19%,
2/07/25
...
24,646
23,816
166039716.LC.FTS.B,
10.33%,
2/07/25
...
25,087
23,650
166603986.LC.FTS.B,
10.33%,
2/14/25
...
13,211
12,464
166880211.LC.FTS.B,
8.19%,
2/18/25
....
12,257
10,996
167015464.LC.FTS.B,
8.19%,
2/24/25
...
2,524
2,311
166833583.LC.FTS.B,
13.08%,
2/24/25
...
17,133
15,182
167466589.LC.FTS.B,
8.19%,
2/27/25
...
8,010
7,323
167114763.LC.FTS.B,
13.08%,
2/28/25
...
5,146
5,028
166272136.LC.FTS.B,
18.62%,
2/28/25
...
14,984
13,863
168006688.LC.FTS.B,
8.19%,
3/09/25
...
17,891
15,820
168296354.LC.FTS.B,
13.08%,
3/13/25
...
13,784
12,214
985,268
LendingClub
Corp.
-
LCX
PM
170202543.LC.FTS.B,
20.74%,
9/04/23
...
4,391
4,257
169784370.LC.FTS.B,
9.56%,
9/11/23
....
9,649
9,350
170358835.LC.FTS.B,
9.56%,
9/11/23
....
10,157
9,842
169579201.LC.FTS.B,
10.81%,
9/14/23
...
15,406
14,978
170342257.LC.FTS.B,
10.81%,
9/14/23
...
5,128
4,910
170457540.LC.FTS.B,
10.81%,
9/16/23
...
2,562
2,492
170196349.LC.FTS.B,
10.81%,
9/17/23
...
2,562
2,478
170462708.LC.FTS.B,
10.81%,
9/17/23
...
10,250
9,913
170309569.LC.FTS.B,
19.12%,
9/17/23
...
3,252
3,088
170439611.LC.FTS.B,
10.81%,
9/18/23
...
7,687
7,422
170551033.LC.FTS.B,
15.4%,
9/18/23
...
15,883
15,171
170606862.LC.FTS.B,
9.56%,
9/22/23
...
7,110
6,878
170212064.LC.FTS.B,
10.19%,
9/22/23
...
5,940
5,644
170617520.LC.FTS.B,
10.81%,
9/22/23
...
9,737
9,255
170657782.LC.FTS.B,
19.95%,
9/22/23
...
6,455
6,038
170507906.LC.FTS.B,
10.81%,
9/23/23
...
3,075
2,965
170767991.LC.FTS.B,
15.4%,
9/23/23
...
1,059
1,032
170374076.LC.FTS.B,
18.24%,
9/23/23
...
2,703
2,619
170727301.LC.FTS.B,
18.24%,
9/23/23
...
1,622
1,574
170641460.LC.FTS.B,
14.02%,
9/24/23
...
4,509
4,312
170787127.LC.FTS.B,
19.12%,
9/25/23
...
1,655
128
170175358.LC.FTS.B,
9.56%,
9/28/23
...
2,641
2,570
170726414.LC.FTS.B,
9.56%,
9/28/23
...
6,094
5,878
170680534.LC.FTS.B,
10.19%,
9/28/23
...
5,430
942
170377461.LC.FTS.B,
10.81%,
9/28/23
...
8,712
8,476
170702407.LC.FTS.B,
10.81%,
9/28/23
...
5,637
5,372
170543657.LC.FTS.B,
Zero
Cpn,
9/29/23
.
777
–
170157478.LC.FTS.B,
8.46%,
9/29/23
...
7,925
7,506
170737567.LC.FTS.B,
9.56%,
9/29/23
...
535
511
170160522.LC.FTS.B,
10.19%,
9/29/23
...
13,153
12,261
170182380.LC.FTS.B,
10.81%,
9/29/23
...
6,483
6,103
Description
Principal
Amount
Value
LendingClub
Corp.
-
LCX
PM
(continued)
170452897.LC.FTS.B,
10.81%,
9/29/23
...
$
1,703
$
601
170808772.LC.FTS.B,
10.81%,
9/29/23
...
15,122
14,541
170814981.LC.FTS.B,
10.81%,
9/29/23
...
12,274
10,614
170736018.LC.FTS.B,
14.71%,
9/29/23
...
13,864
13,275
170877107.LC.FTS.B,
17.3%,
9/29/23
...
8,487
7,893
170798886.LC.FTS.B,
9.02%,
9/30/23
...
10,139
9,740
170268845.LC.FTS.B,
10.19%,
9/30/23
...
8,086
7,652
170929457.LC.FTS.B,
14.02%,
9/30/23
...
662
630
169998063.LC.FTS.B,
Zero
Cpn,
10/01/23
17,546
–
170809334.LC.FTS.B,
8.46%,
10/01/23
...
13,100
1,507
170891169.LC.FTS.B,
8.46%,
10/01/23
...
2,753
2,709
170837848.LC.FTS.B,
9.56%,
10/01/23
...
16,069
15,431
170013981.LC.FTS.B,
10.81%,
10/01/23
..
6,483
6,083
170847160.LC.FTS.B,
10.81%,
10/01/23
..
1,297
1,241
170925898.LC.FTS.B,
14.02%,
10/01/23
..
5,587
5,260
170764071.LC.FTS.B,
9.02%,
10/02/23
...
50
50
170947773.LC.FTS.B,
8.46%,
10/05/23
...
3,810
3,676
170705708.LC.FTS.B,
9.56%,
10/05/23
...
8,035
7,516
170930834.LC.FTS.B,
10.19%,
10/06/23
..
13,449
12,782
170985931.LC.FTS.B,
10.81%,
10/06/23
..
16,208
15,261
171178790.LC.FTS.B,
8.46%,
10/14/23
...
8,000
7,550
171220560.LC.FTS.B,
8.46%,
10/14/23
...
15,947
15,336
171214747.LC.FTS.B,
9.56%,
10/14/23
...
13,490
12,963
171236311.LC.FTS.B,
9.56%,
10/14/23
...
8,035
7,840
171032133.LC.FTS.B,
10.81%,
10/14/23
..
1,080
1,039
170963456.LC.FTS.B,
19.95%,
10/14/23
..
11,473
11,061
171252541.LC.FTS.B,
10.19%,
10/15/23
..
807
781
171215486.LC.FTS.B,
10.81%,
10/15/23
..
2,701
2,570
171268315.LC.FTS.B,
19.12%,
10/15/23
..
735
723
171271973.LC.FTS.B,
19.12%,
10/15/23
..
5,707
5,507
171342918.LC.FTS.B,
9.02%,
10/20/23
...
3,471
3,285
171218548.LC.FTS.B,
9.56%,
10/20/23
...
5,892
5,631
171361625.LC.FTS.B,
10.19%,
10/20/23
..
5,357
5,167
171055998.LC.FTS.B,
14.02%,
10/20/23
..
9,385
8,914
171428113.LC.FTS.B,
18.24%,
10/20/23
..
9,647
9,098
171357136.LC.FTS.B,
9.02%,
10/21/23
...
5,629
5,324
171245584.LC.FTS.B,
8.46%,
10/22/23
...
2,924
2,821
171373758.LC.FTS.B,
10.19%,
10/22/23
..
16,139
15,518
171444548.LC.FTS.B,
10.81%,
10/22/23
..
16,226
15,792
170652695.LC.FTS.B,
14.02%,
10/22/23
..
2,765
2,644
170976689.LC.FTS.B,
8.46%,
10/28/23
...
7,176
6,901
171446797.LC.FTS.B,
9.56%,
10/28/23
...
8,035
7,499
171666793.LC.FTS.B,
18.24%,
10/28/23
..
4,540
4,355
171974686.LC.FTS.B,
10.81%,
11/17/23
..
3,974
3,790
172045506.LC.FTS.B,
10.81%,
11/17/23
..
14,195
13,448
172080082.LC.FTS.B,
9.02%,
11/18/23
...
14,031
13,514
172099990.LC.FTS.B,
16.08%,
11/19/23
..
1,175
1,141
172294502.LC.FTS.B,
8.46%,
11/24/23
...
5,592
5,386
171941466.LC.FTS.B,
10.81%,
11/24/23
..
6,814
6,318
172473775.LC.FTS.B,
10.81%,
12/01/23
..
2,520
2,389
172262310.LC.FTS.B,
9.56%,
12/04/23
...
7,087
6,793
173165582.LC.FTS.B,
10.19%,
12/23/23
..
7,114
6,769
172625256.LC.FTS.B,
14.71%,
12/23/23
..
24,362
23,693
172851902.LC.FTS.B,
19.12%,
12/23/23
..
880
866
173236004.LC.FTS.B,
19.12%,
12/23/23
..
6,246
6,063
173214358.LC.FTS.B,
19.12%,
12/28/23
..
6,246
6,072
173352354.LC.FTS.B,
15.4%,
12/29/23
...
4,379
4,235
173241001.LC.FTS.B,
17.3%,
12/29/23
...
2,447
2,374
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
87
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
PM
(continued)
173377840.LC.FTS.B,
19.12%,
12/29/23
..
$
2,604
$
2,525
173362025.LC.FTS.B,
20.74%,
12/29/23
..
4,923
4,773
173536070.LC.FTS.B,
16.08%,
1/05/24
...
1,601
1,557
173391094.LC.FTS.B,
17.3%,
1/05/24
...
1,934
1,859
173001117.LC.FTS.B,
19.12%,
1/05/24
...
7,926
7,723
173509997.LC.FTS.B,
10.81%,
1/06/24
...
3,111
2,953
173417195.LC.FTS.B,
14.71%,
1/06/24
...
9,537
9,227
173442816.LC.FTS.B,
20.74%,
1/06/24
...
19,077
18,411
173451209.LC.FTS.B,
18.24%,
1/08/24
...
21,144
19,912
172997854.LC.FTS.B,
19.12%,
1/08/24
...
1,953
1,880
173544565.LC.FTS.B,
19.12%,
1/08/24
...
6,510
6,248
172932879.LC.FTS.B,
15.4%,
1/15/24
...
10,889
10,200
173437405.LC.FTS.B,
16.08%,
1/15/24
...
8,967
8,669
173826580.LC.FTS.B,
16.99%,
1/15/24
...
11,648
11,251
173800712.LC.FTS.B,
8.24%,
1/19/24
...
8,915
8,582
173898269.LC.FTS.B,
16.99%,
1/19/24
...
8,496
8,356
173039198.LC.FTS.B,
17.3%,
1/19/24
...
6,776
6,463
173997873.LC.FTS.B,
17.49%,
1/20/24
...
7,099
6,962
173925637.LC.FTS.B,
19.12%,
1/20/24
...
3,255
3,147
173397544.LC.FTS.B,
20.74%,
1/20/24
...
2,363
2,284
173912279.LC.FTS.B,
9.99%,
1/21/24
...
8,050
7,540
173627309.LC.FTS.B,
12.34%,
1/21/24
...
12,590
12,066
174033886.LC.FTS.B,
12.49%,
1/21/24
...
16,654
16,304
173996422.LC.FTS.B,
13.19%,
1/21/24
...
1,135
1,118
174033162.LC.FTS.B,
16.49%,
1/21/24
...
1,605
1,580
173852092.LC.FTS.B,
20.44%,
1/21/24
...
9,832
9,642
173972079.LC.FTS.B,
12.49%,
1/22/24
...
16,056
15,338
173761616.LC.FTS.B,
16.49%,
1/22/24
...
1,427
1,407
174075262.LC.FTS.B,
16.49%,
1/22/24
...
11,282
11,074
174050191.LC.FTS.B,
16.99%,
1/22/24
...
3,218
3,149
174172795.LC.FTS.B,
15.99%,
1/27/24
...
4,470
4,336
174195278.LC.FTS.B,
16.49%,
1/27/24
...
3,852
3,795
174097614.LC.FTS.B,
19.49%,
1/27/24
...
19,567
19,220
174192330.LC.FTS.B,
20.74%,
1/27/24
...
10,515
10,315
174098270.LC.FTS.B,
6.74%,
2/01/24
...
12,697
12,106
174115077.LC.FTS.B,
8.49%,
2/01/24
....
19,228
18,496
174204894.LC.FTS.B,
12.34%,
2/01/24
...
9,812
9,349
174134025.LC.FTS.B,
16.99%,
2/01/24
...
13,440
13,159
174276782.LC.FTS.B,
17.19%,
2/01/24
...
670
656
170431322.LC.FTS.B,
18.24%,
9/14/25
...
3,873
3,697
170592201.LC.FTS.B,
14.02%,
9/16/25
...
15,098
14,351
170055181.LC.FTS.B,
16.08%,
9/16/25
...
11,470
11,067
170200705.LC.FTS.B,
19.95%,
9/16/25
...
11,733
11,204
170163928.LC.FTS.B,
15.4%,
9/18/25
...
7,645
7,390
170252312.LC.FTS.B,
16.08%,
9/18/25
...
5,838
5,721
170639161.LC.FTS.B,
19.12%,
9/18/25
...
7,785
7,443
169850794.LC.FTS.B,
16.08%,
9/22/25
...
11,469
10,821
170786159.LC.FTS.B,
14.02%,
9/25/25
...
18,118
16,764
170812112.LC.FTS.B,
14.02%,
9/29/25
...
15,384
14,398
170992474.LC.FTS.B,
17.3%,
10/02/25
...
7,840
7,447
171032242.LC.FTS.B,
19.12%,
10/02/25
..
11,879
11,280
170941274.LC.FTS.B,
16.08%,
10/05/25
..
23,356
21,871
171264911.LC.FTS.B,
19.12%,
10/14/25
..
11,879
11,320
170964676.LC.FTS.B,
19.95%,
10/14/25
..
8,187
7,821
171461721.LC.FTS.B,
16.08%,
10/20/25
..
8,543
8,241
170983832.LC.FTS.B,
20.74%,
10/20/25
..
20,608
19,514
171322854.LC.FTS.B,
16.08%,
10/22/25
..
19,464
18,477
172014503.LC.FTS.B,
14.02%,
11/17/25
..
17,445
16,197
Description
Principal
Amount
Value
LendingClub
Corp.
-
LCX
PM
(continued)
172156822.LC.FTS.B,
14.02%,
11/24/25
..
$
7,833
$
6,975
172665217.LC.FTS.B,
15.4%,
12/04/25
...
9,637
9,305
172752552.LC.FTS.B,
16.08%,
12/10/25
..
9,670
9,347
173223703.LC.FTS.B,
13.33%,
12/23/25
..
28,659
27,681
173203429.LC.FTS.B,
15.4%,
12/23/25
...
27,088
26,154
173295643.LC.FTS.B,
19.12%,
12/28/25
..
9,817
9,451
173303101.LC.FTS.B,
19.95%,
12/29/25
..
12,672
12,131
172820246.LC.FTS.B,
15.4%,
12/30/25
...
22,863
22,065
173270899.LC.FTS.B,
15.4%,
1/05/26
...
32,975
30,946
172611713.LC.FTS.B,
19.12%,
1/05/26
...
13,382
12,807
173493292.LC.FTS.B,
19.95%,
1/05/26
...
12,109
11,591
173550582.LC.FTS.B,
19.95%,
1/05/26
...
8,339
7,929
172843470.LC.FTS.B,
16.08%,
1/06/26
...
14,746
14,343
173301532.LC.FTS.B,
17.3%,
1/06/26
...
24,718
23,258
173580706.LC.FTS.B,
17.3%,
1/06/26
...
19,286
18,471
173496629.LC.FTS.B,
16.08%,
1/08/26
...
22,688
20,687
172757520.LC.FTS.B,
19.12%,
1/08/26
...
9,706
9,331
173772624.LC.FTS.B,
14.44%,
1/15/26
...
4,064
3,891
173785381.LC.FTS.B,
16.74%,
1/15/26
...
13,149
12,882
173816609.LC.FTS.B,
19.44%,
1/15/26
...
4,160
4,024
173854798.LC.FTS.B,
21.49%,
1/15/26
...
8,426
8,176
173871807.LC.FTS.B,
21.99%,
1/15/26
...
10,143
9,880
173737758.LC.FTS.B,
9.59%,
1/19/26
...
16,704
15,772
173910442.LC.FTS.B,
17.24%,
1/19/26
...
16,549
16,243
173821408.LC.FTS.B,
21.49%,
1/19/26
...
13,096
12,763
173841383.LC.FTS.B,
21.49%,
1/19/26
...
25,323
24,693
173896730.LC.FTS.B,
23.99%,
1/19/26
...
8,483
8,263
173933933.LC.FTS.B,
13.49%,
1/20/26
...
16,179
15,193
173875674.LC.FTS.B,
14.74%,
1/20/26
...
29,303
26,836
173856403.LC.FTS.B,
14.99%,
1/20/26
...
19,559
17,835
173682030.LC.FTS.B,
15.4%,
1/20/26
...
11,432
10,985
173956639.LC.FTS.B,
18.19%,
1/20/26
...
5,481
5,308
173998821.LC.FTS.B,
21.49%,
1/20/26
...
8,395
8,184
173430770.LC.FTS.B,
13.33%,
1/21/26
...
33,055
30,952
174067801.LC.FTS.B,
15.24%,
1/22/26
...
12,239
12,009
174045948.LC.FTS.B,
17.44%,
1/22/26
...
15,665
15,367
174087634.LC.FTS.B,
23.99%,
1/22/26
...
12,725
12,414
174177272.LC.FTS.B,
16.49%,
1/27/26
...
9,850
9,671
173813936.LC.FTS.B,
19.74%,
1/27/26
...
19,995
19,539
174031108.LC.FTS.B,
21.99%,
1/27/26
...
28,730
28,072
174278232.LC.FTS.B,
23.99%,
2/01/26
...
25,703
24,885
1,736,562
Prosper
Funding
LLC
1473148.PS.FTS.B,
13.99%,
11/12/23
....
2,581
2,545
1484667.PS.FTS.B,
12.74%,
11/17/23
....
2,298
2,270
1472000.PS.FTS.B,
11.99%,
11/18/23
....
5,718
5,646
1478692.PS.FTS.B,
18.99%,
11/24/23
....
3,373
3,323
1475141.PS.FTS.B,
23.2%,
11/25/23
....
5,987
5,927
1501929.PS.FTS.B,
14.19%,
12/22/23
...
5,463
5,360
1491946.PS.FTS.B,
15.49%,
12/22/23
...
1,529
1,500
1579196.PS.FTS.B,
25.75%,
6/29/24
....
6,938
6,621
1602993.PS.FTS.B,
8.7%,
7/23/24
......
19,342
19,154
1602999.PS.FTS.B,
14.24%,
7/23/24
....
6,702
6,514
1592858.PS.FTS.B,
16.6%,
7/23/24
.....
10,567
10,189
1609512.PS.FTS.B,
16%,
8/05/24
.......
7,353
7,036
1603033.PS.FTS.B,
24.6%,
8/05/24
.....
6,689
6,406
1603345.PS.FTS.B,
12.8%,
8/06/24
.....
2,429
2,356
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1603735.PS.FTS.B,
14.7%,
8/06/24
.....
$
9,768
$
9,351
1603741.PS.FTS.B,
16.6%,
8/06/24
.....
6,138
5,875
1610577.PS.FTS.B,
19.8%,
8/06/24
.....
5,388
5,155
1611408.PS.FTS.B,
15.4%,
8/09/24
.....
8,156
7,817
1604533.PS.FTS.B,
17.1%,
8/09/24
.....
8,195
7,861
1611363.PS.FTS.B,
18.24%,
8/09/24
....
9,865
9,453
1610856.PS.FTS.B,
18.3%,
8/09/24
.....
8,258
7,913
1602188.PS.FTS.B,
14.29%,
8/10/24
....
6,642
6,642
1602386.PS.FTS.B,
14.49%,
8/10/24
....
2,440
2,384
1602197.PS.FTS.B,
18.41%,
8/10/24
....
4,061
3,894
1602614.PS.FTS.B,
19.8%,
8/10/24
.....
8,274
7,932
1613184.PS.FTS.B,
15.6%,
8/11/24
.....
8,160
7,828
1612815.PS.FTS.B,
16.6%,
8/11/24
.....
8,184
7,849
1600076.PS.FTS.B,
12.7%,
8/12/24
.....
3,200
3,095
1604249.PS.FTS.B,
13.4%,
8/13/24
.....
4,460
4,321
1610184.PS.FTS.B,
13.4%,
8/15/24
.....
10,585
10,256
1613274.PS.FTS.B,
14.39%,
8/16/24
....
17,937
17,401
1611393.PS.FTS.B,
17%,
8/20/24
.......
4,946
4,746
1618425.PS.FTS.B,
19.8%,
8/20/24
.....
16,512
15,931
1608881.PS.FTS.B,
14.7%,
8/23/24
.....
2,442
2,354
1618983.PS.FTS.B,
19.8%,
8/23/24
.....
5,532
5,346
1613407.PS.FTS.B,
25%,
8/24/24
.......
1,674
1,624
1609535.PS.FTS.B,
26.21%,
8/24/24
....
8,395
8,141
1614016.PS.FTS.B,
14.89%,
8/25/24
....
7,738
7,464
1610579.PS.FTS.B,
15%,
8/25/24
.......
4,073
3,929
1620933.PS.FTS.B,
15.7%,
8/25/24
.....
7,947
7,667
1620627.PS.FTS.B,
16.9%,
8/25/24
.....
9,268
8,935
1621098.PS.FTS.B,
17.5%,
8/25/24
.....
4,102
3,969
1610624.PS.FTS.B,
20.9%,
8/25/24
.....
5,848
5,654
1610537.PS.FTS.B,
20.96%,
8/25/24
....
12,992
1,907
1615387.PS.FTS.B,
15.1%,
8/27/24
.....
4,194
4,049
1622424.PS.FTS.B,
16.1%,
8/27/24
.....
3,364
3,247
1612397.PS.FTS.B,
20.8%,
8/27/24
.....
10,762
10,414
1617541.PS.FTS.B,
19.3%,
8/31/24
.....
10,080
9,610
1623215.PS.FTS.B,
24.81%,
9/20/24
....
7,436
7,170
1634217.PS.FTS.B,
24.51%,
9/21/24
....
8,574
8,284
1623656.PS.FTS.B,
25.71%,
9/21/24
....
8,597
8,305
1628356.PS.FTS.B,
11.6%,
9/22/24
.....
2,079
2,021
1628362.PS.FTS.B,
11.7%,
9/22/24
.....
5,821
5,661
1635087.PS.FTS.B,
12.3%,
9/22/24
.....
8,329
8,099
1635063.PS.FTS.B,
14.56%,
9/22/24
....
9,549
9,285
1624643.PS.FTS.B,
15.12%,
9/22/24
....
3,247
3,132
1628341.PS.FTS.B,
15.9%,
9/22/24
.....
6,590
6,356
1635060.PS.FTS.B,
16.64%,
9/22/24
....
12,629
12,177
1624631.PS.FTS.B,
17.8%,
9/22/24
.....
14,029
2,010
1624646.PS.FTS.B,
18.4%,
9/22/24
.....
2,537
2,448
1624622.PS.FTS.B,
18.41%,
9/22/24
....
13,488
13,004
1628338.PS.FTS.B,
18.41%,
9/22/24
....
8,415
8,114
1624811.PS.FTS.B,
24.09%,
9/22/24
....
2,998
2,899
1635348.PS.FTS.B,
26.3%,
9/22/24
.....
1,722
1,664
1635891.PS.FTS.B,
13.7%,
9/23/24
.....
1,672
1,626
1635768.PS.FTS.B,
14.89%,
9/23/24
....
8,276
7,985
1629058.PS.FTS.B,
15.7%,
9/23/24
.....
2,100
2,026
1635762.PS.FTS.B,
17.96%,
9/23/24
....
5,465
5,273
1625948.PS.FTS.B,
11.6%,
9/24/24
.....
8,314
8,089
1626509.PS.FTS.B,
12.3%,
9/24/24
.....
9,162
8,914
1636260.PS.FTS.B,
12.76%,
9/24/24
....
1,668
1,623
1636335.PS.FTS.B,
13%,
9/24/24
.......
12,516
12,176
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1630123.PS.FTS.B,
13.2%,
9/24/24
.....
$
5,667
$
5,533
1636458.PS.FTS.B,
13.8%,
9/24/24
.....
3,762
3,660
1629274.PS.FTS.B,
13.9%,
9/24/24
.....
3,345
3,254
1636257.PS.FTS.B,
14.56%,
9/24/24
....
11,113
10,805
1636308.PS.FTS.B,
14.56%,
9/24/24
....
2,513
2,445
1626353.PS.FTS.B,
15.5%,
9/24/24
.....
12,594
12,154
1626602.PS.FTS.B,
16.1%,
9/24/24
.....
3,978
3,842
1625990.PS.FTS.B,
16.28%,
9/24/24
....
29,442
28,412
1625708.PS.FTS.B,
17.8%,
9/24/24
.....
10,131
9,790
1629244.PS.FTS.B,
17.96%,
9/24/24
....
8,193
7,905
1636317.PS.FTS.B,
18.2%,
9/24/24
.....
3,380
3,266
1636947.PS.FTS.B,
20.34%,
9/24/24
....
1,699
1,641
1634199.PS.FTS.B,
22.9%,
9/25/24
.....
8,567
8,268
1630390.PS.FTS.B,
11.6%,
9/27/24
.....
8,560
8,335
1630750.PS.FTS.B,
11.7%,
9/27/24
.....
10,170
9,904
1637526.PS.FTS.B,
12.3%,
9/27/24
.....
12,860
12,521
1630264.PS.FTS.B,
13.3%,
9/27/24
.....
3,426
3,336
1626854.PS.FTS.B,
15%,
9/27/24
.......
3,449
3,333
1626884.PS.FTS.B,
15%,
9/27/24
.......
6,898
6,665
1637235.PS.FTS.B,
15.1%,
9/27/24
.....
4,312
4,166
1626683.PS.FTS.B,
15.4%,
9/27/24
.....
4,315
4,169
1637193.PS.FTS.B,
15.4%,
9/27/24
.....
20,185
19,511
1637196.PS.FTS.B,
15.4%,
9/27/24
.....
7,335
7,087
1630384.PS.FTS.B,
16%,
9/27/24
.......
8,638
8,346
1630447.PS.FTS.B,
16%,
9/27/24
.......
3,456
3,339
1637214.PS.FTS.B,
16.39%,
9/27/24
....
5,847
5,649
1630396.PS.FTS.B,
16.43%,
9/27/24
....
16,518
15,959
1630414.PS.FTS.B,
16.43%,
9/27/24
....
1,730
1,671
1637574.PS.FTS.B,
18.5%,
9/27/24
.....
4,342
4,203
1626842.PS.FTS.B,
20.01%,
9/27/24
....
6,387
6,180
1630381.PS.FTS.B,
20.8%,
9/27/24
.....
7,852
7,598
1627679.PS.FTS.B,
11.7%,
9/28/24
.....
4,281
4,215
1630936.PS.FTS.B,
12%,
9/28/24
.......
7,197
7,088
1631188.PS.FTS.B,
13.36%,
9/28/24
....
9,022
8,896
1638180.PS.FTS.B,
13.36%,
9/28/24
....
12,889
12,708
1630918.PS.FTS.B,
13.8%,
9/28/24
.....
6,881
6,786
1630933.PS.FTS.B,
13.81%,
9/28/24
....
12,901
12,725
1630822.PS.FTS.B,
13.86%,
9/28/24
....
13,763
13,479
1638321.PS.FTS.B,
13.9%,
9/28/24
.....
9,463
9,334
1627928.PS.FTS.B,
14.7%,
9/28/24
.....
4,990
4,823
1627706.PS.FTS.B,
15.1%,
9/28/24
.....
1,725
1,691
1627796.PS.FTS.B,
15.4%,
9/28/24
.....
8,630
8,462
1628048.PS.FTS.B,
15.4%,
9/28/24
.....
6,227
6,052
1630837.PS.FTS.B,
15.4%,
9/28/24
.....
4,315
4,231
1638096.PS.FTS.B,
16.1%,
9/28/24
.....
4,321
4,240
1638108.PS.FTS.B,
16.5%,
9/28/24
.....
8,854
8,708
1638183.PS.FTS.B,
17.71%,
9/28/24
....
10,786
10,441
1638078.PS.FTS.B,
18.11%,
9/28/24
....
10,413
10,233
1627961.PS.FTS.B,
19.3%,
9/28/24
.....
1,740
1,715
1631467.PS.FTS.B,
20.46%,
9/28/24
....
11,944
11,782
1638306.PS.FTS.B,
21.56%,
9/28/24
....
4,998
4,837
1639245.PS.FTS.B,
11.6%,
9/29/24
.....
4,826
4,680
1632058.PS.FTS.B,
12.9%,
9/29/24
.....
4,721
4,572
1632904.PS.FTS.B,
12.3%,
9/30/24
.....
4,286
4,153
1628921.PS.FTS.B,
13.7%,
9/30/24
.....
17,197
16,659
1639584.PS.FTS.B,
14.49%,
9/30/24
....
10,939
10,701
1639332.PS.FTS.B,
16.65%,
9/30/24
....
1,550
1,479
1635648.PS.FTS.B,
17.54%,
9/30/24
....
13,055
12,619
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
89
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1640037.PS.FTS.B,
14.85%,
10/01/24
...
$
1,467
$
1,451
1627514.PS.FTS.B,
13.5%,
10/02/24
....
8,652
8,467
1642194.PS.FTS.B,
19.5%,
10/05/24
....
16,108
15,400
1636828.PS.FTS.B,
16.1%,
10/07/24
....
6,917
6,642
1635077.PS.FTS.B,
20.57%,
10/12/24
...
13,088
12,561
1655337.PS.FTS.B,
12%,
10/27/24
......
7,055
6,850
1645220.PS.FTS.B,
13.5%,
10/27/24
....
17,938
17,499
1655328.PS.FTS.B,
15.4%,
10/27/24
....
2,660
2,574
1648597.PS.FTS.B,
15.5%,
10/27/24
....
8,868
8,583
1648594.PS.FTS.B,
15.9%,
10/27/24
....
6,228
6,047
1655466.PS.FTS.B,
17.8%,
10/27/24
....
13,354
12,925
1648606.PS.FTS.B,
18.11%,
10/27/24
....
2,672
2,586
1656180.PS.FTS.B,
10.8%,
10/28/24
....
7,914
7,801
1656192.PS.FTS.B,
10.97%,
10/28/24
...
4,387
4,314
1649488.PS.FTS.B,
11.7%,
10/28/24
....
9,689
9,558
1646303.PS.FTS.B,
11.89%,
10/28/24
....
13,217
13,039
1656015.PS.FTS.B,
12.3%,
10/28/24
....
8,818
8,702
1649524.PS.FTS.B,
14.39%,
10/28/24
...
1,770
1,737
1649797.PS.FTS.B,
17.05%,
10/28/24
...
12,003
11,805
1649812.PS.FTS.B,
24.09%,
10/28/24
...
1,799
1,782
1656462.PS.FTS.B,
27.62%,
10/28/24
...
13,565
13,477
1647104.PS.FTS.B,
10.8%,
10/29/24
....
4,395
4,268
1647374.PS.FTS.B,
13.13%,
10/29/24
...
6,181
5,934
1650016.PS.FTS.B,
13.5%,
10/29/24
....
17,673
16,965
1650667.PS.FTS.B,
15.2%,
10/29/24
....
11,079
10,634
1657065.PS.FTS.B,
15.29%,
10/29/24
...
8,864
8,508
1650442.PS.FTS.B,
16.57%,
10/29/24
...
13,413
12,925
1656681.PS.FTS.B,
17%,
10/29/24
......
1,778
1,696
1650046.PS.FTS.B,
19.41%,
10/29/24
...
20,425
19,483
1657236.PS.FTS.B,
22.6%,
10/29/24
....
642
620
1657803.PS.FTS.B,
13.13%,
11/01/24
....
9,272
8,908
1648730.PS.FTS.B,
17%,
11/02/24
......
10,668
10,196
1651990.PS.FTS.B,
18.41%,
11/02/24
....
22,278
21,403
1651379.PS.FTS.B,
10.8%,
11/05/24
....
14,069
13,682
1654657.PS.FTS.B,
12.3%,
11/05/24
....
22,043
21,435
1661403.PS.FTS.B,
14.11%,
11/05/24
....
22,114
21,502
1651385.PS.FTS.B,
14.6%,
11/05/24
....
3,541
3,407
1664814.PS.FTS.B,
11.79%,
11/08/24
....
2,945
2,868
1651904.PS.FTS.B,
13.81%,
11/08/24
....
8,841
8,603
1651787.PS.FTS.B,
14.89%,
11/08/24
....
9,105
5,020
1658215.PS.FTS.B,
16%,
11/08/24
......
7,723
7,442
1653476.PS.FTS.B,
10.8%,
11/09/24
....
2,638
2,568
1665852.PS.FTS.B,
11.79%,
11/09/24
....
10,571
10,290
1652624.PS.FTS.B,
12.3%,
11/09/24
....
3,527
3,433
1653332.PS.FTS.B,
12.79%,
11/09/24
....
17,650
17,180
1652882.PS.FTS.B,
13.4%,
11/09/24
....
5,301
5,160
1652855.PS.FTS.B,
13.41%,
11/09/24
....
8,924
8,635
1659070.PS.FTS.B,
13.7%,
11/09/24
....
8,839
8,518
1659052.PS.FTS.B,
15.29%,
11/09/24
....
3,546
3,417
1665843.PS.FTS.B,
15.29%,
11/09/24
....
3,266
752
1653434.PS.FTS.B,
15.4%,
11/09/24
....
2,350
2,270
1659220.PS.FTS.B,
16.6%,
11/09/24
....
8,901
8,560
1652864.PS.FTS.B,
17%,
11/09/24
......
22,225
21,324
1659274.PS.FTS.B,
19.5%,
11/09/24
....
12,498
11,989
1665651.PS.FTS.B,
19.6%,
11/09/24
....
13,393
12,847
1652858.PS.FTS.B,
20.24%,
11/09/24
....
2,681
2,572
1653791.PS.FTS.B,
10.6%,
11/10/24
....
13,185
12,839
1666878.PS.FTS.B,
14.09%,
11/10/24
....
4,423
4,264
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1654004.PS.FTS.B,
15.29%,
11/10/24
....
$
4,432
$
4,272
1654961.PS.FTS.B,
11.88%,
11/12/24
....
13,216
12,875
1654955.PS.FTS.B,
15.5%,
11/12/24
....
8,762
8,454
1660819.PS.FTS.B,
17%,
11/12/24
......
2,667
2,563
1661158.PS.FTS.B,
17%,
11/12/24
......
1,778
1,709
1654835.PS.FTS.B,
17.8%,
11/12/24
....
13,353
7,836
1654616.PS.FTS.B,
18.6%,
11/12/24
....
5,848
5,619
1667760.PS.FTS.B,
19.58%,
11/12/24
....
6,696
6,434
1652873.PS.FTS.B,
19.6%,
11/14/24
....
8,956
8,612
1662559.PS.FTS.B,
13.1%,
11/15/24
....
8,830
8,530
1486265.PS.FTS.B,
19.99%,
11/16/24
....
9,238
9,006
1658144.PS.FTS.B,
14.49%,
11/17/24
....
26,555
26,163
1672080.PS.FTS.B,
18.41%,
11/19/24
....
9,268
8,964
1665015.PS.FTS.B,
12.15%,
11/22/24
....
23,532
5,439
1503354.PS.FTS.B,
20.74%,
11/24/24
....
4,234
4,098
1680283.PS.FTS.B,
11.07%,
12/16/24
....
4,069
3,981
1674119.PS.FTS.B,
11.6%,
12/16/24
.....
9,050
8,853
1674128.PS.FTS.B,
12.3%,
12/16/24
....
2,355
2,304
1687134.PS.FTS.B,
12.6%,
12/16/24
....
6,344
6,154
1686729.PS.FTS.B,
13.36%,
12/16/24
...
13,610
13,313
1679827.PS.FTS.B,
13.4%,
12/16/24
....
5,444
5,325
1687119.PS.FTS.B,
13.5%,
12/16/24
....
13,612
13,203
1680238.PS.FTS.B,
13.81%,
12/16/24
...
22,697
22,202
1673705.PS.FTS.B,
16%,
12/16/24
......
9,107
8,832
1686747.PS.FTS.B,
16.5%,
12/16/24
....
5,389
5,202
1686726.PS.FTS.B,
18.41%,
12/16/24
...
22,842
22,150
1674134.PS.FTS.B,
19.5%,
12/16/24
....
1,830
1,766
1680268.PS.FTS.B,
19.6%,
12/16/24
....
9,151
8,833
1680277.PS.FTS.B,
19.6%,
12/16/24
....
9,151
8,833
1680244.PS.FTS.B,
22.11%,
12/16/24
....
4,536
4,369
1680457.PS.FTS.B,
13.1%,
12/17/24
....
13,956
11,604
1674263.PS.FTS.B,
18.9%,
12/17/24
....
1,829
1,766
1681039.PS.FTS.B,
14.49%,
12/20/24
...
7,270
7,062
1675928.PS.FTS.B,
10.97%,
12/21/24
...
9,042
8,857
1676546.PS.FTS.B,
11.79%,
12/21/24
....
8,362
6,950
1689480.PS.FTS.B,
13.7%,
12/21/24
....
6,354
6,175
1689501.PS.FTS.B,
15.9%,
12/21/24
....
9,106
8,848
1676387.PS.FTS.B,
16.2%,
12/21/24
....
9,109
8,818
1676435.PS.FTS.B,
16.93%,
12/21/24
...
11,398
11,075
1674137.PS.FTS.B,
18.2%,
12/21/24
....
1,832
1,776
1689111.PS.FTS.B,
23.4%,
12/21/24
.....
6,437
6,222
1677272.PS.FTS.B,
11.6%,
12/22/24
....
11,313
11,084
1676915.PS.FTS.B,
12.3%,
12/22/24
....
9,059
8,876
1689882.PS.FTS.B,
15.29%,
12/22/24
...
5,004
4,864
1683052.PS.FTS.B,
16.2%,
12/22/24
....
1,822
1,765
1683121.PS.FTS.B,
16.8%,
12/22/24
....
22,792
22,155
1689870.PS.FTS.B,
18.09%,
12/22/24
...
5,480
5,307
1690275.PS.FTS.B,
21.5%,
12/22/24
....
8,257
7,995
1683241.PS.FTS.B,
22.6%,
12/22/24
....
3,675
3,554
1690668.PS.FTS.B,
25.4%,
12/23/24
....
9,252
8,984
1678466.PS.FTS.B,
11.4%,
12/24/24
....
7,238
7,095
1685272.PS.FTS.B,
16.7%,
12/28/24
....
23,347
23,034
1681405.PS.FTS.B,
16.9%,
12/28/24
....
14,063
13,940
1692336.PS.FTS.B,
21.8%,
12/28/24
....
8,915
8,832
1686262.PS.FTS.B,
10.5%,
12/29/24
....
14,381
14,060
1686151.PS.FTS.B,
14.6%,
12/29/24
....
1,864
1,804
1679818.PS.FTS.B,
17.8%,
12/30/24
....
15,062
14,692
1693752.PS.FTS.B,
23.9%,
12/30/24
....
4,701
4,498
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1680806.PS.FTS.B,
24.4%,
12/30/24
....
$
3,292
$
3,150
1686607.PS.FTS.B,
26.09%,
12/30/24
...
2,826
2,706
1694922.PS.FTS.B,
24.11%,
1/03/25
....
2,821
2,704
1695360.PS.FTS.B,
13.3%,
1/04/25
.....
4,653
4,554
1683092.PS.FTS.B,
24.4%,
1/04/25
.....
4,703
4,511
1695489.PS.FTS.B,
25.4%,
1/04/25
.....
8,944
8,578
1684433.PS.FTS.B,
24.4%,
1/06/25
.....
4,600
4,416
1697064.PS.FTS.B,
24.4%,
1/06/25
.....
1,857
1,784
1684775.PS.FTS.B,
24.11%,
1/07/25
....
6,583
6,327
1687799.PS.FTS.B,
13.41%,
1/12/25
....
13,959
13,583
1694614.PS.FTS.B,
11.4%,
1/13/25
.....
3,715
3,645
1688987.PS.FTS.B,
12%,
1/13/25
.......
8,363
8,205
1694584.PS.FTS.B,
12.2%,
1/13/25
.....
18,589
18,237
1701780.PS.FTS.B,
12.3%,
1/13/25
.....
13,943
13,679
1688552.PS.FTS.B,
13%,
1/13/25
.......
13,460
13,206
1688762.PS.FTS.B,
13.1%,
1/13/25
.....
10,699
10,496
1688570.PS.FTS.B,
13.87%,
1/13/25
....
5,586
5,438
1701390.PS.FTS.B,
14.89%,
1/13/25
....
7,456
7,258
1701399.PS.FTS.B,
16%,
1/13/25
.......
6,532
6,357
1688558.PS.FTS.B,
16.43%,
1/13/25
....
2,801
2,726
1701372.PS.FTS.B,
16.5%,
1/13/25
.....
4,668
4,519
1701342.PS.FTS.B,
17.7%,
1/13/25
.....
23,367
22,619
1694587.PS.FTS.B,
19.6%,
1/13/25
.....
9,364
9,063
1701789.PS.FTS.B,
22.5%,
1/13/25
.....
2,344
2,268
1694602.PS.FTS.B,
23.3%,
1/13/25
.....
9,397
9,068
1701807.PS.FTS.B,
24.09%,
1/13/25
....
1,881
1,815
1688981.PS.FTS.B,
24.5%,
1/13/25
.....
12,230
11,800
1689359.PS.FTS.B,
12.3%,
1/14/25
.....
4,648
4,561
1689362.PS.FTS.B,
13.77%,
1/14/25
....
32,584
31,730
1689344.PS.FTS.B,
13.9%,
1/14/25
.....
9,311
9,067
1695688.PS.FTS.B,
13.96%,
1/14/25
....
6,053
5,939
1702149.PS.FTS.B,
15%,
1/14/25
.......
9,322
9,076
1695340.PS.FTS.B,
15.7%,
1/14/25
.....
9,328
9,083
1689338.PS.FTS.B,
16.02%,
1/14/25
....
15,863
15,365
1689368.PS.FTS.B,
16.2%,
1/14/25
.....
4,666
4,520
1695346.PS.FTS.B,
16.8%,
1/14/25
.....
7,004
6,819
1695364.PS.FTS.B,
16.8%,
1/14/25
.....
4,669
4,546
1695355.PS.FTS.B,
18.4%,
1/14/25
.....
4,677
4,529
1689380.PS.FTS.B,
20.01%,
1/14/25
....
4,268
4,135
1695982.PS.FTS.B,
25.4%,
1/14/25
.....
7,061
6,817
1684772.PS.FTS.B,
24.4%,
1/15/25
.....
4,741
4,586
1696479.PS.FTS.B,
25.4%,
1/16/25
.....
7,072
6,830
1702809.PS.FTS.B,
14.89%,
1/18/25
....
23,301
22,724
1690361.PS.FTS.B,
18.5%,
1/18/25
.....
3,742
3,632
1696480.PS.FTS.B,
18.8%,
1/18/25
.....
4,679
4,541
1697491.PS.FTS.B,
16.7%,
1/19/25
.....
4,669
4,534
1692497.PS.FTS.B,
17.2%,
1/19/25
.....
6,073
5,897
1704390.PS.FTS.B,
17.8%,
1/19/25
.....
1,870
1,816
1705071.PS.FTS.B,
18.7%,
1/19/25
.....
4,678
4,543
1692221.PS.FTS.B,
23%,
1/19/25
.......
6,543
6,338
1691657.PS.FTS.B,
25.11%,
1/19/25
....
4,670
4,523
1699183.PS.FTS.B,
13.05%,
1/20/25
....
32,560
31,781
1706151.PS.FTS.B,
23.13%,
1/20/25
....
2,537
2,464
1706328.PS.FTS.B,
24.4%,
1/21/25
.....
5,643
5,474
1694027.PS.FTS.B,
13.42%,
1/24/25
....
18,613
18,311
1700809.PS.FTS.B,
22.6%,
1/24/25
.....
4,696
4,564
1696034.PS.FTS.B,
13.5%,
1/25/25
.....
1,894
1,853
1709424.PS.FTS.B,
23.4%,
1/26/25
.....
1,879
1,829
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1706926.PS.FTS.B,
19.8%,
2/01/25
.....
$
5,745
$
5,558
1714708.PS.FTS.B,
10.67%,
2/15/25
....
13,326
13,139
1715170.PS.FTS.B,
10.8%,
2/15/25
.....
2,856
2,816
1708031.PS.FTS.B,
12.9%,
2/15/25
.....
7,340
7,236
1708067.PS.FTS.B,
13%,
2/15/25
.......
9,534
9,398
1708037.PS.FTS.B,
13.36%,
2/15/25
....
3,814
3,760
1715176.PS.FTS.B,
13.36%,
2/15/25
....
1,907
1,880
1715161.PS.FTS.B,
14.11%,
2/15/25
....
3,244
3,198
1708070.PS.FTS.B,
14.2%,
2/15/25
.....
9,541
9,349
1708871.PS.FTS.B,
14.49%,
2/15/25
....
9,543
9,351
1721013.PS.FTS.B,
14.6%,
2/15/25
.....
11,346
11,119
1715155.PS.FTS.B,
14.63%,
2/15/25
....
7,478
7,381
1708448.PS.FTS.B,
15.86%,
2/15/25
....
14,327
14,037
1721421.PS.FTS.B,
16.3%,
2/15/25
.....
17,796
17,495
1708463.PS.FTS.B,
16.39%,
2/15/25
....
3,371
3,327
1715173.PS.FTS.B,
16.6%,
2/15/25
.....
3,912
3,834
1721052.PS.FTS.B,
16.8%,
2/15/25
.....
3,345
3,277
1714738.PS.FTS.B,
17.93%,
2/15/25
....
1,955
1,659
1721427.PS.FTS.B,
17.96%,
2/15/25
....
16,737
16,397
1715167.PS.FTS.B,
18.6%,
2/15/25
.....
2,886
2,837
1708055.PS.FTS.B,
20.25%,
2/15/25
....
22,891
22,421
1715152.PS.FTS.B,
21%,
2/15/25
.......
9,582
9,320
1708457.PS.FTS.B,
22.6%,
2/15/25
.....
6,234
6,063
1708904.PS.FTS.B,
23.4%,
2/15/25
.....
4,798
4,665
1708478.PS.FTS.B,
24.34%,
2/15/25
....
4,816
4,723
1708040.PS.FTS.B,
26.46%,
2/15/25
....
3,845
3,738
1716160.PS.FTS.B,
11.55%,
2/16/25
....
9,524
9,392
1715854.PS.FTS.B,
13.2%,
2/16/25
.....
6,579
6,450
1716226.PS.FTS.B,
13.9%,
2/16/25
.....
8,058
7,899
1722384.PS.FTS.B,
15.1%,
2/16/25
.....
6,683
6,550
1709612.PS.FTS.B,
16.1%,
2/16/25
.....
2,493
2,504
1722492.PS.FTS.B,
16.64%,
2/16/25
....
9,556
9,366
1716088.PS.FTS.B,
17.8%,
2/16/25
.....
4,782
4,665
1709597.PS.FTS.B,
18.5%,
2/16/25
.....
5,740
5,600
1715845.PS.FTS.B,
19.83%,
2/16/25
....
9,474
9,286
1722438.PS.FTS.B,
21.5%,
2/16/25
.....
2,875
2,804
1709591.PS.FTS.B,
22.6%,
2/16/25
.....
14,387
14,000
1710380.PS.FTS.B,
23.59%,
2/17/25
....
3,194
3,108
1723260.PS.FTS.B,
25.11%,
2/17/25
....
6,243
6,078
1717273.PS.FTS.B,
10.8%,
2/18/25
.....
10,947
10,802
1723608.PS.FTS.B,
16.6%,
2/18/25
.....
8,123
7,967
1723593.PS.FTS.B,
22.6%,
2/18/25
.....
14,387
14,018
1723899.PS.FTS.B,
22.6%,
2/18/25
.....
6,714
6,542
1724859.PS.FTS.B,
11.4%,
2/22/25
.....
8,918
8,810
1724148.PS.FTS.B,
12.3%,
2/22/25
.....
8,576
8,470
1718062.PS.FTS.B,
20.4%,
2/22/25
.....
1,916
1,875
1713806.PS.FTS.B,
10.07%,
2/23/25
....
38,059
37,770
1712954.PS.FTS.B,
12.4%,
2/23/25
.....
3,812
3,766
1713725.PS.FTS.B,
13.9%,
2/23/25
.....
8,564
8,418
1720977.PS.FTS.B,
14.56%,
2/28/25
....
7,779
7,709
1708484.PS.FTS.B,
22.6%,
2/28/25
.....
3,915
3,840
1740433.PS.FTS.B,
8.6%,
3/23/25
......
2,927
2,926
1748893.PS.FTS.B,
21.5%,
4/05/25
.....
3,000
2,963
1683602.PS.FTS.B,
23.4%,
7/05/25
.....
2,000
1,969
1489833.PS.FTS.B,
16.99%,
11/30/25
....
8,088
7,761
1485878.PS.FTS.B,
11.99%,
12/17/25
....
12,615
12,428
1592846.PS.FTS.B,
15.9%,
7/23/26
.....
7,165
6,870
1599437.PS.FTS.B,
16.5%,
8/05/26
.....
31,813
30,302
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
91
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1599440.PS.FTS.B,
26.4%,
8/05/26
.....
$
1,858
$
1,768
1599782.PS.FTS.B,
29.08%,
8/05/26
....
3,736
3,552
1603753.PS.FTS.B,
13.4%,
8/06/26
.....
2,983
2,953
1600460.PS.FTS.B,
15.2%,
8/06/26
.....
13,590
12,950
1603750.PS.FTS.B,
15.9%,
8/06/26
.....
7,261
6,919
1600466.PS.FTS.B,
18.73%,
8/06/26
....
13,707
13,059
1603759.PS.FTS.B,
20.59%,
8/06/26
....
9,178
8,676
1601273.PS.FTS.B,
12.6%,
8/09/26
.....
13,499
13,054
1604551.PS.FTS.B,
13.74%,
8/09/26
....
22,649
22,222
1611384.PS.FTS.B,
13.88%,
8/09/26
....
9,029
8,732
1601390.PS.FTS.B,
13.9%,
8/09/26
.....
13,545
13,098
1604293.PS.FTS.B,
17.7%,
8/09/26
.....
4,102
3,886
1611387.PS.FTS.B,
19.33%,
8/09/26
....
8,236
7,800
1601075.PS.FTS.B,
20.59%,
8/09/26
....
17,437
16,511
1611390.PS.FTS.B,
22.8%,
8/09/26
.....
1,845
1,760
1611810.PS.FTS.B,
13%,
8/10/26
.......
2,252
2,179
1601678.PS.FTS.B,
13.4%,
8/10/26
.....
7,214
6,978
1606042.PS.FTS.B,
14.74%,
8/10/26
....
14,490
14,047
1611513.PS.FTS.B,
15.68%,
8/10/26
....
18,142
17,547
1602428.PS.FTS.B,
18.2%,
8/10/26
.....
787
755
1601984.PS.FTS.B,
18.3%,
8/10/26
.....
7,303
6,921
1601978.PS.FTS.B,
19.33%,
8/10/26
....
10,524
9,972
1611807.PS.FTS.B,
19.33%,
8/10/26
....
13,727
13,006
1612131.PS.FTS.B,
19.48%,
8/10/26
....
6,866
6,505
1602347.PS.FTS.B,
20.3%,
8/10/26
.....
1,834
1,738
1612149.PS.FTS.B,
20.7%,
8/10/26
.....
5,508
5,218
1612140.PS.FTS.B,
23.74%,
8/10/26
....
6,007
5,688
1605592.PS.FTS.B,
24%,
8/10/26
.......
1,865
1,778
1605754.PS.FTS.B,
28.4%,
8/10/26
.....
4,664
4,449
1606183.PS.FTS.B,
12.6%,
8/11/26
.....
13,499
13,060
1606453.PS.FTS.B,
14.89%,
8/11/26
....
7,695
7,346
1612809.PS.FTS.B,
24%,
8/11/26
.......
5,548
5,300
1606945.PS.FTS.B,
12.5%,
8/12/26
.....
7,197
6,965
1607296.PS.FTS.B,
13.3%,
8/12/26
.....
5,409
5,235
1606891.PS.FTS.B,
16.3%,
8/12/26
.....
7,237
6,911
1603532.PS.FTS.B,
20.5%,
8/12/26
.....
9,634
9,137
1607350.PS.FTS.B,
25.4%,
8/12/26
.....
1,896
513
1604576.PS.FTS.B,
18.3%,
8/13/26
.....
9,129
8,665
1604174.PS.FTS.B,
20.23%,
8/13/26
....
10,102
9,592
1602449.PS.FTS.B,
25%,
8/15/26
.......
1,821
1,736
1611798.PS.FTS.B,
25.74%,
8/15/26
....
9,316
8,879
1601684.PS.FTS.B,
15.37%,
8/16/26
....
8,179
7,929
1604651.PS.FTS.B,
17.83%,
8/16/26
....
31,971
30,606
1609519.PS.FTS.B,
15%,
8/17/26
.......
7,244
6,931
1611322.PS.FTS.B,
12.5%,
8/19/26
.....
31,489
30,523
1618161.PS.FTS.B,
12.5%,
8/19/26
.....
13,495
13,081
1618149.PS.FTS.B,
13.7%,
8/19/26
.....
9,928
9,623
1618137.PS.FTS.B,
16.18%,
8/19/26
....
20,889
19,999
1600493.PS.FTS.B,
14.09%,
8/20/26
....
7,001
6,785
1611805.PS.FTS.B,
16.18%,
8/20/26
....
26,792
25,660
1611804.PS.FTS.B,
18%,
8/22/26
.......
22,943
21,757
1619901.PS.FTS.B,
13.5%,
8/24/26
.....
10,825
10,504
1610300.PS.FTS.B,
16.2%,
8/24/26
.....
16,978
3,969
1620930.PS.FTS.B,
15.8%,
8/25/26
.....
9,074
8,706
1615105.PS.FTS.B,
12.7%,
8/26/26
.....
17,103
16,605
1621938.PS.FTS.B,
14.39%,
8/26/26
....
7,233
7,022
1615738.PS.FTS.B,
13.3%,
8/27/26
.....
3,657
3,551
1615762.PS.FTS.B,
14.39%,
8/27/26
....
1,022
1,026
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1612100.PS.FTS.B,
16.3%,
8/27/26
.....
$
9,202
$
8,836
1615246.PS.FTS.B,
16.64%,
8/27/26
....
11,051
10,610
1615636.PS.FTS.B,
12.5%,
8/30/26
.....
13,702
13,366
1612853.PS.FTS.B,
13%,
8/30/26
.......
36,541
35,340
1623183.PS.FTS.B,
25.2%,
8/30/26
.....
9,462
5,825
1617610.PS.FTS.B,
15.29%,
9/11/26
....
12,458
11,905
1622321.PS.FTS.B,
19.23%,
9/17/26
....
2,777
2,644
1634619.PS.FTS.B,
19%,
9/21/26
.......
9,253
8,827
1635069.PS.FTS.B,
12.7%,
9/22/26
.....
9,807
9,536
1624628.PS.FTS.B,
12.9%,
9/22/26
.....
22,832
22,192
1624619.PS.FTS.B,
15.1%,
9/22/26
.....
9,178
8,815
1625300.PS.FTS.B,
11.79%,
9/23/26
....
6,377
6,199
1625246.PS.FTS.B,
12.5%,
9/23/26
.....
8,668
8,427
1636737.PS.FTS.B,
11.61%,
9/24/26
....
12,929
12,569
1626002.PS.FTS.B,
11.7%,
9/24/26
.....
22,769
22,141
1630114.PS.FTS.B,
11.7%,
9/24/26
......
8,197
7,971
1629364.PS.FTS.B,
12.3%,
9/24/26
.....
10,944
10,642
1630111.PS.FTS.B,
13.03%,
9/24/26
.....
15,074
14,658
1629628.PS.FTS.B,
14.31%,
9/24/26
....
10,994
10,568
1625705.PS.FTS.B,
16.33%,
9/24/26
....
16,906
16,250
1637205.PS.FTS.B,
11.7%,
9/27/26
.....
9,698
9,438
1630660.PS.FTS.B,
11.79%,
9/27/26
....
6,477
6,303
1637199.PS.FTS.B,
12.4%,
9/27/26
.....
14,799
14,401
1637220.PS.FTS.B,
13.1%,
9/27/26
.....
98
98
1637250.PS.FTS.B,
13.4%,
9/27/26
.....
6,487
6,312
1626827.PS.FTS.B,
14.2%,
9/27/26
.....
25,060
24,115
1626860.PS.FTS.B,
15%,
9/27/26
.......
6,042
5,814
1631629.PS.FTS.B,
11.7%,
9/28/26
.....
4,618
4,543
1631647.PS.FTS.B,
12.7%,
9/28/26
.....
13,777
13,565
1638105.PS.FTS.B,
13.4%,
9/28/26
.....
6,024
5,934
1627703.PS.FTS.B,
13.41%,
9/28/26
....
5,561
5,419
1628072.PS.FTS.B,
14.53%,
9/28/26
....
18,667
18,405
1627559.PS.FTS.B,
14.89%,
9/28/26
....
15,799
15,415
1627979.PS.FTS.B,
15.29%,
9/28/26
....
32,551
31,771
1638453.PS.FTS.B,
16.1%,
9/28/26
.....
13,971
13,645
1631731.PS.FTS.B,
16.8%,
9/28/26
.....
13,989
13,670
1631752.PS.FTS.B,
17.84%,
9/28/26
....
18,686
18,031
1631380.PS.FTS.B,
18.13%,
9/28/26
....
32,717
32,007
1639041.PS.FTS.B,
11.7%,
9/29/26
.....
13,855
13,430
1630402.PS.FTS.B,
12.62%,
9/30/26
....
9,253
9,025
1628359.PS.FTS.B,
13.88%,
9/30/26
....
207
207
1626833.PS.FTS.B,
14.7%,
10/01/26
....
13,966
13,524
1469063.PS.FTS.B,
19.24%,
10/12/26
...
10,673
10,447
1646769.PS.FTS.B,
11.79%,
10/13/26
....
12,014
11,683
1636743.PS.FTS.B,
12.62%,
10/17/26
...
7,572
7,390
1648282.PS.FTS.B,
14%,
10/26/26
......
13,922
13,431
1648288.PS.FTS.B,
14.96%,
10/26/26
...
11,623
11,213
1654998.PS.FTS.B,
18.33%,
10/26/26
...
4,131
4,053
1645235.PS.FTS.B,
9.81%,
10/27/26
....
5,595
5,458
1645223.PS.FTS.B,
10.5%,
10/27/26
....
8,414
8,208
1648600.PS.FTS.B,
10.5%,
10/27/26
....
3,796
3,726
1645646.PS.FTS.B,
10.8%,
10/27/26
....
14,030
13,688
1648582.PS.FTS.B,
10.9%,
10/27/26
....
9,355
9,127
1645232.PS.FTS.B,
11.2%,
10/27/26
....
10,983
10,718
1645661.PS.FTS.B,
11.7%,
10/27/26
....
3,734
3,643
1645649.PS.FTS.B,
12.7%,
10/27/26
....
6,568
6,407
1645652.PS.FTS.B,
12.7%,
10/27/26
....
6,099
5,950
1655325.PS.FTS.B,
13.08%,
10/27/26
...
19,059
18,593
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1645655.PS.FTS.B,
13.95%,
10/27/26
...
$
5,641
$
5,444
1648945.PS.FTS.B,
14.29%,
10/27/26
...
32,924
31,774
1648588.PS.FTS.B,
14.39%,
10/27/26
...
14,112
13,619
1648621.PS.FTS.B,
15.29%,
10/27/26
...
32,975
31,822
1648591.PS.FTS.B,
17%,
10/27/26
......
7,422
7,260
1648990.PS.FTS.B,
18.33%,
10/27/26
...
16,089
15,428
1645229.PS.FTS.B,
18.78%,
10/27/26
...
14,206
13,622
1655580.PS.FTS.B,
21%,
10/27/26
......
13,300
12,831
1655331.PS.FTS.B,
28%,
10/27/26
......
14,376
13,858
1646309.PS.FTS.B,
9.62%,
10/28/26
....
14,493
14,266
1649515.PS.FTS.B,
10.5%,
10/28/26
....
18,698
18,418
1649809.PS.FTS.B,
11.1%,
10/28/26
....
5,615
5,534
1649800.PS.FTS.B,
12%,
10/28/26
......
4,862
4,906
1656018.PS.FTS.B,
13.5%,
10/28/26
....
4,698
4,591
1649791.PS.FTS.B,
15.1%,
10/28/26
....
23,547
23,044
1646312.PS.FTS.B,
15.29%,
10/28/26
...
8,479
8,300
1646066.PS.FTS.B,
16.18%,
10/28/26
...
14,151
13,861
1645916.PS.FTS.B,
16.3%,
10/28/26
....
7,077
6,892
1649512.PS.FTS.B,
17.23%,
10/28/26
...
28,347
27,791
1646072.PS.FTS.B,
28.23%,
10/28/26
...
11,431
11,363
1650307.PS.FTS.B,
10.08%,
10/29/26
...
12,145
11,807
1646960.PS.FTS.B,
10.5%,
10/29/26
....
19,165
18,632
1647161.PS.FTS.B,
10.5%,
10/29/26
....
6,544
6,362
1657278.PS.FTS.B,
10.5%,
10/29/26
....
7,393
7,189
1650655.PS.FTS.B,
10.71%,
10/29/26
...
7,934
7,739
1656909.PS.FTS.B,
11.1%,
10/29/26
....
4,679
4,549
1646819.PS.FTS.B,
11.2%,
10/29/26
....
3,744
3,640
1650901.PS.FTS.B,
11.2%,
10/29/26
....
14,529
14,174
1650895.PS.FTS.B,
11.89%,
10/29/26
....
9,370
9,110
1650547.PS.FTS.B,
13.7%,
10/29/26
....
10,994
10,546
1650847.PS.FTS.B,
13.93%,
10/29/26
...
7,521
7,312
1647071.PS.FTS.B,
14.38%,
10/29/26
...
18,816
18,292
1650433.PS.FTS.B,
14.7%,
10/29/26
....
3,765
3,611
1650865.PS.FTS.B,
15.18%,
10/29/26
...
9,420
9,157
1646828.PS.FTS.B,
15.29%,
10/29/26
...
19,785
18,972
1650898.PS.FTS.B,
17.5%,
10/29/26
....
9,453
8,960
1647101.PS.FTS.B,
18.48%,
10/29/26
...
24,751
24,751
1656939.PS.FTS.B,
25.9%,
10/29/26
....
9,577
9,107
1656183.PS.FTS.B,
14.38%,
10/31/26
...
7,065
6,936
1655343.PS.FTS.B,
16.65%,
10/31/26
...
12,664
12,180
1647098.PS.FTS.B,
11.55%,
11/01/26
....
28,075
27,295
1649806.PS.FTS.B,
12.33%,
11/01/26
....
14,085
13,707
1651774.PS.FTS.B,
11.89%,
11/02/26
....
7,965
7,748
1651795.PS.FTS.B,
16%,
11/02/26
......
5,659
5,373
1648496.PS.FTS.B,
19%,
11/02/26
......
4,736
4,496
1648793.PS.FTS.B,
26.43%,
11/02/26
....
9,565
9,088
1646054.PS.FTS.B,
15.1%,
11/03/26
....
3,250
3,137
1650023.PS.FTS.B,
14.79%,
11/04/26
....
10,355
10,236
1661388.PS.FTS.B,
11.55%,
11/05/26
....
3,746
3,647
1654720.PS.FTS.B,
13.3%,
11/05/26
....
11,856
576
1650968.PS.FTS.B,
16.33%,
11/05/26
....
16,985
16,320
1654735.PS.FTS.B,
18.25%,
11/05/26
....
23,657
22,493
1654723.PS.FTS.B,
18.6%,
11/05/26
....
8,047
7,651
1651754.PS.FTS.B,
10.5%,
11/08/26
....
18,697
18,214
1658080.PS.FTS.B,
14.63%,
11/08/26
....
14,117
13,581
1651784.PS.FTS.B,
16.18%,
11/08/26
....
23,584
22,686
1658086.PS.FTS.B,
16.33%,
11/08/26
....
11,323
10,892
1664766.PS.FTS.B,
18.33%,
11/08/26
....
23,659
22,532
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1652300.PS.FTS.B,
21.18%,
11/08/26
....
$
13,671
$
13,014
1666515.PS.FTS.B,
11.2%,
11/09/26
.....
22,463
21,887
1665864.PS.FTS.B,
11.97%,
11/09/26
....
7,966
7,761
1666449.PS.FTS.B,
14.6%,
11/09/26
....
10,823
10,415
1658839.PS.FTS.B,
14.68%,
11/09/26
....
14,118
13,755
1658842.PS.FTS.B,
17%,
11/09/26
......
11,807
11,252
1653086.PS.FTS.B,
18.2%,
11/09/26
....
11,827
11,270
1665846.PS.FTS.B,
18.25%,
11/09/26
....
17,400
16,576
1659079.PS.FTS.B,
19%,
11/09/26
......
5,684
5,415
1658812.PS.FTS.B,
21.9%,
11/09/26
....
2,853
2,725
1665660.PS.FTS.B,
27.4%,
11/09/26
....
6,703
6,397
1654196.PS.FTS.B,
11.6%,
11/10/26
.....
18,732
18,255
1667148.PS.FTS.B,
11.6%,
11/10/26
.....
8,429
8,215
1654037.PS.FTS.B,
12.32%,
11/10/26
....
32,819
31,983
1660714.PS.FTS.B,
13.6%,
11/10/26
....
9,396
9,046
1651394.PS.FTS.B,
15.29%,
11/10/26
....
18,883
18,228
1660333.PS.FTS.B,
21.18%,
11/10/26
....
3,801
3,622
1654187.PS.FTS.B,
22.5%,
11/10/26
....
14,381
13,783
1655069.PS.FTS.B,
11.6%,
11/12/26
.....
2,359
2,359
1667997.PS.FTS.B,
11.79%,
11/12/26
....
8,432
8,221
1655114.PS.FTS.B,
12.32%,
11/12/26
....
11,252
10,971
1660804.PS.FTS.B,
14.68%,
11/12/26
....
32,943
32,116
1667757.PS.FTS.B,
18.25%,
11/12/26
....
12,301
11,740
1667178.PS.FTS.B,
13.3%,
11/15/26
....
9,410
9,101
1661914.PS.FTS.B,
13.5%,
11/15/26
....
23,487
22,652
1661875.PS.FTS.B,
18.33%,
11/15/26
....
14,196
13,570
1661797.PS.FTS.B,
21%,
11/15/26
......
1,900
1,822
1669413.PS.FTS.B,
24.09%,
11/15/26
....
8,584
8,227
1657538.PS.FTS.B,
21.3%,
11/16/26
....
1,901
1,824
1658339.PS.FTS.B,
16%,
11/17/26
......
7,073
6,770
1656447.PS.FTS.B,
14.38%,
11/27/26
....
20,925
20,542
1664327.PS.FTS.B,
13.5%,
11/30/26
....
3,806
3,668
1679830.PS.FTS.B,
10.5%,
12/16/26
....
13,274
12,999
1687146.PS.FTS.B,
11.43%,
12/16/26
....
11,392
11,156
1686741.PS.FTS.B,
11.79%,
12/16/26
....
12,327
12,071
1679842.PS.FTS.B,
11.89%,
12/16/26
....
4,750
4,651
1687128.PS.FTS.B,
12.3%,
12/16/26
....
9,505
9,307
1674095.PS.FTS.B,
12.5%,
12/16/26
....
21,764
21,313
1679815.PS.FTS.B,
12.5%,
12/16/26
....
20,915
20,481
1680286.PS.FTS.B,
12.5%,
12/16/26
....
9,507
9,309
1673711.PS.FTS.B,
12.6%,
12/16/26
....
4,279
4,190
1687125.PS.FTS.B,
13.4%,
12/16/26
....
9,518
9,320
1674104.PS.FTS.B,
13.77%,
12/16/26
...
16,188
15,689
1680241.PS.FTS.B,
14.38%,
12/16/26
...
23,835
23,430
1680235.PS.FTS.B,
14.41%,
12/16/26
...
33,356
32,661
1674101.PS.FTS.B,
14.53%,
12/16/26
...
17,050
16,696
1673708.PS.FTS.B,
14.7%,
12/16/26
....
8,580
8,316
1674110.PS.FTS.B,
14.7%,
12/16/26
....
33,368
32,338
1687113.PS.FTS.B,
15.18%,
12/16/26
....
15,740
15,254
1680250.PS.FTS.B,
15.84%,
12/16/26
...
2,244
2,176
1673690.PS.FTS.B,
16.1%,
12/16/26
....
33,425
32,393
1687140.PS.FTS.B,
16.7%,
12/16/26
....
14,336
13,776
1679824.PS.FTS.B,
18.2%,
12/16/26
....
9,470
9,097
1680301.PS.FTS.B,
18.5%,
12/16/26
....
4,789
4,601
1674146.PS.FTS.B,
18.78%,
12/16/26
...
9,580
9,205
1674113.PS.FTS.B,
24%,
12/16/26
......
9,634
9,269
1673699.PS.FTS.B,
26.43%,
12/16/26
...
14,486
13,934
1687137.PS.FTS.B,
28.08%,
12/16/26
...
14,551
14,060
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
93
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1687227.PS.FTS.B,
14.29%,
12/17/26
...
$
19,058
$
18,476
1674257.PS.FTS.B,
14.6%,
12/17/26
....
26,601
26,154
1680406.PS.FTS.B,
18.33%,
12/17/26
...
23,938
23,014
1675265.PS.FTS.B,
10.5%,
12/20/26
....
21,807
21,374
1681297.PS.FTS.B,
13.3%,
12/20/26
....
27,504
26,956
1681006.PS.FTS.B,
15.29%,
12/20/26
...
21,944
21,296
1675340.PS.FTS.B,
16%,
12/20/26
......
12,891
12,415
1688076.PS.FTS.B,
16.4%,
12/20/26
....
14,330
13,907
1682455.PS.FTS.B,
11.43%,
12/21/26
....
28,481
27,921
1688964.PS.FTS.B,
13.93%,
12/21/26
...
14,287
14,005
1689036.PS.FTS.B,
14.6%,
12/21/26
....
19,065
18,510
1689054.PS.FTS.B,
14.89%,
12/21/26
...
14,304
13,887
1676534.PS.FTS.B,
15.29%,
12/21/26
...
14,311
13,894
1676819.PS.FTS.B,
14.68%,
12/22/26
...
30,507
29,913
1690116.PS.FTS.B,
23.11%,
12/22/26
....
14,438
13,946
1677269.PS.FTS.B,
25.9%,
12/22/26
....
5,792
5,593
1683589.PS.FTS.B,
10.5%,
12/23/26
....
11,378
11,160
1690638.PS.FTS.B,
11.1%,
12/23/26
....
9,015
8,842
1686133.PS.FTS.B,
10.44%,
12/29/26
...
11,519
11,280
1680116.PS.FTS.B,
14%,
12/29/26
......
26,037
25,218
1674290.PS.FTS.B,
21.09%,
12/31/26
...
8,224
7,955
1686735.PS.FTS.B,
25.27%,
12/31/26
...
14,756
14,477
1675466.PS.FTS.B,
19%,
1/01/27
.......
7,799
7,610
1694608.PS.FTS.B,
10.62%,
1/13/27
....
9,395
9,232
1701387.PS.FTS.B,
11.1%,
1/13/27
.....
7,693
7,557
1688549.PS.FTS.B,
11.55%,
1/13/27
....
14,431
14,175
1694572.PS.FTS.B,
11.6%,
1/13/27
.....
20,974
20,602
1695022.PS.FTS.B,
11.7%,
1/13/27
.....
14,331
14,079
1701393.PS.FTS.B,
11.7%,
1/13/27
.....
6,735
6,616
1688996.PS.FTS.B,
11.79%,
1/13/27
....
23,576
23,158
1688534.PS.FTS.B,
12.9%,
1/13/27
.....
24,083
23,655
1695028.PS.FTS.B,
14.49%,
1/13/27
....
21,514
20,940
1694605.PS.FTS.B,
15.2%,
1/13/27
.....
2,027
1,973
1695031.PS.FTS.B,
15.5%,
1/13/27
.....
9,656
9,398
1701783.PS.FTS.B,
15.5%,
1/13/27
.....
14,484
14,097
1688990.PS.FTS.B,
17.82%,
1/13/27
....
29,027
28,249
1694623.PS.FTS.B,
18.5%,
1/13/27
.....
6,777
6,541
1701354.PS.FTS.B,
19.3%,
1/13/27
.....
18,504
17,859
1701375.PS.FTS.B,
21.69%,
1/13/27
....
9,699
9,361
1694593.PS.FTS.B,
23.4%,
1/13/27
.....
9,719
9,379
1701396.PS.FTS.B,
27.4%,
1/13/27
.....
4,873
4,701
1702062.PS.FTS.B,
11.79%,
1/14/27
....
8,661
8,509
1689674.PS.FTS.B,
12.4%,
1/14/27
.....
9,629
9,460
1702152.PS.FTS.B,
12.87%,
1/14/27
....
5,780
5,678
1695343.PS.FTS.B,
12.9%,
1/14/27
.....
5,202
5,111
1702167.PS.FTS.B,
13.1%,
1/14/27
.....
7,130
7,005
1702287.PS.FTS.B,
15.29%,
1/14/27
....
9,654
9,400
1689365.PS.FTS.B,
15.8%,
1/14/27
.....
19,318
18,808
1702137.PS.FTS.B,
16.2%,
1/14/27
.....
6,280
6,115
1702173.PS.FTS.B,
16.33%,
1/14/27
....
5,900
5,761
1689356.PS.FTS.B,
17.1%,
1/14/27
.....
9,670
9,339
1702161.PS.FTS.B,
18.13%,
1/14/27
....
3,871
3,769
1689329.PS.FTS.B,
18.4%,
1/14/27
.....
9,487
9,162
1689347.PS.FTS.B,
19%,
1/14/27
.......
7,748
7,482
1695361.PS.FTS.B,
26.13%,
1/14/27
....
14,607
14,101
1690325.PS.FTS.B,
16.28%,
1/18/27
....
5,798
5,653
1690286.PS.FTS.B,
18.4%,
1/18/27
.....
22,749
22,016
1703139.PS.FTS.B,
25.9%,
1/18/27
.....
1,947
1,885
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1704984.PS.FTS.B,
10.29%,
1/19/27
....
$
12,491
$
12,287
1704465.PS.FTS.B,
10.5%,
1/19/27
.....
17,299
17,016
1692188.PS.FTS.B,
11.2%,
1/19/27
.....
23,942
23,551
1698220.PS.FTS.B,
11.5%,
1/19/27
.....
14,430
14,194
1691687.PS.FTS.B,
12.7%,
1/19/27
.....
28,894
28,419
1698373.PS.FTS.B,
13.23%,
1/19/27
....
20,236
19,739
1692305.PS.FTS.B,
15.1%,
1/19/27
.....
14,479
14,123
1692281.PS.FTS.B,
16.5%,
1/19/27
.....
33,827
32,992
1691828.PS.FTS.B,
18.6%,
1/19/27
.....
1,936
1,875
1704129.PS.FTS.B,
21.18%,
1/19/27
....
9,754
9,514
1692593.PS.FTS.B,
10.5%,
1/20/27
.....
19,221
18,911
1698709.PS.FTS.B,
15.2%,
1/20/27
.....
14,480
14,129
1698673.PS.FTS.B,
16.61%,
1/20/27
....
19,384
19,031
1700548.PS.FTS.B,
25.9%,
1/24/27
.....
5,355
5,203
1695725.PS.FTS.B,
16.1%,
1/25/27
.....
21,931
21,305
1721436.PS.FTS.B,
9.45%,
2/15/27
.....
550
553
1708451.PS.FTS.B,
10.26%,
2/15/27
....
11,120
10,984
1715146.PS.FTS.B,
10.5%,
2/15/27
.....
24,347
24,029
1715164.PS.FTS.B,
11.1%,
2/15/27
.....
5,358
5,288
1708079.PS.FTS.B,
11.6%,
2/15/27
.....
9,745
9,618
1721439.PS.FTS.B,
12%,
2/15/27
.......
2,924
2,886
1721037.PS.FTS.B,
12.24%,
2/15/27
....
10,237
10,035
1715149.PS.FTS.B,
12.62%,
2/15/27
....
24,379
24,058
1721433.PS.FTS.B,
12.62%,
2/15/27
....
14,627
14,435
1708454.PS.FTS.B,
12.7%,
2/15/27
.....
19,504
19,247
1708763.PS.FTS.B,
15.62%,
2/15/27
....
22,468
22,020
1715143.PS.FTS.B,
16.33%,
2/15/27
....
19,545
19,155
1721913.PS.FTS.B,
16.8%,
2/15/27
.....
34,212
33,528
1708907.PS.FTS.B,
18.13%,
2/15/27
....
14,673
14,379
1708901.PS.FTS.B,
18.33%,
2/15/27
....
19,566
19,050
1720974.PS.FTS.B,
18.4%,
2/15/27
.....
19,078
18,574
1708466.PS.FTS.B,
18.6%,
2/15/27
.....
6,360
6,192
1708103.PS.FTS.B,
18.78%,
2/15/27
....
2,544
2,501
1721424.PS.FTS.B,
21%,
2/15/27
.......
8,327
8,102
1721007.PS.FTS.B,
22%,
2/15/27
.......
11,761
11,443
1708913.PS.FTS.B,
25.2%,
2/15/27
.....
11,677
11,352
1715353.PS.FTS.B,
25.9%,
2/15/27
.....
1,964
1,910
1721430.PS.FTS.B,
26.43%,
2/15/27
....
9,821
9,551
1709507.PS.FTS.B,
13.5%,
2/16/27
.....
7,805
7,653
1709207.PS.FTS.B,
16%,
2/16/27
.......
10,748
10,472
1722171.PS.FTS.B,
18.78%,
2/16/27
....
7,339
7,149
1709498.PS.FTS.B,
25.9%,
2/16/27
.....
9,819
9,555
1722801.PS.FTS.B,
23.31%,
2/17/27
....
4,413
4,299
1718479.PS.FTS.B,
11.1%,
2/22/27
.....
8,768
8,667
1724556.PS.FTS.B,
17.38%,
2/22/27
....
6,316
6,172
1726185.PS.FTS.B,
10.5%,
2/23/27
.....
14,608
14,443
1719415.PS.FTS.B,
10.8%,
2/23/27
.....
11,591
11,460
1719667.PS.FTS.B,
12.5%,
2/23/27
.....
14,626
14,460
1739157.PS.FTS.B,
11.5%,
3/16/27
.....
39,511
39,407
1749003.PS.FTS.B,
19.3%,
3/31/27
.....
7,000
6,898
1749006.PS.FTS.B,
19.53%,
3/31/27
....
11,000
10,840
1749429.PS.FTS.B,
25.9%,
3/31/27
.....
6,000
5,894
1613553.PS.FTS.B,
19.78%,
6/15/27
....
11,953
5,488
7,005,312
Upgrade,
Inc.
24177030.UG.FTS.B,
30.51%,
11/05/22
..
271
278
24195036.UG.FTS.B,
25.26%,
11/06/22
..
1,620
236
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
(continued)
24198170.UG.FTS.B,
23.3%,
11/07/22
...
$
2,457
$
2,476
24230934.UG.FTS.B,
24.29%,
11/07/22
..
1,273
1,285
24181857.UG.FTS.B,
24.29%,
11/08/22
..
1,784
1,795
24265315.UG.FTS.B,
25.26%,
11/08/22
..
772
780
24375634.UG.FTS.B,
25.26%,
11/12/22
..
1,955
1,980
24384208.UG.FTS.B,
24.29%,
11/14/22
..
2,548
2,579
24408286.UG.FTS.B,
24.99%,
11/14/22
..
1,282
1,299
24186022.UG.FTS.B,
25.26%,
11/14/22
..
6,010
5,637
24307805.UG.FTS.B,
30.51%,
11/14/22
..
953
979
24197514.UG.FTS.B,
24.99%,
11/15/22
..
1,282
1,300
24217501.UG.FTS.B,
25.26%,
11/15/22
..
1,946
1,966
24408986.UG.FTS.B,
25.26%,
11/16/22
..
2,586
2,614
24362451.UG.FTS.B,
25.26%,
11/18/22
..
1,255
1,274
24551925.UG.FTS.B,
27.21%,
11/18/22
..
1,573
1,609
24508053.UG.FTS.B,
22.34%,
11/20/22
..
8,758
1,389
24598646.UG.FTS.B,
25.26%,
11/20/22
..
1,081
1,095
24627227.UG.FTS.B,
23.3%,
11/21/22
...
4,613
4,648
24514267.UG.FTS.B,
25.26%,
11/21/22
..
1,600
1,624
24569500.UG.FTS.B,
25.26%,
11/21/22
..
5,144
5,227
24633524.UG.FTS.B,
25.26%,
11/21/22
..
772
784
24408037.UG.FTS.B,
30.51%,
11/21/22
..
1,232
1,271
24545726.UG.FTS.B,
24.99%,
11/23/22
..
6,922
1,053
24706329.UG.FTS.B,
25.26%,
11/25/22
..
424
426
24759733.UG.FTS.B,
22.34%,
11/26/22
..
504
509
24787776.UG.FTS.B,
25.26%,
11/26/22
..
1,800
1,833
24784959.UG.FTS.B,
Zero
Cpn,
11/27/22
.
4,215
325
24693273.UG.FTS.B,
25.26%,
11/27/22
..
7,278
7,401
24658950.UG.FTS.B,
24.99%,
11/28/22
..
1,983
1,998
24442762.UG.FTS.B,
25.26%,
11/30/22
..
3,036
1,018
24455144.UG.FTS.B,
25.26%,
12/02/22
..
5,399
354
24877097.UG.FTS.B,
25.26%,
12/02/22
..
2,495
2,497
24823556.UG.FTS.B,
27.21%,
12/02/22
..
1,142
168
24848052.UG.FTS.B,
25.26%,
12/03/22
..
1,164
1,174
24951581.UG.FTS.B,
24.29%,
12/04/22
..
4,323
4,355
24954573.UG.FTS.B,
25.26%,
12/04/22
..
2,910
2,936
24798549.UG.FTS.B,
25.26%,
12/05/22
..
1,018
1,028
25022405.UG.FTS.B,
25.26%,
12/06/22
..
1,901
1,911
24993587.UG.FTS.B,
30.51%,
12/06/22
..
1,835
1,887
25029991.UG.FTS.B,
24.29%,
12/09/22
..
2,884
2,900
25009552.UG.FTS.B,
27.21%,
12/09/22
..
2,372
2,418
24914243.UG.FTS.B,
22.34%,
12/10/22
..
1,414
1,424
25074574.UG.FTS.B,
25.26%,
12/12/22
..
1,164
1,178
25740670.UG.FTS.B,
24.29%,
12/14/22
..
3,076
3,103
25176694.UG.FTS.B,
22.34%,
12/16/22
..
2,993
3,011
25234063.UG.FTS.B,
23.3%,
12/16/22
...
343
346
24920052.UG.FTS.B,
25.26%,
12/16/22
..
743
113
25240151.UG.FTS.B,
25.26%,
12/17/22
..
1,455
1,475
25356190.UG.FTS.B,
30.51%,
12/18/22
..
766
789
25357782.UG.FTS.B,
18.46%,
12/19/22
..
816
821
25027206.UG.FTS.B,
25.26%,
12/19/22
..
989
997
25368629.UG.FTS.B,
25.26%,
12/19/22
..
1,455
1,476
25383975.UG.FTS.B,
25.26%,
12/19/22
..
3,844
295
25167367.UG.FTS.B,
25.26%,
12/20/22
..
1,138
966
25381046.UG.FTS.B,
25.26%,
12/20/22
..
580
588
25235771.UG.FTS.B,
28.18%,
12/20/22
..
758
775
24565516.UG.FTS.B,
24.99%,
12/23/22
..
1,103
1,120
25285501.UG.FTS.B,
25.26%,
12/23/22
..
875
885
25414391.UG.FTS.B,
25.26%,
12/23/22
..
869
883
Description
Principal
Amount
Value
Upgrade,
Inc.
(continued)
25484076.UG.FTS.B,
30.12%,
12/23/22
..
$
5,593
$
5,750
25513053.UG.FTS.B,
24.29%,
12/24/22
..
8,587
8,631
25095165.UG.FTS.B,
24.29%,
12/26/22
..
6,810
521
25111074.UG.FTS.B,
25.26%,
12/26/22
..
5,689
5,645
25532956.UG.FTS.B,
25.26%,
12/26/22
..
822
831
25313096.UG.FTS.B,
30.51%,
12/26/22
..
612
636
25532301.UG.FTS.B,
24.29%,
12/30/22
..
963
967
25652617.UG.FTS.B,
24.99%,
12/30/22
..
970
976
25436876.UG.FTS.B,
25.26%,
12/30/22
..
3,305
3,339
25593308.UG.FTS.B,
25.26%,
12/30/22
..
4,858
4,887
25690030.UG.FTS.B,
23.3%,
12/31/22
...
1,305
1,321
25071555.UG.FTS.B,
24.29%,
12/31/22
..
3,371
3,405
25388007.UG.FTS.B,
25.26%,
12/31/22
..
2,521
2,551
25686162.UG.FTS.B,
24.99%,
1/03/23
...
645
650
25732418.UG.FTS.B,
25.26%,
1/03/23
...
3,240
3,263
25530119.UG.FTS.B,
27.21%,
1/03/23
...
815
827
25723189.UG.FTS.B,
22.34%,
1/05/23
...
1,582
1,584
25610435.UG.FTS.B,
21.38%,
1/06/23
...
3,162
3,167
25774309.UG.FTS.B,
25.26%,
1/06/23
...
6,676
6,732
25828184.UG.FTS.B,
25.26%,
1/06/23
...
2,220
2,238
25753932.UG.FTS.B,
Zero
Cpn,
1/07/23
..
4,516
350
25845990.UG.FTS.B,
24.99%,
1/07/23
...
1,454
1,466
25177120.UG.FTS.B,
25.26%,
1/07/23
...
4,860
4,903
25738288.UG.FTS.B,
24.99%,
1/08/23
...
1,807
588
25689167.UG.FTS.B,
25.26%,
1/08/23
...
3,246
3,261
25821264.UG.FTS.B,
18.46%,
1/09/23
...
911
914
25568356.UG.FTS.B,
25.26%,
1/14/23
...
984
992
25712783.UG.FTS.B,
25.26%,
1/14/23
...
1,640
1,652
25836913.UG.FTS.B,
25.26%,
1/14/23
...
1,296
1,311
25679286.UG.FTS.B,
25.26%,
1/15/23
...
648
656
25709144.UG.FTS.B,
25.26%,
2/03/23
...
3,448
3,467
23712149.UG.FTS.B,
29.69%,
11/06/24
..
17,256
18,061
24548048.UG.FTS.B,
28.99%,
11/20/24
..
27,877
28,473
24415650.UG.FTS.B,
26.77%,
11/22/24
..
10,272
10,675
24697398.UG.FTS.B,
26.77%,
11/25/24
..
11,813
12,326
24468287.UG.FTS.B,
29.69%,
11/26/24
..
22,660
3,282
24755237.UG.FTS.B,
29.69%,
11/26/24
..
8,287
8,755
24511278.UG.FTS.B,
29.69%,
12/01/24
..
22,246
21,626
24794255.UG.FTS.B,
29.69%,
12/02/24
..
15,728
1,214
24716221.UG.FTS.B,
29.69%,
12/03/24
..
14,106
14,709
24606347.UG.FTS.B,
30.17%,
12/03/24
..
13,666
11,071
24391908.UG.FTS.B,
29.69%,
12/06/24
..
10,579
11,044
24464775.UG.FTS.B,
26.77%,
12/09/24
..
14,163
11,221
25051261.UG.FTS.B,
29.69%,
12/09/24
..
11,970
12,236
25366987.UG.FTS.B,
29.69%,
12/19/24
..
11,860
12,174
24618663.UG.FTS.B,
29.69%,
12/21/24
..
18,041
18,840
25533971.UG.FTS.B,
29.69%,
12/26/24
..
8,381
8,788
25506375.UG.FTS.B,
28.71%,
12/27/24
..
9,821
10,254
25752944.UG.FTS.B,
26.77%,
1/03/25
...
11,275
11,613
25721348.UG.FTS.B,
28.99%,
1/06/25
...
17,105
14,010
25684301.UG.FTS.B,
29.69%,
1/06/25
...
12,582
12,964
25284171.UG.FTS.B,
27.74%,
1/14/25
...
14,516
14,958
25595802.UG.FTS.B,
28.99%,
1/22/25
...
14,283
13,656
459,992
Upgrade,
Inc.
-
Card
991753799.UG.FTS.B,
29.49%,
9/05/22
..
16
16
991498479.UG.FTS.B,
16.49%,
1/14/24
..
152
153
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
95
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991508528.UG.FTS.B,
16.49%,
1/15/24
..
$
168
$
170
991542470.UG.FTS.B,
19.99%,
1/18/24
..
82
84
991543207.UG.FTS.B,
19.99%,
1/18/24
..
201
203
991546368.UG.FTS.B,
28.48%,
1/18/24
..
158
160
991552729.UG.FTS.B,
28.48%,
1/18/24
..
925
932
991555306.UG.FTS.B,
28.48%,
1/18/24
..
135
134
991563767.UG.FTS.B,
28.48%,
1/18/24
..
177
180
991592691.UG.FTS.B,
28.48%,
1/18/24
..
107
108
991622139.UG.FTS.B,
28.48%,
1/18/24
..
817
832
991732331.UG.FTS.B,
28.48%,
1/18/24
..
90
91
991535064.UG.FTS.B,
29.45%,
1/18/24
..
902
921
991534370.UG.FTS.B,
29.46%,
1/18/24
..
458
455
991535077.UG.FTS.B,
29.46%,
1/18/24
..
117
119
991557048.UG.FTS.B,
29.47%,
1/18/24
..
16
17
991558680.UG.FTS.B,
29.47%,
1/18/24
..
731
736
991751743.UG.FTS.B,
29.47%,
1/18/24
..
339
341
991539082.UG.FTS.B,
29.48%,
1/18/24
..
208
212
991607820.UG.FTS.B,
29.48%,
1/18/24
..
31
31
991615511.UG.FTS.B,
29.48%,
1/18/24
..
94
96
991679848.UG.FTS.B,
29.48%,
1/18/24
..
13
13
991534887.UG.FTS.B,
29.49%,
1/18/24
..
811
814
991536585.UG.FTS.B,
29.49%,
1/18/24
..
207
211
991538702.UG.FTS.B,
29.49%,
1/18/24
..
24
24
991539593.UG.FTS.B,
29.49%,
1/18/24
..
778
793
991541856.UG.FTS.B,
29.49%,
1/18/24
..
98
100
991545264.UG.FTS.B,
29.49%,
1/18/24
..
60
60
991546280.UG.FTS.B,
29.49%,
1/18/24
..
114
113
991546337.UG.FTS.B,
29.49%,
1/18/24
..
160
163
991552817.UG.FTS.B,
29.49%,
1/18/24
..
219
223
991555602.UG.FTS.B,
29.49%,
1/18/24
..
92
94
991556797.UG.FTS.B,
29.49%,
1/18/24
..
45
46
991584575.UG.FTS.B,
29.49%,
1/18/24
..
103
105
991587612.UG.FTS.B,
29.49%,
1/18/24
..
266
267
991629208.UG.FTS.B,
29.49%,
1/18/24
..
178
181
991639272.UG.FTS.B,
29.49%,
1/18/24
..
155
157
991667842.UG.FTS.B,
29.49%,
1/18/24
..
127
126
991692863.UG.FTS.B,
29.49%,
1/18/24
..
57
58
991709913.UG.FTS.B,
29.49%,
1/18/24
..
41
41
991713160.UG.FTS.B,
29.49%,
1/18/24
..
50
50
991727329.UG.FTS.B,
29.49%,
1/18/24
..
309
306
991752426.UG.FTS.B,
29.49%,
1/18/24
..
24
24
991759812.UG.FTS.B,
29.49%,
1/18/24
..
100
100
991767003.UG.FTS.B,
29.49%,
1/18/24
..
40
40
991769780.UG.FTS.B,
29.49%,
1/18/24
..
141
141
991770423.UG.FTS.B,
29.49%,
1/18/24
..
33
33
991771264.UG.FTS.B,
29.49%,
1/18/24
..
5
5
991546995.UG.FTS.B,
19.99%,
1/19/24
..
210
214
991755795.UG.FTS.B,
19.99%,
1/19/24
..
345
347
991781416.UG.FTS.B,
20.96%,
1/19/24
..
1,604
1,625
991783852.UG.FTS.B,
21.48%,
1/19/24
..
223
226
991545922.UG.FTS.B,
25.45%,
1/19/24
..
117
119
991546826.UG.FTS.B,
28.48%,
1/19/24
..
96
98
991632638.UG.FTS.B,
28.48%,
1/19/24
..
169
123
991698481.UG.FTS.B,
28.48%,
1/19/24
..
12
13
991765474.UG.FTS.B,
28.48%,
1/19/24
..
119
120
991781301.UG.FTS.B,
28.48%,
1/19/24
..
572
571
991782538.UG.FTS.B,
28.48%,
1/19/24
..
179
181
991783894.UG.FTS.B,
28.48%,
1/19/24
..
187
136
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991782715.UG.FTS.B,
28.98%,
1/19/24
..
$
132
$
134
991769837.UG.FTS.B,
29.46%,
1/19/24
..
121
122
991573098.UG.FTS.B,
29.47%,
1/19/24
..
95
7
991769661.UG.FTS.B,
29.47%,
1/19/24
..
23
23
991586601.UG.FTS.B,
29.48%,
1/19/24
..
154
154
991593296.UG.FTS.B,
29.48%,
1/19/24
..
147
150
991638207.UG.FTS.B,
29.48%,
1/19/24
..
247
251
991644301.UG.FTS.B,
29.48%,
1/19/24
..
116
117
991689540.UG.FTS.B,
29.48%,
1/19/24
..
256
257
991746052.UG.FTS.B,
29.48%,
1/19/24
..
359
363
991759026.UG.FTS.B,
29.48%,
1/19/24
..
222
224
991765371.UG.FTS.B,
29.48%,
1/19/24
..
89
89
991542914.UG.FTS.B,
29.49%,
1/19/24
..
198
201
991543014.UG.FTS.B,
29.49%,
1/19/24
..
109
111
991543898.UG.FTS.B,
29.49%,
1/19/24
..
250
254
991546985.UG.FTS.B,
29.49%,
1/19/24
..
119
121
991547308.UG.FTS.B,
29.49%,
1/19/24
..
189
187
991547310.UG.FTS.B,
29.49%,
1/19/24
..
164
164
991547551.UG.FTS.B,
29.49%,
1/19/24
..
756
753
991548186.UG.FTS.B,
29.49%,
1/19/24
..
157
160
991548469.UG.FTS.B,
29.49%,
1/19/24
..
557
424
991551487.UG.FTS.B,
29.49%,
1/19/24
..
280
276
991558631.UG.FTS.B,
29.49%,
1/19/24
..
24
23
991592161.UG.FTS.B,
29.49%,
1/19/24
..
240
241
991596747.UG.FTS.B,
29.49%,
1/19/24
..
37
38
991598993.UG.FTS.B,
29.49%,
1/19/24
..
108
110
991620629.UG.FTS.B,
29.49%,
1/19/24
..
15
15
991623047.UG.FTS.B,
29.49%,
1/19/24
..
286
291
991651773.UG.FTS.B,
29.49%,
1/19/24
..
30
31
991662782.UG.FTS.B,
29.49%,
1/19/24
..
50
51
991671486.UG.FTS.B,
29.49%,
1/19/24
..
319
320
991680832.UG.FTS.B,
29.49%,
1/19/24
..
130
130
991684437.UG.FTS.B,
29.49%,
1/19/24
..
156
155
991697230.UG.FTS.B,
29.49%,
1/19/24
..
76
11
991697701.UG.FTS.B,
29.49%,
1/19/24
..
155
156
991700048.UG.FTS.B,
29.49%,
1/19/24
..
179
180
991712782.UG.FTS.B,
29.49%,
1/19/24
..
863
864
991713760.UG.FTS.B,
29.49%,
1/19/24
..
68
67
991716976.UG.FTS.B,
29.49%,
1/19/24
..
334
335
991733265.UG.FTS.B,
29.49%,
1/19/24
..
139
140
991733667.UG.FTS.B,
29.49%,
1/19/24
..
44
44
991738510.UG.FTS.B,
29.49%,
1/19/24
..
55
55
991756258.UG.FTS.B,
29.49%,
1/19/24
..
73
74
991760642.UG.FTS.B,
29.49%,
1/19/24
..
158
157
991765089.UG.FTS.B,
29.49%,
1/19/24
..
162
163
991765438.UG.FTS.B,
29.49%,
1/19/24
..
79
79
991765835.UG.FTS.B,
29.49%,
1/19/24
..
18
18
991767462.UG.FTS.B,
29.49%,
1/19/24
..
84
85
991768418.UG.FTS.B,
29.49%,
1/19/24
..
72
73
991769206.UG.FTS.B,
29.49%,
1/19/24
..
93
92
991771022.UG.FTS.B,
29.49%,
1/19/24
..
28
29
991775481.UG.FTS.B,
29.49%,
1/19/24
..
45
46
991776397.UG.FTS.B,
29.49%,
1/19/24
..
51
50
991778932.UG.FTS.B,
29.49%,
1/19/24
..
31
31
991782126.UG.FTS.B,
29.49%,
1/19/24
..
231
233
991743629.UG.FTS.B,
16.49%,
1/20/24
..
35
35
991728725.UG.FTS.B,
18.47%,
1/20/24
..
131
132
991782434.UG.FTS.B,
19.3%,
1/20/24
...
1,069
1,085
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991758585.UG.FTS.B,
19.96%,
1/20/24
..
$
34
$
35
991759253.UG.FTS.B,
19.96%,
1/20/24
..
433
439
991544475.UG.FTS.B,
19.99%,
1/20/24
..
108
108
991546567.UG.FTS.B,
19.99%,
1/20/24
..
90
92
991552412.UG.FTS.B,
19.99%,
1/20/24
..
118
121
991555516.UG.FTS.B,
19.99%,
1/20/24
..
73
74
991556030.UG.FTS.B,
19.99%,
1/20/24
..
79
80
991556410.UG.FTS.B,
19.99%,
1/20/24
..
60
61
991558368.UG.FTS.B,
19.99%,
1/20/24
..
943
964
991563542.UG.FTS.B,
19.99%,
1/20/24
..
79
80
991564841.UG.FTS.B,
19.99%,
1/20/24
..
139
140
991572409.UG.FTS.B,
19.99%,
1/20/24
..
611
620
991574011.UG.FTS.B,
19.99%,
1/20/24
..
176
180
991583492.UG.FTS.B,
19.99%,
1/20/24
..
90
91
991591617.UG.FTS.B,
19.99%,
1/20/24
..
89
90
991597422.UG.FTS.B,
19.99%,
1/20/24
..
246
247
991648817.UG.FTS.B,
19.99%,
1/20/24
..
21
21
991644994.UG.FTS.B,
21.48%,
1/20/24
..
35
35
991573311.UG.FTS.B,
25.44%,
1/20/24
..
242
247
991689900.UG.FTS.B,
25.44%,
1/20/24
..
29
29
991721579.UG.FTS.B,
25.44%,
1/20/24
..
244
246
991731346.UG.FTS.B,
25.44%,
1/20/24
..
90
91
991563444.UG.FTS.B,
25.45%,
1/20/24
..
173
125
991582394.UG.FTS.B,
25.45%,
1/20/24
..
769
569
991630350.UG.FTS.B,
25.45%,
1/20/24
..
28
28
991709857.UG.FTS.B,
25.45%,
1/20/24
..
105
107
991734079.UG.FTS.B,
25.45%,
1/20/24
..
73
55
991738176.UG.FTS.B,
25.45%,
1/20/24
..
115
116
991754836.UG.FTS.B,
25.45%,
1/20/24
..
69
53
991768790.UG.FTS.B,
25.45%,
1/20/24
..
113
114
991573254.UG.FTS.B,
26.44%,
1/20/24
..
221
225
991609514.UG.FTS.B,
26.44%,
1/20/24
..
726
738
991629083.UG.FTS.B,
26.44%,
1/20/24
..
294
(2)
991739704.UG.FTS.B,
26.44%,
1/20/24
..
93
94
991770500.UG.FTS.B,
26.44%,
1/20/24
..
39
40
991608654.UG.FTS.B,
27.95%,
1/20/24
..
91
91
991610954.UG.FTS.B,
27.95%,
1/20/24
..
129
130
991677947.UG.FTS.B,
27.95%,
1/20/24
..
24
25
991544405.UG.FTS.B,
28.48%,
1/20/24
..
136
136
991544745.UG.FTS.B,
28.48%,
1/20/24
..
117
15
991546417.UG.FTS.B,
28.48%,
1/20/24
..
315
321
991546473.UG.FTS.B,
28.48%,
1/20/24
..
88
88
991546919.UG.FTS.B,
28.48%,
1/20/24
..
24
24
991549025.UG.FTS.B,
28.48%,
1/20/24
..
275
281
991552091.UG.FTS.B,
28.48%,
1/20/24
..
96
98
991554027.UG.FTS.B,
28.48%,
1/20/24
..
335
341
991554902.UG.FTS.B,
28.48%,
1/20/24
..
86
87
991559316.UG.FTS.B,
28.48%,
1/20/24
..
119
122
991561971.UG.FTS.B,
28.48%,
1/20/24
..
40
40
991562264.UG.FTS.B,
28.48%,
1/20/24
..
56
57
991567067.UG.FTS.B,
28.48%,
1/20/24
..
172
176
991567614.UG.FTS.B,
28.48%,
1/20/24
..
17
17
991568589.UG.FTS.B,
28.48%,
1/20/24
..
161
164
991569087.UG.FTS.B,
28.48%,
1/20/24
..
154
157
991569197.UG.FTS.B,
28.48%,
1/20/24
..
167
170
991571005.UG.FTS.B,
28.48%,
1/20/24
..
717
724
991583384.UG.FTS.B,
28.48%,
1/20/24
..
90
92
991585893.UG.FTS.B,
28.48%,
1/20/24
..
31
31
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991589155.UG.FTS.B,
28.48%,
1/20/24
..
$
50
$
50
991590348.UG.FTS.B,
28.48%,
1/20/24
..
127
130
991594819.UG.FTS.B,
28.48%,
1/20/24
..
27
27
991596321.UG.FTS.B,
28.48%,
1/20/24
..
70
71
991612639.UG.FTS.B,
28.48%,
1/20/24
..
173
174
991613294.UG.FTS.B,
28.48%,
1/20/24
..
58
59
991615418.UG.FTS.B,
28.48%,
1/20/24
..
128
130
991617196.UG.FTS.B,
28.48%,
1/20/24
..
82
84
991617650.UG.FTS.B,
28.48%,
1/20/24
..
364
372
991622252.UG.FTS.B,
28.48%,
1/20/24
..
165
166
991625056.UG.FTS.B,
28.48%,
1/20/24
..
194
198
991635598.UG.FTS.B,
28.48%,
1/20/24
..
696
50
991644127.UG.FTS.B,
28.48%,
1/20/24
..
256
261
991651123.UG.FTS.B,
28.48%,
1/20/24
..
229
232
991659625.UG.FTS.B,
28.48%,
1/20/24
..
698
713
991679918.UG.FTS.B,
28.48%,
1/20/24
..
165
165
991684186.UG.FTS.B,
28.48%,
1/20/24
..
28
25
991691451.UG.FTS.B,
28.48%,
1/20/24
..
136
139
991698484.UG.FTS.B,
28.48%,
1/20/24
..
19
19
991704363.UG.FTS.B,
28.48%,
1/20/24
..
231
233
991708292.UG.FTS.B,
28.48%,
1/20/24
..
275
278
991723700.UG.FTS.B,
28.48%,
1/20/24
..
10
11
991730506.UG.FTS.B,
28.48%,
1/20/24
..
107
108
991738025.UG.FTS.B,
28.48%,
1/20/24
..
17
17
991754575.UG.FTS.B,
28.48%,
1/20/24
..
345
347
991756843.UG.FTS.B,
28.48%,
1/20/24
..
84
84
991772114.UG.FTS.B,
28.48%,
1/20/24
..
21
21
991782424.UG.FTS.B,
28.48%,
1/20/24
..
179
181
991553626.UG.FTS.B,
29.45%,
1/20/24
..
275
281
991584702.UG.FTS.B,
29.45%,
1/20/24
..
381
386
991545055.UG.FTS.B,
29.46%,
1/20/24
..
244
249
991563815.UG.FTS.B,
29.46%,
1/20/24
..
63
64
991568266.UG.FTS.B,
29.46%,
1/20/24
..
34
34
991585330.UG.FTS.B,
29.46%,
1/20/24
..
65
66
991589251.UG.FTS.B,
29.46%,
1/20/24
..
21
22
991596840.UG.FTS.B,
29.46%,
1/20/24
..
63
64
991678744.UG.FTS.B,
29.46%,
1/20/24
..
87
88
991764939.UG.FTS.B,
29.46%,
1/20/24
..
21
22
991561413.UG.FTS.B,
29.47%,
1/20/24
..
77
78
991573077.UG.FTS.B,
29.47%,
1/20/24
..
53
54
991576227.UG.FTS.B,
29.47%,
1/20/24
..
214
216
991615137.UG.FTS.B,
29.47%,
1/20/24
..
961
968
991650318.UG.FTS.B,
29.47%,
1/20/24
..
96
97
991665460.UG.FTS.B,
29.47%,
1/20/24
..
195
27
991545746.UG.FTS.B,
29.48%,
1/20/24
..
234
237
991546096.UG.FTS.B,
29.48%,
1/20/24
..
489
498
991547890.UG.FTS.B,
29.48%,
1/20/24
..
510
521
991550388.UG.FTS.B,
29.48%,
1/20/24
..
1,194
1,219
991552922.UG.FTS.B,
29.48%,
1/20/24
..
253
256
991555581.UG.FTS.B,
29.48%,
1/20/24
..
63
64
991558161.UG.FTS.B,
29.48%,
1/20/24
..
219
223
991559899.UG.FTS.B,
29.48%,
1/20/24
..
32
32
991560733.UG.FTS.B,
29.48%,
1/20/24
..
203
208
991561539.UG.FTS.B,
29.48%,
1/20/24
..
7
7
991563118.UG.FTS.B,
29.48%,
1/20/24
..
66
67
991564117.UG.FTS.B,
29.48%,
1/20/24
..
90
92
991564793.UG.FTS.B,
29.48%,
1/20/24
..
14
14
991564976.UG.FTS.B,
29.48%,
1/20/24
..
71
72
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
97
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991573314.UG.FTS.B,
29.48%,
1/20/24
..
$
309
$
312
991575268.UG.FTS.B,
29.48%,
1/20/24
..
117
119
991577460.UG.FTS.B,
29.48%,
1/20/24
..
288
287
991590320.UG.FTS.B,
29.48%,
1/20/24
..
30
30
991590723.UG.FTS.B,
29.48%,
1/20/24
..
335
340
991593773.UG.FTS.B,
29.48%,
1/20/24
..
78
79
991594316.UG.FTS.B,
29.48%,
1/20/24
..
19
19
991607756.UG.FTS.B,
29.48%,
1/20/24
..
76
77
991612779.UG.FTS.B,
29.48%,
1/20/24
..
217
219
991615405.UG.FTS.B,
29.48%,
1/20/24
..
149
152
991623519.UG.FTS.B,
29.48%,
1/20/24
..
298
303
991630832.UG.FTS.B,
29.48%,
1/20/24
..
40
41
991637112.UG.FTS.B,
29.48%,
1/20/24
..
713
727
991642133.UG.FTS.B,
29.48%,
1/20/24
..
55
55
991645914.UG.FTS.B,
29.48%,
1/20/24
..
88
90
991658933.UG.FTS.B,
29.48%,
1/20/24
..
36
37
991666791.UG.FTS.B,
29.48%,
1/20/24
..
464
469
991687020.UG.FTS.B,
29.48%,
1/20/24
..
9
9
991690864.UG.FTS.B,
29.48%,
1/20/24
..
802
814
991698237.UG.FTS.B,
29.48%,
1/20/24
..
139
141
991712564.UG.FTS.B,
29.48%,
1/20/24
..
385
389
991723500.UG.FTS.B,
29.48%,
1/20/24
..
125
126
991740245.UG.FTS.B,
29.48%,
1/20/24
..
60
61
991758030.UG.FTS.B,
29.48%,
1/20/24
..
355
26
991760060.UG.FTS.B,
29.48%,
1/20/24
..
34
34
991768269.UG.FTS.B,
29.48%,
1/20/24
..
0
0
991775284.UG.FTS.B,
29.48%,
1/20/24
..
594
589
991789273.UG.FTS.B,
29.48%,
1/20/24
..
18
18
991544517.UG.FTS.B,
29.49%,
1/20/24
..
153
155
991544913.UG.FTS.B,
29.49%,
1/20/24
..
299
303
991545295.UG.FTS.B,
29.49%,
1/20/24
..
625
635
991545436.UG.FTS.B,
29.49%,
1/20/24
..
617
623
991545502.UG.FTS.B,
29.49%,
1/20/24
..
413
419
991545540.UG.FTS.B,
29.49%,
1/20/24
..
40
41
991545628.UG.FTS.B,
29.49%,
1/20/24
..
50
51
991545668.UG.FTS.B,
29.49%,
1/20/24
..
25
25
991545797.UG.FTS.B,
29.49%,
1/20/24
..
938
944
991546442.UG.FTS.B,
29.49%,
1/20/24
..
110
112
991546518.UG.FTS.B,
29.49%,
1/20/24
..
117
118
991546552.UG.FTS.B,
29.49%,
1/20/24
..
494
504
991546601.UG.FTS.B,
29.49%,
1/20/24
..
122
17
991546653.UG.FTS.B,
29.49%,
1/20/24
..
124
125
991546665.UG.FTS.B,
29.49%,
1/20/24
..
120
118
991546843.UG.FTS.B,
29.49%,
1/20/24
..
84
86
991547068.UG.FTS.B,
29.49%,
1/20/24
..
174
178
991547138.UG.FTS.B,
29.49%,
1/20/24
..
59
60
991547698.UG.FTS.B,
29.49%,
1/20/24
..
49
50
991547820.UG.FTS.B,
29.49%,
1/20/24
..
35
34
991547826.UG.FTS.B,
29.49%,
1/20/24
..
305
307
991548078.UG.FTS.B,
29.49%,
1/20/24
..
52
53
991548176.UG.FTS.B,
29.49%,
1/20/24
..
195
194
991548275.UG.FTS.B,
29.49%,
1/20/24
..
361
365
991548490.UG.FTS.B,
29.49%,
1/20/24
..
289
294
991548883.UG.FTS.B,
29.49%,
1/20/24
..
919
935
991549381.UG.FTS.B,
29.49%,
1/20/24
..
312
318
991550358.UG.FTS.B,
29.49%,
1/20/24
..
918
936
991550861.UG.FTS.B,
29.49%,
1/20/24
..
410
418
991551212.UG.FTS.B,
29.49%,
1/20/24
..
21
21
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991551681.UG.FTS.B,
29.49%,
1/20/24
..
$
139
$
140
991551861.UG.FTS.B,
29.49%,
1/20/24
..
42
42
991552461.UG.FTS.B,
29.49%,
1/20/24
..
199
202
991552510.UG.FTS.B,
29.49%,
1/20/24
..
87
88
991552688.UG.FTS.B,
29.49%,
1/20/24
..
69
70
991552719.UG.FTS.B,
29.49%,
1/20/24
..
40
40
991553257.UG.FTS.B,
29.49%,
1/20/24
..
861
874
991553851.UG.FTS.B,
29.49%,
1/20/24
..
35
35
991554077.UG.FTS.B,
29.49%,
1/20/24
..
28
28
991554296.UG.FTS.B,
29.49%,
1/20/24
..
71
71
991554808.UG.FTS.B,
29.49%,
1/20/24
..
234
238
991554826.UG.FTS.B,
29.49%,
1/20/24
..
169
168
991555241.UG.FTS.B,
29.49%,
1/20/24
..
156
157
991555868.UG.FTS.B,
29.49%,
1/20/24
..
141
10
991555945.UG.FTS.B,
29.49%,
1/20/24
..
113
115
991556087.UG.FTS.B,
29.49%,
1/20/24
..
90
91
991556445.UG.FTS.B,
29.49%,
1/20/24
..
5
5
991556500.UG.FTS.B,
29.49%,
1/20/24
..
101
99
991556675.UG.FTS.B,
29.49%,
1/20/24
..
70
55
991556911.UG.FTS.B,
29.49%,
1/20/24
..
8
8
991557000.UG.FTS.B,
29.49%,
1/20/24
..
0
0
991557821.UG.FTS.B,
29.49%,
1/20/24
..
184
187
991557990.UG.FTS.B,
29.49%,
1/20/24
..
66
68
991558974.UG.FTS.B,
29.49%,
1/20/24
..
111
110
991559051.UG.FTS.B,
29.49%,
1/20/24
..
132
135
991559980.UG.FTS.B,
29.49%,
1/20/24
..
113
114
991560848.UG.FTS.B,
29.49%,
1/20/24
..
177
181
991560944.UG.FTS.B,
29.49%,
1/20/24
..
85
87
991561556.UG.FTS.B,
29.49%,
1/20/24
..
46
46
991561851.UG.FTS.B,
29.49%,
1/20/24
..
97
96
991561923.UG.FTS.B,
29.49%,
1/20/24
..
293
298
991562024.UG.FTS.B,
29.49%,
1/20/24
..
121
124
991562451.UG.FTS.B,
29.49%,
1/20/24
..
71
10
991562972.UG.FTS.B,
29.49%,
1/20/24
..
839
115
991564235.UG.FTS.B,
29.49%,
1/20/24
..
63
64
991564550.UG.FTS.B,
29.49%,
1/20/24
..
75
76
991564618.UG.FTS.B,
29.49%,
1/20/24
..
35
36
991565486.UG.FTS.B,
29.49%,
1/20/24
..
277
274
991567858.UG.FTS.B,
29.49%,
1/20/24
..
627
634
991569020.UG.FTS.B,
29.49%,
1/20/24
..
109
111
991569443.UG.FTS.B,
29.49%,
1/20/24
..
52
53
991569555.UG.FTS.B,
29.49%,
1/20/24
..
288
292
991569938.UG.FTS.B,
29.49%,
1/20/24
..
92
93
991570061.UG.FTS.B,
29.49%,
1/20/24
..
157
159
991570850.UG.FTS.B,
29.49%,
1/20/24
..
72
73
991570917.UG.FTS.B,
29.49%,
1/20/24
..
88
67
991572060.UG.FTS.B,
29.49%,
1/20/24
..
43
44
991572399.UG.FTS.B,
29.49%,
1/20/24
..
54
54
991572520.UG.FTS.B,
29.49%,
1/20/24
..
114
116
991572954.UG.FTS.B,
29.49%,
1/20/24
..
748
763
991573325.UG.FTS.B,
29.49%,
1/20/24
..
69
70
991575505.UG.FTS.B,
29.49%,
1/20/24
..
1,034
1,032
991575634.UG.FTS.B,
29.49%,
1/20/24
..
19
19
991575740.UG.FTS.B,
29.49%,
1/20/24
..
76
77
991575761.UG.FTS.B,
29.49%,
1/20/24
..
5
5
991575903.UG.FTS.B,
29.49%,
1/20/24
..
697
708
991576674.UG.FTS.B,
29.49%,
1/20/24
..
87
88
991577203.UG.FTS.B,
29.49%,
1/20/24
..
48
49
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991577291.UG.FTS.B,
29.49%,
1/20/24
..
$
56
$
56
991577337.UG.FTS.B,
29.49%,
1/20/24
..
372
379
991578518.UG.FTS.B,
29.49%,
1/20/24
..
91
90
991578709.UG.FTS.B,
29.49%,
1/20/24
..
368
366
991579389.UG.FTS.B,
29.49%,
1/20/24
..
199
202
991579802.UG.FTS.B,
29.49%,
1/20/24
..
223
227
991579854.UG.FTS.B,
29.49%,
1/20/24
..
135
138
991580712.UG.FTS.B,
29.49%,
1/20/24
..
14
14
991581328.UG.FTS.B,
29.49%,
1/20/24
..
74
76
991583490.UG.FTS.B,
29.49%,
1/20/24
..
168
23
991583578.UG.FTS.B,
29.49%,
1/20/24
..
63
9
991584500.UG.FTS.B,
29.49%,
1/20/24
..
10
10
991585106.UG.FTS.B,
29.49%,
1/20/24
..
77
6
991585183.UG.FTS.B,
29.49%,
1/20/24
..
82
83
991585222.UG.FTS.B,
29.49%,
1/20/24
..
57
58
991585361.UG.FTS.B,
29.49%,
1/20/24
..
204
205
991585585.UG.FTS.B,
29.49%,
1/20/24
..
89
90
991586778.UG.FTS.B,
29.49%,
1/20/24
..
33
33
991586788.UG.FTS.B,
29.49%,
1/20/24
..
50
50
991587497.UG.FTS.B,
29.49%,
1/20/24
..
1,002
1,017
991587720.UG.FTS.B,
29.49%,
1/20/24
..
31
31
991588116.UG.FTS.B,
29.49%,
1/20/24
..
117
119
991588289.UG.FTS.B,
29.49%,
1/20/24
..
116
16
991588825.UG.FTS.B,
29.49%,
1/20/24
..
152
154
991588849.UG.FTS.B,
29.49%,
1/20/24
..
385
392
991589053.UG.FTS.B,
29.49%,
1/20/24
..
190
191
991589138.UG.FTS.B,
29.49%,
1/20/24
..
70
71
991589350.UG.FTS.B,
29.49%,
1/20/24
..
70
71
991591243.UG.FTS.B,
29.49%,
1/20/24
..
214
212
991592194.UG.FTS.B,
29.49%,
1/20/24
..
163
23
991592314.UG.FTS.B,
29.49%,
1/20/24
..
160
163
991592580.UG.FTS.B,
29.49%,
1/20/24
..
139
140
991592649.UG.FTS.B,
29.49%,
1/20/24
..
5
5
991593009.UG.FTS.B,
29.49%,
1/20/24
..
108
110
991593482.UG.FTS.B,
29.49%,
1/20/24
..
107
109
991593821.UG.FTS.B,
29.49%,
1/20/24
..
273
39
991595921.UG.FTS.B,
29.49%,
1/20/24
..
95
97
991596898.UG.FTS.B,
29.49%,
1/20/24
..
236
237
991597626.UG.FTS.B,
29.49%,
1/20/24
..
903
920
991597653.UG.FTS.B,
29.49%,
1/20/24
..
237
240
991598266.UG.FTS.B,
29.49%,
1/20/24
..
300
304
991598468.UG.FTS.B,
29.49%,
1/20/24
..
76
77
991598552.UG.FTS.B,
29.49%,
1/20/24
..
187
190
991599180.UG.FTS.B,
29.49%,
1/20/24
..
365
373
991600264.UG.FTS.B,
29.49%,
1/20/24
..
562
573
991601031.UG.FTS.B,
29.49%,
1/20/24
..
362
368
991601123.UG.FTS.B,
29.49%,
1/20/24
..
417
425
991601688.UG.FTS.B,
29.49%,
1/20/24
..
292
296
991603595.UG.FTS.B,
29.49%,
1/20/24
..
187
191
991603779.UG.FTS.B,
29.49%,
1/20/24
..
54
55
991604353.UG.FTS.B,
29.49%,
1/20/24
..
48
49
991605878.UG.FTS.B,
29.49%,
1/20/24
..
62
63
991608039.UG.FTS.B,
29.49%,
1/20/24
..
129
131
991608834.UG.FTS.B,
29.49%,
1/20/24
..
228
232
991610039.UG.FTS.B,
29.49%,
1/20/24
..
53
53
991610447.UG.FTS.B,
29.49%,
1/20/24
..
39
39
991610831.UG.FTS.B,
29.49%,
1/20/24
..
112
114
991611126.UG.FTS.B,
29.49%,
1/20/24
..
79
79
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991611241.UG.FTS.B,
29.49%,
1/20/24
..
$
205
$
208
991612399.UG.FTS.B,
29.49%,
1/20/24
..
389
393
991612448.UG.FTS.B,
29.49%,
1/20/24
..
161
164
991612790.UG.FTS.B,
29.49%,
1/20/24
..
118
120
991613037.UG.FTS.B,
29.49%,
1/20/24
..
59
59
991614479.UG.FTS.B,
29.49%,
1/20/24
..
61
61
991616120.UG.FTS.B,
29.49%,
1/20/24
..
92
92
991616778.UG.FTS.B,
29.49%,
1/20/24
..
48
49
991617558.UG.FTS.B,
29.49%,
1/20/24
..
547
556
991619508.UG.FTS.B,
29.49%,
1/20/24
..
177
178
991620017.UG.FTS.B,
29.49%,
1/20/24
..
73
74
991620427.UG.FTS.B,
29.49%,
1/20/24
..
190
190
991621373.UG.FTS.B,
29.49%,
1/20/24
..
147
148
991622812.UG.FTS.B,
29.49%,
1/20/24
..
60
61
991623752.UG.FTS.B,
29.49%,
1/20/24
..
795
801
991624921.UG.FTS.B,
29.49%,
1/20/24
..
82
83
991628593.UG.FTS.B,
29.49%,
1/20/24
..
12
12
991628891.UG.FTS.B,
29.49%,
1/20/24
..
53
54
991629452.UG.FTS.B,
29.49%,
1/20/24
..
465
474
991630097.UG.FTS.B,
29.49%,
1/20/24
..
172
177
991630221.UG.FTS.B,
29.49%,
1/20/24
..
13
13
991630527.UG.FTS.B,
29.49%,
1/20/24
..
13
13
991630651.UG.FTS.B,
29.49%,
1/20/24
..
39
39
991631733.UG.FTS.B,
29.49%,
1/20/24
..
416
423
991631740.UG.FTS.B,
29.49%,
1/20/24
..
511
515
991633536.UG.FTS.B,
29.49%,
1/20/24
..
62
63
991633913.UG.FTS.B,
29.49%,
1/20/24
..
1
1
991634055.UG.FTS.B,
29.49%,
1/20/24
..
296
301
991636984.UG.FTS.B,
29.49%,
1/20/24
..
28
28
991638534.UG.FTS.B,
29.49%,
1/20/24
..
77
78
991638792.UG.FTS.B,
29.49%,
1/20/24
..
61
62
991638936.UG.FTS.B,
29.49%,
1/20/24
..
113
115
991642104.UG.FTS.B,
29.49%,
1/20/24
..
108
110
991642333.UG.FTS.B,
29.49%,
1/20/24
..
98
99
991644245.UG.FTS.B,
29.49%,
1/20/24
..
208
15
991644578.UG.FTS.B,
29.49%,
1/20/24
..
740
738
991645038.UG.FTS.B,
29.49%,
1/20/24
..
50
51
991647492.UG.FTS.B,
29.49%,
1/20/24
..
49
49
991648153.UG.FTS.B,
29.49%,
1/20/24
..
433
439
991648571.UG.FTS.B,
29.49%,
1/20/24
..
90
92
991649794.UG.FTS.B,
29.49%,
1/20/24
..
8
8
991650219.UG.FTS.B,
29.49%,
1/20/24
..
59
60
991651171.UG.FTS.B,
29.49%,
1/20/24
..
87
89
991654262.UG.FTS.B,
29.49%,
1/20/24
..
251
256
991655398.UG.FTS.B,
29.49%,
1/20/24
..
363
371
991662686.UG.FTS.B,
29.49%,
1/20/24
..
252
256
991663995.UG.FTS.B,
29.49%,
1/20/24
..
124
126
991664280.UG.FTS.B,
29.49%,
1/20/24
..
28
28
991664444.UG.FTS.B,
29.49%,
1/20/24
..
87
89
991664772.UG.FTS.B,
29.49%,
1/20/24
..
1,183
1,215
991664944.UG.FTS.B,
29.49%,
1/20/24
..
136
139
991665332.UG.FTS.B,
29.49%,
1/20/24
..
363
370
991667531.UG.FTS.B,
29.49%,
1/20/24
..
359
362
991668118.UG.FTS.B,
29.49%,
1/20/24
..
25
25
991670414.UG.FTS.B,
29.49%,
1/20/24
..
26
26
991673351.UG.FTS.B,
29.49%,
1/20/24
..
62
62
991673779.UG.FTS.B,
29.49%,
1/20/24
..
179
181
991674489.UG.FTS.B,
29.49%,
1/20/24
..
515
524
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
99
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991674639.UG.FTS.B,
29.49%,
1/20/24
..
$
160
$
163
991676890.UG.FTS.B,
29.49%,
1/20/24
..
18
18
991677407.UG.FTS.B,
29.49%,
1/20/24
..
143
144
991678755.UG.FTS.B,
29.49%,
1/20/24
..
26
26
991678827.UG.FTS.B,
29.49%,
1/20/24
..
322
323
991682318.UG.FTS.B,
29.49%,
1/20/24
..
240
238
991683321.UG.FTS.B,
29.49%,
1/20/24
..
906
920
991685152.UG.FTS.B,
29.49%,
1/20/24
..
60
61
991685389.UG.FTS.B,
29.49%,
1/20/24
..
22
22
991689170.UG.FTS.B,
29.49%,
1/20/24
..
87
88
991691631.UG.FTS.B,
29.49%,
1/20/24
..
730
735
991691915.UG.FTS.B,
29.49%,
1/20/24
..
30
29
991692076.UG.FTS.B,
29.49%,
1/20/24
..
106
106
991695535.UG.FTS.B,
29.49%,
1/20/24
..
874
881
991695616.UG.FTS.B,
29.49%,
1/20/24
..
65
66
991695976.UG.FTS.B,
29.49%,
1/20/24
..
158
161
991697093.UG.FTS.B,
29.49%,
1/20/24
..
39
39
991697236.UG.FTS.B,
29.49%,
1/20/24
..
362
368
991697324.UG.FTS.B,
29.49%,
1/20/24
..
55
56
991698513.UG.FTS.B,
29.49%,
1/20/24
..
19
19
991699556.UG.FTS.B,
29.49%,
1/20/24
..
1,317
1,305
991701120.UG.FTS.B,
29.49%,
1/20/24
..
174
24
991701454.UG.FTS.B,
29.49%,
1/20/24
..
493
493
991703124.UG.FTS.B,
29.49%,
1/20/24
..
142
141
991705848.UG.FTS.B,
29.49%,
1/20/24
..
22
22
991706145.UG.FTS.B,
29.49%,
1/20/24
..
159
160
991708222.UG.FTS.B,
29.49%,
1/20/24
..
56
57
991709088.UG.FTS.B,
29.49%,
1/20/24
..
17
18
991709888.UG.FTS.B,
29.49%,
1/20/24
..
161
161
991709935.UG.FTS.B,
29.49%,
1/20/24
..
595
598
991711876.UG.FTS.B,
29.49%,
1/20/24
..
64
65
991713015.UG.FTS.B,
29.49%,
1/20/24
..
289
290
991713832.UG.FTS.B,
29.49%,
1/20/24
..
19
19
991714517.UG.FTS.B,
29.49%,
1/20/24
..
36
37
991715260.UG.FTS.B,
29.49%,
1/20/24
..
42
42
991717301.UG.FTS.B,
29.49%,
1/20/24
..
333
336
991719630.UG.FTS.B,
29.49%,
1/20/24
..
181
182
991720995.UG.FTS.B,
29.49%,
1/20/24
..
110
111
991721227.UG.FTS.B,
29.49%,
1/20/24
..
90
91
991726781.UG.FTS.B,
29.49%,
1/20/24
..
119
120
991729207.UG.FTS.B,
29.49%,
1/20/24
..
5
5
991730813.UG.FTS.B,
29.49%,
1/20/24
..
180
181
991733962.UG.FTS.B,
29.49%,
1/20/24
..
31
31
991734314.UG.FTS.B,
29.49%,
1/20/24
..
412
415
991734330.UG.FTS.B,
29.49%,
1/20/24
..
85
84
991734632.UG.FTS.B,
29.49%,
1/20/24
..
137
138
991734917.UG.FTS.B,
29.49%,
1/20/24
..
39
39
991738258.UG.FTS.B,
29.49%,
1/20/24
..
11
11
991738975.UG.FTS.B,
29.49%,
1/20/24
..
132
132
991739160.UG.FTS.B,
29.49%,
1/20/24
..
60
60
991740784.UG.FTS.B,
29.49%,
1/20/24
..
270
272
991741702.UG.FTS.B,
29.49%,
1/20/24
..
216
214
991741936.UG.FTS.B,
29.49%,
1/20/24
..
67
68
991742956.UG.FTS.B,
29.49%,
1/20/24
..
49
50
991743853.UG.FTS.B,
29.49%,
1/20/24
..
7
7
991746610.UG.FTS.B,
29.49%,
1/20/24
..
27
27
991748931.UG.FTS.B,
29.49%,
1/20/24
..
144
144
991749058.UG.FTS.B,
29.49%,
1/20/24
..
135
134
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991750028.UG.FTS.B,
29.49%,
1/20/24
..
$
180
$
181
991752553.UG.FTS.B,
29.49%,
1/20/24
..
2
2
991753131.UG.FTS.B,
29.49%,
1/20/24
..
106
105
991753534.UG.FTS.B,
29.49%,
1/20/24
..
65
66
991757872.UG.FTS.B,
29.49%,
1/20/24
..
85
86
991758242.UG.FTS.B,
29.49%,
1/20/24
..
620
622
991758775.UG.FTS.B,
29.49%,
1/20/24
..
22
22
991761410.UG.FTS.B,
29.49%,
1/20/24
..
237
238
991763039.UG.FTS.B,
29.49%,
1/20/24
..
290
292
991763095.UG.FTS.B,
29.49%,
1/20/24
..
43
43
991764702.UG.FTS.B,
29.49%,
1/20/24
..
47
47
991765334.UG.FTS.B,
29.49%,
1/20/24
..
98
99
991765425.UG.FTS.B,
29.49%,
1/20/24
..
218
219
991766289.UG.FTS.B,
29.49%,
1/20/24
..
23
23
991767894.UG.FTS.B,
29.49%,
1/20/24
..
51
50
991767961.UG.FTS.B,
29.49%,
1/20/24
..
5
5
991769883.UG.FTS.B,
29.49%,
1/20/24
..
27
27
991775430.UG.FTS.B,
29.49%,
1/20/24
..
27
27
991782567.UG.FTS.B,
29.49%,
1/20/24
..
300
23
991782660.UG.FTS.B,
29.49%,
1/20/24
..
90
90
991784506.UG.FTS.B,
29.49%,
1/20/24
..
99
99
991790149.UG.FTS.B,
29.49%,
1/20/24
..
47
48
991790198.UG.FTS.B,
29.49%,
1/20/24
..
157
157
991756970.UG.FTS.B,
29.98%,
1/20/24
..
15
15
991753382.UG.FTS.B,
29.99%,
1/20/24
..
27
27
991738034.UG.FTS.B,
18.47%,
1/21/24
..
259
263
991742379.UG.FTS.B,
18.47%,
1/21/24
..
44
45
991664565.UG.FTS.B,
18.71%,
1/21/24
..
1,489
1,514
991737023.UG.FTS.B,
19.96%,
1/21/24
..
5
5
991750733.UG.FTS.B,
19.99%,
1/21/24
..
115
116
991777439.UG.FTS.B,
19.99%,
1/21/24
..
19
19
991692614.UG.FTS.B,
20.47%,
1/21/24
..
51
52
991772968.UG.FTS.B,
20.47%,
1/21/24
..
14
14
991782326.UG.FTS.B,
20.96%,
1/21/24
..
74
75
991663159.UG.FTS.B,
21.48%,
1/21/24
..
37
37
991729600.UG.FTS.B,
21.48%,
1/21/24
..
224
227
991763939.UG.FTS.B,
21.48%,
1/21/24
..
11
11
991767885.UG.FTS.B,
21.48%,
1/21/24
..
86
88
991741170.UG.FTS.B,
22.45%,
1/21/24
..
107
108
991794845.UG.FTS.B,
22.47%,
1/21/24
..
700
708
991709231.UG.FTS.B,
23.45%,
1/21/24
..
146
147
991788297.UG.FTS.B,
23.45%,
1/21/24
..
36
36
991762477.UG.FTS.B,
24.45%,
1/21/24
..
148
149
991669352.UG.FTS.B,
26.49%,
1/21/24
..
96
98
991671256.UG.FTS.B,
28.48%,
1/21/24
..
28
28
991676938.UG.FTS.B,
28.48%,
1/21/24
..
2
2
991677773.UG.FTS.B,
28.48%,
1/21/24
..
100
103
991693706.UG.FTS.B,
28.48%,
1/21/24
..
239
243
991693767.UG.FTS.B,
28.48%,
1/21/24
..
77
78
991705146.UG.FTS.B,
28.48%,
1/21/24
..
288
295
991711024.UG.FTS.B,
28.48%,
1/21/24
..
320
322
991723171.UG.FTS.B,
28.48%,
1/21/24
..
271
274
991723414.UG.FTS.B,
28.48%,
1/21/24
..
427
432
991730921.UG.FTS.B,
28.48%,
1/21/24
..
514
518
991731530.UG.FTS.B,
28.48%,
1/21/24
..
450
455
991742115.UG.FTS.B,
28.48%,
1/21/24
..
7
7
991744039.UG.FTS.B,
28.48%,
1/21/24
..
15
16
991753814.UG.FTS.B,
28.48%,
1/21/24
..
21
21
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991782284.UG.FTS.B,
28.48%,
1/21/24
..
$
32
$
32
991784545.UG.FTS.B,
28.48%,
1/21/24
..
118
119
991675657.UG.FTS.B,
29.48%,
1/21/24
..
200
204
991700808.UG.FTS.B,
29.48%,
1/21/24
..
4
4
991702147.UG.FTS.B,
29.48%,
1/21/24
..
17
17
991702778.UG.FTS.B,
29.48%,
1/21/24
..
149
152
991703577.UG.FTS.B,
29.48%,
1/21/24
..
597
610
991709023.UG.FTS.B,
29.48%,
1/21/24
..
153
155
991730501.UG.FTS.B,
29.48%,
1/21/24
..
903
912
991738870.UG.FTS.B,
29.48%,
1/21/24
..
46
47
991751249.UG.FTS.B,
29.48%,
1/21/24
..
33
34
991755823.UG.FTS.B,
29.48%,
1/21/24
..
16
17
991756563.UG.FTS.B,
29.48%,
1/21/24
..
150
152
991777145.UG.FTS.B,
29.48%,
1/21/24
..
131
132
991633202.UG.FTS.B,
29.49%,
1/21/24
..
144
147
991662829.UG.FTS.B,
29.49%,
1/21/24
..
68
69
991662956.UG.FTS.B,
29.49%,
1/21/24
..
108
(2)
991663489.UG.FTS.B,
29.49%,
1/21/24
..
148
149
991664100.UG.FTS.B,
29.49%,
1/21/24
..
48
49
991665543.UG.FTS.B,
29.49%,
1/21/24
..
91
93
991665955.UG.FTS.B,
29.49%,
1/21/24
..
47
7
991668162.UG.FTS.B,
29.49%,
1/21/24
..
48
49
991668483.UG.FTS.B,
29.49%,
1/21/24
..
33
33
991669590.UG.FTS.B,
29.49%,
1/21/24
..
84
86
991670212.UG.FTS.B,
29.49%,
1/21/24
..
78
79
991670452.UG.FTS.B,
29.49%,
1/21/24
..
274
275
991672118.UG.FTS.B,
29.49%,
1/21/24
..
352
355
991672853.UG.FTS.B,
29.49%,
1/21/24
..
55
56
991673090.UG.FTS.B,
29.49%,
1/21/24
..
50
50
991674019.UG.FTS.B,
29.49%,
1/21/24
..
97
74
991674358.UG.FTS.B,
29.49%,
1/21/24
..
440
64
991676471.UG.FTS.B,
29.49%,
1/21/24
..
36
36
991677244.UG.FTS.B,
29.49%,
1/21/24
..
229
234
991680867.UG.FTS.B,
29.49%,
1/21/24
..
173
177
991680983.UG.FTS.B,
29.49%,
1/21/24
..
108
110
991681379.UG.FTS.B,
29.49%,
1/21/24
..
308
310
991683221.UG.FTS.B,
29.49%,
1/21/24
..
242
240
991684667.UG.FTS.B,
29.49%,
1/21/24
..
4
4
991687038.UG.FTS.B,
29.49%,
1/21/24
..
49
50
991688837.UG.FTS.B,
29.49%,
1/21/24
..
544
553
991689800.UG.FTS.B,
29.49%,
1/21/24
..
146
148
991691567.UG.FTS.B,
29.49%,
1/21/24
..
282
287
991692064.UG.FTS.B,
29.49%,
1/21/24
..
123
123
991692483.UG.FTS.B,
29.49%,
1/21/24
..
23
23
991693634.UG.FTS.B,
29.49%,
1/21/24
..
129
131
991694076.UG.FTS.B,
29.49%,
1/21/24
..
5
5
991694165.UG.FTS.B,
29.49%,
1/21/24
..
257
262
991694337.UG.FTS.B,
29.49%,
1/21/24
..
85
85
991694645.UG.FTS.B,
29.49%,
1/21/24
..
232
236
991695164.UG.FTS.B,
29.49%,
1/21/24
..
324
324
991695880.UG.FTS.B,
29.49%,
1/21/24
..
89
66
991695945.UG.FTS.B,
29.49%,
1/21/24
..
45
45
991696264.UG.FTS.B,
29.49%,
1/21/24
..
283
40
991698072.UG.FTS.B,
29.49%,
1/21/24
..
119
119
991699892.UG.FTS.B,
29.49%,
1/21/24
..
109
109
991700144.UG.FTS.B,
29.49%,
1/21/24
..
372
(4)
991701379.UG.FTS.B,
29.49%,
1/21/24
..
78
62
991702123.UG.FTS.B,
29.49%,
1/21/24
..
430
433
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991703953.UG.FTS.B,
29.49%,
1/21/24
..
$
181
$
185
991704641.UG.FTS.B,
29.49%,
1/21/24
..
425
427
991705635.UG.FTS.B,
29.49%,
1/21/24
..
307
313
991706927.UG.FTS.B,
29.49%,
1/21/24
..
115
115
991711423.UG.FTS.B,
29.49%,
1/21/24
..
636
642
991713176.UG.FTS.B,
29.49%,
1/21/24
..
64
63
991715638.UG.FTS.B,
29.49%,
1/21/24
..
301
44
991716207.UG.FTS.B,
29.49%,
1/21/24
..
146
147
991717827.UG.FTS.B,
29.49%,
1/21/24
..
556
558
991717854.UG.FTS.B,
29.49%,
1/21/24
..
108
110
991718420.UG.FTS.B,
29.49%,
1/21/24
..
187
191
991721760.UG.FTS.B,
29.49%,
1/21/24
..
497
498
991726453.UG.FTS.B,
29.49%,
1/21/24
..
61
61
991726827.UG.FTS.B,
29.49%,
1/21/24
..
107
78
991727146.UG.FTS.B,
29.49%,
1/21/24
..
151
152
991727637.UG.FTS.B,
29.49%,
1/21/24
..
73
73
991727684.UG.FTS.B,
29.49%,
1/21/24
..
46
47
991730534.UG.FTS.B,
29.49%,
1/21/24
..
135
136
991731721.UG.FTS.B,
29.49%,
1/21/24
..
906
908
991732216.UG.FTS.B,
29.49%,
1/21/24
..
88
88
991733904.UG.FTS.B,
29.49%,
1/21/24
..
404
405
991735274.UG.FTS.B,
29.49%,
1/21/24
..
39
38
991736591.UG.FTS.B,
29.49%,
1/21/24
..
5
5
991737559.UG.FTS.B,
29.49%,
1/21/24
..
235
238
991737693.UG.FTS.B,
29.49%,
1/21/24
..
21
21
991740725.UG.FTS.B,
29.49%,
1/21/24
..
406
410
991741197.UG.FTS.B,
29.49%,
1/21/24
..
15
15
991741282.UG.FTS.B,
29.49%,
1/21/24
..
35
36
991741497.UG.FTS.B,
29.49%,
1/21/24
..
268
270
991743085.UG.FTS.B,
29.49%,
1/21/24
..
120
120
991743377.UG.FTS.B,
29.49%,
1/21/24
..
17
17
991743560.UG.FTS.B,
29.49%,
1/21/24
..
79
81
991744629.UG.FTS.B,
29.49%,
1/21/24
..
90
90
991745718.UG.FTS.B,
29.49%,
1/21/24
..
107
107
991747055.UG.FTS.B,
29.49%,
1/21/24
..
266
267
991747057.UG.FTS.B,
29.49%,
1/21/24
..
53
54
991747988.UG.FTS.B,
29.49%,
1/21/24
..
80
80
991749304.UG.FTS.B,
29.49%,
1/21/24
..
63
63
991749903.UG.FTS.B,
29.49%,
1/21/24
..
886
893
991751438.UG.FTS.B,
29.49%,
1/21/24
..
48
49
991752415.UG.FTS.B,
29.49%,
1/21/24
..
10
10
991752947.UG.FTS.B,
29.49%,
1/21/24
..
89
89
991753846.UG.FTS.B,
29.49%,
1/21/24
..
153
155
991754747.UG.FTS.B,
29.49%,
1/21/24
..
95
13
991761541.UG.FTS.B,
29.49%,
1/21/24
..
180
181
991762054.UG.FTS.B,
29.49%,
1/21/24
..
10
10
991764516.UG.FTS.B,
29.49%,
1/21/24
..
67
68
991764924.UG.FTS.B,
29.49%,
1/21/24
..
212
214
991765169.UG.FTS.B,
29.49%,
1/21/24
..
293
22
991766424.UG.FTS.B,
29.49%,
1/21/24
..
90
90
991773483.UG.FTS.B,
29.49%,
1/21/24
..
126
127
991777657.UG.FTS.B,
29.49%,
1/21/24
..
64
65
991782683.UG.FTS.B,
29.49%,
1/21/24
..
719
725
991783245.UG.FTS.B,
29.49%,
1/21/24
..
72
74
991783756.UG.FTS.B,
29.49%,
1/21/24
..
328
46
991787633.UG.FTS.B,
29.49%,
1/21/24
..
0
0
991789018.UG.FTS.B,
29.49%,
1/21/24
..
8
8
991792435.UG.FTS.B,
29.49%,
1/21/24
..
1,347
1,360
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
101
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991797353.UG.FTS.B,
29.49%,
1/21/24
..
$
49
$
50
991709002.UG.FTS.B,
15%,
1/22/24
.....
113
116
991706603.UG.FTS.B,
15.47%,
1/22/24
..
37
37
991629665.UG.FTS.B,
18.71%,
1/22/24
..
504
516
991651259.UG.FTS.B,
18.71%,
1/22/24
..
136
140
991651374.UG.FTS.B,
18.71%,
1/22/24
..
89
91
991739678.UG.FTS.B,
18.71%,
1/22/24
..
260
264
991769793.UG.FTS.B,
18.71%,
1/22/24
..
43
44
991660263.UG.FTS.B,
19.3%,
1/22/24
...
298
305
991789404.UG.FTS.B,
19.8%,
1/22/24
...
19
19
991635081.UG.FTS.B,
19.96%,
1/22/24
..
360
369
991634052.UG.FTS.B,
19.99%,
1/22/24
..
18
18
991650062.UG.FTS.B,
19.99%,
1/22/24
..
41
42
991626851.UG.FTS.B,
20.47%,
1/22/24
..
9
9
991710107.UG.FTS.B,
20.47%,
1/22/24
..
138
140
991712989.UG.FTS.B,
20.47%,
1/22/24
..
264
268
991775322.UG.FTS.B,
20.47%,
1/22/24
..
134
136
991783332.UG.FTS.B,
20.47%,
1/22/24
..
444
451
991663050.UG.FTS.B,
20.96%,
1/22/24
..
519
526
991774181.UG.FTS.B,
20.96%,
1/22/24
..
214
217
991780816.UG.FTS.B,
20.96%,
1/22/24
..
107
109
991651393.UG.FTS.B,
21.48%,
1/22/24
..
389
402
991654213.UG.FTS.B,
21.48%,
1/22/24
..
438
443
991705819.UG.FTS.B,
21.48%,
1/22/24
..
288
37
991721409.UG.FTS.B,
21.48%,
1/22/24
..
121
123
991756912.UG.FTS.B,
21.48%,
1/22/24
..
104
106
991632464.UG.FTS.B,
22.47%,
1/22/24
..
638
48
991653283.UG.FTS.B,
22.47%,
1/22/24
..
8
8
991765596.UG.FTS.B,
22.47%,
1/22/24
..
82
84
991779844.UG.FTS.B,
22.47%,
1/22/24
..
64
65
991805093.UG.FTS.B,
22.47%,
1/22/24
..
200
15
991699664.UG.FTS.B,
25.45%,
1/22/24
..
82
84
991787514.UG.FTS.B,
26.44%,
1/22/24
..
82
6
991631012.UG.FTS.B,
28.48%,
1/22/24
..
159
161
991642188.UG.FTS.B,
28.48%,
1/22/24
..
208
29
991645563.UG.FTS.B,
28.48%,
1/22/24
..
504
515
991662739.UG.FTS.B,
28.48%,
1/22/24
..
207
211
991668823.UG.FTS.B,
28.48%,
1/22/24
..
242
247
991672489.UG.FTS.B,
28.48%,
1/22/24
..
87
87
991684285.UG.FTS.B,
28.48%,
1/22/24
..
60
61
991698246.UG.FTS.B,
28.48%,
1/22/24
..
30
30
991725934.UG.FTS.B,
28.48%,
1/22/24
..
114
116
991637365.UG.FTS.B,
29.48%,
1/22/24
..
124
126
991639954.UG.FTS.B,
29.48%,
1/22/24
..
167
171
991651882.UG.FTS.B,
29.48%,
1/22/24
..
25
0
991637859.UG.FTS.B,
29.49%,
1/22/24
..
14
14
991639216.UG.FTS.B,
29.49%,
1/22/24
..
21
21
991639973.UG.FTS.B,
29.49%,
1/22/24
..
26
26
991640077.UG.FTS.B,
29.49%,
1/22/24
..
99
101
991641531.UG.FTS.B,
29.49%,
1/22/24
..
499
504
991649089.UG.FTS.B,
29.49%,
1/22/24
..
1,129
1,152
991650586.UG.FTS.B,
29.49%,
1/22/24
..
48
48
991659080.UG.FTS.B,
29.49%,
1/22/24
..
131
131
991660122.UG.FTS.B,
29.49%,
1/22/24
..
98
99
991660601.UG.FTS.B,
29.49%,
1/22/24
..
94
94
991669713.UG.FTS.B,
29.49%,
1/22/24
..
48
48
991671088.UG.FTS.B,
29.49%,
1/22/24
..
28
2
991672504.UG.FTS.B,
29.49%,
1/22/24
..
1,506
1,528
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991681193.UG.FTS.B,
29.49%,
1/22/24
..
$
19
$
19
991681500.UG.FTS.B,
29.49%,
1/22/24
..
50
51
991684648.UG.FTS.B,
29.49%,
1/22/24
..
153
154
991688463.UG.FTS.B,
29.49%,
1/22/24
..
33
34
991688852.UG.FTS.B,
29.49%,
1/22/24
..
81
81
991692165.UG.FTS.B,
29.49%,
1/22/24
..
61
61
991695398.UG.FTS.B,
29.49%,
1/22/24
..
23
24
991696271.UG.FTS.B,
29.49%,
1/22/24
..
956
974
991698780.UG.FTS.B,
29.49%,
1/22/24
..
38
37
991709431.UG.FTS.B,
29.49%,
1/22/24
..
151
150
991709501.UG.FTS.B,
29.49%,
1/22/24
..
42
42
991722363.UG.FTS.B,
29.49%,
1/22/24
..
136
139
991722481.UG.FTS.B,
29.49%,
1/22/24
..
116
85
991723437.UG.FTS.B,
29.49%,
1/22/24
..
116
117
991734177.UG.FTS.B,
29.49%,
1/22/24
..
140
141
991749833.UG.FTS.B,
29.49%,
1/22/24
..
198
200
991749875.UG.FTS.B,
29.49%,
1/22/24
..
28
28
991750988.UG.FTS.B,
29.49%,
1/22/24
..
88
89
991752681.UG.FTS.B,
29.49%,
1/22/24
..
12
12
991753916.UG.FTS.B,
29.49%,
1/22/24
..
641
639
991754101.UG.FTS.B,
29.49%,
1/22/24
..
27
28
991758942.UG.FTS.B,
29.49%,
1/22/24
..
209
211
991759109.UG.FTS.B,
29.49%,
1/22/24
..
22
22
991765647.UG.FTS.B,
29.49%,
1/22/24
..
308
308
991766286.UG.FTS.B,
29.49%,
1/22/24
..
44
45
991772721.UG.FTS.B,
29.49%,
1/22/24
..
1,890
1,890
991777744.UG.FTS.B,
29.49%,
1/22/24
..
43
38
991778279.UG.FTS.B,
29.49%,
1/22/24
..
29
29
991781280.UG.FTS.B,
29.49%,
1/22/24
..
24
24
991784913.UG.FTS.B,
29.49%,
1/22/24
..
100
100
991786882.UG.FTS.B,
29.49%,
1/22/24
..
41
41
991788968.UG.FTS.B,
29.49%,
1/22/24
..
315
317
991792404.UG.FTS.B,
29.49%,
1/22/24
..
16
16
991796239.UG.FTS.B,
29.49%,
1/22/24
..
459
457
991804043.UG.FTS.B,
29.49%,
1/22/24
..
29
29
991808260.UG.FTS.B,
29.49%,
1/22/24
..
63
64
991809949.UG.FTS.B,
29.49%,
1/22/24
..
289
208
991662997.UG.FTS.B,
16.49%,
1/23/24
..
136
140
991676903.UG.FTS.B,
18.47%,
1/23/24
..
131
134
991685683.UG.FTS.B,
18.47%,
1/23/24
..
156
158
991743736.UG.FTS.B,
18.47%,
1/23/24
..
7
8
991774569.UG.FTS.B,
18.47%,
1/23/24
..
102
104
991658503.UG.FTS.B,
18.71%,
1/23/24
..
25
25
991668353.UG.FTS.B,
18.71%,
1/23/24
..
343
349
991741689.UG.FTS.B,
18.71%,
1/23/24
..
59
59
991629162.UG.FTS.B,
19.3%,
1/23/24
...
126
129
991642674.UG.FTS.B,
19.3%,
1/23/24
...
101
103
991643208.UG.FTS.B,
19.3%,
1/23/24
...
218
222
991784139.UG.FTS.B,
19.3%,
1/23/24
...
2,216
2,252
991785256.UG.FTS.B,
19.3%,
1/23/24
...
124
126
991805907.UG.FTS.B,
19.96%,
1/23/24
..
16
17
991810762.UG.FTS.B,
19.96%,
1/23/24
..
891
905
991646006.UG.FTS.B,
20.47%,
1/23/24
..
110
113
991684036.UG.FTS.B,
20.47%,
1/23/24
..
21
21
991772621.UG.FTS.B,
20.96%,
1/23/24
..
179
181
991802095.UG.FTS.B,
20.96%,
1/23/24
..
837
848
991639951.UG.FTS.B,
21.47%,
1/23/24
..
268
278
991651727.UG.FTS.B,
21.48%,
1/23/24
..
91
94
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
102
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991730828.UG.FTS.B,
22.47%,
1/23/24
..
$
359
$
367
991739009.UG.FTS.B,
22.47%,
1/23/24
..
460
465
991668916.UG.FTS.B,
23.45%,
1/23/24
..
58
59
991678989.UG.FTS.B,
23.45%,
1/23/24
..
233
235
991738725.UG.FTS.B,
23.45%,
1/23/24
..
17
18
991764966.UG.FTS.B,
23.45%,
1/23/24
..
95
97
991805841.UG.FTS.B,
24.45%,
1/23/24
..
131
132
991649840.UG.FTS.B,
25.45%,
1/23/24
..
142
145
991663622.UG.FTS.B,
25.45%,
1/23/24
..
300
305
991818241.UG.FTS.B,
25.45%,
1/23/24
..
38
38
991637815.UG.FTS.B,
26.44%,
1/23/24
..
1,186
1,194
991744228.UG.FTS.B,
26.44%,
1/23/24
..
95
96
991725080.UG.FTS.B,
27.95%,
1/23/24
..
176
175
991767100.UG.FTS.B,
27.99%,
1/23/24
..
88
89
991776539.UG.FTS.B,
27.99%,
1/23/24
..
6
6
991818118.UG.FTS.B,
27.99%,
1/23/24
..
65
65
991631116.UG.FTS.B,
28.48%,
1/23/24
..
151
153
991678715.UG.FTS.B,
28.48%,
1/23/24
..
15
15
991686637.UG.FTS.B,
28.48%,
1/23/24
..
331
334
991692289.UG.FTS.B,
28.48%,
1/23/24
..
88
88
991702713.UG.FTS.B,
28.48%,
1/23/24
..
0
0
991710024.UG.FTS.B,
28.48%,
1/23/24
..
329
333
991710331.UG.FTS.B,
28.48%,
1/23/24
..
54
55
991730901.UG.FTS.B,
28.48%,
1/23/24
..
1,089
1,089
991743333.UG.FTS.B,
28.48%,
1/23/24
..
63
64
991749140.UG.FTS.B,
28.48%,
1/23/24
..
140
(1)
991761044.UG.FTS.B,
28.48%,
1/23/24
..
47
47
991798676.UG.FTS.B,
28.48%,
1/23/24
..
117
118
991635388.UG.FTS.B,
29.48%,
1/23/24
..
625
634
991639192.UG.FTS.B,
29.48%,
1/23/24
..
116
118
991661160.UG.FTS.B,
29.48%,
1/23/24
..
143
144
991661629.UG.FTS.B,
29.48%,
1/23/24
..
37
38
991678696.UG.FTS.B,
29.48%,
1/23/24
..
216
219
991765803.UG.FTS.B,
29.48%,
1/23/24
..
121
122
991789898.UG.FTS.B,
29.48%,
1/23/24
..
43
43
991807034.UG.FTS.B,
29.48%,
1/23/24
..
145
147
991809474.UG.FTS.B,
29.48%,
1/23/24
..
184
186
991631438.UG.FTS.B,
29.49%,
1/23/24
..
60
61
991634459.UG.FTS.B,
29.49%,
1/23/24
..
456
462
991637143.UG.FTS.B,
29.49%,
1/23/24
..
188
191
991639156.UG.FTS.B,
29.49%,
1/23/24
..
673
688
991653477.UG.FTS.B,
29.49%,
1/23/24
..
145
146
991655971.UG.FTS.B,
29.49%,
1/23/24
..
158
162
991660994.UG.FTS.B,
29.49%,
1/23/24
..
126
126
991661636.UG.FTS.B,
29.49%,
1/23/24
..
74
74
991662802.UG.FTS.B,
29.49%,
1/23/24
..
1,494
1,499
991662886.UG.FTS.B,
29.49%,
1/23/24
..
59
60
991663431.UG.FTS.B,
29.49%,
1/23/24
..
132
133
991666530.UG.FTS.B,
29.49%,
1/23/24
..
305
308
991669440.UG.FTS.B,
29.49%,
1/23/24
..
48
48
991675288.UG.FTS.B,
29.49%,
1/23/24
..
275
277
991681725.UG.FTS.B,
29.49%,
1/23/24
..
95
97
991682766.UG.FTS.B,
29.49%,
1/23/24
..
327
331
991683741.UG.FTS.B,
29.49%,
1/23/24
..
32
33
991683781.UG.FTS.B,
29.49%,
1/23/24
..
34
34
991687100.UG.FTS.B,
29.49%,
1/23/24
..
9
9
991701176.UG.FTS.B,
29.49%,
1/23/24
..
110
111
991702141.UG.FTS.B,
29.49%,
1/23/24
..
53
54
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991707605.UG.FTS.B,
29.49%,
1/23/24
..
$
31
$
31
991714113.UG.FTS.B,
29.49%,
1/23/24
..
49
50
991714944.UG.FTS.B,
29.49%,
1/23/24
..
118
118
991724292.UG.FTS.B,
29.49%,
1/23/24
..
344
253
991731407.UG.FTS.B,
29.49%,
1/23/24
..
1,809
1,848
991731683.UG.FTS.B,
29.49%,
1/23/24
..
723
737
991732340.UG.FTS.B,
29.49%,
1/23/24
..
155
156
991744187.UG.FTS.B,
29.49%,
1/23/24
..
176
177
991752739.UG.FTS.B,
29.49%,
1/23/24
..
39
39
991753764.UG.FTS.B,
29.49%,
1/23/24
..
3
3
991758649.UG.FTS.B,
29.49%,
1/23/24
..
16
16
991759990.UG.FTS.B,
29.49%,
1/23/24
..
74
75
991761329.UG.FTS.B,
29.49%,
1/23/24
..
52
53
991761644.UG.FTS.B,
29.49%,
1/23/24
..
8
8
991761841.UG.FTS.B,
29.49%,
1/23/24
..
52
52
991762468.UG.FTS.B,
29.49%,
1/23/24
..
32
33
991762601.UG.FTS.B,
29.49%,
1/23/24
..
44
43
991763034.UG.FTS.B,
29.49%,
1/23/24
..
50
51
991763609.UG.FTS.B,
29.49%,
1/23/24
..
48
4
991765579.UG.FTS.B,
29.49%,
1/23/24
..
206
207
991766223.UG.FTS.B,
29.49%,
1/23/24
..
36
36
991766725.UG.FTS.B,
29.49%,
1/23/24
..
55
56
991771610.UG.FTS.B,
29.49%,
1/23/24
..
331
335
991777333.UG.FTS.B,
29.49%,
1/23/24
..
166
166
991778091.UG.FTS.B,
29.49%,
1/23/24
..
19
19
991796003.UG.FTS.B,
29.49%,
1/23/24
..
72
74
991805214.UG.FTS.B,
29.49%,
1/23/24
..
45
46
991807031.UG.FTS.B,
29.49%,
1/23/24
..
18
18
991807699.UG.FTS.B,
29.49%,
1/23/24
..
13
13
991809214.UG.FTS.B,
29.49%,
1/23/24
..
183
182
991718916.UG.FTS.B,
29.98%,
1/23/24
..
31
32
991661331.UG.FTS.B,
16.49%,
1/24/24
..
133
136
991699066.UG.FTS.B,
16.49%,
1/24/24
..
1,684
1,727
991633382.UG.FTS.B,
17.49%,
1/24/24
..
357
366
991697456.UG.FTS.B,
18.71%,
1/24/24
..
84
86
991719938.UG.FTS.B,
18.71%,
1/24/24
..
209
214
991809110.UG.FTS.B,
19.3%,
1/24/24
...
255
259
991671413.UG.FTS.B,
19.99%,
1/24/24
..
50
51
991675898.UG.FTS.B,
19.99%,
1/24/24
..
27
27
991736791.UG.FTS.B,
19.99%,
1/24/24
..
372
383
991758673.UG.FTS.B,
19.99%,
1/24/24
..
411
415
991678748.UG.FTS.B,
20.47%,
1/24/24
..
272
278
991784784.UG.FTS.B,
20.47%,
1/24/24
..
160
162
991697686.UG.FTS.B,
20.96%,
1/24/24
..
60
60
991756155.UG.FTS.B,
21.47%,
1/24/24
..
57
57
991675015.UG.FTS.B,
21.48%,
1/24/24
..
901
921
991680616.UG.FTS.B,
22.47%,
1/24/24
..
28
0
991693039.UG.FTS.B,
22.47%,
1/24/24
..
253
258
991676936.UG.FTS.B,
27.99%,
1/24/24
..
48
49
991643716.UG.FTS.B,
28.48%,
1/24/24
..
9
9
991643742.UG.FTS.B,
28.48%,
1/24/24
..
241
244
991655876.UG.FTS.B,
28.48%,
1/24/24
..
319
323
991679024.UG.FTS.B,
28.48%,
1/24/24
..
463
469
991683577.UG.FTS.B,
28.48%,
1/24/24
..
38
39
991757153.UG.FTS.B,
28.48%,
1/24/24
..
22
22
991758587.UG.FTS.B,
28.48%,
1/24/24
..
45
45
991791542.UG.FTS.B,
28.48%,
1/24/24
..
11
11
991803895.UG.FTS.B,
28.48%,
1/24/24
..
135
137
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
103
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991804850.UG.FTS.B,
28.48%,
1/24/24
..
$
116
$
117
991583830.UG.FTS.B,
29.48%,
1/24/24
..
16
16
991595875.UG.FTS.B,
29.48%,
1/24/24
..
258
262
991636673.UG.FTS.B,
29.48%,
1/24/24
..
54
55
991666537.UG.FTS.B,
29.48%,
1/24/24
..
46
47
991795779.UG.FTS.B,
29.48%,
1/24/24
..
101
103
991818757.UG.FTS.B,
29.48%,
1/24/24
..
20
20
991575830.UG.FTS.B,
29.49%,
1/24/24
..
957
976
991576816.UG.FTS.B,
29.49%,
1/24/24
..
362
369
991578362.UG.FTS.B,
29.49%,
1/24/24
..
442
442
991578374.UG.FTS.B,
29.49%,
1/24/24
..
210
17
991578487.UG.FTS.B,
29.49%,
1/24/24
..
58
59
991578622.UG.FTS.B,
29.49%,
1/24/24
..
151
21
991591790.UG.FTS.B,
29.49%,
1/24/24
..
438
448
991591971.UG.FTS.B,
29.49%,
1/24/24
..
366
374
991597915.UG.FTS.B,
29.49%,
1/24/24
..
91
93
991619762.UG.FTS.B,
29.49%,
1/24/24
..
40
40
991628575.UG.FTS.B,
29.49%,
1/24/24
..
120
122
991636430.UG.FTS.B,
29.49%,
1/24/24
..
69
71
991638903.UG.FTS.B,
29.49%,
1/24/24
..
0
0
991642727.UG.FTS.B,
29.49%,
1/24/24
..
20
20
991643713.UG.FTS.B,
29.49%,
1/24/24
..
53
8
991648828.UG.FTS.B,
29.49%,
1/24/24
..
283
284
991650075.UG.FTS.B,
29.49%,
1/24/24
..
643
647
991656328.UG.FTS.B,
29.49%,
1/24/24
..
182
186
991661397.UG.FTS.B,
29.49%,
1/24/24
..
93
93
991664182.UG.FTS.B,
29.49%,
1/24/24
..
93
95
991664401.UG.FTS.B,
29.49%,
1/24/24
..
43
43
991665767.UG.FTS.B,
29.49%,
1/24/24
..
108
110
991668476.UG.FTS.B,
29.49%,
1/24/24
..
524
529
991668572.UG.FTS.B,
29.49%,
1/24/24
..
4
4
991670149.UG.FTS.B,
29.49%,
1/24/24
..
80
80
991672296.UG.FTS.B,
29.49%,
1/24/24
..
281
287
991677221.UG.FTS.B,
29.49%,
1/24/24
..
61
61
991677415.UG.FTS.B,
29.49%,
1/24/24
..
53
53
991677825.UG.FTS.B,
29.49%,
1/24/24
..
4
4
991678065.UG.FTS.B,
29.49%,
1/24/24
..
46
47
991680656.UG.FTS.B,
29.49%,
1/24/24
..
22
22
991683730.UG.FTS.B,
29.49%,
1/24/24
..
92
95
991683767.UG.FTS.B,
29.49%,
1/24/24
..
315
321
991685775.UG.FTS.B,
29.49%,
1/24/24
..
110
113
991686888.UG.FTS.B,
29.49%,
1/24/24
..
190
192
991688167.UG.FTS.B,
29.49%,
1/24/24
..
161
164
991694352.UG.FTS.B,
29.49%,
1/24/24
..
73
74
991697780.UG.FTS.B,
29.49%,
1/24/24
..
66
67
991700002.UG.FTS.B,
29.49%,
1/24/24
..
2
2
991700987.UG.FTS.B,
29.49%,
1/24/24
..
444
453
991706072.UG.FTS.B,
29.49%,
1/24/24
..
272
270
991706865.UG.FTS.B,
29.49%,
1/24/24
..
23
23
991711786.UG.FTS.B,
29.49%,
1/24/24
..
978
988
991715487.UG.FTS.B,
29.49%,
1/24/24
..
185
186
991717669.UG.FTS.B,
29.49%,
1/24/24
..
92
94
991719521.UG.FTS.B,
29.49%,
1/24/24
..
302
308
991720702.UG.FTS.B,
29.49%,
1/24/24
..
465
466
991725620.UG.FTS.B,
29.49%,
1/24/24
..
28
28
991727127.UG.FTS.B,
29.49%,
1/24/24
..
44
43
991729920.UG.FTS.B,
29.49%,
1/24/24
..
140
139
991734337.UG.FTS.B,
29.49%,
1/24/24
..
26
26
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991739712.UG.FTS.B,
29.49%,
1/24/24
..
$
89
$
91
991743320.UG.FTS.B,
29.49%,
1/24/24
..
51
51
991743723.UG.FTS.B,
29.49%,
1/24/24
..
19
19
991744589.UG.FTS.B,
29.49%,
1/24/24
..
10
10
991746557.UG.FTS.B,
29.49%,
1/24/24
..
251
254
991761049.UG.FTS.B,
29.49%,
1/24/24
..
11
11
991762599.UG.FTS.B,
29.49%,
1/24/24
..
55
56
991764023.UG.FTS.B,
29.49%,
1/24/24
..
12
12
991764921.UG.FTS.B,
29.49%,
1/24/24
..
48
49
991767615.UG.FTS.B,
29.49%,
1/24/24
..
544
549
991768107.UG.FTS.B,
29.49%,
1/24/24
..
208
207
991775830.UG.FTS.B,
29.49%,
1/24/24
..
139
139
991782107.UG.FTS.B,
29.49%,
1/24/24
..
27
27
991784482.UG.FTS.B,
29.49%,
1/24/24
..
140
141
991786686.UG.FTS.B,
29.49%,
1/24/24
..
25
26
991790063.UG.FTS.B,
29.49%,
1/24/24
..
56
56
991790699.UG.FTS.B,
29.49%,
1/24/24
..
181
181
991791346.UG.FTS.B,
29.49%,
1/24/24
..
48
48
991791554.UG.FTS.B,
29.49%,
1/24/24
..
24
24
991803237.UG.FTS.B,
29.49%,
1/24/24
..
112
113
991806718.UG.FTS.B,
29.49%,
1/24/24
..
47
48
991812021.UG.FTS.B,
29.49%,
1/24/24
..
99
99
991812293.UG.FTS.B,
29.49%,
1/24/24
..
15
15
991821114.UG.FTS.B,
29.49%,
1/24/24
..
5
5
991822948.UG.FTS.B,
29.49%,
1/24/24
..
36
32
991824433.UG.FTS.B,
29.49%,
1/24/24
..
38
38
991825130.UG.FTS.B,
29.49%,
1/24/24
..
8
8
991700376.UG.FTS.B,
29.98%,
1/24/24
..
23
23
991642218.UG.FTS.B,
29.99%,
1/24/24
..
127
127
991628742.UG.FTS.B,
15.47%,
1/25/24
..
–
–
991657024.UG.FTS.B,
15.47%,
1/25/24
..
52
53
991690086.UG.FTS.B,
16.49%,
1/25/24
..
423
433
991702421.UG.FTS.B,
16.49%,
1/25/24
..
113
116
991810700.UG.FTS.B,
16.49%,
1/25/24
..
41
41
991642537.UG.FTS.B,
18.47%,
1/25/24
..
128
131
991651820.UG.FTS.B,
18.47%,
1/25/24
..
69
70
991658713.UG.FTS.B,
18.47%,
1/25/24
..
173
176
991683794.UG.FTS.B,
18.47%,
1/25/24
..
229
235
991703387.UG.FTS.B,
18.47%,
1/25/24
..
154
19
991755580.UG.FTS.B,
18.47%,
1/25/24
..
676
682
991790759.UG.FTS.B,
18.47%,
1/25/24
..
106
107
991642255.UG.FTS.B,
18.71%,
1/25/24
..
172
176
991712687.UG.FTS.B,
19.3%,
1/25/24
...
193
195
991799549.UG.FTS.B,
19.3%,
1/25/24
...
64
65
991749971.UG.FTS.B,
19.96%,
1/25/24
..
58
60
991783607.UG.FTS.B,
19.96%,
1/25/24
..
160
12
991809710.UG.FTS.B,
19.99%,
1/25/24
..
73
75
991638927.UG.FTS.B,
20.96%,
1/25/24
..
185
189
991794499.UG.FTS.B,
20.96%,
1/25/24
..
42
42
991629183.UG.FTS.B,
21.48%,
1/25/24
..
41
42
991639306.UG.FTS.B,
21.48%,
1/25/24
..
85
87
991661968.UG.FTS.B,
21.48%,
1/25/24
..
355
362
991669996.UG.FTS.B,
21.48%,
1/25/24
..
29
30
991798991.UG.FTS.B,
21.48%,
1/25/24
..
63
64
991782511.UG.FTS.B,
22.45%,
1/25/24
..
350
246
991644518.UG.FTS.B,
22.47%,
1/25/24
..
179
182
991653049.UG.FTS.B,
22.47%,
1/25/24
..
282
288
991665257.UG.FTS.B,
22.47%,
1/25/24
..
127
129
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991666345.UG.FTS.B,
22.47%,
1/25/24
..
$
1,698
$
1,717
991675457.UG.FTS.B,
22.47%,
1/25/24
..
126
129
991628803.UG.FTS.B,
25.44%,
1/25/24
..
215
217
991630129.UG.FTS.B,
25.45%,
1/25/24
..
62
5
991652053.UG.FTS.B,
26.44%,
1/25/24
..
106
108
991677549.UG.FTS.B,
26.44%,
1/25/24
..
54
5
991741033.UG.FTS.B,
26.44%,
1/25/24
..
895
909
991729257.UG.FTS.B,
27.99%,
1/25/24
..
260
263
991787523.UG.FTS.B,
27.99%,
1/25/24
..
70
71
991631472.UG.FTS.B,
28.48%,
1/25/24
..
183
187
991642002.UG.FTS.B,
28.48%,
1/25/24
..
50
50
991651856.UG.FTS.B,
28.48%,
1/25/24
..
293
300
991668456.UG.FTS.B,
28.48%,
1/25/24
..
105
108
991684576.UG.FTS.B,
28.48%,
1/25/24
..
11
11
991686175.UG.FTS.B,
28.48%,
1/25/24
..
151
155
991696275.UG.FTS.B,
28.48%,
1/25/24
..
0
0
991710726.UG.FTS.B,
28.48%,
1/25/24
..
125
128
991752837.UG.FTS.B,
28.48%,
1/25/24
..
17
18
991764907.UG.FTS.B,
28.48%,
1/25/24
..
54
54
991766143.UG.FTS.B,
28.48%,
1/25/24
..
341
345
991776786.UG.FTS.B,
28.48%,
1/25/24
..
13
13
991778236.UG.FTS.B,
28.48%,
1/25/24
..
20
21
991808037.UG.FTS.B,
28.48%,
1/25/24
..
165
167
991808857.UG.FTS.B,
28.48%,
1/25/24
..
158
160
991598363.UG.FTS.B,
29.48%,
1/25/24
..
329
337
991606137.UG.FTS.B,
29.48%,
1/25/24
..
83
85
991616807.UG.FTS.B,
29.48%,
1/25/24
..
161
164
991641257.UG.FTS.B,
29.48%,
1/25/24
..
6
6
991677136.UG.FTS.B,
29.48%,
1/25/24
..
76
77
991755940.UG.FTS.B,
29.48%,
1/25/24
..
7
7
991778306.UG.FTS.B,
29.48%,
1/25/24
..
125
126
991583140.UG.FTS.B,
29.49%,
1/25/24
..
1,264
1,279
991583824.UG.FTS.B,
29.49%,
1/25/24
..
239
244
991585669.UG.FTS.B,
29.49%,
1/25/24
..
281
283
991586027.UG.FTS.B,
29.49%,
1/25/24
..
44
44
991589305.UG.FTS.B,
29.49%,
1/25/24
..
296
297
991590828.UG.FTS.B,
29.49%,
1/25/24
..
232
236
991591385.UG.FTS.B,
29.49%,
1/25/24
..
135
134
991599013.UG.FTS.B,
29.49%,
1/25/24
..
169
173
991604373.UG.FTS.B,
29.49%,
1/25/24
..
167
169
991608552.UG.FTS.B,
29.49%,
1/25/24
..
148
148
991612461.UG.FTS.B,
29.49%,
1/25/24
..
250
253
991613759.UG.FTS.B,
29.49%,
1/25/24
..
82
83
991619556.UG.FTS.B,
29.49%,
1/25/24
..
82
83
991630323.UG.FTS.B,
29.49%,
1/25/24
..
128
128
991633158.UG.FTS.B,
29.49%,
1/25/24
..
178
179
991633345.UG.FTS.B,
29.49%,
1/25/24
..
262
268
991633451.UG.FTS.B,
29.49%,
1/25/24
..
272
277
991633646.UG.FTS.B,
29.49%,
1/25/24
..
104
106
991641518.UG.FTS.B,
29.49%,
1/25/24
..
99
99
991643849.UG.FTS.B,
29.49%,
1/25/24
..
8
8
991644386.UG.FTS.B,
29.49%,
1/25/24
..
11
11
991644394.UG.FTS.B,
29.49%,
1/25/24
..
46
46
991644473.UG.FTS.B,
29.49%,
1/25/24
..
67
67
991644848.UG.FTS.B,
29.49%,
1/25/24
..
20
21
991645325.UG.FTS.B,
29.49%,
1/25/24
..
140
11
991649590.UG.FTS.B,
29.49%,
1/25/24
..
86
88
991651927.UG.FTS.B,
29.49%,
1/25/24
..
158
162
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991654105.UG.FTS.B,
29.49%,
1/25/24
..
$
121
$
121
991654938.UG.FTS.B,
29.49%,
1/25/24
..
912
933
991656780.UG.FTS.B,
29.49%,
1/25/24
..
317
324
991661586.UG.FTS.B,
29.49%,
1/25/24
..
6
6
991663576.UG.FTS.B,
29.49%,
1/25/24
..
1,034
1,045
991671286.UG.FTS.B,
29.49%,
1/25/24
..
594
596
991674159.UG.FTS.B,
29.49%,
1/25/24
..
182
186
991677216.UG.FTS.B,
29.49%,
1/25/24
..
11
11
991678733.UG.FTS.B,
29.49%,
1/25/24
..
34
34
991679617.UG.FTS.B,
29.49%,
1/25/24
..
21
21
991679898.UG.FTS.B,
29.49%,
1/25/24
..
194
197
991679977.UG.FTS.B,
29.49%,
1/25/24
..
98
99
991686415.UG.FTS.B,
29.49%,
1/25/24
..
31
31
991686544.UG.FTS.B,
29.49%,
1/25/24
..
186
185
991686636.UG.FTS.B,
29.49%,
1/25/24
..
128
131
991700265.UG.FTS.B,
29.49%,
1/25/24
..
76
77
991700545.UG.FTS.B,
29.49%,
1/25/24
..
65
66
991700798.UG.FTS.B,
29.49%,
1/25/24
..
99
100
991701563.UG.FTS.B,
29.49%,
1/25/24
..
358
363
991703296.UG.FTS.B,
29.49%,
1/25/24
..
133
136
991706569.UG.FTS.B,
29.49%,
1/25/24
..
30
30
991714482.UG.FTS.B,
29.49%,
1/25/24
..
193
194
991720724.UG.FTS.B,
29.49%,
1/25/24
..
362
370
991721326.UG.FTS.B,
29.49%,
1/25/24
..
379
383
991726761.UG.FTS.B,
29.49%,
1/25/24
..
451
454
991729432.UG.FTS.B,
29.49%,
1/25/24
..
410
415
991731126.UG.FTS.B,
29.49%,
1/25/24
..
26
26
991731430.UG.FTS.B,
29.49%,
1/25/24
..
135
137
991732382.UG.FTS.B,
29.49%,
1/25/24
..
160
162
991742074.UG.FTS.B,
29.49%,
1/25/24
..
137
137
991742486.UG.FTS.B,
29.49%,
1/25/24
..
116
118
991748275.UG.FTS.B,
29.49%,
1/25/24
..
161
167
991749150.UG.FTS.B,
29.49%,
1/25/24
..
271
277
991751813.UG.FTS.B,
29.49%,
1/25/24
..
333
334
991751821.UG.FTS.B,
29.49%,
1/25/24
..
144
145
991752680.UG.FTS.B,
29.49%,
1/25/24
..
31
31
991756247.UG.FTS.B,
29.49%,
1/25/24
..
15
15
991758703.UG.FTS.B,
29.49%,
1/25/24
..
186
187
991761336.UG.FTS.B,
29.49%,
1/25/24
..
116
116
991765463.UG.FTS.B,
29.49%,
1/25/24
..
96
96
991766815.UG.FTS.B,
29.49%,
1/25/24
..
194
194
991769017.UG.FTS.B,
29.49%,
1/25/24
..
151
152
991769275.UG.FTS.B,
29.49%,
1/25/24
..
21
21
991771771.UG.FTS.B,
29.49%,
1/25/24
..
94
95
991771821.UG.FTS.B,
29.49%,
1/25/24
..
541
547
991783055.UG.FTS.B,
29.49%,
1/25/24
..
1,244
1,262
991783583.UG.FTS.B,
29.49%,
1/25/24
..
180
182
991786634.UG.FTS.B,
29.49%,
1/25/24
..
327
331
991786828.UG.FTS.B,
29.49%,
1/25/24
..
83
83
991791507.UG.FTS.B,
29.49%,
1/25/24
..
97
98
991795056.UG.FTS.B,
29.49%,
1/25/24
..
159
160
991796258.UG.FTS.B,
29.49%,
1/25/24
..
47
49
991797438.UG.FTS.B,
29.49%,
1/25/24
..
32
32
991802400.UG.FTS.B,
29.49%,
1/25/24
..
9
9
991802689.UG.FTS.B,
29.49%,
1/25/24
..
21
22
991803082.UG.FTS.B,
29.49%,
1/25/24
..
47
40
991803621.UG.FTS.B,
29.49%,
1/25/24
..
222
223
991806034.UG.FTS.B,
29.49%,
1/25/24
..
76
78
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
105
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991808090.UG.FTS.B,
29.49%,
1/25/24
..
$
47
$
47
991808148.UG.FTS.B,
29.49%,
1/25/24
..
38
39
991814291.UG.FTS.B,
29.49%,
1/25/24
..
39
40
991815972.UG.FTS.B,
29.49%,
1/25/24
..
21
22
991816232.UG.FTS.B,
29.49%,
1/25/24
..
86
87
991817482.UG.FTS.B,
29.49%,
1/25/24
..
37
37
991819217.UG.FTS.B,
29.49%,
1/25/24
..
45
45
991820253.UG.FTS.B,
29.49%,
1/25/24
..
87
88
991820692.UG.FTS.B,
29.49%,
1/25/24
..
9
9
991823032.UG.FTS.B,
29.49%,
1/25/24
..
23
24
991823201.UG.FTS.B,
29.49%,
1/25/24
..
266
267
991828617.UG.FTS.B,
29.49%,
1/25/24
..
80
82
991830948.UG.FTS.B,
29.49%,
1/25/24
..
76
76
991831119.UG.FTS.B,
29.49%,
1/25/24
..
66
66
991831257.UG.FTS.B,
29.49%,
1/25/24
..
28
28
991831719.UG.FTS.B,
29.49%,
1/25/24
..
10
10
991686043.UG.FTS.B,
29.99%,
1/25/24
..
114
117
991810154.UG.FTS.B,
15.47%,
1/26/24
..
436
443
991593609.UG.FTS.B,
16.49%,
1/26/24
..
160
164
991784174.UG.FTS.B,
16.49%,
1/26/24
..
234
239
991828622.UG.FTS.B,
16.49%,
1/26/24
..
195
199
991595614.UG.FTS.B,
17.49%,
1/26/24
..
290
293
991727853.UG.FTS.B,
18.47%,
1/26/24
..
43
44
991629233.UG.FTS.B,
18.71%,
1/26/24
..
17
17
991651717.UG.FTS.B,
19.3%,
1/26/24
...
712
729
991732138.UG.FTS.B,
19.3%,
1/26/24
...
80
81
991633662.UG.FTS.B,
19.96%,
1/26/24
..
246
250
991636818.UG.FTS.B,
19.96%,
1/26/24
..
100
102
991643141.UG.FTS.B,
19.96%,
1/26/24
..
1,216
1,245
991671753.UG.FTS.B,
19.96%,
1/26/24
..
220
225
991677228.UG.FTS.B,
19.96%,
1/26/24
..
388
393
991737882.UG.FTS.B,
19.96%,
1/26/24
..
50
51
991759419.UG.FTS.B,
19.96%,
1/26/24
..
194
196
991590508.UG.FTS.B,
19.99%,
1/26/24
..
117
120
991671345.UG.FTS.B,
19.99%,
1/26/24
..
394
398
991749760.UG.FTS.B,
20.47%,
1/26/24
..
385
271
991817033.UG.FTS.B,
20.47%,
1/26/24
..
624
633
991679320.UG.FTS.B,
21.48%,
1/26/24
..
223
228
991694604.UG.FTS.B,
21.48%,
1/26/24
..
905
911
991729823.UG.FTS.B,
21.48%,
1/26/24
..
1
1
991749734.UG.FTS.B,
21.48%,
1/26/24
..
100
102
991636901.UG.FTS.B,
22.47%,
1/26/24
..
6
6
991633594.UG.FTS.B,
24.45%,
1/26/24
..
38
39
991646866.UG.FTS.B,
25.45%,
1/26/24
..
852
867
991690882.UG.FTS.B,
25.45%,
1/26/24
..
136
138
991685143.UG.FTS.B,
27.99%,
1/26/24
..
9
9
991761224.UG.FTS.B,
27.99%,
1/26/24
..
57
59
991782500.UG.FTS.B,
27.99%,
1/26/24
..
63
64
991620819.UG.FTS.B,
28.48%,
1/26/24
..
76
78
991650272.UG.FTS.B,
28.48%,
1/26/24
..
102
104
991660260.UG.FTS.B,
28.48%,
1/26/24
..
519
527
991661075.UG.FTS.B,
28.48%,
1/26/24
..
639
649
991662692.UG.FTS.B,
28.48%,
1/26/24
..
91
93
991692098.UG.FTS.B,
28.48%,
1/26/24
..
82
83
991699559.UG.FTS.B,
28.48%,
1/26/24
..
211
212
991700697.UG.FTS.B,
28.48%,
1/26/24
..
171
173
991706943.UG.FTS.B,
28.48%,
1/26/24
..
317
321
991719423.UG.FTS.B,
28.48%,
1/26/24
..
361
365
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991725862.UG.FTS.B,
28.48%,
1/26/24
..
$
143
$
145
991728173.UG.FTS.B,
28.48%,
1/26/24
..
98
100
991737277.UG.FTS.B,
28.48%,
1/26/24
..
122
125
991740916.UG.FTS.B,
28.48%,
1/26/24
..
452
463
991742866.UG.FTS.B,
28.48%,
1/26/24
..
67
69
991768650.UG.FTS.B,
28.48%,
1/26/24
..
34
34
991795847.UG.FTS.B,
28.48%,
1/26/24
..
52
53
991801021.UG.FTS.B,
28.48%,
1/26/24
..
134
136
991802162.UG.FTS.B,
28.48%,
1/26/24
..
270
273
991826702.UG.FTS.B,
28.48%,
1/26/24
..
276
280
991834361.UG.FTS.B,
28.48%,
1/26/24
..
108
109
991651287.UG.FTS.B,
29.46%,
1/26/24
..
62
63
991620639.UG.FTS.B,
29.48%,
1/26/24
..
708
716
991661177.UG.FTS.B,
29.48%,
1/26/24
..
16
17
991681325.UG.FTS.B,
29.48%,
1/26/24
..
69
70
991717351.UG.FTS.B,
29.48%,
1/26/24
..
7
7
991717920.UG.FTS.B,
29.48%,
1/26/24
..
1,111
1,136
991731025.UG.FTS.B,
29.48%,
1/26/24
..
231
230
991738428.UG.FTS.B,
29.48%,
1/26/24
..
99
102
991775037.UG.FTS.B,
29.48%,
1/26/24
..
65
66
991815953.UG.FTS.B,
29.48%,
1/26/24
..
8
8
991589333.UG.FTS.B,
29.49%,
1/26/24
..
126
129
991591784.UG.FTS.B,
29.49%,
1/26/24
..
1,242
1,265
991592956.UG.FTS.B,
29.49%,
1/26/24
..
94
96
991595654.UG.FTS.B,
29.49%,
1/26/24
..
86
88
991598750.UG.FTS.B,
29.49%,
1/26/24
..
670
672
991599536.UG.FTS.B,
29.49%,
1/26/24
..
593
606
991605648.UG.FTS.B,
29.49%,
1/26/24
..
182
184
991606139.UG.FTS.B,
29.49%,
1/26/24
..
494
491
991618299.UG.FTS.B,
29.49%,
1/26/24
..
153
157
991622450.UG.FTS.B,
29.49%,
1/26/24
..
69
71
991629683.UG.FTS.B,
29.49%,
1/26/24
..
322
329
991630066.UG.FTS.B,
29.49%,
1/26/24
..
10
10
991631666.UG.FTS.B,
29.49%,
1/26/24
..
18
18
991633238.UG.FTS.B,
29.49%,
1/26/24
..
41
42
991633373.UG.FTS.B,
29.49%,
1/26/24
..
400
402
991633572.UG.FTS.B,
29.49%,
1/26/24
..
84
86
991633631.UG.FTS.B,
29.49%,
1/26/24
..
118
119
991636176.UG.FTS.B,
29.49%,
1/26/24
..
459
461
991636182.UG.FTS.B,
29.49%,
1/26/24
..
360
368
991637641.UG.FTS.B,
29.49%,
1/26/24
..
146
147
991638287.UG.FTS.B,
29.49%,
1/26/24
..
257
262
991640279.UG.FTS.B,
29.49%,
1/26/24
..
47
47
991640433.UG.FTS.B,
29.49%,
1/26/24
..
78
80
991641801.UG.FTS.B,
29.49%,
1/26/24
..
13
13
991642017.UG.FTS.B,
29.49%,
1/26/24
..
109
109
991642061.UG.FTS.B,
29.49%,
1/26/24
..
175
179
991648245.UG.FTS.B,
29.49%,
1/26/24
..
186
190
991649659.UG.FTS.B,
29.49%,
1/26/24
..
238
238
991650388.UG.FTS.B,
29.49%,
1/26/24
..
61
63
991651864.UG.FTS.B,
29.49%,
1/26/24
..
132
135
991654092.UG.FTS.B,
29.49%,
1/26/24
..
108
109
991655891.UG.FTS.B,
29.49%,
1/26/24
..
71
73
991656430.UG.FTS.B,
29.49%,
1/26/24
..
1,825
1,863
991658296.UG.FTS.B,
29.49%,
1/26/24
..
319
326
991664323.UG.FTS.B,
29.49%,
1/26/24
..
41
42
991666721.UG.FTS.B,
29.49%,
1/26/24
..
357
356
991667348.UG.FTS.B,
29.49%,
1/26/24
..
89
89
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
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Card
(continued)
991668513.UG.FTS.B,
29.49%,
1/26/24
..
$
95
$
97
991672124.UG.FTS.B,
29.49%,
1/26/24
..
95
68
991676577.UG.FTS.B,
29.49%,
1/26/24
..
1,581
1,593
991680461.UG.FTS.B,
29.49%,
1/26/24
..
46
46
991683106.UG.FTS.B,
29.49%,
1/26/24
..
246
251
991684366.UG.FTS.B,
29.49%,
1/26/24
..
138
139
991684450.UG.FTS.B,
29.49%,
1/26/24
..
23
23
991692922.UG.FTS.B,
29.49%,
1/26/24
..
734
748
991693788.UG.FTS.B,
29.49%,
1/26/24
..
825
841
991694879.UG.FTS.B,
29.49%,
1/26/24
..
53
54
991698192.UG.FTS.B,
29.49%,
1/26/24
..
115
116
991698685.UG.FTS.B,
29.49%,
1/26/24
..
17
17
991698773.UG.FTS.B,
29.49%,
1/26/24
..
26
27
991700115.UG.FTS.B,
29.49%,
1/26/24
..
17
18
991700118.UG.FTS.B,
29.49%,
1/26/24
..
46
47
991709266.UG.FTS.B,
29.49%,
1/26/24
..
19
20
991711289.UG.FTS.B,
29.49%,
1/26/24
..
30
30
991713721.UG.FTS.B,
29.49%,
1/26/24
..
145
147
991714223.UG.FTS.B,
29.49%,
1/26/24
..
140
143
991717822.UG.FTS.B,
29.49%,
1/26/24
..
357
357
991724129.UG.FTS.B,
29.49%,
1/26/24
..
109
108
991725699.UG.FTS.B,
29.49%,
1/26/24
..
862
865
991730913.UG.FTS.B,
29.49%,
1/26/24
..
3
3
991735482.UG.FTS.B,
29.49%,
1/26/24
..
52
8
991739566.UG.FTS.B,
29.49%,
1/26/24
..
796
812
991744088.UG.FTS.B,
29.49%,
1/26/24
..
82
84
991752959.UG.FTS.B,
29.49%,
1/26/24
..
106
108
991753841.UG.FTS.B,
29.49%,
1/26/24
..
21
21
991764433.UG.FTS.B,
29.49%,
1/26/24
..
104
105
991772508.UG.FTS.B,
29.49%,
1/26/24
..
215
217
991774990.UG.FTS.B,
29.49%,
1/26/24
..
106
106
991781162.UG.FTS.B,
29.49%,
1/26/24
..
140
142
991783352.UG.FTS.B,
29.49%,
1/26/24
..
40
40
991783361.UG.FTS.B,
29.49%,
1/26/24
..
180
182
991784306.UG.FTS.B,
29.49%,
1/26/24
..
81
81
991785847.UG.FTS.B,
29.49%,
1/26/24
..
26
26
991786723.UG.FTS.B,
29.49%,
1/26/24
..
158
160
991787533.UG.FTS.B,
29.49%,
1/26/24
..
86
86
991789913.UG.FTS.B,
29.49%,
1/26/24
..
20
20
991789983.UG.FTS.B,
29.49%,
1/26/24
..
53
54
991792014.UG.FTS.B,
29.49%,
1/26/24
..
49
41
991795214.UG.FTS.B,
29.49%,
1/26/24
..
35
35
991795277.UG.FTS.B,
29.49%,
1/26/24
..
96
96
991798511.UG.FTS.B,
29.49%,
1/26/24
..
55
56
991798804.UG.FTS.B,
29.49%,
1/26/24
..
87
87
991799002.UG.FTS.B,
29.49%,
1/26/24
..
60
61
991799361.UG.FTS.B,
29.49%,
1/26/24
..
58
59
991800187.UG.FTS.B,
29.49%,
1/26/24
..
73
73
991800458.UG.FTS.B,
29.49%,
1/26/24
..
73
75
991804469.UG.FTS.B,
29.49%,
1/26/24
..
12
12
991809910.UG.FTS.B,
29.49%,
1/26/24
..
275
204
991810101.UG.FTS.B,
29.49%,
1/26/24
..
41
41
991812210.UG.FTS.B,
29.49%,
1/26/24
..
10
10
991816323.UG.FTS.B,
29.49%,
1/26/24
..
101
102
991816344.UG.FTS.B,
29.49%,
1/26/24
..
41
42
991819010.UG.FTS.B,
29.49%,
1/26/24
..
140
141
991820058.UG.FTS.B,
29.49%,
1/26/24
..
119
120
991821437.UG.FTS.B,
29.49%,
1/26/24
..
223
225
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991822268.UG.FTS.B,
29.49%,
1/26/24
..
$
23
$
23
991823297.UG.FTS.B,
29.49%,
1/26/24
..
128
128
991828909.UG.FTS.B,
29.49%,
1/26/24
..
67
68
991834987.UG.FTS.B,
29.49%,
1/26/24
..
263
264
991835272.UG.FTS.B,
29.49%,
1/26/24
..
328
329
991836284.UG.FTS.B,
29.49%,
1/26/24
..
718
726
991836489.UG.FTS.B,
29.49%,
1/26/24
..
274
275
991842241.UG.FTS.B,
15.47%,
1/27/24
..
85
87
991616313.UG.FTS.B,
17.49%,
1/27/24
..
467
476
991622257.UG.FTS.B,
17.49%,
1/27/24
..
345
354
991706691.UG.FTS.B,
17.49%,
1/27/24
..
186
191
991606775.UG.FTS.B,
18.47%,
1/27/24
..
677
693
991601696.UG.FTS.B,
18.71%,
1/27/24
..
808
828
991697130.UG.FTS.B,
19.3%,
1/27/24
...
685
695
991633375.UG.FTS.B,
27.95%,
1/27/24
..
66
68
991609765.UG.FTS.B,
27.99%,
1/27/24
..
284
292
991621042.UG.FTS.B,
27.99%,
1/27/24
..
30
31
991680095.UG.FTS.B,
27.99%,
1/27/24
..
86
87
991593644.UG.FTS.B,
28.48%,
1/27/24
..
715
99
991595105.UG.FTS.B,
28.48%,
1/27/24
..
405
412
991597886.UG.FTS.B,
28.48%,
1/27/24
..
212
217
991598305.UG.FTS.B,
28.48%,
1/27/24
..
193
(1)
991598563.UG.FTS.B,
28.48%,
1/27/24
..
7
7
991600812.UG.FTS.B,
28.48%,
1/27/24
..
12
12
991601477.UG.FTS.B,
28.48%,
1/27/24
..
83
85
991615673.UG.FTS.B,
28.48%,
1/27/24
..
31
31
991618012.UG.FTS.B,
28.48%,
1/27/24
..
90
92
991619350.UG.FTS.B,
28.48%,
1/27/24
..
274
281
991621935.UG.FTS.B,
28.48%,
1/27/24
..
215
220
991626927.UG.FTS.B,
28.48%,
1/27/24
..
78
79
991630514.UG.FTS.B,
28.48%,
1/27/24
..
416
426
991630780.UG.FTS.B,
28.48%,
1/27/24
..
23
24
991632886.UG.FTS.B,
28.48%,
1/27/24
..
20
21
991633792.UG.FTS.B,
28.48%,
1/27/24
..
485
486
991637507.UG.FTS.B,
28.48%,
1/27/24
..
574
586
991637950.UG.FTS.B,
28.48%,
1/27/24
..
64
10
991638924.UG.FTS.B,
28.48%,
1/27/24
..
181
182
991639534.UG.FTS.B,
28.48%,
1/27/24
..
28
28
991652781.UG.FTS.B,
28.48%,
1/27/24
..
83
83
991652783.UG.FTS.B,
28.48%,
1/27/24
..
10
10
991659976.UG.FTS.B,
28.48%,
1/27/24
..
208
213
991661576.UG.FTS.B,
28.48%,
1/27/24
..
190
195
991664071.UG.FTS.B,
28.48%,
1/27/24
..
400
410
991667194.UG.FTS.B,
28.48%,
1/27/24
..
128
131
991673408.UG.FTS.B,
28.48%,
1/27/24
..
13
13
991681098.UG.FTS.B,
28.48%,
1/27/24
..
23
23
991686984.UG.FTS.B,
28.48%,
1/27/24
..
248
252
991694419.UG.FTS.B,
28.48%,
1/27/24
..
35
35
991698388.UG.FTS.B,
28.48%,
1/27/24
..
101
104
991711210.UG.FTS.B,
28.48%,
1/27/24
..
89
91
991711799.UG.FTS.B,
28.48%,
1/27/24
..
253
257
991712181.UG.FTS.B,
28.48%,
1/27/24
..
46
46
991723489.UG.FTS.B,
28.48%,
1/27/24
..
202
204
991728658.UG.FTS.B,
28.48%,
1/27/24
..
190
195
991741153.UG.FTS.B,
28.48%,
1/27/24
..
679
696
991778672.UG.FTS.B,
28.48%,
1/27/24
..
50
51
991782222.UG.FTS.B,
28.48%,
1/27/24
..
48
49
991782824.UG.FTS.B,
28.48%,
1/27/24
..
119
120
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
107
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991796318.UG.FTS.B,
28.48%,
1/27/24
..
$
12
$
12
991801395.UG.FTS.B,
28.48%,
1/27/24
..
187
187
991596967.UG.FTS.B,
29.48%,
1/27/24
..
30
31
991605017.UG.FTS.B,
29.48%,
1/27/24
..
131
133
991611712.UG.FTS.B,
29.48%,
1/27/24
..
126
127
991613363.UG.FTS.B,
29.48%,
1/27/24
..
20
20
991614264.UG.FTS.B,
29.48%,
1/27/24
..
199
200
991616298.UG.FTS.B,
29.48%,
1/27/24
..
21
21
991624670.UG.FTS.B,
29.48%,
1/27/24
..
160
163
991629408.UG.FTS.B,
29.48%,
1/27/24
..
8
8
991629975.UG.FTS.B,
29.48%,
1/27/24
..
88
13
991638057.UG.FTS.B,
29.48%,
1/27/24
..
69
71
991659454.UG.FTS.B,
29.48%,
1/27/24
..
39
40
991662934.UG.FTS.B,
29.48%,
1/27/24
..
234
239
991679850.UG.FTS.B,
29.48%,
1/27/24
..
17
17
991699163.UG.FTS.B,
29.48%,
1/27/24
..
430
440
991704364.UG.FTS.B,
29.48%,
1/27/24
..
0
0
991723003.UG.FTS.B,
29.48%,
1/27/24
..
11
11
991750294.UG.FTS.B,
29.48%,
1/27/24
..
14
15
991775532.UG.FTS.B,
29.48%,
1/27/24
..
316
320
991783452.UG.FTS.B,
29.48%,
1/27/24
..
89
90
991783483.UG.FTS.B,
29.48%,
1/27/24
..
774
783
991787369.UG.FTS.B,
29.48%,
1/27/24
..
58
60
991802964.UG.FTS.B,
29.48%,
1/27/24
..
17
17
991829618.UG.FTS.B,
29.48%,
1/27/24
..
31
28
991593706.UG.FTS.B,
29.49%,
1/27/24
..
55
56
991593836.UG.FTS.B,
29.49%,
1/27/24
..
79
(2)
991594179.UG.FTS.B,
29.49%,
1/27/24
..
27
27
991594915.UG.FTS.B,
29.49%,
1/27/24
..
141
144
991595101.UG.FTS.B,
29.49%,
1/27/24
..
16
16
991595161.UG.FTS.B,
29.49%,
1/27/24
..
262
269
991595187.UG.FTS.B,
29.49%,
1/27/24
..
37
6
991595329.UG.FTS.B,
29.49%,
1/27/24
..
35
36
991595594.UG.FTS.B,
29.49%,
1/27/24
..
275
279
991595863.UG.FTS.B,
29.49%,
1/27/24
..
499
505
991596029.UG.FTS.B,
29.49%,
1/27/24
..
972
981
991596068.UG.FTS.B,
29.49%,
1/27/24
..
45
7
991596137.UG.FTS.B,
29.49%,
1/27/24
..
87
89
991596373.UG.FTS.B,
29.49%,
1/27/24
..
162
166
991597209.UG.FTS.B,
29.49%,
1/27/24
..
82
84
991598172.UG.FTS.B,
29.49%,
1/27/24
..
82
84
991598203.UG.FTS.B,
29.49%,
1/27/24
..
23
2
991598421.UG.FTS.B,
29.49%,
1/27/24
..
91
93
991598762.UG.FTS.B,
29.49%,
1/27/24
..
1,048
155
991599198.UG.FTS.B,
29.49%,
1/27/24
..
731
748
991599753.UG.FTS.B,
29.49%,
1/27/24
..
367
375
991599797.UG.FTS.B,
29.49%,
1/27/24
..
182
184
991600426.UG.FTS.B,
29.49%,
1/27/24
..
1,350
110
991601187.UG.FTS.B,
29.49%,
1/27/24
..
1,836
1,874
991602939.UG.FTS.B,
29.49%,
1/27/24
..
134
137
991602960.UG.FTS.B,
29.49%,
1/27/24
..
133
136
991604657.UG.FTS.B,
29.49%,
1/27/24
..
49
49
991604986.UG.FTS.B,
29.49%,
1/27/24
..
91
92
991605049.UG.FTS.B,
29.49%,
1/27/24
..
136
139
991605352.UG.FTS.B,
29.49%,
1/27/24
..
380
381
991605361.UG.FTS.B,
29.49%,
1/27/24
..
92
94
991605745.UG.FTS.B,
29.49%,
1/27/24
..
26
26
991605901.UG.FTS.B,
29.49%,
1/27/24
..
11
11
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991606651.UG.FTS.B,
29.49%,
1/27/24
..
$
226
$
232
991608000.UG.FTS.B,
29.49%,
1/27/24
..
233
34
991608430.UG.FTS.B,
29.49%,
1/27/24
..
5
5
991608728.UG.FTS.B,
29.49%,
1/27/24
..
38
39
991609413.UG.FTS.B,
29.49%,
1/27/24
..
2
2
991609433.UG.FTS.B,
29.49%,
1/27/24
..
217
218
991610027.UG.FTS.B,
29.49%,
1/27/24
..
92
94
991610884.UG.FTS.B,
29.49%,
1/27/24
..
130
133
991611090.UG.FTS.B,
29.49%,
1/27/24
..
21
21
991612751.UG.FTS.B,
29.49%,
1/27/24
..
353
360
991613209.UG.FTS.B,
29.49%,
1/27/24
..
40
40
991614149.UG.FTS.B,
29.49%,
1/27/24
..
14
14
991614170.UG.FTS.B,
29.49%,
1/27/24
..
24
24
991616128.UG.FTS.B,
29.49%,
1/27/24
..
80
82
991616252.UG.FTS.B,
29.49%,
1/27/24
..
18
18
991616667.UG.FTS.B,
29.49%,
1/27/24
..
76
59
991616968.UG.FTS.B,
29.49%,
1/27/24
..
39
39
991616984.UG.FTS.B,
29.49%,
1/27/24
..
66
67
991621060.UG.FTS.B,
29.49%,
1/27/24
..
45
39
991621387.UG.FTS.B,
29.49%,
1/27/24
..
127
130
991621529.UG.FTS.B,
29.49%,
1/27/24
..
40
40
991622745.UG.FTS.B,
29.49%,
1/27/24
..
581
594
991622856.UG.FTS.B,
29.49%,
1/27/24
..
91
92
991624123.UG.FTS.B,
29.49%,
1/27/24
..
103
106
991624973.UG.FTS.B,
29.49%,
1/27/24
..
59
4
991627130.UG.FTS.B,
29.49%,
1/27/24
..
371
379
991628054.UG.FTS.B,
29.49%,
1/27/24
..
36
36
991628990.UG.FTS.B,
29.49%,
1/27/24
..
18
18
991630132.UG.FTS.B,
29.49%,
1/27/24
..
110
113
991630928.UG.FTS.B,
29.49%,
1/27/24
..
88
90
991630940.UG.FTS.B,
29.49%,
1/27/24
..
97
97
991631226.UG.FTS.B,
29.49%,
1/27/24
..
154
157
991633782.UG.FTS.B,
29.49%,
1/27/24
..
166
14
991634012.UG.FTS.B,
29.49%,
1/27/24
..
93
95
991637073.UG.FTS.B,
29.49%,
1/27/24
..
67
68
991637485.UG.FTS.B,
29.49%,
1/27/24
..
79
81
991637707.UG.FTS.B,
29.49%,
1/27/24
..
6
6
991638146.UG.FTS.B,
29.49%,
1/27/24
..
60
61
991638425.UG.FTS.B,
29.49%,
1/27/24
..
44
44
991639172.UG.FTS.B,
29.49%,
1/27/24
..
89
89
991639724.UG.FTS.B,
29.49%,
1/27/24
..
11
11
991641800.UG.FTS.B,
29.49%,
1/27/24
..
55
55
991642142.UG.FTS.B,
29.49%,
1/27/24
..
23
23
991645179.UG.FTS.B,
29.49%,
1/27/24
..
134
137
991645357.UG.FTS.B,
29.49%,
1/27/24
..
40
41
991645905.UG.FTS.B,
29.49%,
1/27/24
..
1,164
1,191
991646296.UG.FTS.B,
29.49%,
1/27/24
..
218
222
991648501.UG.FTS.B,
29.49%,
1/27/24
..
62
63
991649457.UG.FTS.B,
29.49%,
1/27/24
..
119
120
991649973.UG.FTS.B,
29.49%,
1/27/24
..
161
165
991651122.UG.FTS.B,
29.49%,
1/27/24
..
208
208
991651387.UG.FTS.B,
29.49%,
1/27/24
..
102
104
991653219.UG.FTS.B,
29.49%,
1/27/24
..
17
17
991653265.UG.FTS.B,
29.49%,
1/27/24
..
1,790
1,829
991653611.UG.FTS.B,
29.49%,
1/27/24
..
54
55
991654698.UG.FTS.B,
29.49%,
1/27/24
..
39
40
991655679.UG.FTS.B,
29.49%,
1/27/24
..
76
77
991656551.UG.FTS.B,
29.49%,
1/27/24
..
457
468
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991658001.UG.FTS.B,
29.49%,
1/27/24
..
$
365
$
374
991659877.UG.FTS.B,
29.49%,
1/27/24
..
51
52
991661144.UG.FTS.B,
29.49%,
1/27/24
..
30
30
991661664.UG.FTS.B,
29.49%,
1/27/24
..
25
25
991662634.UG.FTS.B,
29.49%,
1/27/24
..
297
303
991663149.UG.FTS.B,
29.49%,
1/27/24
..
17
17
991664036.UG.FTS.B,
29.49%,
1/27/24
..
386
386
991664346.UG.FTS.B,
29.49%,
1/27/24
..
78
80
991667814.UG.FTS.B,
29.49%,
1/27/24
..
8
8
991668164.UG.FTS.B,
29.49%,
1/27/24
..
50
51
991670004.UG.FTS.B,
29.49%,
1/27/24
..
564
576
991670151.UG.FTS.B,
29.49%,
1/27/24
..
567
579
991671543.UG.FTS.B,
29.49%,
1/27/24
..
215
219
991674709.UG.FTS.B,
29.49%,
1/27/24
..
491
495
991675527.UG.FTS.B,
29.49%,
1/27/24
..
62
63
991675702.UG.FTS.B,
29.49%,
1/27/24
..
26
26
991675889.UG.FTS.B,
29.49%,
1/27/24
..
155
158
991676459.UG.FTS.B,
29.49%,
1/27/24
..
250
255
991680326.UG.FTS.B,
29.49%,
1/27/24
..
667
683
991680852.UG.FTS.B,
29.49%,
1/27/24
..
93
95
991681430.UG.FTS.B,
29.49%,
1/27/24
..
36
37
991681757.UG.FTS.B,
29.49%,
1/27/24
..
47
48
991682200.UG.FTS.B,
29.49%,
1/27/24
..
228
233
991683102.UG.FTS.B,
29.49%,
1/27/24
..
164
167
991684192.UG.FTS.B,
29.49%,
1/27/24
..
420
426
991685436.UG.FTS.B,
29.49%,
1/27/24
..
58
58
991687929.UG.FTS.B,
29.49%,
1/27/24
..
162
164
991688013.UG.FTS.B,
29.49%,
1/27/24
..
41
41
991688029.UG.FTS.B,
29.49%,
1/27/24
..
395
404
991688831.UG.FTS.B,
29.49%,
1/27/24
..
71
72
991691365.UG.FTS.B,
29.49%,
1/27/24
..
733
750
991691463.UG.FTS.B,
29.49%,
1/27/24
..
100
(1)
991691583.UG.FTS.B,
29.49%,
1/27/24
..
228
232
991692773.UG.FTS.B,
29.49%,
1/27/24
..
40
41
991692805.UG.FTS.B,
29.49%,
1/27/24
..
23
23
991693486.UG.FTS.B,
29.49%,
1/27/24
..
106
109
991695109.UG.FTS.B,
29.49%,
1/27/24
..
74
75
991695966.UG.FTS.B,
29.49%,
1/27/24
..
433
437
991697516.UG.FTS.B,
29.49%,
1/27/24
..
62
62
991698229.UG.FTS.B,
29.49%,
1/27/24
..
144
146
991700069.UG.FTS.B,
29.49%,
1/27/24
..
455
459
991701338.UG.FTS.B,
29.49%,
1/27/24
..
133
133
991703507.UG.FTS.B,
29.49%,
1/27/24
..
21
22
991704857.UG.FTS.B,
29.49%,
1/27/24
..
435
445
991705481.UG.FTS.B,
29.49%,
1/27/24
..
10
10
991706242.UG.FTS.B,
29.49%,
1/27/24
..
10
10
991709741.UG.FTS.B,
29.49%,
1/27/24
..
15
15
991711124.UG.FTS.B,
29.49%,
1/27/24
..
107
110
991715767.UG.FTS.B,
29.49%,
1/27/24
..
153
157
991717234.UG.FTS.B,
29.49%,
1/27/24
..
153
158
991718168.UG.FTS.B,
29.49%,
1/27/24
..
48
48
991718270.UG.FTS.B,
29.49%,
1/27/24
..
38
39
991720467.UG.FTS.B,
29.49%,
1/27/24
..
127
130
991720808.UG.FTS.B,
29.49%,
1/27/24
..
337
344
991725524.UG.FTS.B,
29.49%,
1/27/24
..
39
39
991727581.UG.FTS.B,
29.49%,
1/27/24
..
75
76
991729063.UG.FTS.B,
29.49%,
1/27/24
..
36
33
991731874.UG.FTS.B,
29.49%,
1/27/24
..
15
15
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991738263.UG.FTS.B,
29.49%,
1/27/24
..
$
47
$
48
991738930.UG.FTS.B,
29.49%,
1/27/24
..
83
84
991739164.UG.FTS.B,
29.49%,
1/27/24
..
907
928
991739656.UG.FTS.B,
29.49%,
1/27/24
..
996
1,007
991740040.UG.FTS.B,
29.49%,
1/27/24
..
712
726
991741014.UG.FTS.B,
29.49%,
1/27/24
..
453
462
991742873.UG.FTS.B,
29.49%,
1/27/24
..
87
87
991746722.UG.FTS.B,
29.49%,
1/27/24
..
48
48
991748403.UG.FTS.B,
29.49%,
1/27/24
..
115
117
991748625.UG.FTS.B,
29.49%,
1/27/24
..
54
55
991750772.UG.FTS.B,
29.49%,
1/27/24
..
219
222
991752695.UG.FTS.B,
29.49%,
1/27/24
..
22
22
991760549.UG.FTS.B,
29.49%,
1/27/24
..
57
57
991763575.UG.FTS.B,
29.49%,
1/27/24
..
121
122
991766023.UG.FTS.B,
29.49%,
1/27/24
..
138
141
991766758.UG.FTS.B,
29.49%,
1/27/24
..
0
0
991769140.UG.FTS.B,
29.49%,
1/27/24
..
133
133
991773350.UG.FTS.B,
29.49%,
1/27/24
..
616
621
991773994.UG.FTS.B,
29.49%,
1/27/24
..
122
122
991776905.UG.FTS.B,
29.49%,
1/27/24
..
23
24
991777765.UG.FTS.B,
29.49%,
1/27/24
..
52
9
991783640.UG.FTS.B,
29.49%,
1/27/24
..
2,495
195
991786695.UG.FTS.B,
29.49%,
1/27/24
..
11
11
991790283.UG.FTS.B,
29.49%,
1/27/24
..
62
64
991791553.UG.FTS.B,
29.49%,
1/27/24
..
5
5
991791557.UG.FTS.B,
29.49%,
1/27/24
..
97
98
991791984.UG.FTS.B,
29.49%,
1/27/24
..
3
3
991792738.UG.FTS.B,
29.49%,
1/27/24
..
90
91
991793121.UG.FTS.B,
29.49%,
1/27/24
..
180
182
991795549.UG.FTS.B,
29.49%,
1/27/24
..
25
26
991798612.UG.FTS.B,
29.49%,
1/27/24
..
88
87
991800070.UG.FTS.B,
29.49%,
1/27/24
..
60
61
991800781.UG.FTS.B,
29.49%,
1/27/24
..
42
43
991801330.UG.FTS.B,
29.49%,
1/27/24
..
135
137
991802537.UG.FTS.B,
29.49%,
1/27/24
..
70
72
991803320.UG.FTS.B,
29.49%,
1/27/24
..
85
86
991803812.UG.FTS.B,
29.49%,
1/27/24
..
69
70
991807698.UG.FTS.B,
29.49%,
1/27/24
..
127
128
991809457.UG.FTS.B,
29.49%,
1/27/24
..
616
623
991811048.UG.FTS.B,
29.49%,
1/27/24
..
225
227
991814988.UG.FTS.B,
29.49%,
1/27/24
..
23
23
991815602.UG.FTS.B,
29.49%,
1/27/24
..
110
111
991816828.UG.FTS.B,
29.49%,
1/27/24
..
20
20
991817049.UG.FTS.B,
29.49%,
1/27/24
..
562
564
991821267.UG.FTS.B,
29.49%,
1/27/24
..
69
70
991828639.UG.FTS.B,
29.49%,
1/27/24
..
50
49
991829097.UG.FTS.B,
29.49%,
1/27/24
..
796
800
991831813.UG.FTS.B,
29.49%,
1/27/24
..
98
99
991617189.UG.FTS.B,
16.49%,
1/28/24
..
126
129
991646610.UG.FTS.B,
16.49%,
1/28/24
..
65
65
991791227.UG.FTS.B,
16.49%,
1/28/24
..
90
92
991604496.UG.FTS.B,
17.49%,
1/28/24
..
108
111
991605888.UG.FTS.B,
17.49%,
1/28/24
..
359
364
991710890.UG.FTS.B,
17.49%,
1/28/24
..
394
405
991622102.UG.FTS.B,
18.71%,
1/28/24
..
94
95
991681664.UG.FTS.B,
15.47%,
1/29/24
..
161
165
991709424.UG.FTS.B,
15.47%,
1/29/24
..
1,707
1,743
991827557.UG.FTS.B,
15.47%,
1/29/24
..
292
297
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
109
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991700591.UG.FTS.B,
16.49%,
1/29/24
..
$
169
$
172
991615250.UG.FTS.B,
17.49%,
1/29/24
..
249
255
991826391.UG.FTS.B,
17.49%,
1/29/24
..
26
26
991638160.UG.FTS.B,
19.96%,
1/29/24
..
313
321
991751487.UG.FTS.B,
14.48%,
1/30/24
..
98
98
991851931.UG.FTS.B,
15.47%,
1/30/24
..
391
400
991787110.UG.FTS.B,
16.49%,
1/30/24
..
121
123
991635822.UG.FTS.B,
17.49%,
1/30/24
..
120
121
991677257.UG.FTS.B,
17.49%,
1/30/24
..
102
105
991696130.UG.FTS.B,
17.49%,
1/30/24
..
73
75
991754447.UG.FTS.B,
17.49%,
1/30/24
..
364
374
991810373.UG.FTS.B,
17.49%,
1/30/24
..
32
33
991683724.UG.FTS.B,
18.47%,
1/30/24
..
400
412
991633973.UG.FTS.B,
19.3%,
1/30/24
...
192
196
991632138.UG.FTS.B,
19.96%,
1/30/24
..
185
190
991701339.UG.FTS.B,
20.96%,
1/30/24
..
69
71
991695974.UG.FTS.B,
21.47%,
1/30/24
..
290
293
991641299.UG.FTS.B,
21.48%,
1/30/24
..
144
147
991688841.UG.FTS.B,
22.47%,
1/30/24
..
397
406
991712034.UG.FTS.B,
22.47%,
1/30/24
..
310
317
991668213.UG.FTS.B,
24.45%,
1/30/24
..
117
120
991800664.UG.FTS.B,
14.48%,
1/31/24
..
62
63
991692740.UG.FTS.B,
15.47%,
1/31/24
..
463
478
991732365.UG.FTS.B,
15.47%,
1/31/24
..
82
83
991761770.UG.FTS.B,
15.47%,
1/31/24
..
41
42
991770795.UG.FTS.B,
15.47%,
1/31/24
..
12
12
991799989.UG.FTS.B,
15.47%,
1/31/24
..
37
38
991857512.UG.FTS.B,
15.47%,
1/31/24
..
34
35
991820637.UG.FTS.B,
15.49%,
1/31/24
..
35
36
991631266.UG.FTS.B,
16.49%,
1/31/24
..
839
863
991635849.UG.FTS.B,
16.49%,
1/31/24
..
190
195
991642956.UG.FTS.B,
16.49%,
1/31/24
..
244
252
991656655.UG.FTS.B,
16.49%,
1/31/24
..
265
269
991658433.UG.FTS.B,
16.49%,
1/31/24
..
905
933
991677334.UG.FTS.B,
16.49%,
1/31/24
..
562
578
991702066.UG.FTS.B,
16.49%,
1/31/24
..
28
29
991705318.UG.FTS.B,
16.49%,
1/31/24
..
88
91
991741610.UG.FTS.B,
16.49%,
1/31/24
..
56
57
991747537.UG.FTS.B,
17.47%,
1/31/24
..
168
173
991750481.UG.FTS.B,
17.47%,
1/31/24
..
12
13
991759068.UG.FTS.B,
17.47%,
1/31/24
..
2,866
2,919
991637676.UG.FTS.B,
17.49%,
1/31/24
..
127
130
991637719.UG.FTS.B,
17.49%,
1/31/24
..
126
129
991639187.UG.FTS.B,
17.49%,
1/31/24
..
320
329
991642846.UG.FTS.B,
17.49%,
1/31/24
..
108
112
991654338.UG.FTS.B,
17.49%,
1/31/24
..
39
40
991741139.UG.FTS.B,
17.49%,
1/31/24
..
92
95
991742841.UG.FTS.B,
17.49%,
1/31/24
..
776
800
991748407.UG.FTS.B,
17.49%,
1/31/24
..
466
480
991780300.UG.FTS.B,
17.49%,
1/31/24
..
219
225
991828385.UG.FTS.B,
17.49%,
1/31/24
..
2
2
991835711.UG.FTS.B,
17.49%,
1/31/24
..
742
760
991856913.UG.FTS.B,
17.49%,
1/31/24
..
50
51
991869281.UG.FTS.B,
17.49%,
1/31/24
..
296
303
991876321.UG.FTS.B,
17.49%,
1/31/24
..
6
6
991798159.UG.FTS.B,
17.71%,
1/31/24
..
49
50
991727199.UG.FTS.B,
17.99%,
1/31/24
..
27
28
991655263.UG.FTS.B,
18.47%,
1/31/24
..
737
755
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991676080.UG.FTS.B,
18.47%,
1/31/24
..
$
45
$
46
991686055.UG.FTS.B,
18.47%,
1/31/24
..
198
204
991644537.UG.FTS.B,
18.71%,
1/31/24
..
8
8
991651633.UG.FTS.B,
18.96%,
1/31/24
..
307
315
991661216.UG.FTS.B,
19.3%,
1/31/24
...
358
369
991686127.UG.FTS.B,
19.3%,
1/31/24
...
281
288
991687417.UG.FTS.B,
19.3%,
1/31/24
...
224
230
991628348.UG.FTS.B,
19.96%,
1/31/24
..
260
267
991642331.UG.FTS.B,
19.96%,
1/31/24
..
77
79
991651260.UG.FTS.B,
19.96%,
1/31/24
..
68
70
991672930.UG.FTS.B,
19.96%,
1/31/24
..
122
125
991681323.UG.FTS.B,
19.96%,
1/31/24
..
175
180
991710638.UG.FTS.B,
19.96%,
1/31/24
..
185
188
991713238.UG.FTS.B,
19.96%,
1/31/24
..
145
150
991650296.UG.FTS.B,
20.47%,
1/31/24
..
779
798
991668477.UG.FTS.B,
20.47%,
1/31/24
..
51
53
991702014.UG.FTS.B,
20.47%,
1/31/24
..
147
150
991653552.UG.FTS.B,
21.48%,
1/31/24
..
148
150
991696310.UG.FTS.B,
21.48%,
1/31/24
..
78
80
991705966.UG.FTS.B,
21.48%,
1/31/24
..
137
141
991710376.UG.FTS.B,
21.48%,
1/31/24
..
22
23
991643834.UG.FTS.B,
22.45%,
1/31/24
..
118
121
991639414.UG.FTS.B,
22.47%,
1/31/24
..
326
334
991707815.UG.FTS.B,
22.47%,
1/31/24
..
67
68
991710192.UG.FTS.B,
22.47%,
1/31/24
..
151
152
991678923.UG.FTS.B,
23.45%,
1/31/24
..
698
705
991633530.UG.FTS.B,
25.45%,
1/31/24
..
158
159
991698730.UG.FTS.B,
25.45%,
1/31/24
..
6
6
991726930.UG.FTS.B,
15%,
2/01/24
.....
149
153
991764182.UG.FTS.B,
15.47%,
2/01/24
..
323
332
991688064.UG.FTS.B,
16.49%,
2/01/24
..
16
15
991713586.UG.FTS.B,
16.49%,
2/01/24
..
254
174
991724946.UG.FTS.B,
16.49%,
2/01/24
..
1,857
1,900
991807161.UG.FTS.B,
16.49%,
2/01/24
..
166
168
991668233.UG.FTS.B,
17.49%,
2/01/24
..
98
100
991669770.UG.FTS.B,
17.49%,
2/01/24
..
1,229
1,256
991675653.UG.FTS.B,
17.49%,
2/01/24
..
470
473
991677316.UG.FTS.B,
17.49%,
2/01/24
..
195
199
991708387.UG.FTS.B,
17.49%,
2/01/24
..
159
163
991721077.UG.FTS.B,
17.49%,
2/01/24
..
234
239
991785085.UG.FTS.B,
17.49%,
2/01/24
..
102
104
991852657.UG.FTS.B,
17.49%,
2/01/24
..
207
210
991869528.UG.FTS.B,
17.49%,
2/01/24
..
116
118
991667665.UG.FTS.B,
14.47%,
2/02/24
..
1,150
1,178
991678784.UG.FTS.B,
14.48%,
2/02/24
..
32
33
991821818.UG.FTS.B,
14.48%,
2/02/24
..
63
65
991900037.UG.FTS.B,
15.47%,
2/02/24
..
3
3
991722113.UG.FTS.B,
15.49%,
2/02/24
..
467
478
991668499.UG.FTS.B,
16.49%,
2/02/24
..
235
239
991679739.UG.FTS.B,
16.49%,
2/02/24
..
24
24
991684166.UG.FTS.B,
16.49%,
2/02/24
..
105
107
991767798.UG.FTS.B,
16.49%,
2/02/24
..
34
34
991768749.UG.FTS.B,
16.49%,
2/02/24
..
1,246
1,275
991682132.UG.FTS.B,
17.47%,
2/02/24
..
187
191
991688897.UG.FTS.B,
17.49%,
2/02/24
..
568
580
991733262.UG.FTS.B,
17.49%,
2/02/24
..
172
176
991734120.UG.FTS.B,
17.49%,
2/02/24
..
207
212
991656661.UG.FTS.B,
17.71%,
2/02/24
..
1,409
1,445
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991681257.UG.FTS.B,
17.49%,
2/03/24
..
$
169
$
173
991865832.UG.FTS.B,
17.49%,
2/03/24
..
132
133
991729281.UG.FTS.B,
18.71%,
2/03/24
..
571
579
991695999.UG.FTS.B,
19.96%,
2/03/24
..
724
740
991693730.UG.FTS.B,
19.99%,
2/03/24
..
271
277
991695190.UG.FTS.B,
22.47%,
2/03/24
..
382
390
991891498.UG.FTS.B,
22.47%,
2/03/24
..
102
103
991913841.UG.FTS.B,
22.47%,
2/03/24
..
54
55
991693378.UG.FTS.B,
23.44%,
2/03/24
..
173
177
991702806.UG.FTS.B,
23.45%,
2/03/24
..
457
465
991732381.UG.FTS.B,
23.45%,
2/03/24
..
189
192
991711117.UG.FTS.B,
25.44%,
2/03/24
...
232
236
991702151.UG.FTS.B,
25.45%,
2/03/24
..
91
90
991912006.UG.FTS.B,
27.99%,
2/03/24
..
129
129
991680261.UG.FTS.B,
28.48%,
2/03/24
..
333
334
991690009.UG.FTS.B,
28.48%,
2/03/24
..
339
345
991702399.UG.FTS.B,
28.48%,
2/03/24
..
35
35
991874849.UG.FTS.B,
28.48%,
2/03/24
..
32
32
991901928.UG.FTS.B,
28.48%,
2/03/24
..
65
66
991902514.UG.FTS.B,
28.48%,
2/03/24
..
18
18
991904640.UG.FTS.B,
28.48%,
2/03/24
..
228
229
991910482.UG.FTS.B,
28.48%,
2/03/24
..
33
33
991681086.UG.FTS.B,
29.48%,
2/03/24
..
69
69
991704230.UG.FTS.B,
29.48%,
2/03/24
..
377
383
991705815.UG.FTS.B,
29.48%,
2/03/24
..
379
382
991900344.UG.FTS.B,
29.48%,
2/03/24
..
51
51
991659972.UG.FTS.B,
29.49%,
2/03/24
..
2,151
2,188
991678302.UG.FTS.B,
29.49%,
2/03/24
..
144
145
991679485.UG.FTS.B,
29.49%,
2/03/24
..
629
621
991680860.UG.FTS.B,
29.49%,
2/03/24
..
73
74
991687586.UG.FTS.B,
29.49%,
2/03/24
..
116
118
991689928.UG.FTS.B,
29.49%,
2/03/24
..
113
114
991693809.UG.FTS.B,
29.49%,
2/03/24
..
106
107
991696571.UG.FTS.B,
29.49%,
2/03/24
..
39
14
991699949.UG.FTS.B,
29.49%,
2/03/24
..
243
241
991702908.UG.FTS.B,
29.49%,
2/03/24
..
134
136
991705235.UG.FTS.B,
29.49%,
2/03/24
..
33
33
991713394.UG.FTS.B,
29.49%,
2/03/24
..
209
212
991714413.UG.FTS.B,
29.49%,
2/03/24
..
55
56
991723826.UG.FTS.B,
29.49%,
2/03/24
..
53
53
991726593.UG.FTS.B,
29.49%,
2/03/24
..
66
67
991727796.UG.FTS.B,
29.49%,
2/03/24
..
177
175
991733227.UG.FTS.B,
29.49%,
2/03/24
..
1,189
1,202
991738598.UG.FTS.B,
29.49%,
2/03/24
..
51
52
991741241.UG.FTS.B,
29.49%,
2/03/24
..
109
109
991760491.UG.FTS.B,
29.49%,
2/03/24
..
31
32
991763674.UG.FTS.B,
29.49%,
2/03/24
..
57
58
991778703.UG.FTS.B,
29.49%,
2/03/24
..
1,064
1,071
991785226.UG.FTS.B,
29.49%,
2/03/24
..
202
205
991795299.UG.FTS.B,
29.49%,
2/03/24
..
256
258
991795649.UG.FTS.B,
29.49%,
2/03/24
..
175
174
991808350.UG.FTS.B,
29.49%,
2/03/24
..
68
69
991815788.UG.FTS.B,
29.49%,
2/03/24
..
128
128
991830693.UG.FTS.B,
29.49%,
2/03/24
..
95
94
991831313.UG.FTS.B,
29.49%,
2/03/24
..
407
407
991836116.UG.FTS.B,
29.49%,
2/03/24
..
429
436
991857232.UG.FTS.B,
29.49%,
2/03/24
..
1,052
1,045
991861447.UG.FTS.B,
29.49%,
2/03/24
..
83
84
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991874745.UG.FTS.B,
29.49%,
2/03/24
..
$
37
$
37
991889122.UG.FTS.B,
29.49%,
2/03/24
..
52
53
991892802.UG.FTS.B,
29.49%,
2/03/24
..
32
33
991900126.UG.FTS.B,
29.49%,
2/03/24
..
12
12
991909011.UG.FTS.B,
29.49%,
2/03/24
..
24
23
991909246.UG.FTS.B,
29.49%,
2/03/24
..
277
278
991909536.UG.FTS.B,
29.49%,
2/03/24
..
26
26
991910436.UG.FTS.B,
29.49%,
2/03/24
..
29
29
991910992.UG.FTS.B,
29.49%,
2/03/24
..
39
40
991912648.UG.FTS.B,
29.49%,
2/03/24
..
13
13
991913334.UG.FTS.B,
29.49%,
2/03/24
..
8
8
991915208.UG.FTS.B,
29.49%,
2/03/24
..
31
12
991918379.UG.FTS.B,
29.49%,
2/03/24
..
21
21
991844970.UG.FTS.B,
15%,
2/04/24
.....
1,392
1,427
991776059.UG.FTS.B,
15.47%,
2/04/24
..
93
95
991854905.UG.FTS.B,
15.47%,
2/04/24
..
371
381
991754220.UG.FTS.B,
15.49%,
2/04/24
..
22
22
991687252.UG.FTS.B,
16.49%,
2/04/24
..
60
61
991705198.UG.FTS.B,
17.49%,
2/04/24
..
19
20
991686911.UG.FTS.B,
18.47%,
2/04/24
..
108
111
991685554.UG.FTS.B,
18.71%,
2/04/24
..
119
122
991768122.UG.FTS.B,
22.47%,
2/04/24
..
75
76
991726743.UG.FTS.B,
23.45%,
2/04/24
..
69
71
991856429.UG.FTS.B,
27.99%,
2/04/24
..
166
166
991702673.UG.FTS.B,
28.48%,
2/04/24
..
166
167
991711623.UG.FTS.B,
28.48%,
2/04/24
..
14
14
991742407.UG.FTS.B,
28.48%,
2/04/24
..
204
205
991875683.UG.FTS.B,
28.48%,
2/04/24
..
144
144
991919081.UG.FTS.B,
28.48%,
2/04/24
..
34
34
991923764.UG.FTS.B,
28.48%,
2/04/24
..
16
16
991924972.UG.FTS.B,
28.48%,
2/04/24
..
33
33
991688068.UG.FTS.B,
29.48%,
2/04/24
..
404
413
991711305.UG.FTS.B,
29.48%,
2/04/24
..
151
154
991737606.UG.FTS.B,
29.48%,
2/04/24
..
216
218
991842330.UG.FTS.B,
29.48%,
2/04/24
..
165
165
991879561.UG.FTS.B,
29.48%,
2/04/24
..
118
118
991879835.UG.FTS.B,
29.48%,
2/04/24
..
0
0
991892456.UG.FTS.B,
29.48%,
2/04/24
..
42
42
991687855.UG.FTS.B,
29.49%,
2/04/24
..
125
127
991690036.UG.FTS.B,
29.49%,
2/04/24
..
157
159
991700800.UG.FTS.B,
29.49%,
2/04/24
..
394
392
991700803.UG.FTS.B,
29.49%,
2/04/24
..
166
168
991700847.UG.FTS.B,
29.49%,
2/04/24
..
1,143
1,161
991702984.UG.FTS.B,
29.49%,
2/04/24
..
121
122
991706472.UG.FTS.B,
29.49%,
2/04/24
..
127
126
991711192.UG.FTS.B,
29.49%,
2/04/24
..
102
24
991715507.UG.FTS.B,
29.49%,
2/04/24
..
58
59
991726705.UG.FTS.B,
29.49%,
2/04/24
..
216
218
991728226.UG.FTS.B,
29.49%,
2/04/24
..
1,834
1,855
991732035.UG.FTS.B,
29.49%,
2/04/24
..
4
4
991741073.UG.FTS.B,
29.49%,
2/04/24
..
138
32
991741875.UG.FTS.B,
29.49%,
2/04/24
..
267
269
991745008.UG.FTS.B,
29.49%,
2/04/24
..
67
68
991756664.UG.FTS.B,
29.49%,
2/04/24
..
159
160
991764301.UG.FTS.B,
29.49%,
2/04/24
..
118
118
991788801.UG.FTS.B,
29.49%,
2/04/24
..
186
186
991790411.UG.FTS.B,
29.49%,
2/04/24
..
200
198
991791030.UG.FTS.B,
29.49%,
2/04/24
..
236
30
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
111
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991796108.UG.FTS.B,
29.49%,
2/04/24
..
$
60
$
61
991804405.UG.FTS.B,
29.49%,
2/04/24
..
141
142
991813259.UG.FTS.B,
29.49%,
2/04/24
..
670
679
991829699.UG.FTS.B,
29.49%,
2/04/24
..
70
71
991840498.UG.FTS.B,
29.49%,
2/04/24
..
151
35
991847273.UG.FTS.B,
29.49%,
2/04/24
..
172
173
991858925.UG.FTS.B,
29.49%,
2/04/24
..
212
213
991874418.UG.FTS.B,
29.49%,
2/04/24
..
19
19
991880139.UG.FTS.B,
29.49%,
2/04/24
..
126
125
991883553.UG.FTS.B,
29.49%,
2/04/24
..
29
29
991888221.UG.FTS.B,
29.49%,
2/04/24
..
110
110
991894355.UG.FTS.B,
29.49%,
2/04/24
..
158
159
991902885.UG.FTS.B,
29.49%,
2/04/24
..
27
26
991909049.UG.FTS.B,
29.49%,
2/04/24
..
95
95
991909980.UG.FTS.B,
29.49%,
2/04/24
..
34
35
991910876.UG.FTS.B,
29.49%,
2/04/24
..
557
558
991911528.UG.FTS.B,
29.49%,
2/04/24
..
322
323
991911662.UG.FTS.B,
29.49%,
2/04/24
..
38
39
991912074.UG.FTS.B,
29.49%,
2/04/24
..
55
55
991913101.UG.FTS.B,
29.49%,
2/04/24
..
60
60
991916784.UG.FTS.B,
29.49%,
2/04/24
..
5
5
991917056.UG.FTS.B,
29.49%,
2/04/24
..
380
377
991917798.UG.FTS.B,
29.49%,
2/04/24
..
25
26
991919941.UG.FTS.B,
29.49%,
2/04/24
..
32
32
991920191.UG.FTS.B,
29.49%,
2/04/24
..
21
21
991921603.UG.FTS.B,
29.49%,
2/04/24
..
51
51
991921668.UG.FTS.B,
29.49%,
2/04/24
..
30
30
991922017.UG.FTS.B,
29.49%,
2/04/24
..
30
30
991924220.UG.FTS.B,
29.49%,
2/04/24
..
11
11
991719169.UG.FTS.B,
18.71%,
2/05/24
..
156
157
991772760.UG.FTS.B,
18.71%,
2/05/24
..
279
199
991698328.UG.FTS.B,
19.3%,
2/05/24
...
61
62
991702868.UG.FTS.B,
19.3%,
2/05/24
...
198
201
991711452.UG.FTS.B,
19.96%,
2/05/24
..
202
207
991876008.UG.FTS.B,
19.96%,
2/05/24
..
45
46
991693126.UG.FTS.B,
19.99%,
2/05/24
..
129
132
991768477.UG.FTS.B,
19.99%,
2/05/24
..
50
51
991815229.UG.FTS.B,
19.99%,
2/05/24
..
56
57
991818135.UG.FTS.B,
19.99%,
2/05/24
..
46
47
991910371.UG.FTS.B,
19.99%,
2/05/24
..
44
45
991896939.UG.FTS.B,
20.47%,
2/05/24
..
896
907
991900869.UG.FTS.B,
20.96%,
2/05/24
..
90
92
991914493.UG.FTS.B,
20.96%,
2/05/24
..
30
31
991779478.UG.FTS.B,
21.48%,
2/05/24
..
389
397
991827138.UG.FTS.B,
21.48%,
2/05/24
..
104
106
991854090.UG.FTS.B,
21.48%,
2/05/24
..
214
219
991809209.UG.FTS.B,
22.45%,
2/05/24
..
50
51
991727668.UG.FTS.B,
22.47%,
2/05/24
..
0
0
991776899.UG.FTS.B,
22.47%,
2/05/24
..
100
102
991698945.UG.FTS.B,
23.45%,
2/05/24
..
253
258
991725398.UG.FTS.B,
23.45%,
2/05/24
..
83
84
991938019.UG.FTS.B,
23.45%,
2/05/24
..
186
187
991885330.UG.FTS.B,
24.45%,
2/05/24
..
16
15
991809381.UG.FTS.B,
25.44%,
2/05/24
..
241
243
991700243.UG.FTS.B,
25.45%,
2/05/24
..
201
205
991866679.UG.FTS.B,
26.44%,
2/05/24
..
102
104
991823832.UG.FTS.B,
27.95%,
2/05/24
..
60
4
991679881.UG.FTS.B,
28.48%,
2/05/24
..
26
26
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991697533.UG.FTS.B,
28.48%,
2/05/24
..
$
61
$
61
991705005.UG.FTS.B,
28.48%,
2/05/24
..
58
59
991710955.UG.FTS.B,
28.48%,
2/05/24
..
14
14
991712635.UG.FTS.B,
28.48%,
2/05/24
..
355
358
991713761.UG.FTS.B,
28.48%,
2/05/24
..
30
27
991735405.UG.FTS.B,
28.48%,
2/05/24
..
73
73
991738161.UG.FTS.B,
28.48%,
2/05/24
..
255
259
991739512.UG.FTS.B,
28.48%,
2/05/24
..
149
150
991743493.UG.FTS.B,
28.48%,
2/05/24
..
96
97
991744316.UG.FTS.B,
28.48%,
2/05/24
..
264
269
991751198.UG.FTS.B,
28.48%,
2/05/24
..
325
331
991754237.UG.FTS.B,
28.48%,
2/05/24
..
153
155
991756677.UG.FTS.B,
28.48%,
2/05/24
..
138
138
991756833.UG.FTS.B,
28.48%,
2/05/24
..
81
82
991766340.UG.FTS.B,
28.48%,
2/05/24
..
605
616
991773527.UG.FTS.B,
28.48%,
2/05/24
..
37
37
991780618.UG.FTS.B,
28.48%,
2/05/24
..
117
119
991783723.UG.FTS.B,
28.48%,
2/05/24
..
90
65
991785400.UG.FTS.B,
28.48%,
2/05/24
..
129
131
991818664.UG.FTS.B,
28.48%,
2/05/24
..
1,070
1,065
991819563.UG.FTS.B,
28.48%,
2/05/24
..
98
100
991829882.UG.FTS.B,
28.48%,
2/05/24
..
40
40
991835745.UG.FTS.B,
28.48%,
2/05/24
..
164
166
991837209.UG.FTS.B,
28.48%,
2/05/24
..
125
127
991845532.UG.FTS.B,
28.48%,
2/05/24
..
514
513
991852618.UG.FTS.B,
28.48%,
2/05/24
..
104
104
991874473.UG.FTS.B,
28.48%,
2/05/24
..
188
186
991886671.UG.FTS.B,
28.48%,
2/05/24
..
67
69
991898117.UG.FTS.B,
28.48%,
2/05/24
..
159
160
991901004.UG.FTS.B,
28.48%,
2/05/24
..
87
87
991916369.UG.FTS.B,
28.48%,
2/05/24
..
184
185
991919905.UG.FTS.B,
28.48%,
2/05/24
..
739
733
991805200.UG.FTS.B,
29.46%,
2/05/24
..
117
119
991802837.UG.FTS.B,
29.47%,
2/05/24
..
14
14
991697955.UG.FTS.B,
29.48%,
2/05/24
..
379
284
991700432.UG.FTS.B,
29.48%,
2/05/24
..
51
51
991701867.UG.FTS.B,
29.48%,
2/05/24
..
91
93
991702648.UG.FTS.B,
29.48%,
2/05/24
..
47
48
991706005.UG.FTS.B,
29.48%,
2/05/24
..
1
1
991707234.UG.FTS.B,
29.48%,
2/05/24
..
34
34
991709685.UG.FTS.B,
29.48%,
2/05/24
..
689
690
991711302.UG.FTS.B,
29.48%,
2/05/24
..
3
3
991714933.UG.FTS.B,
29.48%,
2/05/24
..
132
133
991716572.UG.FTS.B,
29.48%,
2/05/24
..
91
93
991725591.UG.FTS.B,
29.48%,
2/05/24
..
47
47
991733077.UG.FTS.B,
29.48%,
2/05/24
..
37
37
991739122.UG.FTS.B,
29.48%,
2/05/24
..
138
141
991747028.UG.FTS.B,
29.48%,
2/05/24
..
6
6
991754699.UG.FTS.B,
29.48%,
2/05/24
..
107
108
991755146.UG.FTS.B,
29.48%,
2/05/24
..
223
227
991768220.UG.FTS.B,
29.48%,
2/05/24
..
51
52
991779730.UG.FTS.B,
29.48%,
2/05/24
..
64
65
991781448.UG.FTS.B,
29.48%,
2/05/24
..
126
129
991792826.UG.FTS.B,
29.48%,
2/05/24
..
259
261
991797219.UG.FTS.B,
29.48%,
2/05/24
..
747
760
991799948.UG.FTS.B,
29.48%,
2/05/24
..
42
43
991825293.UG.FTS.B,
29.48%,
2/05/24
..
27
27
991833863.UG.FTS.B,
29.48%,
2/05/24
..
187
190
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991838320.UG.FTS.B,
29.48%,
2/05/24
..
$
79
$
81
991854737.UG.FTS.B,
29.48%,
2/05/24
..
844
851
991864151.UG.FTS.B,
29.48%,
2/05/24
..
1,076
1,080
991898289.UG.FTS.B,
29.48%,
2/05/24
..
92
93
991914626.UG.FTS.B,
29.48%,
2/05/24
..
56
56
991679707.UG.FTS.B,
29.49%,
2/05/24
..
332
338
991680432.UG.FTS.B,
29.49%,
2/05/24
..
322
323
991681844.UG.FTS.B,
29.49%,
2/05/24
..
958
975
991682447.UG.FTS.B,
29.49%,
2/05/24
..
950
970
991692055.UG.FTS.B,
29.49%,
2/05/24
..
326
326
991692728.UG.FTS.B,
29.49%,
2/05/24
..
509
515
991693089.UG.FTS.B,
29.49%,
2/05/24
..
152
152
991693747.UG.FTS.B,
29.49%,
2/05/24
..
97
23
991693783.UG.FTS.B,
29.49%,
2/05/24
..
76
76
991694163.UG.FTS.B,
29.49%,
2/05/24
..
15
15
991695149.UG.FTS.B,
29.49%,
2/05/24
..
65
65
991695622.UG.FTS.B,
29.49%,
2/05/24
..
75
75
991695845.UG.FTS.B,
29.49%,
2/05/24
..
34
13
991696162.UG.FTS.B,
29.49%,
2/05/24
..
118
119
991696477.UG.FTS.B,
29.49%,
2/05/24
..
1,049
1,051
991696616.UG.FTS.B,
29.49%,
2/05/24
..
285
289
991696879.UG.FTS.B,
29.49%,
2/05/24
..
580
589
991697001.UG.FTS.B,
29.49%,
2/05/24
..
13
13
991697144.UG.FTS.B,
29.49%,
2/05/24
..
107
108
991697343.UG.FTS.B,
29.49%,
2/05/24
..
44
44
991697660.UG.FTS.B,
29.49%,
2/05/24
..
16
16
991700056.UG.FTS.B,
29.49%,
2/05/24
..
636
644
991700549.UG.FTS.B,
29.49%,
2/05/24
..
65
66
991701473.UG.FTS.B,
29.49%,
2/05/24
..
312
318
991702452.UG.FTS.B,
29.49%,
2/05/24
..
7
7
991703889.UG.FTS.B,
29.49%,
2/05/24
..
314
319
991704158.UG.FTS.B,
29.49%,
2/05/24
..
17
8
991704518.UG.FTS.B,
29.49%,
2/05/24
..
72
73
991705344.UG.FTS.B,
29.49%,
2/05/24
..
84
85
991705462.UG.FTS.B,
29.49%,
2/05/24
..
283
285
991705465.UG.FTS.B,
29.49%,
2/05/24
..
119
97
991706450.UG.FTS.B,
29.49%,
2/05/24
..
42
42
991706846.UG.FTS.B,
29.49%,
2/05/24
..
193
197
991708749.UG.FTS.B,
29.49%,
2/05/24
..
47
47
991709555.UG.FTS.B,
29.49%,
2/05/24
..
45
45
991711063.UG.FTS.B,
29.49%,
2/05/24
..
161
163
991711180.UG.FTS.B,
29.49%,
2/05/24
..
8
8
991711397.UG.FTS.B,
29.49%,
2/05/24
..
473
480
991712546.UG.FTS.B,
29.49%,
2/05/24
..
98
100
991713122.UG.FTS.B,
29.49%,
2/05/24
..
57
4
991713288.UG.FTS.B,
29.49%,
2/05/24
..
74
75
991713498.UG.FTS.B,
29.49%,
2/05/24
..
88
89
991713749.UG.FTS.B,
29.49%,
2/05/24
..
10
10
991714141.UG.FTS.B,
29.49%,
2/05/24
..
45
46
991715806.UG.FTS.B,
29.49%,
2/05/24
..
25
25
991716267.UG.FTS.B,
29.49%,
2/05/24
..
105
107
991716734.UG.FTS.B,
29.49%,
2/05/24
..
246
246
991717197.UG.FTS.B,
29.49%,
2/05/24
..
7
7
991718017.UG.FTS.B,
29.49%,
2/05/24
..
119
120
991722519.UG.FTS.B,
29.49%,
2/05/24
..
133
132
991723083.UG.FTS.B,
29.49%,
2/05/24
..
190
193
991723420.UG.FTS.B,
29.49%,
2/05/24
..
94
95
991724092.UG.FTS.B,
29.49%,
2/05/24
..
93
93
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991724528.UG.FTS.B,
29.49%,
2/05/24
..
$
177
$
179
991724906.UG.FTS.B,
29.49%,
2/05/24
..
25
26
991726322.UG.FTS.B,
29.49%,
2/05/24
..
60
61
991726513.UG.FTS.B,
29.49%,
2/05/24
..
18
18
991727828.UG.FTS.B,
29.49%,
2/05/24
..
9
9
991729272.UG.FTS.B,
29.49%,
2/05/24
..
126
126
991729702.UG.FTS.B,
29.49%,
2/05/24
..
410
408
991729824.UG.FTS.B,
29.49%,
2/05/24
..
277
282
991730567.UG.FTS.B,
29.49%,
2/05/24
..
179
179
991730811.UG.FTS.B,
29.49%,
2/05/24
..
1,910
1,950
991730878.UG.FTS.B,
29.49%,
2/05/24
..
325
235
991731157.UG.FTS.B,
29.49%,
2/05/24
..
159
118
991731679.UG.FTS.B,
29.49%,
2/05/24
..
273
270
991733469.UG.FTS.B,
29.49%,
2/05/24
..
43
42
991733625.UG.FTS.B,
29.49%,
2/05/24
..
37
37
991737989.UG.FTS.B,
29.49%,
2/05/24
..
75
76
991739387.UG.FTS.B,
29.49%,
2/05/24
..
711
722
991741149.UG.FTS.B,
29.49%,
2/05/24
..
364
361
991741214.UG.FTS.B,
29.49%,
2/05/24
..
55
55
991741933.UG.FTS.B,
29.49%,
2/05/24
..
292
289
991742642.UG.FTS.B,
29.49%,
2/05/24
..
44
44
991743867.UG.FTS.B,
29.49%,
2/05/24
..
111
110
991744990.UG.FTS.B,
29.49%,
2/05/24
..
89
90
991745688.UG.FTS.B,
29.49%,
2/05/24
..
55
56
991750870.UG.FTS.B,
29.49%,
2/05/24
..
37
37
991751346.UG.FTS.B,
29.49%,
2/05/24
..
147
148
991752632.UG.FTS.B,
29.49%,
2/05/24
..
206
207
991753863.UG.FTS.B,
29.49%,
2/05/24
..
18
18
991757073.UG.FTS.B,
29.49%,
2/05/24
..
14
14
991757403.UG.FTS.B,
29.49%,
2/05/24
..
47
47
991757885.UG.FTS.B,
29.49%,
2/05/24
..
663
672
991757963.UG.FTS.B,
29.49%,
2/05/24
..
32
32
991759355.UG.FTS.B,
29.49%,
2/05/24
..
18
18
991759886.UG.FTS.B,
29.49%,
2/05/24
..
83
85
991760033.UG.FTS.B,
29.49%,
2/05/24
..
76
76
991760562.UG.FTS.B,
29.49%,
2/05/24
..
38
38
991760937.UG.FTS.B,
29.49%,
2/05/24
..
56
56
991762562.UG.FTS.B,
29.49%,
2/05/24
..
112
113
991762619.UG.FTS.B,
29.49%,
2/05/24
..
120
122
991763730.UG.FTS.B,
29.49%,
2/05/24
..
16
16
991763866.UG.FTS.B,
29.49%,
2/05/24
..
82
83
991773526.UG.FTS.B,
29.49%,
2/05/24
..
378
384
991773707.UG.FTS.B,
29.49%,
2/05/24
..
371
373
991774846.UG.FTS.B,
29.49%,
2/05/24
..
331
336
991775549.UG.FTS.B,
29.49%,
2/05/24
..
535
536
991776888.UG.FTS.B,
29.49%,
2/05/24
..
20
21
991777302.UG.FTS.B,
29.49%,
2/05/24
..
171
170
991779496.UG.FTS.B,
29.49%,
2/05/24
..
436
442
991779729.UG.FTS.B,
29.49%,
2/05/24
..
202
201
991783484.UG.FTS.B,
29.49%,
2/05/24
..
251
254
991784091.UG.FTS.B,
29.49%,
2/05/24
..
69
70
991785049.UG.FTS.B,
29.49%,
2/05/24
..
124
126
991785208.UG.FTS.B,
29.49%,
2/05/24
..
2
2
991786506.UG.FTS.B,
29.49%,
2/05/24
..
230
235
991786889.UG.FTS.B,
29.49%,
2/05/24
..
35
35
991787648.UG.FTS.B,
29.49%,
2/05/24
..
555
562
991788242.UG.FTS.B,
29.49%,
2/05/24
..
32
2
991788922.UG.FTS.B,
29.49%,
2/05/24
..
635
645
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
113
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991790422.UG.FTS.B,
29.49%,
2/05/24
..
$
17
$
17
991790437.UG.FTS.B,
29.49%,
2/05/24
..
43
43
991791302.UG.FTS.B,
29.49%,
2/05/24
..
52
52
991794884.UG.FTS.B,
29.49%,
2/05/24
..
532
540
991795706.UG.FTS.B,
29.49%,
2/05/24
..
120
119
991796027.UG.FTS.B,
29.49%,
2/05/24
..
177
179
991797436.UG.FTS.B,
29.49%,
2/05/24
..
41
41
991798472.UG.FTS.B,
29.49%,
2/05/24
..
26
11
991798887.UG.FTS.B,
29.49%,
2/05/24
..
87
88
991799165.UG.FTS.B,
29.49%,
2/05/24
..
100
101
991801405.UG.FTS.B,
29.49%,
2/05/24
..
319
326
991804544.UG.FTS.B,
29.49%,
2/05/24
..
101
100
991805403.UG.FTS.B,
29.49%,
2/05/24
..
44
44
991805836.UG.FTS.B,
29.49%,
2/05/24
..
75
73
991807322.UG.FTS.B,
29.49%,
2/05/24
..
47
47
991807620.UG.FTS.B,
29.49%,
2/05/24
..
30
30
991808770.UG.FTS.B,
29.49%,
2/05/24
..
29
29
991810461.UG.FTS.B,
29.49%,
2/05/24
..
179
181
991815042.UG.FTS.B,
29.49%,
2/05/24
..
11
11
991815117.UG.FTS.B,
29.49%,
2/05/24
..
99
99
991815549.UG.FTS.B,
29.49%,
2/05/24
..
15
15
991816327.UG.FTS.B,
29.49%,
2/05/24
..
975
969
991816825.UG.FTS.B,
29.49%,
2/05/24
..
39
40
991821184.UG.FTS.B,
29.49%,
2/05/24
..
159
159
991822999.UG.FTS.B,
29.49%,
2/05/24
..
10
10
991825095.UG.FTS.B,
29.49%,
2/05/24
..
417
422
991825274.UG.FTS.B,
29.49%,
2/05/24
..
53
54
991827164.UG.FTS.B,
29.49%,
2/05/24
..
60
60
991827302.UG.FTS.B,
29.49%,
2/05/24
..
174
175
991831270.UG.FTS.B,
29.49%,
2/05/24
..
232
230
991833796.UG.FTS.B,
29.49%,
2/05/24
..
141
142
991835834.UG.FTS.B,
29.49%,
2/05/24
..
93
94
991837619.UG.FTS.B,
29.49%,
2/05/24
..
50
50
991839857.UG.FTS.B,
29.49%,
2/05/24
..
40
40
991845074.UG.FTS.B,
29.49%,
2/05/24
..
305
304
991845124.UG.FTS.B,
29.49%,
2/05/24
..
170
125
991847475.UG.FTS.B,
29.49%,
2/05/24
..
58
59
991848440.UG.FTS.B,
29.49%,
2/05/24
..
55
54
991850514.UG.FTS.B,
29.49%,
2/05/24
..
255
256
991850797.UG.FTS.B,
29.49%,
2/05/24
..
179
180
991852272.UG.FTS.B,
29.49%,
2/05/24
..
98
98
991852368.UG.FTS.B,
29.49%,
2/05/24
..
287
286
991853715.UG.FTS.B,
29.49%,
2/05/24
..
16
16
991857846.UG.FTS.B,
29.49%,
2/05/24
..
32
32
991858745.UG.FTS.B,
29.49%,
2/05/24
..
295
299
991858849.UG.FTS.B,
29.49%,
2/05/24
..
58
58
991858897.UG.FTS.B,
29.49%,
2/05/24
..
63
64
991859728.UG.FTS.B,
29.49%,
2/05/24
..
15
15
991862959.UG.FTS.B,
29.49%,
2/05/24
..
469
476
991865361.UG.FTS.B,
29.49%,
2/05/24
..
20
20
991869449.UG.FTS.B,
29.49%,
2/05/24
..
75
75
991875493.UG.FTS.B,
29.49%,
2/05/24
..
13
13
991875810.UG.FTS.B,
29.49%,
2/05/24
..
191
190
991879388.UG.FTS.B,
29.49%,
2/05/24
..
86
85
991880706.UG.FTS.B,
29.49%,
2/05/24
..
64
65
991881786.UG.FTS.B,
29.49%,
2/05/24
..
68
69
991884438.UG.FTS.B,
29.49%,
2/05/24
..
35
35
991884613.UG.FTS.B,
29.49%,
2/05/24
..
20
20
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991886690.UG.FTS.B,
29.49%,
2/05/24
..
$
113
$
111
991889487.UG.FTS.B,
29.49%,
2/05/24
..
97
96
991890862.UG.FTS.B,
29.49%,
2/05/24
..
34
34
991898184.UG.FTS.B,
29.49%,
2/05/24
..
80
79
991899976.UG.FTS.B,
29.49%,
2/05/24
..
143
142
991900038.UG.FTS.B,
29.49%,
2/05/24
..
54
54
991900410.UG.FTS.B,
29.49%,
2/05/24
..
47
48
991901626.UG.FTS.B,
29.49%,
2/05/24
..
259
255
991905879.UG.FTS.B,
29.49%,
2/05/24
..
115
115
991908519.UG.FTS.B,
29.49%,
2/05/24
..
94
94
991911294.UG.FTS.B,
29.49%,
2/05/24
..
85
85
991912151.UG.FTS.B,
29.49%,
2/05/24
..
325
322
991912389.UG.FTS.B,
29.49%,
2/05/24
..
27
28
991916372.UG.FTS.B,
29.49%,
2/05/24
..
21
21
991928169.UG.FTS.B,
29.49%,
2/05/24
..
63
63
991930194.UG.FTS.B,
29.49%,
2/05/24
..
93
93
991932077.UG.FTS.B,
29.49%,
2/05/24
..
28
28
991932864.UG.FTS.B,
29.49%,
2/05/24
..
75
76
991932898.UG.FTS.B,
29.49%,
2/05/24
..
682
678
991935172.UG.FTS.B,
29.49%,
2/05/24
..
89
88
991936900.UG.FTS.B,
29.49%,
2/05/24
..
93
92
991704421.UG.FTS.B,
18.47%,
2/06/24
..
71
71
991706844.UG.FTS.B,
18.47%,
2/06/24
..
206
211
991766242.UG.FTS.B,
18.47%,
2/06/24
..
212
216
991702860.UG.FTS.B,
18.71%,
2/06/24
..
157
161
991812725.UG.FTS.B,
18.71%,
2/06/24
..
–
–
991890872.UG.FTS.B,
19.3%,
2/06/24
...
16
16
991743870.UG.FTS.B,
19.96%,
2/06/24
..
31
31
991894070.UG.FTS.B,
19.96%,
2/06/24
..
264
267
991928651.UG.FTS.B,
19.96%,
2/06/24
..
696
705
991750813.UG.FTS.B,
19.99%,
2/06/24
..
127
129
991911467.UG.FTS.B,
19.99%,
2/06/24
..
75
76
991713559.UG.FTS.B,
20.47%,
2/06/24
..
36
37
991719716.UG.FTS.B,
20.47%,
2/06/24
..
429
438
991721661.UG.FTS.B,
20.47%,
2/06/24
..
3,865
3,949
991740030.UG.FTS.B,
20.47%,
2/06/24
..
285
291
991801406.UG.FTS.B,
20.47%,
2/06/24
..
100
7
991829360.UG.FTS.B,
20.47%,
2/06/24
..
38
39
991718257.UG.FTS.B,
20.96%,
2/06/24
..
165
168
991721853.UG.FTS.B,
20.96%,
2/06/24
..
299
303
991809389.UG.FTS.B,
20.96%,
2/06/24
..
394
403
991714545.UG.FTS.B,
21.48%,
2/06/24
..
266
270
991747919.UG.FTS.B,
21.48%,
2/06/24
..
97
99
991764160.UG.FTS.B,
21.48%,
2/06/24
..
166
169
991803770.UG.FTS.B,
21.48%,
2/06/24
..
52
53
991896635.UG.FTS.B,
21.48%,
2/06/24
..
569
574
991704625.UG.FTS.B,
22.47%,
2/06/24
..
72
73
991735920.UG.FTS.B,
22.47%,
2/06/24
..
144
17
991770409.UG.FTS.B,
22.47%,
2/06/24
..
218
222
991818161.UG.FTS.B,
22.47%,
2/06/24
..
636
642
991858801.UG.FTS.B,
22.47%,
2/06/24
..
103
105
991713027.UG.FTS.B,
23.45%,
2/06/24
..
446
455
991795177.UG.FTS.B,
23.45%,
2/06/24
..
96
21
991908552.UG.FTS.B,
23.45%,
2/06/24
..
279
282
991734865.UG.FTS.B,
25.45%,
2/06/24
..
147
149
991703738.UG.FTS.B,
27.95%,
2/06/24
..
6
6
991690169.UG.FTS.B,
28.48%,
2/06/24
..
1,427
1,454
991700308.UG.FTS.B,
28.48%,
2/06/24
..
53
53
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
114
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991701899.UG.FTS.B,
28.48%,
2/06/24
..
$
176
$
177
991702392.UG.FTS.B,
28.48%,
2/06/24
..
180
184
991704340.UG.FTS.B,
28.48%,
2/06/24
..
414
422
991705248.UG.FTS.B,
28.48%,
2/06/24
..
35
36
991708303.UG.FTS.B,
28.48%,
2/06/24
..
26
26
991709748.UG.FTS.B,
28.48%,
2/06/24
..
48
48
991711318.UG.FTS.B,
28.48%,
2/06/24
..
133
136
991713658.UG.FTS.B,
28.48%,
2/06/24
..
190
191
991716848.UG.FTS.B,
28.48%,
2/06/24
..
171
174
991719954.UG.FTS.B,
28.48%,
2/06/24
..
977
225
991724225.UG.FTS.B,
28.48%,
2/06/24
..
61
62
991726042.UG.FTS.B,
28.48%,
2/06/24
..
41
42
991729743.UG.FTS.B,
28.48%,
2/06/24
..
22
22
991730449.UG.FTS.B,
28.48%,
2/06/24
..
190
193
991738872.UG.FTS.B,
28.48%,
2/06/24
..
62
63
991740055.UG.FTS.B,
28.48%,
2/06/24
..
663
675
991741244.UG.FTS.B,
28.48%,
2/06/24
..
146
148
991742510.UG.FTS.B,
28.48%,
2/06/24
..
16
16
991756963.UG.FTS.B,
28.48%,
2/06/24
..
119
120
991758170.UG.FTS.B,
28.48%,
2/06/24
..
89
91
991766960.UG.FTS.B,
28.48%,
2/06/24
..
50
51
991776398.UG.FTS.B,
28.48%,
2/06/24
..
197
200
991778391.UG.FTS.B,
28.48%,
2/06/24
..
323
323
991780645.UG.FTS.B,
28.48%,
2/06/24
..
353
359
991785489.UG.FTS.B,
28.48%,
2/06/24
..
630
641
991787571.UG.FTS.B,
28.48%,
2/06/24
..
52
53
991791057.UG.FTS.B,
28.48%,
2/06/24
..
139
142
991803786.UG.FTS.B,
28.48%,
2/06/24
..
147
150
991827686.UG.FTS.B,
28.48%,
2/06/24
..
192
195
991831344.UG.FTS.B,
28.48%,
2/06/24
..
122
122
991833476.UG.FTS.B,
28.48%,
2/06/24
..
1,409
1,435
991833886.UG.FTS.B,
28.48%,
2/06/24
..
19
19
991853055.UG.FTS.B,
28.48%,
2/06/24
..
221
223
991853534.UG.FTS.B,
28.48%,
2/06/24
..
188
191
991865763.UG.FTS.B,
28.48%,
2/06/24
..
167
168
991895433.UG.FTS.B,
28.48%,
2/06/24
..
750
94
991896815.UG.FTS.B,
28.48%,
2/06/24
..
369
368
991937815.UG.FTS.B,
28.48%,
2/06/24
..
148
146
991699505.UG.FTS.B,
29.48%,
2/06/24
..
43
44
991702376.UG.FTS.B,
29.48%,
2/06/24
..
27
27
991704767.UG.FTS.B,
29.48%,
2/06/24
..
434
441
991710288.UG.FTS.B,
29.48%,
2/06/24
..
13
13
991711309.UG.FTS.B,
29.48%,
2/06/24
..
60
60
991711350.UG.FTS.B,
29.48%,
2/06/24
..
489
485
991714474.UG.FTS.B,
29.48%,
2/06/24
..
120
120
991725659.UG.FTS.B,
29.48%,
2/06/24
..
78
78
991726043.UG.FTS.B,
29.48%,
2/06/24
..
129
131
991739555.UG.FTS.B,
29.48%,
2/06/24
..
127
129
991752409.UG.FTS.B,
29.48%,
2/06/24
..
10
10
991767044.UG.FTS.B,
29.48%,
2/06/24
..
10
10
991772431.UG.FTS.B,
29.48%,
2/06/24
..
1,397
1,421
991781765.UG.FTS.B,
29.48%,
2/06/24
..
51
51
991791271.UG.FTS.B,
29.48%,
2/06/24
..
12
12
991793829.UG.FTS.B,
29.48%,
2/06/24
..
51
16
991798043.UG.FTS.B,
29.48%,
2/06/24
..
21
22
991819053.UG.FTS.B,
29.48%,
2/06/24
..
94
95
991832143.UG.FTS.B,
29.48%,
2/06/24
..
229
232
991835222.UG.FTS.B,
29.48%,
2/06/24
..
752
758
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991851415.UG.FTS.B,
29.48%,
2/06/24
..
$
27
$
27
991859387.UG.FTS.B,
29.48%,
2/06/24
..
6
6
991861015.UG.FTS.B,
29.48%,
2/06/24
..
57
58
991894999.UG.FTS.B,
29.48%,
2/06/24
..
655
661
991914678.UG.FTS.B,
29.48%,
2/06/24
..
230
231
991928677.UG.FTS.B,
29.48%,
2/06/24
..
187
187
991698911.UG.FTS.B,
29.49%,
2/06/24
..
144
146
991700169.UG.FTS.B,
29.49%,
2/06/24
..
215
218
991700219.UG.FTS.B,
29.49%,
2/06/24
..
117
117
991700772.UG.FTS.B,
29.49%,
2/06/24
..
286
287
991701271.UG.FTS.B,
29.49%,
2/06/24
..
199
202
991701514.UG.FTS.B,
29.49%,
2/06/24
..
27
28
991701883.UG.FTS.B,
29.49%,
2/06/24
..
1,493
1,510
991702425.UG.FTS.B,
29.49%,
2/06/24
..
17
17
991702589.UG.FTS.B,
29.49%,
2/06/24
..
42
43
991702835.UG.FTS.B,
29.49%,
2/06/24
..
224
227
991702991.UG.FTS.B,
29.49%,
2/06/24
..
331
332
991703003.UG.FTS.B,
29.49%,
2/06/24
..
65
18
991703043.UG.FTS.B,
29.49%,
2/06/24
..
77
78
991703094.UG.FTS.B,
29.49%,
2/06/24
..
69
70
991703613.UG.FTS.B,
29.49%,
2/06/24
..
82
82
991704277.UG.FTS.B,
29.49%,
2/06/24
..
512
513
991704372.UG.FTS.B,
29.49%,
2/06/24
..
134
136
991704650.UG.FTS.B,
29.49%,
2/06/24
..
4
4
991705086.UG.FTS.B,
29.49%,
2/06/24
..
346
343
991705673.UG.FTS.B,
29.49%,
2/06/24
..
51
51
991706233.UG.FTS.B,
29.49%,
2/06/24
..
280
279
991706376.UG.FTS.B,
29.49%,
2/06/24
..
148
150
991706434.UG.FTS.B,
29.49%,
2/06/24
..
329
333
991706794.UG.FTS.B,
29.49%,
2/06/24
..
115
115
991706855.UG.FTS.B,
29.49%,
2/06/24
..
16
16
991707005.UG.FTS.B,
29.49%,
2/06/24
..
534
539
991707306.UG.FTS.B,
29.49%,
2/06/24
..
860
874
991707720.UG.FTS.B,
29.49%,
2/06/24
..
21
9
991707852.UG.FTS.B,
29.49%,
2/06/24
..
91
92
991708306.UG.FTS.B,
29.49%,
2/06/24
..
19
19
991708729.UG.FTS.B,
29.49%,
2/06/24
..
40
40
991709169.UG.FTS.B,
29.49%,
2/06/24
..
113
114
991710056.UG.FTS.B,
29.49%,
2/06/24
..
36
36
991710659.UG.FTS.B,
29.49%,
2/06/24
..
66
54
991711265.UG.FTS.B,
29.49%,
2/06/24
..
209
212
991711500.UG.FTS.B,
29.49%,
2/06/24
..
7
7
991711897.UG.FTS.B,
29.49%,
2/06/24
..
87
89
991713731.UG.FTS.B,
29.49%,
2/06/24
..
92
93
991714822.UG.FTS.B,
29.49%,
2/06/24
..
194
194
991715112.UG.FTS.B,
29.49%,
2/06/24
..
125
123
991716404.UG.FTS.B,
29.49%,
2/06/24
..
25
26
991717036.UG.FTS.B,
29.49%,
2/06/24
..
20
20
991717164.UG.FTS.B,
29.49%,
2/06/24
..
7
7
991717524.UG.FTS.B,
29.49%,
2/06/24
..
222
226
991718539.UG.FTS.B,
29.49%,
2/06/24
..
94
96
991722299.UG.FTS.B,
29.49%,
2/06/24
..
135
136
991723140.UG.FTS.B,
29.49%,
2/06/24
..
285
288
991723291.UG.FTS.B,
29.49%,
2/06/24
..
32
33
991723907.UG.FTS.B,
29.49%,
2/06/24
..
385
380
991725101.UG.FTS.B,
29.49%,
2/06/24
..
61
62
991726212.UG.FTS.B,
29.49%,
2/06/24
..
27
26
991726361.UG.FTS.B,
29.49%,
2/06/24
..
717
727
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
115
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991727080.UG.FTS.B,
29.49%,
2/06/24
..
$
60
$
60
991730343.UG.FTS.B,
29.49%,
2/06/24
..
237
241
991731423.UG.FTS.B,
29.49%,
2/06/24
..
141
142
991732799.UG.FTS.B,
29.49%,
2/06/24
..
474
478
991734017.UG.FTS.B,
29.49%,
2/06/24
..
297
300
991734953.UG.FTS.B,
29.49%,
2/06/24
..
242
241
991735402.UG.FTS.B,
29.49%,
2/06/24
..
104
105
991735997.UG.FTS.B,
29.49%,
2/06/24
..
178
179
991736136.UG.FTS.B,
29.49%,
2/06/24
..
17
17
991736969.UG.FTS.B,
29.49%,
2/06/24
..
206
210
991738288.UG.FTS.B,
29.49%,
2/06/24
..
197
198
991738514.UG.FTS.B,
29.49%,
2/06/24
..
201
204
991738581.UG.FTS.B,
29.49%,
2/06/24
..
141
140
991739473.UG.FTS.B,
29.49%,
2/06/24
..
114
115
991741909.UG.FTS.B,
29.49%,
2/06/24
..
306
304
991743596.UG.FTS.B,
29.49%,
2/06/24
..
51
52
991743988.UG.FTS.B,
29.49%,
2/06/24
..
128
131
991746488.UG.FTS.B,
29.49%,
2/06/24
..
15
15
991750749.UG.FTS.B,
29.49%,
2/06/24
..
564
561
991754259.UG.FTS.B,
29.49%,
2/06/24
..
32
12
991754427.UG.FTS.B,
29.49%,
2/06/24
..
419
418
991754453.UG.FTS.B,
29.49%,
2/06/24
..
132
134
991754554.UG.FTS.B,
29.49%,
2/06/24
..
155
156
991756004.UG.FTS.B,
29.49%,
2/06/24
..
223
226
991756713.UG.FTS.B,
29.49%,
2/06/24
..
911
926
991757511.UG.FTS.B,
29.49%,
2/06/24
..
98
98
991760581.UG.FTS.B,
29.49%,
2/06/24
..
424
429
991762718.UG.FTS.B,
29.49%,
2/06/24
..
164
166
991763617.UG.FTS.B,
29.49%,
2/06/24
..
9
9
991763838.UG.FTS.B,
29.49%,
2/06/24
..
42
42
991766178.UG.FTS.B,
29.49%,
2/06/24
..
62
62
991766882.UG.FTS.B,
29.49%,
2/06/24
..
210
213
991767912.UG.FTS.B,
29.49%,
2/06/24
..
174
177
991768785.UG.FTS.B,
29.49%,
2/06/24
..
31
31
991769363.UG.FTS.B,
29.49%,
2/06/24
..
88
88
991775218.UG.FTS.B,
29.49%,
2/06/24
..
272
275
991780320.UG.FTS.B,
29.49%,
2/06/24
..
50
4
991780601.UG.FTS.B,
29.49%,
2/06/24
..
132
134
991781219.UG.FTS.B,
29.49%,
2/06/24
..
135
134
991787882.UG.FTS.B,
29.49%,
2/06/24
..
62
51
991791590.UG.FTS.B,
29.49%,
2/06/24
..
129
131
991792802.UG.FTS.B,
29.49%,
2/06/24
..
755
768
991796474.UG.FTS.B,
29.49%,
2/06/24
..
23
23
991797851.UG.FTS.B,
29.49%,
2/06/24
..
65
66
991798948.UG.FTS.B,
29.49%,
2/06/24
..
192
45
991800867.UG.FTS.B,
29.49%,
2/06/24
..
41
41
991800876.UG.FTS.B,
29.49%,
2/06/24
..
34
34
991802395.UG.FTS.B,
29.49%,
2/06/24
..
203
206
991802450.UG.FTS.B,
29.49%,
2/06/24
..
208
210
991802472.UG.FTS.B,
29.49%,
2/06/24
..
43
43
991803366.UG.FTS.B,
29.49%,
2/06/24
..
168
170
991804272.UG.FTS.B,
29.49%,
2/06/24
..
79
79
991807744.UG.FTS.B,
29.49%,
2/06/24
..
80
81
991807972.UG.FTS.B,
29.49%,
2/06/24
..
558
567
991809220.UG.FTS.B,
29.49%,
2/06/24
..
89
88
991811603.UG.FTS.B,
29.49%,
2/06/24
..
99
99
991811852.UG.FTS.B,
29.49%,
2/06/24
..
32
32
991812453.UG.FTS.B,
29.49%,
2/06/24
..
136
137
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991815771.UG.FTS.B,
29.49%,
2/06/24
..
$
60
$
61
991820875.UG.FTS.B,
29.49%,
2/06/24
..
37
37
991821283.UG.FTS.B,
29.49%,
2/06/24
..
26
26
991821659.UG.FTS.B,
29.49%,
2/06/24
..
424
422
991824369.UG.FTS.B,
29.49%,
2/06/24
..
90
91
991825250.UG.FTS.B,
29.49%,
2/06/24
..
143
142
991834896.UG.FTS.B,
29.49%,
2/06/24
..
91
92
991835456.UG.FTS.B,
29.49%,
2/06/24
..
1,497
1,490
991838757.UG.FTS.B,
29.49%,
2/06/24
..
25
25
991841322.UG.FTS.B,
29.49%,
2/06/24
..
80
81
991843601.UG.FTS.B,
29.49%,
2/06/24
..
32
32
991845179.UG.FTS.B,
29.49%,
2/06/24
..
188
191
991847495.UG.FTS.B,
29.49%,
2/06/24
..
58
58
991847597.UG.FTS.B,
29.49%,
2/06/24
..
14
2
991847730.UG.FTS.B,
29.49%,
2/06/24
..
49
49
991848888.UG.FTS.B,
29.49%,
2/06/24
..
148
150
991851571.UG.FTS.B,
29.49%,
2/06/24
..
640
150
991854055.UG.FTS.B,
29.49%,
2/06/24
..
938
948
991854221.UG.FTS.B,
29.49%,
2/06/24
..
939
952
991857859.UG.FTS.B,
29.49%,
2/06/24
..
21
21
991863148.UG.FTS.B,
29.49%,
2/06/24
..
164
121
991863263.UG.FTS.B,
29.49%,
2/06/24
..
1,876
1,906
991863348.UG.FTS.B,
29.49%,
2/06/24
..
281
286
991864157.UG.FTS.B,
29.49%,
2/06/24
..
218
219
991864784.UG.FTS.B,
29.49%,
2/06/24
..
230
225
991864872.UG.FTS.B,
29.49%,
2/06/24
..
45
45
991865672.UG.FTS.B,
29.49%,
2/06/24
..
331
334
991867168.UG.FTS.B,
29.49%,
2/06/24
..
15
15
991867936.UG.FTS.B,
29.49%,
2/06/24
..
59
59
991868498.UG.FTS.B,
29.49%,
2/06/24
..
6
6
991868697.UG.FTS.B,
29.49%,
2/06/24
..
4
4
991872797.UG.FTS.B,
29.49%,
2/06/24
..
20
20
991876619.UG.FTS.B,
29.49%,
2/06/24
..
59
58
991877592.UG.FTS.B,
29.49%,
2/06/24
..
902
904
991879365.UG.FTS.B,
29.49%,
2/06/24
..
317
317
991879983.UG.FTS.B,
29.49%,
2/06/24
..
41
40
991882456.UG.FTS.B,
29.49%,
2/06/24
..
13
13
991891653.UG.FTS.B,
29.49%,
2/06/24
..
148
148
991894974.UG.FTS.B,
29.49%,
2/06/24
..
560
557
991895654.UG.FTS.B,
29.49%,
2/06/24
..
572
567
991896555.UG.FTS.B,
29.49%,
2/06/24
..
1,391
1,375
991898707.UG.FTS.B,
29.49%,
2/06/24
..
93
93
991902326.UG.FTS.B,
29.49%,
2/06/24
..
57
57
991903049.UG.FTS.B,
29.49%,
2/06/24
..
78
79
991903575.UG.FTS.B,
29.49%,
2/06/24
..
8
8
991903768.UG.FTS.B,
29.49%,
2/06/24
..
2,246
2,241
991904739.UG.FTS.B,
29.49%,
2/06/24
..
17
17
991906446.UG.FTS.B,
29.49%,
2/06/24
..
260
259
991908232.UG.FTS.B,
29.49%,
2/06/24
..
93
94
991908563.UG.FTS.B,
29.49%,
2/06/24
..
184
182
991909273.UG.FTS.B,
29.49%,
2/06/24
..
15
15
991913163.UG.FTS.B,
29.49%,
2/06/24
..
108
108
991916003.UG.FTS.B,
29.49%,
2/06/24
..
339
337
991917005.UG.FTS.B,
29.49%,
2/06/24
..
138
138
991919051.UG.FTS.B,
29.49%,
2/06/24
..
58
58
991920035.UG.FTS.B,
29.49%,
2/06/24
..
104
104
991921170.UG.FTS.B,
29.49%,
2/06/24
..
6
6
991922749.UG.FTS.B,
29.49%,
2/06/24
..
49
49
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991923870.UG.FTS.B,
29.49%,
2/06/24
..
$
300
$
225
991924889.UG.FTS.B,
29.49%,
2/06/24
..
18
18
991925585.UG.FTS.B,
29.49%,
2/06/24
..
281
283
991932100.UG.FTS.B,
29.49%,
2/06/24
..
51
52
991933341.UG.FTS.B,
29.49%,
2/06/24
..
92
91
991935855.UG.FTS.B,
29.49%,
2/06/24
..
51
51
991936718.UG.FTS.B,
29.49%,
2/06/24
..
32
33
991952896.UG.FTS.B,
17.49%,
2/07/24
..
923
939
991726829.UG.FTS.B,
18.47%,
2/07/24
..
257
262
991908299.UG.FTS.B,
18.47%,
2/07/24
..
93
94
991712054.UG.FTS.B,
18.48%,
2/07/24
..
39
40
991706085.UG.FTS.B,
18.71%,
2/07/24
..
18
18
991929945.UG.FTS.B,
18.71%,
2/07/24
..
62
63
991786711.UG.FTS.B,
19.3%,
2/07/24
...
6
6
991747268.UG.FTS.B,
19.96%,
2/07/24
..
200
203
991726610.UG.FTS.B,
19.99%,
2/07/24
..
3
3
991753959.UG.FTS.B,
19.99%,
2/07/24
..
92
92
991759455.UG.FTS.B,
19.99%,
2/07/24
..
373
374
991766916.UG.FTS.B,
19.99%,
2/07/24
..
17
17
991883358.UG.FTS.B,
19.99%,
2/07/24
..
18
1
991706118.UG.FTS.B,
20.47%,
2/07/24
..
80
81
991746536.UG.FTS.B,
20.47%,
2/07/24
..
480
489
991709348.UG.FTS.B,
20.96%,
2/07/24
..
545
556
991722216.UG.FTS.B,
20.96%,
2/07/24
..
183
187
991749666.UG.FTS.B,
20.96%,
2/07/24
..
179
182
991810606.UG.FTS.B,
20.96%,
2/07/24
..
2,246
2,295
991709699.UG.FTS.B,
21.48%,
2/07/24
..
54
16
991766296.UG.FTS.B,
21.48%,
2/07/24
..
262
267
991728476.UG.FTS.B,
22.45%,
2/07/24
..
460
469
991788399.UG.FTS.B,
22.45%,
2/07/24
..
144
147
991705944.UG.FTS.B,
22.47%,
2/07/24
..
999
1,016
991765791.UG.FTS.B,
22.47%,
2/07/24
..
185
188
991805714.UG.FTS.B,
22.47%,
2/07/24
..
95
97
991824365.UG.FTS.B,
22.47%,
2/07/24
..
157
160
991731634.UG.FTS.B,
23.45%,
2/07/24
..
220
223
991897674.UG.FTS.B,
23.45%,
2/07/24
..
144
145
991937198.UG.FTS.B,
24.45%,
2/07/24
..
424
427
991731317.UG.FTS.B,
25.45%,
2/07/24
..
47
48
991790087.UG.FTS.B,
25.45%,
2/07/24
..
623
625
991795146.UG.FTS.B,
25.45%,
2/07/24
..
331
337
991725466.UG.FTS.B,
26.44%,
2/07/24
..
53
16
991742610.UG.FTS.B,
26.44%,
2/07/24
..
46
47
991831112.UG.FTS.B,
26.44%,
2/07/24
..
198
14
991938133.UG.FTS.B,
27.99%,
2/07/24
..
75
75
991706634.UG.FTS.B,
28.48%,
2/07/24
..
929
214
991710705.UG.FTS.B,
28.48%,
2/07/24
..
46
47
991714808.UG.FTS.B,
28.48%,
2/07/24
..
76
77
991715422.UG.FTS.B,
28.48%,
2/07/24
..
10
10
991728554.UG.FTS.B,
28.48%,
2/07/24
..
298
299
991731295.UG.FTS.B,
28.48%,
2/07/24
..
0
0
991731457.UG.FTS.B,
28.48%,
2/07/24
..
474
483
991741108.UG.FTS.B,
28.48%,
2/07/24
..
827
191
991745000.UG.FTS.B,
28.48%,
2/07/24
..
172
171
991756153.UG.FTS.B,
28.48%,
2/07/24
..
196
196
991758069.UG.FTS.B,
28.48%,
2/07/24
..
593
598
991758575.UG.FTS.B,
28.48%,
2/07/24
..
36
36
991759844.UG.FTS.B,
28.48%,
2/07/24
..
88
90
991764700.UG.FTS.B,
28.48%,
2/07/24
..
105
107
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991778355.UG.FTS.B,
28.48%,
2/07/24
..
$
49
$
49
991799124.UG.FTS.B,
28.48%,
2/07/24
..
51
51
991803011.UG.FTS.B,
28.48%,
2/07/24
..
142
144
991804797.UG.FTS.B,
28.48%,
2/07/24
..
2
2
991815918.UG.FTS.B,
28.48%,
2/07/24
..
243
243
991818712.UG.FTS.B,
28.48%,
2/07/24
..
403
405
991822357.UG.FTS.B,
28.48%,
2/07/24
..
41
42
991850407.UG.FTS.B,
28.48%,
2/07/24
..
71
72
991860532.UG.FTS.B,
28.48%,
2/07/24
..
125
124
991917220.UG.FTS.B,
28.48%,
2/07/24
..
196
195
991930736.UG.FTS.B,
28.48%,
2/07/24
..
50
50
991707024.UG.FTS.B,
29.48%,
2/07/24
..
66
66
991707304.UG.FTS.B,
29.48%,
2/07/24
..
10
10
991709711.UG.FTS.B,
29.48%,
2/07/24
..
345
351
991710613.UG.FTS.B,
29.48%,
2/07/24
..
31
31
991711547.UG.FTS.B,
29.48%,
2/07/24
..
113
114
991715983.UG.FTS.B,
29.48%,
2/07/24
..
85
86
991717577.UG.FTS.B,
29.48%,
2/07/24
..
83
84
991728869.UG.FTS.B,
29.48%,
2/07/24
..
109
111
991729127.UG.FTS.B,
29.48%,
2/07/24
..
372
380
991731888.UG.FTS.B,
29.48%,
2/07/24
..
57
58
991734282.UG.FTS.B,
29.48%,
2/07/24
..
50
51
991736572.UG.FTS.B,
29.48%,
2/07/24
..
238
241
991739328.UG.FTS.B,
29.48%,
2/07/24
..
61
49
991742699.UG.FTS.B,
29.48%,
2/07/24
..
347
353
991751889.UG.FTS.B,
29.48%,
2/07/24
..
86
88
991758401.UG.FTS.B,
29.48%,
2/07/24
..
43
44
991760237.UG.FTS.B,
29.48%,
2/07/24
..
295
300
991761553.UG.FTS.B,
29.48%,
2/07/24
..
75
76
991769139.UG.FTS.B,
29.48%,
2/07/24
..
154
157
991789076.UG.FTS.B,
29.48%,
2/07/24
..
16
16
991797551.UG.FTS.B,
29.48%,
2/07/24
..
260
264
991799412.UG.FTS.B,
29.48%,
2/07/24
..
11
11
991803460.UG.FTS.B,
29.48%,
2/07/24
..
266
271
991810928.UG.FTS.B,
29.48%,
2/07/24
..
942
950
991813154.UG.FTS.B,
29.48%,
2/07/24
..
335
341
991819883.UG.FTS.B,
29.48%,
2/07/24
..
511
35
991824656.UG.FTS.B,
29.48%,
2/07/24
..
20
20
991840368.UG.FTS.B,
29.48%,
2/07/24
..
178
180
991923633.UG.FTS.B,
29.48%,
2/07/24
..
471
473
991705242.UG.FTS.B,
29.49%,
2/07/24
..
491
496
991705726.UG.FTS.B,
29.49%,
2/07/24
..
50
51
991705831.UG.FTS.B,
29.49%,
2/07/24
..
66
66
991705840.UG.FTS.B,
29.49%,
2/07/24
..
263
265
991707631.UG.FTS.B,
29.49%,
2/07/24
..
136
138
991707811.UG.FTS.B,
29.49%,
2/07/24
..
52
53
991708520.UG.FTS.B,
29.49%,
2/07/24
..
381
385
991709347.UG.FTS.B,
29.49%,
2/07/24
..
53
54
991709349.UG.FTS.B,
29.49%,
2/07/24
..
38
38
991709436.UG.FTS.B,
29.49%,
2/07/24
..
46
47
991709556.UG.FTS.B,
29.49%,
2/07/24
..
94
95
991710918.UG.FTS.B,
29.49%,
2/07/24
..
56
47
991711441.UG.FTS.B,
29.49%,
2/07/24
..
86
86
991711765.UG.FTS.B,
29.49%,
2/07/24
..
499
509
991712265.UG.FTS.B,
29.49%,
2/07/24
..
134
136
991712289.UG.FTS.B,
29.49%,
2/07/24
..
140
142
991712442.UG.FTS.B,
29.49%,
2/07/24
..
293
296
991712942.UG.FTS.B,
29.49%,
2/07/24
..
159
161
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
117
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991713532.UG.FTS.B,
29.49%,
2/07/24
..
$
39
$
39
991714110.UG.FTS.B,
29.49%,
2/07/24
..
169
172
991714291.UG.FTS.B,
29.49%,
2/07/24
..
43
43
991714530.UG.FTS.B,
29.49%,
2/07/24
..
155
157
991714622.UG.FTS.B,
29.49%,
2/07/24
..
1,248
1,262
991714627.UG.FTS.B,
29.49%,
2/07/24
..
261
266
991715143.UG.FTS.B,
29.49%,
2/07/24
..
13
13
991717559.UG.FTS.B,
29.49%,
2/07/24
..
103
105
991720763.UG.FTS.B,
29.49%,
2/07/24
..
238
241
991721981.UG.FTS.B,
29.49%,
2/07/24
..
143
145
991722386.UG.FTS.B,
29.49%,
2/07/24
..
143
145
991723169.UG.FTS.B,
29.49%,
2/07/24
..
197
47
991723256.UG.FTS.B,
29.49%,
2/07/24
..
29
29
991724085.UG.FTS.B,
29.49%,
2/07/24
..
220
224
991724317.UG.FTS.B,
29.49%,
2/07/24
..
131
130
991724940.UG.FTS.B,
29.49%,
2/07/24
..
421
428
991725077.UG.FTS.B,
29.49%,
2/07/24
..
59
60
991726224.UG.FTS.B,
29.49%,
2/07/24
..
7
7
991726634.UG.FTS.B,
29.49%,
2/07/24
..
301
302
991726842.UG.FTS.B,
29.49%,
2/07/24
..
116
118
991729154.UG.FTS.B,
29.49%,
2/07/24
..
589
598
991729259.UG.FTS.B,
29.49%,
2/07/24
..
285
289
991729859.UG.FTS.B,
29.49%,
2/07/24
..
470
471
991731671.UG.FTS.B,
29.49%,
2/07/24
..
54
53
991732311.UG.FTS.B,
29.49%,
2/07/24
..
91
91
991732502.UG.FTS.B,
29.49%,
2/07/24
..
190
192
991734122.UG.FTS.B,
29.49%,
2/07/24
..
45
45
991734419.UG.FTS.B,
29.49%,
2/07/24
..
133
135
991735127.UG.FTS.B,
29.49%,
2/07/24
..
27
27
991735481.UG.FTS.B,
29.49%,
2/07/24
..
104
104
991736007.UG.FTS.B,
29.49%,
2/07/24
..
152
150
991736235.UG.FTS.B,
29.49%,
2/07/24
..
105
104
991736257.UG.FTS.B,
29.49%,
2/07/24
..
199
201
991736904.UG.FTS.B,
29.49%,
2/07/24
..
81
20
991742022.UG.FTS.B,
29.49%,
2/07/24
..
211
215
991743504.UG.FTS.B,
29.49%,
2/07/24
..
447
31
991745332.UG.FTS.B,
29.49%,
2/07/24
..
18
18
991745483.UG.FTS.B,
29.49%,
2/07/24
..
635
639
991746695.UG.FTS.B,
29.49%,
2/07/24
..
107
107
991747730.UG.FTS.B,
29.49%,
2/07/24
..
353
357
991747763.UG.FTS.B,
29.49%,
2/07/24
..
113
115
991750233.UG.FTS.B,
29.49%,
2/07/24
..
241
186
991750279.UG.FTS.B,
29.49%,
2/07/24
..
43
43
991752944.UG.FTS.B,
29.49%,
2/07/24
..
40
40
991753589.UG.FTS.B,
29.49%,
2/07/24
..
15
15
991754760.UG.FTS.B,
29.49%,
2/07/24
..
110
110
991755183.UG.FTS.B,
29.49%,
2/07/24
..
97
99
991755560.UG.FTS.B,
29.49%,
2/07/24
..
17
17
991755836.UG.FTS.B,
29.49%,
2/07/24
..
80
11
991756174.UG.FTS.B,
29.49%,
2/07/24
..
318
323
991757757.UG.FTS.B,
29.49%,
2/07/24
..
97
99
991758636.UG.FTS.B,
29.49%,
2/07/24
..
54
54
991758864.UG.FTS.B,
29.49%,
2/07/24
..
210
210
991760583.UG.FTS.B,
29.49%,
2/07/24
..
264
265
991762212.UG.FTS.B,
29.49%,
2/07/24
..
630
631
991766456.UG.FTS.B,
29.49%,
2/07/24
..
126
127
991767246.UG.FTS.B,
29.49%,
2/07/24
..
137
139
991768200.UG.FTS.B,
29.49%,
2/07/24
..
29
29
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991768735.UG.FTS.B,
29.49%,
2/07/24
..
$
1,285
$
1,280
991772407.UG.FTS.B,
29.49%,
2/07/24
..
84
86
991775214.UG.FTS.B,
29.49%,
2/07/24
..
38
38
991776560.UG.FTS.B,
29.49%,
2/07/24
..
52
52
991776930.UG.FTS.B,
29.49%,
2/07/24
..
132
131
991779526.UG.FTS.B,
29.49%,
2/07/24
..
92
93
991779533.UG.FTS.B,
29.49%,
2/07/24
..
31
32
991780524.UG.FTS.B,
29.49%,
2/07/24
..
150
151
991781431.UG.FTS.B,
29.49%,
2/07/24
..
52
52
991781548.UG.FTS.B,
29.49%,
2/07/24
..
737
552
991782258.UG.FTS.B,
29.49%,
2/07/24
..
1,792
1,822
991782377.UG.FTS.B,
29.49%,
2/07/24
..
94
96
991786276.UG.FTS.B,
29.49%,
2/07/24
..
513
517
991787046.UG.FTS.B,
29.49%,
2/07/24
..
71
72
991787787.UG.FTS.B,
29.49%,
2/07/24
..
43
43
991788484.UG.FTS.B,
29.49%,
2/07/24
..
65
66
991794751.UG.FTS.B,
29.49%,
2/07/24
..
248
251
991795789.UG.FTS.B,
29.49%,
2/07/24
..
172
174
991799311.UG.FTS.B,
29.49%,
2/07/24
..
37
38
991800270.UG.FTS.B,
29.49%,
2/07/24
..
20
20
991802071.UG.FTS.B,
29.49%,
2/07/24
..
236
240
991803214.UG.FTS.B,
29.49%,
2/07/24
..
88
89
991804746.UG.FTS.B,
29.49%,
2/07/24
..
74
74
991805956.UG.FTS.B,
29.49%,
2/07/24
..
30
30
991813759.UG.FTS.B,
29.49%,
2/07/24
..
110
110
991814041.UG.FTS.B,
29.49%,
2/07/24
..
62
62
991814326.UG.FTS.B,
29.49%,
2/07/24
..
19
9
991814879.UG.FTS.B,
29.49%,
2/07/24
..
50
51
991815143.UG.FTS.B,
29.49%,
2/07/24
..
72
73
991817194.UG.FTS.B,
29.49%,
2/07/24
..
107
109
991817987.UG.FTS.B,
29.49%,
2/07/24
..
93
95
991822013.UG.FTS.B,
29.49%,
2/07/24
..
164
165
991823863.UG.FTS.B,
29.49%,
2/07/24
..
60
61
991823909.UG.FTS.B,
29.49%,
2/07/24
..
97
98
991826644.UG.FTS.B,
29.49%,
2/07/24
..
49
49
991828058.UG.FTS.B,
29.49%,
2/07/24
..
18
17
991829590.UG.FTS.B,
29.49%,
2/07/24
..
22
22
991833748.UG.FTS.B,
29.49%,
2/07/24
..
1,729
1,753
991835130.UG.FTS.B,
29.49%,
2/07/24
..
141
143
991838231.UG.FTS.B,
29.49%,
2/07/24
..
76
77
991838362.UG.FTS.B,
29.49%,
2/07/24
..
195
197
991839999.UG.FTS.B,
29.49%,
2/07/24
..
90
91
991840310.UG.FTS.B,
29.49%,
2/07/24
..
271
273
991842041.UG.FTS.B,
29.49%,
2/07/24
..
118
120
991844653.UG.FTS.B,
29.49%,
2/07/24
..
447
454
991845454.UG.FTS.B,
29.49%,
2/07/24
..
678
685
991846751.UG.FTS.B,
29.49%,
2/07/24
..
51
52
991847271.UG.FTS.B,
29.49%,
2/07/24
..
2
2
991847296.UG.FTS.B,
29.49%,
2/07/24
..
461
458
991849970.UG.FTS.B,
29.49%,
2/07/24
..
77
78
991850440.UG.FTS.B,
29.49%,
2/07/24
..
205
208
991852099.UG.FTS.B,
29.49%,
2/07/24
..
85
85
991852247.UG.FTS.B,
29.49%,
2/07/24
..
774
773
991852683.UG.FTS.B,
29.49%,
2/07/24
..
166
168
991852938.UG.FTS.B,
29.49%,
2/07/24
..
32
32
991858699.UG.FTS.B,
29.49%,
2/07/24
..
43
43
991860170.UG.FTS.B,
29.49%,
2/07/24
..
379
385
991860524.UG.FTS.B,
29.49%,
2/07/24
..
511
512
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991860697.UG.FTS.B,
29.49%,
2/07/24
..
$
46
$
47
991862617.UG.FTS.B,
29.49%,
2/07/24
..
29
29
991866154.UG.FTS.B,
29.49%,
2/07/24
..
92
69
991871627.UG.FTS.B,
29.49%,
2/07/24
..
316
316
991874547.UG.FTS.B,
29.49%,
2/07/24
..
83
84
991875785.UG.FTS.B,
29.49%,
2/07/24
..
13
13
991877124.UG.FTS.B,
29.49%,
2/07/24
..
104
24
991878209.UG.FTS.B,
29.49%,
2/07/24
..
13
13
991878603.UG.FTS.B,
29.49%,
2/07/24
..
36
36
991881568.UG.FTS.B,
29.49%,
2/07/24
..
289
293
991883582.UG.FTS.B,
29.49%,
2/07/24
..
47
47
991884351.UG.FTS.B,
29.49%,
2/07/24
..
70
71
991886611.UG.FTS.B,
29.49%,
2/07/24
..
113
113
991889120.UG.FTS.B,
29.49%,
2/07/24
..
291
291
991895135.UG.FTS.B,
29.49%,
2/07/24
..
129
129
991895535.UG.FTS.B,
29.49%,
2/07/24
..
277
275
991897062.UG.FTS.B,
29.49%,
2/07/24
..
68
69
991897574.UG.FTS.B,
29.49%,
2/07/24
..
2,105
2,111
991906492.UG.FTS.B,
29.49%,
2/07/24
..
17
17
991907860.UG.FTS.B,
29.49%,
2/07/24
..
140
141
991911201.UG.FTS.B,
29.49%,
2/07/24
..
432
429
991911466.UG.FTS.B,
29.49%,
2/07/24
..
15
15
991916558.UG.FTS.B,
29.49%,
2/07/24
..
47
48
991918742.UG.FTS.B,
29.49%,
2/07/24
..
140
141
991918817.UG.FTS.B,
29.49%,
2/07/24
..
133
132
991920447.UG.FTS.B,
29.49%,
2/07/24
..
79
80
991920714.UG.FTS.B,
29.49%,
2/07/24
..
138
138
991922620.UG.FTS.B,
29.49%,
2/07/24
..
19
18
991927650.UG.FTS.B,
29.49%,
2/07/24
..
97
72
991928006.UG.FTS.B,
29.49%,
2/07/24
..
93
94
991928452.UG.FTS.B,
29.49%,
2/07/24
..
63
63
991931612.UG.FTS.B,
29.49%,
2/07/24
..
18
18
991933297.UG.FTS.B,
29.49%,
2/07/24
..
27
4
991934345.UG.FTS.B,
29.49%,
2/07/24
..
37
37
991935865.UG.FTS.B,
29.49%,
2/07/24
..
33
34
991888412.UG.FTS.B,
14.48%,
2/09/24
..
113
77
991786830.UG.FTS.B,
15.47%,
2/09/24
..
44
45
991864002.UG.FTS.B,
15.49%,
2/09/24
..
56
17
991734323.UG.FTS.B,
16.49%,
2/09/24
..
222
228
991766506.UG.FTS.B,
17.49%,
2/09/24
..
93
94
991863681.UG.FTS.B,
29.49%,
4/07/24
..
546
418
991487037.UG.FTS.B,
14.98%,
1/13/25
..
1,713
1,758
991499314.UG.FTS.B,
16.99%,
1/14/25
..
407
418
991506497.UG.FTS.B,
15%,
1/15/25
.....
725
729
991508732.UG.FTS.B,
16.99%,
1/15/25
..
1,600
298
991511409.UG.FTS.B,
16.99%,
1/15/25
..
423
432
991512643.UG.FTS.B,
16.99%,
1/15/25
..
2,028
2,075
991507886.UG.FTS.B,
17.99%,
1/15/25
..
177
181
991514741.UG.FTS.B,
17.99%,
1/15/25
..
4,345
4,459
991516410.UG.FTS.B,
14.98%,
1/16/25
..
69
70
991515511.UG.FTS.B,
16.99%,
1/16/25
..
179
184
991516515.UG.FTS.B,
17.99%,
1/16/25
..
534
539
991534259.UG.FTS.B,
19.99%,
1/18/25
..
2,501
2,566
991540248.UG.FTS.B,
19.99%,
1/18/25
..
256
254
991542919.UG.FTS.B,
19.99%,
1/18/25
..
527
540
991543349.UG.FTS.B,
19.99%,
1/18/25
..
1,198
1,226
991569157.UG.FTS.B,
19.99%,
1/18/25
..
163
165
991596625.UG.FTS.B,
19.99%,
1/18/25
..
326
329
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991613831.UG.FTS.B,
19.99%,
1/18/25
..
$
384
$
394
991670994.UG.FTS.B,
19.99%,
1/18/25
..
35
35
991738583.UG.FTS.B,
19.99%,
1/18/25
..
166
169
991741235.UG.FTS.B,
19.99%,
1/18/25
..
80
82
991745136.UG.FTS.B,
19.99%,
1/18/25
..
82
84
991764285.UG.FTS.B,
19.99%,
1/18/25
..
247
251
991535930.UG.FTS.B,
27.95%,
1/18/25
..
1,942
1,990
991541397.UG.FTS.B,
27.95%,
1/18/25
..
322
322
991553396.UG.FTS.B,
27.99%,
1/18/25
..
232
233
991536073.UG.FTS.B,
28.98%,
1/18/25
..
188
190
991537321.UG.FTS.B,
28.98%,
1/18/25
..
389
389
991538559.UG.FTS.B,
28.98%,
1/18/25
..
112
112
991541578.UG.FTS.B,
28.98%,
1/18/25
..
89
91
991541730.UG.FTS.B,
28.98%,
1/18/25
..
1,335
1,354
991543847.UG.FTS.B,
28.98%,
1/18/25
..
139
140
991547864.UG.FTS.B,
28.98%,
1/18/25
..
751
769
991548072.UG.FTS.B,
28.98%,
1/18/25
..
1,376
1,395
991553822.UG.FTS.B,
28.98%,
1/18/25
..
493
505
991560549.UG.FTS.B,
28.98%,
1/18/25
..
17
17
991563160.UG.FTS.B,
28.98%,
1/18/25
..
96
98
991564531.UG.FTS.B,
28.98%,
1/18/25
..
895
900
991567254.UG.FTS.B,
28.98%,
1/18/25
..
1,535
1,554
991571658.UG.FTS.B,
28.98%,
1/18/25
..
171
175
991578090.UG.FTS.B,
28.98%,
1/18/25
..
126
127
991586801.UG.FTS.B,
28.98%,
1/18/25
..
242
245
991592026.UG.FTS.B,
28.98%,
1/18/25
..
211
216
991605601.UG.FTS.B,
28.98%,
1/18/25
..
164
164
991625562.UG.FTS.B,
28.98%,
1/18/25
..
95
97
991633024.UG.FTS.B,
28.98%,
1/18/25
..
468
475
991643127.UG.FTS.B,
28.98%,
1/18/25
..
193
195
991643598.UG.FTS.B,
28.98%,
1/18/25
..
169
173
991644065.UG.FTS.B,
28.98%,
1/18/25
..
878
891
991646974.UG.FTS.B,
28.98%,
1/18/25
..
218
222
991660042.UG.FTS.B,
28.98%,
1/18/25
..
199
202
991662279.UG.FTS.B,
28.98%,
1/18/25
..
127
129
991668582.UG.FTS.B,
28.98%,
1/18/25
..
374
380
991669237.UG.FTS.B,
28.98%,
1/18/25
..
95
97
991709695.UG.FTS.B,
28.98%,
1/18/25
..
502
509
991727934.UG.FTS.B,
28.98%,
1/18/25
..
329
42
991734107.UG.FTS.B,
28.98%,
1/18/25
..
75
76
991767339.UG.FTS.B,
28.98%,
1/18/25
..
61
63
991769882.UG.FTS.B,
28.98%,
1/18/25
..
8
8
991770623.UG.FTS.B,
28.98%,
1/18/25
..
839
851
991640372.UG.FTS.B,
29.45%,
1/18/25
..
627
636
991757891.UG.FTS.B,
29.45%,
1/18/25
..
84
83
991766780.UG.FTS.B,
29.45%,
1/18/25
..
163
165
991534976.UG.FTS.B,
29.46%,
1/18/25
..
1,378
1,404
991554221.UG.FTS.B,
29.46%,
1/18/25
..
2,907
2,928
991554391.UG.FTS.B,
29.46%,
1/18/25
..
636
640
991629920.UG.FTS.B,
29.46%,
1/18/25
..
104
104
991662485.UG.FTS.B,
29.46%,
1/18/25
..
956
948
991670069.UG.FTS.B,
29.46%,
1/18/25
..
594
608
991567035.UG.FTS.B,
29.48%,
1/18/25
..
616
630
991534418.UG.FTS.B,
29.49%,
1/18/25
..
165
21
991534713.UG.FTS.B,
29.49%,
1/18/25
..
412
420
991535459.UG.FTS.B,
29.49%,
1/18/25
..
259
264
991535708.UG.FTS.B,
29.49%,
1/18/25
..
140
141
991536072.UG.FTS.B,
29.49%,
1/18/25
..
483
494
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
119
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991536876.UG.FTS.B,
29.49%,
1/18/25
..
$
303
$
306
991536929.UG.FTS.B,
29.49%,
1/18/25
..
1,476
1,486
991537021.UG.FTS.B,
29.49%,
1/18/25
..
191
195
991538752.UG.FTS.B,
29.49%,
1/18/25
..
41
42
991540546.UG.FTS.B,
29.49%,
1/18/25
..
112
114
991540582.UG.FTS.B,
29.49%,
1/18/25
..
2,457
2,516
991540673.UG.FTS.B,
29.49%,
1/18/25
..
228
233
991541260.UG.FTS.B,
29.49%,
1/18/25
..
105
72
991541273.UG.FTS.B,
29.49%,
1/18/25
..
175
179
991542221.UG.FTS.B,
29.49%,
1/18/25
..
270
277
991542253.UG.FTS.B,
29.49%,
1/18/25
..
402
407
991543638.UG.FTS.B,
29.49%,
1/18/25
..
151
153
991543705.UG.FTS.B,
29.49%,
1/18/25
..
63
63
991544799.UG.FTS.B,
29.49%,
1/18/25
..
264
265
991545277.UG.FTS.B,
29.49%,
1/18/25
..
394
404
991545704.UG.FTS.B,
29.49%,
1/18/25
..
427
428
991546622.UG.FTS.B,
29.49%,
1/18/25
..
1,168
1,196
991547229.UG.FTS.B,
29.49%,
1/18/25
..
478
488
991547666.UG.FTS.B,
29.49%,
1/18/25
..
4
4
991555804.UG.FTS.B,
29.49%,
1/18/25
..
88
89
991556476.UG.FTS.B,
29.49%,
1/18/25
..
743
755
991560367.UG.FTS.B,
29.49%,
1/18/25
..
599
607
991563121.UG.FTS.B,
29.49%,
1/18/25
..
1,118
1,144
991563278.UG.FTS.B,
29.49%,
1/18/25
..
232
237
991568797.UG.FTS.B,
29.49%,
1/18/25
..
138
140
991575618.UG.FTS.B,
29.49%,
1/18/25
..
82
81
991576670.UG.FTS.B,
29.49%,
1/18/25
..
235
232
991577286.UG.FTS.B,
29.49%,
1/18/25
..
626
638
991580004.UG.FTS.B,
29.49%,
1/18/25
..
122
125
991584589.UG.FTS.B,
29.49%,
1/18/25
..
291
290
991598582.UG.FTS.B,
29.49%,
1/18/25
..
705
721
991608770.UG.FTS.B,
29.49%,
1/18/25
..
228
230
991612123.UG.FTS.B,
29.49%,
1/18/25
..
40
40
991620966.UG.FTS.B,
29.49%,
1/18/25
..
1,201
1,217
991624817.UG.FTS.B,
29.49%,
1/18/25
..
278
280
991636748.UG.FTS.B,
29.49%,
1/18/25
..
865
870
991637270.UG.FTS.B,
29.49%,
1/18/25
..
90
92
991641889.UG.FTS.B,
29.49%,
1/18/25
..
234
237
991654762.UG.FTS.B,
29.49%,
1/18/25
..
272
268
991692788.UG.FTS.B,
29.49%,
1/18/25
..
86
88
991703279.UG.FTS.B,
29.49%,
1/18/25
..
20
20
991705157.UG.FTS.B,
29.49%,
1/18/25
..
227
230
991708596.UG.FTS.B,
29.49%,
1/18/25
..
158
156
991757569.UG.FTS.B,
29.49%,
1/18/25
..
274
271
991757664.UG.FTS.B,
29.49%,
1/18/25
..
82
83
991758098.UG.FTS.B,
29.49%,
1/18/25
..
172
174
991764724.UG.FTS.B,
29.49%,
1/18/25
..
20
21
991765922.UG.FTS.B,
29.49%,
1/18/25
..
85
87
991765962.UG.FTS.B,
29.49%,
1/18/25
..
102
104
991766828.UG.FTS.B,
29.49%,
1/18/25
..
182
184
991767260.UG.FTS.B,
29.49%,
1/18/25
..
4
4
991768700.UG.FTS.B,
29.49%,
1/18/25
..
261
261
991768927.UG.FTS.B,
29.49%,
1/18/25
..
57
57
991770051.UG.FTS.B,
29.49%,
1/18/25
..
53
54
991771306.UG.FTS.B,
29.49%,
1/18/25
..
403
408
991613322.UG.FTS.B,
29.99%,
1/18/25
..
232
238
991664635.UG.FTS.B,
18.97%,
1/19/25
..
247
248
991713909.UG.FTS.B,
18.97%,
1/19/25
..
295
300
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991547598.UG.FTS.B,
19.99%,
1/19/25
..
$
162
$
166
991553350.UG.FTS.B,
19.99%,
1/19/25
..
97
99
991556775.UG.FTS.B,
19.99%,
1/19/25
..
135
138
991558621.UG.FTS.B,
19.99%,
1/19/25
..
196
202
991577932.UG.FTS.B,
19.99%,
1/19/25
..
412
423
991593524.UG.FTS.B,
19.99%,
1/19/25
..
150
153
991610154.UG.FTS.B,
19.99%,
1/19/25
..
751
771
991615796.UG.FTS.B,
19.99%,
1/19/25
..
233
239
991617879.UG.FTS.B,
19.99%,
1/19/25
..
1,535
1,575
991640553.UG.FTS.B,
19.99%,
1/19/25
..
818
831
991650417.UG.FTS.B,
19.99%,
1/19/25
..
280
284
991706987.UG.FTS.B,
19.99%,
1/19/25
..
851
864
991713026.UG.FTS.B,
19.99%,
1/19/25
..
285
289
991713921.UG.FTS.B,
19.99%,
1/19/25
..
27
26
991720021.UG.FTS.B,
19.99%,
1/19/25
..
1,414
1,438
991729446.UG.FTS.B,
19.99%,
1/19/25
..
352
357
991764139.UG.FTS.B,
19.99%,
1/19/25
..
83
85
991766471.UG.FTS.B,
19.99%,
1/19/25
..
282
281
991774110.UG.FTS.B,
19.99%,
1/19/25
..
177
180
991698886.UG.FTS.B,
21.46%,
1/19/25
..
303
305
991775067.UG.FTS.B,
21.98%,
1/19/25
..
186
189
991690575.UG.FTS.B,
25.95%,
1/19/25
..
527
534
991777867.UG.FTS.B,
25.95%,
1/19/25
..
92
93
991781117.UG.FTS.B,
25.95%,
1/19/25
..
544
548
991775187.UG.FTS.B,
26.94%,
1/19/25
..
656
660
991570838.UG.FTS.B,
27.99%,
1/19/25
..
270
277
991721533.UG.FTS.B,
27.99%,
1/19/25
..
51
50
991772919.UG.FTS.B,
27.99%,
1/19/25
..
188
190
991779529.UG.FTS.B,
27.99%,
1/19/25
..
388
394
991542213.UG.FTS.B,
28.98%,
1/19/25
..
95
97
991542800.UG.FTS.B,
28.98%,
1/19/25
..
1,075
1,114
991544331.UG.FTS.B,
28.98%,
1/19/25
..
680
689
991547565.UG.FTS.B,
28.98%,
1/19/25
..
186
188
991555993.UG.FTS.B,
28.98%,
1/19/25
..
31
32
991556346.UG.FTS.B,
28.98%,
1/19/25
..
240
246
991561483.UG.FTS.B,
28.98%,
1/19/25
..
63
63
991580509.UG.FTS.B,
28.98%,
1/19/25
..
9
9
991580652.UG.FTS.B,
28.98%,
1/19/25
..
117
119
991581396.UG.FTS.B,
28.98%,
1/19/25
..
947
971
991607962.UG.FTS.B,
28.98%,
1/19/25
..
138
142
991652010.UG.FTS.B,
28.98%,
1/19/25
..
367
371
991655625.UG.FTS.B,
28.98%,
1/19/25
..
242
249
991669072.UG.FTS.B,
28.98%,
1/19/25
..
282
286
991669843.UG.FTS.B,
28.98%,
1/19/25
..
159
161
991680250.UG.FTS.B,
28.98%,
1/19/25
..
471
478
991681134.UG.FTS.B,
28.98%,
1/19/25
..
154
157
991684419.UG.FTS.B,
28.98%,
1/19/25
..
752
764
991688747.UG.FTS.B,
28.98%,
1/19/25
..
118
119
991689404.UG.FTS.B,
28.98%,
1/19/25
..
206
208
991694508.UG.FTS.B,
28.98%,
1/19/25
..
315
320
991694833.UG.FTS.B,
28.98%,
1/19/25
..
217
216
991698089.UG.FTS.B,
28.98%,
1/19/25
..
171
174
991707908.UG.FTS.B,
28.98%,
1/19/25
..
191
192
991717310.UG.FTS.B,
28.98%,
1/19/25
..
56
55
991729327.UG.FTS.B,
28.98%,
1/19/25
..
136
138
991734745.UG.FTS.B,
28.98%,
1/19/25
..
448
454
991738232.UG.FTS.B,
28.98%,
1/19/25
..
62
63
991743451.UG.FTS.B,
28.98%,
1/19/25
..
96
98
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991746200.UG.FTS.B,
28.98%,
1/19/25
..
$
511
$
519
991746728.UG.FTS.B,
28.98%,
1/19/25
..
111
113
991747421.UG.FTS.B,
28.98%,
1/19/25
..
82
84
991747495.UG.FTS.B,
28.98%,
1/19/25
..
92
93
991748030.UG.FTS.B,
28.98%,
1/19/25
..
151
154
991750526.UG.FTS.B,
28.98%,
1/19/25
..
663
673
991760907.UG.FTS.B,
28.98%,
1/19/25
..
299
304
991762526.UG.FTS.B,
28.98%,
1/19/25
..
477
483
991764374.UG.FTS.B,
28.98%,
1/19/25
..
27
28
991764450.UG.FTS.B,
28.98%,
1/19/25
..
65
66
991768667.UG.FTS.B,
28.98%,
1/19/25
..
19
19
991769263.UG.FTS.B,
28.98%,
1/19/25
..
8
8
991770244.UG.FTS.B,
28.98%,
1/19/25
..
630
639
991771314.UG.FTS.B,
28.98%,
1/19/25
..
42
36
991771984.UG.FTS.B,
28.98%,
1/19/25
..
751
762
991775019.UG.FTS.B,
28.98%,
1/19/25
..
469
476
991778450.UG.FTS.B,
28.98%,
1/19/25
..
90
92
991783038.UG.FTS.B,
28.98%,
1/19/25
..
542
549
991783620.UG.FTS.B,
28.98%,
1/19/25
..
375
381
991784176.UG.FTS.B,
28.98%,
1/19/25
..
355
359
991616379.UG.FTS.B,
29.45%,
1/19/25
..
335
335
991541493.UG.FTS.B,
29.46%,
1/19/25
..
701
698
991543182.UG.FTS.B,
29.46%,
1/19/25
..
1,174
1,202
991546906.UG.FTS.B,
29.46%,
1/19/25
..
167
166
991547157.UG.FTS.B,
29.46%,
1/19/25
..
1,255
1,285
991550875.UG.FTS.B,
29.47%,
1/19/25
..
1,920
1,964
991678239.UG.FTS.B,
29.47%,
1/19/25
..
176
177
991767247.UG.FTS.B,
29.47%,
1/19/25
..
589
595
991551878.UG.FTS.B,
29.48%,
1/19/25
..
1,159
1,149
991662418.UG.FTS.B,
29.48%,
1/19/25
..
50
51
991681269.UG.FTS.B,
29.48%,
1/19/25
..
222
224
991541636.UG.FTS.B,
29.49%,
1/19/25
..
31
31
991542015.UG.FTS.B,
29.49%,
1/19/25
..
408
415
991543258.UG.FTS.B,
29.49%,
1/19/25
..
729
724
991545568.UG.FTS.B,
29.49%,
1/19/25
..
1,401
1,429
991546526.UG.FTS.B,
29.49%,
1/19/25
..
238
242
991547193.UG.FTS.B,
29.49%,
1/19/25
..
171
175
991547514.UG.FTS.B,
29.49%,
1/19/25
..
396
405
991547744.UG.FTS.B,
29.49%,
1/19/25
..
186
123
991547832.UG.FTS.B,
29.49%,
1/19/25
..
336
344
991548296.UG.FTS.B,
29.49%,
1/19/25
..
215
220
991550517.UG.FTS.B,
29.49%,
1/19/25
..
87
90
991553192.UG.FTS.B,
29.49%,
1/19/25
..
–
–
991553195.UG.FTS.B,
29.49%,
1/19/25
..
42
43
991556769.UG.FTS.B,
29.49%,
1/19/25
..
172
175
991557306.UG.FTS.B,
29.49%,
1/19/25
..
865
884
991559196.UG.FTS.B,
29.49%,
1/19/25
..
2,449
2,462
991563658.UG.FTS.B,
29.49%,
1/19/25
..
1,067
1,074
991567374.UG.FTS.B,
29.49%,
1/19/25
..
89
90
991567620.UG.FTS.B,
29.49%,
1/19/25
..
366
367
991569855.UG.FTS.B,
29.49%,
1/19/25
..
206
205
991571908.UG.FTS.B,
29.49%,
1/19/25
..
166
167
991572593.UG.FTS.B,
29.49%,
1/19/25
..
610
625
991575387.UG.FTS.B,
29.49%,
1/19/25
..
248
254
991577028.UG.FTS.B,
29.49%,
1/19/25
..
184
182
991579317.UG.FTS.B,
29.49%,
1/19/25
..
209
213
991587154.UG.FTS.B,
29.49%,
1/19/25
..
236
237
991587244.UG.FTS.B,
29.49%,
1/19/25
..
186
190
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991589283.UG.FTS.B,
29.49%,
1/19/25
..
$
761
$
779
991589395.UG.FTS.B,
29.49%,
1/19/25
..
527
530
991590614.UG.FTS.B,
29.49%,
1/19/25
..
282
288
991616062.UG.FTS.B,
29.49%,
1/19/25
..
500
491
991624460.UG.FTS.B,
29.49%,
1/19/25
..
214
219
991631516.UG.FTS.B,
29.49%,
1/19/25
..
305
308
991647737.UG.FTS.B,
29.49%,
1/19/25
..
145
146
991662152.UG.FTS.B,
29.49%,
1/19/25
..
20
20
991663931.UG.FTS.B,
29.49%,
1/19/25
..
45
46
991666296.UG.FTS.B,
29.49%,
1/19/25
..
220
221
991668851.UG.FTS.B,
29.49%,
1/19/25
..
119
122
991669943.UG.FTS.B,
29.49%,
1/19/25
..
41
42
991672459.UG.FTS.B,
29.49%,
1/19/25
..
59
60
991676239.UG.FTS.B,
29.49%,
1/19/25
..
1,029
1,042
991684554.UG.FTS.B,
29.49%,
1/19/25
..
54
55
991688411.UG.FTS.B,
29.49%,
1/19/25
..
147
149
991693042.UG.FTS.B,
29.49%,
1/19/25
..
368
374
991698039.UG.FTS.B,
29.49%,
1/19/25
..
227
228
991700162.UG.FTS.B,
29.49%,
1/19/25
..
352
357
991701083.UG.FTS.B,
29.49%,
1/19/25
..
224
226
991710813.UG.FTS.B,
29.49%,
1/19/25
..
93
94
991719174.UG.FTS.B,
29.49%,
1/19/25
..
1,882
1,901
991721177.UG.FTS.B,
29.49%,
1/19/25
..
261
257
991721350.UG.FTS.B,
29.49%,
1/19/25
..
2,351
2,365
991728271.UG.FTS.B,
29.49%,
1/19/25
..
1,238
1,250
991732729.UG.FTS.B,
29.49%,
1/19/25
..
557
559
991741346.UG.FTS.B,
29.49%,
1/19/25
..
97
98
991742324.UG.FTS.B,
29.49%,
1/19/25
..
42
43
991755764.UG.FTS.B,
29.49%,
1/19/25
..
66
67
991764318.UG.FTS.B,
29.49%,
1/19/25
..
93
95
991765074.UG.FTS.B,
29.49%,
1/19/25
..
21
20
991765926.UG.FTS.B,
29.49%,
1/19/25
..
63
64
991766229.UG.FTS.B,
29.49%,
1/19/25
..
194
197
991767220.UG.FTS.B,
29.49%,
1/19/25
..
65
66
991768029.UG.FTS.B,
29.49%,
1/19/25
..
14
14
991769796.UG.FTS.B,
29.49%,
1/19/25
..
146
148
991770237.UG.FTS.B,
29.49%,
1/19/25
..
2
2
991771466.UG.FTS.B,
29.49%,
1/19/25
..
188
189
991771666.UG.FTS.B,
29.49%,
1/19/25
..
469
470
991772043.UG.FTS.B,
29.49%,
1/19/25
..
108
111
991772473.UG.FTS.B,
29.49%,
1/19/25
..
540
547
991773161.UG.FTS.B,
29.49%,
1/19/25
..
469
476
991773464.UG.FTS.B,
29.49%,
1/19/25
..
263
35
991773734.UG.FTS.B,
29.49%,
1/19/25
..
70
71
991773773.UG.FTS.B,
29.49%,
1/19/25
..
376
381
991774686.UG.FTS.B,
29.49%,
1/19/25
..
939
951
991776470.UG.FTS.B,
29.49%,
1/19/25
..
41
42
991776874.UG.FTS.B,
29.49%,
1/19/25
..
14
14
991778366.UG.FTS.B,
29.49%,
1/19/25
..
28
28
991780141.UG.FTS.B,
29.49%,
1/19/25
..
85
86
991782580.UG.FTS.B,
29.49%,
1/19/25
..
113
114
991783428.UG.FTS.B,
29.49%,
1/19/25
..
1,876
1,904
991783464.UG.FTS.B,
29.49%,
1/19/25
..
1,846
1,834
991783562.UG.FTS.B,
29.49%,
1/19/25
..
656
664
991784214.UG.FTS.B,
29.49%,
1/19/25
..
5,455
5,460
991613801.UG.FTS.B,
Zero
Cpn,
1/20/25
.
2,221
2,308
991641940.UG.FTS.B,
Zero
Cpn,
1/20/25
.
923
959
991787423.UG.FTS.B,
14.98%,
1/20/25
..
726
734
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
121
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991564814.UG.FTS.B,
16.99%,
1/20/25
..
$
925
$
949
991546373.UG.FTS.B,
19.99%,
1/20/25
..
112
113
991546444.UG.FTS.B,
19.99%,
1/20/25
..
42
42
991547018.UG.FTS.B,
19.99%,
1/20/25
..
170
174
991550110.UG.FTS.B,
19.99%,
1/20/25
..
379
389
991550463.UG.FTS.B,
19.99%,
1/20/25
..
1,894
1,944
991551168.UG.FTS.B,
19.99%,
1/20/25
..
2,273
2,326
991553785.UG.FTS.B,
19.99%,
1/20/25
..
248
252
991553870.UG.FTS.B,
19.99%,
1/20/25
..
67
68
991556459.UG.FTS.B,
19.99%,
1/20/25
..
529
543
991558664.UG.FTS.B,
19.99%,
1/20/25
..
441
448
991560098.UG.FTS.B,
19.99%,
1/20/25
..
210
216
991561880.UG.FTS.B,
19.99%,
1/20/25
..
49
50
991562687.UG.FTS.B,
19.99%,
1/20/25
..
138
11
991563863.UG.FTS.B,
19.99%,
1/20/25
..
390
396
991567021.UG.FTS.B,
19.99%,
1/20/25
..
519
533
991569516.UG.FTS.B,
19.99%,
1/20/25
..
1,092
1,120
991570292.UG.FTS.B,
19.99%,
1/20/25
..
5
5
991571519.UG.FTS.B,
19.99%,
1/20/25
..
146
146
991575551.UG.FTS.B,
19.99%,
1/20/25
..
1,276
1,309
991575610.UG.FTS.B,
19.99%,
1/20/25
..
2,753
2,760
991575708.UG.FTS.B,
19.99%,
1/20/25
..
197
201
991579043.UG.FTS.B,
19.99%,
1/20/25
..
2,935
3,005
991579154.UG.FTS.B,
19.99%,
1/20/25
..
193
198
991579762.UG.FTS.B,
19.99%,
1/20/25
..
306
313
991579907.UG.FTS.B,
19.99%,
1/20/25
..
316
321
991580041.UG.FTS.B,
19.99%,
1/20/25
..
427
436
991580804.UG.FTS.B,
19.99%,
1/20/25
..
186
185
991580969.UG.FTS.B,
19.99%,
1/20/25
..
1,491
1,530
991586791.UG.FTS.B,
19.99%,
1/20/25
..
303
311
991589726.UG.FTS.B,
19.99%,
1/20/25
..
79
81
991591112.UG.FTS.B,
19.99%,
1/20/25
..
369
378
991592818.UG.FTS.B,
19.99%,
1/20/25
..
62
63
991594976.UG.FTS.B,
19.99%,
1/20/25
..
1,214
1,209
991596495.UG.FTS.B,
19.99%,
1/20/25
..
157
161
991601962.UG.FTS.B,
19.99%,
1/20/25
..
1,282
1,308
991604556.UG.FTS.B,
19.99%,
1/20/25
..
349
358
991607111.UG.FTS.B,
19.99%,
1/20/25
..
2,618
318
991611311.UG.FTS.B,
19.99%,
1/20/25
..
90
92
991612039.UG.FTS.B,
19.99%,
1/20/25
..
186
188
991613122.UG.FTS.B,
19.99%,
1/20/25
..
256
263
991615000.UG.FTS.B,
19.99%,
1/20/25
..
497
510
991615131.UG.FTS.B,
19.99%,
1/20/25
..
104
106
991626332.UG.FTS.B,
19.99%,
1/20/25
..
542
554
991627626.UG.FTS.B,
19.99%,
1/20/25
..
99
99
991633379.UG.FTS.B,
19.99%,
1/20/25
..
68
70
991633465.UG.FTS.B,
19.99%,
1/20/25
..
31
31
991635746.UG.FTS.B,
19.99%,
1/20/25
..
986
991
991638370.UG.FTS.B,
19.99%,
1/20/25
..
605
611
991642370.UG.FTS.B,
19.99%,
1/20/25
..
312
320
991643091.UG.FTS.B,
19.99%,
1/20/25
..
91
92
991646361.UG.FTS.B,
19.99%,
1/20/25
..
298
304
991648690.UG.FTS.B,
19.99%,
1/20/25
..
128
130
991650312.UG.FTS.B,
19.99%,
1/20/25
..
328
333
991666023.UG.FTS.B,
19.99%,
1/20/25
..
234
242
991674508.UG.FTS.B,
19.99%,
1/20/25
..
45
46
991676336.UG.FTS.B,
19.99%,
1/20/25
..
180
182
991679884.UG.FTS.B,
19.99%,
1/20/25
..
28
28
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991689591.UG.FTS.B,
19.99%,
1/20/25
..
$
1,841
$
1,872
991699684.UG.FTS.B,
19.99%,
1/20/25
..
164
167
991704946.UG.FTS.B,
19.99%,
1/20/25
..
320
324
991713510.UG.FTS.B,
19.99%,
1/20/25
..
352
357
991737545.UG.FTS.B,
19.99%,
1/20/25
..
399
403
991751909.UG.FTS.B,
19.99%,
1/20/25
..
187
190
991756492.UG.FTS.B,
19.99%,
1/20/25
..
76
78
991786469.UG.FTS.B,
20.97%,
1/20/25
..
43
44
991700996.UG.FTS.B,
23.95%,
1/20/25
..
337
341
991638704.UG.FTS.B,
25.94%,
1/20/25
..
11
12
991568966.UG.FTS.B,
25.95%,
1/20/25
..
156
159
991674160.UG.FTS.B,
25.95%,
1/20/25
..
249
256
991717340.UG.FTS.B,
25.95%,
1/20/25
..
212
213
991545216.UG.FTS.B,
26.94%,
1/20/25
..
201
201
991546401.UG.FTS.B,
26.94%,
1/20/25
..
31
32
991552205.UG.FTS.B,
26.94%,
1/20/25
..
98
99
991557467.UG.FTS.B,
26.94%,
1/20/25
..
115
117
991696729.UG.FTS.B,
26.94%,
1/20/25
..
579
578
991548836.UG.FTS.B,
27.95%,
1/20/25
..
233
233
991555184.UG.FTS.B,
27.95%,
1/20/25
..
21
21
991571963.UG.FTS.B,
27.95%,
1/20/25
..
133
136
991600110.UG.FTS.B,
27.95%,
1/20/25
..
953
977
991693406.UG.FTS.B,
27.95%,
1/20/25
..
1,409
1,425
991743185.UG.FTS.B,
27.95%,
1/20/25
..
45
45
991552965.UG.FTS.B,
27.99%,
1/20/25
..
211
217
991560514.UG.FTS.B,
27.99%,
1/20/25
..
617
44
991567052.UG.FTS.B,
27.99%,
1/20/25
..
107
110
991622176.UG.FTS.B,
27.99%,
1/20/25
..
129
133
991626627.UG.FTS.B,
27.99%,
1/20/25
..
190
195
991633013.UG.FTS.B,
27.99%,
1/20/25
..
–
–
991636359.UG.FTS.B,
27.99%,
1/20/25
..
301
21
991646119.UG.FTS.B,
27.99%,
1/20/25
..
437
448
991648045.UG.FTS.B,
27.99%,
1/20/25
..
104
106
991653855.UG.FTS.B,
27.99%,
1/20/25
..
309
316
991682363.UG.FTS.B,
27.99%,
1/20/25
..
2,240
2,284
991723012.UG.FTS.B,
27.99%,
1/20/25
..
471
478
991744999.UG.FTS.B,
27.99%,
1/20/25
..
35
36
991544408.UG.FTS.B,
28.98%,
1/20/25
..
129
132
991544416.UG.FTS.B,
28.98%,
1/20/25
..
1,338
1,334
991544535.UG.FTS.B,
28.98%,
1/20/25
..
175
179
991544778.UG.FTS.B,
28.98%,
1/20/25
..
83
85
991544854.UG.FTS.B,
28.98%,
1/20/25
..
702
719
991545880.UG.FTS.B,
28.98%,
1/20/25
..
102
104
991545892.UG.FTS.B,
28.98%,
1/20/25
..
194
193
991546109.UG.FTS.B,
28.98%,
1/20/25
..
1,559
1,582
991546136.UG.FTS.B,
28.98%,
1/20/25
..
140
139
991546205.UG.FTS.B,
28.98%,
1/20/25
..
294
300
991546636.UG.FTS.B,
28.98%,
1/20/25
..
120
123
991546850.UG.FTS.B,
28.98%,
1/20/25
..
2,235
2,178
991547172.UG.FTS.B,
28.98%,
1/20/25
..
2,683
2,751
991547211.UG.FTS.B,
28.98%,
1/20/25
..
101
103
991547409.UG.FTS.B,
28.98%,
1/20/25
..
108
111
991547592.UG.FTS.B,
28.98%,
1/20/25
..
5,180
390
991547593.UG.FTS.B,
28.98%,
1/20/25
..
337
346
991547613.UG.FTS.B,
28.98%,
1/20/25
..
10
10
991547657.UG.FTS.B,
28.98%,
1/20/25
..
530
543
991547777.UG.FTS.B,
28.98%,
1/20/25
..
303
306
991548016.UG.FTS.B,
28.98%,
1/20/25
..
144
148
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
122
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991548849.UG.FTS.B,
28.98%,
1/20/25
..
$
144
$
148
991548895.UG.FTS.B,
28.98%,
1/20/25
..
384
389
991549059.UG.FTS.B,
28.98%,
1/20/25
..
33
33
991550332.UG.FTS.B,
28.98%,
1/20/25
..
228
234
991551896.UG.FTS.B,
28.98%,
1/20/25
..
184
189
991552067.UG.FTS.B,
28.98%,
1/20/25
..
87
89
991552315.UG.FTS.B,
28.98%,
1/20/25
..
1,434
1,471
991552839.UG.FTS.B,
28.98%,
1/20/25
..
554
561
991552893.UG.FTS.B,
28.98%,
1/20/25
..
565
576
991552954.UG.FTS.B,
28.98%,
1/20/25
..
30
30
991553649.UG.FTS.B,
28.98%,
1/20/25
..
1,442
1,479
991554237.UG.FTS.B,
28.98%,
1/20/25
..
104
107
991554385.UG.FTS.B,
28.98%,
1/20/25
..
366
375
991555169.UG.FTS.B,
28.98%,
1/20/25
..
10
10
991555861.UG.FTS.B,
28.98%,
1/20/25
..
75
76
991555935.UG.FTS.B,
28.98%,
1/20/25
..
209
27
991555984.UG.FTS.B,
28.98%,
1/20/25
..
55
56
991556127.UG.FTS.B,
28.98%,
1/20/25
..
549
551
991556261.UG.FTS.B,
28.98%,
1/20/25
..
1,076
1,102
991556547.UG.FTS.B,
28.98%,
1/20/25
..
155
159
991556570.UG.FTS.B,
28.98%,
1/20/25
..
509
516
991557051.UG.FTS.B,
28.98%,
1/20/25
..
219
225
991557666.UG.FTS.B,
28.98%,
1/20/25
..
1,446
1,482
991557793.UG.FTS.B,
28.98%,
1/20/25
..
479
485
991557809.UG.FTS.B,
28.98%,
1/20/25
..
125
128
991558124.UG.FTS.B,
28.98%,
1/20/25
..
45
46
991558482.UG.FTS.B,
28.98%,
1/20/25
..
1,898
1,946
991558522.UG.FTS.B,
28.98%,
1/20/25
..
192
197
991558703.UG.FTS.B,
28.98%,
1/20/25
..
1,033
1,060
991559055.UG.FTS.B,
28.98%,
1/20/25
..
4,410
4,448
991559325.UG.FTS.B,
28.98%,
1/20/25
..
334
24
991559725.UG.FTS.B,
28.98%,
1/20/25
..
815
836
991560150.UG.FTS.B,
28.98%,
1/20/25
..
123
126
991560712.UG.FTS.B,
28.98%,
1/20/25
..
200
(5)
991561317.UG.FTS.B,
28.98%,
1/20/25
..
41
42
991561334.UG.FTS.B,
28.98%,
1/20/25
..
510
523
991561686.UG.FTS.B,
28.98%,
1/20/25
..
252
255
991562097.UG.FTS.B,
28.98%,
1/20/25
..
31
28
991562215.UG.FTS.B,
28.98%,
1/20/25
..
24
24
991562380.UG.FTS.B,
28.98%,
1/20/25
..
240
246
991563193.UG.FTS.B,
28.98%,
1/20/25
..
475
476
991563837.UG.FTS.B,
28.98%,
1/20/25
..
768
787
991563880.UG.FTS.B,
28.98%,
1/20/25
..
107
108
991564330.UG.FTS.B,
28.98%,
1/20/25
..
139
142
991564566.UG.FTS.B,
28.98%,
1/20/25
..
89
90
991565562.UG.FTS.B,
28.98%,
1/20/25
..
1,028
1,043
991566285.UG.FTS.B,
28.98%,
1/20/25
..
282
290
991566522.UG.FTS.B,
28.98%,
1/20/25
..
1,916
1,965
991567188.UG.FTS.B,
28.98%,
1/20/25
..
110
112
991567575.UG.FTS.B,
28.98%,
1/20/25
..
107
110
991567576.UG.FTS.B,
28.98%,
1/20/25
..
147
94
991567739.UG.FTS.B,
28.98%,
1/20/25
..
31
32
991568042.UG.FTS.B,
28.98%,
1/20/25
..
15
15
991568378.UG.FTS.B,
28.98%,
1/20/25
..
343
348
991568849.UG.FTS.B,
28.98%,
1/20/25
..
177
182
991568936.UG.FTS.B,
28.98%,
1/20/25
..
336
345
991569159.UG.FTS.B,
28.98%,
1/20/25
..
91
93
991570565.UG.FTS.B,
28.98%,
1/20/25
..
145
148
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991571433.UG.FTS.B,
28.98%,
1/20/25
..
$
196
$
201
991572088.UG.FTS.B,
28.98%,
1/20/25
..
598
613
991572223.UG.FTS.B,
28.98%,
1/20/25
..
1,353
1,388
991572292.UG.FTS.B,
28.98%,
1/20/25
..
85
87
991572445.UG.FTS.B,
28.98%,
1/20/25
..
420
430
991572711.UG.FTS.B,
28.98%,
1/20/25
..
43
44
991572818.UG.FTS.B,
28.98%,
1/20/25
..
54
55
991573256.UG.FTS.B,
28.98%,
1/20/25
..
79
81
991575019.UG.FTS.B,
28.98%,
1/20/25
..
575
589
991575102.UG.FTS.B,
28.98%,
1/20/25
..
1,413
1,449
991575133.UG.FTS.B,
28.98%,
1/20/25
..
538
533
991575747.UG.FTS.B,
28.98%,
1/20/25
..
94
94
991576855.UG.FTS.B,
28.98%,
1/20/25
..
2,096
2,149
991578462.UG.FTS.B,
28.98%,
1/20/25
..
71
73
991578599.UG.FTS.B,
28.98%,
1/20/25
..
625
641
991579033.UG.FTS.B,
28.98%,
1/20/25
..
216
221
991580332.UG.FTS.B,
28.98%,
1/20/25
..
509
517
991580751.UG.FTS.B,
28.98%,
1/20/25
..
529
526
991581464.UG.FTS.B,
28.98%,
1/20/25
..
752
771
991581893.UG.FTS.B,
28.98%,
1/20/25
..
384
393
991582270.UG.FTS.B,
28.98%,
1/20/25
..
464
470
991582316.UG.FTS.B,
28.98%,
1/20/25
..
668
685
991583116.UG.FTS.B,
28.98%,
1/20/25
..
373
382
991583574.UG.FTS.B,
28.98%,
1/20/25
..
390
400
991583705.UG.FTS.B,
28.98%,
1/20/25
..
117
15
991584117.UG.FTS.B,
28.98%,
1/20/25
..
761
778
991585256.UG.FTS.B,
28.98%,
1/20/25
..
24
25
991586736.UG.FTS.B,
28.98%,
1/20/25
..
443
444
991588111.UG.FTS.B,
28.98%,
1/20/25
..
260
263
991589534.UG.FTS.B,
28.98%,
1/20/25
..
572
587
991589805.UG.FTS.B,
28.98%,
1/20/25
..
79
80
991590552.UG.FTS.B,
28.98%,
1/20/25
..
435
446
991591207.UG.FTS.B,
28.98%,
1/20/25
..
102
104
991591623.UG.FTS.B,
28.98%,
1/20/25
..
111
113
991592663.UG.FTS.B,
28.98%,
1/20/25
..
184
188
991593515.UG.FTS.B,
28.98%,
1/20/25
..
882
884
991593668.UG.FTS.B,
28.98%,
1/20/25
..
267
271
991593747.UG.FTS.B,
28.98%,
1/20/25
..
50
50
991594115.UG.FTS.B,
28.98%,
1/20/25
..
1,067
1,094
991594754.UG.FTS.B,
28.98%,
1/20/25
..
613
628
991594803.UG.FTS.B,
28.98%,
1/20/25
..
357
365
991595362.UG.FTS.B,
28.98%,
1/20/25
..
39
39
991598017.UG.FTS.B,
28.98%,
1/20/25
..
457
469
991598284.UG.FTS.B,
28.98%,
1/20/25
..
284
291
991598888.UG.FTS.B,
28.98%,
1/20/25
..
32
32
991599195.UG.FTS.B,
28.98%,
1/20/25
..
1,046
1,072
991600569.UG.FTS.B,
28.98%,
1/20/25
..
920
941
991601320.UG.FTS.B,
28.98%,
1/20/25
..
955
979
991602050.UG.FTS.B,
28.98%,
1/20/25
..
209
208
991602419.UG.FTS.B,
28.98%,
1/20/25
..
664
680
991602891.UG.FTS.B,
28.98%,
1/20/25
..
116
119
991603544.UG.FTS.B,
28.98%,
1/20/25
..
–
–
991603854.UG.FTS.B,
28.98%,
1/20/25
..
395
405
991604383.UG.FTS.B,
28.98%,
1/20/25
..
47
48
991604545.UG.FTS.B,
28.98%,
1/20/25
..
299
306
991604665.UG.FTS.B,
28.98%,
1/20/25
..
236
242
991605120.UG.FTS.B,
28.98%,
1/20/25
..
31
31
991606308.UG.FTS.B,
28.98%,
1/20/25
..
74
11
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
123
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991606337.UG.FTS.B,
28.98%,
1/20/25
..
$
201
$
199
991607039.UG.FTS.B,
28.98%,
1/20/25
..
37
37
991607215.UG.FTS.B,
28.98%,
1/20/25
..
349
357
991607437.UG.FTS.B,
28.98%,
1/20/25
..
564
578
991608131.UG.FTS.B,
28.98%,
1/20/25
..
214
219
991608902.UG.FTS.B,
28.98%,
1/20/25
..
954
966
991609515.UG.FTS.B,
28.98%,
1/20/25
..
477
489
991609600.UG.FTS.B,
28.98%,
1/20/25
..
1,664
1,664
991610945.UG.FTS.B,
28.98%,
1/20/25
..
41
41
991611805.UG.FTS.B,
28.98%,
1/20/25
..
1,441
1,475
991612372.UG.FTS.B,
28.98%,
1/20/25
..
40
40
991613998.UG.FTS.B,
28.98%,
1/20/25
..
574
588
991615084.UG.FTS.B,
28.98%,
1/20/25
..
1,402
1,413
991616232.UG.FTS.B,
28.98%,
1/20/25
..
177
180
991617276.UG.FTS.B,
28.98%,
1/20/25
..
6,238
6,392
991617883.UG.FTS.B,
28.98%,
1/20/25
..
1,430
1,466
991620442.UG.FTS.B,
28.98%,
1/20/25
..
57
57
991621078.UG.FTS.B,
28.98%,
1/20/25
..
330
333
991622012.UG.FTS.B,
28.98%,
1/20/25
..
59
60
991622718.UG.FTS.B,
28.98%,
1/20/25
..
12
12
991624075.UG.FTS.B,
28.98%,
1/20/25
..
263
269
991625260.UG.FTS.B,
28.98%,
1/20/25
..
142
146
991627022.UG.FTS.B,
28.98%,
1/20/25
..
100
7
991628122.UG.FTS.B,
28.98%,
1/20/25
..
116
119
991628805.UG.FTS.B,
28.98%,
1/20/25
..
5
5
991628873.UG.FTS.B,
28.98%,
1/20/25
..
306
314
991629144.UG.FTS.B,
28.98%,
1/20/25
..
687
704
991630278.UG.FTS.B,
28.98%,
1/20/25
..
265
272
991631091.UG.FTS.B,
28.98%,
1/20/25
..
3
3
991631399.UG.FTS.B,
28.98%,
1/20/25
..
2,003
2,057
991631946.UG.FTS.B,
28.98%,
1/20/25
..
200
205
991632637.UG.FTS.B,
28.98%,
1/20/25
..
69
71
991633593.UG.FTS.B,
28.98%,
1/20/25
..
84
86
991634045.UG.FTS.B,
28.98%,
1/20/25
..
170
175
991634258.UG.FTS.B,
28.98%,
1/20/25
..
756
774
991636177.UG.FTS.B,
28.98%,
1/20/25
..
77
78
991636767.UG.FTS.B,
28.98%,
1/20/25
..
36
37
991636848.UG.FTS.B,
28.98%,
1/20/25
..
468
469
991637075.UG.FTS.B,
28.98%,
1/20/25
..
152
151
991637880.UG.FTS.B,
28.98%,
1/20/25
..
75
77
991638060.UG.FTS.B,
28.98%,
1/20/25
..
158
157
991638685.UG.FTS.B,
28.98%,
1/20/25
..
161
165
991639978.UG.FTS.B,
28.98%,
1/20/25
..
215
219
991640331.UG.FTS.B,
28.98%,
1/20/25
..
2
2
991643294.UG.FTS.B,
28.98%,
1/20/25
..
192
195
991644226.UG.FTS.B,
28.98%,
1/20/25
..
62
63
991645700.UG.FTS.B,
28.98%,
1/20/25
..
1,349
1,361
991646775.UG.FTS.B,
28.98%,
1/20/25
..
104
106
991649143.UG.FTS.B,
28.98%,
1/20/25
..
0
0
991652272.UG.FTS.B,
28.98%,
1/20/25
..
327
329
991652664.UG.FTS.B,
28.98%,
1/20/25
..
223
223
991652792.UG.FTS.B,
28.98%,
1/20/25
..
89
89
991653273.UG.FTS.B,
28.98%,
1/20/25
..
168
173
991655177.UG.FTS.B,
28.98%,
1/20/25
..
785
804
991655284.UG.FTS.B,
28.98%,
1/20/25
..
94
96
991657177.UG.FTS.B,
28.98%,
1/20/25
..
2,938
3,011
991657299.UG.FTS.B,
28.98%,
1/20/25
..
3,799
3,894
991657792.UG.FTS.B,
28.98%,
1/20/25
..
223
16
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991658226.UG.FTS.B,
28.98%,
1/20/25
..
$
950
$
961
991658495.UG.FTS.B,
28.98%,
1/20/25
..
197
25
991659478.UG.FTS.B,
28.98%,
1/20/25
..
1,658
1,699
991660585.UG.FTS.B,
28.98%,
1/20/25
..
5
5
991661289.UG.FTS.B,
28.98%,
1/20/25
..
415
416
991661646.UG.FTS.B,
28.98%,
1/20/25
..
413
423
991662576.UG.FTS.B,
28.98%,
1/20/25
..
458
465
991664351.UG.FTS.B,
28.98%,
1/20/25
..
285
289
991665002.UG.FTS.B,
28.98%,
1/20/25
..
1,189
1,219
991666441.UG.FTS.B,
28.98%,
1/20/25
..
474
486
991667184.UG.FTS.B,
28.98%,
1/20/25
..
230
234
991668194.UG.FTS.B,
28.98%,
1/20/25
..
572
586
991669494.UG.FTS.B,
28.98%,
1/20/25
..
442
450
991669957.UG.FTS.B,
28.98%,
1/20/25
..
78
80
991671299.UG.FTS.B,
28.98%,
1/20/25
..
548
547
991672473.UG.FTS.B,
28.98%,
1/20/25
..
316
321
991673011.UG.FTS.B,
28.98%,
1/20/25
..
139
18
991674562.UG.FTS.B,
28.98%,
1/20/25
..
664
680
991677509.UG.FTS.B,
28.98%,
1/20/25
..
319
322
991677877.UG.FTS.B,
28.98%,
1/20/25
..
5,330
5,417
991678497.UG.FTS.B,
28.98%,
1/20/25
..
98
100
991679091.UG.FTS.B,
28.98%,
1/20/25
..
68
68
991681420.UG.FTS.B,
28.98%,
1/20/25
..
85
85
991681601.UG.FTS.B,
28.98%,
1/20/25
..
388
393
991683543.UG.FTS.B,
28.98%,
1/20/25
..
3,109
3,132
991683658.UG.FTS.B,
28.98%,
1/20/25
..
88
90
991683859.UG.FTS.B,
28.98%,
1/20/25
..
38
38
991684690.UG.FTS.B,
28.98%,
1/20/25
..
369
378
991685455.UG.FTS.B,
28.98%,
1/20/25
..
234
240
991685698.UG.FTS.B,
28.98%,
1/20/25
..
696
713
991686339.UG.FTS.B,
28.98%,
1/20/25
..
229
233
991687748.UG.FTS.B,
28.98%,
1/20/25
..
19
19
991688152.UG.FTS.B,
28.98%,
1/20/25
..
189
194
991688819.UG.FTS.B,
28.98%,
1/20/25
..
407
414
991691824.UG.FTS.B,
28.98%,
1/20/25
..
142
146
991693338.UG.FTS.B,
28.98%,
1/20/25
..
164
165
991695244.UG.FTS.B,
28.98%,
1/20/25
..
81
82
991695993.UG.FTS.B,
28.98%,
1/20/25
..
16
16
991699863.UG.FTS.B,
28.98%,
1/20/25
..
42
43
991700400.UG.FTS.B,
28.98%,
1/20/25
..
37
37
991703498.UG.FTS.B,
28.98%,
1/20/25
..
285
289
991704850.UG.FTS.B,
28.98%,
1/20/25
..
150
153
991704987.UG.FTS.B,
28.98%,
1/20/25
..
100
102
991708940.UG.FTS.B,
28.98%,
1/20/25
..
85
87
991709725.UG.FTS.B,
28.98%,
1/20/25
..
98
101
991711174.UG.FTS.B,
28.98%,
1/20/25
..
101
103
991714721.UG.FTS.B,
28.98%,
1/20/25
..
54
55
991715023.UG.FTS.B,
28.98%,
1/20/25
..
131
133
991719591.UG.FTS.B,
28.98%,
1/20/25
..
472
479
991720352.UG.FTS.B,
28.98%,
1/20/25
..
907
919
991720648.UG.FTS.B,
28.98%,
1/20/25
..
755
766
991720930.UG.FTS.B,
28.98%,
1/20/25
..
661
670
991721888.UG.FTS.B,
28.98%,
1/20/25
..
962
976
991727362.UG.FTS.B,
28.98%,
1/20/25
..
226
229
991731657.UG.FTS.B,
28.98%,
1/20/25
..
566
574
991731747.UG.FTS.B,
28.98%,
1/20/25
..
754
766
991734822.UG.FTS.B,
28.98%,
1/20/25
..
43
43
991736469.UG.FTS.B,
28.98%,
1/20/25
..
76
78
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
124
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991737941.UG.FTS.B,
28.98%,
1/20/25
..
$
97
$
99
991738665.UG.FTS.B,
28.98%,
1/20/25
..
135
137
991740124.UG.FTS.B,
28.98%,
1/20/25
..
141
143
991740572.UG.FTS.B,
28.98%,
1/20/25
..
210
213
991741194.UG.FTS.B,
28.98%,
1/20/25
..
245
8
991741386.UG.FTS.B,
28.98%,
1/20/25
..
31
31
991743913.UG.FTS.B,
28.98%,
1/20/25
..
85
87
991744428.UG.FTS.B,
28.98%,
1/20/25
..
39
39
991744832.UG.FTS.B,
28.98%,
1/20/25
..
422
428
991745775.UG.FTS.B,
28.98%,
1/20/25
..
207
207
991746760.UG.FTS.B,
28.98%,
1/20/25
..
114
114
991748711.UG.FTS.B,
28.98%,
1/20/25
..
845
851
991750085.UG.FTS.B,
28.98%,
1/20/25
..
111
114
991752117.UG.FTS.B,
28.98%,
1/20/25
..
245
248
991759561.UG.FTS.B,
28.98%,
1/20/25
..
64
66
991760438.UG.FTS.B,
28.98%,
1/20/25
..
106
109
991764409.UG.FTS.B,
28.98%,
1/20/25
..
27
28
991766308.UG.FTS.B,
28.98%,
1/20/25
..
60
61
991769081.UG.FTS.B,
28.98%,
1/20/25
..
10
10
991772528.UG.FTS.B,
28.98%,
1/20/25
..
286
290
991772749.UG.FTS.B,
28.98%,
1/20/25
..
329
334
991773470.UG.FTS.B,
28.98%,
1/20/25
..
111
113
991773598.UG.FTS.B,
28.98%,
1/20/25
..
403
399
991773610.UG.FTS.B,
28.98%,
1/20/25
..
1,409
1,430
991773612.UG.FTS.B,
28.98%,
1/20/25
..
163
166
991773912.UG.FTS.B,
28.98%,
1/20/25
..
216
219
991774014.UG.FTS.B,
28.98%,
1/20/25
..
1,168
1,169
991775137.UG.FTS.B,
28.98%,
1/20/25
..
3,916
3,931
991775579.UG.FTS.B,
28.98%,
1/20/25
..
188
191
991775768.UG.FTS.B,
28.98%,
1/20/25
..
128
130
991784171.UG.FTS.B,
28.98%,
1/20/25
..
461
468
991544384.UG.FTS.B,
29.45%,
1/20/25
..
122
121
991544892.UG.FTS.B,
29.45%,
1/20/25
..
914
937
991546469.UG.FTS.B,
29.45%,
1/20/25
..
342
351
991590390.UG.FTS.B,
29.45%,
1/20/25
..
150
154
991598067.UG.FTS.B,
29.45%,
1/20/25
..
83
82
991632124.UG.FTS.B,
29.45%,
1/20/25
..
12
12
991658510.UG.FTS.B,
29.45%,
1/20/25
..
218
217
991661056.UG.FTS.B,
29.45%,
1/20/25
..
28
28
991703938.UG.FTS.B,
29.45%,
1/20/25
..
88
88
991708297.UG.FTS.B,
29.45%,
1/20/25
..
61
62
991749201.UG.FTS.B,
29.45%,
1/20/25
..
973
982
991760144.UG.FTS.B,
29.45%,
1/20/25
..
65
66
991546140.UG.FTS.B,
29.46%,
1/20/25
..
582
595
991552999.UG.FTS.B,
29.46%,
1/20/25
..
115
117
991554451.UG.FTS.B,
29.46%,
1/20/25
..
769
787
991556638.UG.FTS.B,
29.46%,
1/20/25
..
47
47
991556833.UG.FTS.B,
29.46%,
1/20/25
..
425
430
991558641.UG.FTS.B,
29.46%,
1/20/25
..
1,604
1,636
991572725.UG.FTS.B,
29.46%,
1/20/25
..
150
153
991577119.UG.FTS.B,
29.46%,
1/20/25
..
147
150
991588559.UG.FTS.B,
29.46%,
1/20/25
..
95
97
991607542.UG.FTS.B,
29.46%,
1/20/25
..
995
1,017
991619581.UG.FTS.B,
29.46%,
1/20/25
..
56
57
991638849.UG.FTS.B,
29.46%,
1/20/25
..
319
326
991649368.UG.FTS.B,
29.46%,
1/20/25
..
99
101
991666110.UG.FTS.B,
29.46%,
1/20/25
..
128
130
991711257.UG.FTS.B,
29.46%,
1/20/25
..
4
4
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991715745.UG.FTS.B,
29.46%,
1/20/25
..
$
176
$
177
991718893.UG.FTS.B,
29.46%,
1/20/25
..
4,865
4,877
991755749.UG.FTS.B,
29.46%,
1/20/25
..
33
34
991545665.UG.FTS.B,
29.47%,
1/20/25
..
8
8
991559050.UG.FTS.B,
29.47%,
1/20/25
..
891
911
991559721.UG.FTS.B,
29.47%,
1/20/25
..
48
49
991561124.UG.FTS.B,
29.47%,
1/20/25
..
1,265
1,262
991570910.UG.FTS.B,
29.47%,
1/20/25
..
147
147
991583354.UG.FTS.B,
29.47%,
1/20/25
..
48
47
991584353.UG.FTS.B,
29.47%,
1/20/25
..
366
373
991584440.UG.FTS.B,
29.47%,
1/20/25
..
367
376
991649992.UG.FTS.B,
29.47%,
1/20/25
..
322
323
991658968.UG.FTS.B,
29.47%,
1/20/25
..
195
200
991702923.UG.FTS.B,
29.47%,
1/20/25
..
327
335
991544542.UG.FTS.B,
29.48%,
1/20/25
..
915
936
991544991.UG.FTS.B,
29.48%,
1/20/25
..
344
346
991545016.UG.FTS.B,
29.48%,
1/20/25
..
732
749
991545229.UG.FTS.B,
29.48%,
1/20/25
..
235
232
991545300.UG.FTS.B,
29.48%,
1/20/25
..
104
105
991546098.UG.FTS.B,
29.48%,
1/20/25
..
865
867
991546168.UG.FTS.B,
29.48%,
1/20/25
..
280
286
991547692.UG.FTS.B,
29.48%,
1/20/25
..
111
113
991551664.UG.FTS.B,
29.48%,
1/20/25
..
114
113
991554905.UG.FTS.B,
29.48%,
1/20/25
..
41
42
991555928.UG.FTS.B,
29.48%,
1/20/25
..
246
252
991556918.UG.FTS.B,
29.48%,
1/20/25
..
69
70
991567953.UG.FTS.B,
29.48%,
1/20/25
..
148
151
991581207.UG.FTS.B,
29.48%,
1/20/25
..
104
107
991588988.UG.FTS.B,
29.48%,
1/20/25
..
12
12
991612799.UG.FTS.B,
29.48%,
1/20/25
..
244
18
991620084.UG.FTS.B,
29.48%,
1/20/25
..
410
406
991622988.UG.FTS.B,
29.48%,
1/20/25
..
138
142
991638084.UG.FTS.B,
29.48%,
1/20/25
..
66
66
991638325.UG.FTS.B,
29.48%,
1/20/25
..
2,986
3,015
991642455.UG.FTS.B,
29.48%,
1/20/25
..
112
114
991643179.UG.FTS.B,
29.48%,
1/20/25
..
25
25
991647957.UG.FTS.B,
29.48%,
1/20/25
..
42
7
991656736.UG.FTS.B,
29.48%,
1/20/25
..
252
248
991672100.UG.FTS.B,
29.48%,
1/20/25
..
152
154
991673244.UG.FTS.B,
29.48%,
1/20/25
..
34
34
991674255.UG.FTS.B,
29.48%,
1/20/25
..
1,513
1,547
991674402.UG.FTS.B,
29.48%,
1/20/25
..
948
969
991723769.UG.FTS.B,
29.48%,
1/20/25
..
81
82
991758718.UG.FTS.B,
29.48%,
1/20/25
..
233
236
991768186.UG.FTS.B,
29.48%,
1/20/25
..
470
465
991544296.UG.FTS.B,
29.49%,
1/20/25
..
298
305
991544466.UG.FTS.B,
29.49%,
1/20/25
..
378
387
991544486.UG.FTS.B,
29.49%,
1/20/25
..
162
161
991544749.UG.FTS.B,
29.49%,
1/20/25
..
947
962
991544865.UG.FTS.B,
29.49%,
1/20/25
..
472
471
991544945.UG.FTS.B,
29.49%,
1/20/25
..
420
428
991545269.UG.FTS.B,
29.49%,
1/20/25
..
2,115
2,168
991545720.UG.FTS.B,
29.49%,
1/20/25
..
81
83
991545817.UG.FTS.B,
29.49%,
1/20/25
..
162
164
991545907.UG.FTS.B,
29.49%,
1/20/25
..
239
245
991546088.UG.FTS.B,
29.49%,
1/20/25
..
32
32
991546174.UG.FTS.B,
29.49%,
1/20/25
..
1,781
1,795
991546286.UG.FTS.B,
29.49%,
1/20/25
..
144
149
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
125
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991546483.UG.FTS.B,
29.49%,
1/20/25
..
$
635
$
(15)
991546669.UG.FTS.B,
29.49%,
1/20/25
..
282
280
991546718.UG.FTS.B,
29.49%,
1/20/25
..
8
8
991547043.UG.FTS.B,
29.49%,
1/20/25
..
51
43
991547049.UG.FTS.B,
29.49%,
1/20/25
..
186
190
991547329.UG.FTS.B,
29.49%,
1/20/25
..
141
144
991547440.UG.FTS.B,
29.49%,
1/20/25
..
184
185
991547641.UG.FTS.B,
29.49%,
1/20/25
..
225
229
991547872.UG.FTS.B,
29.49%,
1/20/25
..
715
719
991547921.UG.FTS.B,
29.49%,
1/20/25
..
138
141
991547930.UG.FTS.B,
29.49%,
1/20/25
..
82
83
991548160.UG.FTS.B,
29.49%,
1/20/25
..
70
70
991548200.UG.FTS.B,
29.49%,
1/20/25
..
623
623
991548735.UG.FTS.B,
29.49%,
1/20/25
..
221
226
991549021.UG.FTS.B,
29.49%,
1/20/25
..
204
14
991549440.UG.FTS.B,
29.49%,
1/20/25
..
479
491
991549454.UG.FTS.B,
29.49%,
1/20/25
..
672
689
991549497.UG.FTS.B,
29.49%,
1/20/25
..
71
71
991549674.UG.FTS.B,
29.49%,
1/20/25
..
3,069
3,132
991550974.UG.FTS.B,
29.49%,
1/20/25
..
200
14
991551039.UG.FTS.B,
29.49%,
1/20/25
..
2,638
2,700
991551274.UG.FTS.B,
29.49%,
1/20/25
..
24
24
991551322.UG.FTS.B,
29.49%,
1/20/25
..
91
7
991551944.UG.FTS.B,
29.49%,
1/20/25
..
112
115
991552397.UG.FTS.B,
29.49%,
1/20/25
..
191
196
991552851.UG.FTS.B,
29.49%,
1/20/25
..
96
98
991552919.UG.FTS.B,
29.49%,
1/20/25
..
149
153
991553011.UG.FTS.B,
29.49%,
1/20/25
..
25
24
991553040.UG.FTS.B,
29.49%,
1/20/25
..
39
39
991553132.UG.FTS.B,
29.49%,
1/20/25
..
192
194
991553203.UG.FTS.B,
29.49%,
1/20/25
..
35
36
991553377.UG.FTS.B,
29.49%,
1/20/25
..
295
302
991553440.UG.FTS.B,
29.49%,
1/20/25
..
45
45
991553524.UG.FTS.B,
29.49%,
1/20/25
..
77
77
991553561.UG.FTS.B,
29.49%,
1/20/25
..
121
119
991553841.UG.FTS.B,
29.49%,
1/20/25
..
172
174
991553912.UG.FTS.B,
29.49%,
1/20/25
..
117
120
991554000.UG.FTS.B,
29.49%,
1/20/25
..
22
22
991554242.UG.FTS.B,
29.49%,
1/20/25
..
185
189
991554925.UG.FTS.B,
29.49%,
1/20/25
..
44
45
991555046.UG.FTS.B,
29.49%,
1/20/25
..
146
146
991555165.UG.FTS.B,
29.49%,
1/20/25
..
208
213
991555210.UG.FTS.B,
29.49%,
1/20/25
..
536
547
991555314.UG.FTS.B,
29.49%,
1/20/25
..
71
70
991555378.UG.FTS.B,
29.49%,
1/20/25
..
116
117
991555653.UG.FTS.B,
29.49%,
1/20/25
..
2,544
2,606
991555703.UG.FTS.B,
29.49%,
1/20/25
..
256
262
991556119.UG.FTS.B,
29.49%,
1/20/25
..
108
111
991556192.UG.FTS.B,
29.49%,
1/20/25
..
39
40
991556485.UG.FTS.B,
29.49%,
1/20/25
..
153
11
991556748.UG.FTS.B,
29.49%,
1/20/25
..
8
9
991556819.UG.FTS.B,
29.49%,
1/20/25
..
260
264
991556896.UG.FTS.B,
29.49%,
1/20/25
..
733
734
991557327.UG.FTS.B,
29.49%,
1/20/25
..
960
984
991557621.UG.FTS.B,
29.49%,
1/20/25
..
1,020
1,031
991557786.UG.FTS.B,
29.49%,
1/20/25
..
1,611
1,650
991559016.UG.FTS.B,
29.49%,
1/20/25
..
10
10
991559618.UG.FTS.B,
29.49%,
1/20/25
..
71
72
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991559863.UG.FTS.B,
29.49%,
1/20/25
..
$
335
$
344
991560412.UG.FTS.B,
29.49%,
1/20/25
..
1,065
1,082
991560950.UG.FTS.B,
29.49%,
1/20/25
..
53
54
991561412.UG.FTS.B,
29.49%,
1/20/25
..
1,201
1,231
991561533.UG.FTS.B,
29.49%,
1/20/25
..
167
169
991561593.UG.FTS.B,
29.49%,
1/20/25
..
86
12
991561854.UG.FTS.B,
29.49%,
1/20/25
..
78
80
991562352.UG.FTS.B,
29.49%,
1/20/25
..
96
7
991562399.UG.FTS.B,
29.49%,
1/20/25
..
126
126
991562464.UG.FTS.B,
29.49%,
1/20/25
..
692
50
991562787.UG.FTS.B,
29.49%,
1/20/25
..
2,346
2,387
991562985.UG.FTS.B,
29.49%,
1/20/25
..
328
335
991563089.UG.FTS.B,
29.49%,
1/20/25
..
19
20
991563323.UG.FTS.B,
29.49%,
1/20/25
..
51
52
991563493.UG.FTS.B,
29.49%,
1/20/25
..
203
208
991563516.UG.FTS.B,
29.49%,
1/20/25
..
83
(2)
991563554.UG.FTS.B,
29.49%,
1/20/25
..
106
106
991563558.UG.FTS.B,
29.49%,
1/20/25
..
70
71
991564043.UG.FTS.B,
29.49%,
1/20/25
..
187
186
991564059.UG.FTS.B,
29.49%,
1/20/25
..
765
777
991564184.UG.FTS.B,
29.49%,
1/20/25
..
–
–
991564267.UG.FTS.B,
29.49%,
1/20/25
..
467
477
991564331.UG.FTS.B,
29.49%,
1/20/25
..
253
(4)
991564377.UG.FTS.B,
29.49%,
1/20/25
..
10
10
991564542.UG.FTS.B,
29.49%,
1/20/25
..
19
19
991565167.UG.FTS.B,
29.49%,
1/20/25
..
163
167
991565182.UG.FTS.B,
29.49%,
1/20/25
..
3,335
3,376
991565264.UG.FTS.B,
29.49%,
1/20/25
..
210
214
991565422.UG.FTS.B,
29.49%,
1/20/25
..
127
130
991565868.UG.FTS.B,
29.49%,
1/20/25
..
554
566
991566926.UG.FTS.B,
29.49%,
1/20/25
..
1,439
1,474
991567026.UG.FTS.B,
29.49%,
1/20/25
..
8
8
991567540.UG.FTS.B,
29.49%,
1/20/25
..
186
190
991568109.UG.FTS.B,
29.49%,
1/20/25
..
142
141
991568509.UG.FTS.B,
29.49%,
1/20/25
..
393
403
991568535.UG.FTS.B,
29.49%,
1/20/25
..
660
675
991568889.UG.FTS.B,
29.49%,
1/20/25
..
34
34
991568891.UG.FTS.B,
29.49%,
1/20/25
..
59
60
991569010.UG.FTS.B,
29.49%,
1/20/25
..
66
67
991569026.UG.FTS.B,
29.49%,
1/20/25
..
73
75
991569591.UG.FTS.B,
29.49%,
1/20/25
..
80
79
991569715.UG.FTS.B,
29.49%,
1/20/25
..
19
19
991570132.UG.FTS.B,
29.49%,
1/20/25
..
2,476
2,537
991570147.UG.FTS.B,
29.49%,
1/20/25
..
54
55
991570228.UG.FTS.B,
29.49%,
1/20/25
..
173
177
991570854.UG.FTS.B,
29.49%,
1/20/25
..
264
270
991571057.UG.FTS.B,
29.49%,
1/20/25
..
9
9
991571176.UG.FTS.B,
29.49%,
1/20/25
..
148
151
991571596.UG.FTS.B,
29.49%,
1/20/25
..
33
33
991572440.UG.FTS.B,
29.49%,
1/20/25
..
253
178
991573213.UG.FTS.B,
29.49%,
1/20/25
..
278
275
991573246.UG.FTS.B,
29.49%,
1/20/25
..
20
20
991573331.UG.FTS.B,
29.49%,
1/20/25
..
123
123
991573625.UG.FTS.B,
29.49%,
1/20/25
..
479
491
991574790.UG.FTS.B,
29.49%,
1/20/25
..
958
982
991575006.UG.FTS.B,
29.49%,
1/20/25
..
119
122
991575245.UG.FTS.B,
29.49%,
1/20/25
..
401
403
991575963.UG.FTS.B,
29.49%,
1/20/25
..
168
170
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
126
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991576324.UG.FTS.B,
29.49%,
1/20/25
..
$
2,966
$
3,035
991576385.UG.FTS.B,
29.49%,
1/20/25
..
224
229
991576865.UG.FTS.B,
29.49%,
1/20/25
..
112
114
991577046.UG.FTS.B,
29.49%,
1/20/25
..
140
(3)
991577211.UG.FTS.B,
29.49%,
1/20/25
..
255
255
991577516.UG.FTS.B,
29.49%,
1/20/25
..
287
285
991577542.UG.FTS.B,
29.49%,
1/20/25
..
87
89
991577951.UG.FTS.B,
29.49%,
1/20/25
..
27
28
991578043.UG.FTS.B,
29.49%,
1/20/25
..
14
14
991578455.UG.FTS.B,
29.49%,
1/20/25
..
558
571
991578944.UG.FTS.B,
29.49%,
1/20/25
..
204
209
991579364.UG.FTS.B,
29.49%,
1/20/25
..
155
154
991579548.UG.FTS.B,
29.49%,
1/20/25
..
6
6
991579988.UG.FTS.B,
29.49%,
1/20/25
..
156
160
991580167.UG.FTS.B,
29.49%,
1/20/25
..
5
5
991581013.UG.FTS.B,
29.49%,
1/20/25
..
55
56
991581102.UG.FTS.B,
29.49%,
1/20/25
..
275
273
991581619.UG.FTS.B,
29.49%,
1/20/25
..
99
102
991581659.UG.FTS.B,
29.49%,
1/20/25
..
958
979
991582174.UG.FTS.B,
29.49%,
1/20/25
..
191
196
991582980.UG.FTS.B,
29.49%,
1/20/25
..
232
237
991583081.UG.FTS.B,
29.49%,
1/20/25
..
144
148
991583340.UG.FTS.B,
29.49%,
1/20/25
..
154
158
991583430.UG.FTS.B,
29.49%,
1/20/25
..
368
377
991583502.UG.FTS.B,
29.49%,
1/20/25
..
64
65
991584191.UG.FTS.B,
29.49%,
1/20/25
..
1,281
1,313
991584247.UG.FTS.B,
29.49%,
1/20/25
..
748
764
991584881.UG.FTS.B,
29.49%,
1/20/25
..
195
199
991585152.UG.FTS.B,
29.49%,
1/20/25
..
117
119
991585266.UG.FTS.B,
29.49%,
1/20/25
..
54
55
991585812.UG.FTS.B,
29.49%,
1/20/25
..
91
92
991586560.UG.FTS.B,
29.49%,
1/20/25
..
159
161
991586849.UG.FTS.B,
29.49%,
1/20/25
..
252
249
991586964.UG.FTS.B,
29.49%,
1/20/25
..
183
187
991587322.UG.FTS.B,
29.49%,
1/20/25
..
42
42
991587665.UG.FTS.B,
29.49%,
1/20/25
..
178
180
991587677.UG.FTS.B,
29.49%,
1/20/25
..
696
715
991588325.UG.FTS.B,
29.49%,
1/20/25
..
225
227
991588365.UG.FTS.B,
29.49%,
1/20/25
..
1,006
1,016
991588371.UG.FTS.B,
29.49%,
1/20/25
..
581
592
991590187.UG.FTS.B,
29.49%,
1/20/25
..
43
44
991590941.UG.FTS.B,
29.49%,
1/20/25
..
68
68
991591604.UG.FTS.B,
29.49%,
1/20/25
..
32
33
991591634.UG.FTS.B,
29.49%,
1/20/25
..
61
62
991591834.UG.FTS.B,
29.49%,
1/20/25
..
206
211
991592214.UG.FTS.B,
29.49%,
1/20/25
..
255
258
991592285.UG.FTS.B,
29.49%,
1/20/25
..
196
200
991592389.UG.FTS.B,
29.49%,
1/20/25
..
147
149
991592560.UG.FTS.B,
29.49%,
1/20/25
..
241
247
991592747.UG.FTS.B,
29.49%,
1/20/25
..
88
88
991593046.UG.FTS.B,
29.49%,
1/20/25
..
75
76
991593701.UG.FTS.B,
29.49%,
1/20/25
..
52
53
991593970.UG.FTS.B,
29.49%,
1/20/25
..
1,167
1,196
991594735.UG.FTS.B,
29.49%,
1/20/25
..
447
450
991595841.UG.FTS.B,
29.49%,
1/20/25
..
171
175
991596440.UG.FTS.B,
29.49%,
1/20/25
..
9
9
991596754.UG.FTS.B,
29.49%,
1/20/25
..
192
195
991596930.UG.FTS.B,
29.49%,
1/20/25
..
257
262
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991597202.UG.FTS.B,
29.49%,
1/20/25
..
$
65
$
66
991597280.UG.FTS.B,
29.49%,
1/20/25
..
33
34
991597971.UG.FTS.B,
29.49%,
1/20/25
..
12
12
991598360.UG.FTS.B,
29.49%,
1/20/25
..
221
226
991598583.UG.FTS.B,
29.49%,
1/20/25
..
110
113
991598790.UG.FTS.B,
29.49%,
1/20/25
..
478
484
991600631.UG.FTS.B,
29.49%,
1/20/25
..
288
296
991601559.UG.FTS.B,
29.49%,
1/20/25
..
478
489
991601728.UG.FTS.B,
29.49%,
1/20/25
..
287
294
991601783.UG.FTS.B,
29.49%,
1/20/25
..
345
346
991601943.UG.FTS.B,
29.49%,
1/20/25
..
56
57
991603035.UG.FTS.B,
29.49%,
1/20/25
..
330
337
991604392.UG.FTS.B,
29.49%,
1/20/25
..
0
0
991604441.UG.FTS.B,
29.49%,
1/20/25
..
43
3
991604598.UG.FTS.B,
29.49%,
1/20/25
..
57
57
991605838.UG.FTS.B,
29.49%,
1/20/25
..
44
43
991605866.UG.FTS.B,
29.49%,
1/20/25
..
425
435
991605989.UG.FTS.B,
29.49%,
1/20/25
..
33
33
991606116.UG.FTS.B,
29.49%,
1/20/25
..
193
197
991606376.UG.FTS.B,
29.49%,
1/20/25
..
44
45
991606518.UG.FTS.B,
29.49%,
1/20/25
..
–
–
991606975.UG.FTS.B,
29.49%,
1/20/25
..
144
145
991607008.UG.FTS.B,
29.49%,
1/20/25
..
270
277
991607168.UG.FTS.B,
29.49%,
1/20/25
..
71
72
991607405.UG.FTS.B,
29.49%,
1/20/25
..
415
420
991608556.UG.FTS.B,
29.49%,
1/20/25
..
75
77
991609620.UG.FTS.B,
29.49%,
1/20/25
..
477
489
991610063.UG.FTS.B,
29.49%,
1/20/25
..
573
586
991611813.UG.FTS.B,
29.49%,
1/20/25
..
39
39
991612642.UG.FTS.B,
29.49%,
1/20/25
..
80
82
991612971.UG.FTS.B,
29.49%,
1/20/25
..
157
161
991613184.UG.FTS.B,
29.49%,
1/20/25
..
24
24
991613473.UG.FTS.B,
29.49%,
1/20/25
..
12
12
991614076.UG.FTS.B,
29.49%,
1/20/25
..
1,235
1,266
991614750.UG.FTS.B,
29.49%,
1/20/25
..
286
287
991615718.UG.FTS.B,
29.49%,
1/20/25
..
21
21
991615755.UG.FTS.B,
29.49%,
1/20/25
..
190
195
991616553.UG.FTS.B,
29.49%,
1/20/25
..
134
138
991617017.UG.FTS.B,
29.49%,
1/20/25
..
49
49
991617103.UG.FTS.B,
29.49%,
1/20/25
..
329
331
991617166.UG.FTS.B,
29.49%,
1/20/25
..
1,044
1,059
991617238.UG.FTS.B,
29.49%,
1/20/25
..
458
468
991617328.UG.FTS.B,
29.49%,
1/20/25
..
2,384
2,443
991617793.UG.FTS.B,
29.49%,
1/20/25
..
229
234
991618653.UG.FTS.B,
29.49%,
1/20/25
..
4,292
4,394
991619106.UG.FTS.B,
29.49%,
1/20/25
..
73
74
991619887.UG.FTS.B,
29.49%,
1/20/25
..
192
197
991620217.UG.FTS.B,
29.49%,
1/20/25
..
107
109
991620724.UG.FTS.B,
29.49%,
1/20/25
..
735
736
991620842.UG.FTS.B,
29.49%,
1/20/25
..
513
526
991621016.UG.FTS.B,
29.49%,
1/20/25
..
72
73
991621352.UG.FTS.B,
29.49%,
1/20/25
..
421
431
991621428.UG.FTS.B,
29.49%,
1/20/25
..
42
42
991621503.UG.FTS.B,
29.49%,
1/20/25
..
104
106
991621515.UG.FTS.B,
29.49%,
1/20/25
..
26
26
991621582.UG.FTS.B,
29.49%,
1/20/25
..
21
21
991624706.UG.FTS.B,
29.49%,
1/20/25
..
346
355
991624763.UG.FTS.B,
29.49%,
1/20/25
..
52
52
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
127
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991624810.UG.FTS.B,
29.49%,
1/20/25
..
$
338
$
347
991625081.UG.FTS.B,
29.49%,
1/20/25
..
4
4
991625388.UG.FTS.B,
29.49%,
1/20/25
..
–
–
991625976.UG.FTS.B,
29.49%,
1/20/25
..
191
195
991626310.UG.FTS.B,
29.49%,
1/20/25
..
273
276
991628720.UG.FTS.B,
29.49%,
1/20/25
..
93
95
991629047.UG.FTS.B,
29.49%,
1/20/25
..
173
176
991629054.UG.FTS.B,
29.49%,
1/20/25
..
153
157
991629363.UG.FTS.B,
29.49%,
1/20/25
..
77
59
991629958.UG.FTS.B,
29.49%,
1/20/25
..
42
42
991631113.UG.FTS.B,
29.49%,
1/20/25
..
165
169
991631672.UG.FTS.B,
29.49%,
1/20/25
..
61
60
991632109.UG.FTS.B,
29.49%,
1/20/25
..
155
159
991632522.UG.FTS.B,
29.49%,
1/20/25
..
75
76
991633281.UG.FTS.B,
29.49%,
1/20/25
..
183
187
991638517.UG.FTS.B,
29.49%,
1/20/25
..
188
193
991638723.UG.FTS.B,
29.49%,
1/20/25
..
357
365
991639454.UG.FTS.B,
29.49%,
1/20/25
..
69
70
991644250.UG.FTS.B,
29.49%,
1/20/25
..
90
92
991645061.UG.FTS.B,
29.49%,
1/20/25
..
58
(1)
991646997.UG.FTS.B,
29.49%,
1/20/25
..
37
37
991647202.UG.FTS.B,
29.49%,
1/20/25
..
30
31
991648065.UG.FTS.B,
29.49%,
1/20/25
..
225
231
991654187.UG.FTS.B,
29.49%,
1/20/25
..
221
222
991654599.UG.FTS.B,
29.49%,
1/20/25
..
74
75
991654619.UG.FTS.B,
29.49%,
1/20/25
..
950
973
991654755.UG.FTS.B,
29.49%,
1/20/25
..
300
300
991655092.UG.FTS.B,
29.49%,
1/20/25
..
901
918
991655178.UG.FTS.B,
29.49%,
1/20/25
..
238
243
991655877.UG.FTS.B,
29.49%,
1/20/25
..
124
126
991656048.UG.FTS.B,
29.49%,
1/20/25
..
314
321
991656357.UG.FTS.B,
29.49%,
1/20/25
..
570
583
991656434.UG.FTS.B,
29.49%,
1/20/25
..
540
547
991657357.UG.FTS.B,
29.49%,
1/20/25
..
1,805
1,843
991658873.UG.FTS.B,
29.49%,
1/20/25
..
44
44
991659587.UG.FTS.B,
29.49%,
1/20/25
..
284
289
991660055.UG.FTS.B,
29.49%,
1/20/25
..
49
49
991660718.UG.FTS.B,
29.49%,
1/20/25
..
394
403
991662133.UG.FTS.B,
29.49%,
1/20/25
..
54
55
991663116.UG.FTS.B,
29.49%,
1/20/25
..
72
73
991663176.UG.FTS.B,
29.49%,
1/20/25
..
132
134
991663567.UG.FTS.B,
29.49%,
1/20/25
..
270
267
991663765.UG.FTS.B,
29.49%,
1/20/25
..
363
359
991665207.UG.FTS.B,
29.49%,
1/20/25
..
116
115
991666604.UG.FTS.B,
29.49%,
1/20/25
..
949
973
991666806.UG.FTS.B,
29.49%,
1/20/25
..
56
57
991667437.UG.FTS.B,
29.49%,
1/20/25
..
149
150
991668579.UG.FTS.B,
29.49%,
1/20/25
..
178
180
991668949.UG.FTS.B,
29.49%,
1/20/25
..
91
93
991670007.UG.FTS.B,
29.49%,
1/20/25
..
213
219
991670103.UG.FTS.B,
29.49%,
1/20/25
..
958
981
991671415.UG.FTS.B,
29.49%,
1/20/25
..
14
14
991671651.UG.FTS.B,
29.49%,
1/20/25
..
3
3
991672222.UG.FTS.B,
29.49%,
1/20/25
..
474
486
991672277.UG.FTS.B,
29.49%,
1/20/25
..
76
78
991673903.UG.FTS.B,
29.49%,
1/20/25
..
1,233
1,263
991674593.UG.FTS.B,
29.49%,
1/20/25
..
704
713
991676079.UG.FTS.B,
29.49%,
1/20/25
..
387
396
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991678111.UG.FTS.B,
29.49%,
1/20/25
..
$
526
$
525
991679088.UG.FTS.B,
29.49%,
1/20/25
..
646
654
991679522.UG.FTS.B,
29.49%,
1/20/25
..
45
45
991681019.UG.FTS.B,
29.49%,
1/20/25
..
1,421
1,455
991681230.UG.FTS.B,
29.49%,
1/20/25
..
23
24
991682846.UG.FTS.B,
29.49%,
1/20/25
..
189
193
991683010.UG.FTS.B,
29.49%,
1/20/25
..
947
940
991686039.UG.FTS.B,
29.49%,
1/20/25
..
384
388
991689785.UG.FTS.B,
29.49%,
1/20/25
..
250
249
991690090.UG.FTS.B,
29.49%,
1/20/25
..
260
263
991691908.UG.FTS.B,
29.49%,
1/20/25
..
758
775
991692117.UG.FTS.B,
29.49%,
1/20/25
..
120
122
991692295.UG.FTS.B,
29.49%,
1/20/25
..
205
203
991692468.UG.FTS.B,
29.49%,
1/20/25
..
206
209
991692717.UG.FTS.B,
29.49%,
1/20/25
..
120
123
991692749.UG.FTS.B,
29.49%,
1/20/25
..
120
122
991693352.UG.FTS.B,
29.49%,
1/20/25
..
91
92
991693696.UG.FTS.B,
29.49%,
1/20/25
..
338
346
991696161.UG.FTS.B,
29.49%,
1/20/25
..
289
296
991698984.UG.FTS.B,
29.49%,
1/20/25
..
51
51
991700541.UG.FTS.B,
29.49%,
1/20/25
..
10
10
991701840.UG.FTS.B,
29.49%,
1/20/25
..
20
20
991702622.UG.FTS.B,
29.49%,
1/20/25
..
130
133
991703149.UG.FTS.B,
29.49%,
1/20/25
..
270
274
991703172.UG.FTS.B,
29.49%,
1/20/25
..
27
27
991703844.UG.FTS.B,
29.49%,
1/20/25
..
27
27
991704174.UG.FTS.B,
29.49%,
1/20/25
..
115
117
991704331.UG.FTS.B,
29.49%,
1/20/25
..
117
119
991704554.UG.FTS.B,
29.49%,
1/20/25
..
148
151
991705000.UG.FTS.B,
29.49%,
1/20/25
..
59
60
991706369.UG.FTS.B,
29.49%,
1/20/25
..
125
128
991706493.UG.FTS.B,
29.49%,
1/20/25
..
78
76
991706803.UG.FTS.B,
29.49%,
1/20/25
..
156
108
991708117.UG.FTS.B,
29.49%,
1/20/25
..
1,696
1,720
991709703.UG.FTS.B,
29.49%,
1/20/25
..
150
152
991710790.UG.FTS.B,
29.49%,
1/20/25
..
365
365
991712356.UG.FTS.B,
29.49%,
1/20/25
..
744
749
991713690.UG.FTS.B,
29.49%,
1/20/25
..
45
45
991714396.UG.FTS.B,
29.49%,
1/20/25
..
16
16
991714458.UG.FTS.B,
29.49%,
1/20/25
..
336
339
991714675.UG.FTS.B,
29.49%,
1/20/25
..
36
0
991715213.UG.FTS.B,
29.49%,
1/20/25
..
106
109
991715284.UG.FTS.B,
29.49%,
1/20/25
..
34
35
991716502.UG.FTS.B,
29.49%,
1/20/25
..
1,118
1,134
991716698.UG.FTS.B,
29.49%,
1/20/25
..
264
266
991717405.UG.FTS.B,
29.49%,
1/20/25
..
428
434
991717440.UG.FTS.B,
29.49%,
1/20/25
..
45
45
991718671.UG.FTS.B,
29.49%,
1/20/25
..
283
285
991718693.UG.FTS.B,
29.49%,
1/20/25
..
189
191
991718755.UG.FTS.B,
29.49%,
1/20/25
..
142
143
991720466.UG.FTS.B,
29.49%,
1/20/25
..
234
237
991724082.UG.FTS.B,
29.49%,
1/20/25
..
155
157
991724668.UG.FTS.B,
29.49%,
1/20/25
..
113
114
991724684.UG.FTS.B,
29.49%,
1/20/25
..
105
107
991725582.UG.FTS.B,
29.49%,
1/20/25
..
64
63
991726146.UG.FTS.B,
29.49%,
1/20/25
..
13
13
991726588.UG.FTS.B,
29.49%,
1/20/25
..
54
54
991726589.UG.FTS.B,
29.49%,
1/20/25
..
131
130
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991729024.UG.FTS.B,
29.49%,
1/20/25
..
$
201
$
203
991729282.UG.FTS.B,
29.49%,
1/20/25
..
433
438
991729967.UG.FTS.B,
29.49%,
1/20/25
..
418
422
991730560.UG.FTS.B,
29.49%,
1/20/25
..
1,200
1,183
991731119.UG.FTS.B,
29.49%,
1/20/25
..
2,491
2,518
991731378.UG.FTS.B,
29.49%,
1/20/25
..
113
114
991731411.UG.FTS.B,
29.49%,
1/20/25
..
752
756
991731675.UG.FTS.B,
29.49%,
1/20/25
..
108
110
991733097.UG.FTS.B,
29.49%,
1/20/25
..
114
115
991733527.UG.FTS.B,
29.49%,
1/20/25
..
133
134
991734979.UG.FTS.B,
29.49%,
1/20/25
..
218
220
991735630.UG.FTS.B,
29.49%,
1/20/25
..
58
59
991735905.UG.FTS.B,
29.49%,
1/20/25
..
132
133
991736419.UG.FTS.B,
29.49%,
1/20/25
..
117
119
991737012.UG.FTS.B,
29.49%,
1/20/25
..
225
228
991738695.UG.FTS.B,
29.49%,
1/20/25
..
1,961
1,988
991739576.UG.FTS.B,
29.49%,
1/20/25
..
925
930
991740285.UG.FTS.B,
29.49%,
1/20/25
..
539
539
991740302.UG.FTS.B,
29.49%,
1/20/25
..
207
209
991740404.UG.FTS.B,
29.49%,
1/20/25
..
100
7
991740432.UG.FTS.B,
29.49%,
1/20/25
..
331
335
991740760.UG.FTS.B,
29.49%,
1/20/25
..
113
115
991740817.UG.FTS.B,
29.49%,
1/20/25
..
60
5
991742409.UG.FTS.B,
29.49%,
1/20/25
..
69
70
991742496.UG.FTS.B,
29.49%,
1/20/25
..
101
103
991743758.UG.FTS.B,
29.49%,
1/20/25
..
–
–
991744452.UG.FTS.B,
29.49%,
1/20/25
..
202
14
991744616.UG.FTS.B,
29.49%,
1/20/25
..
87
89
991745338.UG.FTS.B,
29.49%,
1/20/25
..
141
143
991746253.UG.FTS.B,
29.49%,
1/20/25
..
130
(1)
991746498.UG.FTS.B,
29.49%,
1/20/25
..
109
111
991748138.UG.FTS.B,
29.49%,
1/20/25
..
30
2
991749257.UG.FTS.B,
29.49%,
1/20/25
..
144
146
991749486.UG.FTS.B,
29.49%,
1/20/25
..
245
247
991749746.UG.FTS.B,
29.49%,
1/20/25
..
942
943
991753458.UG.FTS.B,
29.49%,
1/20/25
..
226
227
991754900.UG.FTS.B,
29.49%,
1/20/25
..
26
26
991754938.UG.FTS.B,
29.49%,
1/20/25
..
158
160
991757492.UG.FTS.B,
29.49%,
1/20/25
..
93
95
991757760.UG.FTS.B,
29.49%,
1/20/25
..
574
581
991758540.UG.FTS.B,
29.49%,
1/20/25
..
156
158
991758753.UG.FTS.B,
29.49%,
1/20/25
..
110
112
991760132.UG.FTS.B,
29.49%,
1/20/25
..
75
76
991760331.UG.FTS.B,
29.49%,
1/20/25
..
21
21
991762243.UG.FTS.B,
29.49%,
1/20/25
..
175
176
991766510.UG.FTS.B,
29.49%,
1/20/25
..
128
128
991766938.UG.FTS.B,
29.49%,
1/20/25
..
254
257
991769449.UG.FTS.B,
29.49%,
1/20/25
..
562
570
991769491.UG.FTS.B,
29.49%,
1/20/25
..
203
200
991770982.UG.FTS.B,
29.49%,
1/20/25
..
51
51
991771072.UG.FTS.B,
29.49%,
1/20/25
..
288
292
991771215.UG.FTS.B,
29.49%,
1/20/25
..
200
203
991771223.UG.FTS.B,
29.49%,
1/20/25
..
330
326
991771844.UG.FTS.B,
29.49%,
1/20/25
..
132
132
991772041.UG.FTS.B,
29.49%,
1/20/25
..
376
381
991772146.UG.FTS.B,
29.49%,
1/20/25
..
115
116
991772216.UG.FTS.B,
29.49%,
1/20/25
..
188
190
991772619.UG.FTS.B,
29.49%,
1/20/25
..
2,364
2,378
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991772908.UG.FTS.B,
29.49%,
1/20/25
..
$
752
$
762
991774147.UG.FTS.B,
29.49%,
1/20/25
..
1,075
143
991775501.UG.FTS.B,
29.49%,
1/20/25
..
433
436
991779911.UG.FTS.B,
29.49%,
1/20/25
..
54
53
991781628.UG.FTS.B,
29.49%,
1/20/25
..
216
218
991782093.UG.FTS.B,
29.49%,
1/20/25
..
155
157
991782254.UG.FTS.B,
29.49%,
1/20/25
..
1,408
1,427
991783396.UG.FTS.B,
29.49%,
1/20/25
..
469
475
991783877.UG.FTS.B,
29.49%,
1/20/25
..
420
415
991783888.UG.FTS.B,
29.49%,
1/20/25
..
91
93
991679126.UG.FTS.B,
14.98%,
1/21/25
..
298
305
991713284.UG.FTS.B,
15.97%,
1/21/25
..
151
154
991771238.UG.FTS.B,
16.99%,
1/21/25
..
793
810
991655053.UG.FTS.B,
17.99%,
1/21/25
..
7,966
8,184
991793260.UG.FTS.B,
17.99%,
1/21/25
..
9,314
9,510
991697530.UG.FTS.B,
18.97%,
1/21/25
..
44
45
991749616.UG.FTS.B,
18.97%,
1/21/25
..
2,334
2,379
991764938.UG.FTS.B,
18.97%,
1/21/25
..
253
258
991790357.UG.FTS.B,
18.97%,
1/21/25
..
26
26
991650982.UG.FTS.B,
19.21%,
1/21/25
..
546
556
991691763.UG.FTS.B,
19.8%,
1/21/25
...
1,174
1,190
991749978.UG.FTS.B,
19.8%,
1/21/25
...
326
332
991780817.UG.FTS.B,
19.8%,
1/21/25
...
336
342
991785791.UG.FTS.B,
19.8%,
1/21/25
...
424
432
991791790.UG.FTS.B,
19.8%,
1/21/25
...
1,398
1,423
991699882.UG.FTS.B,
19.99%,
1/21/25
..
151
154
991716662.UG.FTS.B,
19.99%,
1/21/25
..
388
394
991722265.UG.FTS.B,
19.99%,
1/21/25
..
1,676
1,692
991757333.UG.FTS.B,
19.99%,
1/21/25
..
32
33
991757989.UG.FTS.B,
19.99%,
1/21/25
..
234
238
991761939.UG.FTS.B,
19.99%,
1/21/25
..
50
51
991700316.UG.FTS.B,
20.46%,
1/21/25
..
131
134
991762170.UG.FTS.B,
20.46%,
1/21/25
..
1,334
1,357
991653165.UG.FTS.B,
20.97%,
1/21/25
..
4,286
4,355
991676203.UG.FTS.B,
21.46%,
1/21/25
..
252
256
991697508.UG.FTS.B,
21.46%,
1/21/25
..
106
109
991700341.UG.FTS.B,
21.46%,
1/21/25
..
295
301
991756734.UG.FTS.B,
21.46%,
1/21/25
..
91
93
991757729.UG.FTS.B,
21.46%,
1/21/25
..
47
48
991739544.UG.FTS.B,
21.97%,
1/21/25
..
469
475
991648027.UG.FTS.B,
21.98%,
1/21/25
..
1,484
1,508
991658893.UG.FTS.B,
21.98%,
1/21/25
..
648
657
991660381.UG.FTS.B,
21.98%,
1/21/25
..
285
292
991707819.UG.FTS.B,
21.98%,
1/21/25
..
53
54
991715801.UG.FTS.B,
21.98%,
1/21/25
..
94
96
991720329.UG.FTS.B,
21.98%,
1/21/25
..
113
114
991737499.UG.FTS.B,
21.98%,
1/21/25
..
386
391
991673663.UG.FTS.B,
22.97%,
1/21/25
..
940
960
991673933.UG.FTS.B,
23.95%,
1/21/25
..
123
9
991689993.UG.FTS.B,
25.95%,
1/21/25
..
23
24
991776759.UG.FTS.B,
26.94%,
1/21/25
..
43
44
991703323.UG.FTS.B,
27.99%,
1/21/25
..
1,412
1,434
991728532.UG.FTS.B,
27.99%,
1/21/25
..
943
957
991729071.UG.FTS.B,
27.99%,
1/21/25
..
27
27
991741785.UG.FTS.B,
27.99%,
1/21/25
..
229
233
991758747.UG.FTS.B,
27.99%,
1/21/25
..
98
97
991771747.UG.FTS.B,
27.99%,
1/21/25
..
397
399
991629524.UG.FTS.B,
28.98%,
1/21/25
..
298
39
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
129
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991641192.UG.FTS.B,
28.98%,
1/21/25
..
$
1,540
$
1,546
991642567.UG.FTS.B,
28.98%,
1/21/25
..
442
450
991662823.UG.FTS.B,
28.98%,
1/21/25
..
324
329
991664049.UG.FTS.B,
28.98%,
1/21/25
..
198
198
991665576.UG.FTS.B,
28.98%,
1/21/25
..
665
682
991665938.UG.FTS.B,
28.98%,
1/21/25
..
273
276
991665964.UG.FTS.B,
28.98%,
1/21/25
..
123
127
991669520.UG.FTS.B,
28.98%,
1/21/25
..
84
85
991670622.UG.FTS.B,
28.98%,
1/21/25
..
597
610
991671300.UG.FTS.B,
28.98%,
1/21/25
..
374
380
991672054.UG.FTS.B,
28.98%,
1/21/25
..
106
105
991672619.UG.FTS.B,
28.98%,
1/21/25
..
38
38
991675079.UG.FTS.B,
28.98%,
1/21/25
..
851
864
991678858.UG.FTS.B,
28.98%,
1/21/25
..
184
189
991680869.UG.FTS.B,
28.98%,
1/21/25
..
41
42
991680977.UG.FTS.B,
28.98%,
1/21/25
..
1,147
1,150
991681162.UG.FTS.B,
28.98%,
1/21/25
..
243
249
991681791.UG.FTS.B,
28.98%,
1/21/25
..
948
972
991682680.UG.FTS.B,
28.98%,
1/21/25
..
332
341
991683019.UG.FTS.B,
28.98%,
1/21/25
..
379
389
991684086.UG.FTS.B,
28.98%,
1/21/25
..
52
53
991686463.UG.FTS.B,
28.98%,
1/21/25
..
607
623
991687816.UG.FTS.B,
28.98%,
1/21/25
..
568
583
991687989.UG.FTS.B,
28.98%,
1/21/25
..
339
348
991694207.UG.FTS.B,
28.98%,
1/21/25
..
209
212
991694819.UG.FTS.B,
28.98%,
1/21/25
..
871
885
991695760.UG.FTS.B,
28.98%,
1/21/25
..
28
28
991698062.UG.FTS.B,
28.98%,
1/21/25
..
188
193
991698321.UG.FTS.B,
28.98%,
1/21/25
..
40
39
991698961.UG.FTS.B,
28.98%,
1/21/25
..
180
182
991700702.UG.FTS.B,
28.98%,
1/21/25
..
1,621
1,649
991700940.UG.FTS.B,
28.98%,
1/21/25
..
344
353
991701470.UG.FTS.B,
28.98%,
1/21/25
..
435
442
991704902.UG.FTS.B,
28.98%,
1/21/25
..
108
111
991705041.UG.FTS.B,
28.98%,
1/21/25
..
189
192
991705300.UG.FTS.B,
28.98%,
1/21/25
..
589
591
991705981.UG.FTS.B,
28.98%,
1/21/25
..
53
54
991706808.UG.FTS.B,
28.98%,
1/21/25
..
698
704
991707538.UG.FTS.B,
28.98%,
1/21/25
..
7
7
991708246.UG.FTS.B,
28.98%,
1/21/25
..
459
471
991712983.UG.FTS.B,
28.98%,
1/21/25
..
159
158
991713492.UG.FTS.B,
28.98%,
1/21/25
..
19
19
991715240.UG.FTS.B,
28.98%,
1/21/25
..
170
173
991716289.UG.FTS.B,
28.98%,
1/21/25
..
1,148
1,167
991719757.UG.FTS.B,
28.98%,
1/21/25
..
141
143
991720924.UG.FTS.B,
28.98%,
1/21/25
..
175
175
991721447.UG.FTS.B,
28.98%,
1/21/25
..
472
480
991721849.UG.FTS.B,
28.98%,
1/21/25
..
1,511
1,536
991722494.UG.FTS.B,
28.98%,
1/21/25
..
19
19
991725073.UG.FTS.B,
28.98%,
1/21/25
..
129
132
991728243.UG.FTS.B,
28.98%,
1/21/25
..
38
38
991728724.UG.FTS.B,
28.98%,
1/21/25
..
14
14
991731033.UG.FTS.B,
28.98%,
1/21/25
..
393
51
991731239.UG.FTS.B,
28.98%,
1/21/25
..
1,577
1,585
991733515.UG.FTS.B,
28.98%,
1/21/25
..
134
136
991734989.UG.FTS.B,
28.98%,
1/21/25
..
69
68
991736947.UG.FTS.B,
28.98%,
1/21/25
..
49
50
991737585.UG.FTS.B,
28.98%,
1/21/25
..
441
445
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991740411.UG.FTS.B,
28.98%,
1/21/25
..
$
127
$
129
991740862.UG.FTS.B,
28.98%,
1/21/25
..
236
240
991741623.UG.FTS.B,
28.98%,
1/21/25
..
510
511
991742798.UG.FTS.B,
28.98%,
1/21/25
..
78
80
991744527.UG.FTS.B,
28.98%,
1/21/25
..
47
48
991749837.UG.FTS.B,
28.98%,
1/21/25
..
3,769
3,830
991752961.UG.FTS.B,
28.98%,
1/21/25
..
17
17
991756054.UG.FTS.B,
28.98%,
1/21/25
..
1,502
1,526
991761078.UG.FTS.B,
28.98%,
1/21/25
..
15
15
991761552.UG.FTS.B,
28.98%,
1/21/25
..
115
117
991761801.UG.FTS.B,
28.98%,
1/21/25
..
202
202
991761849.UG.FTS.B,
28.98%,
1/21/25
..
7
7
991765423.UG.FTS.B,
28.98%,
1/21/25
..
80
82
991766670.UG.FTS.B,
28.98%,
1/21/25
..
30
30
991767899.UG.FTS.B,
28.98%,
1/21/25
..
262
263
991768708.UG.FTS.B,
28.98%,
1/21/25
..
21
21
991770039.UG.FTS.B,
28.98%,
1/21/25
..
413
420
991774202.UG.FTS.B,
28.98%,
1/21/25
..
1,128
1,146
991775217.UG.FTS.B,
28.98%,
1/21/25
..
2,317
2,321
991784133.UG.FTS.B,
28.98%,
1/21/25
..
564
572
991788631.UG.FTS.B,
28.98%,
1/21/25
..
145
147
991638900.UG.FTS.B,
29.47%,
1/21/25
..
80
80
991633592.UG.FTS.B,
29.49%,
1/21/25
..
174
178
991633606.UG.FTS.B,
29.49%,
1/21/25
..
298
302
991638245.UG.FTS.B,
29.49%,
1/21/25
..
261
171
991642900.UG.FTS.B,
29.49%,
1/21/25
..
398
407
991644999.UG.FTS.B,
29.49%,
1/21/25
..
116
117
991662562.UG.FTS.B,
29.49%,
1/21/25
..
164
167
991663276.UG.FTS.B,
29.49%,
1/21/25
..
47
48
991663758.UG.FTS.B,
29.49%,
1/21/25
..
131
134
991663912.UG.FTS.B,
29.49%,
1/21/25
..
435
433
991664093.UG.FTS.B,
29.49%,
1/21/25
..
802
822
991664305.UG.FTS.B,
29.49%,
1/21/25
..
278
284
991664625.UG.FTS.B,
29.49%,
1/21/25
..
32
32
991665032.UG.FTS.B,
29.49%,
1/21/25
..
190
195
991665122.UG.FTS.B,
29.49%,
1/21/25
..
1,045
1,072
991666036.UG.FTS.B,
29.49%,
1/21/25
..
686
707
991666720.UG.FTS.B,
29.49%,
1/21/25
..
141
144
991668339.UG.FTS.B,
29.49%,
1/21/25
..
315
323
991669205.UG.FTS.B,
29.49%,
1/21/25
..
192
196
991670006.UG.FTS.B,
29.49%,
1/21/25
..
99
101
991670187.UG.FTS.B,
29.49%,
1/21/25
..
200
205
991671549.UG.FTS.B,
29.49%,
1/21/25
..
36
6
991671756.UG.FTS.B,
29.49%,
1/21/25
..
24
24
991672196.UG.FTS.B,
29.49%,
1/21/25
..
109
111
991673882.UG.FTS.B,
29.49%,
1/21/25
..
988
1,014
991674812.UG.FTS.B,
29.49%,
1/21/25
..
450
59
991674869.UG.FTS.B,
29.49%,
1/21/25
..
72
71
991675229.UG.FTS.B,
29.49%,
1/21/25
..
96
98
991678184.UG.FTS.B,
29.49%,
1/21/25
..
93
95
991678591.UG.FTS.B,
29.49%,
1/21/25
..
204
207
991679078.UG.FTS.B,
29.49%,
1/21/25
..
36
37
991680224.UG.FTS.B,
29.49%,
1/21/25
..
74
76
991681470.UG.FTS.B,
29.49%,
1/21/25
..
75
77
991681529.UG.FTS.B,
29.49%,
1/21/25
..
69
70
991683560.UG.FTS.B,
29.49%,
1/21/25
..
137
140
991684294.UG.FTS.B,
29.49%,
1/21/25
..
310
313
991685142.UG.FTS.B,
29.49%,
1/21/25
..
65
66
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991687042.UG.FTS.B,
29.49%,
1/21/25
..
$
470
$
466
991687977.UG.FTS.B,
29.49%,
1/21/25
..
98
13
991688094.UG.FTS.B,
29.49%,
1/21/25
..
1,290
1,319
991688964.UG.FTS.B,
29.49%,
1/21/25
..
52
53
991689406.UG.FTS.B,
29.49%,
1/21/25
..
44
45
991689751.UG.FTS.B,
29.49%,
1/21/25
..
304
311
991690159.UG.FTS.B,
29.49%,
1/21/25
..
2,844
2,908
991690545.UG.FTS.B,
29.49%,
1/21/25
..
86
85
991690832.UG.FTS.B,
29.49%,
1/21/25
..
142
146
991691552.UG.FTS.B,
29.49%,
1/21/25
..
171
175
991691912.UG.FTS.B,
29.49%,
1/21/25
..
240
158
991693012.UG.FTS.B,
29.49%,
1/21/25
..
271
277
991694190.UG.FTS.B,
29.49%,
1/21/25
..
264
270
991695343.UG.FTS.B,
29.49%,
1/21/25
..
43
43
991695921.UG.FTS.B,
29.49%,
1/21/25
..
947
970
991699221.UG.FTS.B,
29.49%,
1/21/25
..
–
–
991699877.UG.FTS.B,
29.49%,
1/21/25
..
264
267
991700678.UG.FTS.B,
29.49%,
1/21/25
..
147
(2)
991700813.UG.FTS.B,
29.49%,
1/21/25
..
407
413
991700885.UG.FTS.B,
29.49%,
1/21/25
..
23
23
991701385.UG.FTS.B,
29.49%,
1/21/25
..
32
33
991704244.UG.FTS.B,
29.49%,
1/21/25
..
517
523
991704271.UG.FTS.B,
29.49%,
1/21/25
..
14
14
991706026.UG.FTS.B,
29.49%,
1/21/25
..
146
149
991709042.UG.FTS.B,
29.49%,
1/21/25
..
363
366
991710343.UG.FTS.B,
29.49%,
1/21/25
..
605
615
991710656.UG.FTS.B,
29.49%,
1/21/25
..
111
114
991711411.UG.FTS.B,
29.49%,
1/21/25
..
77
79
991712502.UG.FTS.B,
29.49%,
1/21/25
..
139
140
991712669.UG.FTS.B,
29.49%,
1/21/25
..
192
191
991713138.UG.FTS.B,
29.49%,
1/21/25
..
17
17
991713287.UG.FTS.B,
29.49%,
1/21/25
..
534
542
991714196.UG.FTS.B,
29.49%,
1/21/25
..
87
87
991715882.UG.FTS.B,
29.49%,
1/21/25
..
1,548
1,569
991716170.UG.FTS.B,
29.49%,
1/21/25
..
88
90
991717859.UG.FTS.B,
29.49%,
1/21/25
..
472
479
991717914.UG.FTS.B,
29.49%,
1/21/25
..
511
518
991718350.UG.FTS.B,
29.49%,
1/21/25
..
283
287
991719451.UG.FTS.B,
29.49%,
1/21/25
..
378
387
991720068.UG.FTS.B,
29.49%,
1/21/25
..
2,353
2,388
991721365.UG.FTS.B,
29.49%,
1/21/25
..
142
145
991721576.UG.FTS.B,
29.49%,
1/21/25
..
92
94
991721973.UG.FTS.B,
29.49%,
1/21/25
..
127
128
991722825.UG.FTS.B,
29.49%,
1/21/25
..
661
671
991723176.UG.FTS.B,
29.49%,
1/21/25
..
283
288
991728056.UG.FTS.B,
29.49%,
1/21/25
..
209
212
991728328.UG.FTS.B,
29.49%,
1/21/25
..
174
175
991731609.UG.FTS.B,
29.49%,
1/21/25
..
113
115
991731739.UG.FTS.B,
29.49%,
1/21/25
..
196
134
991732982.UG.FTS.B,
29.49%,
1/21/25
..
69
70
991736128.UG.FTS.B,
29.49%,
1/21/25
..
93
92
991738527.UG.FTS.B,
29.49%,
1/21/25
..
79
81
991738714.UG.FTS.B,
29.49%,
1/21/25
..
380
386
991739811.UG.FTS.B,
29.49%,
1/21/25
..
91
93
991739901.UG.FTS.B,
29.49%,
1/21/25
..
152
153
991740248.UG.FTS.B,
29.49%,
1/21/25
..
330
334
991740528.UG.FTS.B,
29.49%,
1/21/25
..
2,830
2,870
991740944.UG.FTS.B,
29.49%,
1/21/25
..
255
255
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991741010.UG.FTS.B,
29.49%,
1/21/25
..
$
165
$
168
991742356.UG.FTS.B,
29.49%,
1/21/25
..
41
41
991743923.UG.FTS.B,
29.49%,
1/21/25
..
599
414
991743959.UG.FTS.B,
29.49%,
1/21/25
..
390
394
991746026.UG.FTS.B,
29.49%,
1/21/25
..
231
233
991747407.UG.FTS.B,
29.49%,
1/21/25
..
14
14
991749631.UG.FTS.B,
29.49%,
1/21/25
..
214
212
991750066.UG.FTS.B,
29.49%,
1/21/25
..
377
382
991750973.UG.FTS.B,
29.49%,
1/21/25
..
46
47
991751329.UG.FTS.B,
29.49%,
1/21/25
..
34
35
991751558.UG.FTS.B,
29.49%,
1/21/25
..
3,504
3,551
991752386.UG.FTS.B,
29.49%,
1/21/25
..
11
11
991753629.UG.FTS.B,
29.49%,
1/21/25
..
24
24
991755245.UG.FTS.B,
29.49%,
1/21/25
..
45
46
991755790.UG.FTS.B,
29.49%,
1/21/25
..
126
127
991756064.UG.FTS.B,
29.49%,
1/21/25
..
44
44
991757964.UG.FTS.B,
29.49%,
1/21/25
..
276
279
991758072.UG.FTS.B,
29.49%,
1/21/25
..
41
41
991758421.UG.FTS.B,
29.49%,
1/21/25
..
175
177
991759331.UG.FTS.B,
29.49%,
1/21/25
..
7
7
991759963.UG.FTS.B,
29.49%,
1/21/25
..
44
45
991759964.UG.FTS.B,
29.49%,
1/21/25
..
84
86
991761177.UG.FTS.B,
29.49%,
1/21/25
..
120
121
991761241.UG.FTS.B,
29.49%,
1/21/25
..
80
82
991763850.UG.FTS.B,
29.49%,
1/21/25
..
52
53
991765180.UG.FTS.B,
29.49%,
1/21/25
..
14
14
991765747.UG.FTS.B,
29.49%,
1/21/25
..
69
70
991766135.UG.FTS.B,
29.49%,
1/21/25
..
10
10
991771018.UG.FTS.B,
29.49%,
1/21/25
..
53
54
991771114.UG.FTS.B,
29.49%,
1/21/25
..
3
3
991771877.UG.FTS.B,
29.49%,
1/21/25
..
1,223
1,241
991772833.UG.FTS.B,
29.49%,
1/21/25
..
234
243
991773308.UG.FTS.B,
29.49%,
1/21/25
..
127
126
991773655.UG.FTS.B,
29.49%,
1/21/25
..
282
286
991774166.UG.FTS.B,
29.49%,
1/21/25
..
91
93
991774371.UG.FTS.B,
29.49%,
1/21/25
..
180
13
991774631.UG.FTS.B,
29.49%,
1/21/25
..
353
355
991774945.UG.FTS.B,
29.49%,
1/21/25
..
440
288
991776264.UG.FTS.B,
29.49%,
1/21/25
..
436
432
991777444.UG.FTS.B,
29.49%,
1/21/25
..
138
138
991777636.UG.FTS.B,
29.49%,
1/21/25
..
154
155
991778434.UG.FTS.B,
29.49%,
1/21/25
..
10
10
991779204.UG.FTS.B,
29.49%,
1/21/25
..
124
125
991780986.UG.FTS.B,
29.49%,
1/21/25
..
78
6
991781479.UG.FTS.B,
29.49%,
1/21/25
..
15
15
991783533.UG.FTS.B,
29.49%,
1/21/25
..
147
146
991783537.UG.FTS.B,
29.49%,
1/21/25
..
192
193
991784118.UG.FTS.B,
29.49%,
1/21/25
..
558
564
991784986.UG.FTS.B,
29.49%,
1/21/25
..
183
186
991785876.UG.FTS.B,
29.49%,
1/21/25
..
386
389
991786017.UG.FTS.B,
29.49%,
1/21/25
..
611
619
991789834.UG.FTS.B,
29.49%,
1/21/25
..
3
3
991792227.UG.FTS.B,
29.49%,
1/21/25
..
469
473
991683198.UG.FTS.B,
14.98%,
1/22/25
..
467
480
991718275.UG.FTS.B,
14.98%,
1/22/25
..
1,865
1,917
991737948.UG.FTS.B,
14.98%,
1/22/25
..
619
632
991790203.UG.FTS.B,
14.98%,
1/22/25
..
174
178
991756518.UG.FTS.B,
15%,
1/22/25
.....
251
257
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
131
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991690554.UG.FTS.B,
15.97%,
1/22/25
..
$
2,049
$
2,107
991754215.UG.FTS.B,
15.97%,
1/22/25
..
215
220
991801345.UG.FTS.B,
15.97%,
1/22/25
..
930
951
991720895.UG.FTS.B,
16.99%,
1/22/25
..
4,844
5,011
991775455.UG.FTS.B,
16.99%,
1/22/25
..
1,305
1,333
991802447.UG.FTS.B,
16.99%,
1/22/25
..
4,654
4,756
991698551.UG.FTS.B,
17.99%,
1/22/25
..
604
621
991737072.UG.FTS.B,
17.99%,
1/22/25
..
696
711
991737115.UG.FTS.B,
17.99%,
1/22/25
..
656
669
991634646.UG.FTS.B,
18.97%,
1/22/25
..
471
483
991687893.UG.FTS.B,
18.97%,
1/22/25
..
923
942
991707935.UG.FTS.B,
18.97%,
1/22/25
..
444
453
991718040.UG.FTS.B,
18.97%,
1/22/25
..
290
299
991749374.UG.FTS.B,
18.97%,
1/22/25
..
1
1
991647527.UG.FTS.B,
19.21%,
1/22/25
..
34
34
991685413.UG.FTS.B,
19.21%,
1/22/25
..
199
204
991691716.UG.FTS.B,
19.21%,
1/22/25
..
2,344
2,406
991705742.UG.FTS.B,
19.21%,
1/22/25
..
1,631
1,674
991719610.UG.FTS.B,
19.21%,
1/22/25
..
1,873
1,922
991739536.UG.FTS.B,
19.8%,
1/22/25
...
366
368
991789966.UG.FTS.B,
19.8%,
1/22/25
...
267
272
991643928.UG.FTS.B,
19.97%,
1/22/25
..
148
151
991674152.UG.FTS.B,
19.99%,
1/22/25
..
751
747
991681468.UG.FTS.B,
19.99%,
1/22/25
..
8
8
991683557.UG.FTS.B,
19.99%,
1/22/25
..
2,820
2,899
991699543.UG.FTS.B,
19.99%,
1/22/25
..
236
236
991756568.UG.FTS.B,
19.99%,
1/22/25
..
241
245
991761309.UG.FTS.B,
19.99%,
1/22/25
..
7
7
991788027.UG.FTS.B,
19.99%,
1/22/25
..
236
240
991798308.UG.FTS.B,
19.99%,
1/22/25
..
62
63
991760190.UG.FTS.B,
20.46%,
1/22/25
..
28
28
991662768.UG.FTS.B,
20.97%,
1/22/25
..
143
146
991725447.UG.FTS.B,
20.97%,
1/22/25
..
83
85
991656133.UG.FTS.B,
21.46%,
1/22/25
..
463
473
991695092.UG.FTS.B,
21.46%,
1/22/25
..
422
427
991754484.UG.FTS.B,
21.46%,
1/22/25
..
169
172
991757748.UG.FTS.B,
21.46%,
1/22/25
..
6
6
991779605.UG.FTS.B,
21.46%,
1/22/25
..
117
120
991637211.UG.FTS.B,
21.97%,
1/22/25
..
212
217
991667360.UG.FTS.B,
21.98%,
1/22/25
..
106
1
991678173.UG.FTS.B,
21.98%,
1/22/25
..
123
125
991710476.UG.FTS.B,
21.98%,
1/22/25
..
46
47
991682011.UG.FTS.B,
22.97%,
1/22/25
..
450
453
991801534.UG.FTS.B,
22.97%,
1/22/25
..
140
143
991671050.UG.FTS.B,
23.95%,
1/22/25
..
131
133
991672498.UG.FTS.B,
23.95%,
1/22/25
..
164
167
991676913.UG.FTS.B,
23.95%,
1/22/25
..
1,888
1,927
991709833.UG.FTS.B,
23.95%,
1/22/25
..
23
23
991714969.UG.FTS.B,
25.95%,
1/22/25
..
141
142
991629369.UG.FTS.B,
26.94%,
1/22/25
..
114
116
991652030.UG.FTS.B,
26.94%,
1/22/25
..
166
169
991664671.UG.FTS.B,
26.94%,
1/22/25
..
174
177
991701628.UG.FTS.B,
27.99%,
1/22/25
..
33
34
991629638.UG.FTS.B,
28.98%,
1/22/25
..
245
252
991632809.UG.FTS.B,
28.98%,
1/22/25
..
160
164
991638269.UG.FTS.B,
28.98%,
1/22/25
..
35
35
991653648.UG.FTS.B,
28.98%,
1/22/25
..
74
76
991654067.UG.FTS.B,
28.98%,
1/22/25
..
1,214
1,247
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991655233.UG.FTS.B,
28.98%,
1/22/25
..
$
261
$
269
991655297.UG.FTS.B,
28.98%,
1/22/25
..
281
288
991655490.UG.FTS.B,
28.98%,
1/22/25
..
1,830
1,851
991655916.UG.FTS.B,
28.98%,
1/22/25
..
209
215
991657460.UG.FTS.B,
28.98%,
1/22/25
..
481
494
991662161.UG.FTS.B,
28.98%,
1/22/25
..
28
28
991662231.UG.FTS.B,
28.98%,
1/22/25
..
123
125
991662724.UG.FTS.B,
28.98%,
1/22/25
..
60
61
991675418.UG.FTS.B,
28.98%,
1/22/25
..
122
122
991675901.UG.FTS.B,
28.98%,
1/22/25
..
6
6
991678788.UG.FTS.B,
28.98%,
1/22/25
..
399
398
991683610.UG.FTS.B,
28.98%,
1/22/25
..
137
140
991683939.UG.FTS.B,
28.98%,
1/22/25
..
22
22
991694072.UG.FTS.B,
28.98%,
1/22/25
..
789
810
991698065.UG.FTS.B,
28.98%,
1/22/25
..
561
570
991701337.UG.FTS.B,
28.98%,
1/22/25
..
5
5
991703503.UG.FTS.B,
28.98%,
1/22/25
..
11
11
991709563.UG.FTS.B,
28.98%,
1/22/25
..
31
31
991711153.UG.FTS.B,
28.98%,
1/22/25
..
71
72
991718046.UG.FTS.B,
28.98%,
1/22/25
..
756
776
991720046.UG.FTS.B,
28.98%,
1/22/25
..
277
284
991722351.UG.FTS.B,
28.98%,
1/22/25
..
945
971
991723958.UG.FTS.B,
28.98%,
1/22/25
..
119
119
991725876.UG.FTS.B,
28.98%,
1/22/25
..
8
8
991752444.UG.FTS.B,
28.98%,
1/22/25
..
5
5
991758512.UG.FTS.B,
28.98%,
1/22/25
..
71
72
991759145.UG.FTS.B,
28.98%,
1/22/25
..
14
14
991763204.UG.FTS.B,
28.98%,
1/22/25
..
725
737
991766379.UG.FTS.B,
28.98%,
1/22/25
..
170
172
991777107.UG.FTS.B,
28.98%,
1/22/25
..
42
3
991783308.UG.FTS.B,
28.98%,
1/22/25
..
511
519
991802680.UG.FTS.B,
28.98%,
1/22/25
..
161
164
991628550.UG.FTS.B,
29.49%,
1/22/25
..
99
102
991632487.UG.FTS.B,
29.49%,
1/22/25
..
163
168
991633634.UG.FTS.B,
29.49%,
1/22/25
..
120
123
991634002.UG.FTS.B,
29.49%,
1/22/25
..
4,831
4,893
991634061.UG.FTS.B,
29.49%,
1/22/25
..
236
242
991634393.UG.FTS.B,
29.49%,
1/22/25
..
3,207
3,258
991635800.UG.FTS.B,
29.49%,
1/22/25
..
15
15
991635837.UG.FTS.B,
29.49%,
1/22/25
..
168
(2)
991636661.UG.FTS.B,
29.49%,
1/22/25
..
2,600
2,661
991642369.UG.FTS.B,
29.49%,
1/22/25
..
46
46
991642874.UG.FTS.B,
29.49%,
1/22/25
..
102
104
991643689.UG.FTS.B,
29.49%,
1/22/25
..
198
26
991644780.UG.FTS.B,
29.49%,
1/22/25
..
35
36
991644808.UG.FTS.B,
29.49%,
1/22/25
..
91
93
991646259.UG.FTS.B,
29.49%,
1/22/25
..
683
700
991647696.UG.FTS.B,
29.49%,
1/22/25
..
22
22
991649926.UG.FTS.B,
29.49%,
1/22/25
..
600
601
991650009.UG.FTS.B,
29.49%,
1/22/25
..
57
58
991650045.UG.FTS.B,
29.49%,
1/22/25
..
144
19
991653804.UG.FTS.B,
29.49%,
1/22/25
..
501
514
991654147.UG.FTS.B,
29.49%,
1/22/25
..
84
86
991658593.UG.FTS.B,
29.49%,
1/22/25
..
175
177
991661478.UG.FTS.B,
29.49%,
1/22/25
..
1,286
93
991663564.UG.FTS.B,
29.49%,
1/22/25
..
1,507
1,536
991664068.UG.FTS.B,
29.49%,
1/22/25
..
152
20
991665961.UG.FTS.B,
29.49%,
1/22/25
..
25
25
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
132
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991666466.UG.FTS.B,
29.49%,
1/22/25
..
$
2,374
$
2,404
991671251.UG.FTS.B,
29.49%,
1/22/25
..
44
44
991672394.UG.FTS.B,
29.49%,
1/22/25
..
105
107
991678367.UG.FTS.B,
29.49%,
1/22/25
..
7
7
991678636.UG.FTS.B,
29.49%,
1/22/25
..
131
132
991679933.UG.FTS.B,
29.49%,
1/22/25
..
54
53
991682094.UG.FTS.B,
29.49%,
1/22/25
..
759
777
991688247.UG.FTS.B,
29.49%,
1/22/25
..
142
146
991696607.UG.FTS.B,
29.49%,
1/22/25
..
259
258
991703217.UG.FTS.B,
29.49%,
1/22/25
..
183
182
991707159.UG.FTS.B,
29.49%,
1/22/25
..
25
25
991710294.UG.FTS.B,
29.49%,
1/22/25
..
92
94
991713002.UG.FTS.B,
29.49%,
1/22/25
..
19
19
991713033.UG.FTS.B,
29.49%,
1/22/25
..
3
3
991713706.UG.FTS.B,
29.49%,
1/22/25
..
136
138
991718289.UG.FTS.B,
29.49%,
1/22/25
..
1,138
1,166
991718290.UG.FTS.B,
29.49%,
1/22/25
..
179
181
991720578.UG.FTS.B,
29.49%,
1/22/25
..
284
291
991736296.UG.FTS.B,
29.49%,
1/22/25
..
122
124
991746532.UG.FTS.B,
29.49%,
1/22/25
..
1,458
194
991747337.UG.FTS.B,
29.49%,
1/22/25
..
60
61
991749787.UG.FTS.B,
29.49%,
1/22/25
..
330
330
991751645.UG.FTS.B,
29.49%,
1/22/25
..
114
116
991752337.UG.FTS.B,
29.49%,
1/22/25
..
342
347
991752703.UG.FTS.B,
29.49%,
1/22/25
..
16
16
991752883.UG.FTS.B,
29.49%,
1/22/25
..
47
48
991754988.UG.FTS.B,
29.49%,
1/22/25
..
6
6
991755018.UG.FTS.B,
29.49%,
1/22/25
..
201
204
991758600.UG.FTS.B,
29.49%,
1/22/25
..
39
40
991758788.UG.FTS.B,
29.49%,
1/22/25
..
307
312
991761249.UG.FTS.B,
29.49%,
1/22/25
..
9
9
991761733.UG.FTS.B,
29.49%,
1/22/25
..
10
10
991763411.UG.FTS.B,
29.49%,
1/22/25
..
13
13
991764307.UG.FTS.B,
29.49%,
1/22/25
..
31
32
991765455.UG.FTS.B,
29.49%,
1/22/25
..
329
334
991765762.UG.FTS.B,
29.49%,
1/22/25
..
12
12
991771854.UG.FTS.B,
29.49%,
1/22/25
..
753
765
991773156.UG.FTS.B,
29.49%,
1/22/25
..
482
491
991773711.UG.FTS.B,
29.49%,
1/22/25
..
1,139
1,146
991774923.UG.FTS.B,
29.49%,
1/22/25
..
145
145
991779420.UG.FTS.B,
29.49%,
1/22/25
..
480
477
991783612.UG.FTS.B,
29.49%,
1/22/25
..
2,875
2,919
991783625.UG.FTS.B,
29.49%,
1/22/25
..
132
133
991784478.UG.FTS.B,
29.49%,
1/22/25
..
38
38
991787661.UG.FTS.B,
29.49%,
1/22/25
..
59
60
991792431.UG.FTS.B,
29.49%,
1/22/25
..
1,533
1,523
991792565.UG.FTS.B,
29.49%,
1/22/25
..
38
39
991794136.UG.FTS.B,
29.49%,
1/22/25
..
186
186
991798587.UG.FTS.B,
29.49%,
1/22/25
..
47
47
991798589.UG.FTS.B,
29.49%,
1/22/25
..
7
8
991802876.UG.FTS.B,
29.49%,
1/22/25
..
469
473
991806840.UG.FTS.B,
29.49%,
1/22/25
..
–
–
991808603.UG.FTS.B,
29.49%,
1/22/25
..
1
1
991808836.UG.FTS.B,
29.49%,
1/22/25
..
43
43
991778465.UG.FTS.B,
29.99%,
1/22/25
..
50
51
991720287.UG.FTS.B,
14.97%,
1/23/25
..
963
972
991773581.UG.FTS.B,
14.97%,
1/23/25
..
2,692
2,721
991636779.UG.FTS.B,
14.98%,
1/23/25
..
147
150
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991673294.UG.FTS.B,
14.98%,
1/23/25
..
$
5,179
$
5,325
991685301.UG.FTS.B,
14.98%,
1/23/25
..
1,312
1,349
991810697.UG.FTS.B,
14.98%,
1/23/25
..
1,394
1,424
991640768.UG.FTS.B,
15%,
1/23/25
.....
353
360
991669666.UG.FTS.B,
15.97%,
1/23/25
..
235
242
991720270.UG.FTS.B,
16.99%,
1/23/25
..
837
861
991743124.UG.FTS.B,
16.99%,
1/23/25
..
316
321
991724639.UG.FTS.B,
17.99%,
1/23/25
..
225
228
991732570.UG.FTS.B,
17.99%,
1/23/25
..
394
244
991759633.UG.FTS.B,
17.99%,
1/23/25
..
7
7
991806652.UG.FTS.B,
17.99%,
1/23/25
..
516
526
991713762.UG.FTS.B,
18.21%,
1/23/25
..
315
319
991807503.UG.FTS.B,
18.21%,
1/23/25
..
47
48
991629464.UG.FTS.B,
18.97%,
1/23/25
..
125
127
991633176.UG.FTS.B,
18.97%,
1/23/25
..
4,177
2,521
991634874.UG.FTS.B,
18.97%,
1/23/25
..
1,884
1,935
991637138.UG.FTS.B,
18.97%,
1/23/25
..
639
656
991652563.UG.FTS.B,
18.97%,
1/23/25
..
1,744
1,790
991654901.UG.FTS.B,
18.97%,
1/23/25
..
9,407
9,660
991665228.UG.FTS.B,
18.97%,
1/23/25
..
843
866
991714902.UG.FTS.B,
18.97%,
1/23/25
..
231
238
991732049.UG.FTS.B,
18.97%,
1/23/25
..
1,542
1,573
991802570.UG.FTS.B,
18.97%,
1/23/25
..
1,015
1,035
991655628.UG.FTS.B,
19.21%,
1/23/25
..
469
481
991700455.UG.FTS.B,
19.21%,
1/23/25
..
410
421
991708308.UG.FTS.B,
19.21%,
1/23/25
..
1,850
1,886
991720395.UG.FTS.B,
19.21%,
1/23/25
..
562
577
991723070.UG.FTS.B,
19.21%,
1/23/25
..
1,874
1,923
991774744.UG.FTS.B,
19.21%,
1/23/25
..
14,013
14,283
991800189.UG.FTS.B,
19.21%,
1/23/25
..
15
16
991801084.UG.FTS.B,
19.21%,
1/23/25
..
1,026
1,045
991658233.UG.FTS.B,
19.8%,
1/23/25
...
942
966
991666998.UG.FTS.B,
19.8%,
1/23/25
...
191
197
991669289.UG.FTS.B,
19.8%,
1/23/25
...
361
368
991681904.UG.FTS.B,
19.8%,
1/23/25
...
766
788
991772614.UG.FTS.B,
19.8%,
1/23/25
...
3,365
3,425
991792267.UG.FTS.B,
19.8%,
1/23/25
...
2,152
2,170
991793572.UG.FTS.B,
19.8%,
1/23/25
...
1,867
1,901
991817217.UG.FTS.B,
19.8%,
1/23/25
...
72
74
991632705.UG.FTS.B,
19.99%,
1/23/25
..
2,546
2,618
991655150.UG.FTS.B,
19.99%,
1/23/25
..
814
828
991671970.UG.FTS.B,
19.99%,
1/23/25
..
341
351
991679224.UG.FTS.B,
19.99%,
1/23/25
..
305
309
991778390.UG.FTS.B,
19.99%,
1/23/25
..
8
8
991811950.UG.FTS.B,
19.99%,
1/23/25
..
241
245
991634057.UG.FTS.B,
20.46%,
1/23/25
..
33
33
991665786.UG.FTS.B,
20.46%,
1/23/25
..
278
285
991701667.UG.FTS.B,
20.46%,
1/23/25
..
181
186
991718868.UG.FTS.B,
20.46%,
1/23/25
..
328
337
991722899.UG.FTS.B,
20.46%,
1/23/25
..
281
288
991786741.UG.FTS.B,
20.46%,
1/23/25
..
15
16
991714788.UG.FTS.B,
20.97%,
1/23/25
..
10
11
991735353.UG.FTS.B,
20.97%,
1/23/25
..
85
87
991705904.UG.FTS.B,
20.98%,
1/23/25
..
109
112
991638426.UG.FTS.B,
21.46%,
1/23/25
..
1,375
1,395
991653986.UG.FTS.B,
21.46%,
1/23/25
..
407
409
991661446.UG.FTS.B,
21.46%,
1/23/25
..
114
117
991677495.UG.FTS.B,
21.46%,
1/23/25
..
180
184
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
133
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991688517.UG.FTS.B,
21.46%,
1/23/25
..
$
404
$
409
991692003.UG.FTS.B,
21.46%,
1/23/25
..
5
5
991693269.UG.FTS.B,
21.46%,
1/23/25
..
125
127
991700214.UG.FTS.B,
21.46%,
1/23/25
..
305
312
991710233.UG.FTS.B,
21.46%,
1/23/25
..
612
626
991745840.UG.FTS.B,
21.46%,
1/23/25
..
614
622
991760990.UG.FTS.B,
21.46%,
1/23/25
..
84
84
991799351.UG.FTS.B,
21.46%,
1/23/25
..
18
18
991666562.UG.FTS.B,
21.97%,
1/23/25
..
377
386
991639095.UG.FTS.B,
21.98%,
1/23/25
..
217
222
991641726.UG.FTS.B,
21.98%,
1/23/25
..
1,049
1,063
991663664.UG.FTS.B,
21.98%,
1/23/25
..
95
96
991759715.UG.FTS.B,
21.98%,
1/23/25
..
564
572
991786528.UG.FTS.B,
21.98%,
1/23/25
..
171
173
991660992.UG.FTS.B,
22.48%,
1/23/25
..
24
24
991698290.UG.FTS.B,
22.97%,
1/23/25
..
1,204
1,220
991644696.UG.FTS.B,
23.95%,
1/23/25
..
164
166
991788954.UG.FTS.B,
23.95%,
1/23/25
..
20
20
991784495.UG.FTS.B,
25.98%,
1/23/25
..
222
225
991666003.UG.FTS.B,
26.94%,
1/23/25
..
157
160
991693097.UG.FTS.B,
26.94%,
1/23/25
..
513
518
991750688.UG.FTS.B,
26.94%,
1/23/25
..
59
60
991629548.UG.FTS.B,
28.98%,
1/23/25
..
406
417
991631431.UG.FTS.B,
28.98%,
1/23/25
..
207
27
991635683.UG.FTS.B,
28.98%,
1/23/25
..
542
547
991635693.UG.FTS.B,
28.98%,
1/23/25
..
191
196
991636074.UG.FTS.B,
28.98%,
1/23/25
..
838
861
991636843.UG.FTS.B,
28.98%,
1/23/25
..
527
534
991643376.UG.FTS.B,
28.98%,
1/23/25
..
23
23
991644625.UG.FTS.B,
28.98%,
1/23/25
..
204
210
991644719.UG.FTS.B,
28.98%,
1/23/25
..
879
894
991655367.UG.FTS.B,
28.98%,
1/23/25
..
900
579
991656845.UG.FTS.B,
28.98%,
1/23/25
..
190
196
991661357.UG.FTS.B,
28.98%,
1/23/25
..
302
310
991662149.UG.FTS.B,
28.98%,
1/23/25
..
455
458
991665357.UG.FTS.B,
28.98%,
1/23/25
..
2,092
2,123
991665490.UG.FTS.B,
28.98%,
1/23/25
..
476
489
991667605.UG.FTS.B,
28.98%,
1/23/25
..
638
656
991667673.UG.FTS.B,
28.98%,
1/23/25
..
138
140
991667998.UG.FTS.B,
28.98%,
1/23/25
..
1,973
1,967
991671053.UG.FTS.B,
28.98%,
1/23/25
..
44
44
991671248.UG.FTS.B,
28.98%,
1/23/25
..
181
186
991671791.UG.FTS.B,
28.98%,
1/23/25
..
318
321
991675411.UG.FTS.B,
28.98%,
1/23/25
..
811
814
991676667.UG.FTS.B,
28.98%,
1/23/25
..
350
356
991677694.UG.FTS.B,
28.98%,
1/23/25
..
1,216
1,237
991679075.UG.FTS.B,
28.98%,
1/23/25
..
84
86
991679449.UG.FTS.B,
28.98%,
1/23/25
..
8
8
991684901.UG.FTS.B,
28.98%,
1/23/25
..
155
157
991693174.UG.FTS.B,
28.98%,
1/23/25
..
237
244
991693333.UG.FTS.B,
28.98%,
1/23/25
..
272
275
991695544.UG.FTS.B,
28.98%,
1/23/25
..
223
229
991696216.UG.FTS.B,
28.98%,
1/23/25
..
41
42
991700691.UG.FTS.B,
28.98%,
1/23/25
..
72
74
991713738.UG.FTS.B,
28.98%,
1/23/25
..
18
18
991714226.UG.FTS.B,
28.98%,
1/23/25
..
182
185
991719179.UG.FTS.B,
28.98%,
1/23/25
..
2,831
2,878
991719766.UG.FTS.B,
28.98%,
1/23/25
..
473
486
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991720618.UG.FTS.B,
28.98%,
1/23/25
..
$
118
$
121
991722435.UG.FTS.B,
28.98%,
1/23/25
..
984
129
991725624.UG.FTS.B,
28.98%,
1/23/25
..
125
127
991734227.UG.FTS.B,
28.98%,
1/23/25
..
298
303
991736765.UG.FTS.B,
28.98%,
1/23/25
..
340
345
991739642.UG.FTS.B,
28.98%,
1/23/25
..
94
96
991740876.UG.FTS.B,
28.98%,
1/23/25
..
4,329
4,374
991743895.UG.FTS.B,
28.98%,
1/23/25
..
296
301
991748353.UG.FTS.B,
28.98%,
1/23/25
..
250
(2)
991755793.UG.FTS.B,
28.98%,
1/23/25
..
273
275
991760215.UG.FTS.B,
28.98%,
1/23/25
..
101
104
991762827.UG.FTS.B,
28.98%,
1/23/25
..
38
39
991764530.UG.FTS.B,
28.98%,
1/23/25
..
234
235
991768579.UG.FTS.B,
28.98%,
1/23/25
..
54
55
991768584.UG.FTS.B,
28.98%,
1/23/25
..
66
67
991772947.UG.FTS.B,
28.98%,
1/23/25
..
932
946
991772955.UG.FTS.B,
28.98%,
1/23/25
..
144
146
991774877.UG.FTS.B,
28.98%,
1/23/25
..
179
182
991779183.UG.FTS.B,
28.98%,
1/23/25
..
1,126
1,120
991782023.UG.FTS.B,
28.98%,
1/23/25
..
464
471
991782074.UG.FTS.B,
28.98%,
1/23/25
..
371
377
991782508.UG.FTS.B,
28.98%,
1/23/25
..
282
287
991785616.UG.FTS.B,
28.98%,
1/23/25
..
68
69
991789218.UG.FTS.B,
28.98%,
1/23/25
..
16
16
991795129.UG.FTS.B,
28.98%,
1/23/25
..
37
38
991797774.UG.FTS.B,
28.98%,
1/23/25
..
469
477
991807448.UG.FTS.B,
28.98%,
1/23/25
..
350
356
991807581.UG.FTS.B,
28.98%,
1/23/25
..
93
95
991809208.UG.FTS.B,
28.98%,
1/23/25
..
476
477
991717633.UG.FTS.B,
29.46%,
1/23/25
..
20
20
991787803.UG.FTS.B,
29.46%,
1/23/25
..
105
105
991798404.UG.FTS.B,
29.47%,
1/23/25
..
61
62
991632479.UG.FTS.B,
29.49%,
1/23/25
..
781
790
991634115.UG.FTS.B,
29.49%,
1/23/25
..
286
294
991635514.UG.FTS.B,
29.49%,
1/23/25
..
3,735
3,829
991635734.UG.FTS.B,
29.49%,
1/23/25
..
349
358
991639167.UG.FTS.B,
29.49%,
1/23/25
..
40
40
991640308.UG.FTS.B,
29.49%,
1/23/25
..
459
464
991640354.UG.FTS.B,
29.49%,
1/23/25
..
394
404
991640844.UG.FTS.B,
29.49%,
1/23/25
..
88
90
991643437.UG.FTS.B,
29.49%,
1/23/25
..
167
172
991645466.UG.FTS.B,
29.49%,
1/23/25
..
129
128
991646303.UG.FTS.B,
29.49%,
1/23/25
..
207
210
991646401.UG.FTS.B,
29.49%,
1/23/25
..
47
48
991648051.UG.FTS.B,
29.49%,
1/23/25
..
486
499
991649488.UG.FTS.B,
29.49%,
1/23/25
..
277
284
991650076.UG.FTS.B,
29.49%,
1/23/25
..
82
84
991650094.UG.FTS.B,
29.49%,
1/23/25
..
140
144
991651099.UG.FTS.B,
29.49%,
1/23/25
..
126
128
991652096.UG.FTS.B,
29.49%,
1/23/25
..
16
16
991653833.UG.FTS.B,
29.49%,
1/23/25
..
8
8
991654911.UG.FTS.B,
29.49%,
1/23/25
..
225
30
991655169.UG.FTS.B,
29.49%,
1/23/25
..
190
195
991659040.UG.FTS.B,
29.49%,
1/23/25
..
82
84
991659984.UG.FTS.B,
29.49%,
1/23/25
..
67
68
991660183.UG.FTS.B,
29.49%,
1/23/25
..
246
250
991660204.UG.FTS.B,
29.49%,
1/23/25
..
136
138
991661550.UG.FTS.B,
29.49%,
1/23/25
..
156
158
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
134
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991662010.UG.FTS.B,
29.49%,
1/23/25
..
$
225
$
231
991662703.UG.FTS.B,
29.49%,
1/23/25
..
79
79
991664752.UG.FTS.B,
29.49%,
1/23/25
..
1,417
1,438
991664791.UG.FTS.B,
29.49%,
1/23/25
..
219
225
991667627.UG.FTS.B,
29.49%,
1/23/25
..
202
206
991669123.UG.FTS.B,
29.49%,
1/23/25
..
400
406
991669828.UG.FTS.B,
29.49%,
1/23/25
..
290
297
991669979.UG.FTS.B,
29.49%,
1/23/25
..
124
126
991670618.UG.FTS.B,
29.49%,
1/23/25
..
341
349
991672381.UG.FTS.B,
29.49%,
1/23/25
..
506
328
991672410.UG.FTS.B,
29.49%,
1/23/25
..
24
24
991672472.UG.FTS.B,
29.49%,
1/23/25
..
172
176
991674428.UG.FTS.B,
29.49%,
1/23/25
..
1,324
1,359
991677110.UG.FTS.B,
29.49%,
1/23/25
..
9
9
991678185.UG.FTS.B,
29.49%,
1/23/25
..
102
105
991678811.UG.FTS.B,
29.49%,
1/23/25
..
594
610
991680942.UG.FTS.B,
29.49%,
1/23/25
..
480
492
991682804.UG.FTS.B,
29.49%,
1/23/25
..
408
410
991684286.UG.FTS.B,
29.49%,
1/23/25
..
37
37
991684319.UG.FTS.B,
29.49%,
1/23/25
..
96
98
991684915.UG.FTS.B,
29.49%,
1/23/25
..
183
188
991685294.UG.FTS.B,
29.49%,
1/23/25
..
926
950
991685999.UG.FTS.B,
29.49%,
1/23/25
..
81
83
991686992.UG.FTS.B,
29.49%,
1/23/25
..
32
33
991687091.UG.FTS.B,
29.49%,
1/23/25
..
25
25
991688415.UG.FTS.B,
29.49%,
1/23/25
..
671
677
991688858.UG.FTS.B,
29.49%,
1/23/25
..
217
219
991692660.UG.FTS.B,
29.49%,
1/23/25
..
140
144
991693141.UG.FTS.B,
29.49%,
1/23/25
..
78
62
991694241.UG.FTS.B,
29.49%,
1/23/25
..
138
140
991695744.UG.FTS.B,
29.49%,
1/23/25
..
115
9
991700061.UG.FTS.B,
29.49%,
1/23/25
..
51
52
991701111.UG.FTS.B,
29.49%,
1/23/25
...
239
245
991701192.UG.FTS.B,
29.49%,
1/23/25
..
145
19
991701242.UG.FTS.B,
29.49%,
1/23/25
..
29
30
991705948.UG.FTS.B,
29.49%,
1/23/25
..
103
105
991707157.UG.FTS.B,
29.49%,
1/23/25
..
634
48
991710239.UG.FTS.B,
29.49%,
1/23/25
..
5
5
991710464.UG.FTS.B,
29.49%,
1/23/25
..
157
159
991713650.UG.FTS.B,
29.49%,
1/23/25
..
1,381
1,397
991714208.UG.FTS.B,
29.49%,
1/23/25
..
49
48
991718098.UG.FTS.B,
29.49%,
1/23/25
..
212
217
991719609.UG.FTS.B,
29.49%,
1/23/25
..
115
8
991725741.UG.FTS.B,
29.49%,
1/23/25
..
184
186
991727898.UG.FTS.B,
29.49%,
1/23/25
..
147
149
991731138.UG.FTS.B,
29.49%,
1/23/25
..
159
158
991732421.UG.FTS.B,
29.49%,
1/23/25
..
38
39
991736050.UG.FTS.B,
29.49%,
1/23/25
..
8
8
991740952.UG.FTS.B,
29.49%,
1/23/25
..
208
209
991749819.UG.FTS.B,
29.49%,
1/23/25
..
208
210
991749836.UG.FTS.B,
29.49%,
1/23/25
..
1,888
1,916
991750874.UG.FTS.B,
29.49%,
1/23/25
..
13
13
991753605.UG.FTS.B,
29.49%,
1/23/25
..
19
19
991758368.UG.FTS.B,
29.49%,
1/23/25
..
361
366
991759014.UG.FTS.B,
29.49%,
1/23/25
..
148
148
991760951.UG.FTS.B,
29.49%,
1/23/25
..
42
43
991762640.UG.FTS.B,
29.49%,
1/23/25
..
150
152
991762816.UG.FTS.B,
29.49%,
1/23/25
..
121
123
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991763398.UG.FTS.B,
29.49%,
1/23/25
..
$
122
$
124
991763664.UG.FTS.B,
29.49%,
1/23/25
..
49
50
991763680.UG.FTS.B,
29.49%,
1/23/25
..
11
11
991764778.UG.FTS.B,
29.49%,
1/23/25
..
159
161
991764948.UG.FTS.B,
29.49%,
1/23/25
..
86
88
991766961.UG.FTS.B,
29.49%,
1/23/25
..
–
–
991768207.UG.FTS.B,
29.49%,
1/23/25
..
38
39
991768574.UG.FTS.B,
29.49%,
1/23/25
..
58
59
991773008.UG.FTS.B,
29.49%,
1/23/25
..
140
142
991777092.UG.FTS.B,
29.49%,
1/23/25
..
154
156
991777722.UG.FTS.B,
29.49%,
1/23/25
..
21
21
991778351.UG.FTS.B,
29.49%,
1/23/25
..
15
15
991778406.UG.FTS.B,
29.49%,
1/23/25
..
19
19
991779238.UG.FTS.B,
29.49%,
1/23/25
..
15
15
991779628.UG.FTS.B,
29.49%,
1/23/25
..
62
63
991779677.UG.FTS.B,
29.49%,
1/23/25
..
34
34
991781006.UG.FTS.B,
29.49%,
1/23/25
..
52
53
991781870.UG.FTS.B,
29.49%,
1/23/25
..
348
348
991782329.UG.FTS.B,
29.49%,
1/23/25
..
126
128
991783407.UG.FTS.B,
29.49%,
1/23/25
..
282
286
991787630.UG.FTS.B,
29.49%,
1/23/25
..
100
103
991789258.UG.FTS.B,
29.49%,
1/23/25
..
92
94
991789422.UG.FTS.B,
29.49%,
1/23/25
..
2
2
991791018.UG.FTS.B,
29.49%,
1/23/25
..
213
211
991792329.UG.FTS.B,
29.49%,
1/23/25
..
423
428
991792570.UG.FTS.B,
29.49%,
1/23/25
..
470
474
991792684.UG.FTS.B,
29.49%,
1/23/25
..
1,102
1,103
991795096.UG.FTS.B,
29.49%,
1/23/25
..
887
894
991795103.UG.FTS.B,
29.49%,
1/23/25
..
78
79
991796436.UG.FTS.B,
29.49%,
1/23/25
..
25
4
991798958.UG.FTS.B,
29.49%,
1/23/25
..
874
888
991816343.UG.FTS.B,
29.49%,
1/23/25
..
153
154
991816545.UG.FTS.B,
29.49%,
1/23/25
..
159
161
991817291.UG.FTS.B,
29.49%,
1/23/25
..
481
485
991576117.UG.FTS.B,
Zero
Cpn,
1/24/25
.
230
239
991656882.UG.FTS.B,
14.98%,
1/24/25
..
383
394
991755553.UG.FTS.B,
14.98%,
1/24/25
..
360
368
991648853.UG.FTS.B,
15%,
1/24/25
.....
4,751
4,878
991708919.UG.FTS.B,
15%,
1/24/25
.....
67
68
991800979.UG.FTS.B,
15.97%,
1/24/25
..
6,515
6,662
991636992.UG.FTS.B,
16.99%,
1/24/25
..
485
499
991638528.UG.FTS.B,
16.99%,
1/24/25
..
441
453
991638769.UG.FTS.B,
16.99%,
1/24/25
..
47
1
991642911.UG.FTS.B,
16.99%,
1/24/25
..
359
369
991708759.UG.FTS.B,
17.99%,
1/24/25
..
2,100
2,158
991734778.UG.FTS.B,
17.99%,
1/24/25
..
142
145
991746840.UG.FTS.B,
17.99%,
1/24/25
..
1,791
1,823
991799064.UG.FTS.B,
17.99%,
1/24/25
..
847
867
991690303.UG.FTS.B,
18.97%,
1/24/25
..
751
772
991699954.UG.FTS.B,
18.97%,
1/24/25
..
129
133
991702242.UG.FTS.B,
18.97%,
1/24/25
..
76
78
991708811.UG.FTS.B,
18.97%,
1/24/25
..
915
934
991704768.UG.FTS.B,
19.21%,
1/24/25
..
698
711
991656757.UG.FTS.B,
19.46%,
1/24/25
..
3,930
3,993
991631216.UG.FTS.B,
19.8%,
1/24/25
...
228
3
991632438.UG.FTS.B,
19.8%,
1/24/25
...
1,911
1,936
991697824.UG.FTS.B,
19.8%,
1/24/25
...
265
268
991806310.UG.FTS.B,
19.97%,
1/24/25
..
462
289
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
135
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991575290.UG.FTS.B,
19.99%,
1/24/25
..
$
169
$
174
991576025.UG.FTS.B,
19.99%,
1/24/25
..
179
182
991581472.UG.FTS.B,
19.99%,
1/24/25
..
118
121
991585928.UG.FTS.B,
19.99%,
1/24/25
..
39
40
991598140.UG.FTS.B,
19.99%,
1/24/25
..
145
149
991608248.UG.FTS.B,
19.99%,
1/24/25
..
101
104
991629457.UG.FTS.B,
19.99%,
1/24/25
..
709
728
991642292.UG.FTS.B,
19.99%,
1/24/25
..
194
197
991650113.UG.FTS.B,
19.99%,
1/24/25
..
2,752
2,773
991651074.UG.FTS.B,
19.99%,
1/24/25
..
78
80
991653352.UG.FTS.B,
19.99%,
1/24/25
..
154
158
991799920.UG.FTS.B,
19.99%,
1/24/25
..
2,016
2,050
991801704.UG.FTS.B,
19.99%,
1/24/25
..
1,868
1,900
991805172.UG.FTS.B,
19.99%,
1/24/25
..
116
119
991805637.UG.FTS.B,
19.99%,
1/24/25
..
247
251
991807354.UG.FTS.B,
19.99%,
1/24/25
..
110
111
991813869.UG.FTS.B,
19.99%,
1/24/25
..
178
178
991816621.UG.FTS.B,
19.99%,
1/24/25
..
17
18
991721736.UG.FTS.B,
20.46%,
1/24/25
..
5,629
5,769
991722377.UG.FTS.B,
20.46%,
1/24/25
..
2,816
2,887
991745755.UG.FTS.B,
20.46%,
1/24/25
..
498
507
991781421.UG.FTS.B,
20.46%,
1/24/25
..
341
347
991786433.UG.FTS.B,
20.46%,
1/24/25
..
159
162
991791281.UG.FTS.B,
20.46%,
1/24/25
..
7
7
991699313.UG.FTS.B,
20.97%,
1/24/25
..
590
599
991757950.UG.FTS.B,
20.97%,
1/24/25
..
11
11
991631506.UG.FTS.B,
21.46%,
1/24/25
..
322
329
991749758.UG.FTS.B,
21.46%,
1/24/25
..
5,600
5,679
991786125.UG.FTS.B,
21.46%,
1/24/25
..
177
179
991806077.UG.FTS.B,
21.97%,
1/24/25
..
127
128
991691604.UG.FTS.B,
21.98%,
1/24/25
..
471
482
991722423.UG.FTS.B,
21.98%,
1/24/25
..
4,231
4,327
991741186.UG.FTS.B,
21.98%,
1/24/25
..
16
17
991748280.UG.FTS.B,
21.98%,
1/24/25
..
108
110
991801295.UG.FTS.B,
21.98%,
1/24/25
..
935
948
991717329.UG.FTS.B,
22.97%,
1/24/25
..
2,319
2,370
991641124.UG.FTS.B,
23.95%,
1/24/25
..
264
270
991792960.UG.FTS.B,
23.95%,
1/24/25
..
574
583
991706518.UG.FTS.B,
24.95%,
1/24/25
..
1,275
1,300
991812772.UG.FTS.B,
25.94%,
1/24/25
..
27
28
991644078.UG.FTS.B,
25.95%,
1/24/25
..
792
806
991700887.UG.FTS.B,
25.95%,
1/24/25
..
186
191
991635736.UG.FTS.B,
26.94%,
1/24/25
..
350
229
991673104.UG.FTS.B,
26.94%,
1/24/25
..
395
403
991780248.UG.FTS.B,
27.95%,
1/24/25
..
106
108
991788761.UG.FTS.B,
27.95%,
1/24/25
..
25
26
991680442.UG.FTS.B,
27.99%,
1/24/25
..
61
62
991575668.UG.FTS.B,
28.98%,
1/24/25
..
131
132
991575802.UG.FTS.B,
28.98%,
1/24/25
..
1,944
1,940
991577230.UG.FTS.B,
28.98%,
1/24/25
..
192
197
991577662.UG.FTS.B,
28.98%,
1/24/25
..
345
349
991578086.UG.FTS.B,
28.98%,
1/24/25
..
171
176
991578656.UG.FTS.B,
28.98%,
1/24/25
..
1,172
1,183
991578983.UG.FTS.B,
28.98%,
1/24/25
..
1,307
859
991583017.UG.FTS.B,
28.98%,
1/24/25
..
403
414
991586355.UG.FTS.B,
28.98%,
1/24/25
..
194
198
991589078.UG.FTS.B,
28.98%,
1/24/25
..
3
3
991592816.UG.FTS.B,
28.98%,
1/24/25
..
39
39
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991594975.UG.FTS.B,
28.98%,
1/24/25
..
$
4
$
4
991595786.UG.FTS.B,
28.98%,
1/24/25
..
133
136
991596284.UG.FTS.B,
28.98%,
1/24/25
..
887
889
991615833.UG.FTS.B,
28.98%,
1/24/25
..
172
172
991628863.UG.FTS.B,
28.98%,
1/24/25
..
722
741
991629929.UG.FTS.B,
28.98%,
1/24/25
..
398
396
991632674.UG.FTS.B,
28.98%,
1/24/25
..
132
136
991633388.UG.FTS.B,
28.98%,
1/24/25
..
52
53
991634826.UG.FTS.B,
28.98%,
1/24/25
..
716
736
991639159.UG.FTS.B,
28.98%,
1/24/25
..
123
127
991640485.UG.FTS.B,
28.98%,
1/24/25
..
1,431
1,452
991640929.UG.FTS.B,
28.98%,
1/24/25
..
163
167
991643556.UG.FTS.B,
28.98%,
1/24/25
..
588
78
991644552.UG.FTS.B,
28.98%,
1/24/25
..
49
50
991645339.UG.FTS.B,
28.98%,
1/24/25
..
604
608
991649512.UG.FTS.B,
28.98%,
1/24/25
..
182
187
991649611.UG.FTS.B,
28.98%,
1/24/25
..
241
248
991650054.UG.FTS.B,
28.98%,
1/24/25
..
8
8
991651901.UG.FTS.B,
28.98%,
1/24/25
..
791
813
991659856.UG.FTS.B,
28.98%,
1/24/25
..
139
143
991662614.UG.FTS.B,
28.98%,
1/24/25
..
78
79
991664144.UG.FTS.B,
28.98%,
1/24/25
..
72
74
991665878.UG.FTS.B,
28.98%,
1/24/25
..
419
430
991667154.UG.FTS.B,
28.98%,
1/24/25
..
754
750
991669337.UG.FTS.B,
28.98%,
1/24/25
..
120
121
991670648.UG.FTS.B,
28.98%,
1/24/25
..
161
164
991671831.UG.FTS.B,
28.98%,
1/24/25
..
20
20
991671947.UG.FTS.B,
28.98%,
1/24/25
..
527
542
991673929.UG.FTS.B,
28.98%,
1/24/25
..
380
391
991677444.UG.FTS.B,
28.98%,
1/24/25
..
35
36
991681258.UG.FTS.B,
28.98%,
1/24/25
..
1,348
1,366
991684955.UG.FTS.B,
28.98%,
1/24/25
..
72
73
991685641.UG.FTS.B,
28.98%,
1/24/25
..
364
370
991688160.UG.FTS.B,
28.98%,
1/24/25
..
2,796
2,844
991689399.UG.FTS.B,
28.98%,
1/24/25
..
164
167
991692103.UG.FTS.B,
28.98%,
1/24/25
..
570
585
991699090.UG.FTS.B,
28.98%,
1/24/25
..
24
24
991703547.UG.FTS.B,
28.98%,
1/24/25
..
344
355
991704459.UG.FTS.B,
28.98%,
1/24/25
..
6
6
991710310.UG.FTS.B,
28.98%,
1/24/25
..
711
712
991713017.UG.FTS.B,
28.98%,
1/24/25
..
209
214
991713085.UG.FTS.B,
28.98%,
1/24/25
..
327
333
991724136.UG.FTS.B,
28.98%,
1/24/25
..
151
155
991725698.UG.FTS.B,
28.98%,
1/24/25
..
318
323
991733516.UG.FTS.B,
28.98%,
1/24/25
..
385
392
991735140.UG.FTS.B,
28.98%,
1/24/25
..
7
7
991738430.UG.FTS.B,
28.98%,
1/24/25
..
355
360
991745188.UG.FTS.B,
28.98%,
1/24/25
..
1,303
96
991754574.UG.FTS.B,
28.98%,
1/24/25
..
118
120
991754851.UG.FTS.B,
28.98%,
1/24/25
..
120
122
991759330.UG.FTS.B,
28.98%,
1/24/25
..
86
88
991762575.UG.FTS.B,
28.98%,
1/24/25
..
755
768
991766240.UG.FTS.B,
28.98%,
1/24/25
..
28
29
991768508.UG.FTS.B,
28.98%,
1/24/25
..
18
18
991776412.UG.FTS.B,
28.98%,
1/24/25
..
954
969
991777910.UG.FTS.B,
28.98%,
1/24/25
..
252
256
991780022.UG.FTS.B,
28.98%,
1/24/25
..
278
282
991780591.UG.FTS.B,
28.98%,
1/24/25
..
228
231
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991781561.UG.FTS.B,
28.98%,
1/24/25
..
$
39
$
39
991781585.UG.FTS.B,
28.98%,
1/24/25
..
88
90
991781826.UG.FTS.B,
28.98%,
1/24/25
..
659
662
991782375.UG.FTS.B,
28.98%,
1/24/25
..
188
191
991783185.UG.FTS.B,
28.98%,
1/24/25
..
132
134
991783742.UG.FTS.B,
28.98%,
1/24/25
..
928
942
991783823.UG.FTS.B,
28.98%,
1/24/25
..
1,883
1,915
991785319.UG.FTS.B,
28.98%,
1/24/25
..
626
637
991789793.UG.FTS.B,
28.98%,
1/24/25
..
1,470
1,495
991789906.UG.FTS.B,
28.98%,
1/24/25
..
235
239
991791199.UG.FTS.B,
28.98%,
1/24/25
..
341
345
991791520.UG.FTS.B,
28.98%,
1/24/25
..
103
105
991795189.UG.FTS.B,
28.98%,
1/24/25
..
112
115
991795762.UG.FTS.B,
28.98%,
1/24/25
..
136
138
991797202.UG.FTS.B,
28.98%,
1/24/25
..
150
149
991800778.UG.FTS.B,
28.98%,
1/24/25
..
68
67
991808380.UG.FTS.B,
28.98%,
1/24/25
..
139
141
991814864.UG.FTS.B,
28.98%,
1/24/25
..
89
91
991817525.UG.FTS.B,
28.98%,
1/24/25
..
32
33
991820655.UG.FTS.B,
28.98%,
1/24/25
..
17
17
991821037.UG.FTS.B,
28.98%,
1/24/25
..
369
376
991822816.UG.FTS.B,
28.98%,
1/24/25
..
59
60
991823074.UG.FTS.B,
28.98%,
1/24/25
..
86
88
991577903.UG.FTS.B,
29.48%,
1/24/25
..
894
917
991576301.UG.FTS.B,
29.49%,
1/24/25
..
2,807
2,886
991576654.UG.FTS.B,
29.49%,
1/24/25
..
32
6
991577400.UG.FTS.B,
29.49%,
1/24/25
..
781
792
991577993.UG.FTS.B,
29.49%,
1/24/25
..
730
747
991579123.UG.FTS.B,
29.49%,
1/24/25
..
219
224
991580762.UG.FTS.B,
29.49%,
1/24/25
..
600
611
991580987.UG.FTS.B,
29.49%,
1/24/25
..
961
967
991581435.UG.FTS.B,
29.49%,
1/24/25
..
313
322
991585851.UG.FTS.B,
29.49%,
1/24/25
..
313
320
991589214.UG.FTS.B,
29.49%,
1/24/25
..
829
848
991589686.UG.FTS.B,
29.49%,
1/24/25
..
127
17
991596515.UG.FTS.B,
29.49%,
1/24/25
..
988
74
991598092.UG.FTS.B,
29.49%,
1/24/25
..
158
160
991598173.UG.FTS.B,
29.49%,
1/24/25
..
421
432
991612456.UG.FTS.B,
29.49%,
1/24/25
..
284
291
991613106.UG.FTS.B,
29.49%,
1/24/25
..
464
470
991623495.UG.FTS.B,
29.49%,
1/24/25
..
73
75
991630195.UG.FTS.B,
29.49%,
1/24/25
..
159
161
991631439.UG.FTS.B,
29.49%,
1/24/25
..
430
443
991633359.UG.FTS.B,
29.49%,
1/24/25
..
696
706
991635775.UG.FTS.B,
29.49%,
1/24/25
..
318
326
991636237.UG.FTS.B,
29.49%,
1/24/25
..
40
40
991637028.UG.FTS.B,
29.49%,
1/24/25
..
12
12
991637080.UG.FTS.B,
29.49%,
1/24/25
..
127
130
991638820.UG.FTS.B,
29.49%,
1/24/25
..
26
26
991638944.UG.FTS.B,
29.49%,
1/24/25
..
72
73
991644228.UG.FTS.B,
29.49%,
1/24/25
..
467
472
991644506.UG.FTS.B,
29.49%,
1/24/25
..
465
477
991644916.UG.FTS.B,
29.49%,
1/24/25
..
251
256
991645022.UG.FTS.B,
29.49%,
1/24/25
..
117
120
991646526.UG.FTS.B,
29.49%,
1/24/25
..
637
648
991647694.UG.FTS.B,
29.49%,
1/24/25
..
0
0
991648884.UG.FTS.B,
29.49%,
1/24/25
..
184
186
991650579.UG.FTS.B,
29.49%,
1/24/25
..
603
617
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991651346.UG.FTS.B,
29.49%,
1/24/25
..
$
39
$
39
991653574.UG.FTS.B,
29.49%,
1/24/25
..
57
58
991653590.UG.FTS.B,
29.49%,
1/24/25
..
10
11
991653674.UG.FTS.B,
29.49%,
1/24/25
..
12
12
991653841.UG.FTS.B,
29.49%,
1/24/25
..
89
91
991654006.UG.FTS.B,
29.49%,
1/24/25
..
164
166
991654015.UG.FTS.B,
29.49%,
1/24/25
..
49
50
991658417.UG.FTS.B,
29.49%,
1/24/25
..
733
752
991658664.UG.FTS.B,
29.49%,
1/24/25
..
214
220
991658973.UG.FTS.B,
29.49%,
1/24/25
..
403
413
991660665.UG.FTS.B,
29.49%,
1/24/25
..
502
510
991661089.UG.FTS.B,
29.49%,
1/24/25
..
12
12
991661860.UG.FTS.B,
29.49%,
1/24/25
..
268
267
991662002.UG.FTS.B,
29.49%,
1/24/25
..
568
582
991662006.UG.FTS.B,
29.49%,
1/24/25
..
47
48
991663979.UG.FTS.B,
29.49%,
1/24/25
..
97
99
991669322.UG.FTS.B,
29.49%,
1/24/25
..
288
21
991670175.UG.FTS.B,
29.49%,
1/24/25
..
371
375
991670699.UG.FTS.B,
29.49%,
1/24/25
..
82
82
991671992.UG.FTS.B,
29.49%,
1/24/25
..
860
882
991675138.UG.FTS.B,
29.49%,
1/24/25
..
208
214
991678769.UG.FTS.B,
29.49%,
1/24/25
..
36
37
991679391.UG.FTS.B,
29.49%,
1/24/25
..
42
43
991679445.UG.FTS.B,
29.49%,
1/24/25
..
146
150
991679552.UG.FTS.B,
29.49%,
1/24/25
..
190
26
991680516.UG.FTS.B,
29.49%,
1/24/25
..
17
16
991680577.UG.FTS.B,
29.49%,
1/24/25
..
94
93
991682018.UG.FTS.B,
29.49%,
1/24/25
..
67
10
991682353.UG.FTS.B,
29.49%,
1/24/25
..
1,046
1,073
991684029.UG.FTS.B,
29.49%,
1/24/25
..
152
156
991684181.UG.FTS.B,
29.49%,
1/24/25
..
821
843
991685612.UG.FTS.B,
29.49%,
1/24/25
..
418
429
991685762.UG.FTS.B,
29.49%,
1/24/25
..
86
85
991692375.UG.FTS.B,
29.49%,
1/24/25
..
99
101
991692427.UG.FTS.B,
29.49%,
1/24/25
..
723
720
991692536.UG.FTS.B,
29.49%,
1/24/25
..
365
374
991693340.UG.FTS.B,
29.49%,
1/24/25
..
168
170
991694080.UG.FTS.B,
29.49%,
1/24/25
..
97
99
991697044.UG.FTS.B,
29.49%,
1/24/25
..
301
309
991697265.UG.FTS.B,
29.49%,
1/24/25
..
44
44
991697794.UG.FTS.B,
29.49%,
1/24/25
..
2
2
991700205.UG.FTS.B,
29.49%,
1/24/25
..
451
457
991700654.UG.FTS.B,
29.49%,
1/24/25
..
12
12
991701529.UG.FTS.B,
29.49%,
1/24/25
..
212
216
991706610.UG.FTS.B,
29.49%,
1/24/25
..
70
71
991709442.UG.FTS.B,
29.49%,
1/24/25
..
220
222
991714607.UG.FTS.B,
29.49%,
1/24/25
..
338
341
991714756.UG.FTS.B,
29.49%,
1/24/25
..
75
76
991714762.UG.FTS.B,
29.49%,
1/24/25
..
146
147
991715066.UG.FTS.B,
29.49%,
1/24/25
..
139
140
991715483.UG.FTS.B,
29.49%,
1/24/25
..
308
42
991723894.UG.FTS.B,
29.49%,
1/24/25
..
318
327
991726881.UG.FTS.B,
29.49%,
1/24/25
..
255
259
991727546.UG.FTS.B,
29.49%,
1/24/25
..
84
86
991732404.UG.FTS.B,
29.49%,
1/24/25
..
41
41
991734029.UG.FTS.B,
29.49%,
1/24/25
..
31
32
991735728.UG.FTS.B,
29.49%,
1/24/25
..
1
1
991736234.UG.FTS.B,
29.49%,
1/24/25
..
420
424
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
137
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991736519.UG.FTS.B,
29.49%,
1/24/25
..
$
218
$
218
991738271.UG.FTS.B,
29.49%,
1/24/25
..
1,559
1,598
991738330.UG.FTS.B,
29.49%,
1/24/25
..
124
127
991741387.UG.FTS.B,
29.49%,
1/24/25
..
227
230
991742301.UG.FTS.B,
29.49%,
1/24/25
..
54
55
991742733.UG.FTS.B,
29.49%,
1/24/25
..
80
82
991742865.UG.FTS.B,
29.49%,
1/24/25
..
673
682
991744429.UG.FTS.B,
29.49%,
1/24/25
..
43
43
991746042.UG.FTS.B,
29.49%,
1/24/25
..
254
256
991746950.UG.FTS.B,
29.49%,
1/24/25
..
206
209
991753944.UG.FTS.B,
29.49%,
1/24/25
..
18
18
991758058.UG.FTS.B,
29.49%,
1/24/25
..
940
955
991759873.UG.FTS.B,
29.49%,
1/24/25
..
53
54
991760359.UG.FTS.B,
29.49%,
1/24/25
..
28
26
991768368.UG.FTS.B,
29.49%,
1/24/25
..
84
12
991774946.UG.FTS.B,
29.49%,
1/24/25
..
943
958
991776695.UG.FTS.B,
29.49%,
1/24/25
..
178
180
991779451.UG.FTS.B,
29.49%,
1/24/25
..
153
153
991781667.UG.FTS.B,
29.49%,
1/24/25
..
105
108
991782230.UG.FTS.B,
29.49%,
1/24/25
..
158
160
991784434.UG.FTS.B,
29.49%,
1/24/25
..
59
60
991784942.UG.FTS.B,
29.49%,
1/24/25
..
74
76
991787292.UG.FTS.B,
29.49%,
1/24/25
..
118
121
991787532.UG.FTS.B,
29.49%,
1/24/25
..
31
31
991787620.UG.FTS.B,
29.49%,
1/24/25
..
76
78
991788566.UG.FTS.B,
29.49%,
1/24/25
..
122
124
991788656.UG.FTS.B,
29.49%,
1/24/25
..
42
43
991791861.UG.FTS.B,
29.49%,
1/24/25
..
282
287
991793833.UG.FTS.B,
29.49%,
1/24/25
..
14
14
991795947.UG.FTS.B,
29.49%,
1/24/25
..
75
76
991796004.UG.FTS.B,
29.49%,
1/24/25
..
15
15
991797212.UG.FTS.B,
29.49%,
1/24/25
..
7
7
991797472.UG.FTS.B,
29.49%,
1/24/25
..
32
33
991799040.UG.FTS.B,
29.49%,
1/24/25
..
218
220
991799608.UG.FTS.B,
29.49%,
1/24/25
..
11
11
991802616.UG.FTS.B,
29.49%,
1/24/25
..
188
191
991803411.UG.FTS.B,
29.49%,
1/24/25
..
41
41
991803911.UG.FTS.B,
29.49%,
1/24/25
..
241
243
991804458.UG.FTS.B,
29.49%,
1/24/25
..
–
–
991804599.UG.FTS.B,
29.49%,
1/24/25
..
54
55
991807220.UG.FTS.B,
29.49%,
1/24/25
..
74
75
991817555.UG.FTS.B,
29.49%,
1/24/25
..
38
38
991818233.UG.FTS.B,
29.49%,
1/24/25
..
127
127
991820257.UG.FTS.B,
29.49%,
1/24/25
..
26
26
991821225.UG.FTS.B,
29.49%,
1/24/25
..
–
–
991823070.UG.FTS.B,
29.49%,
1/24/25
..
1,210
1,210
991823358.UG.FTS.B,
29.49%,
1/24/25
..
22
4
991744460.UG.FTS.B,
29.99%,
1/24/25
..
132
18
991680606.UG.FTS.B,
Zero
Cpn,
1/25/25
.
588
611
991663336.UG.FTS.B,
14.97%,
1/25/25
..
921
947
991722200.UG.FTS.B,
14.98%,
1/25/25
..
373
384
991723338.UG.FTS.B,
14.98%,
1/25/25
..
2,112
2,152
991748767.UG.FTS.B,
14.98%,
1/25/25
..
243
244
991785631.UG.FTS.B,
14.98%,
1/25/25
..
158
161
991672533.UG.FTS.B,
15.97%,
1/25/25
..
11
11
991685938.UG.FTS.B,
15.97%,
1/25/25
..
150
154
991691336.UG.FTS.B,
15.97%,
1/25/25
..
17,386
17,882
991719427.UG.FTS.B,
15.97%,
1/25/25
..
351
360
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991706579.UG.FTS.B,
16.99%,
1/25/25
..
$
195
$
200
991647158.UG.FTS.B,
17.99%,
1/25/25
..
28
29
991708991.UG.FTS.B,
17.99%,
1/25/25
..
2,602
2,673
991730945.UG.FTS.B,
17.99%,
1/25/25
..
63
65
991658411.UG.FTS.B,
18.97%,
1/25/25
..
936
962
991710839.UG.FTS.B,
18.97%,
1/25/25
..
1,108
1,138
991749481.UG.FTS.B,
18.97%,
1/25/25
..
734
749
991813671.UG.FTS.B,
18.97%,
1/25/25
..
106
109
991639650.UG.FTS.B,
19.21%,
1/25/25
..
3,292
3,344
991648674.UG.FTS.B,
19.21%,
1/25/25
..
34
35
991667139.UG.FTS.B,
19.21%,
1/25/25
..
459
471
991690379.UG.FTS.B,
19.21%,
1/25/25
..
641
657
991772394.UG.FTS.B,
19.21%,
1/25/25
..
2,232
2,255
991783060.UG.FTS.B,
19.21%,
1/25/25
..
467
476
991811906.UG.FTS.B,
19.46%,
1/25/25
..
160
163
991771874.UG.FTS.B,
19.8%,
1/25/25
...
234
238
991792567.UG.FTS.B,
19.8%,
1/25/25
...
743
756
991583020.UG.FTS.B,
19.99%,
1/25/25
..
226
233
991596563.UG.FTS.B,
19.99%,
1/25/25
..
303
308
991598409.UG.FTS.B,
19.99%,
1/25/25
..
881
907
991639145.UG.FTS.B,
19.99%,
1/25/25
..
212
218
991639253.UG.FTS.B,
19.99%,
1/25/25
..
90
92
991647962.UG.FTS.B,
19.99%,
1/25/25
..
332
338
991655538.UG.FTS.B,
19.99%,
1/25/25
..
354
360
991660509.UG.FTS.B,
19.99%,
1/25/25
..
201
206
991664526.UG.FTS.B,
19.99%,
1/25/25
..
210
134
991671306.UG.FTS.B,
19.99%,
1/25/25
..
149
154
991672315.UG.FTS.B,
19.99%,
1/25/25
..
260
267
991702336.UG.FTS.B,
19.99%,
1/25/25
..
154
159
991730145.UG.FTS.B,
19.99%,
1/25/25
..
1,032
1,061
991733405.UG.FTS.B,
19.99%,
1/25/25
..
142
146
991751611.UG.FTS.B,
19.99%,
1/25/25
..
247
253
991754276.UG.FTS.B,
19.99%,
1/25/25
..
414
421
991768443.UG.FTS.B,
19.99%,
1/25/25
..
49
49
991783018.UG.FTS.B,
19.99%,
1/25/25
..
88
91
991810011.UG.FTS.B,
19.99%,
1/25/25
..
747
760
991811163.UG.FTS.B,
19.99%,
1/25/25
..
2,796
2,838
991647666.UG.FTS.B,
20.46%,
1/25/25
..
7,282
7,409
991701511.UG.FTS.B,
20.46%,
1/25/25
..
1,505
1,532
991655936.UG.FTS.B,
20.97%,
1/25/25
..
250
255
991735068.UG.FTS.B,
20.97%,
1/25/25
..
644
657
991659246.UG.FTS.B,
21.46%,
1/25/25
..
165
166
991693560.UG.FTS.B,
21.46%,
1/25/25
..
1,011
1,034
991697266.UG.FTS.B,
21.46%,
1/25/25
..
300
306
991702030.UG.FTS.B,
21.46%,
1/25/25
..
2,092
2,139
991709381.UG.FTS.B,
21.46%,
1/25/25
..
280
284
991667459.UG.FTS.B,
21.98%,
1/25/25
..
138
139
991696210.UG.FTS.B,
21.98%,
1/25/25
..
131
10
991699663.UG.FTS.B,
21.98%,
1/25/25
..
135
138
991721907.UG.FTS.B,
21.98%,
1/25/25
..
1,129
1,155
991773306.UG.FTS.B,
21.98%,
1/25/25
..
599
607
991781998.UG.FTS.B,
21.98%,
1/25/25
..
193
196
991643275.UG.FTS.B,
22.97%,
1/25/25
..
2,232
2,282
991717168.UG.FTS.B,
22.97%,
1/25/25
..
4,094
4,144
991728109.UG.FTS.B,
22.97%,
1/25/25
..
372
374
991651778.UG.FTS.B,
23.95%,
1/25/25
..
3
4
991696083.UG.FTS.B,
23.95%,
1/25/25
..
517
528
991678927.UG.FTS.B,
25.95%,
1/25/25
..
236
240
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991589474.UG.FTS.B,
27.99%,
1/25/25
..
$
1,199
$
1,203
991642707.UG.FTS.B,
27.99%,
1/25/25
..
159
164
991650195.UG.FTS.B,
27.99%,
1/25/25
..
230
236
991676736.UG.FTS.B,
27.99%,
1/25/25
..
92
95
991691761.UG.FTS.B,
27.99%,
1/25/25
..
946
972
991716330.UG.FTS.B,
27.99%,
1/25/25
..
858
869
991824491.UG.FTS.B,
27.99%,
1/25/25
..
1,851
1,888
991583001.UG.FTS.B,
28.98%,
1/25/25
..
418
419
991585948.UG.FTS.B,
28.98%,
1/25/25
..
1,180
1,192
991585964.UG.FTS.B,
28.98%,
1/25/25
..
696
716
991586398.UG.FTS.B,
28.98%,
1/25/25
..
2,805
2,875
991586596.UG.FTS.B,
28.98%,
1/25/25
..
150
150
991586821.UG.FTS.B,
28.98%,
1/25/25
..
3,266
3,358
991588444.UG.FTS.B,
28.98%,
1/25/25
..
300
309
991590950.UG.FTS.B,
28.98%,
1/25/25
..
781
792
991591061.UG.FTS.B,
28.98%,
1/25/25
..
81
83
991596420.UG.FTS.B,
28.98%,
1/25/25
..
569
579
991597262.UG.FTS.B,
28.98%,
1/25/25
..
366
374
991604576.UG.FTS.B,
28.98%,
1/25/25
..
98
101
991606681.UG.FTS.B,
28.98%,
1/25/25
..
584
596
991606958.UG.FTS.B,
28.98%,
1/25/25
..
822
828
991610850.UG.FTS.B,
28.98%,
1/25/25
..
319
328
991619741.UG.FTS.B,
28.98%,
1/25/25
..
287
295
991628889.UG.FTS.B,
28.98%,
1/25/25
..
49
50
991629059.UG.FTS.B,
28.98%,
1/25/25
..
42
41
991629093.UG.FTS.B,
28.98%,
1/25/25
..
488
502
991630315.UG.FTS.B,
28.98%,
1/25/25
..
377
388
991632477.UG.FTS.B,
28.98%,
1/25/25
..
150
153
991633492.UG.FTS.B,
28.98%,
1/25/25
..
376
375
991636211.UG.FTS.B,
28.98%,
1/25/25
..
1,135
1,153
991638258.UG.FTS.B,
28.98%,
1/25/25
..
101
100
991639961.UG.FTS.B,
28.98%,
1/25/25
..
128
132
991640090.UG.FTS.B,
28.98%,
1/25/25
..
32
33
991643813.UG.FTS.B,
28.98%,
1/25/25
..
368
375
991645264.UG.FTS.B,
28.98%,
1/25/25
..
153
157
991645484.UG.FTS.B,
28.98%,
1/25/25
..
42
43
991645836.UG.FTS.B,
28.98%,
1/25/25
..
207
133
991646347.UG.FTS.B,
28.98%,
1/25/25
..
409
260
991649479.UG.FTS.B,
28.98%,
1/25/25
..
1,021
1,049
991652825.UG.FTS.B,
28.98%,
1/25/25
..
68
69
991653559.UG.FTS.B,
28.98%,
1/25/25
..
22
22
991654044.UG.FTS.B,
28.98%,
1/25/25
..
42
43
991654157.UG.FTS.B,
28.98%,
1/25/25
..
98
101
991655781.UG.FTS.B,
28.98%,
1/25/25
..
1,457
1,498
991655910.UG.FTS.B,
28.98%,
1/25/25
..
230
234
991662696.UG.FTS.B,
28.98%,
1/25/25
..
79
81
991663409.UG.FTS.B,
28.98%,
1/25/25
..
54
55
991664694.UG.FTS.B,
28.98%,
1/25/25
..
1
1
991664838.UG.FTS.B,
28.98%,
1/25/25
..
143
147
991665362.UG.FTS.B,
28.98%,
1/25/25
..
1,042
1,039
991665672.UG.FTS.B,
28.98%,
1/25/25
..
902
913
991666507.UG.FTS.B,
28.98%,
1/25/25
..
224
231
991671828.UG.FTS.B,
28.98%,
1/25/25
..
20
20
991674166.UG.FTS.B,
28.98%,
1/25/25
..
446
458
991678278.UG.FTS.B,
28.98%,
1/25/25
..
6
6
991679560.UG.FTS.B,
28.98%,
1/25/25
..
14
15
991680531.UG.FTS.B,
28.98%,
1/25/25
..
45
46
991680544.UG.FTS.B,
28.98%,
1/25/25
..
39
40
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991681316.UG.FTS.B,
28.98%,
1/25/25
..
$
115
$
115
991684431.UG.FTS.B,
28.98%,
1/25/25
..
402
413
991687378.UG.FTS.B,
28.98%,
1/25/25
..
218
221
991700245.UG.FTS.B,
28.98%,
1/25/25
..
745
758
991700250.UG.FTS.B,
28.98%,
1/25/25
..
370
377
991702318.UG.FTS.B,
28.98%,
1/25/25
..
134
138
991703212.UG.FTS.B,
28.98%,
1/25/25
..
81
80
991706205.UG.FTS.B,
28.98%,
1/25/25
..
82
12
991707057.UG.FTS.B,
28.98%,
1/25/25
..
102
105
991708850.UG.FTS.B,
28.98%,
1/25/25
..
334
340
991710299.UG.FTS.B,
28.98%,
1/25/25
..
8
8
991711013.UG.FTS.B,
28.98%,
1/25/25
..
568
569
991711184.UG.FTS.B,
28.98%,
1/25/25
..
1,011
1,029
991711440.UG.FTS.B,
28.98%,
1/25/25
..
89
91
991713337.UG.FTS.B,
28.98%,
1/25/25
..
71
71
991717265.UG.FTS.B,
28.98%,
1/25/25
..
129
132
991721843.UG.FTS.B,
28.98%,
1/25/25
..
3,900
2,577
991733803.UG.FTS.B,
28.98%,
1/25/25
..
10
10
991739770.UG.FTS.B,
28.98%,
1/25/25
..
238
237
991741956.UG.FTS.B,
28.98%,
1/25/25
..
640
650
991744587.UG.FTS.B,
28.98%,
1/25/25
..
208
213
991751144.UG.FTS.B,
28.98%,
1/25/25
..
307
308
991759069.UG.FTS.B,
28.98%,
1/25/25
..
256
258
991760796.UG.FTS.B,
28.98%,
1/25/25
..
1,391
1,414
991761945.UG.FTS.B,
28.98%,
1/25/25
..
92
94
991762497.UG.FTS.B,
28.98%,
1/25/25
..
104
107
991763443.UG.FTS.B,
28.98%,
1/25/25
..
23
23
991763505.UG.FTS.B,
28.98%,
1/25/25
..
118
121
991764057.UG.FTS.B,
28.98%,
1/25/25
..
91
93
991767844.UG.FTS.B,
28.98%,
1/25/25
..
160
163
991776835.UG.FTS.B,
28.98%,
1/25/25
..
186
190
991782171.UG.FTS.B,
28.98%,
1/25/25
..
65
66
991782809.UG.FTS.B,
28.98%,
1/25/25
..
273
278
991783323.UG.FTS.B,
28.98%,
1/25/25
..
552
555
991789094.UG.FTS.B,
28.98%,
1/25/25
..
142
145
991790856.UG.FTS.B,
28.98%,
1/25/25
..
871
886
991791903.UG.FTS.B,
28.98%,
1/25/25
..
217
221
991796376.UG.FTS.B,
28.98%,
1/25/25
..
12
12
991796764.UG.FTS.B,
28.98%,
1/25/25
..
68
68
991801025.UG.FTS.B,
28.98%,
1/25/25
..
118
120
991801847.UG.FTS.B,
28.98%,
1/25/25
..
199
202
991801875.UG.FTS.B,
28.98%,
1/25/25
..
160
163
991804347.UG.FTS.B,
28.98%,
1/25/25
..
515
517
991804771.UG.FTS.B,
28.98%,
1/25/25
..
559
565
991805979.UG.FTS.B,
28.98%,
1/25/25
..
51
52
991811893.UG.FTS.B,
28.98%,
1/25/25
..
73
75
991813711.UG.FTS.B,
28.98%,
1/25/25
..
1,413
1,435
991816486.UG.FTS.B,
28.98%,
1/25/25
..
405
412
991825899.UG.FTS.B,
28.98%,
1/25/25
..
338
343
991826324.UG.FTS.B,
28.98%,
1/25/25
..
714
710
991829842.UG.FTS.B,
28.98%,
1/25/25
..
–
–
991831218.UG.FTS.B,
28.98%,
1/25/25
..
19
20
991832332.UG.FTS.B,
28.98%,
1/25/25
..
235
239
991798543.UG.FTS.B,
29.48%,
1/25/25
..
71
72
991583030.UG.FTS.B,
29.49%,
1/25/25
..
899
903
991583154.UG.FTS.B,
29.49%,
1/25/25
..
706
725
991583347.UG.FTS.B,
29.49%,
1/25/25
..
248
254
991583685.UG.FTS.B,
29.49%,
1/25/25
..
1,449
1,486
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
139
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991583696.UG.FTS.B,
29.49%,
1/25/25
..
$
220
$
223
991584343.UG.FTS.B,
29.49%,
1/25/25
..
2,206
2,228
991584718.UG.FTS.B,
29.49%,
1/25/25
..
1,317
1,345
991584908.UG.FTS.B,
29.49%,
1/25/25
..
2,422
2,490
991584971.UG.FTS.B,
29.49%,
1/25/25
..
175
180
991585000.UG.FTS.B,
29.49%,
1/25/25
..
318
323
991586459.UG.FTS.B,
29.49%,
1/25/25
..
43
44
991586508.UG.FTS.B,
29.49%,
1/25/25
..
3
3
991586667.UG.FTS.B,
29.49%,
1/25/25
..
189
195
991586992.UG.FTS.B,
29.49%,
1/25/25
..
116
119
991587594.UG.FTS.B,
29.49%,
1/25/25
..
29
29
991588105.UG.FTS.B,
29.49%,
1/25/25
..
660
668
991588166.UG.FTS.B,
29.49%,
1/25/25
..
343
351
991588361.UG.FTS.B,
29.49%,
1/25/25
..
49
50
991588873.UG.FTS.B,
29.49%,
1/25/25
..
426
437
991591035.UG.FTS.B,
29.49%,
1/25/25
..
699
696
991591302.UG.FTS.B,
29.49%,
1/25/25
..
870
596
991591360.UG.FTS.B,
29.49%,
1/25/25
..
766
787
991592156.UG.FTS.B,
29.49%,
1/25/25
..
114
115
991592411.UG.FTS.B,
29.49%,
1/25/25
..
256
260
991592874.UG.FTS.B,
29.49%,
1/25/25
..
548
562
991594707.UG.FTS.B,
29.49%,
1/25/25
..
219
225
991595216.UG.FTS.B,
29.49%,
1/25/25
..
322
326
991595877.UG.FTS.B,
29.49%,
1/25/25
..
221
226
991595953.UG.FTS.B,
29.49%,
1/25/25
..
959
985
991597020.UG.FTS.B,
29.49%,
1/25/25
..
715
734
991597092.UG.FTS.B,
29.49%,
1/25/25
..
259
265
991597703.UG.FTS.B,
29.49%,
1/25/25
..
248
248
991598369.UG.FTS.B,
29.49%,
1/25/25
..
218
219
991598629.UG.FTS.B,
29.49%,
1/25/25
..
1,676
1,690
991598825.UG.FTS.B,
29.49%,
1/25/25
..
967
962
991602832.UG.FTS.B,
29.49%,
1/25/25
..
930
929
991604309.UG.FTS.B,
29.49%,
1/25/25
..
118
120
991607899.UG.FTS.B,
29.49%,
1/25/25
..
137
136
991611906.UG.FTS.B,
29.49%,
1/25/25
..
423
434
991617012.UG.FTS.B,
29.49%,
1/25/25
..
308
316
991622867.UG.FTS.B,
29.49%,
1/25/25
..
151
154
991625116.UG.FTS.B,
29.49%,
1/25/25
..
1,114
1,145
991630215.UG.FTS.B,
29.49%,
1/25/25
..
42
43
991631036.UG.FTS.B,
29.49%,
1/25/25
..
449
461
991633323.UG.FTS.B,
29.49%,
1/25/25
..
37
37
991633564.UG.FTS.B,
29.49%,
1/25/25
..
61
61
991634734.UG.FTS.B,
29.49%,
1/25/25
..
119
121
991635396.UG.FTS.B,
29.49%,
1/25/25
..
191
196
991637663.UG.FTS.B,
29.49%,
1/25/25
..
254
171
991638246.UG.FTS.B,
29.49%,
1/25/25
..
163
166
991638937.UG.FTS.B,
29.49%,
1/25/25
..
84
85
991639720.UG.FTS.B,
29.49%,
1/25/25
..
1,428
1,444
991640031.UG.FTS.B,
29.49%,
1/25/25
..
49
50
991640216.UG.FTS.B,
29.49%,
1/25/25
..
570
586
991640235.UG.FTS.B,
29.49%,
1/25/25
..
2,480
2,545
991640515.UG.FTS.B,
29.49%,
1/25/25
..
65
66
991641283.UG.FTS.B,
29.49%,
1/25/25
..
69
70
991641385.UG.FTS.B,
29.49%,
1/25/25
..
1,122
1,152
991641968.UG.FTS.B,
29.49%,
1/25/25
..
178
183
991642393.UG.FTS.B,
29.49%,
1/25/25
..
57
58
991642638.UG.FTS.B,
29.49%,
1/25/25
..
172
177
991642788.UG.FTS.B,
29.49%,
1/25/25
..
138
142
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991643136.UG.FTS.B,
29.49%,
1/25/25
..
$
487
$
493
991645077.UG.FTS.B,
29.49%,
1/25/25
..
92
94
991645432.UG.FTS.B,
29.49%,
1/25/25
..
113
116
991645478.UG.FTS.B,
29.49%,
1/25/25
..
38
38
991647695.UG.FTS.B,
29.49%,
1/25/25
..
10
10
991647702.UG.FTS.B,
29.49%,
1/25/25
..
35
36
991647792.UG.FTS.B,
29.49%,
1/25/25
..
123
126
991651364.UG.FTS.B,
29.49%,
1/25/25
..
34
35
991653933.UG.FTS.B,
29.49%,
1/25/25
..
50
50
991655935.UG.FTS.B,
29.49%,
1/25/25
..
1,176
1,187
991656796.UG.FTS.B,
29.49%,
1/25/25
..
380
390
991658814.UG.FTS.B,
29.49%,
1/25/25
..
93
70
991659325.UG.FTS.B,
29.49%,
1/25/25
..
521
534
991659437.UG.FTS.B,
29.49%,
1/25/25
..
158
163
991659871.UG.FTS.B,
29.49%,
1/25/25
..
29
30
991659953.UG.FTS.B,
29.49%,
1/25/25
..
90
92
991660244.UG.FTS.B,
29.49%,
1/25/25
..
23
23
991660574.UG.FTS.B,
29.49%,
1/25/25
..
73
74
991663537.UG.FTS.B,
29.49%,
1/25/25
..
48
49
991663552.UG.FTS.B,
29.49%,
1/25/25
..
194
199
991666619.UG.FTS.B,
29.49%,
1/25/25
..
45
45
991670639.UG.FTS.B,
29.49%,
1/25/25
..
611
621
991670995.UG.FTS.B,
29.49%,
1/25/25
..
164
168
991675825.UG.FTS.B,
29.49%,
1/25/25
..
72
73
991676449.UG.FTS.B,
29.49%,
1/25/25
..
478
490
991679229.UG.FTS.B,
29.49%,
1/25/25
..
129
133
991679419.UG.FTS.B,
29.49%,
1/25/25
..
547
562
991680393.UG.FTS.B,
29.49%,
1/25/25
..
13
14
991680840.UG.FTS.B,
29.49%,
1/25/25
..
68
69
991681203.UG.FTS.B,
29.49%,
1/25/25
..
1,058
1,083
991684325.UG.FTS.B,
29.49%,
1/25/25
..
32
32
991684401.UG.FTS.B,
29.49%,
1/25/25
..
65
66
991684610.UG.FTS.B,
29.49%,
1/25/25
..
213
219
991686520.UG.FTS.B,
29.49%,
1/25/25
..
428
438
991693307.UG.FTS.B,
29.49%,
1/25/25
..
294
302
991694763.UG.FTS.B,
29.49%,
1/25/25
..
961
971
991694912.UG.FTS.B,
29.49%,
1/25/25
..
412
423
991695356.UG.FTS.B,
29.49%,
1/25/25
..
422
288
991697889.UG.FTS.B,
29.49%,
1/25/25
..
280
287
991699956.UG.FTS.B,
29.49%,
1/25/25
..
116
119
991700008.UG.FTS.B,
29.49%,
1/25/25
..
96
95
991700911.UG.FTS.B,
29.49%,
1/25/25
..
55
56
991702263.UG.FTS.B,
29.49%,
1/25/25
..
98
100
991703126.UG.FTS.B,
29.49%,
1/25/25
..
341
349
991703545.UG.FTS.B,
29.49%,
1/25/25
..
388
393
991704347.UG.FTS.B,
29.49%,
1/25/25
..
26
26
991705543.UG.FTS.B,
29.49%,
1/25/25
..
707
708
991706117.UG.FTS.B,
29.49%,
1/25/25
..
151
155
991706527.UG.FTS.B,
29.49%,
1/25/25
..
308
315
991706986.UG.FTS.B,
29.49%,
1/25/25
..
39
39
991708160.UG.FTS.B,
29.49%,
1/25/25
..
223
226
991714470.UG.FTS.B,
29.49%,
1/25/25
..
482
488
991716801.UG.FTS.B,
29.49%,
1/25/25
..
225
226
991717980.UG.FTS.B,
29.49%,
1/25/25
..
332
340
991718230.UG.FTS.B,
29.49%,
1/25/25
..
182
181
991719114.UG.FTS.B,
29.49%,
1/25/25
..
240
242
991719533.UG.FTS.B,
29.49%,
1/25/25
..
65
5
991719643.UG.FTS.B,
29.49%,
1/25/25
..
150
103
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
140
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991721073.UG.FTS.B,
29.49%,
1/25/25
..
$
322
$
330
991721100.UG.FTS.B,
29.49%,
1/25/25
..
331
340
991722230.UG.FTS.B,
29.49%,
1/25/25
..
276
275
991727305.UG.FTS.B,
29.49%,
1/25/25
..
947
972
991727344.UG.FTS.B,
29.49%,
1/25/25
..
231
229
991728108.UG.FTS.B,
29.49%,
1/25/25
..
127
128
991729230.UG.FTS.B,
29.49%,
1/25/25
..
1,990
1,987
991729680.UG.FTS.B,
29.49%,
1/25/25
..
312
41
991730081.UG.FTS.B,
29.49%,
1/25/25
..
568
583
991730401.UG.FTS.B,
29.49%,
1/25/25
..
82
84
991732943.UG.FTS.B,
29.49%,
1/25/25
..
228
230
991733186.UG.FTS.B,
29.49%,
1/25/25
..
592
597
991734934.UG.FTS.B,
29.49%,
1/25/25
..
558
560
991735159.UG.FTS.B,
29.49%,
1/25/25
..
19
19
991735215.UG.FTS.B,
29.49%,
1/25/25
..
164
166
991737501.UG.FTS.B,
29.49%,
1/25/25
..
239
245
991742424.UG.FTS.B,
29.49%,
1/25/25
..
660
677
991742587.UG.FTS.B,
29.49%,
1/25/25
..
90
92
991742823.UG.FTS.B,
29.49%,
1/25/25
..
483
487
991744513.UG.FTS.B,
29.49%,
1/25/25
..
130
132
991746419.UG.FTS.B,
29.49%,
1/25/25
..
304
308
991747824.UG.FTS.B,
29.49%,
1/25/25
..
116
117
991750890.UG.FTS.B,
29.49%,
1/25/25
..
257
260
991754317.UG.FTS.B,
29.49%,
1/25/25
..
52
53
991756199.UG.FTS.B,
29.49%,
1/25/25
..
11
11
991756609.UG.FTS.B,
29.49%,
1/25/25
..
675
681
991758553.UG.FTS.B,
29.49%,
1/25/25
..
238
241
991759900.UG.FTS.B,
29.49%,
1/25/25
..
279
282
991762455.UG.FTS.B,
29.49%,
1/25/25
..
1,657
1,674
991764053.UG.FTS.B,
29.49%,
1/25/25
..
322
327
991765575.UG.FTS.B,
29.49%,
1/25/25
..
–
–
991766843.UG.FTS.B,
29.49%,
1/25/25
..
0
0
991768411.UG.FTS.B,
29.49%,
1/25/25
..
52
53
991772741.UG.FTS.B,
29.49%,
1/25/25
..
65
66
991773006.UG.FTS.B,
29.49%,
1/25/25
..
596
601
991777926.UG.FTS.B,
29.49%,
1/25/25
..
118
119
991778023.UG.FTS.B,
29.49%,
1/25/25
..
119
120
991778333.UG.FTS.B,
29.49%,
1/25/25
..
19
19
991779723.UG.FTS.B,
29.49%,
1/25/25
..
81
83
991781861.UG.FTS.B,
29.49%,
1/25/25
..
851
862
991783032.UG.FTS.B,
29.49%,
1/25/25
..
236
239
991783087.UG.FTS.B,
29.49%,
1/25/25
..
415
421
991783334.UG.FTS.B,
29.49%,
1/25/25
..
90
92
991783420.UG.FTS.B,
29.49%,
1/25/25
..
127
129
991783815.UG.FTS.B,
29.49%,
1/25/25
..
188
191
991784811.UG.FTS.B,
29.49%,
1/25/25
..
–
–
991787734.UG.FTS.B,
29.49%,
1/25/25
..
613
623
991788573.UG.FTS.B,
29.49%,
1/25/25
..
236
240
991789248.UG.FTS.B,
29.49%,
1/25/25
..
182
184
991789795.UG.FTS.B,
29.49%,
1/25/25
..
415
418
991790037.UG.FTS.B,
29.49%,
1/25/25
..
163
108
991790478.UG.FTS.B,
29.49%,
1/25/25
..
1
1
991790746.UG.FTS.B,
29.49%,
1/25/25
..
129
131
991792086.UG.FTS.B,
29.49%,
1/25/25
..
1,602
1,605
991792282.UG.FTS.B,
29.49%,
1/25/25
..
471
478
991795623.UG.FTS.B,
29.49%,
1/25/25
..
53
54
991796444.UG.FTS.B,
29.49%,
1/25/25
..
74
76
991796553.UG.FTS.B,
29.49%,
1/25/25
..
5
5
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991796816.UG.FTS.B,
29.49%,
1/25/25
..
$
6
$
6
991798150.UG.FTS.B,
29.49%,
1/25/25
..
880
892
991798152.UG.FTS.B,
29.49%,
1/25/25
..
72
73
991798398.UG.FTS.B,
29.49%,
1/25/25
..
106
109
991800376.UG.FTS.B,
29.49%,
1/25/25
..
585
591
991801570.UG.FTS.B,
29.49%,
1/25/25
..
943
954
991803714.UG.FTS.B,
29.49%,
1/25/25
..
180
182
991809008.UG.FTS.B,
29.49%,
1/25/25
..
148
147
991811394.UG.FTS.B,
29.49%,
1/25/25
..
166
110
991811682.UG.FTS.B,
29.49%,
1/25/25
..
0
0
991812847.UG.FTS.B,
29.49%,
1/25/25
..
98
100
991813221.UG.FTS.B,
29.49%,
1/25/25
..
168
169
991813928.UG.FTS.B,
29.49%,
1/25/25
..
174
177
991814046.UG.FTS.B,
29.49%,
1/25/25
..
60
61
991819908.UG.FTS.B,
29.49%,
1/25/25
..
170
173
991820086.UG.FTS.B,
29.49%,
1/25/25
..
26
26
991822276.UG.FTS.B,
29.49%,
1/25/25
..
248
250
991824971.UG.FTS.B,
29.49%,
1/25/25
..
45
45
991828099.UG.FTS.B,
29.49%,
1/25/25
..
30
31
991828430.UG.FTS.B,
29.49%,
1/25/25
..
269
21
991829201.UG.FTS.B,
29.49%,
1/25/25
..
2,345
2,377
991831947.UG.FTS.B,
29.49%,
1/25/25
..
97
99
991764505.UG.FTS.B,
29.99%,
1/25/25
..
48
49
991688034.UG.FTS.B,
14.98%,
1/26/25
..
244
247
991704337.UG.FTS.B,
14.98%,
1/26/25
..
1,672
1,719
991705574.UG.FTS.B,
14.98%,
1/26/25
..
734
754
991763100.UG.FTS.B,
15%,
1/26/25
.....
124
126
991680628.UG.FTS.B,
15.97%,
1/26/25
..
8
8
991844506.UG.FTS.B,
15.97%,
1/26/25
..
2,788
2,854
991588990.UG.FTS.B,
16.99%,
1/26/25
..
2,260
2,320
991594194.UG.FTS.B,
16.99%,
1/26/25
..
146
147
991651888.UG.FTS.B,
16.99%,
1/26/25
..
6
6
991662447.UG.FTS.B,
16.99%,
1/26/25
..
687
702
991666502.UG.FTS.B,
16.99%,
1/26/25
..
564
579
991739565.UG.FTS.B,
16.99%,
1/26/25
..
6,547
6,731
991757415.UG.FTS.B,
16.99%,
1/26/25
..
14
15
991631242.UG.FTS.B,
17.99%,
1/26/25
..
620
638
991635395.UG.FTS.B,
17.99%,
1/26/25
..
753
775
991644503.UG.FTS.B,
17.99%,
1/26/25
..
3
3
991730063.UG.FTS.B,
17.99%,
1/26/25
..
3,747
3,850
991787242.UG.FTS.B,
17.99%,
1/26/25
..
1,405
1,440
991806807.UG.FTS.B,
17.99%,
1/26/25
..
594
606
991630337.UG.FTS.B,
18.97%,
1/26/25
..
121
124
991639126.UG.FTS.B,
18.97%,
1/26/25
..
251
257
991792817.UG.FTS.B,
18.97%,
1/26/25
..
931
950
991629418.UG.FTS.B,
19.21%,
1/26/25
..
859
888
991638998.UG.FTS.B,
19.21%,
1/26/25
..
97
98
991650331.UG.FTS.B,
19.21%,
1/26/25
..
37
38
991706919.UG.FTS.B,
19.21%,
1/26/25
..
123
126
991791869.UG.FTS.B,
19.21%,
1/26/25
..
280
286
991693301.UG.FTS.B,
19.8%,
1/26/25
...
233
239
991594697.UG.FTS.B,
19.99%,
1/26/25
..
378
390
991623713.UG.FTS.B,
19.99%,
1/26/25
..
1,102
1,102
991663529.UG.FTS.B,
19.99%,
1/26/25
..
13
13
991664112.UG.FTS.B,
19.99%,
1/26/25
..
1,024
1,042
991666842.UG.FTS.B,
19.99%,
1/26/25
..
698
718
991684874.UG.FTS.B,
19.99%,
1/26/25
..
221
227
991686652.UG.FTS.B,
19.99%,
1/26/25
..
299
304
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
141
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991687274.UG.FTS.B,
19.99%,
1/26/25
..
$
273
$
278
991712940.UG.FTS.B,
19.99%,
1/26/25
..
37
38
991721988.UG.FTS.B,
19.99%,
1/26/25
..
94
96
991725855.UG.FTS.B,
19.99%,
1/26/25
..
463
467
991726295.UG.FTS.B,
19.99%,
1/26/25
..
1,704
1,750
991728262.UG.FTS.B,
19.99%,
1/26/25
..
9
10
991747132.UG.FTS.B,
19.99%,
1/26/25
..
14
14
991747371.UG.FTS.B,
19.99%,
1/26/25
..
286
294
991753153.UG.FTS.B,
19.99%,
1/26/25
..
90
92
991815429.UG.FTS.B,
19.99%,
1/26/25
..
909
925
991818136.UG.FTS.B,
19.99%,
1/26/25
..
192
197
991679000.UG.FTS.B,
20.46%,
1/26/25
..
942
966
991722451.UG.FTS.B,
20.46%,
1/26/25
..
893
915
991691649.UG.FTS.B,
20.97%,
1/26/25
..
709
720
991809012.UG.FTS.B,
20.97%,
1/26/25
..
5
5
991689234.UG.FTS.B,
21.46%,
1/26/25
..
224
229
991731669.UG.FTS.B,
21.46%,
1/26/25
..
1,405
1,415
991804044.UG.FTS.B,
21.46%,
1/26/25
..
73
75
991683377.UG.FTS.B,
21.97%,
1/26/25
..
220
225
991637645.UG.FTS.B,
21.98%,
1/26/25
..
17
18
991690970.UG.FTS.B,
21.98%,
1/26/25
..
1,415
1,448
991718023.UG.FTS.B,
22.97%,
1/26/25
..
1,413
1,445
991774735.UG.FTS.B,
22.97%,
1/26/25
..
1,342
1,366
991792398.UG.FTS.B,
22.97%,
1/26/25
..
186
188
991634009.UG.FTS.B,
23.95%,
1/26/25
..
140
141
991661911.UG.FTS.B,
23.95%,
1/26/25
..
845
861
991671848.UG.FTS.B,
23.95%,
1/26/25
..
39
40
991719060.UG.FTS.B,
23.95%,
1/26/25
..
3,301
3,370
991722234.UG.FTS.B,
23.95%,
1/26/25
..
669
686
991741524.UG.FTS.B,
23.95%,
1/26/25
..
17
17
991812444.UG.FTS.B,
23.95%,
1/26/25
..
782
99
991662693.UG.FTS.B,
24.95%,
1/26/25
..
92
93
991655277.UG.FTS.B,
25.95%,
1/26/25
..
220
224
991702170.UG.FTS.B,
26.94%,
1/26/25
..
233
237
991629535.UG.FTS.B,
27.99%,
1/26/25
..
23
23
991637426.UG.FTS.B,
27.99%,
1/26/25
..
64
66
991644445.UG.FTS.B,
27.99%,
1/26/25
..
128
132
991662668.UG.FTS.B,
27.99%,
1/26/25
..
333
342
991665705.UG.FTS.B,
27.99%,
1/26/25
..
157
161
991799474.UG.FTS.B,
27.99%,
1/26/25
..
504
512
991589081.UG.FTS.B,
28.98%,
1/26/25
..
340
354
991590920.UG.FTS.B,
28.98%,
1/26/25
..
30
30
991592909.UG.FTS.B,
28.98%,
1/26/25
..
316
325
991593236.UG.FTS.B,
28.98%,
1/26/25
..
338
339
991593526.UG.FTS.B,
28.98%,
1/26/25
..
299
308
991593781.UG.FTS.B,
28.98%,
1/26/25
..
159
164
991594391.UG.FTS.B,
28.98%,
1/26/25
..
248
255
991598258.UG.FTS.B,
28.98%,
1/26/25
..
270
274
991602284.UG.FTS.B,
28.98%,
1/26/25
..
2,240
2,262
991604693.UG.FTS.B,
28.98%,
1/26/25
..
1,213
1,223
991604950.UG.FTS.B,
28.98%,
1/26/25
..
147
151
991607010.UG.FTS.B,
28.98%,
1/26/25
..
1,639
1,665
991611008.UG.FTS.B,
28.98%,
1/26/25
..
538
352
991611456.UG.FTS.B,
28.98%,
1/26/25
..
219
225
991618996.UG.FTS.B,
28.98%,
1/26/25
..
391
391
991629035.UG.FTS.B,
28.98%,
1/26/25
..
237
244
991630723.UG.FTS.B,
28.98%,
1/26/25
..
302
310
991634636.UG.FTS.B,
28.98%,
1/26/25
..
502
516
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991636455.UG.FTS.B,
28.98%,
1/26/25
..
$
140
$
142
991638710.UG.FTS.B,
28.98%,
1/26/25
..
256
263
991638977.UG.FTS.B,
28.98%,
1/26/25
..
340
346
991641894.UG.FTS.B,
28.98%,
1/26/25
..
204
210
991645302.UG.FTS.B,
28.98%,
1/26/25
..
26
26
991653899.UG.FTS.B,
28.98%,
1/26/25
..
128
131
991656180.UG.FTS.B,
28.98%,
1/26/25
..
286
294
991658925.UG.FTS.B,
28.98%,
1/26/25
..
217
222
991660853.UG.FTS.B,
28.98%,
1/26/25
..
156
159
991661348.UG.FTS.B,
28.98%,
1/26/25
..
1,404
1,443
991661921.UG.FTS.B,
28.98%,
1/26/25
..
277
274
991662390.UG.FTS.B,
28.98%,
1/26/25
..
230
236
991663166.UG.FTS.B,
28.98%,
1/26/25
..
174
174
991663523.UG.FTS.B,
28.98%,
1/26/25
..
40
41
991664416.UG.FTS.B,
28.98%,
1/26/25
..
447
455
991665591.UG.FTS.B,
28.98%,
1/26/25
..
1,430
1,470
991665770.UG.FTS.B,
28.98%,
1/26/25
..
900
567
991665929.UG.FTS.B,
28.98%,
1/26/25
..
92
95
991668688.UG.FTS.B,
28.98%,
1/26/25
..
642
660
991676711.UG.FTS.B,
28.98%,
1/26/25
..
583
590
991678461.UG.FTS.B,
28.98%,
1/26/25
..
191
194
991682612.UG.FTS.B,
28.98%,
1/26/25
..
952
966
991685049.UG.FTS.B,
28.98%,
1/26/25
..
101
103
991686492.UG.FTS.B,
28.98%,
1/26/25
..
49
50
991688671.UG.FTS.B,
28.98%,
1/26/25
..
276
281
991698131.UG.FTS.B,
28.98%,
1/26/25
..
722
721
991701049.UG.FTS.B,
28.98%,
1/26/25
..
524
533
991701435.UG.FTS.B,
28.98%,
1/26/25
..
318
327
991702578.UG.FTS.B,
28.98%,
1/26/25
..
55
56
991703821.UG.FTS.B,
28.98%,
1/26/25
..
235
241
991707561.UG.FTS.B,
28.98%,
1/26/25
..
413
420
991711212.UG.FTS.B,
28.98%,
1/26/25
..
103
106
991716060.UG.FTS.B,
28.98%,
1/26/25
..
1,081
1,111
991718057.UG.FTS.B,
28.98%,
1/26/25
..
1,037
1,056
991723836.UG.FTS.B,
28.98%,
1/26/25
..
19
19
991735512.UG.FTS.B,
28.98%,
1/26/25
..
83
85
991743995.UG.FTS.B,
28.98%,
1/26/25
..
241
245
991745922.UG.FTS.B,
28.98%,
1/26/25
..
146
146
991747643.UG.FTS.B,
28.98%,
1/26/25
..
120
122
991748077.UG.FTS.B,
28.98%,
1/26/25
..
85
87
991750713.UG.FTS.B,
28.98%,
1/26/25
..
79
81
991750931.UG.FTS.B,
28.98%,
1/26/25
..
135
138
991753802.UG.FTS.B,
28.98%,
1/26/25
..
237
239
991758211.UG.FTS.B,
28.98%,
1/26/25
..
16
16
991759756.UG.FTS.B,
28.98%,
1/26/25
..
106
108
991764630.UG.FTS.B,
28.98%,
1/26/25
..
89
91
991771853.UG.FTS.B,
28.98%,
1/26/25
..
336
341
991774958.UG.FTS.B,
28.98%,
1/26/25
..
42
43
991778410.UG.FTS.B,
28.98%,
1/26/25
..
55
56
991779766.UG.FTS.B,
28.98%,
1/26/25
..
330
332
991781688.UG.FTS.B,
28.98%,
1/26/25
..
53
54
991783517.UG.FTS.B,
28.98%,
1/26/25
..
220
139
991784008.UG.FTS.B,
28.98%,
1/26/25
..
5,769
5,872
991788301.UG.FTS.B,
28.98%,
1/26/25
..
332
338
991788973.UG.FTS.B,
28.98%,
1/26/25
..
480
488
991792397.UG.FTS.B,
28.98%,
1/26/25
..
2,173
2,164
991803660.UG.FTS.B,
28.98%,
1/26/25
..
20
20
991804080.UG.FTS.B,
28.98%,
1/26/25
..
129
131
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
142
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991805176.UG.FTS.B,
28.98%,
1/26/25
..
$
24
$
24
991806708.UG.FTS.B,
28.98%,
1/26/25
..
16
16
991808600.UG.FTS.B,
28.98%,
1/26/25
..
565
574
991808749.UG.FTS.B,
28.98%,
1/26/25
..
70
72
991817075.UG.FTS.B,
28.98%,
1/26/25
..
258
260
991818761.UG.FTS.B,
28.98%,
1/26/25
..
188
191
991820024.UG.FTS.B,
28.98%,
1/26/25
..
180
183
991820446.UG.FTS.B,
28.98%,
1/26/25
..
149
151
991822639.UG.FTS.B,
28.98%,
1/26/25
..
48
49
991823991.UG.FTS.B,
28.98%,
1/26/25
..
74
76
991826236.UG.FTS.B,
28.98%,
1/26/25
..
777
791
991826545.UG.FTS.B,
28.98%,
1/26/25
..
24
24
991828591.UG.FTS.B,
28.98%,
1/26/25
..
55
56
991828828.UG.FTS.B,
28.98%,
1/26/25
..
49
50
991831863.UG.FTS.B,
28.98%,
1/26/25
..
644
652
991833990.UG.FTS.B,
28.98%,
1/26/25
..
469
477
991834277.UG.FTS.B,
28.98%,
1/26/25
..
469
477
991834362.UG.FTS.B,
28.98%,
1/26/25
..
398
403
991834597.UG.FTS.B,
28.98%,
1/26/25
..
4,083
4,154
991835056.UG.FTS.B,
28.98%,
1/26/25
..
4,224
4,298
991603387.UG.FTS.B,
29.45%,
1/26/25
..
893
887
991628939.UG.FTS.B,
29.45%,
1/26/25
..
37
38
991671164.UG.FTS.B,
29.45%,
1/26/25
..
43
43
991712881.UG.FTS.B,
29.46%,
1/26/25
..
740
759
991690106.UG.FTS.B,
29.47%,
1/26/25
..
135
136
991588896.UG.FTS.B,
29.49%,
1/26/25
..
578
593
991589080.UG.FTS.B,
29.49%,
1/26/25
..
554
560
991589676.UG.FTS.B,
29.49%,
1/26/25
..
1,124
1,153
991589741.UG.FTS.B,
29.49%,
1/26/25
..
106
109
991589757.UG.FTS.B,
29.49%,
1/26/25
..
684
687
991589763.UG.FTS.B,
29.49%,
1/26/25
..
230
237
991591011.UG.FTS.B,
29.49%,
1/26/25
..
1
1
991591083.UG.FTS.B,
29.49%,
1/26/25
..
371
383
991591418.UG.FTS.B,
29.49%,
1/26/25
..
399
415
991591592.UG.FTS.B,
29.49%,
1/26/25
..
16
17
991592122.UG.FTS.B,
29.49%,
1/26/25
..
433
444
991592192.UG.FTS.B,
29.49%,
1/26/25
..
215
221
991594206.UG.FTS.B,
29.49%,
1/26/25
..
28
29
991594647.UG.FTS.B,
29.49%,
1/26/25
..
158
159
991596813.UG.FTS.B,
29.49%,
1/26/25
..
50
51
991597744.UG.FTS.B,
29.49%,
1/26/25
..
43
43
991598816.UG.FTS.B,
29.49%,
1/26/25
..
189
195
991606181.UG.FTS.B,
29.49%,
1/26/25
..
334
343
991607097.UG.FTS.B,
29.49%,
1/26/25
..
421
431
991607495.UG.FTS.B,
29.49%,
1/26/25
..
1,874
1,920
991611773.UG.FTS.B,
29.49%,
1/26/25
..
176
180
991612147.UG.FTS.B,
29.49%,
1/26/25
..
123
127
991613744.UG.FTS.B,
29.49%,
1/26/25
..
251
169
991614201.UG.FTS.B,
29.49%,
1/26/25
..
57
58
991615222.UG.FTS.B,
29.49%,
1/26/25
..
142
141
991616010.UG.FTS.B,
29.49%,
1/26/25
..
1,608
1,653
991616526.UG.FTS.B,
29.49%,
1/26/25
..
234
240
991616810.UG.FTS.B,
29.49%,
1/26/25
..
519
533
991622618.UG.FTS.B,
29.49%,
1/26/25
..
271
279
991627812.UG.FTS.B,
29.49%,
1/26/25
..
8
8
991629066.UG.FTS.B,
29.49%,
1/26/25
..
47
47
991629685.UG.FTS.B,
29.49%,
1/26/25
..
75
75
991630176.UG.FTS.B,
29.49%,
1/26/25
..
392
389
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991631883.UG.FTS.B,
29.49%,
1/26/25
..
$
251
$
257
991635157.UG.FTS.B,
29.49%,
1/26/25
..
166
12
991635627.UG.FTS.B,
29.49%,
1/26/25
..
204
209
991637203.UG.FTS.B,
29.49%,
1/26/25
..
257
263
991637588.UG.FTS.B,
29.49%,
1/26/25
..
557
564
991637756.UG.FTS.B,
29.49%,
1/26/25
..
1,549
1,565
991638709.UG.FTS.B,
29.49%,
1/26/25
..
203
208
991638773.UG.FTS.B,
29.49%,
1/26/25
..
57
5
991640409.UG.FTS.B,
29.49%,
1/26/25
..
147
151
991640808.UG.FTS.B,
29.49%,
1/26/25
..
452
464
991641553.UG.FTS.B,
29.49%,
1/26/25
..
175
179
991642716.UG.FTS.B,
29.49%,
1/26/25
..
1
1
991642753.UG.FTS.B,
29.49%,
1/26/25
..
64
65
991642902.UG.FTS.B,
29.49%,
1/26/25
..
33
33
991643392.UG.FTS.B,
29.49%,
1/26/25
..
26
26
991644594.UG.FTS.B,
29.49%,
1/26/25
..
430
442
991644850.UG.FTS.B,
29.49%,
1/26/25
..
379
389
991645076.UG.FTS.B,
29.49%,
1/26/25
..
53
54
991645315.UG.FTS.B,
29.49%,
1/26/25
..
117
119
991645424.UG.FTS.B,
29.49%,
1/26/25
..
177
182
991647827.UG.FTS.B,
29.49%,
1/26/25
..
157
159
991649950.UG.FTS.B,
29.49%,
1/26/25
..
225
231
991650260.UG.FTS.B,
29.49%,
1/26/25
..
1,163
1,194
991653296.UG.FTS.B,
29.49%,
1/26/25
..
27
27
991656366.UG.FTS.B,
29.49%,
1/26/25
..
388
398
991656936.UG.FTS.B,
29.49%,
1/26/25
..
345
342
991657417.UG.FTS.B,
29.49%,
1/26/25
..
2,736
2,809
991659414.UG.FTS.B,
29.49%,
1/26/25
..
229
231
991662234.UG.FTS.B,
29.49%,
1/26/25
..
156
160
991663167.UG.FTS.B,
29.49%,
1/26/25
..
76
75
991663623.UG.FTS.B,
29.49%,
1/26/25
..
166
170
991663670.UG.FTS.B,
29.49%,
1/26/25
..
118
121
991663804.UG.FTS.B,
29.49%,
1/26/25
..
1,536
1,542
991664371.UG.FTS.B,
29.49%,
1/26/25
..
473
479
991665870.UG.FTS.B,
29.49%,
1/26/25
..
140
140
991666350.UG.FTS.B,
29.49%,
1/26/25
..
141
(3)
991667585.UG.FTS.B,
29.49%,
1/26/25
..
433
430
991668133.UG.FTS.B,
29.49%,
1/26/25
..
141
143
991668328.UG.FTS.B,
29.49%,
1/26/25
..
137
142
991669118.UG.FTS.B,
29.49%,
1/26/25
..
23
23
991669892.UG.FTS.B,
29.49%,
1/26/25
..
188
192
991670459.UG.FTS.B,
29.49%,
1/26/25
..
504
517
991671099.UG.FTS.B,
29.49%,
1/26/25
..
355
360
991673737.UG.FTS.B,
29.49%,
1/26/25
..
4,574
4,698
991674155.UG.FTS.B,
29.49%,
1/26/25
..
187
191
991674354.UG.FTS.B,
29.49%,
1/26/25
..
98
97
991674552.UG.FTS.B,
29.49%,
1/26/25
..
271
277
991676362.UG.FTS.B,
29.49%,
1/26/25
..
129
129
991676951.UG.FTS.B,
29.49%,
1/26/25
..
142
95
991677158.UG.FTS.B,
29.49%,
1/26/25
..
266
272
991678960.UG.FTS.B,
29.49%,
1/26/25
..
131
131
991679458.UG.FTS.B,
29.49%,
1/26/25
..
420
425
991680335.UG.FTS.B,
29.49%,
1/26/25
..
2,187
2,195
991682957.UG.FTS.B,
29.49%,
1/26/25
..
1,238
1,270
991683363.UG.FTS.B,
29.49%,
1/26/25
..
412
269
991683869.UG.FTS.B,
29.49%,
1/26/25
..
45
46
991686193.UG.FTS.B,
29.49%,
1/26/25
..
72
74
991686518.UG.FTS.B,
29.49%,
1/26/25
..
277
280
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
143
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991686747.UG.FTS.B,
29.49%,
1/26/25
..
$
62
$
61
991686882.UG.FTS.B,
29.49%,
1/26/25
..
347
356
991686956.UG.FTS.B,
29.49%,
1/26/25
..
164
12
991687275.UG.FTS.B,
29.49%,
1/26/25
..
8
8
991688295.UG.FTS.B,
29.49%,
1/26/25
..
119
123
991688387.UG.FTS.B,
29.49%,
1/26/25
..
1,061
1,104
991695029.UG.FTS.B,
29.49%,
1/26/25
..
89
90
991695946.UG.FTS.B,
29.49%,
1/26/25
..
613
622
991696562.UG.FTS.B,
29.49%,
1/26/25
..
54
55
991698577.UG.FTS.B,
29.49%,
1/26/25
..
614
621
991703021.UG.FTS.B,
29.49%,
1/26/25
..
102
102
991704585.UG.FTS.B,
29.49%,
1/26/25
..
293
297
991707041.UG.FTS.B,
29.49%,
1/26/25
..
104
106
991710350.UG.FTS.B,
29.49%,
1/26/25
..
82
84
991710670.UG.FTS.B,
29.49%,
1/26/25
..
584
600
991711068.UG.FTS.B,
29.49%,
1/26/25
..
96
98
991711376.UG.FTS.B,
29.49%,
1/26/25
..
158
161
991714720.UG.FTS.B,
29.49%,
1/26/25
..
690
701
991714874.UG.FTS.B,
29.49%,
1/26/25
..
13
13
991722546.UG.FTS.B,
29.49%,
1/26/25
..
59
60
991727706.UG.FTS.B,
29.49%,
1/26/25
..
48
49
991727832.UG.FTS.B,
29.49%,
1/26/25
..
329
337
991730690.UG.FTS.B,
29.49%,
1/26/25
..
2,476
2,509
991731015.UG.FTS.B,
29.49%,
1/26/25
..
87
89
991741187.UG.FTS.B,
29.49%,
1/26/25
..
8
8
991742213.UG.FTS.B,
29.49%,
1/26/25
..
1,485
1,523
991742808.UG.FTS.B,
29.49%,
1/26/25
..
561
561
991744262.UG.FTS.B,
29.49%,
1/26/25
..
75
77
991747285.UG.FTS.B,
29.49%,
1/26/25
..
78
77
991748382.UG.FTS.B,
29.49%,
1/26/25
..
662
679
991749224.UG.FTS.B,
29.49%,
1/26/25
..
117
120
991756106.UG.FTS.B,
29.49%,
1/26/25
..
222
228
991757929.UG.FTS.B,
29.49%,
1/26/25
..
64
52
991766090.UG.FTS.B,
29.49%,
1/26/25
..
37
38
991771654.UG.FTS.B,
29.49%,
1/26/25
..
1,000
671
991772896.UG.FTS.B,
29.49%,
1/26/25
..
2,875
2,918
991775324.UG.FTS.B,
29.49%,
1/26/25
..
617
622
991777453.UG.FTS.B,
29.49%,
1/26/25
..
57
58
991779497.UG.FTS.B,
29.49%,
1/26/25
..
371
376
991781793.UG.FTS.B,
29.49%,
1/26/25
..
27
26
991781866.UG.FTS.B,
29.49%,
1/26/25
..
61
61
991782801.UG.FTS.B,
29.49%,
1/26/25
..
2,827
2,865
991783902.UG.FTS.B,
29.49%,
1/26/25
..
321
326
991784217.UG.FTS.B,
29.49%,
1/26/25
..
95
97
991784518.UG.FTS.B,
29.49%,
1/26/25
..
1,041
1,058
991791204.UG.FTS.B,
29.49%,
1/26/25
..
122
124
991791858.UG.FTS.B,
29.49%,
1/26/25
..
112
(1)
991791950.UG.FTS.B,
29.49%,
1/26/25
..
724
736
991793797.UG.FTS.B,
29.49%,
1/26/25
..
332
335
991795404.UG.FTS.B,
29.49%,
1/26/25
..
138
18
991798670.UG.FTS.B,
29.49%,
1/26/25
..
–
–
991799314.UG.FTS.B,
29.49%,
1/26/25
..
81
0
991801746.UG.FTS.B,
29.49%,
1/26/25
..
528
536
991804476.UG.FTS.B,
29.49%,
1/26/25
..
121
122
991806530.UG.FTS.B,
29.49%,
1/26/25
..
187
190
991811325.UG.FTS.B,
29.49%,
1/26/25
..
1,859
1,887
991817678.UG.FTS.B,
29.49%,
1/26/25
..
270
273
991817875.UG.FTS.B,
29.49%,
1/26/25
..
97
99
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991820442.UG.FTS.B,
29.49%,
1/26/25
..
$
161
$
164
991822749.UG.FTS.B,
29.49%,
1/26/25
..
16
16
991823773.UG.FTS.B,
29.49%,
1/26/25
..
41
40
991824166.UG.FTS.B,
29.49%,
1/26/25
..
227
230
991824900.UG.FTS.B,
29.49%,
1/26/25
..
95
97
991825508.UG.FTS.B,
29.49%,
1/26/25
..
58
59
991826343.UG.FTS.B,
29.49%,
1/26/25
..
680
692
991827132.UG.FTS.B,
29.49%,
1/26/25
..
142
144
991828521.UG.FTS.B,
29.49%,
1/26/25
..
46
46
991829394.UG.FTS.B,
29.49%,
1/26/25
..
2,477
2,512
991832099.UG.FTS.B,
29.49%,
1/26/25
..
89
91
991835725.UG.FTS.B,
29.49%,
1/26/25
..
1,596
1,621
991835985.UG.FTS.B,
29.49%,
1/26/25
..
1,502
1,522
991836703.UG.FTS.B,
29.49%,
1/26/25
..
135
136
991836743.UG.FTS.B,
29.49%,
1/26/25
..
97
99
991649409.UG.FTS.B,
14.98%,
1/27/25
..
922
950
991681455.UG.FTS.B,
15%,
1/27/25
.....
790
807
991837875.UG.FTS.B,
15%,
1/27/25
.....
407
416
991594447.UG.FTS.B,
16.99%,
1/27/25
..
6,303
6,447
991653237.UG.FTS.B,
16.99%,
1/27/25
..
407
417
991653768.UG.FTS.B,
16.99%,
1/27/25
..
218
224
991630296.UG.FTS.B,
18.97%,
1/27/25
..
215
222
991594369.UG.FTS.B,
19.99%,
1/27/25
..
346
351
991595612.UG.FTS.B,
19.99%,
1/27/25
..
60
62
991596997.UG.FTS.B,
19.99%,
1/27/25
..
143
143
991603042.UG.FTS.B,
19.99%,
1/27/25
..
10
10
991603461.UG.FTS.B,
19.99%,
1/27/25
..
782
806
991604169.UG.FTS.B,
19.99%,
1/27/25
..
31
32
991604490.UG.FTS.B,
19.99%,
1/27/25
..
179
185
991604987.UG.FTS.B,
19.99%,
1/27/25
..
378
389
991606626.UG.FTS.B,
19.99%,
1/27/25
..
378
390
991606748.UG.FTS.B,
19.99%,
1/27/25
..
255
260
991607069.UG.FTS.B,
19.99%,
1/27/25
..
9
9
991610646.UG.FTS.B,
19.99%,
1/27/25
..
195
201
991613039.UG.FTS.B,
19.99%,
1/27/25
..
801
825
991613609.UG.FTS.B,
19.99%,
1/27/25
..
256
263
991616276.UG.FTS.B,
19.99%,
1/27/25
..
330
339
991622510.UG.FTS.B,
19.99%,
1/27/25
..
75
77
991629277.UG.FTS.B,
19.99%,
1/27/25
..
71
72
991630205.UG.FTS.B,
19.99%,
1/27/25
..
49
50
991634123.UG.FTS.B,
19.99%,
1/27/25
..
1,489
993
991636043.UG.FTS.B,
19.99%,
1/27/25
..
12
12
991639649.UG.FTS.B,
19.99%,
1/27/25
..
1,809
1,840
991653534.UG.FTS.B,
19.99%,
1/27/25
..
191
196
991656462.UG.FTS.B,
19.99%,
1/27/25
..
160
164
991665857.UG.FTS.B,
19.99%,
1/27/25
..
231
238
991670504.UG.FTS.B,
19.99%,
1/27/25
..
207
210
991679362.UG.FTS.B,
19.99%,
1/27/25
..
94
97
991687385.UG.FTS.B,
19.99%,
1/27/25
..
299
308
991734391.UG.FTS.B,
19.99%,
1/27/25
..
65
66
991735360.UG.FTS.B,
19.99%,
1/27/25
..
13
14
991740576.UG.FTS.B,
19.99%,
1/27/25
..
469
483
991742004.UG.FTS.B,
19.99%,
1/27/25
..
100
103
991787817.UG.FTS.B,
19.99%,
1/27/25
..
150
152
991790958.UG.FTS.B,
19.99%,
1/27/25
..
47
49
991836470.UG.FTS.B,
19.99%,
1/27/25
..
159
162
991611207.UG.FTS.B,
22.95%,
1/27/25
..
911
923
991666052.UG.FTS.B,
25.98%,
1/27/25
..
100
69
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
144
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991599071.UG.FTS.B,
26.49%,
1/27/25
..
$
357
$
366
991620473.UG.FTS.B,
27.95%,
1/27/25
..
226
229
991593388.UG.FTS.B,
27.99%,
1/27/25
..
99
102
991598032.UG.FTS.B,
27.99%,
1/27/25
..
243
248
991611551.UG.FTS.B,
27.99%,
1/27/25
..
175
174
991612981.UG.FTS.B,
27.99%,
1/27/25
..
48
49
991629247.UG.FTS.B,
27.99%,
1/27/25
..
239
243
991629950.UG.FTS.B,
27.99%,
1/27/25
..
34
35
991746576.UG.FTS.B,
27.99%,
1/27/25
..
1,652
1,645
991784579.UG.FTS.B,
27.99%,
1/27/25
..
82
84
991809385.UG.FTS.B,
27.99%,
1/27/25
..
75
76
991593683.UG.FTS.B,
28.98%,
1/27/25
..
34
34
991593717.UG.FTS.B,
28.98%,
1/27/25
..
15
15
991593724.UG.FTS.B,
28.98%,
1/27/25
..
807
813
991594281.UG.FTS.B,
28.98%,
1/27/25
..
757
755
991594298.UG.FTS.B,
28.98%,
1/27/25
..
300
302
991594312.UG.FTS.B,
28.98%,
1/27/25
..
636
648
991594525.UG.FTS.B,
28.98%,
1/27/25
..
0
0
991594818.UG.FTS.B,
28.98%,
1/27/25
..
222
223
991594933.UG.FTS.B,
28.98%,
1/27/25
..
1,605
1,639
991594966.UG.FTS.B,
28.98%,
1/27/25
..
78
80
991595331.UG.FTS.B,
28.98%,
1/27/25
..
154
158
991595486.UG.FTS.B,
28.98%,
1/27/25
..
1,452
1,493
991595661.UG.FTS.B,
28.98%,
1/27/25
..
60
61
991595696.UG.FTS.B,
28.98%,
1/27/25
..
94
96
991595934.UG.FTS.B,
28.98%,
1/27/25
..
324
328
991596135.UG.FTS.B,
28.98%,
1/27/25
..
77
79
991596423.UG.FTS.B,
28.98%,
1/27/25
..
1,254
1,280
991596472.UG.FTS.B,
28.98%,
1/27/25
..
435
448
991596778.UG.FTS.B,
28.98%,
1/27/25
..
0
0
991596874.UG.FTS.B,
28.98%,
1/27/25
..
232
238
991596979.UG.FTS.B,
28.98%,
1/27/25
..
900
914
991597032.UG.FTS.B,
28.98%,
1/27/25
..
0
0
991597253.UG.FTS.B,
28.98%,
1/27/25
..
74
76
991597711.UG.FTS.B,
28.98%,
1/27/25
..
176
181
991597724.UG.FTS.B,
28.98%,
1/27/25
..
63
64
991597802.UG.FTS.B,
28.98%,
1/27/25
..
916
939
991597854.UG.FTS.B,
28.98%,
1/27/25
..
475
485
991597979.UG.FTS.B,
28.98%,
1/27/25
..
6
6
991598054.UG.FTS.B,
28.98%,
1/27/25
..
1,431
1,472
991598602.UG.FTS.B,
28.98%,
1/27/25
..
198
203
991598783.UG.FTS.B,
28.98%,
1/27/25
..
1,285
1,311
991599313.UG.FTS.B,
28.98%,
1/27/25
..
480
494
991599468.UG.FTS.B,
28.98%,
1/27/25
..
360
363
991600295.UG.FTS.B,
28.98%,
1/27/25
..
192
198
991601203.UG.FTS.B,
28.98%,
1/27/25
..
2,469
2,538
991601850.UG.FTS.B,
28.98%,
1/27/25
..
1,920
1,976
991602414.UG.FTS.B,
28.98%,
1/27/25
..
192
198
991602564.UG.FTS.B,
28.98%,
1/27/25
..
93
96
991602821.UG.FTS.B,
28.98%,
1/27/25
..
1,774
1,824
991602932.UG.FTS.B,
28.98%,
1/27/25
..
850
862
991603572.UG.FTS.B,
28.98%,
1/27/25
..
1,685
1,734
991603999.UG.FTS.B,
28.98%,
1/27/25
..
223
226
991604001.UG.FTS.B,
28.98%,
1/27/25
..
250
258
991604438.UG.FTS.B,
28.98%,
1/27/25
..
22
22
991604766.UG.FTS.B,
28.98%,
1/27/25
..
703
713
991605311.UG.FTS.B,
28.98%,
1/27/25
..
112
115
991605868.UG.FTS.B,
28.98%,
1/27/25
..
353
363
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991606158.UG.FTS.B,
28.98%,
1/27/25
..
$
162
$
165
991607306.UG.FTS.B,
28.98%,
1/27/25
..
111
114
991607985.UG.FTS.B,
28.98%,
1/27/25
..
35
36
991608665.UG.FTS.B,
28.98%,
1/27/25
..
617
634
991609082.UG.FTS.B,
28.98%,
1/27/25
..
188
196
991609616.UG.FTS.B,
28.98%,
1/27/25
..
381
392
991611663.UG.FTS.B,
28.98%,
1/27/25
..
350
364
991613097.UG.FTS.B,
28.98%,
1/27/25
..
201
207
991614181.UG.FTS.B,
28.98%,
1/27/25
..
494
497
991614332.UG.FTS.B,
28.98%,
1/27/25
..
–
–
991614853.UG.FTS.B,
28.98%,
1/27/25
..
1,431
1,472
991615115.UG.FTS.B,
28.98%,
1/27/25
..
241
(5)
991615144.UG.FTS.B,
28.98%,
1/27/25
..
200
206
991615331.UG.FTS.B,
28.98%,
1/27/25
..
187
192
991615612.UG.FTS.B,
28.98%,
1/27/25
..
128
130
991615892.UG.FTS.B,
28.98%,
1/27/25
..
703
723
991616336.UG.FTS.B,
28.98%,
1/27/25
..
178
181
991617077.UG.FTS.B,
28.98%,
1/27/25
..
343
353
991617118.UG.FTS.B,
28.98%,
1/27/25
..
413
416
991617463.UG.FTS.B,
28.98%,
1/27/25
..
1,884
1,911
991618978.UG.FTS.B,
28.98%,
1/27/25
..
236
242
991620210.UG.FTS.B,
28.98%,
1/27/25
..
172
177
991620222.UG.FTS.B,
28.98%,
1/27/25
..
132
134
991620928.UG.FTS.B,
28.98%,
1/27/25
..
110
114
991621129.UG.FTS.B,
28.98%,
1/27/25
..
626
644
991623327.UG.FTS.B,
28.98%,
1/27/25
..
65
66
991623357.UG.FTS.B,
28.98%,
1/27/25
..
284
291
991623437.UG.FTS.B,
28.98%,
1/27/25
..
409
421
991624157.UG.FTS.B,
28.98%,
1/27/25
..
158
163
991625017.UG.FTS.B,
28.98%,
1/27/25
..
305
308
991627111.UG.FTS.B,
28.98%,
1/27/25
..
4,789
4,927
991628534.UG.FTS.B,
28.98%,
1/27/25
..
134
133
991630700.UG.FTS.B,
28.98%,
1/27/25
..
392
402
991630885.UG.FTS.B,
28.98%,
1/27/25
..
469
470
991630973.UG.FTS.B,
28.98%,
1/27/25
..
138
10
991631171.UG.FTS.B,
28.98%,
1/27/25
..
356
363
991631340.UG.FTS.B,
28.98%,
1/27/25
..
408
418
991631459.UG.FTS.B,
28.98%,
1/27/25
..
432
446
991631807.UG.FTS.B,
28.98%,
1/27/25
..
303
311
991632093.UG.FTS.B,
28.98%,
1/27/25
..
436
449
991632344.UG.FTS.B,
28.98%,
1/27/25
..
127
131
991632516.UG.FTS.B,
28.98%,
1/27/25
..
312
320
991633180.UG.FTS.B,
28.98%,
1/27/25
..
71
73
991633929.UG.FTS.B,
28.98%,
1/27/25
..
649
668
991634644.UG.FTS.B,
28.98%,
1/27/25
..
161
164
991635049.UG.FTS.B,
28.98%,
1/27/25
..
638
649
991635121.UG.FTS.B,
28.98%,
1/27/25
..
957
985
991635670.UG.FTS.B,
28.98%,
1/27/25
..
957
985
991635758.UG.FTS.B,
28.98%,
1/27/25
..
2,081
279
991636408.UG.FTS.B,
28.98%,
1/27/25
..
537
542
991636985.UG.FTS.B,
28.98%,
1/27/25
..
174
179
991637847.UG.FTS.B,
28.98%,
1/27/25
..
141
145
991638724.UG.FTS.B,
28.98%,
1/27/25
..
40
40
991638938.UG.FTS.B,
28.98%,
1/27/25
..
36
37
991639732.UG.FTS.B,
28.98%,
1/27/25
..
71
73
991641059.UG.FTS.B,
28.98%,
1/27/25
..
31
31
991641153.UG.FTS.B,
28.98%,
1/27/25
..
216
217
991643120.UG.FTS.B,
28.98%,
1/27/25
..
544
554
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
145
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991643121.UG.FTS.B,
28.98%,
1/27/25
..
$
375
$
381
991643233.UG.FTS.B,
28.98%,
1/27/25
..
57
59
991643359.UG.FTS.B,
28.98%,
1/27/25
..
309
318
991644066.UG.FTS.B,
28.98%,
1/27/25
..
208
212
991644433.UG.FTS.B,
28.98%,
1/27/25
..
24
25
991645234.UG.FTS.B,
28.98%,
1/27/25
..
124
128
991645498.UG.FTS.B,
28.98%,
1/27/25
..
340
347
991645642.UG.FTS.B,
28.98%,
1/27/25
..
131
135
991646436.UG.FTS.B,
28.98%,
1/27/25
..
386
397
991646530.UG.FTS.B,
28.98%,
1/27/25
..
856
866
991647805.UG.FTS.B,
28.98%,
1/27/25
..
88
91
991649491.UG.FTS.B,
28.98%,
1/27/25
..
249
258
991651573.UG.FTS.B,
28.98%,
1/27/25
..
12
12
991651616.UG.FTS.B,
28.98%,
1/27/25
..
104
107
991652055.UG.FTS.B,
28.98%,
1/27/25
..
59
60
991653209.UG.FTS.B,
28.98%,
1/27/25
..
3,051
3,137
991653220.UG.FTS.B,
28.98%,
1/27/25
..
272
273
991654533.UG.FTS.B,
28.98%,
1/27/25
..
266
273
991654856.UG.FTS.B,
28.98%,
1/27/25
..
621
638
991655594.UG.FTS.B,
28.98%,
1/27/25
..
243
250
991656010.UG.FTS.B,
28.98%,
1/27/25
..
141
140
991657182.UG.FTS.B,
28.98%,
1/27/25
..
1,910
1,964
991657611.UG.FTS.B,
28.98%,
1/27/25
..
2,919
2,954
991658220.UG.FTS.B,
28.98%,
1/27/25
..
997
1,026
991659123.UG.FTS.B,
28.98%,
1/27/25
..
128
131
991659335.UG.FTS.B,
28.98%,
1/27/25
..
421
434
991660335.UG.FTS.B,
28.98%,
1/27/25
..
247
251
991660768.UG.FTS.B,
28.98%,
1/27/25
..
192
196
991663420.UG.FTS.B,
28.98%,
1/27/25
..
2,170
2,233
991664621.UG.FTS.B,
28.98%,
1/27/25
..
210
216
991664680.UG.FTS.B,
28.98%,
1/27/25
..
476
490
991666634.UG.FTS.B,
28.98%,
1/27/25
..
166
171
991670133.UG.FTS.B,
28.98%,
1/27/25
..
232
239
991671149.UG.FTS.B,
28.98%,
1/27/25
..
121
124
991672421.UG.FTS.B,
28.98%,
1/27/25
..
382
388
991672456.UG.FTS.B,
28.98%,
1/27/25
..
226
230
991672656.UG.FTS.B,
28.98%,
1/27/25
..
138
142
991673173.UG.FTS.B,
28.98%,
1/27/25
..
67
(1)
991679811.UG.FTS.B,
28.98%,
1/27/25
..
114
117
991681733.UG.FTS.B,
28.98%,
1/27/25
..
250
257
991681913.UG.FTS.B,
28.98%,
1/27/25
..
125
128
991683425.UG.FTS.B,
28.98%,
1/27/25
..
600
45
991684060.UG.FTS.B,
28.98%,
1/27/25
..
1,379
1,385
991684799.UG.FTS.B,
28.98%,
1/27/25
..
179
184
991684873.UG.FTS.B,
28.98%,
1/27/25
..
112
115
991686238.UG.FTS.B,
28.98%,
1/27/25
..
58
60
991687201.UG.FTS.B,
28.98%,
1/27/25
..
268
276
991687469.UG.FTS.B,
28.98%,
1/27/25
..
590
601
991687681.UG.FTS.B,
28.98%,
1/27/25
..
152
153
991687939.UG.FTS.B,
28.98%,
1/27/25
..
33
34
991688205.UG.FTS.B,
28.98%,
1/27/25
..
41
41
991688929.UG.FTS.B,
28.98%,
1/27/25
..
49
48
991689096.UG.FTS.B,
28.98%,
1/27/25
..
307
312
991691453.UG.FTS.B,
28.98%,
1/27/25
..
641
650
991693260.UG.FTS.B,
28.98%,
1/27/25
..
255
256
991693305.UG.FTS.B,
28.98%,
1/27/25
..
1,339
1,363
991693530.UG.FTS.B,
28.98%,
1/27/25
..
181
187
991697703.UG.FTS.B,
28.98%,
1/27/25
..
50
51
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991698813.UG.FTS.B,
28.98%,
1/27/25
..
$
1,230
$
1,263
991699112.UG.FTS.B,
28.98%,
1/27/25
..
141
144
991699849.UG.FTS.B,
28.98%,
1/27/25
..
58
59
991699852.UG.FTS.B,
28.98%,
1/27/25
..
314
323
991700924.UG.FTS.B,
28.98%,
1/27/25
..
145
148
991703924.UG.FTS.B,
28.98%,
1/27/25
..
51
52
991707195.UG.FTS.B,
28.98%,
1/27/25
..
90
90
991711538.UG.FTS.B,
28.98%,
1/27/25
..
70
72
991714759.UG.FTS.B,
28.98%,
1/27/25
..
161
166
991716555.UG.FTS.B,
28.98%,
1/27/25
..
85
87
991719023.UG.FTS.B,
28.98%,
1/27/25
..
474
488
991721854.UG.FTS.B,
28.98%,
1/27/25
..
464
470
991722576.UG.FTS.B,
28.98%,
1/27/25
..
91
93
991722842.UG.FTS.B,
28.98%,
1/27/25
..
1,052
1,071
991725390.UG.FTS.B,
28.98%,
1/27/25
..
127
129
991728459.UG.FTS.B,
28.98%,
1/27/25
..
155
156
991730761.UG.FTS.B,
28.98%,
1/27/25
..
164
168
991731180.UG.FTS.B,
28.98%,
1/27/25
..
284
292
991731267.UG.FTS.B,
28.98%,
1/27/25
..
148
151
991732352.UG.FTS.B,
28.98%,
1/27/25
..
74
75
991732403.UG.FTS.B,
28.98%,
1/27/25
..
44
44
991732810.UG.FTS.B,
28.98%,
1/27/25
..
100
102
991733258.UG.FTS.B,
28.98%,
1/27/25
..
11
12
991733750.UG.FTS.B,
28.98%,
1/27/25
..
37
37
991737000.UG.FTS.B,
28.98%,
1/27/25
..
1,895
1,948
991740609.UG.FTS.B,
28.98%,
1/27/25
..
474
476
991741365.UG.FTS.B,
28.98%,
1/27/25
..
25
25
991741558.UG.FTS.B,
28.98%,
1/27/25
..
130
131
991746915.UG.FTS.B,
28.98%,
1/27/25
..
426
433
991747891.UG.FTS.B,
28.98%,
1/27/25
..
158
163
991749644.UG.FTS.B,
28.98%,
1/27/25
..
142
141
991751444.UG.FTS.B,
28.98%,
1/27/25
..
61
62
991753884.UG.FTS.B,
28.98%,
1/27/25
..
57
57
991756720.UG.FTS.B,
28.98%,
1/27/25
..
90
93
991757043.UG.FTS.B,
28.98%,
1/27/25
..
400
403
991761383.UG.FTS.B,
28.98%,
1/27/25
..
28
28
991761556.UG.FTS.B,
28.98%,
1/27/25
..
94
96
991765825.UG.FTS.B,
28.98%,
1/27/25
..
85
86
991770756.UG.FTS.B,
28.98%,
1/27/25
..
497
506
991771149.UG.FTS.B,
28.98%,
1/27/25
..
49
49
991772210.UG.FTS.B,
28.98%,
1/27/25
..
3,778
3,846
991772279.UG.FTS.B,
28.98%,
1/27/25
..
945
961
991772315.UG.FTS.B,
28.98%,
1/27/25
..
962
978
991776277.UG.FTS.B,
28.98%,
1/27/25
..
51
52
991784184.UG.FTS.B,
28.98%,
1/27/25
..
400
54
991784652.UG.FTS.B,
28.98%,
1/27/25
..
15
15
991785235.UG.FTS.B,
28.98%,
1/27/25
..
451
459
991790040.UG.FTS.B,
28.98%,
1/27/25
..
141
144
991792181.UG.FTS.B,
28.98%,
1/27/25
..
2,358
2,400
991792500.UG.FTS.B,
28.98%,
1/27/25
..
236
240
991793603.UG.FTS.B,
28.98%,
1/27/25
..
6
6
991794021.UG.FTS.B,
28.98%,
1/27/25
..
7
7
991794675.UG.FTS.B,
28.98%,
1/27/25
..
35
35
991796141.UG.FTS.B,
28.98%,
1/27/25
..
92
94
991797980.UG.FTS.B,
28.98%,
1/27/25
..
50
51
991798281.UG.FTS.B,
28.98%,
1/27/25
..
72
73
991801251.UG.FTS.B,
28.98%,
1/27/25
..
272
274
991802009.UG.FTS.B,
28.98%,
1/27/25
..
339
345
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
146
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991811211.UG.FTS.B,
28.98%,
1/27/25
..
$
271
$
276
991812993.UG.FTS.B,
28.98%,
1/27/25
..
941
939
991814953.UG.FTS.B,
28.98%,
1/27/25
..
101
101
991817326.UG.FTS.B,
28.98%,
1/27/25
..
7
7
991820015.UG.FTS.B,
28.98%,
1/27/25
..
437
445
991822961.UG.FTS.B,
28.98%,
1/27/25
..
357
359
991827748.UG.FTS.B,
28.98%,
1/27/25
..
12
12
991831848.UG.FTS.B,
28.98%,
1/27/25
..
72
74
991832201.UG.FTS.B,
28.98%,
1/27/25
..
2,512
2,523
991832387.UG.FTS.B,
28.98%,
1/27/25
..
939
956
991835142.UG.FTS.B,
28.98%,
1/27/25
..
6,538
6,652
991662323.UG.FTS.B,
29.47%,
1/27/25
..
75
77
991729880.UG.FTS.B,
29.47%,
1/27/25
..
1
1
991593828.UG.FTS.B,
29.49%,
1/27/25
..
336
340
991594192.UG.FTS.B,
29.49%,
1/27/25
..
345
354
991594200.UG.FTS.B,
29.49%,
1/27/25
..
176
181
991594626.UG.FTS.B,
29.49%,
1/27/25
..
100
101
991594887.UG.FTS.B,
29.49%,
1/27/25
..
103
102
991594952.UG.FTS.B,
29.49%,
1/27/25
..
1,338
1,375
991595231.UG.FTS.B,
29.49%,
1/27/25
..
186
186
991596178.UG.FTS.B,
29.49%,
1/27/25
..
1,210
1,220
991596209.UG.FTS.B,
29.49%,
1/27/25
..
1,265
1,297
991596228.UG.FTS.B,
29.49%,
1/27/25
..
238
245
991596267.UG.FTS.B,
29.49%,
1/27/25
..
67
68
991596346.UG.FTS.B,
29.49%,
1/27/25
..
70
71
991596886.UG.FTS.B,
29.49%,
1/27/25
..
211
213
991596983.UG.FTS.B,
29.49%,
1/27/25
..
138
141
991597322.UG.FTS.B,
29.49%,
1/27/25
..
122
121
991597330.UG.FTS.B,
29.49%,
1/27/25
..
214
217
991597441.UG.FTS.B,
29.49%,
1/27/25
..
458
472
991597657.UG.FTS.B,
29.49%,
1/27/25
..
162
164
991598580.UG.FTS.B,
29.49%,
1/27/25
..
156
160
991598640.UG.FTS.B,
29.49%,
1/27/25
..
77
79
991598870.UG.FTS.B,
29.49%,
1/27/25
..
54
55
991598931.UG.FTS.B,
29.49%,
1/27/25
..
223
229
991599464.UG.FTS.B,
29.49%,
1/27/25
..
300
42
991600051.UG.FTS.B,
29.49%,
1/27/25
..
139
19
991600353.UG.FTS.B,
29.49%,
1/27/25
..
281
280
991600440.UG.FTS.B,
29.49%,
1/27/25
..
576
593
991600674.UG.FTS.B,
29.49%,
1/27/25
..
114
117
991600794.UG.FTS.B,
29.49%,
1/27/25
..
117
121
991601393.UG.FTS.B,
29.49%,
1/27/25
..
2,470
2,521
991601553.UG.FTS.B,
29.49%,
1/27/25
..
1,380
1,398
991601649.UG.FTS.B,
29.49%,
1/27/25
..
482
320
991602741.UG.FTS.B,
29.49%,
1/27/25
..
447
453
991602782.UG.FTS.B,
29.49%,
1/27/25
..
90
93
991602892.UG.FTS.B,
29.49%,
1/27/25
..
91
93
991603201.UG.FTS.B,
29.49%,
1/27/25
..
9
9
991603339.UG.FTS.B,
29.49%,
1/27/25
..
158
163
991603347.UG.FTS.B,
29.49%,
1/27/25
..
104
3
991603573.UG.FTS.B,
29.49%,
1/27/25
..
864
891
991604512.UG.FTS.B,
29.49%,
1/27/25
..
160
164
991604744.UG.FTS.B,
29.49%,
1/27/25
..
89
91
991604802.UG.FTS.B,
29.49%,
1/27/25
..
98
100
991605074.UG.FTS.B,
29.49%,
1/27/25
..
316
313
991605178.UG.FTS.B,
29.49%,
1/27/25
..
362
371
991605218.UG.FTS.B,
29.49%,
1/27/25
..
56
58
991605251.UG.FTS.B,
29.49%,
1/27/25
..
75
76
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991605906.UG.FTS.B,
29.49%,
1/27/25
..
$
347
$
353
991605991.UG.FTS.B,
29.49%,
1/27/25
..
176
24
991606053.UG.FTS.B,
29.49%,
1/27/25
..
32
33
991606270.UG.FTS.B,
29.49%,
1/27/25
..
844
868
991606464.UG.FTS.B,
29.49%,
1/27/25
..
30
31
991606487.UG.FTS.B,
29.49%,
1/27/25
..
496
510
991606996.UG.FTS.B,
29.49%,
1/27/25
..
86
88
991607077.UG.FTS.B,
29.49%,
1/27/25
..
1,160
1,192
991607258.UG.FTS.B,
29.49%,
1/27/25
..
437
449
991607358.UG.FTS.B,
29.49%,
1/27/25
..
52
(1)
991607365.UG.FTS.B,
29.49%,
1/27/25
..
687
697
991608429.UG.FTS.B,
29.49%,
1/27/25
..
234
240
991608526.UG.FTS.B,
29.49%,
1/27/25
..
380
391
991608738.UG.FTS.B,
29.49%,
1/27/25
..
103
(2)
991608840.UG.FTS.B,
29.49%,
1/27/25
..
65
(1)
991609046.UG.FTS.B,
29.49%,
1/27/25
..
286
294
991609085.UG.FTS.B,
29.49%,
1/27/25
..
97
99
991609299.UG.FTS.B,
29.49%,
1/27/25
..
1,968
2,024
991609655.UG.FTS.B,
29.49%,
1/27/25
..
296
304
991611049.UG.FTS.B,
29.49%,
1/27/25
..
291
299
991611862.UG.FTS.B,
29.49%,
1/27/25
..
189
195
991612657.UG.FTS.B,
29.49%,
1/27/25
..
355
365
991612716.UG.FTS.B,
29.49%,
1/27/25
..
320
329
991613226.UG.FTS.B,
29.49%,
1/27/25
..
316
319
991613342.UG.FTS.B,
29.49%,
1/27/25
..
217
223
991613792.UG.FTS.B,
29.49%,
1/27/25
..
36
36
991613806.UG.FTS.B,
29.49%,
1/27/25
..
4,289
4,354
991613940.UG.FTS.B,
29.49%,
1/27/25
..
109
112
991614453.UG.FTS.B,
29.49%,
1/27/25
..
578
577
991614526.UG.FTS.B,
29.49%,
1/27/25
..
16
16
991614668.UG.FTS.B,
29.49%,
1/27/25
..
109
112
991614695.UG.FTS.B,
29.49%,
1/27/25
..
72
73
991614714.UG.FTS.B,
29.49%,
1/27/25
..
78
79
991615077.UG.FTS.B,
29.49%,
1/27/25
..
68
69
991615133.UG.FTS.B,
29.49%,
1/27/25
..
74
76
991615454.UG.FTS.B,
29.49%,
1/27/25
..
300
309
991615614.UG.FTS.B,
29.49%,
1/27/25
..
49
50
991616666.UG.FTS.B,
29.49%,
1/27/25
..
154
156
991616915.UG.FTS.B,
29.49%,
1/27/25
..
266
271
991617030.UG.FTS.B,
29.49%,
1/27/25
..
112
115
991617119.UG.FTS.B,
29.49%,
1/27/25
..
993
1,021
991617295.UG.FTS.B,
29.49%,
1/27/25
..
1,055
1,085
991618276.UG.FTS.B,
29.49%,
1/27/25
..
883
892
991618551.UG.FTS.B,
29.49%,
1/27/25
..
77
77
991619030.UG.FTS.B,
29.49%,
1/27/25
..
198
201
991619817.UG.FTS.B,
29.49%,
1/27/25
..
735
755
991620641.UG.FTS.B,
29.49%,
1/27/25
..
186
191
991621900.UG.FTS.B,
29.49%,
1/27/25
..
318
327
991622015.UG.FTS.B,
29.49%,
1/27/25
..
20
20
991623857.UG.FTS.B,
29.49%,
1/27/25
..
36
32
991623872.UG.FTS.B,
29.49%,
1/27/25
..
461
459
991623935.UG.FTS.B,
29.49%,
1/27/25
..
260
268
991624480.UG.FTS.B,
29.49%,
1/27/25
..
171
(3)
991624512.UG.FTS.B,
29.49%,
1/27/25
..
170
175
991624910.UG.FTS.B,
29.49%,
1/27/25
..
112
115
991625464.UG.FTS.B,
29.49%,
1/27/25
..
16
16
991626357.UG.FTS.B,
29.49%,
1/27/25
..
66
68
991626406.UG.FTS.B,
29.49%,
1/27/25
..
150
(3)
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
147
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991626868.UG.FTS.B,
29.49%,
1/27/25
..
$
192
$
197
991627500.UG.FTS.B,
29.49%,
1/27/25
..
128
132
991627621.UG.FTS.B,
29.49%,
1/27/25
..
134
138
991627673.UG.FTS.B,
29.49%,
1/27/25
..
41
(1)
991627921.UG.FTS.B,
29.49%,
1/27/25
..
10
10
991628233.UG.FTS.B,
29.49%,
1/27/25
..
81
83
991628410.UG.FTS.B,
29.49%,
1/27/25
..
14
14
991628707.UG.FTS.B,
29.49%,
1/27/25
..
976
1,004
991629351.UG.FTS.B,
29.49%,
1/27/25
..
43
44
991629829.UG.FTS.B,
29.49%,
1/27/25
..
87
89
991630212.UG.FTS.B,
29.49%,
1/27/25
..
815
838
991630575.UG.FTS.B,
29.49%,
1/27/25
..
266
274
991630944.UG.FTS.B,
29.49%,
1/27/25
..
103
105
991631037.UG.FTS.B,
29.49%,
1/27/25
..
159
164
991631866.UG.FTS.B,
29.49%,
1/27/25
..
76
78
991633038.UG.FTS.B,
29.49%,
1/27/25
..
1,225
1,243
991633389.UG.FTS.B,
29.49%,
1/27/25
..
318
327
991633620.UG.FTS.B,
29.49%,
1/27/25
..
2,090
2,147
991633884.UG.FTS.B,
29.49%,
1/27/25
..
696
690
991635104.UG.FTS.B,
29.49%,
1/27/25
..
170
172
991636506.UG.FTS.B,
29.49%,
1/27/25
..
1,359
1,394
991636871.UG.FTS.B,
29.49%,
1/27/25
..
1,236
1,276
991637021.UG.FTS.B,
29.49%,
1/27/25
..
960
965
991637168.UG.FTS.B,
29.49%,
1/27/25
..
159
163
991637194.UG.FTS.B,
29.49%,
1/27/25
..
36
36
991637328.UG.FTS.B,
29.49%,
1/27/25
..
222
228
991639078.UG.FTS.B,
29.49%,
1/27/25
..
127
131
991639086.UG.FTS.B,
29.49%,
1/27/25
..
81
12
991639949.UG.FTS.B,
29.49%,
1/27/25
..
28
28
991640401.UG.FTS.B,
29.49%,
1/27/25
..
2,857
2,932
991641302.UG.FTS.B,
29.49%,
1/27/25
..
165
169
991643172.UG.FTS.B,
29.49%,
1/27/25
..
19
19
991643691.UG.FTS.B,
29.49%,
1/27/25
..
263
266
991643756.UG.FTS.B,
29.49%,
1/27/25
..
43
44
991643995.UG.FTS.B,
29.49%,
1/27/25
..
443
454
991645667.UG.FTS.B,
29.49%,
1/27/25
..
170
174
991645721.UG.FTS.B,
29.49%,
1/27/25
..
78
80
991645861.UG.FTS.B,
29.49%,
1/27/25
..
458
465
991646515.UG.FTS.B,
29.49%,
1/27/25
..
40
41
991647854.UG.FTS.B,
29.49%,
1/27/25
..
148
152
991648038.UG.FTS.B,
29.49%,
1/27/25
..
85
85
991648775.UG.FTS.B,
29.49%,
1/27/25
..
2,792
2,869
991648967.UG.FTS.B,
29.49%,
1/27/25
..
144
148
991649572.UG.FTS.B,
29.49%,
1/27/25
..
106
107
991649770.UG.FTS.B,
29.49%,
1/27/25
..
8
8
991650190.UG.FTS.B,
29.49%,
1/27/25
..
306
314
991650614.UG.FTS.B,
29.49%,
1/27/25
..
95
13
991651629.UG.FTS.B,
29.49%,
1/27/25
..
129
133
991652619.UG.FTS.B,
29.49%,
1/27/25
..
126
81
991653136.UG.FTS.B,
29.49%,
1/27/25
..
48
40
991653371.UG.FTS.B,
29.49%,
1/27/25
..
297
304
991654240.UG.FTS.B,
29.49%,
1/27/25
..
93
95
991654331.UG.FTS.B,
29.49%,
1/27/25
..
373
383
991657968.UG.FTS.B,
29.49%,
1/27/25
..
2,390
2,422
991658758.UG.FTS.B,
29.49%,
1/27/25
..
105
108
991659287.UG.FTS.B,
29.49%,
1/27/25
..
251
258
991659586.UG.FTS.B,
29.49%,
1/27/25
..
50
51
991660024.UG.FTS.B,
29.49%,
1/27/25
..
84
86
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991660396.UG.FTS.B,
29.49%,
1/27/25
..
$
21
$
21
991660953.UG.FTS.B,
29.49%,
1/27/25
..
136
138
991663020.UG.FTS.B,
29.49%,
1/27/25
..
95
97
991663633.UG.FTS.B,
29.49%,
1/27/25
..
26
0
991664709.UG.FTS.B,
29.49%,
1/27/25
..
180
13
991665944.UG.FTS.B,
29.49%,
1/27/25
..
2,335
2,397
991667009.UG.FTS.B,
29.49%,
1/27/25
..
64
10
991667522.UG.FTS.B,
29.49%,
1/27/25
..
38
38
991668002.UG.FTS.B,
29.49%,
1/27/25
..
208
213
991668359.UG.FTS.B,
29.49%,
1/27/25
..
787
802
991668952.UG.FTS.B,
29.49%,
1/27/25
..
159
105
991669942.UG.FTS.B,
29.49%,
1/27/25
..
81
82
991670220.UG.FTS.B,
29.49%,
1/27/25
..
80
82
991670777.UG.FTS.B,
29.49%,
1/27/25
..
57
58
991670891.UG.FTS.B,
29.49%,
1/27/25
..
76
77
991672322.UG.FTS.B,
29.49%,
1/27/25
..
309
317
991675189.UG.FTS.B,
29.49%,
1/27/25
..
85
87
991678623.UG.FTS.B,
29.49%,
1/27/25
..
99
102
991680945.UG.FTS.B,
29.49%,
1/27/25
..
398
403
991682834.UG.FTS.B,
29.49%,
1/27/25
..
286
294
991683132.UG.FTS.B,
29.49%,
1/27/25
..
1,239
1,272
991683393.UG.FTS.B,
29.49%,
1/27/25
..
950
976
991684868.UG.FTS.B,
29.49%,
1/27/25
..
9
9
991687025.UG.FTS.B,
29.49%,
1/27/25
..
40
41
991687934.UG.FTS.B,
29.49%,
1/27/25
..
36
37
991688414.UG.FTS.B,
29.49%,
1/27/25
..
48
49
991688605.UG.FTS.B,
29.49%,
1/27/25
..
170
172
991689707.UG.FTS.B,
29.49%,
1/27/25
..
81
82
991689965.UG.FTS.B,
29.49%,
1/27/25
..
244
251
991690240.UG.FTS.B,
29.49%,
1/27/25
..
55
56
991691306.UG.FTS.B,
29.49%,
1/27/25
..
237
244
991691664.UG.FTS.B,
29.49%,
1/27/25
..
1,429
1,468
991692091.UG.FTS.B,
29.49%,
1/27/25
..
214
215
991692639.UG.FTS.B,
29.49%,
1/27/25
..
43
43
991693933.UG.FTS.B,
29.49%,
1/27/25
..
149
20
991694353.UG.FTS.B,
29.49%,
1/27/25
..
9
9
991694746.UG.FTS.B,
29.49%,
1/27/25
..
76
77
991695052.UG.FTS.B,
29.49%,
1/27/25
..
96
98
991695250.UG.FTS.B,
29.49%,
1/27/25
..
9
9
991695728.UG.FTS.B,
29.49%,
1/27/25
..
685
704
991696481.UG.FTS.B,
29.49%,
1/27/25
..
594
610
991696634.UG.FTS.B,
29.49%,
1/27/25
..
53
4
991696793.UG.FTS.B,
29.49%,
1/27/25
..
474
480
991698282.UG.FTS.B,
29.49%,
1/27/25
..
77
79
991698507.UG.FTS.B,
29.49%,
1/27/25
..
132
133
991699161.UG.FTS.B,
29.49%,
1/27/25
..
541
554
991701480.UG.FTS.B,
29.49%,
1/27/25
..
684
703
991702188.UG.FTS.B,
29.49%,
1/27/25
..
156
160
991703342.UG.FTS.B,
29.49%,
1/27/25
..
194
199
991703436.UG.FTS.B,
29.49%,
1/27/25
..
29
29
991703607.UG.FTS.B,
29.49%,
1/27/25
..
1,896
1,968
991704620.UG.FTS.B,
29.49%,
1/27/25
..
13
13
991705606.UG.FTS.B,
29.49%,
1/27/25
..
122
125
991705617.UG.FTS.B,
29.49%,
1/27/25
..
366
367
991705770.UG.FTS.B,
29.49%,
1/27/25
..
20
20
991709075.UG.FTS.B,
29.49%,
1/27/25
..
416
420
991709652.UG.FTS.B,
29.49%,
1/27/25
..
242
247
991710104.UG.FTS.B,
29.49%,
1/27/25
..
85
87
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
148
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991710576.UG.FTS.B,
29.49%,
1/27/25
..
$
244
$
245
991712464.UG.FTS.B,
29.49%,
1/27/25
..
438
450
991712616.UG.FTS.B,
29.49%,
1/27/25
..
1,153
1,184
991715908.UG.FTS.B,
29.49%,
1/27/25
..
535
550
991716296.UG.FTS.B,
29.49%,
1/27/25
..
524
530
991717015.UG.FTS.B,
29.49%,
1/27/25
..
142
146
991717864.UG.FTS.B,
29.49%,
1/27/25
..
285
292
991717964.UG.FTS.B,
29.49%,
1/27/25
..
111
112
991718575.UG.FTS.B,
29.49%,
1/27/25
..
171
176
991718785.UG.FTS.B,
29.49%,
1/27/25
..
285
292
991720299.UG.FTS.B,
29.49%,
1/27/25
..
854
877
991722603.UG.FTS.B,
29.49%,
1/27/25
..
308
317
991726868.UG.FTS.B,
29.49%,
1/27/25
..
843
860
991727056.UG.FTS.B,
29.49%,
1/27/25
..
1,164
1,176
991728566.UG.FTS.B,
29.49%,
1/27/25
..
243
249
991728654.UG.FTS.B,
29.49%,
1/27/25
..
104
14
991729561.UG.FTS.B,
29.49%,
1/27/25
..
274
277
991729760.UG.FTS.B,
29.49%,
1/27/25
..
42
43
991730240.UG.FTS.B,
29.49%,
1/27/25
..
314
322
991731570.UG.FTS.B,
29.49%,
1/27/25
..
98
98
991731887.UG.FTS.B,
29.49%,
1/27/25
..
33
34
991732661.UG.FTS.B,
29.49%,
1/27/25
..
114
117
991737584.UG.FTS.B,
29.49%,
1/27/25
..
120
123
991739361.UG.FTS.B,
29.49%,
1/27/25
..
85
87
991740591.UG.FTS.B,
29.49%,
1/27/25
..
947
971
991742966.UG.FTS.B,
29.49%,
1/27/25
..
696
694
991743785.UG.FTS.B,
29.49%,
1/27/25
..
152
156
991747094.UG.FTS.B,
29.49%,
1/27/25
..
46
47
991747252.UG.FTS.B,
29.49%,
1/27/25
..
286
39
991747625.UG.FTS.B,
29.49%,
1/27/25
..
21
21
991747954.UG.FTS.B,
29.49%,
1/27/25
..
12
12
991749269.UG.FTS.B,
29.49%,
1/27/25
..
362
370
991749414.UG.FTS.B,
29.49%,
1/27/25
..
170
175
991749510.UG.FTS.B,
29.49%,
1/27/25
..
281
284
991750553.UG.FTS.B,
29.49%,
1/27/25
..
252
255
991752239.UG.FTS.B,
29.49%,
1/27/25
..
453
465
991752832.UG.FTS.B,
29.49%,
1/27/25
..
345
343
991753656.UG.FTS.B,
29.49%,
1/27/25
..
57
58
991754719.UG.FTS.B,
29.49%,
1/27/25
..
232
238
991754815.UG.FTS.B,
29.49%,
1/27/25
..
96
98
991756435.UG.FTS.B,
29.49%,
1/27/25
..
500
513
991757095.UG.FTS.B,
29.49%,
1/27/25
..
293
304
991759684.UG.FTS.B,
29.49%,
1/27/25
..
1,397
1,420
991761682.UG.FTS.B,
29.49%,
1/27/25
..
10
10
991765894.UG.FTS.B,
29.49%,
1/27/25
..
90
92
991766642.UG.FTS.B,
29.49%,
1/27/25
..
121
16
991767303.UG.FTS.B,
29.49%,
1/27/25
..
8
8
991770465.UG.FTS.B,
29.49%,
1/27/25
..
119
122
991774020.UG.FTS.B,
29.49%,
1/27/25
..
472
480
991775557.UG.FTS.B,
29.49%,
1/27/25
..
590
592
991777410.UG.FTS.B,
29.49%,
1/27/25
..
71
72
991779873.UG.FTS.B,
29.49%,
1/27/25
..
13
13
991780499.UG.FTS.B,
29.49%,
1/27/25
..
464
472
991780894.UG.FTS.B,
29.49%,
1/27/25
..
22
22
991781410.UG.FTS.B,
29.49%,
1/27/25
..
117
119
991782255.UG.FTS.B,
29.49%,
1/27/25
..
58
59
991783368.UG.FTS.B,
29.49%,
1/27/25
..
47
48
991783887.UG.FTS.B,
29.49%,
1/27/25
..
184
184
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991784000.UG.FTS.B,
29.49%,
1/27/25
..
$
217
$
221
991784692.UG.FTS.B,
29.49%,
1/27/25
..
13
13
991787997.UG.FTS.B,
29.49%,
1/27/25
..
9
9
991788344.UG.FTS.B,
29.49%,
1/27/25
..
88
90
991789542.UG.FTS.B,
29.49%,
1/27/25
..
82
84
991789576.UG.FTS.B,
29.49%,
1/27/25
..
96
98
991792084.UG.FTS.B,
29.49%,
1/27/25
..
306
307
991792296.UG.FTS.B,
29.49%,
1/27/25
..
942
958
991792533.UG.FTS.B,
29.49%,
1/27/25
..
900
896
991793044.UG.FTS.B,
29.49%,
1/27/25
..
787
798
991793218.UG.FTS.B,
29.49%,
1/27/25
..
472
473
991793228.UG.FTS.B,
29.49%,
1/27/25
..
142
143
991793271.UG.FTS.B,
29.49%,
1/27/25
..
283
288
991793324.UG.FTS.B,
29.49%,
1/27/25
..
184
185
991793360.UG.FTS.B,
29.49%,
1/27/25
..
471
476
991793422.UG.FTS.B,
29.49%,
1/27/25
..
179
181
991794872.UG.FTS.B,
29.49%,
1/27/25
..
–
–
991798454.UG.FTS.B,
29.49%,
1/27/25
..
65
65
991800672.UG.FTS.B,
29.49%,
1/27/25
..
135
138
991802443.UG.FTS.B,
29.49%,
1/27/25
..
377
381
991803603.UG.FTS.B,
29.49%,
1/27/25
..
1,199
1,211
991804585.UG.FTS.B,
29.49%,
1/27/25
..
77
78
991807085.UG.FTS.B,
29.49%,
1/27/25
..
73
74
991810829.UG.FTS.B,
29.49%,
1/27/25
..
92
94
991812381.UG.FTS.B,
29.49%,
1/27/25
..
161
163
991814263.UG.FTS.B,
29.49%,
1/27/25
..
55
56
991814678.UG.FTS.B,
29.49%,
1/27/25
..
131
132
991822092.UG.FTS.B,
29.49%,
1/27/25
..
127
128
991828515.UG.FTS.B,
29.49%,
1/27/25
..
31
32
991828600.UG.FTS.B,
29.49%,
1/27/25
..
111
113
991829288.UG.FTS.B,
29.49%,
1/27/25
..
–
–
991832224.UG.FTS.B,
29.49%,
1/27/25
..
83
85
991833226.UG.FTS.B,
29.49%,
1/27/25
..
2,819
2,866
991836282.UG.FTS.B,
29.49%,
1/27/25
..
4,765
4,776
991689747.UG.FTS.B,
14%,
1/28/25
.....
513
524
991603212.UG.FTS.B,
14.98%,
1/28/25
..
262
270
991604056.UG.FTS.B,
14.98%,
1/28/25
..
240
241
991603028.UG.FTS.B,
15%,
1/28/25
.....
492
497
991633143.UG.FTS.B,
15%,
1/28/25
.....
47
48
991791316.UG.FTS.B,
15%,
1/28/25
.....
2,469
2,525
991606397.UG.FTS.B,
15.97%,
1/28/25
..
588
605
991606845.UG.FTS.B,
15.97%,
1/28/25
..
184
189
991619717.UG.FTS.B,
15.97%,
1/28/25
..
368
379
991709724.UG.FTS.B,
15.97%,
1/28/25
..
46
47
991791151.UG.FTS.B,
15.97%,
1/28/25
..
670
674
991800530.UG.FTS.B,
15.97%,
1/28/25
..
715
732
991838313.UG.FTS.B,
15.97%,
1/28/25
..
1,713
1,754
991610101.UG.FTS.B,
16.99%,
1/28/25
..
2,000
1,242
991617374.UG.FTS.B,
16.99%,
1/28/25
..
3,300
3,396
991638172.UG.FTS.B,
16.99%,
1/28/25
..
236
243
991748718.UG.FTS.B,
16.99%,
1/28/25
..
1,870
1,925
991766525.UG.FTS.B,
16.99%,
1/28/25
..
141
144
991799999.UG.FTS.B,
16.99%,
1/28/25
..
120
124
991854471.UG.FTS.B,
16.99%,
1/28/25
..
7,892
8,076
991603631.UG.FTS.B,
17.99%,
1/28/25
..
596
619
991613370.UG.FTS.B,
17.99%,
1/28/25
..
332
342
991621866.UG.FTS.B,
17.99%,
1/28/25
..
161
165
991661885.UG.FTS.B,
17.99%,
1/28/25
..
38
39
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
149
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991716911.UG.FTS.B,
17.99%,
1/28/25
..
$
605
$
622
991720766.UG.FTS.B,
17.99%,
1/28/25
..
938
965
991727531.UG.FTS.B,
17.99%,
1/28/25
..
174
178
991809155.UG.FTS.B,
17.99%,
1/28/25
..
950
971
991843689.UG.FTS.B,
17.99%,
1/28/25
..
6,523
6,669
991613901.UG.FTS.B,
18.97%,
1/28/25
..
4,280
4,333
991701412.UG.FTS.B,
19.21%,
1/28/25
..
366
374
991605066.UG.FTS.B,
19.8%,
1/28/25
...
896
920
991692051.UG.FTS.B,
20.46%,
1/28/25
..
495
504
991653436.UG.FTS.B,
20.97%,
1/28/25
..
1,060
1,075
991622578.UG.FTS.B,
22.97%,
1/28/25
..
239
241
991614133.UG.FTS.B,
14.98%,
1/29/25
..
773
790
991621915.UG.FTS.B,
14.98%,
1/29/25
..
403
415
991627095.UG.FTS.B,
14.98%,
1/29/25
..
9,397
9,678
991647560.UG.FTS.B,
14.98%,
1/29/25
..
1,644
1,692
991671798.UG.FTS.B,
14.98%,
1/29/25
..
184
189
991813450.UG.FTS.B,
14.98%,
1/29/25
..
652
667
991864236.UG.FTS.B,
14.98%,
1/29/25
..
9,286
9,501
991669610.UG.FTS.B,
15.97%,
1/29/25
..
595
613
991716164.UG.FTS.B,
15.97%,
1/29/25
..
491
506
991717732.UG.FTS.B,
15.97%,
1/29/25
..
158
163
991733949.UG.FTS.B,
15.97%,
1/29/25
..
209
214
991740210.UG.FTS.B,
15.97%,
1/29/25
..
4,287
4,416
991811428.UG.FTS.B,
15.97%,
1/29/25
..
280
286
991670873.UG.FTS.B,
16.99%,
1/29/25
..
259
267
991748418.UG.FTS.B,
16.99%,
1/29/25
..
3,241
3,333
991632718.UG.FTS.B,
17.99%,
1/29/25
..
124
128
991669723.UG.FTS.B,
17.99%,
1/29/25
..
254
262
991688664.UG.FTS.B,
17.99%,
1/29/25
..
545
561
991842042.UG.FTS.B,
17.99%,
1/29/25
..
2,137
2,180
991619308.UG.FTS.B,
18.97%,
1/29/25
..
1,957
2,013
991654581.UG.FTS.B,
18.97%,
1/29/25
..
375
386
991667776.UG.FTS.B,
18.97%,
1/29/25
..
1,701
1,749
991623640.UG.FTS.B,
19.21%,
1/29/25
..
566
582
991628531.UG.FTS.B,
19.21%,
1/29/25
..
99
102
991667796.UG.FTS.B,
19.21%,
1/29/25
..
372
380
991612495.UG.FTS.B,
19.8%,
1/29/25
...
417
428
991629575.UG.FTS.B,
20.46%,
1/29/25
..
620
636
991630563.UG.FTS.B,
20.46%,
1/29/25
..
347
357
991682711.UG.FTS.B,
20.97%,
1/29/25
..
3,758
3,857
991614428.UG.FTS.B,
21.46%,
1/29/25
..
3,771
3,866
991612595.UG.FTS.B,
21.98%,
1/29/25
..
1,288
1,321
991613877.UG.FTS.B,
21.98%,
1/29/25
..
601
613
991631756.UG.FTS.B,
21.98%,
1/29/25
..
74
76
991693755.UG.FTS.B,
21.98%,
1/29/25
..
35
35
991666414.UG.FTS.B,
14.98%,
1/30/25
..
1,871
1,927
991681003.UG.FTS.B,
14.98%,
1/30/25
..
850
875
991748200.UG.FTS.B,
14.98%,
1/30/25
..
182
188
991633765.UG.FTS.B,
15%,
1/30/25
.....
1,312
1,351
991686296.UG.FTS.B,
15%,
1/30/25
.....
41
42
991703656.UG.FTS.B,
15.97%,
1/30/25
..
1,317
1,334
991743859.UG.FTS.B,
15.97%,
1/30/25
..
18
18
991747700.UG.FTS.B,
16.99%,
1/30/25
..
11
11
991871721.UG.FTS.B,
16.99%,
1/30/25
..
248
252
991624393.UG.FTS.B,
17.99%,
1/30/25
..
450
461
991633280.UG.FTS.B,
17.99%,
1/30/25
..
17
17
991654400.UG.FTS.B,
17.99%,
1/30/25
..
2,277
2,319
991673213.UG.FTS.B,
17.99%,
1/30/25
..
1,923
1,979
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991710060.UG.FTS.B,
17.99%,
1/30/25
..
$
221
$
228
991775041.UG.FTS.B,
17.99%,
1/30/25
..
1,585
1,630
991783304.UG.FTS.B,
17.99%,
1/30/25
..
936
963
991788920.UG.FTS.B,
17.99%,
1/30/25
..
373
384
991627597.UG.FTS.B,
18.97%,
1/30/25
..
398
405
991673375.UG.FTS.B,
18.97%,
1/30/25
..
189
194
991659016.UG.FTS.B,
19.21%,
1/30/25
..
204
208
991651806.UG.FTS.B,
19.8%,
1/30/25
...
202
207
991685892.UG.FTS.B,
20.46%,
1/30/25
..
307
315
991705436.UG.FTS.B,
20.46%,
1/30/25
..
342
354
991659919.UG.FTS.B,
20.97%,
1/30/25
..
151
155
991706022.UG.FTS.B,
20.97%,
1/30/25
..
148
152
991619303.UG.FTS.B,
21.46%,
1/30/25
..
182
187
991632156.UG.FTS.B,
21.46%,
1/30/25
..
106
108
991623550.UG.FTS.B,
21.98%,
1/30/25
..
1,007
1,014
991625186.UG.FTS.B,
21.98%,
1/30/25
..
859
867
991666898.UG.FTS.B,
21.98%,
1/30/25
..
86
88
991620571.UG.FTS.B,
22.97%,
1/30/25
..
634
637
991684639.UG.FTS.B,
14.97%,
1/31/25
..
306
316
991832705.UG.FTS.B,
14.97%,
1/31/25
..
286
294
991685973.UG.FTS.B,
14.98%,
1/31/25
..
1,506
1,541
991718191.UG.FTS.B,
14.98%,
1/31/25
..
480
496
991726744.UG.FTS.B,
14.98%,
1/31/25
..
348
358
991754932.UG.FTS.B,
14.98%,
1/31/25
..
171
174
991773840.UG.FTS.B,
14.98%,
1/31/25
..
955
983
991831913.UG.FTS.B,
14.98%,
1/31/25
..
105
108
991851449.UG.FTS.B,
14.98%,
1/31/25
..
90
93
991646701.UG.FTS.B,
15%,
1/31/25
.....
804
824
991659852.UG.FTS.B,
15%,
1/31/25
.....
1,277
1,304
991692599.UG.FTS.B,
15%,
1/31/25
.....
2,928
2,972
991805365.UG.FTS.B,
15%,
1/31/25
.....
554
563
991853717.UG.FTS.B,
15%,
1/31/25
.....
1,430
1,467
991863517.UG.FTS.B,
15%,
1/31/25
.....
1,146
1,158
991870576.UG.FTS.B,
15%,
1/31/25
.....
45
47
991638888.UG.FTS.B,
15.97%,
1/31/25
..
140
145
991643298.UG.FTS.B,
15.97%,
1/31/25
..
389
401
991649795.UG.FTS.B,
15.97%,
1/31/25
..
502
505
991653361.UG.FTS.B,
15.97%,
1/31/25
..
507
518
991666372.UG.FTS.B,
15.97%,
1/31/25
..
9,635
9,955
991746713.UG.FTS.B,
15.97%,
1/31/25
..
344
354
991754483.UG.FTS.B,
15.97%,
1/31/25
..
282
291
991755429.UG.FTS.B,
15.97%,
1/31/25
..
46
47
991757099.UG.FTS.B,
15.97%,
1/31/25
..
144
148
991809317.UG.FTS.B,
15.97%,
1/31/25
..
2,615
2,669
991815664.UG.FTS.B,
15.97%,
1/31/25
..
613
630
991852833.UG.FTS.B,
15.97%,
1/31/25
..
11
11
991711633.UG.FTS.B,
15.99%,
1/31/25
..
264
272
991740681.UG.FTS.B,
15.99%,
1/31/25
..
1,528
1,568
991638718.UG.FTS.B,
16.99%,
1/31/25
..
404
416
991642283.UG.FTS.B,
16.99%,
1/31/25
..
208
214
991662857.UG.FTS.B,
16.99%,
1/31/25
..
3,897
3,979
991664156.UG.FTS.B,
16.99%,
1/31/25
..
11
11
991704534.UG.FTS.B,
16.99%,
1/31/25
..
1,161
1,195
991753549.UG.FTS.B,
16.99%,
1/31/25
..
291
301
991757606.UG.FTS.B,
16.99%,
1/31/25
..
467
482
991762445.UG.FTS.B,
16.99%,
1/31/25
..
82
84
991784043.UG.FTS.B,
16.99%,
1/31/25
..
266
272
991805820.UG.FTS.B,
16.99%,
1/31/25
..
118
121
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
150
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991814268.UG.FTS.B,
16.99%,
1/31/25
..
$
42
$
43
991836242.UG.FTS.B,
16.99%,
1/31/25
..
4,773
4,885
991852492.UG.FTS.B,
16.99%,
1/31/25
..
191
196
991856848.UG.FTS.B,
16.99%,
1/31/25
..
204
209
991863029.UG.FTS.B,
16.99%,
1/31/25
..
23
23
991675482.UG.FTS.B,
17.97%,
1/31/25
..
575
593
991814971.UG.FTS.B,
17.97%,
1/31/25
..
14
15
991628020.UG.FTS.B,
17.99%,
1/31/25
..
945
973
991628247.UG.FTS.B,
17.99%,
1/31/25
..
793
96
991636165.UG.FTS.B,
17.99%,
1/31/25
..
646
665
991640620.UG.FTS.B,
17.99%,
1/31/25
..
756
778
991642242.UG.FTS.B,
17.99%,
1/31/25
..
195
201
991646047.UG.FTS.B,
17.99%,
1/31/25
..
1,475
1,518
991649852.UG.FTS.B,
17.99%,
1/31/25
..
188
194
991651359.UG.FTS.B,
17.99%,
1/31/25
..
298
308
991659616.UG.FTS.B,
17.99%,
1/31/25
..
664
674
991664214.UG.FTS.B,
17.99%,
1/31/25
..
236
241
991682270.UG.FTS.B,
17.99%,
1/31/25
..
272
280
991696738.UG.FTS.B,
17.99%,
1/31/25
..
147
152
991698361.UG.FTS.B,
17.99%,
1/31/25
..
154
159
991699400.UG.FTS.B,
17.99%,
1/31/25
..
251
259
991706638.UG.FTS.B,
17.99%,
1/31/25
..
220
42
991709244.UG.FTS.B,
17.99%,
1/31/25
..
144
148
991711488.UG.FTS.B,
17.99%,
1/31/25
..
427
440
991712841.UG.FTS.B,
17.99%,
1/31/25
..
595
614
991713828.UG.FTS.B,
17.99%,
1/31/25
..
6,010
6,185
991740606.UG.FTS.B,
17.99%,
1/31/25
..
192
198
991743801.UG.FTS.B,
17.99%,
1/31/25
..
840
865
991748611.UG.FTS.B,
17.99%,
1/31/25
..
480
496
991754758.UG.FTS.B,
17.99%,
1/31/25
..
1,344
1,388
991759257.UG.FTS.B,
17.99%,
1/31/25
..
149
154
991772768.UG.FTS.B,
17.99%,
1/31/25
..
144
148
991822192.UG.FTS.B,
17.99%,
1/31/25
..
1,584
1,625
991871878.UG.FTS.B,
17.99%,
1/31/25
..
336
339
991878484.UG.FTS.B,
17.99%,
1/31/25
..
12
12
991635799.UG.FTS.B,
18.97%,
1/31/25
..
1,114
1,146
991641148.UG.FTS.B,
18.97%,
1/31/25
..
574
591
991646069.UG.FTS.B,
18.97%,
1/31/25
..
284
293
991693691.UG.FTS.B,
18.97%,
1/31/25
..
722
742
991702370.UG.FTS.B,
18.97%,
1/31/25
..
192
123
991704685.UG.FTS.B,
18.97%,
1/31/25
..
46
48
991705454.UG.FTS.B,
18.97%,
1/31/25
..
1,196
1,234
991639577.UG.FTS.B,
19.21%,
1/31/25
..
300
309
991642378.UG.FTS.B,
19.21%,
1/31/25
..
59
61
991654842.UG.FTS.B,
19.21%,
1/31/25
..
256
265
991660673.UG.FTS.B,
19.21%,
1/31/25
..
1,223
1,259
991684344.UG.FTS.B,
19.21%,
1/31/25
..
415
427
991696599.UG.FTS.B,
19.21%,
1/31/25
..
204
211
991663410.UG.FTS.B,
19.8%,
1/31/25
...
3,762
3,850
991666877.UG.FTS.B,
19.8%,
1/31/25
...
104
107
991708296.UG.FTS.B,
19.8%,
1/31/25
...
367
378
991641898.UG.FTS.B,
20.46%,
1/31/25
..
104
104
991642374.UG.FTS.B,
20.46%,
1/31/25
..
69
70
991655586.UG.FTS.B,
20.46%,
1/31/25
..
580
598
991648537.UG.FTS.B,
20.97%,
1/31/25
..
218
225
991653526.UG.FTS.B,
20.97%,
1/31/25
..
444
457
991653644.UG.FTS.B,
20.97%,
1/31/25
..
6
6
991661887.UG.FTS.B,
20.97%,
1/31/25
..
247
255
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991683502.UG.FTS.B,
20.97%,
1/31/25
..
$
523
$
538
991630777.UG.FTS.B,
21.46%,
1/31/25
..
546
560
991656715.UG.FTS.B,
21.46%,
1/31/25
..
2,910
2,997
991693835.UG.FTS.B,
21.46%,
1/31/25
..
871
897
991702530.UG.FTS.B,
21.46%,
1/31/25
..
14
15
991705447.UG.FTS.B,
21.46%,
1/31/25
..
37
37
991672382.UG.FTS.B,
21.97%,
1/31/25
..
7,126
7,306
991697711.UG.FTS.B,
21.98%,
1/31/25
..
30
30
991704918.UG.FTS.B,
21.98%,
1/31/25
..
391
399
991707602.UG.FTS.B,
21.98%,
1/31/25
..
1,109
1,131
991648500.UG.FTS.B,
23.95%,
1/31/25
..
1,060
1,074
991661661.UG.FTS.B,
23.95%,
1/31/25
..
281
291
991667507.UG.FTS.B,
23.95%,
1/31/25
..
247
251
991799359.UG.FTS.B,
14%,
2/01/25
.....
84
85
991883831.UG.FTS.B,
14%,
2/01/25
.....
289
290
991745640.UG.FTS.B,
14.97%,
2/01/25
..
549
564
991833353.UG.FTS.B,
14.98%,
2/01/25
..
731
749
991836618.UG.FTS.B,
15%,
2/01/25
.....
1,207
1,234
991680366.UG.FTS.B,
15.97%,
2/01/25
..
4,047
4,153
991684676.UG.FTS.B,
15.97%,
2/01/25
..
4
4
991699125.UG.FTS.B,
15.97%,
2/01/25
..
351
357
991656115.UG.FTS.B,
15.99%,
2/01/25
..
964
989
991666265.UG.FTS.B,
16.99%,
2/01/25
..
781
799
991722252.UG.FTS.B,
16.99%,
2/01/25
..
770
789
991801511.UG.FTS.B,
16.99%,
2/01/25
..
287
295
991660996.UG.FTS.B,
17.97%,
2/01/25
..
540
37
991668427.UG.FTS.B,
17.97%,
2/01/25
..
632
641
991716411.UG.FTS.B,
17.99%,
2/01/25
..
87
87
991761791.UG.FTS.B,
17.99%,
2/01/25
..
997
1,022
991817210.UG.FTS.B,
17.99%,
2/01/25
..
1,549
1,582
991854741.UG.FTS.B,
17.99%,
2/01/25
..
798
806
991657231.UG.FTS.B,
13.97%,
2/02/25
..
5,776
5,948
991655483.UG.FTS.B,
14%,
2/02/25
.....
11,503
11,837
991693291.UG.FTS.B,
14%,
2/02/25
.....
231
237
991724492.UG.FTS.B,
14%,
2/02/25
.....
133
136
991725692.UG.FTS.B,
14%,
2/02/25
.....
334
342
991771266.UG.FTS.B,
14%,
2/02/25
.....
208
213
991834440.UG.FTS.B,
14%,
2/02/25
.....
334
343
991651238.UG.FTS.B,
14.97%,
2/02/25
..
30
31
991681763.UG.FTS.B,
14.97%,
2/02/25
..
364
374
991687949.UG.FTS.B,
14.98%,
2/02/25
..
339
347
991711178.UG.FTS.B,
14.98%,
2/02/25
..
7
7
991658184.UG.FTS.B,
15%,
2/02/25
.....
4,532
4,665
991681442.UG.FTS.B,
15%,
2/02/25
.....
88
90
991773277.UG.FTS.B,
15%,
2/02/25
.....
957
982
991651569.UG.FTS.B,
15.97%,
2/02/25
..
3
3
991670102.UG.FTS.B,
15.97%,
2/02/25
..
745
765
991670480.UG.FTS.B,
15.97%,
2/02/25
..
72
73
991705627.UG.FTS.B,
15.97%,
2/02/25
..
1,161
1,192
991712581.UG.FTS.B,
15.97%,
2/02/25
..
124
127
991760625.UG.FTS.B,
15.97%,
2/02/25
..
380
390
991763118.UG.FTS.B,
15.97%,
2/02/25
..
829
853
991783832.UG.FTS.B,
15.97%,
2/02/25
..
289
298
991848002.UG.FTS.B,
15.97%,
2/02/25
..
107
109
991884423.UG.FTS.B,
15.97%,
2/02/25
..
–
–
991655255.UG.FTS.B,
15.99%,
2/02/25
..
6,753
6,932
991849575.UG.FTS.B,
15.99%,
2/02/25
..
100
103
991650925.UG.FTS.B,
16.99%,
2/02/25
..
434
444
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
151
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991666008.UG.FTS.B,
16.99%,
2/02/25
..
$
628
$
644
991676165.UG.FTS.B,
16.99%,
2/02/25
..
309
317
991679270.UG.FTS.B,
16.99%,
2/02/25
..
361
370
991689542.UG.FTS.B,
16.99%,
2/02/25
..
706
724
991719739.UG.FTS.B,
16.99%,
2/02/25
..
2,950
3,026
991781369.UG.FTS.B,
16.99%,
2/02/25
..
930
954
991793383.UG.FTS.B,
16.99%,
2/02/25
..
4,795
4,917
991803768.UG.FTS.B,
16.99%,
2/02/25
..
434
441
991844255.UG.FTS.B,
16.99%,
2/02/25
..
4,782
4,906
991867793.UG.FTS.B,
16.99%,
2/02/25
..
48
49
991868233.UG.FTS.B,
16.99%,
2/02/25
..
3,690
3,761
991871017.UG.FTS.B,
16.99%,
2/02/25
..
1,528
1,557
991667408.UG.FTS.B,
17.97%,
2/02/25
..
194
199
991682242.UG.FTS.B,
17.97%,
2/02/25
..
433
443
991689544.UG.FTS.B,
17.97%,
2/02/25
..
162
166
991709632.UG.FTS.B,
17.97%,
2/02/25
..
9
9
991657130.UG.FTS.B,
17.99%,
2/02/25
..
109
112
991671206.UG.FTS.B,
17.99%,
2/02/25
..
969
983
991683457.UG.FTS.B,
17.99%,
2/02/25
..
390
239
991688111.UG.FTS.B,
17.99%,
2/02/25
..
43
43
991719523.UG.FTS.B,
17.99%,
2/02/25
..
1,017
1,043
991731323.UG.FTS.B,
17.99%,
2/02/25
..
397
407
991754202.UG.FTS.B,
17.99%,
2/02/25
..
1,408
1,449
991788137.UG.FTS.B,
17.99%,
2/02/25
..
397
408
991817155.UG.FTS.B,
17.99%,
2/02/25
..
8
8
991869051.UG.FTS.B,
17.99%,
2/02/25
..
3
3
991880297.UG.FTS.B,
17.99%,
2/02/25
..
470
479
991878726.UG.FTS.B,
14.98%,
2/03/25
..
652
665
991676136.UG.FTS.B,
16.99%,
2/03/25
..
593
605
991886549.UG.FTS.B,
16.99%,
2/03/25
..
103
106
991907914.UG.FTS.B,
17.99%,
2/03/25
..
191
194
991861030.UG.FTS.B,
19.21%,
2/03/25
..
485
487
991918906.UG.FTS.B,
19.21%,
2/03/25
..
5,248
5,340
991689885.UG.FTS.B,
19.99%,
2/03/25
..
812
830
991696135.UG.FTS.B,
19.99%,
2/03/25
..
189
192
991714434.UG.FTS.B,
19.99%,
2/03/25
..
493
503
991714848.UG.FTS.B,
19.99%,
2/03/25
..
176
179
991717613.UG.FTS.B,
19.99%,
2/03/25
..
719
710
991747696.UG.FTS.B,
19.99%,
2/03/25
..
535
547
991826636.UG.FTS.B,
19.99%,
2/03/25
..
900
907
991859515.UG.FTS.B,
19.99%,
2/03/25
..
330
335
991913936.UG.FTS.B,
21.46%,
2/03/25
..
257
260
991914992.UG.FTS.B,
21.97%,
2/03/25
..
88
90
991702146.UG.FTS.B,
21.98%,
2/03/25
..
474
91
991885990.UG.FTS.B,
21.98%,
2/03/25
..
163
165
991677982.UG.FTS.B,
22.97%,
2/03/25
..
314
312
991918682.UG.FTS.B,
22.97%,
2/03/25
..
2,125
2,148
991705607.UG.FTS.B,
23.95%,
2/03/25
..
963
963
991676444.UG.FTS.B,
26.94%,
2/03/25
..
114
116
991684537.UG.FTS.B,
27.99%,
2/03/25
..
200
204
991709780.UG.FTS.B,
27.99%,
2/03/25
..
260
266
991744807.UG.FTS.B,
27.99%,
2/03/25
..
245
250
991680701.UG.FTS.B,
28.98%,
2/03/25
..
314
320
991680912.UG.FTS.B,
28.98%,
2/03/25
..
280
58
991686623.UG.FTS.B,
28.98%,
2/03/25
..
3,247
3,319
991688155.UG.FTS.B,
28.98%,
2/03/25
..
458
468
991694975.UG.FTS.B,
28.98%,
2/03/25
..
2,176
2,221
991699673.UG.FTS.B,
28.98%,
2/03/25
..
245
248
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991700745.UG.FTS.B,
28.98%,
2/03/25
..
$
4,922
$
5,014
991702438.UG.FTS.B,
28.98%,
2/03/25
..
0
0
991704352.UG.FTS.B,
28.98%,
2/03/25
..
462
471
991705757.UG.FTS.B,
28.98%,
2/03/25
..
2,421
2,472
991707660.UG.FTS.B,
28.98%,
2/03/25
..
156
32
991708472.UG.FTS.B,
28.98%,
2/03/25
..
101
103
991712501.UG.FTS.B,
28.98%,
2/03/25
..
179
182
991713283.UG.FTS.B,
28.98%,
2/03/25
..
343
339
991713626.UG.FTS.B,
28.98%,
2/03/25
..
243
248
991715244.UG.FTS.B,
28.98%,
2/03/25
..
206
210
991716236.UG.FTS.B,
28.98%,
2/03/25
..
153
156
991716314.UG.FTS.B,
28.98%,
2/03/25
..
2,262
2,304
991717783.UG.FTS.B,
28.98%,
2/03/25
..
66
67
991720594.UG.FTS.B,
28.98%,
2/03/25
..
545
550
991726591.UG.FTS.B,
28.98%,
2/03/25
..
249
250
991743871.UG.FTS.B,
28.98%,
2/03/25
..
329
337
991771151.UG.FTS.B,
28.98%,
2/03/25
..
635
130
991777700.UG.FTS.B,
28.98%,
2/03/25
..
1,024
1,033
991813632.UG.FTS.B,
28.98%,
2/03/25
..
85
84
991826762.UG.FTS.B,
28.98%,
2/03/25
..
124
126
991827774.UG.FTS.B,
28.98%,
2/03/25
..
82
83
991881261.UG.FTS.B,
28.98%,
2/03/25
..
54
54
991882827.UG.FTS.B,
28.98%,
2/03/25
..
224
227
991893092.UG.FTS.B,
28.98%,
2/03/25
..
213
215
991910619.UG.FTS.B,
28.98%,
2/03/25
..
551
556
991911258.UG.FTS.B,
28.98%,
2/03/25
..
121
122
991911288.UG.FTS.B,
28.98%,
2/03/25
..
104
106
991911379.UG.FTS.B,
28.98%,
2/03/25
..
41
35
991915303.UG.FTS.B,
28.98%,
2/03/25
..
51
52
991916599.UG.FTS.B,
28.98%,
2/03/25
..
117
118
991917507.UG.FTS.B,
28.98%,
2/03/25
..
0
0
991660241.UG.FTS.B,
29.49%,
2/03/25
..
749
759
991675513.UG.FTS.B,
29.49%,
2/03/25
..
42
41
991675854.UG.FTS.B,
29.49%,
2/03/25
..
288
294
991676586.UG.FTS.B,
29.49%,
2/03/25
..
243
245
991678045.UG.FTS.B,
29.49%,
2/03/25
..
1
1
991678160.UG.FTS.B,
29.49%,
2/03/25
..
47
48
991678637.UG.FTS.B,
29.49%,
2/03/25
..
218
221
991678902.UG.FTS.B,
29.49%,
2/03/25
..
1,271
1,294
991679875.UG.FTS.B,
29.49%,
2/03/25
..
148
151
991679959.UG.FTS.B,
29.49%,
2/03/25
..
278
59
991689327.UG.FTS.B,
29.49%,
2/03/25
..
757
771
991701194.UG.FTS.B,
29.49%,
2/03/25
..
101
99
991703345.UG.FTS.B,
29.49%,
2/03/25
..
457
466
991711271.UG.FTS.B,
29.49%,
2/03/25
..
45
7
991711847.UG.FTS.B,
29.49%,
2/03/25
..
860
847
991712984.UG.FTS.B,
29.49%,
2/03/25
..
36
36
991714666.UG.FTS.B,
29.49%,
2/03/25
..
55
56
991716229.UG.FTS.B,
29.49%,
2/03/25
..
20
20
991722488.UG.FTS.B,
29.49%,
2/03/25
..
240
244
991742223.UG.FTS.B,
29.49%,
2/03/25
..
74
74
991743632.UG.FTS.B,
29.49%,
2/03/25
..
209
212
991747483.UG.FTS.B,
29.49%,
2/03/25
..
763
753
991748169.UG.FTS.B,
29.49%,
2/03/25
..
224
225
991749363.UG.FTS.B,
29.49%,
2/03/25
..
169
36
991756506.UG.FTS.B,
29.49%,
2/03/25
..
178
181
991763055.UG.FTS.B,
29.49%,
2/03/25
..
197
201
991769654.UG.FTS.B,
29.49%,
2/03/25
..
82
82
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
152
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991770245.UG.FTS.B,
29.49%,
2/03/25
..
$
528
$
536
991795655.UG.FTS.B,
29.49%,
2/03/25
..
68
69
991803788.UG.FTS.B,
29.49%,
2/03/25
..
70
71
991805657.UG.FTS.B,
29.49%,
2/03/25
..
529
530
991821197.UG.FTS.B,
29.49%,
2/03/25
..
50
16
991851637.UG.FTS.B,
29.49%,
2/03/25
..
11
11
991852488.UG.FTS.B,
29.49%,
2/03/25
..
165
165
991864584.UG.FTS.B,
29.49%,
2/03/25
..
141
141
991877485.UG.FTS.B,
29.49%,
2/03/25
..
158
158
991883418.UG.FTS.B,
29.49%,
2/03/25
..
170
172
991891229.UG.FTS.B,
29.49%,
2/03/25
..
38
38
991902227.UG.FTS.B,
29.49%,
2/03/25
..
415
50
991909211.UG.FTS.B,
29.49%,
2/03/25
..
47
47
991909621.UG.FTS.B,
29.49%,
2/03/25
..
41
40
991910732.UG.FTS.B,
29.49%,
2/03/25
..
81
79
991911804.UG.FTS.B,
29.49%,
2/03/25
..
10
6
991912447.UG.FTS.B,
29.49%,
2/03/25
..
845
852
991912585.UG.FTS.B,
29.49%,
2/03/25
..
63
64
991916903.UG.FTS.B,
29.49%,
2/03/25
..
270
270
991917239.UG.FTS.B,
29.49%,
2/03/25
..
304
307
991917590.UG.FTS.B,
29.49%,
2/03/25
..
68
69
991918490.UG.FTS.B,
29.49%,
2/03/25
..
225
227
991694525.UG.FTS.B,
14.98%,
2/04/25
..
939
964
991775705.UG.FTS.B,
14.98%,
2/04/25
..
214
220
991871765.UG.FTS.B,
14.98%,
2/04/25
..
334
343
991692937.UG.FTS.B,
15%,
2/04/25
.....
224
230
991717885.UG.FTS.B,
15.97%,
2/04/25
..
1,300
1,336
991728662.UG.FTS.B,
15.97%,
2/04/25
..
16
16
991772223.UG.FTS.B,
15.97%,
2/04/25
..
1,440
1,480
991809306.UG.FTS.B,
15.97%,
2/04/25
..
330
339
991700340.UG.FTS.B,
16.99%,
2/04/25
..
330
337
991713871.UG.FTS.B,
16.99%,
2/04/25
..
29
29
991741062.UG.FTS.B,
16.99%,
2/04/25
..
358
368
991803848.UG.FTS.B,
16.99%,
2/04/25
..
675
696
991809198.UG.FTS.B,
16.99%,
2/04/25
..
618
634
991816473.UG.FTS.B,
16.99%,
2/04/25
..
1,275
1,301
991834171.UG.FTS.B,
16.99%,
2/04/25
..
9,622
9,915
991800894.UG.FTS.B,
17.97%,
2/04/25
..
908
932
991761530.UG.FTS.B,
17.99%,
2/04/25
..
467
480
991807834.UG.FTS.B,
17.99%,
2/04/25
..
195
200
991863823.UG.FTS.B,
17.99%,
2/04/25
..
32
31
991752793.UG.FTS.B,
18.97%,
2/04/25
..
693
701
991729245.UG.FTS.B,
19.8%,
2/04/25
...
156
160
991685630.UG.FTS.B,
19.99%,
2/04/25
..
533
538
991696773.UG.FTS.B,
19.99%,
2/04/25
..
289
289
991732723.UG.FTS.B,
19.99%,
2/04/25
..
1,117
1,142
991744504.UG.FTS.B,
19.99%,
2/04/25
..
264
269
991796758.UG.FTS.B,
19.99%,
2/04/25
..
294
290
991889300.UG.FTS.B,
19.99%,
2/04/25
..
214
216
991908977.UG.FTS.B,
19.99%,
2/04/25
..
10
6
991913677.UG.FTS.B,
19.99%,
2/04/25
..
215
218
991919104.UG.FTS.B,
19.99%,
2/04/25
..
382
386
991703863.UG.FTS.B,
20.46%,
2/04/25
..
580
585
991729800.UG.FTS.B,
20.46%,
2/04/25
..
142
143
991915319.UG.FTS.B,
20.46%,
2/04/25
..
203
206
991697789.UG.FTS.B,
20.97%,
2/04/25
..
949
972
991687138.UG.FTS.B,
21.46%,
2/04/25
..
58
58
991925637.UG.FTS.B,
21.46%,
2/04/25
..
70
71
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991708493.UG.FTS.B,
21.97%,
2/04/25
..
$
198
$
198
991705959.UG.FTS.B,
21.98%,
2/04/25
..
636
644
991712275.UG.FTS.B,
22.97%,
2/04/25
..
521
526
991918054.UG.FTS.B,
22.97%,
2/04/25
..
1,913
1,933
991695448.UG.FTS.B,
25.95%,
2/04/25
..
307
313
991724012.UG.FTS.B,
27.99%,
2/04/25
..
256
261
991911625.UG.FTS.B,
27.99%,
2/04/25
..
1,651
1,664
991687579.UG.FTS.B,
28.98%,
2/04/25
..
730
152
991688156.UG.FTS.B,
28.98%,
2/04/25
..
312
314
991689281.UG.FTS.B,
28.98%,
2/04/25
..
1,374
1,378
991696574.UG.FTS.B,
28.98%,
2/04/25
..
167
171
991697057.UG.FTS.B,
28.98%,
2/04/25
..
585
580
991700907.UG.FTS.B,
28.98%,
2/04/25
..
240
245
991702129.UG.FTS.B,
28.98%,
2/04/25
..
62
8
991704302.UG.FTS.B,
28.98%,
2/04/25
..
189
121
991707073.UG.FTS.B,
28.98%,
2/04/25
..
20
20
991709552.UG.FTS.B,
28.98%,
2/04/25
..
9
9
991709788.UG.FTS.B,
28.98%,
2/04/25
..
87
87
991713631.UG.FTS.B,
28.98%,
2/04/25
..
125
128
991714612.UG.FTS.B,
28.98%,
2/04/25
..
10
10
991714711.UG.FTS.B,
28.98%,
2/04/25
..
27
27
991714817.UG.FTS.B,
28.98%,
2/04/25
..
173
177
991714934.UG.FTS.B,
28.98%,
2/04/25
..
581
582
991728564.UG.FTS.B,
28.98%,
2/04/25
..
144
30
991735164.UG.FTS.B,
28.98%,
2/04/25
..
1,569
1,560
991736129.UG.FTS.B,
28.98%,
2/04/25
..
121
123
991738402.UG.FTS.B,
28.98%,
2/04/25
..
101
102
991738710.UG.FTS.B,
28.98%,
2/04/25
..
252
257
991754102.UG.FTS.B,
28.98%,
2/04/25
..
43
37
991765630.UG.FTS.B,
28.98%,
2/04/25
..
101
103
991768945.UG.FTS.B,
28.98%,
2/04/25
..
134
28
991777966.UG.FTS.B,
28.98%,
2/04/25
..
64
17
991784708.UG.FTS.B,
28.98%,
2/04/25
..
217
220
991786787.UG.FTS.B,
28.98%,
2/04/25
..
194
195
991787733.UG.FTS.B,
28.98%,
2/04/25
..
120
121
991788826.UG.FTS.B,
28.98%,
2/04/25
..
643
638
991805373.UG.FTS.B,
28.98%,
2/04/25
..
145
147
991808487.UG.FTS.B,
28.98%,
2/04/25
..
533
530
991812064.UG.FTS.B,
28.98%,
2/04/25
..
55
56
991821966.UG.FTS.B,
28.98%,
2/04/25
..
138
139
991824710.UG.FTS.B,
28.98%,
2/04/25
..
831
839
991831192.UG.FTS.B,
28.98%,
2/04/25
..
87
88
991836806.UG.FTS.B,
28.98%,
2/04/25
..
138
139
991867830.UG.FTS.B,
28.98%,
2/04/25
..
62
63
991876641.UG.FTS.B,
28.98%,
2/04/25
..
121
119
991900572.UG.FTS.B,
28.98%,
2/04/25
..
125
126
991902574.UG.FTS.B,
28.98%,
2/04/25
..
603
608
991909297.UG.FTS.B,
28.98%,
2/04/25
..
226
28
991911859.UG.FTS.B,
28.98%,
2/04/25
..
124
125
991913016.UG.FTS.B,
28.98%,
2/04/25
..
18
18
991914147.UG.FTS.B,
28.98%,
2/04/25
..
234
236
991916161.UG.FTS.B,
28.98%,
2/04/25
..
55
55
991922928.UG.FTS.B,
28.98%,
2/04/25
..
230
232
991926669.UG.FTS.B,
28.98%,
2/04/25
..
94
96
991669669.UG.FTS.B,
29.49%,
2/04/25
..
3,240
3,270
991684601.UG.FTS.B,
29.49%,
2/04/25
..
57
58
991685240.UG.FTS.B,
29.49%,
2/04/25
..
1,599
1,630
991685368.UG.FTS.B,
29.49%,
2/04/25
..
259
265
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
153
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991686694.UG.FTS.B,
29.49%,
2/04/25
..
$
214
$
219
991686783.UG.FTS.B,
29.49%,
2/04/25
..
109
110
991686979.UG.FTS.B,
29.49%,
2/04/25
..
807
819
991687371.UG.FTS.B,
29.49%,
2/04/25
..
227
226
991687443.UG.FTS.B,
29.49%,
2/04/25
..
51
52
991688237.UG.FTS.B,
29.49%,
2/04/25
..
15
14
991688627.UG.FTS.B,
29.49%,
2/04/25
..
391
386
991693725.UG.FTS.B,
29.49%,
2/04/25
..
442
451
991694653.UG.FTS.B,
29.49%,
2/04/25
..
665
672
991696658.UG.FTS.B,
29.49%,
2/04/25
..
80
81
991700247.UG.FTS.B,
29.49%,
2/04/25
..
257
258
991700295.UG.FTS.B,
29.49%,
2/04/25
..
523
533
991700897.UG.FTS.B,
29.49%,
2/04/25
..
75
76
991703156.UG.FTS.B,
29.49%,
2/04/25
..
306
300
991703311.UG.FTS.B,
29.49%,
2/04/25
..
212
46
991707526.UG.FTS.B,
29.49%,
2/04/25
..
922
906
991708261.UG.FTS.B,
29.49%,
2/04/25
..
796
812
991708603.UG.FTS.B,
29.49%,
2/04/25
..
331
337
991709190.UG.FTS.B,
29.49%,
2/04/25
..
104
106
991711629.UG.FTS.B,
29.49%,
2/04/25
..
1,336
1,360
991713833.UG.FTS.B,
29.49%,
2/04/25
..
810
816
991714621.UG.FTS.B,
29.49%,
2/04/25
..
180
185
991717127.UG.FTS.B,
29.49%,
2/04/25
..
208
212
991717208.UG.FTS.B,
29.49%,
2/04/25
..
490
500
991726663.UG.FTS.B,
29.49%,
2/04/25
..
1,134
1,148
991737055.UG.FTS.B,
29.49%,
2/04/25
..
844
848
991738154.UG.FTS.B,
29.49%,
2/04/25
..
1,184
1,205
991746074.UG.FTS.B,
29.49%,
2/04/25
..
1,214
1,232
991752382.UG.FTS.B,
29.49%,
2/04/25
..
991
992
991756930.UG.FTS.B,
29.49%,
2/04/25
..
438
444
991758431.UG.FTS.B,
29.49%,
2/04/25
..
130
130
991758842.UG.FTS.B,
29.49%,
2/04/25
..
545
547
991763162.UG.FTS.B,
29.49%,
2/04/25
..
116
118
991763299.UG.FTS.B,
29.49%,
2/04/25
..
2
2
991763796.UG.FTS.B,
29.49%,
2/04/25
..
233
235
991767029.UG.FTS.B,
29.49%,
2/04/25
..
75
76
991769405.UG.FTS.B,
29.49%,
2/04/25
..
59
59
991774935.UG.FTS.B,
29.49%,
2/04/25
..
1,332
1,355
991781478.UG.FTS.B,
29.49%,
2/04/25
..
282
281
991786330.UG.FTS.B,
29.49%,
2/04/25
..
1,310
1,320
991786752.UG.FTS.B,
29.49%,
2/04/25
..
134
136
991788127.UG.FTS.B,
29.49%,
2/04/25
..
3,323
3,318
991807327.UG.FTS.B,
29.49%,
2/04/25
..
266
267
991808732.UG.FTS.B,
29.49%,
2/04/25
..
147
149
991813794.UG.FTS.B,
29.49%,
2/04/25
..
537
529
991814134.UG.FTS.B,
29.49%,
2/04/25
..
342
337
991839430.UG.FTS.B,
29.49%,
2/04/25
..
225
226
991841367.UG.FTS.B,
29.49%,
2/04/25
..
25
25
991847043.UG.FTS.B,
29.49%,
2/04/25
..
906
905
991847289.UG.FTS.B,
29.49%,
2/04/25
..
132
134
991848466.UG.FTS.B,
29.49%,
2/04/25
..
104
105
991849560.UG.FTS.B,
29.49%,
2/04/25
..
110
112
991858988.UG.FTS.B,
29.49%,
2/04/25
..
229
226
991867247.UG.FTS.B,
29.49%,
2/04/25
..
285
280
991876144.UG.FTS.B,
29.49%,
2/04/25
..
139
139
991878368.UG.FTS.B,
29.49%,
2/04/25
..
279
281
991878459.UG.FTS.B,
29.49%,
2/04/25
..
178
179
991878692.UG.FTS.B,
29.49%,
2/04/25
..
9
9
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991879607.UG.FTS.B,
29.49%,
2/04/25
..
$
274
$
273
991884671.UG.FTS.B,
29.49%,
2/04/25
..
96
94
991889761.UG.FTS.B,
29.49%,
2/04/25
..
99
100
991892265.UG.FTS.B,
29.49%,
2/04/25
..
160
20
991901138.UG.FTS.B,
29.49%,
2/04/25
..
306
307
991909249.UG.FTS.B,
29.49%,
2/04/25
..
150
151
991910238.UG.FTS.B,
29.49%,
2/04/25
..
36
36
991910520.UG.FTS.B,
29.49%,
2/04/25
..
220
222
991912167.UG.FTS.B,
29.49%,
2/04/25
..
10
10
991912907.UG.FTS.B,
29.49%,
2/04/25
..
121
121
991915109.UG.FTS.B,
29.49%,
2/04/25
..
33
33
991915193.UG.FTS.B,
29.49%,
2/04/25
..
114
113
991915888.UG.FTS.B,
29.49%,
2/04/25
..
278
278
991916695.UG.FTS.B,
29.49%,
2/04/25
..
98
100
991916727.UG.FTS.B,
29.49%,
2/04/25
..
83
84
991917180.UG.FTS.B,
29.49%,
2/04/25
..
230
232
991917741.UG.FTS.B,
29.49%,
2/04/25
..
957
961
991918013.UG.FTS.B,
29.49%,
2/04/25
..
47
47
991918511.UG.FTS.B,
29.49%,
2/04/25
..
2,469
2,483
991919432.UG.FTS.B,
29.49%,
2/04/25
..
47
47
991922941.UG.FTS.B,
29.49%,
2/04/25
..
21
21
991923244.UG.FTS.B,
29.49%,
2/04/25
..
82
83
991923655.UG.FTS.B,
29.49%,
2/04/25
..
56
56
991924956.UG.FTS.B,
29.49%,
2/04/25
..
48
48
991925717.UG.FTS.B,
29.49%,
2/04/25
..
176
177
991695863.UG.FTS.B,
17.99%,
2/05/25
..
200
200
991712920.UG.FTS.B,
18.97%,
2/05/25
..
–
–
991720650.UG.FTS.B,
18.97%,
2/05/25
..
1,927
1,978
991726962.UG.FTS.B,
18.97%,
2/05/25
..
149
153
991707817.UG.FTS.B,
19.21%,
2/05/25
..
198
199
991717423.UG.FTS.B,
19.21%,
2/05/25
..
83
85
991788298.UG.FTS.B,
19.21%,
2/05/25
..
340
346
991861184.UG.FTS.B,
19.21%,
2/05/25
..
229
235
991721206.UG.FTS.B,
19.8%,
2/05/25
...
38
39
991787524.UG.FTS.B,
19.8%,
2/05/25
...
2
2
991682958.UG.FTS.B,
19.99%,
2/05/25
..
2,921
2,998
991692919.UG.FTS.B,
19.99%,
2/05/25
..
167
166
991693229.UG.FTS.B,
19.99%,
2/05/25
..
113
115
991693967.UG.FTS.B,
19.99%,
2/05/25
..
277
283
991693994.UG.FTS.B,
19.99%,
2/05/25
..
141
145
991700959.UG.FTS.B,
19.99%,
2/05/25
..
48
48
991705785.UG.FTS.B,
19.99%,
2/05/25
..
367
368
991709370.UG.FTS.B,
19.99%,
2/05/25
..
135
135
991710161.UG.FTS.B,
19.99%,
2/05/25
..
123
125
991711146.UG.FTS.B,
19.99%,
2/05/25
..
1,039
1,063
991719379.UG.FTS.B,
19.99%,
2/05/25
..
278
285
991725525.UG.FTS.B,
19.99%,
2/05/25
..
492
500
991726938.UG.FTS.B,
19.99%,
2/05/25
..
137
140
991735635.UG.FTS.B,
19.99%,
2/05/25
..
139
142
991739604.UG.FTS.B,
19.99%,
2/05/25
..
1,581
1,615
991754294.UG.FTS.B,
19.99%,
2/05/25
..
974
996
991772904.UG.FTS.B,
19.99%,
2/05/25
..
202
206
991783330.UG.FTS.B,
19.99%,
2/05/25
..
170
12
991785468.UG.FTS.B,
19.99%,
2/05/25
..
100
101
991788757.UG.FTS.B,
19.99%,
2/05/25
..
38
38
991805088.UG.FTS.B,
19.99%,
2/05/25
..
104
106
991809104.UG.FTS.B,
19.99%,
2/05/25
..
–
–
991812345.UG.FTS.B,
19.99%,
2/05/25
..
65
66
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
154
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991812813.UG.FTS.B,
19.99%,
2/05/25
..
$
50
$
51
991817784.UG.FTS.B,
19.99%,
2/05/25
..
183
185
991831360.UG.FTS.B,
19.99%,
2/05/25
..
922
942
991832671.UG.FTS.B,
19.99%,
2/05/25
..
480
491
991840614.UG.FTS.B,
19.99%,
2/05/25
..
28
29
991843643.UG.FTS.B,
19.99%,
2/05/25
..
415
415
991855671.UG.FTS.B,
19.99%,
2/05/25
..
77
78
991895791.UG.FTS.B,
19.99%,
2/05/25
..
93
94
991915152.UG.FTS.B,
19.99%,
2/05/25
..
713
709
991915604.UG.FTS.B,
19.99%,
2/05/25
..
31
31
991915773.UG.FTS.B,
19.99%,
2/05/25
..
64
65
991918916.UG.FTS.B,
19.99%,
2/05/25
..
79
79
991930448.UG.FTS.B,
19.99%,
2/05/25
..
47
48
991936396.UG.FTS.B,
19.99%,
2/05/25
..
33
33
991938588.UG.FTS.B,
19.99%,
2/05/25
..
668
675
991713079.UG.FTS.B,
20.46%,
2/05/25
..
604
619
991758665.UG.FTS.B,
20.46%,
2/05/25
..
412
419
991764420.UG.FTS.B,
20.46%,
2/05/25
..
105
106
991786575.UG.FTS.B,
20.46%,
2/05/25
..
–
–
991793672.UG.FTS.B,
20.46%,
2/05/25
..
10
10
991841527.UG.FTS.B,
20.46%,
2/05/25
..
1,414
1,448
991707903.UG.FTS.B,
20.97%,
2/05/25
..
150
154
991715134.UG.FTS.B,
20.97%,
2/05/25
..
315
322
991715412.UG.FTS.B,
20.97%,
2/05/25
..
320
328
991832676.UG.FTS.B,
20.97%,
2/05/25
..
12,012
12,297
991835755.UG.FTS.B,
20.97%,
2/05/25
..
590
601
991872851.UG.FTS.B,
20.98%,
2/05/25
..
417
29
991693565.UG.FTS.B,
21.46%,
2/05/25
..
427
430
991731765.UG.FTS.B,
21.46%,
2/05/25
..
99
100
991798372.UG.FTS.B,
21.46%,
2/05/25
..
619
633
991834692.UG.FTS.B,
21.46%,
2/05/25
..
1,154
1,185
991840414.UG.FTS.B,
21.46%,
2/05/25
..
470
481
991869250.UG.FTS.B,
21.46%,
2/05/25
..
1,954
1,974
991909294.UG.FTS.B,
21.46%,
2/05/25
..
56
57
991910043.UG.FTS.B,
21.46%,
2/05/25
..
1,772
1,790
991721018.UG.FTS.B,
21.98%,
2/05/25
..
891
907
991729486.UG.FTS.B,
21.98%,
2/05/25
..
12
12
991755283.UG.FTS.B,
21.98%,
2/05/25
..
1,086
1,092
991819648.UG.FTS.B,
21.98%,
2/05/25
..
11
11
991911356.UG.FTS.B,
21.98%,
2/05/25
..
217
220
991708641.UG.FTS.B,
22.97%,
2/05/25
..
801
819
991713571.UG.FTS.B,
22.97%,
2/05/25
..
2,488
2,542
991743501.UG.FTS.B,
22.97%,
2/05/25
..
632
646
991748087.UG.FTS.B,
22.97%,
2/05/25
..
42
43
991783388.UG.FTS.B,
22.97%,
2/05/25
..
493
96
991794589.UG.FTS.B,
22.97%,
2/05/25
..
180
185
991924883.UG.FTS.B,
23.95%,
2/05/25
..
100
102
991703789.UG.FTS.B,
24.95%,
2/05/25
..
234
234
991804301.UG.FTS.B,
25.94%,
2/05/25
..
242
246
991707914.UG.FTS.B,
25.95%,
2/05/25
..
182
185
991743591.UG.FTS.B,
25.95%,
2/05/25
..
467
475
991755942.UG.FTS.B,
26.94%,
2/05/25
..
826
831
991737282.UG.FTS.B,
27.95%,
2/05/25
..
151
154
991693154.UG.FTS.B,
27.99%,
2/05/25
..
89
88
991696029.UG.FTS.B,
27.99%,
2/05/25
..
310
316
991705622.UG.FTS.B,
27.99%,
2/05/25
..
287
293
991706774.UG.FTS.B,
27.99%,
2/05/25
..
47
47
991717022.UG.FTS.B,
27.99%,
2/05/25
..
269
275
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991747914.UG.FTS.B,
27.99%,
2/05/25
..
$
3,166
$
3,234
991750448.UG.FTS.B,
27.99%,
2/05/25
..
270
267
991806478.UG.FTS.B,
27.99%,
2/05/25
..
62
63
991936016.UG.FTS.B,
27.99%,
2/05/25
..
639
631
991675164.UG.FTS.B,
28.98%,
2/05/25
..
1,659
347
991677817.UG.FTS.B,
28.98%,
2/05/25
..
2,485
2,549
991680083.UG.FTS.B,
28.98%,
2/05/25
..
83
84
991683489.UG.FTS.B,
28.98%,
2/05/25
..
2,770
2,819
991692903.UG.FTS.B,
28.98%,
2/05/25
..
326
322
991693091.UG.FTS.B,
28.98%,
2/05/25
..
213
210
991693710.UG.FTS.B,
28.98%,
2/05/25
..
1,879
1,920
991693898.UG.FTS.B,
28.98%,
2/05/25
..
72
73
991694863.UG.FTS.B,
28.98%,
2/05/25
..
327
334
991695593.UG.FTS.B,
28.98%,
2/05/25
..
53
54
991696502.UG.FTS.B,
28.98%,
2/05/25
..
842
859
991696534.UG.FTS.B,
28.98%,
2/05/25
..
301
36
991700269.UG.FTS.B,
28.98%,
2/05/25
..
195
200
991702186.UG.FTS.B,
28.98%,
2/05/25
..
151
149
991702204.UG.FTS.B,
28.98%,
2/05/25
..
9
9
991702659.UG.FTS.B,
28.98%,
2/05/25
..
647
661
991702705.UG.FTS.B,
28.98%,
2/05/25
..
30
30
991702789.UG.FTS.B,
28.98%,
2/05/25
..
681
693
991702826.UG.FTS.B,
28.98%,
2/05/25
..
158
162
991703007.UG.FTS.B,
28.98%,
2/05/25
..
183
185
991703353.UG.FTS.B,
28.98%,
2/05/25
..
380
389
991704666.UG.FTS.B,
28.98%,
2/05/25
..
454
464
991704688.UG.FTS.B,
28.98%,
2/05/25
..
23
23
991704721.UG.FTS.B,
28.98%,
2/05/25
..
95
97
991705577.UG.FTS.B,
28.98%,
2/05/25
..
105
104
991705698.UG.FTS.B,
28.98%,
2/05/25
..
99
101
991705736.UG.FTS.B,
28.98%,
2/05/25
..
163
166
991706202.UG.FTS.B,
28.98%,
2/05/25
..
433
443
991706300.UG.FTS.B,
28.98%,
2/05/25
..
402
408
991706343.UG.FTS.B,
28.98%,
2/05/25
..
149
150
991706346.UG.FTS.B,
28.98%,
2/05/25
..
2,396
2,449
991706382.UG.FTS.B,
28.98%,
2/05/25
..
184
188
991706592.UG.FTS.B,
28.98%,
2/05/25
..
6
6
991706721.UG.FTS.B,
28.98%,
2/05/25
..
53
54
991706981.UG.FTS.B,
28.98%,
2/05/25
..
395
48
991707064.UG.FTS.B,
28.98%,
2/05/25
..
836
829
991708053.UG.FTS.B,
28.98%,
2/05/25
..
2,328
2,358
991708055.UG.FTS.B,
28.98%,
2/05/25
..
232
238
991708168.UG.FTS.B,
28.98%,
2/05/25
..
333
335
991708239.UG.FTS.B,
28.98%,
2/05/25
..
216
221
991708288.UG.FTS.B,
28.98%,
2/05/25
..
1,140
1,130
991708354.UG.FTS.B,
28.98%,
2/05/25
..
243
241
991708535.UG.FTS.B,
28.98%,
2/05/25
..
59
60
991708892.UG.FTS.B,
28.98%,
2/05/25
..
2
2
991709411.UG.FTS.B,
28.98%,
2/05/25
..
275
274
991710032.UG.FTS.B,
28.98%,
2/05/25
..
121
120
991710273.UG.FTS.B,
28.98%,
2/05/25
..
159
163
991710420.UG.FTS.B,
28.98%,
2/05/25
..
555
568
991710514.UG.FTS.B,
28.98%,
2/05/25
..
66
67
991710560.UG.FTS.B,
28.98%,
2/05/25
..
824
842
991711890.UG.FTS.B,
28.98%,
2/05/25
..
598
606
991712219.UG.FTS.B,
28.98%,
2/05/25
..
917
192
991712458.UG.FTS.B,
28.98%,
2/05/25
..
191
191
991713972.UG.FTS.B,
28.98%,
2/05/25
..
346
353
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
155
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991714493.UG.FTS.B,
28.98%,
2/05/25
..
$
152
$
156
991715617.UG.FTS.B,
28.98%,
2/05/25
..
17
17
991715735.UG.FTS.B,
28.98%,
2/05/25
..
104
106
991716101.UG.FTS.B,
28.98%,
2/05/25
..
270
273
991716179.UG.FTS.B,
28.98%,
2/05/25
..
244
250
991717401.UG.FTS.B,
28.98%,
2/05/25
..
304
311
991717488.UG.FTS.B,
28.98%,
2/05/25
..
228
233
991717894.UG.FTS.B,
28.98%,
2/05/25
..
293
299
991718026.UG.FTS.B,
28.98%,
2/05/25
..
678
689
991718944.UG.FTS.B,
28.98%,
2/05/25
..
965
985
991719300.UG.FTS.B,
28.98%,
2/05/25
..
96
98
991721024.UG.FTS.B,
28.98%,
2/05/25
..
878
898
991721186.UG.FTS.B,
28.98%,
2/05/25
..
936
953
991724571.UG.FTS.B,
28.98%,
2/05/25
..
216
220
991724730.UG.FTS.B,
28.98%,
2/05/25
..
928
949
991726458.UG.FTS.B,
28.98%,
2/05/25
..
769
761
991726806.UG.FTS.B,
28.98%,
2/05/25
..
160
162
991728132.UG.FTS.B,
28.98%,
2/05/25
..
981
999
991729017.UG.FTS.B,
28.98%,
2/05/25
..
21
21
991729263.UG.FTS.B,
28.98%,
2/05/25
..
15
15
991729399.UG.FTS.B,
28.98%,
2/05/25
..
3,681
3,760
991729506.UG.FTS.B,
28.98%,
2/05/25
..
198
197
991729522.UG.FTS.B,
28.98%,
2/05/25
..
82
84
991730611.UG.FTS.B,
28.98%,
2/05/25
..
975
997
991732445.UG.FTS.B,
28.98%,
2/05/25
..
24
24
991732989.UG.FTS.B,
28.98%,
2/05/25
..
395
404
991733966.UG.FTS.B,
28.98%,
2/05/25
..
104
106
991734130.UG.FTS.B,
28.98%,
2/05/25
..
92
94
991734853.UG.FTS.B,
28.98%,
2/05/25
..
139
142
991735560.UG.FTS.B,
28.98%,
2/05/25
..
128
131
991736771.UG.FTS.B,
28.98%,
2/05/25
..
263
265
991737214.UG.FTS.B,
28.98%,
2/05/25
..
226
231
991737281.UG.FTS.B,
28.98%,
2/05/25
..
94
95
991737532.UG.FTS.B,
28.98%,
2/05/25
..
2,284
2,333
991737652.UG.FTS.B,
28.98%,
2/05/25
..
457
467
991739073.UG.FTS.B,
28.98%,
2/05/25
..
331
336
991739154.UG.FTS.B,
28.98%,
2/05/25
..
3,216
3,288
991739980.UG.FTS.B,
28.98%,
2/05/25
..
390
398
991740474.UG.FTS.B,
28.98%,
2/05/25
..
298
62
991742001.UG.FTS.B,
28.98%,
2/05/25
..
93
94
991742979.UG.FTS.B,
28.98%,
2/05/25
..
114
116
991743138.UG.FTS.B,
28.98%,
2/05/25
..
393
82
991743526.UG.FTS.B,
28.98%,
2/05/25
..
311
318
991744726.UG.FTS.B,
28.98%,
2/05/25
..
511
507
991745601.UG.FTS.B,
28.98%,
2/05/25
..
397
406
991745801.UG.FTS.B,
28.98%,
2/05/25
..
29
29
991746873.UG.FTS.B,
28.98%,
2/05/25
..
241
244
991747299.UG.FTS.B,
28.98%,
2/05/25
..
112
115
991747647.UG.FTS.B,
28.98%,
2/05/25
..
358
361
991749552.UG.FTS.B,
28.98%,
2/05/25
..
312
318
991750705.UG.FTS.B,
28.98%,
2/05/25
..
350
349
991751338.UG.FTS.B,
28.98%,
2/05/25
..
157
160
991753087.UG.FTS.B,
28.98%,
2/05/25
..
111
112
991755981.UG.FTS.B,
28.98%,
2/05/25
..
312
319
991759228.UG.FTS.B,
28.98%,
2/05/25
..
68
67
991759687.UG.FTS.B,
28.98%,
2/05/25
..
334
341
991761917.UG.FTS.B,
28.98%,
2/05/25
..
221
226
991762144.UG.FTS.B,
28.98%,
2/05/25
..
222
224
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991762262.UG.FTS.B,
28.98%,
2/05/25
..
$
307
$
312
991762452.UG.FTS.B,
28.98%,
2/05/25
..
17
17
991763374.UG.FTS.B,
28.98%,
2/05/25
..
751
486
991764086.UG.FTS.B,
28.98%,
2/05/25
..
98
100
991764533.UG.FTS.B,
28.98%,
2/05/25
..
41
40
991764922.UG.FTS.B,
28.98%,
2/05/25
..
177
181
991765246.UG.FTS.B,
28.98%,
2/05/25
..
25
25
991767840.UG.FTS.B,
28.98%,
2/05/25
..
8
8
991769018.UG.FTS.B,
28.98%,
2/05/25
..
367
376
991769355.UG.FTS.B,
28.98%,
2/05/25
..
33
34
991769429.UG.FTS.B,
28.98%,
2/05/25
..
113
116
991772451.UG.FTS.B,
28.98%,
2/05/25
..
1,165
1,190
991773886.UG.FTS.B,
28.98%,
2/05/25
..
1,361
1,358
991775304.UG.FTS.B,
28.98%,
2/05/25
..
3
3
991775732.UG.FTS.B,
28.98%,
2/05/25
..
808
825
991776821.UG.FTS.B,
28.98%,
2/05/25
..
128
131
991776933.UG.FTS.B,
28.98%,
2/05/25
..
395
402
991780458.UG.FTS.B,
28.98%,
2/05/25
..
504
499
991783383.UG.FTS.B,
28.98%,
2/05/25
..
1,942
1,984
991783771.UG.FTS.B,
28.98%,
2/05/25
..
1,208
1,234
991784786.UG.FTS.B,
28.98%,
2/05/25
..
84
85
991785271.UG.FTS.B,
28.98%,
2/05/25
..
25
25
991786930.UG.FTS.B,
28.98%,
2/05/25
..
14
14
991788735.UG.FTS.B,
28.98%,
2/05/25
..
518
529
991789109.UG.FTS.B,
28.98%,
2/05/25
..
351
359
991790367.UG.FTS.B,
28.98%,
2/05/25
..
1,684
1,713
991796763.UG.FTS.B,
28.98%,
2/05/25
..
82
82
991796983.UG.FTS.B,
28.98%,
2/05/25
..
44
44
991802238.UG.FTS.B,
28.98%,
2/05/25
..
573
585
991805668.UG.FTS.B,
28.98%,
2/05/25
..
160
164
991807068.UG.FTS.B,
28.98%,
2/05/25
..
413
421
991808450.UG.FTS.B,
28.98%,
2/05/25
..
165
168
991810934.UG.FTS.B,
28.98%,
2/05/25
..
2,422
2,474
991811477.UG.FTS.B,
28.98%,
2/05/25
..
969
990
991811999.UG.FTS.B,
28.98%,
2/05/25
..
9
8
991813874.UG.FTS.B,
28.98%,
2/05/25
..
162
166
991815656.UG.FTS.B,
28.98%,
2/05/25
..
43
43
991816597.UG.FTS.B,
28.98%,
2/05/25
..
16
16
991816630.UG.FTS.B,
28.98%,
2/05/25
..
7
7
991817503.UG.FTS.B,
28.98%,
2/05/25
..
84
83
991819745.UG.FTS.B,
28.98%,
2/05/25
..
87
89
991819751.UG.FTS.B,
28.98%,
2/05/25
..
817
827
991820191.UG.FTS.B,
28.98%,
2/05/25
..
106
108
991824261.UG.FTS.B,
28.98%,
2/05/25
..
49
50
991824415.UG.FTS.B,
28.98%,
2/05/25
..
963
967
991825331.UG.FTS.B,
28.98%,
2/05/25
..
100
102
991829108.UG.FTS.B,
28.98%,
2/05/25
..
845
853
991833246.UG.FTS.B,
28.98%,
2/05/25
..
483
494
991833444.UG.FTS.B,
28.98%,
2/05/25
..
338
341
991833938.UG.FTS.B,
28.98%,
2/05/25
..
121
122
991835118.UG.FTS.B,
28.98%,
2/05/25
..
4,123
4,184
991836188.UG.FTS.B,
28.98%,
2/05/25
..
241
243
991836325.UG.FTS.B,
28.98%,
2/05/25
..
758
762
991836344.UG.FTS.B,
28.98%,
2/05/25
..
212
212
991837760.UG.FTS.B,
28.98%,
2/05/25
..
622
638
991842297.UG.FTS.B,
28.98%,
2/05/25
..
126
128
991842364.UG.FTS.B,
28.98%,
2/05/25
..
1,539
1,562
991844958.UG.FTS.B,
28.98%,
2/05/25
..
962
971
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
156
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991848636.UG.FTS.B,
28.98%,
2/05/25
..
$
142
$
9
991851738.UG.FTS.B,
28.98%,
2/05/25
..
50
51
991853185.UG.FTS.B,
28.98%,
2/05/25
..
57
58
991853554.UG.FTS.B,
28.98%,
2/05/25
..
1,442
1,437
991853573.UG.FTS.B,
28.98%,
2/05/25
..
966
990
991853603.UG.FTS.B,
28.98%,
2/05/25
..
360
367
991854725.UG.FTS.B,
28.98%,
2/05/25
..
1,277
266
991855568.UG.FTS.B,
28.98%,
2/05/25
..
1,006
1,015
991855938.UG.FTS.B,
28.98%,
2/05/25
..
343
350
991857568.UG.FTS.B,
28.98%,
2/05/25
..
530
541
991857619.UG.FTS.B,
28.98%,
2/05/25
..
224
227
991863657.UG.FTS.B,
28.98%,
2/05/25
..
145
148
991865740.UG.FTS.B,
28.98%,
2/05/25
..
130
133
991868870.UG.FTS.B,
28.98%,
2/05/25
..
67
68
991879738.UG.FTS.B,
28.98%,
2/05/25
..
323
326
991881109.UG.FTS.B,
28.98%,
2/05/25
..
176
178
991884917.UG.FTS.B,
28.98%,
2/05/25
..
545
552
991886097.UG.FTS.B,
28.98%,
2/05/25
..
65
66
991886335.UG.FTS.B,
28.98%,
2/05/25
..
382
386
991886857.UG.FTS.B,
28.98%,
2/05/25
..
122
122
991889830.UG.FTS.B,
28.98%,
2/05/25
..
423
426
991893126.UG.FTS.B,
28.98%,
2/05/25
..
67
68
991893251.UG.FTS.B,
28.98%,
2/05/25
..
21
21
991894894.UG.FTS.B,
28.98%,
2/05/25
..
1,730
1,746
991897007.UG.FTS.B,
28.98%,
2/05/25
..
140
141
991897083.UG.FTS.B,
28.98%,
2/05/25
..
769
776
991900228.UG.FTS.B,
28.98%,
2/05/25
..
122
121
991900834.UG.FTS.B,
28.98%,
2/05/25
..
43
43
991901365.UG.FTS.B,
28.98%,
2/05/25
..
963
971
991903733.UG.FTS.B,
28.98%,
2/05/25
..
63
64
991908584.UG.FTS.B,
28.98%,
2/05/25
..
120
121
991910714.UG.FTS.B,
28.98%,
2/05/25
..
28
28
991911562.UG.FTS.B,
28.98%,
2/05/25
..
388
388
991913216.UG.FTS.B,
28.98%,
2/05/25
..
17
17
991914304.UG.FTS.B,
28.98%,
2/05/25
..
154
155
991914967.UG.FTS.B,
28.98%,
2/05/25
..
105
107
991916054.UG.FTS.B,
28.98%,
2/05/25
..
225
46
991916809.UG.FTS.B,
28.98%,
2/05/25
..
90
92
991918327.UG.FTS.B,
28.98%,
2/05/25
..
94
96
991918392.UG.FTS.B,
28.98%,
2/05/25
..
144
145
991921265.UG.FTS.B,
28.98%,
2/05/25
..
131
132
991922123.UG.FTS.B,
28.98%,
2/05/25
..
12
12
991922743.UG.FTS.B,
28.98%,
2/05/25
..
106
108
991927918.UG.FTS.B,
28.98%,
2/05/25
..
94
96
991935662.UG.FTS.B,
28.98%,
2/05/25
..
40
40
991937156.UG.FTS.B,
28.98%,
2/05/25
..
143
145
991937493.UG.FTS.B,
28.98%,
2/05/25
..
857
865
991937565.UG.FTS.B,
28.98%,
2/05/25
..
949
957
991938119.UG.FTS.B,
28.98%,
2/05/25
..
1,724
1,740
991681542.UG.FTS.B,
29.45%,
2/05/25
..
279
280
991857451.UG.FTS.B,
29.45%,
2/05/25
..
91
91
991896785.UG.FTS.B,
29.47%,
2/05/25
..
4,507
4,518
991692669.UG.FTS.B,
29.48%,
2/05/25
..
686
698
991701928.UG.FTS.B,
29.48%,
2/05/25
..
52
16
991770647.UG.FTS.B,
29.48%,
2/05/25
..
160
157
991680433.UG.FTS.B,
29.49%,
2/05/25
..
324
323
991693084.UG.FTS.B,
29.49%,
2/05/25
..
122
125
991693368.UG.FTS.B,
29.49%,
2/05/25
..
41
41
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991694002.UG.FTS.B,
29.49%,
2/05/25
..
$
111
$
111
991694063.UG.FTS.B,
29.49%,
2/05/25
..
44
45
991694154.UG.FTS.B,
29.49%,
2/05/25
..
1,182
1,188
991694654.UG.FTS.B,
29.49%,
2/05/25
..
15
15
991694848.UG.FTS.B,
29.49%,
2/05/25
..
1,473
1,498
991694938.UG.FTS.B,
29.49%,
2/05/25
..
25
25
991694983.UG.FTS.B,
29.49%,
2/05/25
..
91
92
991695320.UG.FTS.B,
29.49%,
2/05/25
..
114
116
991695570.UG.FTS.B,
29.49%,
2/05/25
..
564
568
991695596.UG.FTS.B,
29.49%,
2/05/25
..
75
19
991695648.UG.FTS.B,
29.49%,
2/05/25
..
205
208
991695683.UG.FTS.B,
29.49%,
2/05/25
..
15
15
991695684.UG.FTS.B,
29.49%,
2/05/25
..
458
457
991695911.UG.FTS.B,
29.49%,
2/05/25
..
55
54
991696008.UG.FTS.B,
29.49%,
2/05/25
..
54
54
991696026.UG.FTS.B,
29.49%,
2/05/25
..
36
36
991696109.UG.FTS.B,
29.49%,
2/05/25
..
76
77
991696191.UG.FTS.B,
29.49%,
2/05/25
..
121
121
991696894.UG.FTS.B,
29.49%,
2/05/25
..
30
31
991697114.UG.FTS.B,
29.49%,
2/05/25
..
244
249
991697129.UG.FTS.B,
29.49%,
2/05/25
..
403
396
991697214.UG.FTS.B,
29.49%,
2/05/25
..
200
205
991697402.UG.FTS.B,
29.49%,
2/05/25
..
270
275
991697674.UG.FTS.B,
29.49%,
2/05/25
..
33
33
991697838.UG.FTS.B,
29.49%,
2/05/25
..
101
69
991698261.UG.FTS.B,
29.49%,
2/05/25
..
1,944
1,977
991699635.UG.FTS.B,
29.49%,
2/05/25
..
96
94
991700073.UG.FTS.B,
29.49%,
2/05/25
..
259
265
991700153.UG.FTS.B,
29.49%,
2/05/25
..
533
545
991700408.UG.FTS.B,
29.49%,
2/05/25
..
214
218
991700616.UG.FTS.B,
29.49%,
2/05/25
..
541
133
991700758.UG.FTS.B,
29.49%,
2/05/25
..
426
297
991701153.UG.FTS.B,
29.49%,
2/05/25
..
39
39
991701975.UG.FTS.B,
29.49%,
2/05/25
..
236
236
991702103.UG.FTS.B,
29.49%,
2/05/25
..
271
275
991702149.UG.FTS.B,
29.49%,
2/05/25
..
370
376
991702168.UG.FTS.B,
29.49%,
2/05/25
..
49
48
991702306.UG.FTS.B,
29.49%,
2/05/25
..
100
101
991702693.UG.FTS.B,
29.49%,
2/05/25
..
153
156
991702737.UG.FTS.B,
29.49%,
2/05/25
..
129
132
991703134.UG.FTS.B,
29.49%,
2/05/25
..
128
127
991703611.UG.FTS.B,
29.49%,
2/05/25
..
146
148
991704018.UG.FTS.B,
29.49%,
2/05/25
..
35
35
991704269.UG.FTS.B,
29.49%,
2/05/25
..
155
154
991704279.UG.FTS.B,
29.49%,
2/05/25
..
0
0
991704411.UG.FTS.B,
29.49%,
2/05/25
..
1,352
1,338
991704434.UG.FTS.B,
29.49%,
2/05/25
..
28
28
991704532.UG.FTS.B,
29.49%,
2/05/25
..
382
389
991704974.UG.FTS.B,
29.49%,
2/05/25
..
221
220
991705010.UG.FTS.B,
29.49%,
2/05/25
..
1,386
1,410
991705084.UG.FTS.B,
29.49%,
2/05/25
..
104
105
991705304.UG.FTS.B,
29.49%,
2/05/25
..
1,792
1,763
991706770.UG.FTS.B,
29.49%,
2/05/25
..
187
191
991707286.UG.FTS.B,
29.49%,
2/05/25
..
80
81
991707576.UG.FTS.B,
29.49%,
2/05/25
..
116
119
991707666.UG.FTS.B,
29.49%,
2/05/25
..
91
92
991707844.UG.FTS.B,
29.49%,
2/05/25
..
317
320
991708468.UG.FTS.B,
29.49%,
2/05/25
..
554
569
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
157
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991708918.UG.FTS.B,
29.49%,
2/05/25
..
$
1,089
$
1,102
991709106.UG.FTS.B,
29.49%,
2/05/25
..
44
44
991709219.UG.FTS.B,
29.49%,
2/05/25
..
102
104
991709454.UG.FTS.B,
29.49%,
2/05/25
..
287
293
991710089.UG.FTS.B,
29.49%,
2/05/25
..
287
285
991710338.UG.FTS.B,
29.49%,
2/05/25
..
84
85
991710548.UG.FTS.B,
29.49%,
2/05/25
..
1,108
1,095
991710782.UG.FTS.B,
29.49%,
2/05/25
..
1,274
1,297
991711354.UG.FTS.B,
29.49%,
2/05/25
..
53
54
991711446.UG.FTS.B,
29.49%,
2/05/25
..
78
78
991711609.UG.FTS.B,
29.49%,
2/05/25
..
321
39
991712242.UG.FTS.B,
29.49%,
2/05/25
..
254
256
991713293.UG.FTS.B,
29.49%,
2/05/25
..
157
160
991713639.UG.FTS.B,
29.49%,
2/05/25
..
351
353
991713769.UG.FTS.B,
29.49%,
2/05/25
..
67
67
991714061.UG.FTS.B,
29.49%,
2/05/25
..
44
44
991714180.UG.FTS.B,
29.49%,
2/05/25
..
361
368
991714380.UG.FTS.B,
29.49%,
2/05/25
..
1,314
1,345
991714508.UG.FTS.B,
29.49%,
2/05/25
..
56
57
991714617.UG.FTS.B,
29.49%,
2/05/25
..
173
173
991714620.UG.FTS.B,
29.49%,
2/05/25
..
390
398
991715331.UG.FTS.B,
29.49%,
2/05/25
..
238
241
991715444.UG.FTS.B,
29.49%,
2/05/25
..
1,164
1,158
991715800.UG.FTS.B,
29.49%,
2/05/25
..
197
201
991716657.UG.FTS.B,
29.49%,
2/05/25
..
73
74
991717220.UG.FTS.B,
29.49%,
2/05/25
..
44
44
991717555.UG.FTS.B,
29.49%,
2/05/25
..
30
12
991718850.UG.FTS.B,
29.49%,
2/05/25
..
855
853
991719235.UG.FTS.B,
29.49%,
2/05/25
..
352
355
991719314.UG.FTS.B,
29.49%,
2/05/25
..
44
44
991719551.UG.FTS.B,
29.49%,
2/05/25
..
291
297
991720302.UG.FTS.B,
29.49%,
2/05/25
..
1,953
1,992
991722607.UG.FTS.B,
29.49%,
2/05/25
..
67
67
991722812.UG.FTS.B,
29.49%,
2/05/25
..
283
289
991722885.UG.FTS.B,
29.49%,
2/05/25
..
391
399
991723913.UG.FTS.B,
29.49%,
2/05/25
..
91
92
991723921.UG.FTS.B,
29.49%,
2/05/25
..
126
129
991724720.UG.FTS.B,
29.49%,
2/05/25
..
224
229
991724744.UG.FTS.B,
29.49%,
2/05/25
..
43
42
991725533.UG.FTS.B,
29.49%,
2/05/25
..
253
257
991725800.UG.FTS.B,
29.49%,
2/05/25
..
318
319
991726118.UG.FTS.B,
29.49%,
2/05/25
..
36
37
991727032.UG.FTS.B,
29.49%,
2/05/25
..
189
193
991727200.UG.FTS.B,
29.49%,
2/05/25
..
745
739
991727290.UG.FTS.B,
29.49%,
2/05/25
..
57
57
991727780.UG.FTS.B,
29.49%,
2/05/25
..
4
4
991728298.UG.FTS.B,
29.49%,
2/05/25
..
118
121
991728509.UG.FTS.B,
29.49%,
2/05/25
..
100
102
991729131.UG.FTS.B,
29.49%,
2/05/25
..
28
28
991730414.UG.FTS.B,
29.49%,
2/05/25
..
1,302
1,311
991731697.UG.FTS.B,
29.49%,
2/05/25
..
244
249
991732180.UG.FTS.B,
29.49%,
2/05/25
..
46
7
991732282.UG.FTS.B,
29.49%,
2/05/25
..
164
167
991732719.UG.FTS.B,
29.49%,
2/05/25
..
307
305
991732976.UG.FTS.B,
29.49%,
2/05/25
..
204
208
991733288.UG.FTS.B,
29.49%,
2/05/25
..
35
35
991733404.UG.FTS.B,
29.49%,
2/05/25
..
156
159
991733824.UG.FTS.B,
29.49%,
2/05/25
..
1,938
1,975
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991734685.UG.FTS.B,
29.49%,
2/05/25
..
$
169
$
167
991734893.UG.FTS.B,
29.49%,
2/05/25
..
7
7
991735885.UG.FTS.B,
29.49%,
2/05/25
..
1,035
1,043
991736873.UG.FTS.B,
29.49%,
2/05/25
..
541
544
991737308.UG.FTS.B,
29.49%,
2/05/25
..
509
508
991738913.UG.FTS.B,
29.49%,
2/05/25
..
54
55
991741465.UG.FTS.B,
29.49%,
2/05/25
..
133
136
991741813.UG.FTS.B,
29.49%,
2/05/25
..
115
117
991741984.UG.FTS.B,
29.49%,
2/05/25
..
384
392
991743309.UG.FTS.B,
29.49%,
2/05/25
..
295
190
991743763.UG.FTS.B,
29.49%,
2/05/25
..
221
227
991743811.UG.FTS.B,
29.49%,
2/05/25
..
119
121
991744524.UG.FTS.B,
29.49%,
2/05/25
..
232
234
991745068.UG.FTS.B,
29.49%,
2/05/25
..
6,847
6,994
991745294.UG.FTS.B,
29.49%,
2/05/25
..
169
172
991745434.UG.FTS.B,
29.49%,
2/05/25
..
78
79
991745495.UG.FTS.B,
29.49%,
2/05/25
..
95
96
991745512.UG.FTS.B,
29.49%,
2/05/25
..
43
3
991745604.UG.FTS.B,
29.49%,
2/05/25
..
150
147
991746165.UG.FTS.B,
29.49%,
2/05/25
..
285
290
991747315.UG.FTS.B,
29.49%,
2/05/25
..
4,117
4,137
991747390.UG.FTS.B,
29.49%,
2/05/25
..
26
25
991747447.UG.FTS.B,
29.49%,
2/05/25
..
749
765
991747616.UG.FTS.B,
29.49%,
2/05/25
..
57
16
991747772.UG.FTS.B,
29.49%,
2/05/25
..
481
475
991748176.UG.FTS.B,
29.49%,
2/05/25
..
149
151
991748448.UG.FTS.B,
29.49%,
2/05/25
..
1,438
1,446
991748911.UG.FTS.B,
29.49%,
2/05/25
..
600
75
991750763.UG.FTS.B,
29.49%,
2/05/25
..
381
389
991751122.UG.FTS.B,
29.49%,
2/05/25
..
385
393
991751856.UG.FTS.B,
29.49%,
2/05/25
..
80
81
991752282.UG.FTS.B,
29.49%,
2/05/25
..
379
384
991752383.UG.FTS.B,
29.49%,
2/05/25
..
193
197
991752972.UG.FTS.B,
29.49%,
2/05/25
..
22
22
991753004.UG.FTS.B,
29.49%,
2/05/25
..
299
201
991753363.UG.FTS.B,
29.49%,
2/05/25
..
43
43
991753604.UG.FTS.B,
29.49%,
2/05/25
..
328
334
991754108.UG.FTS.B,
29.49%,
2/05/25
..
165
167
991754505.UG.FTS.B,
29.49%,
2/05/25
..
75
76
991754738.UG.FTS.B,
29.49%,
2/05/25
..
1,508
1,535
991755735.UG.FTS.B,
29.49%,
2/05/25
..
848
845
991756003.UG.FTS.B,
29.49%,
2/05/25
..
307
313
991756132.UG.FTS.B,
29.49%,
2/05/25
..
183
187
991756904.UG.FTS.B,
29.49%,
2/05/25
..
72
73
991757074.UG.FTS.B,
29.49%,
2/05/25
..
132
134
991757175.UG.FTS.B,
29.49%,
2/05/25
..
10
10
991757533.UG.FTS.B,
29.49%,
2/05/25
..
193
196
991758179.UG.FTS.B,
29.49%,
2/05/25
..
42
3
991758876.UG.FTS.B,
29.49%,
2/05/25
..
414
423
991759609.UG.FTS.B,
29.49%,
2/05/25
..
30
31
991761070.UG.FTS.B,
29.49%,
2/05/25
..
21
22
991761533.UG.FTS.B,
29.49%,
2/05/25
..
619
613
991766625.UG.FTS.B,
29.49%,
2/05/25
..
205
209
991767013.UG.FTS.B,
29.49%,
2/05/25
..
175
179
991768291.UG.FTS.B,
29.49%,
2/05/25
..
136
138
991768347.UG.FTS.B,
29.49%,
2/05/25
..
26
26
991769834.UG.FTS.B,
29.49%,
2/05/25
..
439
434
991770008.UG.FTS.B,
29.49%,
2/05/25
..
141
142
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
158
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991770185.UG.FTS.B,
29.49%,
2/05/25
..
$
159
$
161
991770513.UG.FTS.B,
29.49%,
2/05/25
..
117
119
991770583.UG.FTS.B,
29.49%,
2/05/25
..
756
770
991774684.UG.FTS.B,
29.49%,
2/05/25
..
124
121
991775351.UG.FTS.B,
29.49%,
2/05/25
..
871
889
991777615.UG.FTS.B,
29.49%,
2/05/25
..
349
347
991778245.UG.FTS.B,
29.49%,
2/05/25
..
29
29
991779274.UG.FTS.B,
29.49%,
2/05/25
..
71
72
991779367.UG.FTS.B,
29.49%,
2/05/25
..
487
496
991779678.UG.FTS.B,
29.49%,
2/05/25
..
182
186
991780013.UG.FTS.B,
29.49%,
2/05/25
..
14
13
991781231.UG.FTS.B,
29.49%,
2/05/25
..
56
56
991781254.UG.FTS.B,
29.49%,
2/05/25
..
88
89
991781338.UG.FTS.B,
29.49%,
2/05/25
..
1,130
1,151
991781343.UG.FTS.B,
29.49%,
2/05/25
..
68
69
991781377.UG.FTS.B,
29.49%,
2/05/25
..
725
720
991781816.UG.FTS.B,
29.49%,
2/05/25
..
2
2
991783476.UG.FTS.B,
29.49%,
2/05/25
..
1,745
1,772
991783713.UG.FTS.B,
29.49%,
2/05/25
..
484
494
991786645.UG.FTS.B,
29.49%,
2/05/25
..
1,101
1,122
991786827.UG.FTS.B,
29.49%,
2/05/25
..
101
22
991787593.UG.FTS.B,
29.49%,
2/05/25
..
2,667
2,709
991788436.UG.FTS.B,
29.49%,
2/05/25
..
6
6
991788833.UG.FTS.B,
29.49%,
2/05/25
..
456
465
991789450.UG.FTS.B,
29.49%,
2/05/25
..
10
10
991790182.UG.FTS.B,
29.49%,
2/05/25
..
142
144
991791010.UG.FTS.B,
29.49%,
2/05/25
..
14
14
991791466.UG.FTS.B,
29.49%,
2/05/25
..
16
16
991792046.UG.FTS.B,
29.49%,
2/05/25
..
101
103
991792427.UG.FTS.B,
29.49%,
2/05/25
..
291
297
991793437.UG.FTS.B,
29.49%,
2/05/25
..
582
594
991794941.UG.FTS.B,
29.49%,
2/05/25
..
49
49
991795036.UG.FTS.B,
29.49%,
2/05/25
..
197
194
991795791.UG.FTS.B,
29.49%,
2/05/25
..
80
81
991796894.UG.FTS.B,
29.49%,
2/05/25
..
817
833
991797889.UG.FTS.B,
29.49%,
2/05/25
..
14
7
991798321.UG.FTS.B,
29.49%,
2/05/25
..
956
631
991800020.UG.FTS.B,
29.49%,
2/05/25
..
191
195
991800122.UG.FTS.B,
29.49%,
2/05/25
..
5
5
991805103.UG.FTS.B,
29.49%,
2/05/25
..
150
153
991805106.UG.FTS.B,
29.49%,
2/05/25
..
481
485
991808492.UG.FTS.B,
29.49%,
2/05/25
..
284
287
991810808.UG.FTS.B,
29.49%,
2/05/25
..
388
396
991811197.UG.FTS.B,
29.49%,
2/05/25
..
329
331
991811424.UG.FTS.B,
29.49%,
2/05/25
..
733
739
991812577.UG.FTS.B,
29.49%,
2/05/25
..
163
167
991812942.UG.FTS.B,
29.49%,
2/05/25
..
73
74
991813031.UG.FTS.B,
29.49%,
2/05/25
..
19
19
991813904.UG.FTS.B,
29.49%,
2/05/25
..
26
26
991814320.UG.FTS.B,
29.49%,
2/05/25
..
435
444
991814652.UG.FTS.B,
29.49%,
2/05/25
..
107
109
991814933.UG.FTS.B,
29.49%,
2/05/25
..
210
211
991815312.UG.FTS.B,
29.49%,
2/05/25
..
328
335
991815686.UG.FTS.B,
29.49%,
2/05/25
..
157
160
991816202.UG.FTS.B,
29.49%,
2/05/25
..
49
50
991817091.UG.FTS.B,
29.49%,
2/05/25
..
68
69
991817172.UG.FTS.B,
29.49%,
2/05/25
..
16
16
991819334.UG.FTS.B,
29.49%,
2/05/25
..
472
483
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991819739.UG.FTS.B,
29.49%,
2/05/25
..
$
1,185
$
1,209
991819909.UG.FTS.B,
29.49%,
2/05/25
..
77
78
991820737.UG.FTS.B,
29.49%,
2/05/25
..
249
249
991820976.UG.FTS.B,
29.49%,
2/05/25
..
561
569
991822456.UG.FTS.B,
29.49%,
2/05/25
..
110
77
991823481.UG.FTS.B,
29.49%,
2/05/25
..
192
196
991826495.UG.FTS.B,
29.49%,
2/05/25
..
85
85
991826970.UG.FTS.B,
29.49%,
2/05/25
..
35
36
991827783.UG.FTS.B,
29.49%,
2/05/25
..
118
118
991829299.UG.FTS.B,
29.49%,
2/05/25
..
55
55
991830265.UG.FTS.B,
29.49%,
2/05/25
..
29
29
991831731.UG.FTS.B,
29.49%,
2/05/25
..
261
263
991834388.UG.FTS.B,
29.49%,
2/05/25
..
281
286
991834538.UG.FTS.B,
29.49%,
2/05/25
..
290
294
991839936.UG.FTS.B,
29.49%,
2/05/25
..
507
498
991841623.UG.FTS.B,
29.49%,
2/05/25
..
982
999
991841707.UG.FTS.B,
29.49%,
2/05/25
..
30
30
991842723.UG.FTS.B,
29.49%,
2/05/25
..
171
174
991844850.UG.FTS.B,
29.49%,
2/05/25
..
144
147
991845675.UG.FTS.B,
29.49%,
2/05/25
..
162
164
991847860.UG.FTS.B,
29.49%,
2/05/25
..
196
196
991848236.UG.FTS.B,
29.49%,
2/05/25
..
374
47
991850751.UG.FTS.B,
29.49%,
2/05/25
..
277
282
991853314.UG.FTS.B,
29.49%,
2/05/25
..
164
164
991856960.UG.FTS.B,
29.49%,
2/05/25
..
46
46
991857355.UG.FTS.B,
29.49%,
2/05/25
..
139
142
991857557.UG.FTS.B,
29.49%,
2/05/25
..
127
129
991857721.UG.FTS.B,
29.49%,
2/05/25
..
111
8
991857915.UG.FTS.B,
29.49%,
2/05/25
..
540
542
991859078.UG.FTS.B,
29.49%,
2/05/25
..
9
9
991860099.UG.FTS.B,
29.49%,
2/05/25
..
164
161
991860989.UG.FTS.B,
29.49%,
2/05/25
..
97
22
991862114.UG.FTS.B,
29.49%,
2/05/25
..
46
15
991862214.UG.FTS.B,
29.49%,
2/05/25
..
72
73
991863815.UG.FTS.B,
29.49%,
2/05/25
..
295
62
991865130.UG.FTS.B,
29.49%,
2/05/25
..
749
755
991865694.UG.FTS.B,
29.49%,
2/05/25
..
193
196
991871757.UG.FTS.B,
29.49%,
2/05/25
..
202
198
991872236.UG.FTS.B,
29.49%,
2/05/25
..
310
316
991872516.UG.FTS.B,
29.49%,
2/05/25
..
53
54
991872591.UG.FTS.B,
29.49%,
2/05/25
..
231
233
991873339.UG.FTS.B,
29.49%,
2/05/25
..
74
75
991875302.UG.FTS.B,
29.49%,
2/05/25
..
140
141
991880803.UG.FTS.B,
29.49%,
2/05/25
..
90
91
991883281.UG.FTS.B,
29.49%,
2/05/25
..
183
183
991883714.UG.FTS.B,
29.49%,
2/05/25
..
43
43
991884966.UG.FTS.B,
29.49%,
2/05/25
..
321
322
991887118.UG.FTS.B,
29.49%,
2/05/25
..
22
9
991887195.UG.FTS.B,
29.49%,
2/05/25
..
113
112
991891596.UG.FTS.B,
29.49%,
2/05/25
..
73
74
991891839.UG.FTS.B,
29.49%,
2/05/25
..
20
20
991892017.UG.FTS.B,
29.49%,
2/05/25
..
22
22
991896775.UG.FTS.B,
29.49%,
2/05/25
..
143
143
991897943.UG.FTS.B,
29.49%,
2/05/25
..
192
192
991898216.UG.FTS.B,
29.49%,
2/05/25
..
294
61
991898315.UG.FTS.B,
29.49%,
2/05/25
..
288
291
991899621.UG.FTS.B,
29.49%,
2/05/25
..
127
82
991900161.UG.FTS.B,
29.49%,
2/05/25
..
60
60
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
159
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991900261.UG.FTS.B,
29.49%,
2/05/25
..
$
216
$
216
991901118.UG.FTS.B,
29.49%,
2/05/25
..
23
23
991902380.UG.FTS.B,
29.49%,
2/05/25
..
63
64
991902591.UG.FTS.B,
29.49%,
2/05/25
..
444
445
991904220.UG.FTS.B,
29.49%,
2/05/25
..
37
37
991906360.UG.FTS.B,
29.49%,
2/05/25
..
197
199
991906894.UG.FTS.B,
29.49%,
2/05/25
..
336
336
991907497.UG.FTS.B,
29.49%,
2/05/25
..
720
726
991907892.UG.FTS.B,
29.49%,
2/05/25
..
324
324
991908115.UG.FTS.B,
29.49%,
2/05/25
..
94
96
991908155.UG.FTS.B,
29.49%,
2/05/25
..
327
326
991908665.UG.FTS.B,
29.49%,
2/05/25
..
336
336
991909242.UG.FTS.B,
29.49%,
2/05/25
..
50
50
991910346.UG.FTS.B,
29.49%,
2/05/25
..
158
156
991915996.UG.FTS.B,
29.49%,
2/05/25
..
24
24
991917308.UG.FTS.B,
29.49%,
2/05/25
..
288
288
991917746.UG.FTS.B,
29.49%,
2/05/25
..
179
179
991918114.UG.FTS.B,
29.49%,
2/05/25
..
768
774
991919187.UG.FTS.B,
29.49%,
2/05/25
..
281
283
991920123.UG.FTS.B,
29.49%,
2/05/25
..
65
66
991920849.UG.FTS.B,
29.49%,
2/05/25
..
214
137
991921228.UG.FTS.B,
29.49%,
2/05/25
..
94
96
991923291.UG.FTS.B,
29.49%,
2/05/25
..
67
68
991923888.UG.FTS.B,
29.49%,
2/05/25
..
43
43
991924046.UG.FTS.B,
29.49%,
2/05/25
..
33
33
991924454.UG.FTS.B,
29.49%,
2/05/25
..
26
26
991925238.UG.FTS.B,
29.49%,
2/05/25
..
111
110
991925421.UG.FTS.B,
29.49%,
2/05/25
..
123
121
991927325.UG.FTS.B,
29.49%,
2/05/25
..
42
42
991929728.UG.FTS.B,
29.49%,
2/05/25
..
780
787
991931394.UG.FTS.B,
29.49%,
2/05/25
..
235
236
991934337.UG.FTS.B,
29.49%,
2/05/25
..
87
88
991936527.UG.FTS.B,
29.49%,
2/05/25
..
43
44
991937008.UG.FTS.B,
29.49%,
2/05/25
..
3,540
3,486
991937053.UG.FTS.B,
29.49%,
2/05/25
..
479
482
991937470.UG.FTS.B,
29.49%,
2/05/25
..
94
95
991938113.UG.FTS.B,
29.49%,
2/05/25
..
479
483
991692513.UG.FTS.B,
29.99%,
2/05/25
..
2,165
2,175
991822957.UG.FTS.B,
14%,
2/06/25
.....
620
637
991945741.UG.FTS.B,
15.97%,
2/06/25
..
558
570
991941061.UG.FTS.B,
17.99%,
2/06/25
..
477
486
991700171.UG.FTS.B,
18.97%,
2/06/25
..
697
715
991705387.UG.FTS.B,
18.97%,
2/06/25
..
3,974
4,079
991710536.UG.FTS.B,
18.97%,
2/06/25
..
855
878
991762048.UG.FTS.B,
18.97%,
2/06/25
..
192
197
991789990.UG.FTS.B,
18.97%,
2/06/25
..
815
837
991810503.UG.FTS.B,
18.97%,
2/06/25
..
1,442
1,480
991811958.UG.FTS.B,
18.97%,
2/06/25
..
18
18
991873192.UG.FTS.B,
18.97%,
2/06/25
..
155
159
991699734.UG.FTS.B,
19.21%,
2/06/25
..
343
352
991716319.UG.FTS.B,
19.21%,
2/06/25
..
660
678
991786750.UG.FTS.B,
19.21%,
2/06/25
..
252
258
991820502.UG.FTS.B,
19.21%,
2/06/25
..
84
84
991854466.UG.FTS.B,
19.21%,
2/06/25
..
480
492
991883800.UG.FTS.B,
19.21%,
2/06/25
..
1,382
1,407
991924133.UG.FTS.B,
19.21%,
2/06/25
..
88
90
991701533.UG.FTS.B,
19.8%,
2/06/25
...
384
394
991710752.UG.FTS.B,
19.8%,
2/06/25
...
525
538
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991721799.UG.FTS.B,
19.8%,
2/06/25
...
$
1,346
$
1,364
991723663.UG.FTS.B,
19.8%,
2/06/25
...
1,035
1,061
991724397.UG.FTS.B,
19.8%,
2/06/25
...
139
140
991724990.UG.FTS.B,
19.8%,
2/06/25
...
180
184
991725148.UG.FTS.B,
19.8%,
2/06/25
...
103
106
991734064.UG.FTS.B,
19.8%,
2/06/25
...
3,008
1,861
991754615.UG.FTS.B,
19.8%,
2/06/25
...
16
16
991689655.UG.FTS.B,
19.99%,
2/06/25
..
1,405
1,434
991698898.UG.FTS.B,
19.99%,
2/06/25
..
1,861
1,901
991701103.UG.FTS.B,
19.99%,
2/06/25
..
197
14
991701760.UG.FTS.B,
19.99%,
2/06/25
..
94
96
991708325.UG.FTS.B,
19.99%,
2/06/25
..
73
72
991709462.UG.FTS.B,
19.99%,
2/06/25
..
27
27
991710118.UG.FTS.B,
19.99%,
2/06/25
..
499
36
991711306.UG.FTS.B,
19.99%,
2/06/25
..
116
118
991716026.UG.FTS.B,
19.99%,
2/06/25
..
43
37
991719166.UG.FTS.B,
19.99%,
2/06/25
..
1,985
2,011
991725114.UG.FTS.B,
19.99%,
2/06/25
..
473
483
991725688.UG.FTS.B,
19.99%,
2/06/25
..
75
76
991742036.UG.FTS.B,
19.99%,
2/06/25
..
243
240
991743474.UG.FTS.B,
19.99%,
2/06/25
..
1,887
1,912
991747737.UG.FTS.B,
19.99%,
2/06/25
..
605
43
991748014.UG.FTS.B,
19.99%,
2/06/25
..
101
100
991752021.UG.FTS.B,
19.99%,
2/06/25
..
419
428
991755348.UG.FTS.B,
19.99%,
2/06/25
..
145
148
991767533.UG.FTS.B,
19.99%,
2/06/25
..
119
121
991780291.UG.FTS.B,
19.99%,
2/06/25
..
4
3
991802156.UG.FTS.B,
19.99%,
2/06/25
..
963
984
991853035.UG.FTS.B,
19.99%,
2/06/25
..
531
531
991883651.UG.FTS.B,
19.99%,
2/06/25
..
24
24
991919722.UG.FTS.B,
19.99%,
2/06/25
..
72
73
991938218.UG.FTS.B,
19.99%,
2/06/25
..
860
868
991710953.UG.FTS.B,
20.46%,
2/06/25
..
182
186
991712370.UG.FTS.B,
20.46%,
2/06/25
..
160
164
991713629.UG.FTS.B,
20.46%,
2/06/25
..
2,821
2,891
991714002.UG.FTS.B,
20.46%,
2/06/25
..
1,002
1,027
991720350.UG.FTS.B,
20.46%,
2/06/25
..
290
298
991721249.UG.FTS.B,
20.46%,
2/06/25
..
242
248
991754233.UG.FTS.B,
20.46%,
2/06/25
..
236
241
991784049.UG.FTS.B,
20.46%,
2/06/25
..
9,643
9,880
991788979.UG.FTS.B,
20.46%,
2/06/25
..
6
6
991801256.UG.FTS.B,
20.46%,
2/06/25
..
578
592
991829259.UG.FTS.B,
20.46%,
2/06/25
..
249
255
991855217.UG.FTS.B,
20.46%,
2/06/25
..
1,847
1,892
991863415.UG.FTS.B,
20.46%,
2/06/25
..
1,055
1,081
991879525.UG.FTS.B,
20.46%,
2/06/25
..
72
73
991915062.UG.FTS.B,
20.46%,
2/06/25
..
230
233
991718934.UG.FTS.B,
20.97%,
2/06/25
..
389
400
991896452.UG.FTS.B,
20.97%,
2/06/25
..
1,915
1,943
991918010.UG.FTS.B,
20.97%,
2/06/25
..
92
94
991699332.UG.FTS.B,
21.46%,
2/06/25
..
1,327
1,357
991714495.UG.FTS.B,
21.46%,
2/06/25
..
138
141
991728603.UG.FTS.B,
21.46%,
2/06/25
..
62
64
991746397.UG.FTS.B,
21.46%,
2/06/25
..
287
288
991751167.UG.FTS.B,
21.46%,
2/06/25
..
61
62
991804022.UG.FTS.B,
21.46%,
2/06/25
..
670
673
991820455.UG.FTS.B,
21.46%,
2/06/25
..
466
476
991860678.UG.FTS.B,
21.46%,
2/06/25
..
162
165
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
160
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991907835.UG.FTS.B,
21.46%,
2/06/25
..
$
421
$
426
991907895.UG.FTS.B,
21.97%,
2/06/25
..
7,187
7,300
991726288.UG.FTS.B,
21.98%,
2/06/25
..
248
254
991741410.UG.FTS.B,
21.98%,
2/06/25
..
416
424
991773383.UG.FTS.B,
21.98%,
2/06/25
..
722
738
991792953.UG.FTS.B,
21.98%,
2/06/25
..
4,853
4,985
991807809.UG.FTS.B,
21.98%,
2/06/25
..
3,671
3,701
991845918.UG.FTS.B,
21.98%,
2/06/25
..
477
480
991869067.UG.FTS.B,
21.98%,
2/06/25
..
979
1,001
991922957.UG.FTS.B,
21.98%,
2/06/25
..
288
291
991793250.UG.FTS.B,
22.95%,
2/06/25
..
509
100
991713412.UG.FTS.B,
22.97%,
2/06/25
..
76
77
991730286.UG.FTS.B,
22.97%,
2/06/25
..
4,833
4,938
991768595.UG.FTS.B,
22.97%,
2/06/25
..
102
104
991871370.UG.FTS.B,
22.97%,
2/06/25
..
7,925
8,093
991897550.UG.FTS.B,
22.97%,
2/06/25
..
1,198
1,211
991927310.UG.FTS.B,
22.97%,
2/06/25
..
83
85
991740335.UG.FTS.B,
23.95%,
2/06/25
..
1,223
1,246
991769602.UG.FTS.B,
23.95%,
2/06/25
..
1,440
1,468
991773651.UG.FTS.B,
23.95%,
2/06/25
..
726
741
991793223.UG.FTS.B,
23.95%,
2/06/25
..
777
784
991916415.UG.FTS.B,
23.95%,
2/06/25
..
54
55
991936216.UG.FTS.B,
23.95%,
2/06/25
..
99
100
991700777.UG.FTS.B,
24.95%,
2/06/25
..
31
2
991892879.UG.FTS.B,
25.94%,
2/06/25
..
75
76
991921415.UG.FTS.B,
25.95%,
2/06/25
..
17
17
991699886.UG.FTS.B,
26.94%,
2/06/25
..
340
346
991832916.UG.FTS.B,
26.94%,
2/06/25
..
700
458
991704319.UG.FTS.B,
27.95%,
2/06/25
..
2
2
991733615.UG.FTS.B,
27.95%,
2/06/25
..
1,822
1,861
991690190.UG.FTS.B,
27.99%,
2/06/25
..
2,933
3,008
991703334.UG.FTS.B,
27.99%,
2/06/25
..
454
464
991714465.UG.FTS.B,
27.99%,
2/06/25
..
49
49
991759445.UG.FTS.B,
27.99%,
2/06/25
..
323
329
991765902.UG.FTS.B,
27.99%,
2/06/25
..
1,013
1,034
991803764.UG.FTS.B,
27.99%,
2/06/25
..
9
9
991830443.UG.FTS.B,
27.99%,
2/06/25
..
169
172
991842368.UG.FTS.B,
27.99%,
2/06/25
..
279
180
991851167.UG.FTS.B,
27.99%,
2/06/25
..
95
96
991691439.UG.FTS.B,
28.98%,
2/06/25
..
1,406
1,409
991691947.UG.FTS.B,
28.98%,
2/06/25
..
1,996
1,288
991698769.UG.FTS.B,
28.98%,
2/06/25
..
1,200
1,227
991699324.UG.FTS.B,
28.98%,
2/06/25
..
91
90
991699864.UG.FTS.B,
28.98%,
2/06/25
..
2,516
2,571
991699874.UG.FTS.B,
28.98%,
2/06/25
..
38
38
991700105.UG.FTS.B,
28.98%,
2/06/25
..
136
139
991700313.UG.FTS.B,
28.98%,
2/06/25
..
185
189
991700622.UG.FTS.B,
28.98%,
2/06/25
..
243
248
991700935.UG.FTS.B,
28.98%,
2/06/25
..
23
2
991701200.UG.FTS.B,
28.98%,
2/06/25
..
125
128
991701698.UG.FTS.B,
28.98%,
2/06/25
..
350
351
991701880.UG.FTS.B,
28.98%,
2/06/25
..
310
316
991702034.UG.FTS.B,
28.98%,
2/06/25
..
99
98
991702178.UG.FTS.B,
28.98%,
2/06/25
..
132
135
991702303.UG.FTS.B,
28.98%,
2/06/25
..
706
709
991702951.UG.FTS.B,
28.98%,
2/06/25
..
3,722
3,805
991703127.UG.FTS.B,
28.98%,
2/06/25
..
668
682
991703634.UG.FTS.B,
28.98%,
2/06/25
..
383
390
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991704099.UG.FTS.B,
28.98%,
2/06/25
..
$
314
$
322
991704380.UG.FTS.B,
28.98%,
2/06/25
..
890
910
991704892.UG.FTS.B,
28.98%,
2/06/25
..
147
150
991705083.UG.FTS.B,
28.98%,
2/06/25
..
130
133
991705630.UG.FTS.B,
28.98%,
2/06/25
..
41
41
991705923.UG.FTS.B,
28.98%,
2/06/25
..
303
309
991705947.UG.FTS.B,
28.98%,
2/06/25
..
51
43
991706049.UG.FTS.B,
28.98%,
2/06/25
..
233
234
991706436.UG.FTS.B,
28.98%,
2/06/25
..
52
53
991706891.UG.FTS.B,
28.98%,
2/06/25
..
113
116
991707488.UG.FTS.B,
28.98%,
2/06/25
..
1,340
1,369
991707490.UG.FTS.B,
28.98%,
2/06/25
..
352
359
991707890.UG.FTS.B,
28.98%,
2/06/25
..
104
106
991707982.UG.FTS.B,
28.98%,
2/06/25
..
116
8
991708571.UG.FTS.B,
28.98%,
2/06/25
..
309
316
991708764.UG.FTS.B,
28.98%,
2/06/25
..
39
3
991709000.UG.FTS.B,
28.98%,
2/06/25
..
272
278
991709010.UG.FTS.B,
28.98%,
2/06/25
..
664
678
991709238.UG.FTS.B,
28.98%,
2/06/25
..
217
222
991710098.UG.FTS.B,
28.98%,
2/06/25
..
151
154
991710180.UG.FTS.B,
28.98%,
2/06/25
..
288
291
991710683.UG.FTS.B,
28.98%,
2/06/25
..
42
42
991710809.UG.FTS.B,
28.98%,
2/06/25
..
23
23
991711651.UG.FTS.B,
28.98%,
2/06/25
..
160
164
991711745.UG.FTS.B,
28.98%,
2/06/25
..
206
211
991712375.UG.FTS.B,
28.98%,
2/06/25
..
343
347
991712875.UG.FTS.B,
28.98%,
2/06/25
..
106
108
991713622.UG.FTS.B,
28.98%,
2/06/25
..
300
307
991713874.UG.FTS.B,
28.98%,
2/06/25
..
55
16
991715031.UG.FTS.B,
28.98%,
2/06/25
..
88
90
991715578.UG.FTS.B,
28.98%,
2/06/25
..
104
71
991715996.UG.FTS.B,
28.98%,
2/06/25
..
21
21
991716099.UG.FTS.B,
28.98%,
2/06/25
..
163
162
991716198.UG.FTS.B,
28.98%,
2/06/25
..
80
79
991716238.UG.FTS.B,
28.98%,
2/06/25
..
229
235
991716642.UG.FTS.B,
28.98%,
2/06/25
..
79
80
991717052.UG.FTS.B,
28.98%,
2/06/25
..
613
627
991717387.UG.FTS.B,
28.98%,
2/06/25
..
21
21
991718117.UG.FTS.B,
28.98%,
2/06/25
..
2,000
240
991718507.UG.FTS.B,
28.98%,
2/06/25
..
284
291
991718999.UG.FTS.B,
28.98%,
2/06/25
..
318
315
991719099.UG.FTS.B,
28.98%,
2/06/25
..
1,417
1,445
991720359.UG.FTS.B,
28.98%,
2/06/25
..
138
141
991722130.UG.FTS.B,
28.98%,
2/06/25
..
488
499
991722251.UG.FTS.B,
28.98%,
2/06/25
..
488
499
991723057.UG.FTS.B,
28.98%,
2/06/25
..
1,760
1,805
991723854.UG.FTS.B,
28.98%,
2/06/25
..
2,087
2,094
991724096.UG.FTS.B,
28.98%,
2/06/25
..
232
237
991725784.UG.FTS.B,
28.98%,
2/06/25
..
206
210
991725860.UG.FTS.B,
28.98%,
2/06/25
..
112
114
991726289.UG.FTS.B,
28.98%,
2/06/25
..
161
164
991726688.UG.FTS.B,
28.98%,
2/06/25
..
121
124
991728368.UG.FTS.B,
28.98%,
2/06/25
..
135
138
991728905.UG.FTS.B,
28.98%,
2/06/25
..
747
746
991728916.UG.FTS.B,
28.98%,
2/06/25
..
210
213
991729001.UG.FTS.B,
28.98%,
2/06/25
..
100
102
991729192.UG.FTS.B,
28.98%,
2/06/25
..
813
830
991729499.UG.FTS.B,
28.98%,
2/06/25
..
114
117
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
161
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991729721.UG.FTS.B,
28.98%,
2/06/25
..
$
490
$
495
991731064.UG.FTS.B,
28.98%,
2/06/25
..
166
170
991731987.UG.FTS.B,
28.98%,
2/06/25
..
388
392
991732224.UG.FTS.B,
28.98%,
2/06/25
..
1,363
1,367
991733686.UG.FTS.B,
28.98%,
2/06/25
..
230
235
991734751.UG.FTS.B,
28.98%,
2/06/25
..
1,398
1,417
991734815.UG.FTS.B,
28.98%,
2/06/25
..
287
293
991735985.UG.FTS.B,
28.98%,
2/06/25
..
2,225
2,273
991736387.UG.FTS.B,
28.98%,
2/06/25
..
159
159
991736719.UG.FTS.B,
28.98%,
2/06/25
..
294
20
991736995.UG.FTS.B,
28.98%,
2/06/25
..
113
116
991737065.UG.FTS.B,
28.98%,
2/06/25
..
260
265
991737546.UG.FTS.B,
28.98%,
2/06/25
..
560
567
991738197.UG.FTS.B,
28.98%,
2/06/25
..
123
123
991738225.UG.FTS.B,
28.98%,
2/06/25
..
207
134
991739880.UG.FTS.B,
28.98%,
2/06/25
..
195
200
991740319.UG.FTS.B,
28.98%,
2/06/25
..
678
696
991740410.UG.FTS.B,
28.98%,
2/06/25
..
195
199
991741472.UG.FTS.B,
28.98%,
2/06/25
..
267
272
991742233.UG.FTS.B,
28.98%,
2/06/25
..
20
20
991742281.UG.FTS.B,
28.98%,
2/06/25
..
266
268
991742629.UG.FTS.B,
28.98%,
2/06/25
..
1,184
248
991743323.UG.FTS.B,
28.98%,
2/06/25
..
168
172
991743445.UG.FTS.B,
28.98%,
2/06/25
..
261
267
991743488.UG.FTS.B,
28.98%,
2/06/25
..
0
0
991744380.UG.FTS.B,
28.98%,
2/06/25
..
551
548
991744500.UG.FTS.B,
28.98%,
2/06/25
..
107
108
991745127.UG.FTS.B,
28.98%,
2/06/25
..
51
50
991745719.UG.FTS.B,
28.98%,
2/06/25
..
360
368
991746697.UG.FTS.B,
28.98%,
2/06/25
..
1,328
1,357
991748713.UG.FTS.B,
28.98%,
2/06/25
..
2,735
2,796
991749171.UG.FTS.B,
28.98%,
2/06/25
..
1,602
1,624
991750190.UG.FTS.B,
28.98%,
2/06/25
..
1,637
1,616
991750900.UG.FTS.B,
28.98%,
2/06/25
..
55
45
991751750.UG.FTS.B,
28.98%,
2/06/25
..
336
338
991752424.UG.FTS.B,
28.98%,
2/06/25
..
162
165
991752920.UG.FTS.B,
28.98%,
2/06/25
..
77
77
991753253.UG.FTS.B,
28.98%,
2/06/25
..
387
396
991753935.UG.FTS.B,
28.98%,
2/06/25
..
703
709
991754437.UG.FTS.B,
28.98%,
2/06/25
..
364
372
991755479.UG.FTS.B,
28.98%,
2/06/25
..
406
415
991756671.UG.FTS.B,
28.98%,
2/06/25
..
1,589
1,598
991756880.UG.FTS.B,
28.98%,
2/06/25
..
2,097
2,107
991756884.UG.FTS.B,
28.98%,
2/06/25
..
346
353
991757545.UG.FTS.B,
28.98%,
2/06/25
..
203
208
991758045.UG.FTS.B,
28.98%,
2/06/25
..
810
828
991758100.UG.FTS.B,
28.98%,
2/06/25
..
89
91
991760146.UG.FTS.B,
28.98%,
2/06/25
..
74
76
991760751.UG.FTS.B,
28.98%,
2/06/25
..
35
35
991762162.UG.FTS.B,
28.98%,
2/06/25
..
316
324
991762368.UG.FTS.B,
28.98%,
2/06/25
..
360
367
991763442.UG.FTS.B,
28.98%,
2/06/25
..
65
66
991764629.UG.FTS.B,
28.98%,
2/06/25
..
71
72
991765550.UG.FTS.B,
28.98%,
2/06/25
..
22
22
991765700.UG.FTS.B,
28.98%,
2/06/25
..
151
155
991766105.UG.FTS.B,
28.98%,
2/06/25
..
543
555
991766220.UG.FTS.B,
28.98%,
2/06/25
..
42
6
991766305.UG.FTS.B,
28.98%,
2/06/25
..
532
544
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991766721.UG.FTS.B,
28.98%,
2/06/25
..
$
1,291
$
1,319
991769774.UG.FTS.B,
28.98%,
2/06/25
..
18
19
991770800.UG.FTS.B,
28.98%,
2/06/25
..
156
160
991773150.UG.FTS.B,
28.98%,
2/06/25
..
122
124
991773209.UG.FTS.B,
28.98%,
2/06/25
..
291
297
991773450.UG.FTS.B,
28.98%,
2/06/25
..
1,355
1,384
991773829.UG.FTS.B,
28.98%,
2/06/25
..
142
145
991776146.UG.FTS.B,
28.98%,
2/06/25
..
266
272
991777528.UG.FTS.B,
28.98%,
2/06/25
..
1,337
1,366
991779405.UG.FTS.B,
28.98%,
2/06/25
..
137
139
991780600.UG.FTS.B,
28.98%,
2/06/25
..
16
16
991781129.UG.FTS.B,
28.98%,
2/06/25
..
97
21
991787120.UG.FTS.B,
28.98%,
2/06/25
..
29
29
991787293.UG.FTS.B,
28.98%,
2/06/25
..
155
156
991790950.UG.FTS.B,
28.98%,
2/06/25
..
1,412
1,442
991793041.UG.FTS.B,
28.98%,
2/06/25
..
51
52
991794977.UG.FTS.B,
28.98%,
2/06/25
..
115
117
991795976.UG.FTS.B,
28.98%,
2/06/25
..
119
122
991797878.UG.FTS.B,
28.98%,
2/06/25
..
232
237
991800465.UG.FTS.B,
28.98%,
2/06/25
..
8
8
991805892.UG.FTS.B,
28.98%,
2/06/25
..
287
293
991811061.UG.FTS.B,
28.98%,
2/06/25
..
1,451
1,483
991813823.UG.FTS.B,
28.98%,
2/06/25
..
199
203
991815125.UG.FTS.B,
28.98%,
2/06/25
..
1,517
1,531
991815323.UG.FTS.B,
28.98%,
2/06/25
..
120
123
991815975.UG.FTS.B,
28.98%,
2/06/25
..
569
581
991817047.UG.FTS.B,
28.98%,
2/06/25
..
896
915
991817713.UG.FTS.B,
28.98%,
2/06/25
..
959
975
991818846.UG.FTS.B,
28.98%,
2/06/25
..
11
11
991820156.UG.FTS.B,
28.98%,
2/06/25
..
1,013
211
991823294.UG.FTS.B,
28.98%,
2/06/25
..
362
369
991823324.UG.FTS.B,
28.98%,
2/06/25
..
1,960
1,964
991826493.UG.FTS.B,
28.98%,
2/06/25
..
128
129
991826871.UG.FTS.B,
28.98%,
2/06/25
..
50
51
991830029.UG.FTS.B,
28.98%,
2/06/25
..
31
32
991832318.UG.FTS.B,
28.98%,
2/06/25
..
136
139
991832752.UG.FTS.B,
28.98%,
2/06/25
..
725
741
991834196.UG.FTS.B,
28.98%,
2/06/25
..
196
198
991835706.UG.FTS.B,
28.98%,
2/06/25
..
484
494
991836050.UG.FTS.B,
28.98%,
2/06/25
..
290
296
991836125.UG.FTS.B,
28.98%,
2/06/25
..
923
943
991836302.UG.FTS.B,
28.98%,
2/06/25
..
595
72
991837625.UG.FTS.B,
28.98%,
2/06/25
..
187
187
991839546.UG.FTS.B,
28.98%,
2/06/25
..
31
32
991842664.UG.FTS.B,
28.98%,
2/06/25
..
189
193
991846276.UG.FTS.B,
28.98%,
2/06/25
..
94
96
991848649.UG.FTS.B,
28.98%,
2/06/25
..
26
26
991850883.UG.FTS.B,
28.98%,
2/06/25
..
483
493
991851940.UG.FTS.B,
28.98%,
2/06/25
..
47
47
991852569.UG.FTS.B,
28.98%,
2/06/25
..
98
100
991854897.UG.FTS.B,
28.98%,
2/06/25
..
700
715
991855239.UG.FTS.B,
28.98%,
2/06/25
..
803
802
991857509.UG.FTS.B,
28.98%,
2/06/25
..
207
209
991861556.UG.FTS.B,
28.98%,
2/06/25
..
204
206
991862138.UG.FTS.B,
28.98%,
2/06/25
..
43
44
991862443.UG.FTS.B,
28.98%,
2/06/25
..
146
149
991862866.UG.FTS.B,
28.98%,
2/06/25
..
3,825
3,861
991863321.UG.FTS.B,
28.98%,
2/06/25
..
289
296
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
162
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991866284.UG.FTS.B,
28.98%,
2/06/25
..
$
17
$
18
991867036.UG.FTS.B,
28.98%,
2/06/25
..
76
77
991867184.UG.FTS.B,
28.98%,
2/06/25
..
137
140
991868227.UG.FTS.B,
28.98%,
2/06/25
..
829
847
991868577.UG.FTS.B,
28.98%,
2/06/25
..
269
274
991871855.UG.FTS.B,
28.98%,
2/06/25
..
133
136
991872075.UG.FTS.B,
28.98%,
2/06/25
..
675
681
991878519.UG.FTS.B,
28.98%,
2/06/25
..
87
88
991882701.UG.FTS.B,
28.98%,
2/06/25
..
240
50
991883958.UG.FTS.B,
28.98%,
2/06/25
..
16
16
991885361.UG.FTS.B,
28.98%,
2/06/25
..
5
5
991890027.UG.FTS.B,
28.98%,
2/06/25
..
7
7
991893183.UG.FTS.B,
28.98%,
2/06/25
..
42
43
991896380.UG.FTS.B,
28.98%,
2/06/25
..
7,205
7,179
991908332.UG.FTS.B,
28.98%,
2/06/25
..
63
64
991910683.UG.FTS.B,
28.98%,
2/06/25
..
94
95
991912584.UG.FTS.B,
28.98%,
2/06/25
..
480
485
991914850.UG.FTS.B,
28.98%,
2/06/25
..
272
274
991917174.UG.FTS.B,
28.98%,
2/06/25
..
244
51
991917177.UG.FTS.B,
28.98%,
2/06/25
..
288
291
991917185.UG.FTS.B,
28.98%,
2/06/25
..
221
220
991917660.UG.FTS.B,
28.98%,
2/06/25
..
960
969
991919417.UG.FTS.B,
28.98%,
2/06/25
..
184
185
991926157.UG.FTS.B,
28.98%,
2/06/25
..
258
261
991928832.UG.FTS.B,
28.98%,
2/06/25
..
144
146
991930551.UG.FTS.B,
28.98%,
2/06/25
..
431
435
991933531.UG.FTS.B,
28.98%,
2/06/25
..
69
71
991934063.UG.FTS.B,
28.98%,
2/06/25
..
103
105
991704035.UG.FTS.B,
29.45%,
2/06/25
..
288
191
991742902.UG.FTS.B,
29.45%,
2/06/25
..
582
596
991848757.UG.FTS.B,
29.45%,
2/06/25
..
2,877
1,907
991781925.UG.FTS.B,
29.46%,
2/06/25
..
200
203
991795249.UG.FTS.B,
29.46%,
2/06/25
..
164
167
991712510.UG.FTS.B,
29.47%,
2/06/25
..
347
354
991734284.UG.FTS.B,
29.48%,
2/06/25
..
106
13
991830702.UG.FTS.B,
29.48%,
2/06/25
..
175
179
991689915.UG.FTS.B,
29.49%,
2/06/25
..
130
128
991690486.UG.FTS.B,
29.49%,
2/06/25
..
1,482
1,483
991690939.UG.FTS.B,
29.49%,
2/06/25
..
1,436
1,462
991699172.UG.FTS.B,
29.49%,
2/06/25
..
732
750
991699796.UG.FTS.B,
29.49%,
2/06/25
..
123
125
991700095.UG.FTS.B,
29.49%,
2/06/25
..
325
331
991700490.UG.FTS.B,
29.49%,
2/06/25
..
173
22
991700916.UG.FTS.B,
29.49%,
2/06/25
..
1,590
1,624
991700980.UG.FTS.B,
29.49%,
2/06/25
..
649
649
991701070.UG.FTS.B,
29.49%,
2/06/25
..
112
114
991701181.UG.FTS.B,
29.49%,
2/06/25
..
321
323
991701366.UG.FTS.B,
29.49%,
2/06/25
..
749
764
991701414.UG.FTS.B,
29.49%,
2/06/25
..
965
985
991701826.UG.FTS.B,
29.49%,
2/06/25
..
33
33
991701842.UG.FTS.B,
29.49%,
2/06/25
..
219
219
991702235.UG.FTS.B,
29.49%,
2/06/25
..
68
69
991702389.UG.FTS.B,
29.49%,
2/06/25
..
13
13
991702407.UG.FTS.B,
29.49%,
2/06/25
..
80
81
991702911.UG.FTS.B,
29.49%,
2/06/25
..
471
474
991703608.UG.FTS.B,
29.49%,
2/06/25
..
624
635
991704077.UG.FTS.B,
29.49%,
2/06/25
..
22
3
991704096.UG.FTS.B,
29.49%,
2/06/25
..
297
298
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991704162.UG.FTS.B,
29.49%,
2/06/25
..
$
675
$
687
991704419.UG.FTS.B,
29.49%,
2/06/25
..
331
338
991704540.UG.FTS.B,
29.49%,
2/06/25
..
194
196
991704708.UG.FTS.B,
29.49%,
2/06/25
..
344
352
991705336.UG.FTS.B,
29.49%,
2/06/25
..
556
565
991705352.UG.FTS.B,
29.49%,
2/06/25
..
149
152
991705514.UG.FTS.B,
29.49%,
2/06/25
..
321
21
991705729.UG.FTS.B,
29.49%,
2/06/25
..
198
202
991706683.UG.FTS.B,
29.49%,
2/06/25
..
168
171
991707173.UG.FTS.B,
29.49%,
2/06/25
..
29
30
991707371.UG.FTS.B,
29.49%,
2/06/25
..
296
298
991707381.UG.FTS.B,
29.49%,
2/06/25
..
400
403
991707701.UG.FTS.B,
29.49%,
2/06/25
..
147
10
991707856.UG.FTS.B,
29.49%,
2/06/25
..
262
263
991707874.UG.FTS.B,
29.49%,
2/06/25
..
81
6
991708109.UG.FTS.B,
29.49%,
2/06/25
..
205
210
991708178.UG.FTS.B,
29.49%,
2/06/25
..
538
550
991708283.UG.FTS.B,
29.49%,
2/06/25
..
115
118
991708927.UG.FTS.B,
29.49%,
2/06/25
..
255
258
991709014.UG.FTS.B,
29.49%,
2/06/25
..
236
241
991709200.UG.FTS.B,
29.49%,
2/06/25
..
224
227
991709403.UG.FTS.B,
29.49%,
2/06/25
..
301
309
991709656.UG.FTS.B,
29.49%,
2/06/25
..
805
822
991711919.UG.FTS.B,
29.49%,
2/06/25
..
209
213
991712017.UG.FTS.B,
29.49%,
2/06/25
..
478
488
991712333.UG.FTS.B,
29.49%,
2/06/25
..
172
175
991712710.UG.FTS.B,
29.49%,
2/06/25
..
551
38
991712745.UG.FTS.B,
29.49%,
2/06/25
..
151
154
991713213.UG.FTS.B,
29.49%,
2/06/25
..
22
23
991713234.UG.FTS.B,
29.49%,
2/06/25
..
44
44
991713273.UG.FTS.B,
29.49%,
2/06/25
..
2,142
2,138
991714038.UG.FTS.B,
29.49%,
2/06/25
..
542
554
991714489.UG.FTS.B,
29.49%,
2/06/25
..
288
294
991714501.UG.FTS.B,
29.49%,
2/06/25
..
32
33
991714529.UG.FTS.B,
29.49%,
2/06/25
..
289
292
991714895.UG.FTS.B,
29.49%,
2/06/25
..
6
6
991715228.UG.FTS.B,
29.49%,
2/06/25
..
261
266
991715596.UG.FTS.B,
29.49%,
2/06/25
..
1,690
1,700
991715690.UG.FTS.B,
29.49%,
2/06/25
..
141
9
991715711.UG.FTS.B,
29.49%,
2/06/25
..
1,957
1,988
991716208.UG.FTS.B,
29.49%,
2/06/25
..
365
371
991716894.UG.FTS.B,
29.49%,
2/06/25
..
35
35
991717099.UG.FTS.B,
29.49%,
2/06/25
..
89
90
991717494.UG.FTS.B,
29.49%,
2/06/25
..
93
93
991717801.UG.FTS.B,
29.49%,
2/06/25
..
30
30
991718002.UG.FTS.B,
29.49%,
2/06/25
..
195
200
991719310.UG.FTS.B,
29.49%,
2/06/25
..
558
569
991719419.UG.FTS.B,
29.49%,
2/06/25
..
391
399
991719420.UG.FTS.B,
29.49%,
2/06/25
..
489
499
991720196.UG.FTS.B,
29.49%,
2/06/25
..
147
150
991721139.UG.FTS.B,
29.49%,
2/06/25
..
293
299
991721483.UG.FTS.B,
29.49%,
2/06/25
..
96
98
991721909.UG.FTS.B,
29.49%,
2/06/25
..
161
163
991721992.UG.FTS.B,
29.49%,
2/06/25
..
391
397
991723599.UG.FTS.B,
29.49%,
2/06/25
..
117
119
991724717.UG.FTS.B,
29.49%,
2/06/25
..
227
228
991724986.UG.FTS.B,
29.49%,
2/06/25
..
58
59
991725507.UG.FTS.B,
29.49%,
2/06/25
..
377
385
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
163
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991725736.UG.FTS.B,
29.49%,
2/06/25
..
$
110
$
112
991725769.UG.FTS.B,
29.49%,
2/06/25
..
50
50
991725939.UG.FTS.B,
29.49%,
2/06/25
..
42
14
991725959.UG.FTS.B,
29.49%,
2/06/25
..
839
855
991726903.UG.FTS.B,
29.49%,
2/06/25
..
9
9
991728154.UG.FTS.B,
29.49%,
2/06/25
..
170
172
991728380.UG.FTS.B,
29.49%,
2/06/25
..
271
276
991728473.UG.FTS.B,
29.49%,
2/06/25
..
1,531
1,564
991729497.UG.FTS.B,
29.49%,
2/06/25
..
59
60
991729831.UG.FTS.B,
29.49%,
2/06/25
..
278
283
991730113.UG.FTS.B,
29.49%,
2/06/25
..
288
293
991730563.UG.FTS.B,
29.49%,
2/06/25
..
488
499
991731325.UG.FTS.B,
29.49%,
2/06/25
..
736
749
991731574.UG.FTS.B,
29.49%,
2/06/25
..
30
29
991734435.UG.FTS.B,
29.49%,
2/06/25
..
160
163
991735284.UG.FTS.B,
29.49%,
2/06/25
..
225
230
991735384.UG.FTS.B,
29.49%,
2/06/25
..
444
455
991736261.UG.FTS.B,
29.49%,
2/06/25
..
51
44
991736461.UG.FTS.B,
29.49%,
2/06/25
..
1,316
1,340
991737002.UG.FTS.B,
29.49%,
2/06/25
..
102
104
991737780.UG.FTS.B,
29.49%,
2/06/25
..
126
128
991738035.UG.FTS.B,
29.49%,
2/06/25
..
122
124
991738100.UG.FTS.B,
29.49%,
2/06/25
..
421
52
991738990.UG.FTS.B,
29.49%,
2/06/25
..
893
905
991739099.UG.FTS.B,
29.49%,
2/06/25
..
143
141
991742896.UG.FTS.B,
29.49%,
2/06/25
..
522
531
991743392.UG.FTS.B,
29.49%,
2/06/25
..
227
150
991743460.UG.FTS.B,
29.49%,
2/06/25
..
57
58
991744011.UG.FTS.B,
29.49%,
2/06/25
..
406
280
991744447.UG.FTS.B,
29.49%,
2/06/25
..
835
853
991744630.UG.FTS.B,
29.49%,
2/06/25
..
86
87
991745817.UG.FTS.B,
29.49%,
2/06/25
..
17
17
991746112.UG.FTS.B,
29.49%,
2/06/25
..
699
713
991746825.UG.FTS.B,
29.49%,
2/06/25
..
124
126
991746952.UG.FTS.B,
29.49%,
2/06/25
..
400
406
991747607.UG.FTS.B,
29.49%,
2/06/25
..
202
205
991749163.UG.FTS.B,
29.49%,
2/06/25
..
112
114
991749942.UG.FTS.B,
29.49%,
2/06/25
..
487
497
991750661.UG.FTS.B,
29.49%,
2/06/25
..
1,271
1,294
991752731.UG.FTS.B,
29.49%,
2/06/25
..
119
121
991752852.UG.FTS.B,
29.49%,
2/06/25
..
401
268
991753304.UG.FTS.B,
29.49%,
2/06/25
..
226
223
991753936.UG.FTS.B,
29.49%,
2/06/25
..
67
66
991754744.UG.FTS.B,
29.49%,
2/06/25
..
291
292
991755020.UG.FTS.B,
29.49%,
2/06/25
..
7
6
991755326.UG.FTS.B,
29.49%,
2/06/25
..
86
87
991755928.UG.FTS.B,
29.49%,
2/06/25
..
285
287
991756090.UG.FTS.B,
29.49%,
2/06/25
..
169
173
991757142.UG.FTS.B,
29.49%,
2/06/25
..
536
544
991757240.UG.FTS.B,
29.49%,
2/06/25
..
723
739
991757332.UG.FTS.B,
29.49%,
2/06/25
..
237
233
991759224.UG.FTS.B,
29.49%,
2/06/25
..
177
178
991759741.UG.FTS.B,
29.49%,
2/06/25
..
397
403
991764353.UG.FTS.B,
29.49%,
2/06/25
..
65
65
991765175.UG.FTS.B,
29.49%,
2/06/25
..
208
212
991766314.UG.FTS.B,
29.49%,
2/06/25
..
15
15
991766972.UG.FTS.B,
29.49%,
2/06/25
..
104
106
991766995.UG.FTS.B,
29.49%,
2/06/25
..
194
196
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991767120.UG.FTS.B,
29.49%,
2/06/25
..
$
120
$
122
991767625.UG.FTS.B,
29.49%,
2/06/25
..
64
65
991767728.UG.FTS.B,
29.49%,
2/06/25
..
224
228
991769688.UG.FTS.B,
29.49%,
2/06/25
..
437
446
991769928.UG.FTS.B,
29.49%,
2/06/25
..
491
502
991771068.UG.FTS.B,
29.49%,
2/06/25
..
140
143
991772651.UG.FTS.B,
29.49%,
2/06/25
..
973
980
991772871.UG.FTS.B,
29.49%,
2/06/25
..
1,169
1,173
991774875.UG.FTS.B,
29.49%,
2/06/25
..
96
97
991775565.UG.FTS.B,
29.49%,
2/06/25
..
290
295
991775752.UG.FTS.B,
29.49%,
2/06/25
..
–
–
991776118.UG.FTS.B,
29.49%,
2/06/25
..
46
15
991781164.UG.FTS.B,
29.49%,
2/06/25
..
90
92
991782029.UG.FTS.B,
29.49%,
2/06/25
..
87
86
991782369.UG.FTS.B,
29.49%,
2/06/25
..
190
23
991783769.UG.FTS.B,
29.49%,
2/06/25
..
33
33
991784966.UG.FTS.B,
29.49%,
2/06/25
..
72
73
991787239.UG.FTS.B,
29.49%,
2/06/25
..
109
111
991788076.UG.FTS.B,
29.49%,
2/06/25
..
47
15
991789710.UG.FTS.B,
29.49%,
2/06/25
..
512
506
991791088.UG.FTS.B,
29.49%,
2/06/25
..
71
71
991791167.UG.FTS.B,
29.49%,
2/06/25
..
102
104
991793532.UG.FTS.B,
29.49%,
2/06/25
..
777
793
991796673.UG.FTS.B,
29.49%,
2/06/25
..
536
543
991797405.UG.FTS.B,
29.49%,
2/06/25
..
137
139
991798596.UG.FTS.B,
29.49%,
2/06/25
..
225
227
991800849.UG.FTS.B,
29.49%,
2/06/25
..
96
97
991801191.UG.FTS.B,
29.49%,
2/06/25
..
1,324
1,349
991801380.UG.FTS.B,
29.49%,
2/06/25
..
440
29
991803989.UG.FTS.B,
29.49%,
2/06/25
..
913
924
991804605.UG.FTS.B,
29.49%,
2/06/25
..
188
185
991806859.UG.FTS.B,
29.49%,
2/06/25
..
63
63
991808704.UG.FTS.B,
29.49%,
2/06/25
..
64
64
991809701.UG.FTS.B,
29.49%,
2/06/25
..
385
82
991812212.UG.FTS.B,
29.49%,
2/06/25
..
186
187
991812264.UG.FTS.B,
29.49%,
2/06/25
..
189
191
991812301.UG.FTS.B,
29.49%,
2/06/25
..
116
116
991812574.UG.FTS.B,
29.49%,
2/06/25
..
149
151
991815396.UG.FTS.B,
29.49%,
2/06/25
..
171
175
991815674.UG.FTS.B,
29.49%,
2/06/25
..
504
514
991816101.UG.FTS.B,
29.49%,
2/06/25
..
217
221
991818985.UG.FTS.B,
29.49%,
2/06/25
..
89
90
991820441.UG.FTS.B,
29.49%,
2/06/25
..
1,588
1,621
991821554.UG.FTS.B,
29.49%,
2/06/25
..
136
138
991825654.UG.FTS.B,
29.49%,
2/06/25
..
231
236
991826190.UG.FTS.B,
29.49%,
2/06/25
..
107
106
991826388.UG.FTS.B,
29.49%,
2/06/25
..
51
52
991826917.UG.FTS.B,
29.49%,
2/06/25
..
618
630
991827252.UG.FTS.B,
29.49%,
2/06/25
..
119
82
991830903.UG.FTS.B,
29.49%,
2/06/25
..
41
41
991834402.UG.FTS.B,
29.49%,
2/06/25
..
140
143
991834986.UG.FTS.B,
29.49%,
2/06/25
..
484
491
991835940.UG.FTS.B,
29.49%,
2/06/25
..
201
204
991836161.UG.FTS.B,
29.49%,
2/06/25
..
125
126
991836634.UG.FTS.B,
29.49%,
2/06/25
..
286
288
991838708.UG.FTS.B,
29.49%,
2/06/25
..
84
85
991842608.UG.FTS.B,
29.49%,
2/06/25
..
201
201
991844028.UG.FTS.B,
29.49%,
2/06/25
..
2,803
2,844
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
164
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991848072.UG.FTS.B,
29.49%,
2/06/25
..
$
183
$
187
991848612.UG.FTS.B,
29.49%,
2/06/25
..
57
57
991848970.UG.FTS.B,
29.49%,
2/06/25
..
228
153
991849574.UG.FTS.B,
29.49%,
2/06/25
..
43
42
991849608.UG.FTS.B,
29.49%,
2/06/25
..
3
3
991850107.UG.FTS.B,
29.49%,
2/06/25
..
77
77
991852176.UG.FTS.B,
29.49%,
2/06/25
..
145
148
991854157.UG.FTS.B,
29.49%,
2/06/25
..
483
493
991855511.UG.FTS.B,
29.49%,
2/06/25
..
79
80
991860077.UG.FTS.B,
29.49%,
2/06/25
..
209
211
991862203.UG.FTS.B,
29.49%,
2/06/25
..
86
85
991862795.UG.FTS.B,
29.49%,
2/06/25
..
1,448
1,460
991863987.UG.FTS.B,
29.49%,
2/06/25
..
1,444
1,432
991865117.UG.FTS.B,
29.49%,
2/06/25
..
434
442
991865504.UG.FTS.B,
29.49%,
2/06/25
..
64
64
991865882.UG.FTS.B,
29.49%,
2/06/25
..
42
43
991868467.UG.FTS.B,
29.49%,
2/06/25
..
49
50
991869807.UG.FTS.B,
29.49%,
2/06/25
..
171
174
991869815.UG.FTS.B,
29.49%,
2/06/25
..
33
33
991870095.UG.FTS.B,
29.49%,
2/06/25
..
901
895
991870451.UG.FTS.B,
29.49%,
2/06/25
..
133
134
991871207.UG.FTS.B,
29.49%,
2/06/25
..
885
902
991872608.UG.FTS.B,
29.49%,
2/06/25
..
906
900
991873395.UG.FTS.B,
29.49%,
2/06/25
..
79
79
991873746.UG.FTS.B,
29.49%,
2/06/25
..
86
86
991874981.UG.FTS.B,
29.49%,
2/06/25
..
341
226
991875332.UG.FTS.B,
29.49%,
2/06/25
..
177
180
991877935.UG.FTS.B,
29.49%,
2/06/25
..
70
71
991881388.UG.FTS.B,
29.49%,
2/06/25
..
90
21
991886716.UG.FTS.B,
29.49%,
2/06/25
..
138
139
991887900.UG.FTS.B,
29.49%,
2/06/25
..
55
55
991892060.UG.FTS.B,
29.49%,
2/06/25
..
475
57
991895260.UG.FTS.B,
29.49%,
2/06/25
..
577
582
991896068.UG.FTS.B,
29.49%,
2/06/25
..
95
96
991899452.UG.FTS.B,
29.49%,
2/06/25
..
111
113
991904775.UG.FTS.B,
29.49%,
2/06/25
..
109
111
991907617.UG.FTS.B,
29.49%,
2/06/25
..
84
85
991908329.UG.FTS.B,
29.49%,
2/06/25
..
307
311
991908415.UG.FTS.B,
29.49%,
2/06/25
..
95
96
991909030.UG.FTS.B,
29.49%,
2/06/25
..
5
5
991910134.UG.FTS.B,
29.49%,
2/06/25
..
384
378
991910563.UG.FTS.B,
29.49%,
2/06/25
..
4
4
991911250.UG.FTS.B,
29.49%,
2/06/25
..
9
9
991914064.UG.FTS.B,
29.49%,
2/06/25
..
117
25
991914065.UG.FTS.B,
29.49%,
2/06/25
..
188
189
991915931.UG.FTS.B,
29.49%,
2/06/25
..
81
80
991919465.UG.FTS.B,
29.49%,
2/06/25
..
76
77
991921869.UG.FTS.B,
29.49%,
2/06/25
..
45
45
991922466.UG.FTS.B,
29.49%,
2/06/25
..
99
101
991924009.UG.FTS.B,
29.49%,
2/06/25
..
13
13
991928851.UG.FTS.B,
29.49%,
2/06/25
..
2,400
2,411
991930716.UG.FTS.B,
29.49%,
2/06/25
..
32
32
991933771.UG.FTS.B,
29.49%,
2/06/25
..
285
282
991934546.UG.FTS.B,
29.49%,
2/06/25
..
174
172
991934635.UG.FTS.B,
29.49%,
2/06/25
..
579
569
991936500.UG.FTS.B,
29.49%,
2/06/25
..
31
31
991938491.UG.FTS.B,
29.49%,
2/06/25
..
671
676
991736213.UG.FTS.B,
14.98%,
2/07/25
..
492
503
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991738550.UG.FTS.B,
17.99%,
2/07/25
..
$
468
$
473
991860327.UG.FTS.B,
17.99%,
2/07/25
..
1,200
1,222
991875162.UG.FTS.B,
17.99%,
2/07/25
..
268
272
991884424.UG.FTS.B,
17.99%,
2/07/25
..
467
473
991933227.UG.FTS.B,
17.99%,
2/07/25
..
93
95
991729679.UG.FTS.B,
18.97%,
2/07/25
..
540
554
991827281.UG.FTS.B,
18.97%,
2/07/25
..
138
141
991905123.UG.FTS.B,
18.97%,
2/07/25
..
163
166
991708830.UG.FTS.B,
19.21%,
2/07/25
..
637
652
991727309.UG.FTS.B,
19.21%,
2/07/25
..
673
685
991748413.UG.FTS.B,
19.21%,
2/07/25
..
895
916
991748517.UG.FTS.B,
19.21%,
2/07/25
..
483
495
991751239.UG.FTS.B,
19.21%,
2/07/25
..
294
301
991770029.UG.FTS.B,
19.21%,
2/07/25
..
174
179
991783290.UG.FTS.B,
19.21%,
2/07/25
..
380
390
991799688.UG.FTS.B,
19.21%,
2/07/25
..
0
0
991818350.UG.FTS.B,
19.21%,
2/07/25
..
35
35
991874943.UG.FTS.B,
19.21%,
2/07/25
..
297
302
991924115.UG.FTS.B,
19.21%,
2/07/25
..
121
124
991774364.UG.FTS.B,
19.8%,
2/07/25
...
1,068
1,071
991834369.UG.FTS.B,
19.8%,
2/07/25
...
481
493
991867288.UG.FTS.B,
19.8%,
2/07/25
...
26
26
991898141.UG.FTS.B,
19.8%,
2/07/25
...
478
486
991875028.UG.FTS.B,
19.97%,
2/07/25
..
25
26
991706099.UG.FTS.B,
19.99%,
2/07/25
..
31
31
991733738.UG.FTS.B,
19.99%,
2/07/25
..
117
119
991740094.UG.FTS.B,
19.99%,
2/07/25
..
242
247
991744988.UG.FTS.B,
19.99%,
2/07/25
..
702
709
991751600.UG.FTS.B,
19.99%,
2/07/25
..
15
15
991766821.UG.FTS.B,
19.99%,
2/07/25
..
274
280
991769088.UG.FTS.B,
19.99%,
2/07/25
..
9
9
991783186.UG.FTS.B,
19.99%,
2/07/25
..
571
576
991790462.UG.FTS.B,
19.99%,
2/07/25
..
85
20
991808111.UG.FTS.B,
19.99%,
2/07/25
..
68
70
991810153.UG.FTS.B,
19.99%,
2/07/25
..
193
197
991821055.UG.FTS.B,
19.99%,
2/07/25
..
177
181
991849041.UG.FTS.B,
19.99%,
2/07/25
..
36
36
991856601.UG.FTS.B,
19.99%,
2/07/25
..
439
449
991902788.UG.FTS.B,
19.99%,
2/07/25
..
45
46
991929262.UG.FTS.B,
19.99%,
2/07/25
..
139
140
991929426.UG.FTS.B,
19.99%,
2/07/25
..
1,182
1,194
991929766.UG.FTS.B,
19.99%,
2/07/25
..
207
209
991770272.UG.FTS.B,
20.46%,
2/07/25
..
676
692
991868003.UG.FTS.B,
20.46%,
2/07/25
..
330
338
991721745.UG.FTS.B,
20.97%,
2/07/25
..
194
198
991705613.UG.FTS.B,
21.46%,
2/07/25
..
173
173
991714732.UG.FTS.B,
21.46%,
2/07/25
..
65
66
991758807.UG.FTS.B,
21.46%,
2/07/25
..
131
134
991922854.UG.FTS.B,
21.46%,
2/07/25
..
83
84
991711288.UG.FTS.B,
21.98%,
2/07/25
..
226
230
991715117.UG.FTS.B,
21.98%,
2/07/25
..
712
728
991724052.UG.FTS.B,
21.98%,
2/07/25
..
627
640
991794656.UG.FTS.B,
21.98%,
2/07/25
..
463
467
991802598.UG.FTS.B,
21.98%,
2/07/25
..
2,311
2,373
991843735.UG.FTS.B,
21.98%,
2/07/25
..
577
590
991736467.UG.FTS.B,
22.97%,
2/07/25
..
477
487
991721816.UG.FTS.B,
23.95%,
2/07/25
..
330
39
991772252.UG.FTS.B,
23.95%,
2/07/25
..
1,937
1,976
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
165
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991792213.UG.FTS.B,
23.95%,
2/07/25
..
$
9,674
$
9,869
991802775.UG.FTS.B,
24.95%,
2/07/25
..
5
5
991762975.UG.FTS.B,
25.95%,
2/07/25
..
492
502
991772013.UG.FTS.B,
26.94%,
2/07/25
..
291
297
991709714.UG.FTS.B,
27.99%,
2/07/25
..
89
91
991748191.UG.FTS.B,
27.99%,
2/07/25
..
263
269
991785599.UG.FTS.B,
27.99%,
2/07/25
..
806
806
991797259.UG.FTS.B,
27.99%,
2/07/25
..
36
36
991800353.UG.FTS.B,
27.99%,
2/07/25
..
113
116
991828120.UG.FTS.B,
27.99%,
2/07/25
..
51
52
991841509.UG.FTS.B,
27.99%,
2/07/25
..
6
6
991880949.UG.FTS.B,
27.99%,
2/07/25
..
97
99
991901076.UG.FTS.B,
27.99%,
2/07/25
..
491
487
991902001.UG.FTS.B,
27.99%,
2/07/25
..
214
215
991697103.UG.FTS.B,
28.98%,
2/07/25
..
554
562
991697441.UG.FTS.B,
28.98%,
2/07/25
..
427
431
991705668.UG.FTS.B,
28.98%,
2/07/25
..
47
47
991705793.UG.FTS.B,
28.98%,
2/07/25
..
648
661
991705973.UG.FTS.B,
28.98%,
2/07/25
..
234
239
991706644.UG.FTS.B,
28.98%,
2/07/25
..
44
45
991706813.UG.FTS.B,
28.98%,
2/07/25
..
534
546
991707116.UG.FTS.B,
28.98%,
2/07/25
..
152
156
991707358.UG.FTS.B,
28.98%,
2/07/25
..
139
142
991707661.UG.FTS.B,
28.98%,
2/07/25
..
252
258
991707843.UG.FTS.B,
28.98%,
2/07/25
..
172
175
991708677.UG.FTS.B,
28.98%,
2/07/25
..
1,102
1,112
991708937.UG.FTS.B,
28.98%,
2/07/25
..
253
256
991708989.UG.FTS.B,
28.98%,
2/07/25
..
366
372
991709240.UG.FTS.B,
28.98%,
2/07/25
..
73
75
991709343.UG.FTS.B,
28.98%,
2/07/25
..
0
0
991710256.UG.FTS.B,
28.98%,
2/07/25
..
84
84
991710280.UG.FTS.B,
28.98%,
2/07/25
..
5
5
991710379.UG.FTS.B,
28.98%,
2/07/25
..
315
322
991710718.UG.FTS.B,
28.98%,
2/07/25
..
143
146
991710868.UG.FTS.B,
28.98%,
2/07/25
..
268
274
991712303.UG.FTS.B,
28.98%,
2/07/25
..
212
217
991712542.UG.FTS.B,
28.98%,
2/07/25
..
104
106
991712781.UG.FTS.B,
28.98%,
2/07/25
..
189
193
991712922.UG.FTS.B,
28.98%,
2/07/25
..
160
164
991712958.UG.FTS.B,
28.98%,
2/07/25
..
232
237
991714026.UG.FTS.B,
28.98%,
2/07/25
..
156
155
991715098.UG.FTS.B,
28.98%,
2/07/25
..
220
46
991716458.UG.FTS.B,
28.98%,
2/07/25
..
123
125
991716650.UG.FTS.B,
28.98%,
2/07/25
..
100
102
991716695.UG.FTS.B,
28.98%,
2/07/25
..
796
167
991717074.UG.FTS.B,
28.98%,
2/07/25
..
219
224
991717771.UG.FTS.B,
28.98%,
2/07/25
..
423
432
991718206.UG.FTS.B,
28.98%,
2/07/25
..
117
120
991719437.UG.FTS.B,
28.98%,
2/07/25
..
1,466
1,500
991720672.UG.FTS.B,
28.98%,
2/07/25
..
4,888
4,999
991722674.UG.FTS.B,
28.98%,
2/07/25
..
157
161
991722877.UG.FTS.B,
28.98%,
2/07/25
..
196
200
991724076.UG.FTS.B,
28.98%,
2/07/25
..
117
120
991724273.UG.FTS.B,
28.98%,
2/07/25
..
1,569
1,599
991724529.UG.FTS.B,
28.98%,
2/07/25
..
1,835
1,875
991725039.UG.FTS.B,
28.98%,
2/07/25
..
401
84
991727635.UG.FTS.B,
28.98%,
2/07/25
..
310
317
991727947.UG.FTS.B,
28.98%,
2/07/25
..
518
531
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991728955.UG.FTS.B,
28.98%,
2/07/25
..
$
639
$
650
991729541.UG.FTS.B,
28.98%,
2/07/25
..
13
13
991731435.UG.FTS.B,
28.98%,
2/07/25
..
244
250
991732874.UG.FTS.B,
28.98%,
2/07/25
..
321
21
991733183.UG.FTS.B,
28.98%,
2/07/25
..
76
75
991733251.UG.FTS.B,
28.98%,
2/07/25
..
32
32
991733369.UG.FTS.B,
28.98%,
2/07/25
..
96
98
991735485.UG.FTS.B,
28.98%,
2/07/25
..
176
180
991737950.UG.FTS.B,
28.98%,
2/07/25
..
3
3
991739386.UG.FTS.B,
28.98%,
2/07/25
..
390
399
991740286.UG.FTS.B,
28.98%,
2/07/25
..
976
998
991740991.UG.FTS.B,
28.98%,
2/07/25
..
797
804
991743968.UG.FTS.B,
28.98%,
2/07/25
..
558
570
991744414.UG.FTS.B,
28.98%,
2/07/25
..
181
185
991747615.UG.FTS.B,
28.98%,
2/07/25
..
683
698
991747846.UG.FTS.B,
28.98%,
2/07/25
..
353
350
991748215.UG.FTS.B,
28.98%,
2/07/25
..
25
25
991751480.UG.FTS.B,
28.98%,
2/07/25
..
90
92
991753200.UG.FTS.B,
28.98%,
2/07/25
..
48
48
991755398.UG.FTS.B,
28.98%,
2/07/25
..
131
134
991755903.UG.FTS.B,
28.98%,
2/07/25
..
265
271
991755938.UG.FTS.B,
28.98%,
2/07/25
..
386
395
991757521.UG.FTS.B,
28.98%,
2/07/25
..
63
64
991758513.UG.FTS.B,
28.98%,
2/07/25
..
604
618
991760350.UG.FTS.B,
28.98%,
2/07/25
..
621
625
991760736.UG.FTS.B,
28.98%,
2/07/25
..
71
70
991762771.UG.FTS.B,
28.98%,
2/07/25
..
65
66
991763088.UG.FTS.B,
28.98%,
2/07/25
..
147
150
991764432.UG.FTS.B,
28.98%,
2/07/25
..
88
90
991764973.UG.FTS.B,
28.98%,
2/07/25
..
0
0
991765490.UG.FTS.B,
28.98%,
2/07/25
..
114
116
991765812.UG.FTS.B,
28.98%,
2/07/25
..
34
34
991767054.UG.FTS.B,
28.98%,
2/07/25
..
157
102
991769852.UG.FTS.B,
28.98%,
2/07/25
..
199
13
991771163.UG.FTS.B,
28.98%,
2/07/25
..
35
35
991772287.UG.FTS.B,
28.98%,
2/07/25
..
487
497
991773314.UG.FTS.B,
28.98%,
2/07/25
..
751
768
991774768.UG.FTS.B,
28.98%,
2/07/25
..
2,861
2,887
991776937.UG.FTS.B,
28.98%,
2/07/25
..
194
196
991782506.UG.FTS.B,
28.98%,
2/07/25
..
4,862
4,970
991783617.UG.FTS.B,
28.98%,
2/07/25
..
418
427
991784791.UG.FTS.B,
28.98%,
2/07/25
..
340
348
991789658.UG.FTS.B,
28.98%,
2/07/25
..
212
216
991790869.UG.FTS.B,
28.98%,
2/07/25
..
165
35
991792045.UG.FTS.B,
28.98%,
2/07/25
..
967
988
991792456.UG.FTS.B,
28.98%,
2/07/25
..
86
87
991793298.UG.FTS.B,
28.98%,
2/07/25
..
140
143
991794634.UG.FTS.B,
28.98%,
2/07/25
..
1,803
1,841
991795969.UG.FTS.B,
28.98%,
2/07/25
..
37
37
991796824.UG.FTS.B,
28.98%,
2/07/25
..
365
367
991796956.UG.FTS.B,
28.98%,
2/07/25
..
126
129
991797267.UG.FTS.B,
28.98%,
2/07/25
..
72
10
991799326.UG.FTS.B,
28.98%,
2/07/25
..
791
808
991799442.UG.FTS.B,
28.98%,
2/07/25
..
1,227
1,238
991800973.UG.FTS.B,
28.98%,
2/07/25
..
1,330
1,340
991801184.UG.FTS.B,
28.98%,
2/07/25
..
2,760
2,834
991801935.UG.FTS.B,
28.98%,
2/07/25
..
5,146
5,259
991803039.UG.FTS.B,
28.98%,
2/07/25
..
943
963
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
166
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991803197.UG.FTS.B,
28.98%,
2/07/25
..
$
36
$
36
991805259.UG.FTS.B,
28.98%,
2/07/25
..
216
221
991805595.UG.FTS.B,
28.98%,
2/07/25
..
92
94
991806653.UG.FTS.B,
28.98%,
2/07/25
..
318
321
991807039.UG.FTS.B,
28.98%,
2/07/25
..
394
401
991807123.UG.FTS.B,
28.98%,
2/07/25
..
630
644
991808095.UG.FTS.B,
28.98%,
2/07/25
..
3
3
991809459.UG.FTS.B,
28.98%,
2/07/25
..
89
91
991810591.UG.FTS.B,
28.98%,
2/07/25
..
169
168
991811191.UG.FTS.B,
28.98%,
2/07/25
..
2,231
2,280
991814223.UG.FTS.B,
28.98%,
2/07/25
..
175
179
991814807.UG.FTS.B,
28.98%,
2/07/25
..
277
283
991817529.UG.FTS.B,
28.98%,
2/07/25
..
203
43
991818819.UG.FTS.B,
28.98%,
2/07/25
..
43
44
991820194.UG.FTS.B,
28.98%,
2/07/25
..
55
16
991823342.UG.FTS.B,
28.98%,
2/07/25
..
465
475
991827828.UG.FTS.B,
28.98%,
2/07/25
..
14
14
991830675.UG.FTS.B,
28.98%,
2/07/25
..
225
229
991834970.UG.FTS.B,
28.98%,
2/07/25
..
1,000
67
991835648.UG.FTS.B,
28.98%,
2/07/25
..
194
198
991836592.UG.FTS.B,
28.98%,
2/07/25
..
2,068
2,058
991838148.UG.FTS.B,
28.98%,
2/07/25
..
907
915
991838996.UG.FTS.B,
28.98%,
2/07/25
..
251
254
991840095.UG.FTS.B,
28.98%,
2/07/25
..
86
87
991843451.UG.FTS.B,
28.98%,
2/07/25
..
69
71
991843541.UG.FTS.B,
28.98%,
2/07/25
..
252
250
991844258.UG.FTS.B,
28.98%,
2/07/25
..
197
41
991847618.UG.FTS.B,
28.98%,
2/07/25
..
15
15
991847936.UG.FTS.B,
28.98%,
2/07/25
..
55
55
991848728.UG.FTS.B,
28.98%,
2/07/25
..
1
1
991849419.UG.FTS.B,
28.98%,
2/07/25
..
579
590
991851782.UG.FTS.B,
28.98%,
2/07/25
..
557
569
991852115.UG.FTS.B,
28.98%,
2/07/25
..
341
350
991852363.UG.FTS.B,
28.98%,
2/07/25
..
101
103
991853211.UG.FTS.B,
28.98%,
2/07/25
..
208
206
991854042.UG.FTS.B,
28.98%,
2/07/25
..
240
245
991854543.UG.FTS.B,
28.98%,
2/07/25
..
210
214
991862171.UG.FTS.B,
28.98%,
2/07/25
..
91
91
991863331.UG.FTS.B,
28.98%,
2/07/25
..
367
375
991863604.UG.FTS.B,
28.98%,
2/07/25
..
3,863
3,898
991864821.UG.FTS.B,
28.98%,
2/07/25
..
38
38
991875987.UG.FTS.B,
28.98%,
2/07/25
..
427
431
991876954.UG.FTS.B,
28.98%,
2/07/25
..
50
51
991882872.UG.FTS.B,
28.98%,
2/07/25
..
367
371
991884000.UG.FTS.B,
28.98%,
2/07/25
..
1,259
1,268
991889023.UG.FTS.B,
28.98%,
2/07/25
..
172
35
991891982.UG.FTS.B,
28.98%,
2/07/25
..
38
37
991892302.UG.FTS.B,
28.98%,
2/07/25
..
92
94
991897778.UG.FTS.B,
28.98%,
2/07/25
..
561
569
991905767.UG.FTS.B,
28.98%,
2/07/25
..
244
246
991907273.UG.FTS.B,
28.98%,
2/07/25
..
481
486
991912825.UG.FTS.B,
28.98%,
2/07/25
..
47
47
991917980.UG.FTS.B,
28.98%,
2/07/25
..
119
120
991920069.UG.FTS.B,
28.98%,
2/07/25
..
165
166
991922521.UG.FTS.B,
28.98%,
2/07/25
..
35
36
991922608.UG.FTS.B,
28.98%,
2/07/25
..
371
367
991925661.UG.FTS.B,
28.98%,
2/07/25
..
18
18
991927729.UG.FTS.B,
28.98%,
2/07/25
..
960
970
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991935487.UG.FTS.B,
28.98%,
2/07/25
..
$
141
$
143
991937488.UG.FTS.B,
28.98%,
2/07/25
..
896
892
991904867.UG.FTS.B,
29.45%,
2/07/25
..
208
137
991727371.UG.FTS.B,
29.46%,
2/07/25
..
156
159
991705149.UG.FTS.B,
29.47%,
2/07/25
..
38
14
991872197.UG.FTS.B,
29.47%,
2/07/25
..
183
39
991709575.UG.FTS.B,
29.48%,
2/07/25
..
344
351
991745671.UG.FTS.B,
29.48%,
2/07/25
..
63
64
991693038.UG.FTS.B,
29.49%,
2/07/25
..
2,700
2,753
991695755.UG.FTS.B,
29.49%,
2/07/25
..
240
241
991705076.UG.FTS.B,
29.49%,
2/07/25
..
570
577
991705451.UG.FTS.B,
29.49%,
2/07/25
..
363
359
991705958.UG.FTS.B,
29.49%,
2/07/25
..
863
881
991705974.UG.FTS.B,
29.49%,
2/07/25
..
1,070
1,071
991705983.UG.FTS.B,
29.49%,
2/07/25
..
158
161
991706291.UG.FTS.B,
29.49%,
2/07/25
..
204
25
991706339.UG.FTS.B,
29.49%,
2/07/25
..
19
19
991706403.UG.FTS.B,
29.49%,
2/07/25
..
477
103
991706407.UG.FTS.B,
29.49%,
2/07/25
..
320
318
991707047.UG.FTS.B,
29.49%,
2/07/25
..
19
8
991707049.UG.FTS.B,
29.49%,
2/07/25
..
233
236
991707186.UG.FTS.B,
29.49%,
2/07/25
..
422
422
991707394.UG.FTS.B,
29.49%,
2/07/25
..
834
828
991707574.UG.FTS.B,
29.49%,
2/07/25
..
305
301
991708039.UG.FTS.B,
29.49%,
2/07/25
..
508
519
991708338.UG.FTS.B,
29.49%,
2/07/25
..
142
145
991708832.UG.FTS.B,
29.49%,
2/07/25
..
161
164
991709327.UG.FTS.B,
29.49%,
2/07/25
..
409
418
991709591.UG.FTS.B,
29.49%,
2/07/25
..
50
43
991709608.UG.FTS.B,
29.49%,
2/07/25
..
340
339
991709721.UG.FTS.B,
29.49%,
2/07/25
..
109
14
991709722.UG.FTS.B,
29.49%,
2/07/25
..
712
726
991709884.UG.FTS.B,
29.49%,
2/07/25
..
937
955
991710141.UG.FTS.B,
29.49%,
2/07/25
..
68
69
991710253.UG.FTS.B,
29.49%,
2/07/25
..
57
58
991710309.UG.FTS.B,
29.49%,
2/07/25
..
14
14
991710479.UG.FTS.B,
29.49%,
2/07/25
..
91
6
991710655.UG.FTS.B,
29.49%,
2/07/25
..
1,838
1,883
991710674.UG.FTS.B,
29.49%,
2/07/25
..
77
78
991710709.UG.FTS.B,
29.49%,
2/07/25
..
185
188
991710764.UG.FTS.B,
29.49%,
2/07/25
..
355
24
991710835.UG.FTS.B,
29.49%,
2/07/25
..
230
234
991711259.UG.FTS.B,
29.49%,
2/07/25
..
198
202
991711386.UG.FTS.B,
29.49%,
2/07/25
..
167
12
991711893.UG.FTS.B,
29.49%,
2/07/25
..
18
18
991711922.UG.FTS.B,
29.49%,
2/07/25
..
146
149
991712449.UG.FTS.B,
29.49%,
2/07/25
..
205
208
991712587.UG.FTS.B,
29.49%,
2/07/25
..
691
695
991712867.UG.FTS.B,
29.49%,
2/07/25
..
956
945
991712892.UG.FTS.B,
29.49%,
2/07/25
..
643
656
991713180.UG.FTS.B,
29.49%,
2/07/25
..
2,239
2,287
991713198.UG.FTS.B,
29.49%,
2/07/25
..
83
84
991713851.UG.FTS.B,
29.49%,
2/07/25
..
126
128
991714795.UG.FTS.B,
29.49%,
2/07/25
..
13
13
991714825.UG.FTS.B,
29.49%,
2/07/25
..
98
99
991715086.UG.FTS.B,
29.49%,
2/07/25
..
163
166
991715322.UG.FTS.B,
29.49%,
2/07/25
..
126
86
991715818.UG.FTS.B,
29.49%,
2/07/25
..
145
148
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
167
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991716025.UG.FTS.B,
29.49%,
2/07/25
..
$
558
$
571
991716247.UG.FTS.B,
29.49%,
2/07/25
..
14
14
991716358.UG.FTS.B,
29.49%,
2/07/25
..
393
388
991716440.UG.FTS.B,
29.49%,
2/07/25
..
22
21
991717217.UG.FTS.B,
29.49%,
2/07/25
..
209
214
991717280.UG.FTS.B,
29.49%,
2/07/25
..
244
248
991717516.UG.FTS.B,
29.49%,
2/07/25
..
33
33
991717543.UG.FTS.B,
29.49%,
2/07/25
..
198
200
991717657.UG.FTS.B,
29.49%,
2/07/25
..
2,103
2,142
991718167.UG.FTS.B,
29.49%,
2/07/25
..
147
150
991718305.UG.FTS.B,
29.49%,
2/07/25
..
202
206
991718456.UG.FTS.B,
29.49%,
2/07/25
..
398
406
991719583.UG.FTS.B,
29.49%,
2/07/25
..
783
799
991720106.UG.FTS.B,
29.49%,
2/07/25
..
636
648
991720150.UG.FTS.B,
29.49%,
2/07/25
..
600
603
991720898.UG.FTS.B,
29.49%,
2/07/25
..
406
411
991721040.UG.FTS.B,
29.49%,
2/07/25
..
146
149
991721496.UG.FTS.B,
29.49%,
2/07/25
..
132
134
991723502.UG.FTS.B,
29.49%,
2/07/25
..
68
69
991723604.UG.FTS.B,
29.49%,
2/07/25
..
480
480
991724007.UG.FTS.B,
29.49%,
2/07/25
..
30
31
991724083.UG.FTS.B,
29.49%,
2/07/25
..
153
151
991724324.UG.FTS.B,
29.49%,
2/07/25
..
45
45
991724384.UG.FTS.B,
29.49%,
2/07/25
..
13
13
991726771.UG.FTS.B,
29.49%,
2/07/25
..
8
8
991726856.UG.FTS.B,
29.49%,
2/07/25
..
84
85
991728336.UG.FTS.B,
29.49%,
2/07/25
..
116
119
991728768.UG.FTS.B,
29.49%,
2/07/25
..
50
50
991728796.UG.FTS.B,
29.49%,
2/07/25
..
21
21
991728920.UG.FTS.B,
29.49%,
2/07/25
..
81
82
991729210.UG.FTS.B,
29.49%,
2/07/25
..
959
974
991729366.UG.FTS.B,
29.49%,
2/07/25
..
82
63
991729425.UG.FTS.B,
29.49%,
2/07/25
..
56
57
991729445.UG.FTS.B,
29.49%,
2/07/25
..
109
111
991729754.UG.FTS.B,
29.49%,
2/07/25
..
1,430
1,456
991729898.UG.FTS.B,
29.49%,
2/07/25
..
105
106
991730072.UG.FTS.B,
29.49%,
2/07/25
..
1,421
1,440
991730120.UG.FTS.B,
29.49%,
2/07/25
..
37
37
991730418.UG.FTS.B,
29.49%,
2/07/25
..
1,677
1,701
991730860.UG.FTS.B,
29.49%,
2/07/25
..
249
53
991731024.UG.FTS.B,
29.49%,
2/07/25
..
160
163
991732059.UG.FTS.B,
29.49%,
2/07/25
..
30
30
991732414.UG.FTS.B,
29.49%,
2/07/25
..
75
77
991732638.UG.FTS.B,
29.49%,
2/07/25
..
41
41
991733105.UG.FTS.B,
29.49%,
2/07/25
..
231
228
991733135.UG.FTS.B,
29.49%,
2/07/25
..
4,833
4,933
991733378.UG.FTS.B,
29.49%,
2/07/25
..
942
945
991733725.UG.FTS.B,
29.49%,
2/07/25
..
63
63
991734115.UG.FTS.B,
29.49%,
2/07/25
..
204
208
991734242.UG.FTS.B,
29.49%,
2/07/25
..
318
323
991734487.UG.FTS.B,
29.49%,
2/07/25
..
357
364
991734566.UG.FTS.B,
29.49%,
2/07/25
..
189
191
991734975.UG.FTS.B,
29.49%,
2/07/25
..
107
108
991735394.UG.FTS.B,
29.49%,
2/07/25
..
114
115
991735546.UG.FTS.B,
29.49%,
2/07/25
..
33
33
991735633.UG.FTS.B,
29.49%,
2/07/25
..
34
34
991735751.UG.FTS.B,
29.49%,
2/07/25
..
161
164
991735777.UG.FTS.B,
29.49%,
2/07/25
..
74
75
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991735915.UG.FTS.B,
29.49%,
2/07/25
..
$
373
$
380
991736159.UG.FTS.B,
29.49%,
2/07/25
..
0
0
991736571.UG.FTS.B,
29.49%,
2/07/25
..
508
518
991736815.UG.FTS.B,
29.49%,
2/07/25
..
1,665
1,704
991736846.UG.FTS.B,
29.49%,
2/07/25
..
31
31
991736857.UG.FTS.B,
29.49%,
2/07/25
..
1,643
1,677
991737147.UG.FTS.B,
29.49%,
2/07/25
..
107
109
991737666.UG.FTS.B,
29.49%,
2/07/25
..
356
360
991738244.UG.FTS.B,
29.49%,
2/07/25
..
665
659
991738742.UG.FTS.B,
29.49%,
2/07/25
..
92
94
991738948.UG.FTS.B,
29.49%,
2/07/25
..
22
9
991739032.UG.FTS.B,
29.49%,
2/07/25
..
24
24
991739076.UG.FTS.B,
29.49%,
2/07/25
..
15
15
991740078.UG.FTS.B,
29.49%,
2/07/25
..
1,366
1,362
991740733.UG.FTS.B,
29.49%,
2/07/25
..
74
73
991741355.UG.FTS.B,
29.49%,
2/07/25
..
95
97
991741747.UG.FTS.B,
29.49%,
2/07/25
..
694
708
991743169.UG.FTS.B,
29.49%,
2/07/25
..
28
28
991743733.UG.FTS.B,
29.49%,
2/07/25
..
146
149
991744573.UG.FTS.B,
29.49%,
2/07/25
..
51
50
991745513.UG.FTS.B,
29.49%,
2/07/25
..
460
468
991745593.UG.FTS.B,
29.49%,
2/07/25
..
654
667
991745877.UG.FTS.B,
29.49%,
2/07/25
..
358
366
991746220.UG.FTS.B,
29.49%,
2/07/25
..
334
341
991747234.UG.FTS.B,
29.49%,
2/07/25
..
57
58
991747662.UG.FTS.B,
29.49%,
2/07/25
..
396
404
991747738.UG.FTS.B,
29.49%,
2/07/25
..
634
641
991747860.UG.FTS.B,
29.49%,
2/07/25
..
82
83
991748947.UG.FTS.B,
29.49%,
2/07/25
..
67
66
991749490.UG.FTS.B,
29.49%,
2/07/25
..
839
855
991749700.UG.FTS.B,
29.49%,
2/07/25
..
91
93
991750239.UG.FTS.B,
29.49%,
2/07/25
..
61
51
991751851.UG.FTS.B,
29.49%,
2/07/25
..
90
91
991752198.UG.FTS.B,
29.49%,
2/07/25
..
12
12
991754591.UG.FTS.B,
29.49%,
2/07/25
..
151
153
991755174.UG.FTS.B,
29.49%,
2/07/25
..
209
213
991756073.UG.FTS.B,
29.49%,
2/07/25
..
293
298
991759359.UG.FTS.B,
29.49%,
2/07/25
..
725
739
991759641.UG.FTS.B,
29.49%,
2/07/25
..
190
193
991759993.UG.FTS.B,
29.49%,
2/07/25
..
285
291
991760081.UG.FTS.B,
29.49%,
2/07/25
..
187
190
991760619.UG.FTS.B,
29.49%,
2/07/25
..
28
11
991761102.UG.FTS.B,
29.49%,
2/07/25
..
288
294
991761633.UG.FTS.B,
29.49%,
2/07/25
..
160
163
991762218.UG.FTS.B,
29.49%,
2/07/25
..
297
301
991762808.UG.FTS.B,
29.49%,
2/07/25
..
102
104
991763486.UG.FTS.B,
29.49%,
2/07/25
..
82
81
991763762.UG.FTS.B,
29.49%,
2/07/25
..
101
103
991763819.UG.FTS.B,
29.49%,
2/07/25
..
26
11
991763879.UG.FTS.B,
29.49%,
2/07/25
..
16
17
991765277.UG.FTS.B,
29.49%,
2/07/25
..
53
53
991765430.UG.FTS.B,
29.49%,
2/07/25
..
45
45
991766156.UG.FTS.B,
29.49%,
2/07/25
..
69
68
991766666.UG.FTS.B,
29.49%,
2/07/25
..
114
112
991766779.UG.FTS.B,
29.49%,
2/07/25
..
1
1
991767510.UG.FTS.B,
29.49%,
2/07/25
..
69
69
991767771.UG.FTS.B,
29.49%,
2/07/25
..
658
671
991769715.UG.FTS.B,
29.49%,
2/07/25
..
381
388
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
168
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991769839.UG.FTS.B,
29.49%,
2/07/25
..
$
53
$
54
991770508.UG.FTS.B,
29.49%,
2/07/25
..
374
383
991770714.UG.FTS.B,
29.49%,
2/07/25
..
186
190
991770778.UG.FTS.B,
29.49%,
2/07/25
..
96
98
991771123.UG.FTS.B,
29.49%,
2/07/25
..
254
257
991771328.UG.FTS.B,
29.49%,
2/07/25
..
212
215
991771961.UG.FTS.B,
29.49%,
2/07/25
..
193
196
991773370.UG.FTS.B,
29.49%,
2/07/25
..
243
248
991773390.UG.FTS.B,
29.49%,
2/07/25
..
4,893
5,007
991774019.UG.FTS.B,
29.49%,
2/07/25
..
65
66
991774573.UG.FTS.B,
29.49%,
2/07/25
..
165
163
991776449.UG.FTS.B,
29.49%,
2/07/25
..
3,139
3,136
991777257.UG.FTS.B,
29.49%,
2/07/25
..
175
178
991778724.UG.FTS.B,
29.49%,
2/07/25
..
228
231
991778729.UG.FTS.B,
29.49%,
2/07/25
..
104
106
991778741.UG.FTS.B,
29.49%,
2/07/25
..
926
913
991780427.UG.FTS.B,
29.49%,
2/07/25
..
2,768
733
991781324.UG.FTS.B,
29.49%,
2/07/25
..
161
164
991782047.UG.FTS.B,
29.49%,
2/07/25
..
386
394
991782212.UG.FTS.B,
29.49%,
2/07/25
..
444
447
991782217.UG.FTS.B,
29.49%,
2/07/25
..
138
9
991783819.UG.FTS.B,
29.49%,
2/07/25
..
393
402
991783921.UG.FTS.B,
29.49%,
2/07/25
..
555
117
991784149.UG.FTS.B,
29.49%,
2/07/25
..
681
695
991784501.UG.FTS.B,
29.49%,
2/07/25
..
112
114
991787156.UG.FTS.B,
29.49%,
2/07/25
..
82
83
991787510.UG.FTS.B,
29.49%,
2/07/25
..
187
189
991787617.UG.FTS.B,
29.49%,
2/07/25
..
114
115
991787740.UG.FTS.B,
29.49%,
2/07/25
..
10
10
991788681.UG.FTS.B,
29.49%,
2/07/25
..
15
15
991788685.UG.FTS.B,
29.49%,
2/07/25
..
953
954
991789088.UG.FTS.B,
29.49%,
2/07/25
..
284
289
991790838.UG.FTS.B,
29.49%,
2/07/25
..
810
825
991790908.UG.FTS.B,
29.49%,
2/07/25
..
820
833
991791306.UG.FTS.B,
29.49%,
2/07/25
..
208
209
991791504.UG.FTS.B,
29.49%,
2/07/25
..
115
117
991792140.UG.FTS.B,
29.49%,
2/07/25
..
43
43
991792553.UG.FTS.B,
29.49%,
2/07/25
..
363
366
991792599.UG.FTS.B,
29.49%,
2/07/25
..
1,071
230
991793731.UG.FTS.B,
29.49%,
2/07/25
..
15
15
991794167.UG.FTS.B,
29.49%,
2/07/25
..
58
59
991794594.UG.FTS.B,
29.49%,
2/07/25
..
97
97
991795473.UG.FTS.B,
29.49%,
2/07/25
..
675
687
991795942.UG.FTS.B,
29.49%,
2/07/25
..
42
42
991796624.UG.FTS.B,
29.49%,
2/07/25
..
698
713
991798099.UG.FTS.B,
29.49%,
2/07/25
..
14
14
991799243.UG.FTS.B,
29.49%,
2/07/25
..
16
16
991799844.UG.FTS.B,
29.49%,
2/07/25
..
99
100
991799981.UG.FTS.B,
29.49%,
2/07/25
..
196
197
991805475.UG.FTS.B,
29.49%,
2/07/25
..
6
6
991805572.UG.FTS.B,
29.49%,
2/07/25
..
49
49
991805974.UG.FTS.B,
29.49%,
2/07/25
..
13
13
991807111.UG.FTS.B,
29.49%,
2/07/25
..
239
236
991808521.UG.FTS.B,
29.49%,
2/07/25
..
667
675
991808743.UG.FTS.B,
29.49%,
2/07/25
..
25
25
991809177.UG.FTS.B,
29.49%,
2/07/25
..
424
425
991809194.UG.FTS.B,
29.49%,
2/07/25
..
5
5
991809318.UG.FTS.B,
29.49%,
2/07/25
..
158
160
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991809911.UG.FTS.B,
29.49%,
2/07/25
..
$
74
$
73
991810854.UG.FTS.B,
29.49%,
2/07/25
..
894
909
991813864.UG.FTS.B,
29.49%,
2/07/25
..
85
86
991814673.UG.FTS.B,
29.49%,
2/07/25
..
83
84
991815028.UG.FTS.B,
29.49%,
2/07/25
..
90
89
991815263.UG.FTS.B,
29.49%,
2/07/25
..
395
404
991815974.UG.FTS.B,
29.49%,
2/07/25
..
134
136
991817511.UG.FTS.B,
29.49%,
2/07/25
..
6
6
991818057.UG.FTS.B,
29.49%,
2/07/25
..
204
206
991819733.UG.FTS.B,
29.49%,
2/07/25
..
73
73
991819951.UG.FTS.B,
29.49%,
2/07/25
..
138
29
991822050.UG.FTS.B,
29.49%,
2/07/25
..
47
47
991824448.UG.FTS.B,
29.49%,
2/07/25
..
15
15
991826734.UG.FTS.B,
29.49%,
2/07/25
..
54
54
991827340.UG.FTS.B,
29.49%,
2/07/25
..
1,467
1,504
991828168.UG.FTS.B,
29.49%,
2/07/25
..
21
21
991829607.UG.FTS.B,
29.49%,
2/07/25
..
32
32
991831480.UG.FTS.B,
29.49%,
2/07/25
..
484
105
991832087.UG.FTS.B,
29.49%,
2/07/25
..
155
158
991832403.UG.FTS.B,
29.49%,
2/07/25
..
68
68
991833579.UG.FTS.B,
29.49%,
2/07/25
..
145
147
991834751.UG.FTS.B,
29.49%,
2/07/25
..
85
86
991835035.UG.FTS.B,
29.49%,
2/07/25
..
290
295
991835670.UG.FTS.B,
29.49%,
2/07/25
..
193
196
991836016.UG.FTS.B,
29.49%,
2/07/25
..
4,331
4,410
991836017.UG.FTS.B,
29.49%,
2/07/25
..
131
133
991836204.UG.FTS.B,
29.49%,
2/07/25
..
800
524
991837440.UG.FTS.B,
29.49%,
2/07/25
..
902
921
991841270.UG.FTS.B,
29.49%,
2/07/25
..
56
57
991842138.UG.FTS.B,
29.49%,
2/07/25
..
271
278
991842171.UG.FTS.B,
29.49%,
2/07/25
..
112
110
991842816.UG.FTS.B,
29.49%,
2/07/25
..
240
245
991843151.UG.FTS.B,
29.49%,
2/07/25
..
928
947
991843726.UG.FTS.B,
29.49%,
2/07/25
..
725
740
991843750.UG.FTS.B,
29.49%,
2/07/25
..
94
95
991845816.UG.FTS.B,
29.49%,
2/07/25
..
20
20
991846574.UG.FTS.B,
29.49%,
2/07/25
..
58
59
991848358.UG.FTS.B,
29.49%,
2/07/25
..
335
341
991848794.UG.FTS.B,
29.49%,
2/07/25
..
91
92
991851198.UG.FTS.B,
29.49%,
2/07/25
..
21
21
991852183.UG.FTS.B,
29.49%,
2/07/25
..
129
129
991852313.UG.FTS.B,
29.49%,
2/07/25
..
152
151
991852346.UG.FTS.B,
29.49%,
2/07/25
..
242
246
991852677.UG.FTS.B,
29.49%,
2/07/25
..
102
104
991853322.UG.FTS.B,
29.49%,
2/07/25
..
11
11
991853938.UG.FTS.B,
29.49%,
2/07/25
..
2,900
2,952
991855091.UG.FTS.B,
29.49%,
2/07/25
..
164
167
991856038.UG.FTS.B,
29.49%,
2/07/25
..
82
84
991857024.UG.FTS.B,
29.49%,
2/07/25
..
335
333
991857497.UG.FTS.B,
29.49%,
2/07/25
..
25
11
991858094.UG.FTS.B,
29.49%,
2/07/25
..
289
293
991858162.UG.FTS.B,
29.49%,
2/07/25
..
27
11
991860322.UG.FTS.B,
29.49%,
2/07/25
..
180
184
991864403.UG.FTS.B,
29.49%,
2/07/25
..
2,480
2,496
991868612.UG.FTS.B,
29.49%,
2/07/25
..
327
334
991868656.UG.FTS.B,
29.49%,
2/07/25
..
212
216
991870198.UG.FTS.B,
29.49%,
2/07/25
..
12
12
991875316.UG.FTS.B,
29.49%,
2/07/25
..
7
7
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
169
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991876105.UG.FTS.B,
29.49%,
2/07/25
..
$
453
$
448
991880489.UG.FTS.B,
29.49%,
2/07/25
..
130
87
991883200.UG.FTS.B,
29.49%,
2/07/25
..
663
677
991883658.UG.FTS.B,
29.49%,
2/07/25
..
239
244
991884754.UG.FTS.B,
29.49%,
2/07/25
..
29
30
991885250.UG.FTS.B,
29.49%,
2/07/25
..
28
28
991885580.UG.FTS.B,
29.49%,
2/07/25
..
52
52
991887494.UG.FTS.B,
29.49%,
2/07/25
..
130
130
991887497.UG.FTS.B,
29.49%,
2/07/25
..
1,067
1,075
991889105.UG.FTS.B,
29.49%,
2/07/25
..
48
49
991889654.UG.FTS.B,
29.49%,
2/07/25
..
57
57
991895165.UG.FTS.B,
29.49%,
2/07/25
..
250
247
991895721.UG.FTS.B,
29.49%,
2/07/25
..
272
273
991896283.UG.FTS.B,
29.49%,
2/07/25
..
1,194
1,204
991897115.UG.FTS.B,
29.49%,
2/07/25
..
578
583
991902084.UG.FTS.B,
29.49%,
2/07/25
..
38
38
991905008.UG.FTS.B,
29.49%,
2/07/25
..
45
46
991905127.UG.FTS.B,
29.49%,
2/07/25
..
31
12
991905470.UG.FTS.B,
29.49%,
2/07/25
..
48
16
991906662.UG.FTS.B,
29.49%,
2/07/25
..
52
52
991906939.UG.FTS.B,
29.49%,
2/07/25
..
1,251
1,249
991908268.UG.FTS.B,
29.49%,
2/07/25
..
192
192
991910701.UG.FTS.B,
29.49%,
2/07/25
..
59
59
991910987.UG.FTS.B,
29.49%,
2/07/25
..
33
33
991912493.UG.FTS.B,
29.49%,
2/07/25
..
1,030
1,033
991913150.UG.FTS.B,
29.49%,
2/07/25
..
52
52
991913264.UG.FTS.B,
29.49%,
2/07/25
..
1,375
296
991913870.UG.FTS.B,
29.49%,
2/07/25
..
2,339
2,350
991914240.UG.FTS.B,
29.49%,
2/07/25
..
519
512
991918574.UG.FTS.B,
29.49%,
2/07/25
..
413
415
991918681.UG.FTS.B,
29.49%,
2/07/25
..
505
509
991918743.UG.FTS.B,
29.49%,
2/07/25
..
865
865
991919008.UG.FTS.B,
29.49%,
2/07/25
..
46
47
991919279.UG.FTS.B,
29.49%,
2/07/25
..
21
21
991920075.UG.FTS.B,
29.49%,
2/07/25
..
20
20
991920887.UG.FTS.B,
29.49%,
2/07/25
..
121
121
991921344.UG.FTS.B,
29.49%,
2/07/25
..
55
55
991921738.UG.FTS.B,
29.49%,
2/07/25
..
41
42
991924425.UG.FTS.B,
29.49%,
2/07/25
..
174
113
991924576.UG.FTS.B,
29.49%,
2/07/25
..
267
268
991924888.UG.FTS.B,
29.49%,
2/07/25
..
178
178
991925769.UG.FTS.B,
29.49%,
2/07/25
..
32
33
991927085.UG.FTS.B,
29.49%,
2/07/25
..
192
194
991928399.UG.FTS.B,
29.49%,
2/07/25
..
212
27
991928759.UG.FTS.B,
29.49%,
2/07/25
..
245
242
991930298.UG.FTS.B,
29.49%,
2/07/25
..
29
29
991930808.UG.FTS.B,
29.49%,
2/07/25
..
887
877
991931872.UG.FTS.B,
29.49%,
2/07/25
..
17
17
991932639.UG.FTS.B,
29.49%,
2/07/25
..
58
8
991936118.UG.FTS.B,
29.49%,
2/07/25
..
3
3
991936377.UG.FTS.B,
29.49%,
2/07/25
..
7
7
991740615.UG.FTS.B,
29.99%,
2/07/25
..
146
31
991782534.UG.FTS.B,
14.97%,
2/08/25
..
1,026
1,056
991714655.UG.FTS.B,
14.98%,
2/08/25
..
6,991
7,186
991783643.UG.FTS.B,
14.98%,
2/08/25
..
1,919
1,973
991895441.UG.FTS.B,
14.98%,
2/08/25
..
978
175
991946691.UG.FTS.B,
14.98%,
2/08/25
..
113
114
991711757.UG.FTS.B,
15.97%,
2/08/25
..
599
616
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991729261.UG.FTS.B,
15.97%,
2/08/25
..
$
700
$
720
991800861.UG.FTS.B,
15.97%,
2/08/25
..
22
22
991802379.UG.FTS.B,
15.97%,
2/08/25
..
480
494
991834646.UG.FTS.B,
15.97%,
2/08/25
..
2,588
2,661
991855467.UG.FTS.B,
15.97%,
2/08/25
..
52
53
991904951.UG.FTS.B,
15.97%,
2/08/25
..
331
338
991908489.UG.FTS.B,
15.97%,
2/08/25
..
478
491
991917251.UG.FTS.B,
15.97%,
2/08/25
..
382
390
991723142.UG.FTS.B,
16.99%,
2/08/25
..
483
496
991771363.UG.FTS.B,
16.99%,
2/08/25
..
2,406
2,474
991784207.UG.FTS.B,
16.99%,
2/08/25
..
289
297
991894055.UG.FTS.B,
16.99%,
2/08/25
..
288
296
991905481.UG.FTS.B,
16.99%,
2/08/25
..
196
200
991721411.UG.FTS.B,
17.99%,
2/08/25
..
963
989
991726915.UG.FTS.B,
17.99%,
2/08/25
..
49
15
991729538.UG.FTS.B,
17.99%,
2/08/25
..
3,380
3,474
991731306.UG.FTS.B,
17.99%,
2/08/25
..
14,945
15,358
991746485.UG.FTS.B,
17.99%,
2/08/25
..
85
87
991868983.UG.FTS.B,
17.99%,
2/08/25
..
392
403
991717470.UG.FTS.B,
19.21%,
2/08/25
..
502
514
991723395.UG.FTS.B,
19.21%,
2/08/25
..
194
200
991715823.UG.FTS.B,
19.8%,
2/08/25
...
255
258
991729717.UG.FTS.B,
19.8%,
2/08/25
...
70
72
991716580.UG.FTS.B,
20.46%,
2/08/25
..
614
630
991724960.UG.FTS.B,
20.46%,
2/08/25
..
350
358
991753267.UG.FTS.B,
20.97%,
2/08/25
..
596
610
991716118.UG.FTS.B,
21.46%,
2/08/25
..
836
163
991721352.UG.FTS.B,
21.46%,
2/08/25
..
1,683
327
991726248.UG.FTS.B,
21.46%,
2/08/25
..
187
191
991716805.UG.FTS.B,
22.97%,
2/08/25
..
458
468
991752542.UG.FTS.B,
25.95%,
2/08/25
..
594
605
991722256.UG.FTS.B,
14.98%,
2/09/25
..
1,445
1,486
991809543.UG.FTS.B,
14.98%,
2/09/25
..
314
323
991724869.UG.FTS.B,
15%,
2/09/25
.....
1,232
1,266
991746108.UG.FTS.B,
15%,
2/09/25
.....
410
421
991746306.UG.FTS.B,
15%,
2/09/25
.....
2,377
2,437
991862382.UG.FTS.B,
15%,
2/09/25
.....
145
149
991908452.UG.FTS.B,
15%,
2/09/25
.....
2,865
2,945
991929779.UG.FTS.B,
15%,
2/09/25
.....
96
99
991737086.UG.FTS.B,
15.97%,
2/09/25
..
310
319
991749134.UG.FTS.B,
15.97%,
2/09/25
..
4,815
4,954
991755733.UG.FTS.B,
15.97%,
2/09/25
..
48
49
991775066.UG.FTS.B,
15.97%,
2/09/25
..
144
148
991781627.UG.FTS.B,
15.97%,
2/09/25
..
528
543
991851750.UG.FTS.B,
15.97%,
2/09/25
..
278
286
991719973.UG.FTS.B,
16.99%,
2/09/25
..
290
298
991721989.UG.FTS.B,
16.99%,
2/09/25
..
579
596
991778289.UG.FTS.B,
16.99%,
2/09/25
..
1,107
1,138
991783787.UG.FTS.B,
16.99%,
2/09/25
..
962
990
991784826.UG.FTS.B,
16.99%,
2/09/25
..
1,022
1,044
991863273.UG.FTS.B,
16.99%,
2/09/25
..
1,438
1,478
991727308.UG.FTS.B,
17.97%,
2/09/25
..
8
8
991741247.UG.FTS.B,
17.97%,
2/09/25
..
973
1,000
991724932.UG.FTS.B,
17.99%,
2/09/25
..
86
88
991732999.UG.FTS.B,
17.99%,
2/09/25
..
229
231
991734659.UG.FTS.B,
17.99%,
2/09/25
..
874
898
991764270.UG.FTS.B,
17.99%,
2/09/25
..
495
509
991785523.UG.FTS.B,
17.99%,
2/09/25
..
191
196
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
170
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991806884.UG.FTS.B,
17.99%,
2/09/25
..
$
223
$
229
991830380.UG.FTS.B,
17.99%,
2/09/25
..
213
218
991867276.UG.FTS.B,
17.99%,
2/09/25
..
264
268
991872220.UG.FTS.B,
17.99%,
2/09/25
..
1,206
1,234
991693195.UG.FTS.B,
29.49%,
3/22/25
..
185
125
991732334.UG.FTS.B,
29.49%,
4/07/25
..
217
147
990603659.UG.FTS.B,
22.67%,
8/22/26
..
11,894
12,289
990842028.UG.FTS.B,
22.67%,
9/21/26
..
2,378
2,445
991658250.UG.FTS.B,
16.99%,
1/20/27
..
2,385
2,420
991696263.UG.FTS.B,
18.98%,
1/20/27
..
565
566
991607046.UG.FTS.B,
21.99%,
1/20/27
..
4,423
4,513
991630410.UG.FTS.B,
22.36%,
1/26/27
..
1,048
1,082
991784156.UG.FTS.B,
22.36%,
1/26/27
..
784
431
991624255.UG.FTS.B,
16.99%,
1/28/27
..
282
291
991611832.UG.FTS.B,
16.99%,
1/29/27
..
1,379
1,412
991624113.UG.FTS.B,
17.99%,
1/29/27
..
1,291
1,312
991610886.UG.FTS.B,
18.98%,
1/29/27
..
2,398
2,478
991664785.UG.FTS.B,
18.98%,
1/29/27
..
322
333
991859032.UG.FTS.B,
16.99%,
1/31/27
..
56
58
991678457.UG.FTS.B,
19.99%,
1/31/27
..
534
553
991663324.UG.FTS.B,
22.36%,
1/31/27
..
187
192
991676761.UG.FTS.B,
16.99%,
2/02/27
..
2,350
2,365
991721939.UG.FTS.B,
16.99%,
2/02/27
..
1,378
1,417
991734117.UG.FTS.B,
17.99%,
2/02/27
..
584
600
991734377.UG.FTS.B,
17.99%,
2/02/27
..
101
103
991684567.UG.FTS.B,
15.99%,
2/03/27
..
538
553
991894965.UG.FTS.B,
16.99%,
2/03/27
..
5,855
5,973
991649343.UG.FTS.B,
28.98%,
2/17/27
..
–
–
991729693.UG.FTS.B,
28.98%,
2/17/27
..
–
–
991615148.UG.FTS.B,
29.49%,
2/17/27
..
–
–
991798578.UG.FTS.B,
29.49%,
2/18/27
..
–
–
991809578.UG.FTS.B,
15.97%,
2/20/27
..
–
–
991698689.UG.FTS.B,
28.98%,
2/20/27
..
–
–
991788603.UG.FTS.B,
29.49%,
2/20/27
..
–
–
991588921.UG.FTS.B,
29.49%,
2/22/27
..
–
–
991596716.UG.FTS.B,
29.49%,
2/22/27
..
–
–
991697854.UG.FTS.B,
28.98%,
2/23/27
..
–
–
991620282.UG.FTS.B,
29.49%,
2/24/27
..
–
–
991680207.UG.FTS.B,
29.49%,
2/24/27
..
–
–
991790453.UG.FTS.B,
22.97%,
3/05/27
..
–
–
991701716.UG.FTS.B,
29.49%,
3/05/27
..
8
9
991914738.UG.FTS.B,
29.49%,
3/05/27
..
–
–
991919978.UG.FTS.B,
29.49%,
3/05/27
..
–
–
991715282.UG.FTS.B,
29.49%,
3/06/27
..
5
5
991883403.UG.FTS.B,
29.49%,
3/06/27
..
0
0
991936111.UG.FTS.B,
29.49%,
3/06/27
..
–
–
991709783.UG.FTS.B,
28.48%,
3/07/27
..
–
–
991823142.UG.FTS.B,
29.48%,
3/07/27
..
–
–
991713395.UG.FTS.B,
29.49%,
3/07/27
..
–
–
991763220.UG.FTS.B,
29.49%,
3/07/27
..
17
17
991904002.UG.FTS.B,
29.49%,
3/07/27
..
4
4
991681087.UG.FTS.B,
28.98%,
3/17/27
..
0
0
991567877.UG.FTS.B,
29.49%,
3/17/27
..
–
–
991732498.UG.FTS.B,
29.49%,
3/18/27
..
–
–
991750559.UG.FTS.B,
21.48%,
3/19/27
..
–
–
991638818.UG.FTS.B,
28.98%,
3/19/27
..
0
0
991779985.UG.FTS.B,
28.98%,
3/19/27
..
–
–
991635793.UG.FTS.B,
27.99%,
3/20/27
..
9
1
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991636909.UG.FTS.B,
29.49%,
3/21/27
..
$
5
$
0
991762668.UG.FTS.B,
29.49%,
3/21/27
..
9
1
991738317.UG.FTS.B,
19.96%,
3/22/27
..
6
6
991697928.UG.FTS.B,
28.98%,
3/23/27
..
–
–
991715184.UG.FTS.B,
19.99%,
3/24/27
..
–
–
991727450.UG.FTS.B,
27.99%,
3/24/27
..
0
0
991787639.UG.FTS.B,
29.49%,
3/24/27
..
8
1
991808246.UG.FTS.B,
29.49%,
3/24/27
..
0
0
991711901.UG.FTS.B,
17.49%,
4/02/27
..
–
–
991911647.UG.FTS.B,
28.48%,
4/04/27
..
–
–
991915368.UG.FTS.B,
29.49%,
4/04/27
..
1
1
991681811.UG.FTS.B,
28.98%,
4/05/27
..
0
0
991710044.UG.FTS.B,
29.49%,
4/05/27
..
6
1
991733536.UG.FTS.B,
29.49%,
4/05/27
..
–
–
991758534.UG.FTS.B,
29.49%,
4/05/27
..
1
1
991874787.UG.FTS.B,
29.49%,
4/05/27
..
9
1
991930235.UG.FTS.B,
29.49%,
4/05/27
..
0
0
991706787.UG.FTS.B,
29.49%,
4/06/27
..
1
1
991870524.UG.FTS.B,
29.49%,
4/06/27
..
0
0
991915147.UG.FTS.B,
21.98%,
4/07/27
..
–
–
991757784.UG.FTS.B,
28.98%,
4/07/27
..
–
–
991816335.UG.FTS.B,
29.49%,
4/07/27
..
–
–
991838891.UG.FTS.B,
29.49%,
4/07/27
..
0
0
991561540.UG.FTS.B,
28.98%,
4/17/27
..
–
–
991578987.UG.FTS.B,
28.98%,
4/17/27
..
1
1
991785018.UG.FTS.B,
28.98%,
4/17/27
..
–
–
991548049.UG.FTS.B,
29.49%,
4/17/27
..
0
0
991619761.UG.FTS.B,
29.49%,
4/17/27
..
0
0
991697511.UG.FTS.B,
29.49%,
4/17/27
..
8
8
991732828.UG.FTS.B,
29.49%,
4/17/27
..
–
–
991753910.UG.FTS.B,
29.49%,
4/17/27
..
10
1
991758858.UG.FTS.B,
29.49%,
4/17/27
..
0
0
991763282.UG.FTS.B,
29.49%,
4/17/27
..
–
–
991695707.UG.FTS.B,
29.49%,
4/18/27
..
0
0
991734811.UG.FTS.B,
29.49%,
4/18/27
..
2
2
991745741.UG.FTS.B,
29.49%,
4/18/27
..
–
–
991734556.UG.FTS.B,
28.98%,
4/19/27
..
7
1
991754104.UG.FTS.B,
28.98%,
4/20/27
..
10
1
991756695.UG.FTS.B,
29.49%,
4/20/27
..
6
1
991653485.UG.FTS.B,
26.44%,
4/21/27
..
9
1
991629460.UG.FTS.B,
29.49%,
4/21/27
..
0
0
991633395.UG.FTS.B,
29.49%,
4/21/27
..
–
–
991662345.UG.FTS.B,
29.49%,
4/21/27
..
0
0
991795777.UG.FTS.B,
23.95%,
4/22/27
..
–
–
991662195.UG.FTS.B,
29.48%,
4/22/27
..
0
0
991698521.UG.FTS.B,
29.49%,
4/22/27
..
–
–
991789129.UG.FTS.B,
29.49%,
4/22/27
..
6
6
991808764.UG.FTS.B,
29.49%,
4/22/27
..
10
10
991824667.UG.FTS.B,
29.49%,
4/22/27
..
–
–
991650399.UG.FTS.B,
29.49%,
4/23/27
..
10
1
991692138.UG.FTS.B,
29.49%,
4/23/27
..
0
0
991796193.UG.FTS.B,
28.98%,
4/24/27
..
11
1
991717432.UG.FTS.B,
29.49%,
4/24/27
..
–
–
991736045.UG.FTS.B,
29.49%,
4/24/27
..
11
0
991789231.UG.FTS.B,
29.49%,
4/24/27
..
–
–
991645981.UG.FTS.B,
19.96%,
4/29/27
..
4
5
991678792.UG.FTS.B,
21.98%,
4/29/27
..
4
4
991711601.UG.FTS.B,
15%,
5/02/27
.....
0
0
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
171
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991919206.UG.FTS.B,
29.48%,
5/04/27
..
$
4
$
2
991899781.UG.FTS.B,
29.49%,
5/04/27
..
0
0
991909408.UG.FTS.B,
29.49%,
5/04/27
..
6
3
991911922.UG.FTS.B,
29.49%,
5/04/27
..
3
3
991891913.UG.FTS.B,
19.99%,
5/05/27
..
0
0
991738536.UG.FTS.B,
21.48%,
5/05/27
..
5
5
991850271.UG.FTS.B,
21.98%,
5/05/27
..
0
0
991859095.UG.FTS.B,
25.94%,
5/05/27
..
1
1
991806558.UG.FTS.B,
28.48%,
5/05/27
..
0
0
991850769.UG.FTS.B,
28.48%,
5/05/27
..
1
1
991776991.UG.FTS.B,
28.98%,
5/05/27
..
3
3
991806750.UG.FTS.B,
28.98%,
5/05/27
..
1
1
991911594.UG.FTS.B,
29.48%,
5/05/27
..
1
1
991697717.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991709421.UG.FTS.B,
29.49%,
5/05/27
..
13
1
991741449.UG.FTS.B,
29.49%,
5/05/27
..
1
1
991743109.UG.FTS.B,
29.49%,
5/05/27
..
2
2
991777464.UG.FTS.B,
29.49%,
5/05/27
..
4
4
991781803.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991793748.UG.FTS.B,
29.49%,
5/05/27
..
5
5
991798164.UG.FTS.B,
29.49%,
5/05/27
..
5
5
991818001.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991831076.UG.FTS.B,
29.49%,
5/05/27
..
9
5
991861707.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991867978.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991913491.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991919428.UG.FTS.B,
29.49%,
5/05/27
..
0
0
991708422.UG.FTS.B,
21.48%,
5/06/27
..
3
3
991903706.UG.FTS.B,
28.48%,
5/06/27
..
2
2
991706318.UG.FTS.B,
28.98%,
5/06/27
..
1
1
991753737.UG.FTS.B,
28.98%,
5/06/27
..
0
0
991704970.UG.FTS.B,
29.49%,
5/06/27
..
10
1
991711298.UG.FTS.B,
29.49%,
5/06/27
..
0
0
991727282.UG.FTS.B,
29.49%,
5/06/27
..
4
4
991728801.UG.FTS.B,
29.49%,
5/06/27
..
3
3
991736041.UG.FTS.B,
29.49%,
5/06/27
..
0
0
991746943.UG.FTS.B,
29.49%,
5/06/27
..
9
4
991755837.UG.FTS.B,
29.49%,
5/06/27
..
0
0
991769830.UG.FTS.B,
29.49%,
5/06/27
..
4
3
991823036.UG.FTS.B,
29.49%,
5/06/27
..
0
0
991842615.UG.FTS.B,
29.49%,
5/06/27
..
5
2
991870610.UG.FTS.B,
29.49%,
5/06/27
..
11
1
991876916.UG.FTS.B,
29.49%,
5/06/27
..
5
5
991916899.UG.FTS.B,
29.49%,
5/06/27
..
1
1
991924386.UG.FTS.B,
29.49%,
5/06/27
..
4
4
991932599.UG.FTS.B,
29.49%,
5/06/27
..
3
3
991909687.UG.FTS.B,
19.99%,
5/07/27
..
0
0
991798424.UG.FTS.B,
27.99%,
5/07/27
..
1
1
991850712.UG.FTS.B,
28.98%,
5/07/27
..
4
4
991821849.UG.FTS.B,
29.48%,
5/07/27
..
3
3
991714014.UG.FTS.B,
29.49%,
5/07/27
..
3
3
991751093.UG.FTS.B,
29.49%,
5/07/27
..
0
0
991767072.UG.FTS.B,
29.49%,
5/07/27
..
–
–
991770671.UG.FTS.B,
29.49%,
5/07/27
..
1
1
991779626.UG.FTS.B,
29.49%,
5/07/27
..
5
3
991781550.UG.FTS.B,
29.49%,
5/07/27
..
0
0
991855962.UG.FTS.B,
29.49%,
5/07/27
..
11
1
991879819.UG.FTS.B,
29.49%,
5/07/27
..
0
0
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991902288.UG.FTS.B,
29.49%,
5/07/27
..
$
1
$
1
991911483.UG.FTS.B,
29.49%,
5/07/27
..
0
0
991920879.UG.FTS.B,
15%,
5/08/27
.....
1
1
991803599.UG.FTS.B,
15.97%,
5/09/27
..
2
2
991781696.UG.FTS.B,
28.98%,
5/16/27
..
5
5
991777356.UG.FTS.B,
29.49%,
5/16/27
..
1
1
991581155.UG.FTS.B,
28.48%,
5/17/27
..
11
2
991714842.UG.FTS.B,
28.98%,
5/17/27
..
2
2
991554163.UG.FTS.B,
29.47%,
5/17/27
..
0
0
991623797.UG.FTS.B,
29.47%,
5/17/27
..
0
0
991553917.UG.FTS.B,
29.49%,
5/17/27
..
4
4
991577900.UG.FTS.B,
29.49%,
5/17/27
..
2
2
991597528.UG.FTS.B,
29.49%,
5/17/27
..
4
4
991622322.UG.FTS.B,
29.49%,
5/17/27
..
6
6
991630661.UG.FTS.B,
29.49%,
5/17/27
..
1
1
991651406.UG.FTS.B,
29.49%,
5/17/27
..
1
1
991726375.UG.FTS.B,
29.49%,
5/17/27
..
1
1
991757630.UG.FTS.B,
29.49%,
5/17/27
..
1
1
991776341.UG.FTS.B,
29.49%,
5/17/27
..
3
3
991779482.UG.FTS.B,
29.49%,
5/17/27
..
1
1
991663438.UG.FTS.B,
18.97%,
5/18/27
..
4
4
991670750.UG.FTS.B,
19.21%,
5/18/27
..
2
2
991753984.UG.FTS.B,
23.95%,
5/18/27
..
2
2
991702358.UG.FTS.B,
28.48%,
5/18/27
..
1
1
991764401.UG.FTS.B,
28.48%,
5/18/27
..
3
3
991775874.UG.FTS.B,
28.98%,
5/18/27
..
2
2
991659030.UG.FTS.B,
29.49%,
5/18/27
..
6
6
991667186.UG.FTS.B,
29.49%,
5/18/27
..
2
2
991673322.UG.FTS.B,
29.49%,
5/18/27
..
1
1
991685954.UG.FTS.B,
29.49%,
5/18/27
..
0
0
991688544.UG.FTS.B,
29.49%,
5/18/27
..
0
0
991709229.UG.FTS.B,
29.49%,
5/18/27
..
4
4
991728956.UG.FTS.B,
29.49%,
5/18/27
..
6
6
991738215.UG.FTS.B,
29.49%,
5/18/27
..
1
1
991780436.UG.FTS.B,
29.49%,
5/18/27
..
1
1
991808144.UG.FTS.B,
19.3%,
5/19/27
...
3
3
991702297.UG.FTS.B,
19.99%,
5/19/27
..
12
0
991648330.UG.FTS.B,
20.96%,
5/19/27
..
5
5
991650983.UG.FTS.B,
27.99%,
5/19/27
..
1
1
991741250.UG.FTS.B,
28.98%,
5/19/27
..
3
3
991779266.UG.FTS.B,
28.98%,
5/19/27
..
2
2
991667684.UG.FTS.B,
29.49%,
5/19/27
..
–
–
991688991.UG.FTS.B,
29.49%,
5/19/27
..
4
4
991693283.UG.FTS.B,
29.49%,
5/19/27
..
1
1
991697953.UG.FTS.B,
29.49%,
5/19/27
..
9
9
991630030.UG.FTS.B,
22.97%,
5/20/27
..
1
1
991651486.UG.FTS.B,
29.49%,
5/20/27
..
4
4
991766021.UG.FTS.B,
29.49%,
5/20/27
..
4
4
991804852.UG.FTS.B,
29.48%,
5/21/27
..
2
2
991714962.UG.FTS.B,
29.49%,
5/21/27
..
2
2
991734031.UG.FTS.B,
29.49%,
5/21/27
..
3
3
991823373.UG.FTS.B,
29.49%,
5/21/27
..
1
1
991753739.UG.FTS.B,
17.49%,
5/22/27
..
1
1
991817680.UG.FTS.B,
28.98%,
5/22/27
..
1
1
991723926.UG.FTS.B,
29.48%,
5/22/27
..
0
0
991744821.UG.FTS.B,
29.49%,
5/22/27
..
4
4
991645146.UG.FTS.B,
28.98%,
5/23/27
..
5
5
991692232.UG.FTS.B,
29.49%,
5/23/27
..
14
13
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
172
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991695824.UG.FTS.B,
29.49%,
5/23/27
..
$
–
$
–
991776727.UG.FTS.B,
29.49%,
5/23/27
..
3
3
991788738.UG.FTS.B,
29.49%,
5/23/27
..
7
7
991789946.UG.FTS.B,
29.49%,
5/23/27
..
2
2
991654181.UG.FTS.B,
19.99%,
5/24/27
..
2
2
991639339.UG.FTS.B,
28.98%,
5/24/27
..
1
1
991729523.UG.FTS.B,
28.98%,
5/24/27
..
3
3
991597405.UG.FTS.B,
29.49%,
5/24/27
..
1
1
991645308.UG.FTS.B,
29.49%,
5/24/27
..
3
3
991670247.UG.FTS.B,
29.49%,
5/24/27
..
4
4
991697772.UG.FTS.B,
29.49%,
5/24/27
..
13
13
991711365.UG.FTS.B,
29.49%,
5/24/27
..
1
1
991742343.UG.FTS.B,
29.49%,
5/24/27
..
0
0
991779663.UG.FTS.B,
29.49%,
5/24/27
..
1
1
991791235.UG.FTS.B,
29.49%,
5/24/27
..
2
2
991826640.UG.FTS.B,
29.49%,
5/24/27
..
1
1
991746731.UG.FTS.B,
14.98%,
5/26/27
..
2
2
3,423,628
Upstart
Network,
Inc.
L1668275.UP.FTS.B,
5.93%,
9/14/24
....
2,621
2,602
L1708965.UP.FTS.B,
6.03%,
9/14/24
....
1,393
1,383
L1711338.UP.FTS.B,
7.31%,
9/14/24
.....
6,328
6,275
FW1711179.UP.FTS.B,
8.08%,
9/14/24
...
7,003
6,947
L1710504.UP.FTS.B,
8.16%,
9/14/24
....
4,125
4,092
L1710349.UP.FTS.B,
8.75%,
9/14/24
....
4,126
4,094
L1709609.UP.FTS.B,
9.38%,
9/14/24
....
4,950
4,911
L1710222.UP.FTS.B,
10.09%,
9/14/24
....
5,870
5,805
L1710286.UP.FTS.B,
10.59%,
9/14/24
....
9,951
9,869
L1709477.UP.FTS.B,
10.67%,
9/14/24
....
2,488
2,469
L1709911.UP.FTS.B,
11.09%,
9/14/24
....
4,965
4,925
L1711863.UP.FTS.B,
11.39%,
9/14/24
....
2,908
2,885
L1709151.UP.FTS.B,
12.24%,
9/14/24
....
14,990
14,866
L1709495.UP.FTS.B,
12.77%,
9/14/24
....
2,249
602
L1711024.UP.FTS.B,
12.98%,
9/14/24
....
2,586
2,565
L1708601.UP.FTS.B,
13.04%,
9/14/24
....
5,841
5,793
L1709421.UP.FTS.B,
13.37%,
9/14/24
....
3,320
3,292
FW1711157.UP.FTS.B,
13.66%,
9/14/24
..
20,864
20,691
L1709684.UP.FTS.B,
13.76%,
9/14/24
....
1,670
1,656
FW1710146.UP.FTS.B,
13.91%,
9/14/24
..
2,509
2,480
L1710159.UP.FTS.B,
14.05%,
9/14/24
....
2
2
L1709615.UP.FTS.B,
14.35%,
9/14/24
....
2,459
2,369
L1709128.UP.FTS.B,
16.69%,
9/14/24
....
842
832
L1710058.UP.FTS.B,
17.29%,
9/14/24
....
3,204
3,167
FW1708870.UP.FTS.B,
17.81%,
9/14/24
..
3,388
3,345
L1710277.UP.FTS.B,
18.02%,
9/14/24
....
12,671
12,523
L1711489.UP.FTS.B,
18.07%,
9/14/24
....
4,224
4,175
L1693265.UP.FTS.B,
18.16%,
9/14/24
....
1,268
1,253
L1708735.UP.FTS.B,
18.16%,
9/14/24
....
4,228
4,174
L1710205.UP.FTS.B,
18.33%,
9/14/24
....
4,227
4,177
L1712571.UP.FTS.B,
19.22%,
9/14/24
....
1,271
1,256
L1710755.UP.FTS.B,
19.46%,
9/14/24
....
4,238
4,189
L1711631.UP.FTS.B,
20.05%,
9/14/24
....
1,782
1,755
L1709586.UP.FTS.B,
20.13%,
9/14/24
....
856
845
L1709921.UP.FTS.B,
20.29%,
9/14/24
....
849
839
L1710054.UP.FTS.B,
20.94%,
9/14/24
....
25,516
25,217
L1701584.UP.FTS.B,
21.4%,
9/14/24
....
2,044
2,012
L1709086.UP.FTS.B,
21.87%,
9/14/24
....
5,938
5,845
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1709006.UP.FTS.B,
22.7%,
9/14/24
....
$
2,560
$
2,520
L1712071.UP.FTS.B,
22.99%,
9/14/24
....
1,880
1,851
L1711537.UP.FTS.B,
23.1%,
9/14/24
.....
1,539
1,520
L1711075.UP.FTS.B,
23.16%,
9/14/24
....
1,282
1,262
L1709547.UP.FTS.B,
23.36%,
9/14/24
....
5,646
5,559
L1706779.UP.FTS.B,
23.41%,
9/14/24
....
1,540
1,516
L1711142.UP.FTS.B,
23.72%,
9/14/24
....
937
922
L1709631.UP.FTS.B,
24.23%,
9/14/24
....
5,141
5,061
FW1710630.UP.FTS.B,
24.53%,
9/14/24
..
6,002
5,909
FW1709769.UP.FTS.B,
24.54%,
9/14/24
..
3,464
3,410
FW1710815.UP.FTS.B,
26.35%,
9/14/24
..
850
836
FW1710161.UP.FTS.B,
26.64%,
9/14/24
..
9,989
9,789
FW1709118.UP.FTS.B,
27.71%,
9/14/24
..
1,727
1,700
FW1710819.UP.FTS.B,
27.74%,
9/14/24
..
2,621
2,580
FW1709444.UP.FTS.B,
27.86%,
9/14/24
..
2,591
2,550
FW1710922.UP.FTS.B,
28.53%,
9/14/24
..
865
851
FW1710689.UP.FTS.B,
28.87%,
9/14/24
..
2,998
2,951
FW1710694.UP.FTS.B,
29.46%,
9/14/24
..
17,332
17,059
FW1710062.UP.FTS.B,
30.06%,
9/14/24
..
1,562
1,538
FW1711508.UP.FTS.B,
30.59%,
9/14/24
..
5,805
5,713
L1874342.UP.FTS.B,
5.92%,
10/18/24
....
13,059
12,971
L1873274.UP.FTS.B,
6.44%,
10/18/24
....
5,924
5,885
L1873054.UP.FTS.B,
6.73%,
10/18/24
....
14,821
14,722
L1874011.UP.FTS.B,
6.93%,
10/18/24
....
8,473
8,417
FW1874507.UP.FTS.B,
7.36%,
10/18/24
..
2,545
2,526
L1874340.UP.FTS.B,
7.48%,
10/18/24
....
13,490
13,393
L1873016.UP.FTS.B,
8.3%,
10/18/24
....
3,400
3,376
L1873058.UP.FTS.B,
8.3%,
10/18/24
....
4,235
4,204
L1873371.UP.FTS.B,
8.48%,
10/18/24
....
10,204
10,131
L1873862.UP.FTS.B,
8.52%,
10/18/24
....
1,701
1,689
L1873876.UP.FTS.B,
8.87%,
10/18/24
....
12,768
12,677
FW1874503.UP.FTS.B,
9.4%,
10/18/24
...
7,348
7,296
L1873457.UP.FTS.B,
9.58%,
10/18/24
....
852
846
L1873276.UP.FTS.B,
10.26%,
10/18/24
...
6,830
6,781
L1873969.UP.FTS.B,
10.92%,
10/18/24
...
855
849
L1873212.UP.FTS.B,
11.39%,
10/18/24
...
14,447
13,659
L1873534.UP.FTS.B,
11.86%,
10/18/24
...
2,079
2,057
L1872565.UP.FTS.B,
13.63%,
10/18/24
...
4,301
4,269
FW1873666.UP.FTS.B,
14.61%,
10/18/24
.
1,509
1,495
L1873890.UP.FTS.B,
14.95%,
10/18/24
...
1,898
1,877
L1873908.UP.FTS.B,
15.55%,
10/18/24
...
1,295
1,282
L1874040.UP.FTS.B,
15.59%,
10/18/24
...
30,373
30,037
L1874133.UP.FTS.B,
16.04%,
10/18/24
...
4,308
4,262
L1873474.UP.FTS.B,
16.06%,
10/18/24
...
2,421
2,395
L1873316.UP.FTS.B,
16.33%,
10/18/24
...
2,853
2,823
L1873998.UP.FTS.B,
16.56%,
10/18/24
...
5,193
5,137
L1873542.UP.FTS.B,
16.72%,
10/18/24
...
465
458
FW1872981.UP.FTS.B,
16.76%,
10/18/24
.
2,583
2,555
FW1873500.UP.FTS.B,
17.14%,
10/18/24
.
828
818
L1873175.UP.FTS.B,
17.39%,
10/18/24
...
1,734
1,715
FW1873590.UP.FTS.B,
17.67%,
10/18/24
.
7,800
7,717
FW1874334.UP.FTS.B,
18.25%,
10/18/24
.
7,382
7,303
L1873935.UP.FTS.B,
18.25%,
10/18/24
...
2,596
2,568
FW1874411.UP.FTS.B,
18.35%,
10/18/24
.
9,469
9,367
L1873189.UP.FTS.B,
18.36%,
10/18/24
...
5,212
5,157
L1869487.UP.FTS.B,
18.66%,
10/18/24
...
5,215
5,160
L1873369.UP.FTS.B,
18.74%,
10/18/24
...
13,033
12,893
L1874319.UP.FTS.B,
19.26%,
10/18/24
...
5,222
5,166
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
173
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1873329.UP.FTS.B,
19.32%,
10/18/24
...
$
2,611
$
2,583
L1874232.UP.FTS.B,
19.37%,
10/18/24
...
10,463
10,316
FW1859012.UP.FTS.B,
19.54%,
10/18/24
.
13,061
12,881
L1873978.UP.FTS.B,
20.05%,
10/18/24
...
872
860
L1873964.UP.FTS.B,
20.13%,
10/18/24
...
3,662
3,622
L1873264.UP.FTS.B,
20.49%,
10/18/24
...
1,570
1,549
FW1873354.UP.FTS.B,
20.69%,
10/18/24
.
1,309
1,291
L1873993.UP.FTS.B,
21.31%,
10/18/24
...
3,845
3,804
L1873242.UP.FTS.B,
21.35%,
10/18/24
...
2,876
835
L1873872.UP.FTS.B,
21.59%,
10/18/24
...
1,394
1,379
L1869314.UP.FTS.B,
21.8%,
10/18/24
....
4,373
4,313
L1872932.UP.FTS.B,
21.9%,
10/18/24
....
16,928
16,683
L1873288.UP.FTS.B,
21.91%,
10/18/24
...
4,482
4,231
L1871398.UP.FTS.B,
22.03%,
10/18/24
...
1,750
1,726
L1873912.UP.FTS.B,
22.05%,
10/18/24
...
3,938
3,883
L1873367.UP.FTS.B,
22.09%,
10/18/24
...
1,169
1,152
L1873736.UP.FTS.B,
22.12%,
10/18/24
...
8,752
8,631
L1873171.UP.FTS.B,
22.25%,
10/18/24
...
1,751
1,727
FW1873087.UP.FTS.B,
22.36%,
10/18/24
.
1,751
1,733
L1874046.UP.FTS.B,
22.36%,
10/18/24
...
1,459
105
FW1872256.UP.FTS.B,
22.75%,
10/18/24
.
4,382
4,321
L1873179.UP.FTS.B,
22.76%,
10/18/24
...
1,753
1,728
L1874384.UP.FTS.B,
23.32%,
10/18/24
...
1,667
1,644
FW1873765.UP.FTS.B,
23.44%,
10/18/24
.
5,197
5,122
L1874136.UP.FTS.B,
23.45%,
10/18/24
...
2,739
2,701
L1874372.UP.FTS.B,
23.49%,
10/18/24
...
4,388
4,327
FW1873053.UP.FTS.B,
23.65%,
10/18/24
.
1,931
1,904
L1873127.UP.FTS.B,
23.81%,
10/18/24
...
1,054
1,039
L1872590.UP.FTS.B,
23.91%,
10/18/24
...
2,600
2,562
L1873984.UP.FTS.B,
24.1%,
10/18/24
....
14,718
1,054
FW1874061.UP.FTS.B,
24.44%,
10/18/24
.
879
867
FW1872890.UP.FTS.B,
24.47%,
10/18/24
.
880
867
L1873402.UP.FTS.B,
25.1%,
10/18/24
....
5,561
5,483
FW1874297.UP.FTS.B,
25.54%,
10/18/24
.
5,462
5,386
FW1874479.UP.FTS.B,
26.04%,
10/18/24
.
3,086
3,043
FW1873281.UP.FTS.B,
26.17%,
10/18/24
.
3,697
1,083
FW1874493.UP.FTS.B,
26.45%,
10/18/24
.
963
11
FW1873991.UP.FTS.B,
27.32%,
10/18/24
.
2,652
2,615
FW1866558.UP.FTS.B,
27.33%,
10/18/24
.
4,420
4,358
FW1873999.UP.FTS.B,
27.39%,
10/18/24
.
1,834
1,808
FW1874223.UP.FTS.B,
27.57%,
10/18/24
.
659
647
FW1872767.UP.FTS.B,
27.63%,
10/18/24
.
4,869
84
FW1873437.UP.FTS.B,
27.74%,
10/18/24
.
350
344
FW1873960.UP.FTS.B,
28.04%,
10/18/24
.
4,935
4,845
FW1873200.UP.FTS.B,
28.1%,
10/18/24
..
2,213
2,182
FW1873996.UP.FTS.B,
28.24%,
10/18/24
.
4,616
1,357
FW1872459.UP.FTS.B,
28.31%,
10/18/24
.
841
828
FW1870326.UP.FTS.B,
28.36%,
10/18/24
.
8,856
8,733
FW1874036.UP.FTS.B,
28.84%,
10/18/24
.
2,127
2,098
FW1873257.UP.FTS.B,
28.88%,
10/18/24
.
975
961
FW1873386.UP.FTS.B,
29.18%,
10/18/24
.
887
875
FW1874537.UP.FTS.B,
29.48%,
10/18/24
.
4,744
720
L2009164.UP.FTS.B,
7.47%,
11/09/24
....
8,739
8,682
L2007742.UP.FTS.B,
8.31%,
11/09/24
....
2,188
2,172
L2005982.UP.FTS.B,
8.37%,
11/09/24
....
7,003
6,951
L2009147.UP.FTS.B,
8.62%,
11/09/24
....
1,752
1,738
FW2006255.UP.FTS.B,
8.72%,
11/09/24
..
2,277
2,260
L2006066.UP.FTS.B,
9.09%,
11/09/24
....
877
870
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2006429.UP.FTS.B,
9.93%,
11/09/24
....
$
43,896
$
43,572
L2006357.UP.FTS.B,
10.1%,
11/09/24
....
1,756
1,743
FW2005536.UP.FTS.B,
10.27%,
11/09/24
.
3,514
3,488
L2009057.UP.FTS.B,
10.3%,
11/09/24
....
10,542
10,465
L2007334.UP.FTS.B,
10.62%,
11/09/24
...
4,396
4,363
FW2006816.UP.FTS.B,
10.79%,
11/09/24
.
7,316
7,253
L2007501.UP.FTS.B,
10.81%,
11/09/24
...
5,281
5,244
FW2008742.UP.FTS.B,
11.03%,
11/09/24
.
8,797
8,726
L2009390.UP.FTS.B,
11.11%,
11/09/24
...
5,983
5,934
L2007022.UP.FTS.B,
11.29%,
11/09/24
...
1,760
1,746
FW1975632.UP.FTS.B,
11.37%,
11/09/24
.
2,729
2,707
L2006292.UP.FTS.B,
11.48%,
11/09/24
...
2,261
1,226
L2009109.UP.FTS.B,
11.99%,
11/09/24
...
4,394
4,362
L1980258.UP.FTS.B,
12.16%,
11/09/24
...
19,217
19,077
L2010096.UP.FTS.B,
12.85%,
11/09/24
...
9,638
5,372
L2008566.UP.FTS.B,
13.59%,
11/09/24
...
884
877
L2008572.UP.FTS.B,
13.72%,
11/09/24
...
5,108
5,064
L2000304.UP.FTS.B,
13.97%,
11/09/24
...
3,626
3,597
L2008598.UP.FTS.B,
14.12%,
11/09/24
...
2,654
2,633
L2009526.UP.FTS.B,
14.46%,
11/09/24
...
3,561
3,518
L2009600.UP.FTS.B,
14.49%,
11/09/24
...
4,427
4,372
L2007591.UP.FTS.B,
14.78%,
11/09/24
...
2,214
2,196
L2007212.UP.FTS.B,
15.12%,
11/09/24
...
5,760
5,689
FW2004099.UP.FTS.B,
15.18%,
11/09/24
.
2,659
2,626
L2007837.UP.FTS.B,
15.4%,
11/09/24
....
3,555
3,511
L2009870.UP.FTS.B,
15.75%,
11/09/24
...
2,661
2,640
L2005874.UP.FTS.B,
15.93%,
11/09/24
...
15,085
14,901
L1964575.UP.FTS.B,
16.42%,
11/09/24
...
1,776
1,755
L2006407.UP.FTS.B,
16.56%,
11/09/24
...
7,107
7,020
L2009557.UP.FTS.B,
16.56%,
11/09/24
...
5,330
5,265
L2010209.UP.FTS.B,
16.76%,
11/09/24
...
3,555
3,512
FW2006915.UP.FTS.B,
17.05%,
11/09/24
.
1,778
1,756
L2008387.UP.FTS.B,
17.08%,
11/09/24
...
4,179
4,128
L2008884.UP.FTS.B,
17.09%,
11/09/24
...
1,111
1,094
FW2008245.UP.FTS.B,
17.41%,
11/09/24
.
4,448
4,394
L2009227.UP.FTS.B,
17.41%,
11/09/24
...
3,114
3,076
L2007287.UP.FTS.B,
17.58%,
11/09/24
...
10,679
10,549
FW2006977.UP.FTS.B,
17.62%,
11/09/24
.
4,450
4,396
FW2008456.UP.FTS.B,
17.88%,
11/09/24
.
8,949
8,841
L2006010.UP.FTS.B,
18.05%,
11/09/24
...
1,158
1,144
L2008995.UP.FTS.B,
18.45%,
11/09/24
...
104
102
L2004862.UP.FTS.B,
18.66%,
11/09/24
...
19,206
2,750
L2006019.UP.FTS.B,
18.67%,
11/09/24
...
2,670
2,637
L2006884.UP.FTS.B,
18.86%,
11/09/24
...
8,018
7,920
FW2008385.UP.FTS.B,
19.08%,
11/09/24
.
2,243
2,216
L2008991.UP.FTS.B,
19.31%,
11/09/24
...
8,925
8,817
FW2009194.UP.FTS.B,
19.65%,
11/09/24
.
2,679
2,647
L2007944.UP.FTS.B,
19.85%,
11/09/24
...
3,216
3,165
L2004937.UP.FTS.B,
19.9%,
11/09/24
....
5,991
5,912
L2007765.UP.FTS.B,
19.9%,
11/09/24
....
6,093
6,019
L2005921.UP.FTS.B,
19.92%,
11/09/24
...
3,752
3,707
L2009435.UP.FTS.B,
20.15%,
11/09/24
...
14,746
14,514
L2004417.UP.FTS.B,
20.16%,
11/09/24
...
2,682
2,650
FW2008873.UP.FTS.B,
20.22%,
11/09/24
.
3,419
3,373
L2008874.UP.FTS.B,
20.27%,
11/09/24
...
8,916
8,775
L2007505.UP.FTS.B,
20.32%,
11/09/24
...
2,861
2,826
L2006510.UP.FTS.B,
20.49%,
11/09/24
...
4,919
4,859
L2007014.UP.FTS.B,
20.64%,
11/09/24
...
4,083
4,024
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
174
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2005439.UP.FTS.B,
20.7%,
11/09/24
....
$
1,612
$
1,587
L2010279.UP.FTS.B,
20.87%,
11/09/24
...
3,879
3,816
L2008398.UP.FTS.B,
20.91%,
11/09/24
...
2,684
2,642
L2004915.UP.FTS.B,
21%,
11/09/24
.....
9,023
8,888
L2009328.UP.FTS.B,
21.06%,
11/09/24
...
1,522
1,503
L2006605.UP.FTS.B,
21.13%,
11/09/24
...
9,250
5,363
FW2010100.UP.FTS.B,
21.34%,
11/09/24
.
4,458
4,388
L2009663.UP.FTS.B,
21.46%,
11/09/24
...
4,478
4,408
L2008515.UP.FTS.B,
21.79%,
11/09/24
...
8,065
7,939
L2006419.UP.FTS.B,
22.06%,
11/09/24
...
891
880
L2008922.UP.FTS.B,
22.21%,
11/09/24
...
1,793
1,765
L2009367.UP.FTS.B,
22.33%,
11/09/24
...
8,072
7,946
L2009655.UP.FTS.B,
22.54%,
11/09/24
...
3,589
3,533
L2010143.UP.FTS.B,
22.58%,
11/09/24
...
1,887
1,855
L2009735.UP.FTS.B,
22.61%,
11/09/24
...
5,093
3,062
L2004913.UP.FTS.B,
22.66%,
11/09/24
...
7,167
7,055
FW2003014.UP.FTS.B,
22.75%,
11/09/24
.
15,706
15,461
L2009465.UP.FTS.B,
22.87%,
11/09/24
...
4,617
2,774
L2009467.UP.FTS.B,
22.96%,
11/09/24
...
2,988
2,940
L2006957.UP.FTS.B,
23.01%,
11/09/24
...
1,257
1,237
L2007564.UP.FTS.B,
23.08%,
11/09/24
...
5,618
5,522
L2009173.UP.FTS.B,
23.31%,
11/09/24
...
4,899
1,354
L2008674.UP.FTS.B,
23.54%,
11/09/24
...
4,481
4,411
FW2008479.UP.FTS.B,
24.13%,
11/09/24
.
4,857
4,769
FW2007173.UP.FTS.B,
24.62%,
11/09/24
.
911
901
FW2009937.UP.FTS.B,
26.34%,
11/09/24
.
4,248
4,176
FW2009505.UP.FTS.B,
26.53%,
11/09/24
.
2,709
2,667
FW2009640.UP.FTS.B,
26.74%,
11/09/24
.
7,369
2,117
FW2005459.UP.FTS.B,
26.79%,
11/09/24
.
902
888
FW2005316.UP.FTS.B,
26.93%,
11/09/24
.
903
889
FW2007706.UP.FTS.B,
28.18%,
11/09/24
.
1,357
1,337
FW2008048.UP.FTS.B,
28.27%,
11/09/24
.
905
891
FW2008337.UP.FTS.B,
28.31%,
11/09/24
.
3,621
3,565
FW2009522.UP.FTS.B,
28.31%,
11/09/24
.
8,146
8,021
FW2008582.UP.FTS.B,
28.77%,
11/09/24
.
997
982
FW2008565.UP.FTS.B,
28.92%,
11/09/24
.
3,642
3,588
FW2004867.UP.FTS.B,
29.1%,
11/09/24
..
5,360
5,280
L2079356.UP.FTS.B,
6.34%,
11/19/24
....
17,408
17,306
L2077512.UP.FTS.B,
6.51%,
11/19/24
....
4,362
4,336
L2077314.UP.FTS.B,
7.63%,
11/19/24
....
5,245
5,215
L2079482.UP.FTS.B,
7.7%,
11/19/24
.....
5,683
5,647
FW2078418.UP.FTS.B,
7.82%,
11/19/24
..
43,705
43,428
L2077413.UP.FTS.B,
8.09%,
11/19/24
....
3,791
3,765
L2077593.UP.FTS.B,
8.69%,
11/19/24
....
4,380
4,352
L2077781.UP.FTS.B,
10.54%,
11/19/24
...
1,932
1,920
L2078215.UP.FTS.B,
10.8%,
11/19/24
....
6,507
6,467
L2077816.UP.FTS.B,
11%,
11/19/24
.....
1,056
1,049
L2077041.UP.FTS.B,
11.38%,
11/19/24
...
4,387
4,358
L2080776.UP.FTS.B,
11.71%,
11/19/24
...
8,477
8,425
FW2077955.UP.FTS.B,
11.92%,
11/19/24
.
2,643
2,627
L2078813.UP.FTS.B,
13.69%,
11/19/24
...
7,828
7,729
L2076941.UP.FTS.B,
13.71%,
11/19/24
...
9,074
8,582
L2078440.UP.FTS.B,
13.79%,
11/19/24
...
3,947
3,921
L2072646.UP.FTS.B,
15.11%,
11/19/24
...
2,658
2,633
L2077920.UP.FTS.B,
15.31%,
11/19/24
...
4,432
4,390
L2080157.UP.FTS.B,
15.6%,
11/19/24
....
5,435
5,139
L2076486.UP.FTS.B,
15.67%,
11/19/24
...
2,395
2,372
L2080256.UP.FTS.B,
15.68%,
11/19/24
...
1,921
1,896
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2076313.UP.FTS.B,
15.86%,
11/19/24
...
$
1,153
$
1,142
L2079064.UP.FTS.B,
15.95%,
11/19/24
...
4,270
4,225
FW2076817.UP.FTS.B,
16.69%,
11/19/24
.
1,333
1,320
FW2076171.UP.FTS.B,
17.3%,
11/19/24
..
583
574
L2077907.UP.FTS.B,
17.76%,
11/19/24
...
3,561
3,527
L2077340.UP.FTS.B,
17.78%,
11/19/24
...
7,122
7,054
L2076392.UP.FTS.B,
18.07%,
11/19/24
...
4,196
4,151
L2077616.UP.FTS.B,
18.56%,
11/19/24
...
5,116
5,061
FW2078600.UP.FTS.B,
18.83%,
11/19/24
.
892
883
L2076288.UP.FTS.B,
19.02%,
11/19/24
...
3,390
3,358
L2080023.UP.FTS.B,
19.49%,
11/19/24
...
8,014
7,937
L2077669.UP.FTS.B,
19.72%,
11/19/24
...
853
844
FW2078328.UP.FTS.B,
19.87%,
11/19/24
.
4,466
4,424
FW2076493.UP.FTS.B,
20.14%,
11/19/24
.
2,234
2,213
L2070757.UP.FTS.B,
20.15%,
11/19/24
...
1,609
1,593
L2077506.UP.FTS.B,
20.58%,
11/19/24
...
5,319
5,252
L2077765.UP.FTS.B,
21.13%,
11/19/24
...
897
888
L2080270.UP.FTS.B,
21.47%,
11/19/24
...
3,583
3,549
FW2078088.UP.FTS.B,
22.1%,
11/19/24
..
1,793
1,771
L2078933.UP.FTS.B,
22.16%,
11/19/24
...
10,330
3,020
L2077458.UP.FTS.B,
22.17%,
11/19/24
...
6,276
6,200
L2073213.UP.FTS.B,
22.2%,
11/19/24
....
897
886
FW2079771.UP.FTS.B,
22.21%,
11/19/24
.
4,483
4,441
L2068552.UP.FTS.B,
22.21%,
11/19/24
...
2,152
2,126
L2079118.UP.FTS.B,
22.29%,
11/19/24
...
8,968
8,859
L2077140.UP.FTS.B,
22.69%,
11/19/24
...
5,458
5,391
L2077284.UP.FTS.B,
22.9%,
11/19/24
....
6,733
6,651
L2077715.UP.FTS.B,
23.03%,
11/19/24
...
1,347
1,334
L2074944.UP.FTS.B,
23.05%,
11/19/24
...
4,093
4,038
FW2079002.UP.FTS.B,
23.06%,
11/19/24
.
1,676
1,620
L2076512.UP.FTS.B,
23.14%,
11/19/24
...
4,432
4,375
L2079686.UP.FTS.B,
23.16%,
11/19/24
...
1,286
1,217
FW2076824.UP.FTS.B,
23.23%,
11/19/24
.
2,874
2,847
L2077061.UP.FTS.B,
23.44%,
11/19/24
...
3,061
3,025
FW2078990.UP.FTS.B,
23.53%,
11/19/24
.
4,044
3,995
FW2078899.UP.FTS.B,
24.04%,
11/19/24
.
6,205
5,877
FW2080736.UP.FTS.B,
25.04%,
11/19/24
.
1,846
1,818
L2076355.UP.FTS.B,
25.17%,
11/19/24
...
6,116
6,041
FW2080449.UP.FTS.B,
25.53%,
11/19/24
.
6,309
6,233
FW2073639.UP.FTS.B,
25.65%,
11/19/24
.
2,670
2,636
FW2030197.UP.FTS.B,
26.12%,
11/19/24
.
7,585
1,161
FW2080418.UP.FTS.B,
26.74%,
11/19/24
.
1,806
1,784
FW2077101.UP.FTS.B,
27.6%,
11/19/24
..
3,436
3,395
FW2077958.UP.FTS.B,
27.77%,
11/19/24
.
9,044
8,936
FW2077645.UP.FTS.B,
27.94%,
11/19/24
.
2,239
2,211
FW2077222.UP.FTS.B,
28.34%,
11/19/24
.
5,431
5,366
FW2076487.UP.FTS.B,
28.65%,
11/19/24
.
4,943
4,882
FW2076539.UP.FTS.B,
29.12%,
11/19/24
.
1,061
1,047
FW2080054.UP.FTS.B,
30.2%,
11/19/24
..
3,029
2,989
L2197817.UP.FTS.B,
6.54%,
12/07/24
....
5,389
5,354
L2197814.UP.FTS.B,
6.94%,
12/07/24
....
1,797
1,786
L2192487.UP.FTS.B,
8.02%,
12/07/24
....
18,005
17,867
L2199636.UP.FTS.B,
9.12%,
12/07/24
....
5,410
5,369
FW2198636.UP.FTS.B,
11.41%,
12/07/24
.
4,524
4,485
FW2196231.UP.FTS.B,
11.5%,
12/07/24
..
10,859
10,764
L2196723.UP.FTS.B,
12.12%,
12/07/24
...
5,887
5,836
L2196919.UP.FTS.B,
12.98%,
12/07/24
...
3,009
2,985
L2199259.UP.FTS.B,
13.19%,
12/07/24
...
4,082
4,046
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
175
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2199236.UP.FTS.B,
13.4%,
12/07/24
..
$
1,361
$
1,349
L2152837.UP.FTS.B,
14.7%,
12/07/24
....
6,818
6,727
FW2196253.UP.FTS.B,
15.31%,
12/07/24
.
1,365
1,347
L2199973.UP.FTS.B,
16.17%,
12/07/24
...
2,733
2,696
L2196295.UP.FTS.B,
16.26%,
12/07/24
...
4,914
4,849
L2197093.UP.FTS.B,
16.43%,
12/07/24
...
4,840
4,772
L2198109.UP.FTS.B,
16.63%,
12/07/24
...
911
899
L2197668.UP.FTS.B,
17.17%,
12/07/24
...
2,280
2,250
L2196952.UP.FTS.B,
17.42%,
12/07/24
...
2,000
74
FW2197769.UP.FTS.B,
17.83%,
12/07/24
.
2,296
2,267
L2196102.UP.FTS.B,
17.88%,
12/07/24
...
9,935
9,810
L2186564.UP.FTS.B,
18.32%,
12/07/24
...
9,136
9,014
L2199581.UP.FTS.B,
19.33%,
12/07/24
...
1,647
1,625
FW2200254.UP.FTS.B,
19.34%,
12/07/24
.
1,830
1,805
FW2199717.UP.FTS.B,
20.13%,
12/07/24
.
4,579
4,502
L2195358.UP.FTS.B,
20.15%,
12/07/24
...
916
904
L2195122.UP.FTS.B,
20.26%,
12/07/24
...
4,958
4,894
L2198118.UP.FTS.B,
20.43%,
12/07/24
...
1,832
1,808
L2198032.UP.FTS.B,
20.55%,
12/07/24
...
3,665
3,603
L2196647.UP.FTS.B,
21.51%,
12/07/24
...
5,485
5,410
L2199295.UP.FTS.B,
21.7%,
12/07/24
....
2,294
2,255
L2199855.UP.FTS.B,
21.8%,
12/07/24
....
1,101
1,087
L2199073.UP.FTS.B,
21.87%,
12/07/24
...
2,295
2,264
L2197032.UP.FTS.B,
22.34%,
12/07/24
...
1,822
1,790
L2195775.UP.FTS.B,
22.71%,
12/07/24
...
1,378
1,355
L2197271.UP.FTS.B,
22.76%,
12/07/24
...
8,270
8,130
FW2198017.UP.FTS.B,
23.08%,
12/07/24
.
2,758
2,711
L2199437.UP.FTS.B,
23.33%,
12/07/24
...
6,648
1,835
L2196613.UP.FTS.B,
23.35%,
12/07/24
...
6,026
5,917
FW2199787.UP.FTS.B,
23.38%,
12/07/24
.
1,923
138
FW2195695.UP.FTS.B,
24.83%,
12/07/24
.
4,606
4,528
FW2195888.UP.FTS.B,
24.84%,
12/07/24
.
882
866
FW2199208.UP.FTS.B,
25.58%,
12/07/24
.
3,689
3,626
FW2195682.UP.FTS.B,
26.39%,
12/07/24
.
2,926
842
FW2195724.UP.FTS.B,
27.53%,
12/07/24
.
2,312
2,272
FW2198393.UP.FTS.B,
27.56%,
12/07/24
.
3,328
3,271
FW2198291.UP.FTS.B,
28.01%,
12/07/24
.
16,044
9,582
FW2196720.UP.FTS.B,
29.15%,
12/07/24
.
3,860
1,112
L2201298.UP.FTS.B,
6.04%,
12/08/24
....
1,693
1,682
L2203520.UP.FTS.B,
6.61%,
12/08/24
....
16,528
16,427
FW2201265.UP.FTS.B,
7.44%,
12/08/24
..
6,296
6,251
L2200896.UP.FTS.B,
7.68%,
12/08/24
....
6,298
6,253
L2204703.UP.FTS.B,
8.41%,
12/08/24
....
258
255
L2150213.UP.FTS.B,
8.58%,
12/08/24
....
5,637
5,595
L2200163.UP.FTS.B,
8.73%,
12/08/24
....
6,759
6,711
L2204262.UP.FTS.B,
8.78%,
12/08/24
....
1,803
1,790
L2202574.UP.FTS.B,
9.1%,
12/08/24
....
6,763
6,715
FW2206887.UP.FTS.B,
9.22%,
12/08/24
..
9,019
8,955
L2202371.UP.FTS.B,
9.29%,
12/08/24
....
1,353
1,343
L2202647.UP.FTS.B,
9.47%,
12/08/24
....
3,058
3,035
L2206982.UP.FTS.B,
9.5%,
12/08/24
....
902
896
L2201633.UP.FTS.B,
10.05%,
12/08/24
...
8,759
8,697
L2202275.UP.FTS.B,
10.28%,
12/08/24
...
18,065
17,938
L2206909.UP.FTS.B,
11.8%,
12/08/24
....
2,715
2,693
L2205399.UP.FTS.B,
11.81%,
12/08/24
...
904
896
L2201373.UP.FTS.B,
12.48%,
12/08/24
...
2,718
2,697
L2201983.UP.FTS.B,
12.68%,
12/08/24
...
7,251
7,194
L2206888.UP.FTS.B,
12.72%,
12/08/24
...
7,252
7,194
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2202614.UP.FTS.B,
12.88%,
12/08/24
...
$
7,254
$
7,196
L2200458.UP.FTS.B,
12.89%,
12/08/24
...
5,672
5,624
L2200431.UP.FTS.B,
13.28%,
12/08/24
...
4,990
4,950
L2205143.UP.FTS.B,
13.35%,
12/08/24
...
2,722
2,700
L2202863.UP.FTS.B,
13.37%,
12/08/24
...
5,433
5,389
L2204453.UP.FTS.B,
13.74%,
12/08/24
...
2,723
2,702
L2200559.UP.FTS.B,
14.18%,
12/08/24
...
9,084
9,013
L2204038.UP.FTS.B,
14.23%,
12/08/24
...
9,056
8,984
FW2200839.UP.FTS.B,
14.26%,
12/08/24
.
6,362
6,314
L2201794.UP.FTS.B,
14.37%,
12/08/24
...
7,723
7,628
L2204310.UP.FTS.B,
14.38%,
12/08/24
...
909
902
L2203131.UP.FTS.B,
15.07%,
12/08/24
...
4,008
2,315
FW2198905.UP.FTS.B,
15.38%,
12/08/24
.
4,550
4,494
L2203403.UP.FTS.B,
15.5%,
12/08/24
....
13,696
1,959
L2192030.UP.FTS.B,
15.79%,
12/08/24
...
6,919
6,834
L2205721.UP.FTS.B,
15.97%,
12/08/24
...
5,464
5,397
L2202823.UP.FTS.B,
16.25%,
12/08/24
...
2,199
2,170
L2199002.UP.FTS.B,
16.29%,
12/08/24
...
2,186
2,160
L2201862.UP.FTS.B,
17%,
12/08/24
.....
4,560
4,504
L2204481.UP.FTS.B,
17.12%,
12/08/24
...
6,932
6,847
L2201197.UP.FTS.B,
17.52%,
12/08/24
...
5,170
2,990
L2200703.UP.FTS.B,
17.76%,
12/08/24
...
913
902
L2202850.UP.FTS.B,
17.99%,
12/08/24
...
1,751
1,727
L2200495.UP.FTS.B,
18.21%,
12/08/24
...
5,749
1,575
FW2202930.UP.FTS.B,
18.22%,
12/08/24
.
2,284
2,256
L2202296.UP.FTS.B,
18.33%,
12/08/24
...
1,757
1,734
FW2201612.UP.FTS.B,
18.99%,
12/08/24
.
1,829
1,807
L2206681.UP.FTS.B,
19.32%,
12/08/24
...
3,659
3,615
L2204182.UP.FTS.B,
19.36%,
12/08/24
...
8,234
8,134
L2204390.UP.FTS.B,
19.52%,
12/08/24
...
7,320
7,232
L2205597.UP.FTS.B,
19.53%,
12/08/24
...
1,893
1,097
L2203811.UP.FTS.B,
19.85%,
12/08/24
...
2,746
2,713
L2201390.UP.FTS.B,
19.92%,
12/08/24
...
10,988
10,855
L2201524.UP.FTS.B,
19.94%,
12/08/24
...
5,479
5,394
FW2206245.UP.FTS.B,
20.03%,
12/08/24
.
1,374
1,357
L2203066.UP.FTS.B,
20.07%,
12/08/24
...
15,841
15,650
FW2201021.UP.FTS.B,
20.28%,
12/08/24
.
819
806
FW2201750.UP.FTS.B,
20.37%,
12/08/24
.
1,832
1,810
L2201072.UP.FTS.B,
20.37%,
12/08/24
...
3,206
3,168
L2202128.UP.FTS.B,
20.41%,
12/08/24
...
3,481
3,439
FW2205926.UP.FTS.B,
21.09%,
12/08/24
.
2,377
1,377
FW2203151.UP.FTS.B,
21.13%,
12/08/24
.
3,851
3,791
L2204817.UP.FTS.B,
21.24%,
12/08/24
...
4,614
2,780
L2206755.UP.FTS.B,
21.25%,
12/08/24
...
1,559
1,540
L2192296.UP.FTS.B,
21.33%,
12/08/24
...
3,669
3,612
L2202392.UP.FTS.B,
21.41%,
12/08/24
...
4,128
4,064
L2206735.UP.FTS.B,
21.46%,
12/08/24
...
4,587
4,532
L2180897.UP.FTS.B,
21.81%,
12/08/24
...
7,342
7,228
FW2201886.UP.FTS.B,
21.86%,
12/08/24
.
1,741
1,717
L2203505.UP.FTS.B,
22.57%,
12/08/24
...
14,699
14,471
FW2206827.UP.FTS.B,
22.71%,
12/08/24
.
4,594
4,523
L2202066.UP.FTS.B,
22.88%,
12/08/24
...
1,654
1,629
L2202398.UP.FTS.B,
23.19%,
12/08/24
...
6,436
6,336
FW2206155.UP.FTS.B,
23.2%,
12/08/24
..
1,744
1,714
L2200082.UP.FTS.B,
23.29%,
12/08/24
...
2,816
2,768
L2201277.UP.FTS.B,
23.37%,
12/08/24
...
3,050
3,006
L2201431.UP.FTS.B,
23.43%,
12/08/24
...
6,270
6,164
FW2202263.UP.FTS.B,
23.94%,
12/08/24
.
1,380
1,359
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
176
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2206719.UP.FTS.B,
24.2%,
12/08/24
..
$
10,956
$
10,782
FW2203344.UP.FTS.B,
24.4%,
12/08/24
..
2,822
1,690
FW2202564.UP.FTS.B,
24.94%,
12/08/24
.
1,963
289
L2202471.UP.FTS.B,
24.95%,
12/08/24
...
11,333
11,159
FW2200630.UP.FTS.B,
25.74%,
12/08/24
.
7,748
7,629
FW2176932.UP.FTS.B,
25.88%,
12/08/24
.
2,310
2,276
FW2202124.UP.FTS.B,
26.35%,
12/08/24
.
4,196
4,138
FW2203707.UP.FTS.B,
26.53%,
12/08/24
.
3,685
3,628
FW2201104.UP.FTS.B,
26.62%,
12/08/24
.
924
909
FW2202611.UP.FTS.B,
27.15%,
12/08/24
.
6,472
941
FW2201792.UP.FTS.B,
27.21%,
12/08/24
.
3,234
3,184
FW2201445.UP.FTS.B,
27.41%,
12/08/24
.
4,626
4,559
FW2204267.UP.FTS.B,
28.46%,
12/08/24
.
1,395
204
FW2201560.UP.FTS.B,
28.51%,
12/08/24
.
1,943
1,914
FW2204026.UP.FTS.B,
28.52%,
12/08/24
.
7,403
7,290
FW2205860.UP.FTS.B,
28.57%,
12/08/24
.
1,944
1,914
FW2202524.UP.FTS.B,
28.64%,
12/08/24
.
1,665
1,639
FW2201579.UP.FTS.B,
28.82%,
12/08/24
.
2,870
2,826
FW2201851.UP.FTS.B,
28.82%,
12/08/24
.
1,666
1,641
FW2205439.UP.FTS.B,
29.01%,
12/08/24
.
2,963
2,918
L2382768.UP.FTS.B,
5.08%,
1/11/25
.....
1,660
1,651
L2413126.UP.FTS.B,
5.21%,
1/11/25
.....
3,689
3,670
L2411924.UP.FTS.B,
5.26%,
1/11/25
.....
5,534
5,505
L2411777.UP.FTS.B,
5.56%,
1/11/25
.....
8,304
8,260
L2411090.UP.FTS.B,
5.74%,
1/11/25
.....
6,460
6,426
L2412107.UP.FTS.B,
6.11%,
1/11/25
.....
2,770
2,755
L2413813.UP.FTS.B,
6.18%,
1/11/25
.....
2,770
2,755
L2413053.UP.FTS.B,
6.21%,
1/11/25
.....
5,540
5,511
L2408176.UP.FTS.B,
6.75%,
1/11/25
.....
893
888
L2412917.UP.FTS.B,
6.87%,
1/11/25
.....
2,772
2,757
L2410038.UP.FTS.B,
6.92%,
1/11/25
.....
3,234
3,217
L2411645.UP.FTS.B,
6.95%,
1/11/25
.....
4,167
4,149
L2412167.UP.FTS.B,
7.12%,
1/11/25
.....
3,697
3,678
FW2409367.UP.FTS.B,
7.16%,
1/11/25
...
1,849
1,839
L2407024.UP.FTS.B,
7.25%,
1/11/25
.....
3,971
3,949
L2410776.UP.FTS.B,
7.38%,
1/11/25
.....
5,548
5,513
FW2411155.UP.FTS.B,
7.59%,
1/11/25
...
3,509
3,490
L2413637.UP.FTS.B,
7.76%,
1/11/25
.....
2,766
2,749
L2402281.UP.FTS.B,
7.89%,
1/11/25
.....
18,458
18,359
FW2408203.UP.FTS.B,
8.04%,
1/11/25
...
2,500
2,481
L2407274.UP.FTS.B,
8.11%,
1/11/25
.....
2,004
1,991
FW2413171.UP.FTS.B,
8.15%,
1/11/25
...
2,776
2,759
L2413751.UP.FTS.B,
8.33%,
1/11/25
.....
2,310
2,295
L2410774.UP.FTS.B,
8.51%,
1/11/25
.....
4,430
4,400
L2402983.UP.FTS.B,
8.56%,
1/11/25
.....
2,500
2,484
L2412008.UP.FTS.B,
8.58%,
1/11/25
.....
9,258
9,200
FW2408763.UP.FTS.B,
8.69%,
1/11/25
...
6,092
3,288
FW2413095.UP.FTS.B,
8.74%,
1/11/25
...
4,330
4,299
L2407827.UP.FTS.B,
8.84%,
1/11/25
.....
3,330
3,309
L2410161.UP.FTS.B,
9.06%,
1/11/25
.....
1,853
1,841
L2407027.UP.FTS.B,
9.18%,
1/11/25
.....
4,169
4,143
L2411609.UP.FTS.B,
9.19%,
1/11/25
.....
1,853
1,841
L2408028.UP.FTS.B,
9.2%,
1/11/25
......
3,234
3,213
L2405780.UP.FTS.B,
9.56%,
1/11/25
.....
2,039
2,026
L2413288.UP.FTS.B,
9.72%,
1/11/25
.....
951
513
L2412291.UP.FTS.B,
10.18%,
1/11/25
....
1,855
1,843
FW2412135.UP.FTS.B,
10.19%,
1/11/25
..
1,853
1,841
FW2408831.UP.FTS.B,
10.24%,
1/11/25
..
3,795
2,045
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2413510.UP.FTS.B,
10.29%,
1/11/25
....
$
15,305
$
15,208
L2411555.UP.FTS.B,
10.32%,
1/11/25
....
4,174
4,148
L2408096.UP.FTS.B,
10.52%,
1/11/25
....
3,860
3,834
FW2412813.UP.FTS.B,
10.67%,
1/11/25
..
928
922
L2411669.UP.FTS.B,
10.84%,
1/11/25
....
1,856
1,843
FW2410432.UP.FTS.B,
10.89%,
1/11/25
..
4,641
4,607
L2411242.UP.FTS.B,
10.89%,
1/11/25
....
2,877
2,859
L2413320.UP.FTS.B,
11.28%,
1/11/25
....
18,571
18,453
L2405109.UP.FTS.B,
11.47%,
1/11/25
....
1,393
1,383
FW2412630.UP.FTS.B,
12.03%,
1/11/25
..
2,788
2,768
FW2409055.UP.FTS.B,
12.38%,
1/11/25
..
1,023
1,015
L2412366.UP.FTS.B,
12.6%,
1/11/25
.....
930
923
L2408103.UP.FTS.B,
12.61%,
1/11/25
....
2,325
2,308
FW2412082.UP.FTS.B,
12.62%,
1/11/25
..
5,114
5,077
FW2412930.UP.FTS.B,
12.99%,
1/11/25
..
4,598
2,552
L2410850.UP.FTS.B,
13.07%,
1/11/25
....
1,395
1,385
L2412558.UP.FTS.B,
13.17%,
1/11/25
....
1,396
1,386
L2410120.UP.FTS.B,
14.05%,
1/11/25
....
1,863
1,849
FW2412033.UP.FTS.B,
14.09%,
1/11/25
..
3,259
3,236
L2410413.UP.FTS.B,
14.16%,
1/11/25
....
13,970
13,815
L2412221.UP.FTS.B,
14.17%,
1/11/25
....
19,524
5,322
L2409499.UP.FTS.B,
14.28%,
1/11/25
....
6,520
6,473
L2397480.UP.FTS.B,
15.09%,
1/11/25
....
9,340
9,288
L2408428.UP.FTS.B,
15.76%,
1/11/25
....
9,332
9,228
L2410798.UP.FTS.B,
15.99%,
1/11/25
....
9,331
9,227
FW2413230.UP.FTS.B,
16.04%,
1/11/25
..
6,159
6,090
FW2413492.UP.FTS.B,
16.11%,
1/11/25
..
1,395
1,379
FW2411395.UP.FTS.B,
16.37%,
1/11/25
..
2,799
2,768
L2407096.UP.FTS.B,
16.55%,
1/11/25
....
21,940
21,695
L2409614.UP.FTS.B,
17.29%,
1/11/25
....
5,699
5,636
L2411442.UP.FTS.B,
17.42%,
1/11/25
....
17,754
17,556
L2409234.UP.FTS.B,
17.51%,
1/11/25
....
2,804
2,772
L2407062.UP.FTS.B,
17.52%,
1/11/25
....
1,589
1,571
L2411946.UP.FTS.B,
17.59%,
1/11/25
....
8,131
8,040
L2402752.UP.FTS.B,
18.22%,
1/11/25
....
5,611
5,548
L2405533.UP.FTS.B,
18.22%,
1/11/25
....
9,352
9,247
L2412453.UP.FTS.B,
19.73%,
1/11/25
....
30,006
29,638
L2412506.UP.FTS.B,
19.8%,
1/11/25
.....
8,804
8,705
L2407256.UP.FTS.B,
20.21%,
1/11/25
....
6,559
6,467
L2411253.UP.FTS.B,
20.46%,
1/11/25
....
1,874
1,853
FW2410096.UP.FTS.B,
20.55%,
1/11/25
..
933
923
L2413715.UP.FTS.B,
20.58%,
1/11/25
....
937
927
FW2407665.UP.FTS.B,
20.61%,
1/11/25
..
23,434
23,105
L2412369.UP.FTS.B,
20.63%,
1/11/25
....
3,100
445
FW2410127.UP.FTS.B,
20.85%,
1/11/25
..
944
932
FW2388641.UP.FTS.B,
21.09%,
1/11/25
..
938
927
FW2411559.UP.FTS.B,
21.14%,
1/11/25
..
2,345
2,318
L2401534.UP.FTS.B,
21.34%,
1/11/25
....
11,251
11,124
L2413329.UP.FTS.B,
21.38%,
1/11/25
....
14,070
13,873
FW2410280.UP.FTS.B,
22.2%,
1/11/25
...
1,690
1,666
L2410058.UP.FTS.B,
22.27%,
1/11/25
....
10,139
10,025
L2411551.UP.FTS.B,
22.31%,
1/11/25
....
3,012
2,974
L2413428.UP.FTS.B,
23.28%,
1/11/25
....
1,222
1,204
L2407636.UP.FTS.B,
23.33%,
1/11/25
....
1,128
1,112
FW2411472.UP.FTS.B,
24.01%,
1/11/25
..
8,463
8,344
FW2408676.UP.FTS.B,
24.16%,
1/11/25
..
4,138
4,080
FW2411482.UP.FTS.B,
24.41%,
1/11/25
..
7,102
6,999
FW2410949.UP.FTS.B,
25.16%,
1/11/25
..
1,412
1,392
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
177
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2408865.UP.FTS.B,
25.5%,
1/11/25
...
$
2,374
$
2,332
L2410557.UP.FTS.B,
26.28%,
1/11/25
....
2,356
2,322
FW2409120.UP.FTS.B,
26.65%,
1/11/25
..
4,713
4,646
FW2412539.UP.FTS.B,
27.71%,
1/11/25
..
4,717
4,650
FW2411088.UP.FTS.B,
28.45%,
1/11/25
..
1,888
1,861
FW2412560.UP.FTS.B,
28.48%,
1/11/25
..
5,098
5,026
FW2412871.UP.FTS.B,
28.66%,
1/11/25
..
1,888
1,862
FW2410693.UP.FTS.B,
28.78%,
1/11/25
..
8,627
8,501
FW2413084.UP.FTS.B,
29.03%,
1/11/25
..
2,098
2,072
FW2412449.UP.FTS.B,
29.08%,
1/11/25
..
27,478
27,062
FW2408892.UP.FTS.B,
33.73%,
1/11/25
..
4,457
4,393
L2415563.UP.FTS.B,
5.17%,
1/12/25
....
6,917
6,883
L2415408.UP.FTS.B,
5.38%,
1/12/25
....
9,195
9,149
L2398487.UP.FTS.B,
5.43%,
1/12/25
....
32,237
32,079
L2418369.UP.FTS.B,
5.69%,
1/12/25
....
1,384
1,378
L2414426.UP.FTS.B,
5.8%,
1/12/25
.....
1,384
1,378
FW2419630.UP.FTS.B,
6.3%,
1/12/25
....
925
922
FW2417903.UP.FTS.B,
6.38%,
1/12/25
...
2,309
2,298
L2420304.UP.FTS.B,
6.48%,
1/12/25
....
2,309
2,298
L2419347.UP.FTS.B,
6.78%,
1/12/25
....
7,854
7,817
L2416428.UP.FTS.B,
6.81%,
1/12/25
....
1,848
1,839
FW2414692.UP.FTS.B,
6.84%,
1/12/25
...
1,848
1,839
L2418759.UP.FTS.B,
6.94%,
1/12/25
....
8,250
8,210
L2419328.UP.FTS.B,
7.52%,
1/12/25
....
6,473
6,443
L2415914.UP.FTS.B,
7.64%,
1/12/25
....
3,237
3,219
L2419593.UP.FTS.B,
7.67%,
1/12/25
....
1,110
1,105
L2419517.UP.FTS.B,
7.68%,
1/12/25
....
5,564
5,537
FW2418816.UP.FTS.B,
7.73%,
1/12/25
...
5,550
5,519
L2419589.UP.FTS.B,
7.74%,
1/12/25
....
13,874
13,796
L2416890.UP.FTS.B,
7.78%,
1/12/25
....
5,827
5,795
FW2417431.UP.FTS.B,
7.8%,
1/12/25
....
9,435
9,391
L2419183.UP.FTS.B,
8%,
1/12/25
.......
2,961
2,947
FW2416518.UP.FTS.B,
8.11%,
1/12/25
...
4,627
4,601
L2417943.UP.FTS.B,
8.11%,
1/12/25
.....
4,627
4,601
L2417004.UP.FTS.B,
8.72%,
1/12/25
....
4,630
4,608
L2414073.UP.FTS.B,
8.79%,
1/12/25
....
2,031
2,020
L2415019.UP.FTS.B,
8.85%,
1/12/25
....
1,852
1,842
L2415625.UP.FTS.B,
8.97%,
1/12/25
....
2,958
2,941
L2416430.UP.FTS.B,
9.01%,
1/12/25
....
4,631
4,606
L2414074.UP.FTS.B,
9.04%,
1/12/25
....
13,894
13,818
FW2416507.UP.FTS.B,
9.11%,
1/12/25
...
4,447
4,422
L2417145.UP.FTS.B,
9.34%,
1/12/25
....
1,019
1,014
FW2418164.UP.FTS.B,
9.41%,
1/12/25
...
2,317
2,304
L2417687.UP.FTS.B,
9.43%,
1/12/25
....
1,201
1,191
L2415812.UP.FTS.B,
9.44%,
1/12/25
....
4,993
4,965
L2417726.UP.FTS.B,
9.57%,
1/12/25
....
4,634
4,609
L2414740.UP.FTS.B,
9.6%,
1/12/25
.....
1,390
1,383
FW2413836.UP.FTS.B,
10.39%,
1/12/25
..
2,312
2,299
L2396686.UP.FTS.B,
10.42%,
1/12/25
....
4,638
4,613
FW2419415.UP.FTS.B,
10.5%,
1/12/25
...
1,856
1,846
FW2416931.UP.FTS.B,
10.8%,
1/12/25
...
10,209
10,145
L2414847.UP.FTS.B,
11.02%,
1/12/25
....
10,211
10,148
L2414221.UP.FTS.B,
11.17%,
1/12/25
....
4,642
4,613
L2417964.UP.FTS.B,
11.38%,
1/12/25
....
4,643
4,615
FW2416547.UP.FTS.B,
11.39%,
1/12/25
..
2,693
2,676
L2420369.UP.FTS.B,
11.76%,
1/12/25
....
17,495
17,369
L2415059.UP.FTS.B,
12.06%,
1/12/25
....
1,394
1,385
L2413961.UP.FTS.B,
13.69%,
1/12/25
....
3,725
3,703
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2414544.UP.FTS.B,
14.43%,
1/12/25
....
$
2,329
$
2,315
L2411232.UP.FTS.B,
15.21%,
1/12/25
....
27,039
26,879
L2419075.UP.FTS.B,
17.01%,
1/12/25
....
1,868
1,850
L2418199.UP.FTS.B,
17.24%,
1/12/25
....
872
862
L2417700.UP.FTS.B,
17.92%,
1/12/25
....
3,740
3,704
FW2417716.UP.FTS.B,
18.03%,
1/12/25
..
2,335
2,312
FW2417625.UP.FTS.B,
18.19%,
1/12/25
..
2,618
2,603
FW2416853.UP.FTS.B,
18.35%,
1/12/25
..
6,540
6,477
L2415959.UP.FTS.B,
18.8%,
1/12/25
....
923
914
L2418715.UP.FTS.B,
19.25%,
1/12/25
....
4,681
4,636
L2419498.UP.FTS.B,
19.45%,
1/12/25
....
9,363
9,274
L2417349.UP.FTS.B,
20.05%,
1/12/25
....
1,861
1,843
L2414941.UP.FTS.B,
20.48%,
1/12/25
....
5,623
5,555
FW2416638.UP.FTS.B,
22.19%,
1/12/25
..
9,387
9,274
L2417218.UP.FTS.B,
22.21%,
1/12/25
....
3,775
3,744
L2414519.UP.FTS.B,
22.88%,
1/12/25
....
3,100
3,063
L2418909.UP.FTS.B,
22.9%,
1/12/25
....
2,348
2,320
L2414032.UP.FTS.B,
23.21%,
1/12/25
....
2,611
2,585
L2352635.UP.FTS.B,
23.27%,
1/12/25
....
7,047
6,963
FW2414761.UP.FTS.B,
23.39%,
1/12/25
..
939
927
L2412538.UP.FTS.B,
23.48%,
1/12/25
....
3,759
3,714
FW2417500.UP.FTS.B,
23.65%,
1/12/25
..
1,868
1,845
L2414130.UP.FTS.B,
23.68%,
1/12/25
....
2,988
2,952
FW2414957.UP.FTS.B,
23.71%,
1/12/25
..
11,256
11,150
FW2414041.UP.FTS.B,
23.78%,
1/12/25
..
3,761
3,715
FW2416686.UP.FTS.B,
24.84%,
1/12/25
..
2,270
2,247
FW2418415.UP.FTS.B,
26.15%,
1/12/25
..
14,132
13,965
FW2411570.UP.FTS.B,
26.6%,
1/12/25
...
2,639
2,608
FW2414169.UP.FTS.B,
26.75%,
1/12/25
..
5,279
5,216
FW2415083.UP.FTS.B,
27.47%,
1/12/25
..
5,659
5,593
FW2414437.UP.FTS.B,
27.76%,
1/12/25
..
2,830
2,797
FW2417137.UP.FTS.B,
28.46%,
1/12/25
..
9,351
9,236
FW2415206.UP.FTS.B,
28.53%,
1/12/25
..
9,441
9,330
FW2414944.UP.FTS.B,
29.31%,
1/12/25
..
2,456
2,428
FW2417255.UP.FTS.B,
33.33%,
1/12/25
..
2,700
797
FW2635737.UP.FTS.B,
5.82%,
2/15/25
...
3,320
3,307
L2636718.UP.FTS.B,
6.51%,
2/15/25
....
949
945
L2631679.UP.FTS.B,
6.61%,
2/15/25
....
4,741
4,722
L2632890.UP.FTS.B,
6.77%,
2/15/25
....
9,485
9,447
L2634175.UP.FTS.B,
6.95%,
2/15/25
....
8,546
8,512
L2634671.UP.FTS.B,
8.48%,
2/15/25
....
33,264
33,107
L2634533.UP.FTS.B,
8.5%,
2/15/25
.....
19,009
18,919
L2634613.UP.FTS.B,
8.55%,
2/15/25
....
6,653
6,621
FW2634820.UP.FTS.B,
9.15%,
2/15/25
...
6,561
6,530
L2633581.UP.FTS.B,
9.23%,
2/15/25
....
1,994
1,985
FW2634377.UP.FTS.B,
10%,
2/15/25
....
951
947
L2634177.UP.FTS.B,
15.21%,
2/15/25
....
2,100
2,083
L2636760.UP.FTS.B,
15.98%,
2/15/25
....
12,442
12,354
FW2634284.UP.FTS.B,
16.22%,
2/15/25
..
9,554
9,472
L2634751.UP.FTS.B,
16.31%,
2/15/25
....
1,815
1,805
L2631912.UP.FTS.B,
16.39%,
2/15/25
....
5,733
5,684
FW2626603.UP.FTS.B,
16.54%,
2/15/25
..
39,864
39,511
L2636882.UP.FTS.B,
16.54%,
2/15/25
....
5,256
5,211
L2632664.UP.FTS.B,
17.32%,
2/15/25
....
956
948
L2631947.UP.FTS.B,
17.44%,
2/15/25
....
956
948
L2635618.UP.FTS.B,
17.92%,
2/15/25
....
3,347
3,319
L2633074.UP.FTS.B,
18.31%,
2/15/25
....
6,696
6,639
L2634161.UP.FTS.B,
18.39%,
2/15/25
....
4,018
3,984
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
178
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2631536.UP.FTS.B,
18.63%,
2/15/25
..
$
1,148
$
1,138
L2631294.UP.FTS.B,
19.11%,
2/15/25
....
957
949
L2632627.UP.FTS.B,
20.79%,
2/15/25
....
9,581
9,479
L2634669.UP.FTS.B,
20.85%,
2/15/25
....
9,964
9,859
L2631763.UP.FTS.B,
20.93%,
2/15/25
....
8,215
7,917
FW2636107.UP.FTS.B,
21.14%,
2/15/25
..
10,138
10,019
L2635526.UP.FTS.B,
21.85%,
2/15/25
....
2,650
2,617
FW2631365.UP.FTS.B,
21.86%,
2/15/25
..
6,232
6,165
FW2637244.UP.FTS.B,
22.65%,
2/15/25
..
959
949
L2635186.UP.FTS.B,
23.03%,
2/15/25
....
4,797
4,746
L2635358.UP.FTS.B,
24.79%,
2/15/25
....
7,106
7,030
FW2633708.UP.FTS.B,
25.99%,
2/15/25
..
6,246
6,179
FW2631136.UP.FTS.B,
27.13%,
2/15/25
..
1,820
1,798
FW2631651.UP.FTS.B,
27.52%,
2/15/25
..
6,252
6,184
FW2635191.UP.FTS.B,
29%,
2/15/25
....
3,658
3,618
FW2634333.UP.FTS.B,
29.01%,
2/15/25
..
36,578
36,182
FW2631826.UP.FTS.B,
31.23%,
2/15/25
..
5,142
5,083
L2639657.UP.FTS.B,
5.92%,
2/16/25
....
1,423
1,418
L2639334.UP.FTS.B,
6.42%,
2/16/25
....
7,758
7,721
FW2638680.UP.FTS.B,
7.01%,
2/16/25
...
2,089
2,082
L2639360.UP.FTS.B,
7.14%,
2/16/25
....
16,029
15,962
L2643179.UP.FTS.B,
7.28%,
2/16/25
....
4,697
4,681
L2637484.UP.FTS.B,
7.65%,
2/16/25
....
4,084
4,071
L2639542.UP.FTS.B,
8.21%,
2/16/25
....
2,376
2,366
L2638987.UP.FTS.B,
9.25%,
2/16/25
....
2,287
2,277
L2642308.UP.FTS.B,
10.18%,
2/16/25
....
9,515
9,479
FW2644636.UP.FTS.B,
10.31%,
2/16/25
..
950
946
L2640736.UP.FTS.B,
10.49%,
2/16/25
....
1,428
1,422
FW2639791.UP.FTS.B,
11.24%,
2/16/25
..
4,761
4,740
FW2644605.UP.FTS.B,
13.5%,
2/16/25
...
9,537
9,496
FW2640049.UP.FTS.B,
13.66%,
2/16/25
..
10,205
10,162
FW2641858.UP.FTS.B,
14.06%,
2/16/25
..
5,217
5,179
FW2640344.UP.FTS.B,
14.17%,
2/16/25
..
2,355
2,344
L2644835.UP.FTS.B,
14.27%,
2/16/25
....
12,404
12,352
L2639914.UP.FTS.B,
14.3%,
2/16/25
....
6,679
6,632
L2573704.UP.FTS.B,
14.5%,
2/16/25
....
3,817
3,790
L2644018.UP.FTS.B,
15.49%,
2/16/25
....
3,820
3,793
FW2642814.UP.FTS.B,
15.64%,
2/16/25
..
5,265
5,235
L2644825.UP.FTS.B,
15.86%,
2/16/25
....
2,865
2,845
FW2642902.UP.FTS.B,
16.38%,
2/16/25
..
7,644
7,590
L2640305.UP.FTS.B,
16.68%,
2/16/25
....
6,212
6,168
FW2644294.UP.FTS.B,
16.92%,
2/16/25
..
3,154
3,132
FW2639338.UP.FTS.B,
17.66%,
2/16/25
..
9,567
9,501
FW2639899.UP.FTS.B,
18.71%,
2/16/25
..
9,569
9,503
L2641019.UP.FTS.B,
18.97%,
2/16/25
....
14,355
14,257
L2639930.UP.FTS.B,
19.1%,
2/16/25
....
2,106
2,091
L2644145.UP.FTS.B,
19.28%,
2/16/25
....
2,445
2,321
L2637891.UP.FTS.B,
19.29%,
2/16/25
....
7,517
7,462
FW2639706.UP.FTS.B,
19.94%,
2/16/25
..
6,129
6,075
L2641952.UP.FTS.B,
19.98%,
2/16/25
....
4,214
4,185
L2641810.UP.FTS.B,
22.34%,
2/16/25
....
1,958
1,858
FW2643292.UP.FTS.B,
23.05%,
2/16/25
..
4,701
4,661
L2639553.UP.FTS.B,
23.86%,
2/16/25
....
10,750
10,658
FW2639697.UP.FTS.B,
24.32%,
2/16/25
..
1,632
1,618
FW2638912.UP.FTS.B,
24.71%,
2/16/25
..
2,305
2,285
FW2641058.UP.FTS.B,
24.99%,
2/16/25
..
7,203
7,156
FW2643827.UP.FTS.B,
25.41%,
2/16/25
..
4,803
4,763
FW2643384.UP.FTS.B,
26.02%,
2/16/25
..
4,176
4,140
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2639247.UP.FTS.B,
27.74%,
2/16/25
..
$
7,175
$
7,113
L2627901.UP.FTS.B,
28.31%,
2/16/25
....
13,567
13,455
FW2643033.UP.FTS.B,
29.49%,
2/16/25
..
6,258
6,207
L2644671.UP.FTS.B,
5.08%,
2/17/25
....
9,480
9,448
L2645028.UP.FTS.B,
11.5%,
2/17/25
.....
3,333
3,320
FW2645054.UP.FTS.B,
11.7%,
2/17/25
...
7,348
7,313
L2645804.UP.FTS.B,
15.74%,
2/17/25
....
2,663
2,649
L2604120.UP.FTS.B,
17.7%,
2/17/25
....
9,572
9,523
L2644158.UP.FTS.B,
17.96%,
2/17/25
....
648
640
FW2645759.UP.FTS.B,
24.75%,
2/17/25
..
9,603
9,526
FW2645634.UP.FTS.B,
29.15%,
2/17/25
..
2,022
2,006
L1708948.UP.FTS.B,
7.47%,
9/14/26
....
8,113
8,060
L1709252.UP.FTS.B,
8.33%,
9/14/26
....
9,034
8,975
L1711804.UP.FTS.B,
9.08%,
9/14/26
.....
9,050
8,992
L1709773.UP.FTS.B,
9.1%,
9/14/26
.....
1,810
1,798
L1709466.UP.FTS.B,
9.12%,
9/14/26
....
9,951
9,886
L1711063.UP.FTS.B,
9.57%,
9/14/26
.....
12,686
12,604
L1711325.UP.FTS.B,
9.58%,
9/14/26
.....
15,404
15,305
L1710250.UP.FTS.B,
9.72%,
9/14/26
....
7,252
7,186
L1710722.UP.FTS.B,
9.73%,
9/14/26
....
18,130
18,012
L1709358.UP.FTS.B,
10.97%,
9/14/26
....
39,002
38,647
L1711260.UP.FTS.B,
11.26%,
9/14/26
....
1,820
1,803
L1709982.UP.FTS.B,
11.59%,
9/14/26
....
10,926
10,827
FW1711975.UP.FTS.B,
11.76%,
9/14/26
..
24,594
24,371
L1711112.UP.FTS.B,
12.03%,
9/14/26
....
18,229
18,064
FW1709227.UP.FTS.B,
12.04%,
9/14/26
..
1,780
1,764
L1711960.UP.FTS.B,
12.48%,
9/14/26
....
2,737
2,712
L1708544.UP.FTS.B,
12.57%,
9/14/26
....
3,640
3,607
L1709990.UP.FTS.B,
12.82%,
9/14/26
....
2,283
2,262
FW1709162.UP.FTS.B,
13.06%,
9/14/26
..
8,223
8,148
L1709442.UP.FTS.B,
13.19%,
9/14/26
....
45,694
45,280
L1712219.UP.FTS.B,
13.34%,
9/14/26
....
3,420
3,385
L1711120.UP.FTS.B,
13.48%,
9/14/26
....
5,853
5,800
L1711626.UP.FTS.B,
13.98%,
9/14/26
....
18,310
18,145
L1712525.UP.FTS.B,
14.32%,
9/14/26
....
3,685
3,653
L1705354.UP.FTS.B,
14.33%,
9/14/26
....
21,990
21,791
L1709686.UP.FTS.B,
14.5%,
9/14/26
....
18,332
18,166
L1712405.UP.FTS.B,
14.66%,
9/14/26
....
5,504
5,455
L1712030.UP.FTS.B,
15.05%,
9/14/26
....
2,753
2,717
L1709833.UP.FTS.B,
15.27%,
9/14/26
....
11,017
10,875
FW1711888.UP.FTS.B,
15.29%,
9/14/26
..
9,182
9,063
L1711759.UP.FTS.B,
15.35%,
9/14/26
....
9,180
9,061
L1711137.UP.FTS.B,
15.58%,
9/14/26
....
2,756
2,721
FW1710596.UP.FTS.B,
15.85%,
9/14/26
..
4,596
4,537
L1710000.UP.FTS.B,
16.05%,
9/14/26
....
18,394
18,156
FW1711241.UP.FTS.B,
16.08%,
9/14/26
..
3,679
3,631
L1707201.UP.FTS.B,
16.24%,
9/14/26
....
13,801
13,623
FW1711886.UP.FTS.B,
16.44%,
9/14/26
..
1,841
1,817
FW1710711.UP.FTS.B,
16.48%,
9/14/26
..
2,301
2,272
L1708685.UP.FTS.B,
16.63%,
9/14/26
....
2,762
2,738
L1708577.UP.FTS.B,
16.66%,
9/14/26
....
6,471
6,379
L1711658.UP.FTS.B,
16.72%,
9/14/26
....
2,703
2,667
L1710867.UP.FTS.B,
16.91%,
9/14/26
....
3,685
3,638
L1702339.UP.FTS.B,
16.97%,
9/14/26
....
12,294
11,567
FW1709135.UP.FTS.B,
16.99%,
9/14/26
..
4,608
4,548
L1709613.UP.FTS.B,
17.03%,
9/14/26
....
2,765
2,729
FW1710769.UP.FTS.B,
17.16%,
9/14/26
..
5,531
5,459
L1711610.UP.FTS.B,
17.32%,
9/14/26
....
23,053
22,692
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
179
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1708807.UP.FTS.B,
17.72%,
9/14/26
....
$
9,229
$
9,110
L1711190.UP.FTS.B,
17.79%,
9/14/26
....
6,000
5,906
L1710981.UP.FTS.B,
17.81%,
9/14/26
....
9,414
8,848
L1710421.UP.FTS.B,
18.12%,
9/14/26
....
14,410
14,171
L1710484.UP.FTS.B,
18.16%,
9/14/26
....
7,390
7,274
FW1712049.UP.FTS.B,
18.25%,
9/14/26
..
4,989
4,911
L1710571.UP.FTS.B,
18.38%,
9/14/26
....
1,484
108
FW1709424.UP.FTS.B,
18.79%,
9/14/26
..
13,874
13,695
FW1709134.UP.FTS.B,
18.89%,
9/14/26
..
9,251
9,106
L1710731.UP.FTS.B,
18.91%,
9/14/26
....
2,775
2,732
L1712201.UP.FTS.B,
18.94%,
9/14/26
....
2,312
2,275
L1709877.UP.FTS.B,
19.26%,
9/14/26
....
4,630
4,558
FW1711268.UP.FTS.B,
19.32%,
9/14/26
..
6,946
6,837
L1711904.UP.FTS.B,
19.49%,
9/14/26
....
18,454
18,266
L1711008.UP.FTS.B,
19.81%,
9/14/26
....
9,268
9,176
L1711215.UP.FTS.B,
19.91%,
9/14/26
....
5,562
5,507
L1709643.UP.FTS.B,
20.04%,
9/14/26
....
3,709
3,651
FW1709115.UP.FTS.B,
20.14%,
9/14/26
..
4,482
4,409
L1708842.UP.FTS.B,
20.24%,
9/14/26
....
7,384
7,308
FW1711645.UP.FTS.B,
20.26%,
9/14/26
..
25,028
24,634
L1712297.UP.FTS.B,
20.36%,
9/14/26
....
9,279
9,133
FW1712011.UP.FTS.B,
20.57%,
9/14/26
..
5,105
5,025
L1708429.UP.FTS.B,
20.63%,
9/14/26
....
2,785
2,757
L1710126.UP.FTS.B,
20.84%,
9/14/26
....
6,500
6,435
L1708585.UP.FTS.B,
20.86%,
9/14/26
....
27,643
27,353
L1711983.UP.FTS.B,
20.92%,
9/14/26
....
4,682
4,611
FW1711817.UP.FTS.B,
20.95%,
9/14/26
..
4,459
4,414
L1711180.UP.FTS.B,
21%,
9/14/26
......
22,303
22,081
L1711790.UP.FTS.B,
21.29%,
9/14/26
....
1,316
1,300
FW1708681.UP.FTS.B,
21.58%,
9/14/26
..
1,709
1,679
FW1712143.UP.FTS.B,
21.68%,
9/14/26
..
4,651
4,605
FW1704691.UP.FTS.B,
21.96%,
9/14/26
..
9,247
9,098
FW1710924.UP.FTS.B,
21.98%,
9/14/26
..
1,457
34
L1709159.UP.FTS.B,
22.01%,
9/14/26
....
14,084
13,870
L1707499.UP.FTS.B,
22.03%,
9/14/26
....
9,312
9,219
L1710153.UP.FTS.B,
22.07%,
9/14/26
....
6,470
6,403
L1710829.UP.FTS.B,
22.11%,
9/14/26
....
4,655
4,595
L1709427.UP.FTS.B,
22.21%,
9/14/26
....
3,725
3,687
L1711058.UP.FTS.B,
22.48%,
9/14/26
....
7,919
7,840
L1710706.UP.FTS.B,
22.62%,
9/14/26
....
2,874
2,844
L1711276.UP.FTS.B,
23.33%,
9/14/26
....
2,053
2,032
FW1708581.UP.FTS.B,
23.53%,
9/14/26
..
13,986
13,845
L1712099.UP.FTS.B,
23.67%,
9/14/26
....
2,054
2,034
L1704673.UP.FTS.B,
23.71%,
9/14/26
....
10,271
10,168
FW1711728.UP.FTS.B,
23.74%,
9/14/26
..
3,922
3,883
L1710184.UP.FTS.B,
24.03%,
9/14/26
....
1,672
1,646
L1709189.UP.FTS.B,
24.05%,
9/14/26
....
32,700
32,372
FW1709337.UP.FTS.B,
24.31%,
9/14/26
..
23,368
23,134
L1712413.UP.FTS.B,
24.71%,
9/14/26
....
1,216
1,200
L1709924.UP.FTS.B,
24.74%,
9/14/26
....
1,392
1,377
L1710379.UP.FTS.B,
24.83%,
9/14/26
....
1,216
1,204
FW1710998.UP.FTS.B,
24.9%,
9/14/26
...
29,210
419
FW1710506.UP.FTS.B,
24.97%,
9/14/26
..
5,232
5,171
L1710592.UP.FTS.B,
25.03%,
9/14/26
....
1,217
1,204
L1706788.UP.FTS.B,
25.12%,
9/14/26
....
1,685
1,668
FW1712236.UP.FTS.B,
25.24%,
9/14/26
..
7,550
7,473
L1711119.UP.FTS.B,
25.25%,
9/14/26
....
1,488
1,472
L1710759.UP.FTS.B,
25.29%,
9/14/26
....
1,030
1,020
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1711889.UP.FTS.B,
25.29%,
9/14/26
....
$
3,090
$
3,059
L1712021.UP.FTS.B,
25.29%,
9/14/26
....
2,996
2,966
L1712197.UP.FTS.B,
25.34%,
9/14/26
....
480
472
L1710443.UP.FTS.B,
25.38%,
9/14/26
....
5,489
5,429
L1708479.UP.FTS.B,
25.39%,
9/14/26
....
2,903
2,874
L1708413.UP.FTS.B,
25.44%,
9/14/26
....
1,218
1,205
L1709050.UP.FTS.B,
25.44%,
9/14/26
....
2,810
2,782
L1712014.UP.FTS.B,
25.46%,
9/14/26
....
1,592
1,576
FW1707014.UP.FTS.B,
25.47%,
9/14/26
..
12,693
12,560
L1710375.UP.FTS.B,
25.49%,
9/14/26
....
1,872
1,853
L1707815.UP.FTS.B,
25.5%,
9/14/26
....
6,624
6,557
L1682631.UP.FTS.B,
25.57%,
9/14/26
....
47,081
48,065
FW1712366.UP.FTS.B,
25.67%,
9/14/26
..
2,811
2,783
L1709036.UP.FTS.B,
25.69%,
9/14/26
....
6,372
6,308
L1709217.UP.FTS.B,
25.78%,
9/14/26
....
23,437
22,188
L1711582.UP.FTS.B,
25.87%,
9/14/26
....
24,657
24,404
L1712466.UP.FTS.B,
25.9%,
9/14/26
....
2,907
2,877
L1709668.UP.FTS.B,
25.91%,
9/14/26
....
1,406
1,384
L1708800.UP.FTS.B,
25.93%,
9/14/26
....
4,500
4,454
FW1712638.UP.FTS.B,
25.96%,
9/14/26
..
3,470
246
L1710004.UP.FTS.B,
26.05%,
9/14/26
....
9,376
9,282
L1711462.UP.FTS.B,
26.16%,
9/14/26
....
3,470
248
L1711668.UP.FTS.B,
26.18%,
9/14/26
....
4,408
4,363
L1704675.UP.FTS.B,
26.55%,
9/14/26
....
6,110
5,777
L1708367.UP.FTS.B,
26.76%,
9/14/26
....
3,062
3,029
FW1711474.UP.FTS.B,
26.77%,
9/14/26
..
5,212
4,931
FW1711990.UP.FTS.B,
26.83%,
9/14/26
..
8,638
8,550
FW1706254.UP.FTS.B,
26.93%,
9/14/26
..
27,799
8,128
FW1711419.UP.FTS.B,
27.05%,
9/14/26
..
3,384
3,347
L1701043.UP.FTS.B,
27.26%,
9/14/26
....
11,275
11,161
FW1711816.UP.FTS.B,
27.5%,
9/14/26
...
1,421
1,407
FW1712397.UP.FTS.B,
27.52%,
9/14/26
..
2,820
2,791
FW1708181.UP.FTS.B,
28.2%,
9/14/26
...
14,664
58
FW1711280.UP.FTS.B,
28.58%,
9/14/26
..
19,717
19,513
FW1712164.UP.FTS.B,
28.97%,
9/14/26
..
3,296
3,262
FW1712431.UP.FTS.B,
29.12%,
9/14/26
..
2,827
2,799
FW1711078.UP.FTS.B,
29.28%,
9/14/26
..
3,771
3,733
FW1709483.UP.FTS.B,
29.34%,
9/14/26
..
4,600
326
FW1701558.UP.FTS.B,
29.38%,
9/14/26
..
11,303
11,187
FW1708838.UP.FTS.B,
29.45%,
9/14/26
..
915
904
FW1711953.UP.FTS.B,
29.73%,
9/14/26
..
3,422
3,363
FW1711740.UP.FTS.B,
29.78%,
9/14/26
..
12,584
3,691
FW1709270.UP.FTS.B,
29.95%,
9/14/26
..
5,096
5,044
FW1697845.UP.FTS.B,
30.15%,
9/14/26
..
4,007
(17)
FW1711943.UP.FTS.B,
30.23%,
9/14/26
..
4,769
4,512
FW1708445.UP.FTS.B,
30.24%,
9/14/26
..
2,134
316
FW1711057.UP.FTS.B,
30.36%,
9/14/26
..
1,661
1,643
FW1709895.UP.FTS.B,
30.37%,
9/14/26
..
3,588
3,552
FW1709566.UP.FTS.B,
30.55%,
9/14/26
..
1,528
1,512
FW1708159.UP.FTS.B,
30.6%,
9/14/26
...
1,807
1,785
FW1712255.UP.FTS.B,
30.71%,
9/14/26
..
1,478
103
FW1710725.UP.FTS.B,
30.72%,
9/14/26
..
3,212
3,180
FW1712184.UP.FTS.B,
30.77%,
9/14/26
..
5,352
5,296
FW1712361.UP.FTS.B,
30.85%,
9/14/26
..
4,062
3,910
FW1694372.UP.FTS.B,
30.91%,
9/14/26
..
992
70
FW1708283.UP.FTS.B,
30.95%,
9/14/26
..
3,781
3,742
FW1710730.UP.FTS.B,
31.01%,
9/14/26
..
2,732
405
FW1709045.UP.FTS.B,
31.04%,
9/14/26
..
2,836
2,807
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
180
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW1712038.UP.FTS.B,
31.06%,
9/14/26
..
$
2,986
$
2,954
FW1711778.UP.FTS.B,
31.18%,
9/14/26
..
3,146
3,114
FW1709334.UP.FTS.B,
31.22%,
9/14/26
..
1,608
1,591
FW1709206.UP.FTS.B,
31.24%,
9/14/26
..
1,324
1,310
FW1709237.UP.FTS.B,
31.24%,
9/14/26
..
4,728
4,680
FW1710082.UP.FTS.B,
31.29%,
9/14/26
..
994
148
FW1687516.UP.FTS.B,
31.34%,
9/14/26
..
28,372
28,083
FW1712567.UP.FTS.B,
31.44%,
9/14/26
..
2,743
2,715
FW1711131.UP.FTS.B,
31.51%,
9/14/26
..
2,182
2,159
FW1708209.UP.FTS.B,
31.55%,
9/14/26
..
6,623
6,556
FW1709680.UP.FTS.B,
31.93%,
9/14/26
..
4,435
4,199
FW1710244.UP.FTS.B,
31.98%,
9/14/26
..
3,500
247
FW1711329.UP.FTS.B,
32.12%,
9/14/26
..
3,341
3,308
FW1708897.UP.FTS.B,
32.27%,
9/14/26
..
2,645
2,614
FW1709995.UP.FTS.B,
32.33%,
9/14/26
..
13,639
13,499
FW1705277.UP.FTS.B,
32.78%,
9/14/26
..
39,720
39,314
FW1707590.UP.FTS.B,
32.85%,
9/14/26
..
4,739
4,691
L1873953.UP.FTS.B,
6.89%,
10/18/26
....
45,674
45,411
FW1872946.UP.FTS.B,
7.02%,
10/18/26
..
5,947
5,913
FW1873265.UP.FTS.B,
7.52%,
10/18/26
..
2,748
2,732
L1873658.UP.FTS.B,
8.56%,
10/18/26
....
33,506
33,316
FW1873694.UP.FTS.B,
8.87%,
10/18/26
..
1,837
1,827
L1873576.UP.FTS.B,
10.5%,
10/18/26
....
9,860
9,281
FW1872040.UP.FTS.B,
10.7%,
10/18/26
..
506
501
L1871496.UP.FTS.B,
10.72%,
10/18/26
...
17,060
16,964
L1873797.UP.FTS.B,
10.87%,
10/18/26
...
4,601
4,564
L1874550.UP.FTS.B,
10.94%,
10/18/26
...
7,389
7,332
L1873178.UP.FTS.B,
11.12%,
10/18/26
...
7,291
7,232
L1873001.UP.FTS.B,
11.14%,
10/18/26
...
6,922
6,866
L1872155.UP.FTS.B,
11.36%,
10/18/26
...
1,835
1,818
L1873842.UP.FTS.B,
11.7%,
10/18/26
....
16,077
15,948
L1873090.UP.FTS.B,
11.9%,
10/18/26
....
1,387
1,375
L1873798.UP.FTS.B,
12.44%,
10/18/26
...
3,701
3,672
L1873392.UP.FTS.B,
12.58%,
10/18/26
...
11,848
11,753
L1874099.UP.FTS.B,
12.59%,
10/18/26
...
16,638
16,505
L1873896.UP.FTS.B,
12.61%,
10/18/26
...
5,091
5,051
L1873977.UP.FTS.B,
12.66%,
10/18/26
...
11,743
11,649
L1872876.UP.FTS.B,
13.07%,
10/18/26
...
2,316
2,298
L1873511.UP.FTS.B,
13.12%,
10/18/26
...
16,678
16,545
L1874284.UP.FTS.B,
13.39%,
10/18/26
...
7,416
7,357
L1873391.UP.FTS.B,
13.44%,
10/18/26
...
9,272
9,198
L1873434.UP.FTS.B,
13.54%,
10/18/26
...
2,760
2,738
FW1873975.UP.FTS.B,
13.55%,
10/18/26
.
6,028
5,980
L1862693.UP.FTS.B,
13.59%,
10/18/26
...
7,425
7,367
FW1874302.UP.FTS.B,
13.81%,
10/18/26
.
46,330
45,960
L1873174.UP.FTS.B,
13.86%,
10/18/26
...
16,186
16,050
L1874369.UP.FTS.B,
14.32%,
10/18/26
...
7,430
7,345
L1874287.UP.FTS.B,
14.37%,
10/18/26
...
14,861
14,743
FW1874328.UP.FTS.B,
14.8%,
10/18/26
..
9,296
9,190
L1860167.UP.FTS.B,
14.86%,
10/18/26
...
1,580
1,562
L1874015.UP.FTS.B,
15.07%,
10/18/26
...
14,696
14,528
L1873885.UP.FTS.B,
15.48%,
10/18/26
...
17,685
17,545
L1874280.UP.FTS.B,
15.62%,
10/18/26
...
28,438
26,785
L1873194.UP.FTS.B,
15.66%,
10/18/26
...
2,367
2,347
L1873835.UP.FTS.B,
15.93%,
10/18/26
...
9,315
9,209
L1873166.UP.FTS.B,
16.01%,
10/18/26
...
18,634
18,421
L1872550.UP.FTS.B,
16.04%,
10/18/26
...
4,659
4,606
L1872814.UP.FTS.B,
16.38%,
10/18/26
...
13,899
13,736
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1874290.UP.FTS.B,
16.39%,
10/18/26
...
$
3,208
$
3,181
L1873320.UP.FTS.B,
16.64%,
10/18/26
...
1,866
1,844
L1873808.UP.FTS.B,
16.88%,
10/18/26
...
5,132
5,061
L1874262.UP.FTS.B,
17.04%,
10/18/26
...
6,369
6,123
L1873419.UP.FTS.B,
17.21%,
10/18/26
...
4,669
4,615
L1873707.UP.FTS.B,
17.21%,
10/18/26
...
11,206
11,078
L1874383.UP.FTS.B,
17.27%,
10/18/26
...
8,591
8,472
L1874238.UP.FTS.B,
17.32%,
10/18/26
...
4,670
4,605
L1873745.UP.FTS.B,
17.46%,
10/18/26
...
9,341
9,212
FW1869707.UP.FTS.B,
17.52%,
10/18/26
.
14,014
13,819
FW1874259.UP.FTS.B,
17.55%,
10/18/26
.
30,552
30,203
FW1873390.UP.FTS.B,
17.6%,
10/18/26
..
11,212
11,057
L1873345.UP.FTS.B,
17.63%,
10/18/26
...
5,627
5,551
FW1874335.UP.FTS.B,
17.64%,
10/18/26
.
37,576
37,276
L1874163.UP.FTS.B,
17.64%,
10/18/26
...
6,534
6,443
FW1874438.UP.FTS.B,
18.01%,
10/18/26
.
7,175
7,047
L1868602.UP.FTS.B,
18.18%,
10/18/26
...
3,274
3,228
L1873867.UP.FTS.B,
18.28%,
10/18/26
...
15,343
15,129
L1872889.UP.FTS.B,
18.38%,
10/18/26
...
18,713
18,453
FW1873109.UP.FTS.B,
18.49%,
10/18/26
.
8,891
8,767
L1872957.UP.FTS.B,
18.56%,
10/18/26
...
12,075
11,903
L1874018.UP.FTS.B,
18.78%,
10/18/26
...
5,091
5,018
L1874471.UP.FTS.B,
18.86%,
10/18/26
...
1,873
1,852
L1873231.UP.FTS.B,
18.94%,
10/18/26
...
11,568
11,433
L1872626.UP.FTS.B,
19.06%,
10/18/26
...
6,745
6,651
L1873648.UP.FTS.B,
19.32%,
10/18/26
...
4,217
4,159
L1873350.UP.FTS.B,
19.42%,
10/18/26
...
10,975
10,816
FW1874119.UP.FTS.B,
19.46%,
10/18/26
.
14,061
13,866
L1873155.UP.FTS.B,
19.56%,
10/18/26
...
3,129
2,945
L1874021.UP.FTS.B,
19.56%,
10/18/26
...
18,751
18,491
L1873356.UP.FTS.B,
19.63%,
10/18/26
...
1,594
1,580
L1873176.UP.FTS.B,
19.77%,
10/18/26
...
14,069
13,949
FW1873722.UP.FTS.B,
19.81%,
10/18/26
.
6,566
6,475
L1872983.UP.FTS.B,
19.88%,
10/18/26
...
5,693
5,358
FW1873856.UP.FTS.B,
20.15%,
10/18/26
.
5,631
5,553
L1874118.UP.FTS.B,
20.23%,
10/18/26
...
31,106
30,834
L1873825.UP.FTS.B,
20.43%,
10/18/26
...
46,949
46,547
L1873221.UP.FTS.B,
20.79%,
10/18/26
...
1,879
1,853
L1873225.UP.FTS.B,
21.05%,
10/18/26
...
6,659
6,310
L1872967.UP.FTS.B,
21.07%,
10/18/26
...
6,110
6,058
L1866820.UP.FTS.B,
21.37%,
10/18/26
...
23,511
23,310
L1874536.UP.FTS.B,
21.47%,
10/18/26
...
5,079
5,022
L1870017.UP.FTS.B,
21.59%,
10/18/26
...
5,725
5,427
FW1874313.UP.FTS.B,
21.61%,
10/18/26
.
3,401
515
L1873820.UP.FTS.B,
21.93%,
10/18/26
...
3,201
3,173
L1872738.UP.FTS.B,
21.97%,
10/18/26
...
1,412
1,400
L1872849.UP.FTS.B,
21.97%,
10/18/26
...
2,253
2,219
L1873278.UP.FTS.B,
21.98%,
10/18/26
...
5,554
5,506
FW1873100.UP.FTS.B,
22%,
10/18/26
...
1,348
392
L1873489.UP.FTS.B,
22.12%,
10/18/26
...
14,124
14,003
L1872778.UP.FTS.B,
22.26%,
10/18/26
...
3,711
3,677
L1872381.UP.FTS.B,
22.4%,
10/18/26
....
2,355
2,335
L1872881.UP.FTS.B,
22.46%,
10/18/26
...
37,056
36,712
L1872904.UP.FTS.B,
22.48%,
10/18/26
...
4,711
4,670
L1873504.UP.FTS.B,
22.55%,
10/18/26
...
1,265
1,252
L1874352.UP.FTS.B,
22.6%,
10/18/26
....
30,814
30,550
L1874034.UP.FTS.B,
22.67%,
10/18/26
...
2,073
2,056
L1873496.UP.FTS.B,
22.72%,
10/18/26
...
15,366
15,234
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
181
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1874070.UP.FTS.B,
22.83%,
10/18/26
...
$
5,715
$
5,416
FW1873464.UP.FTS.B,
22.91%,
10/18/26
.
2,828
2,804
L1873741.UP.FTS.B,
22.96%,
10/18/26
...
1,595
1,580
L1873138.UP.FTS.B,
23.11%,
10/18/26
...
4,763
4,514
FW1873716.UP.FTS.B,
23.2%,
10/18/26
..
5,851
5,798
L1873047.UP.FTS.B,
23.35%,
10/18/26
...
4,823
1,406
L1874467.UP.FTS.B,
23.73%,
10/18/26
...
16,520
16,379
L1873651.UP.FTS.B,
23.74%,
10/18/26
...
8,395
8,322
L1873293.UP.FTS.B,
23.76%,
10/18/26
...
1,696
1,681
L1873307.UP.FTS.B,
23.79%,
10/18/26
...
1,416
1,404
L1873349.UP.FTS.B,
23.8%,
10/18/26
....
1,829
1,810
L1874279.UP.FTS.B,
23.83%,
10/18/26
...
1,091
78
L1872931.UP.FTS.B,
23.85%,
10/18/26
...
4,721
4,681
L1873067.UP.FTS.B,
23.95%,
10/18/26
...
9,611
9,519
L1873492.UP.FTS.B,
23.95%,
10/18/26
...
16,484
16,341
L1874063.UP.FTS.B,
24.01%,
10/18/26
...
6,611
6,554
L1873180.UP.FTS.B,
24.02%,
10/18/26
...
944
936
L1872601.UP.FTS.B,
24.04%,
10/18/26
...
4,722
4,682
L1838915.UP.FTS.B,
24.09%,
10/18/26
...
23,614
23,411
L1873408.UP.FTS.B,
24.34%,
10/18/26
...
2,835
2,810
L1874373.UP.FTS.B,
24.41%,
10/18/26
...
1,342
1,272
FW1873441.UP.FTS.B,
24.5%,
10/18/26
..
10,397
10,308
L1873035.UP.FTS.B,
24.5%,
10/18/26
....
5,950
907
L1872511.UP.FTS.B,
24.58%,
10/18/26
...
6,961
6,899
L1873660.UP.FTS.B,
24.58%,
10/18/26
...
9,611
9,114
L1873696.UP.FTS.B,
24.62%,
10/18/26
...
4,255
4,218
L1870381.UP.FTS.B,
24.72%,
10/18/26
...
6,568
6,509
L1873373.UP.FTS.B,
24.83%,
10/18/26
...
4,774
4,525
L1868887.UP.FTS.B,
24.97%,
10/18/26
...
14,017
13,885
L1872882.UP.FTS.B,
24.99%,
10/18/26
...
2,365
2,344
L1873659.UP.FTS.B,
25.01%,
10/18/26
...
1,306
1,294
L1872784.UP.FTS.B,
25.04%,
10/18/26
...
6,149
6,096
L1874475.UP.FTS.B,
25.04%,
10/18/26
...
2,176
2,157
L1873877.UP.FTS.B,
25.05%,
10/18/26
...
4,259
4,221
L1874065.UP.FTS.B,
25.09%,
10/18/26
...
9,176
9,097
L1872998.UP.FTS.B,
25.1%,
10/18/26
....
946
933
FW1874269.UP.FTS.B,
25.11%,
10/18/26
.
4,730
4,689
L1873308.UP.FTS.B,
25.11%,
10/18/26
...
1,497
1,473
L1872896.UP.FTS.B,
25.12%,
10/18/26
...
14,474
14,350
L1873304.UP.FTS.B,
25.15%,
10/18/26
...
1,609
1,595
L1873657.UP.FTS.B,
25.16%,
10/18/26
...
7,689
7,299
L1874547.UP.FTS.B,
25.16%,
10/18/26
...
1,300
93
FW1873516.UP.FTS.B,
25.23%,
10/18/26
.
14,250
14,127
L1872941.UP.FTS.B,
25.23%,
10/18/26
...
1,514
1,501
FW1872050.UP.FTS.B,
25.29%,
10/18/26
.
3,783
3,751
FW1873077.UP.FTS.B,
25.29%,
10/18/26
.
2,839
2,814
L1870436.UP.FTS.B,
25.29%,
10/18/26
...
2,650
2,627
L1872920.UP.FTS.B,
25.29%,
10/18/26
...
2,934
2,908
L1874211.UP.FTS.B,
25.29%,
10/18/26
...
946
938
L1873318.UP.FTS.B,
25.3%,
10/18/26
....
1,721
504
L1873957.UP.FTS.B,
25.3%,
10/18/26
....
9,096
337
L1873438.UP.FTS.B,
25.33%,
10/18/26
...
1,224
1,213
L1873627.UP.FTS.B,
25.33%,
10/18/26
...
946
938
L1805232.UP.FTS.B,
25.36%,
10/18/26
...
5,205
5,160
L1872764.UP.FTS.B,
25.4%,
10/18/26
....
1,420
1,407
L1869327.UP.FTS.B,
25.42%,
10/18/26
...
2,839
2,815
L1872094.UP.FTS.B,
25.42%,
10/18/26
...
3,786
3,753
L1873079.UP.FTS.B,
25.43%,
10/18/26
...
1,356
1,341
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1873235.UP.FTS.B,
25.45%,
10/18/26
...
$
6,232
$
6,177
L1874416.UP.FTS.B,
25.46%,
10/18/26
...
28,089
27,835
L1873049.UP.FTS.B,
25.47%,
10/18/26
...
4,638
4,598
L1874151.UP.FTS.B,
25.48%,
10/18/26
...
1,041
1,032
L1873818.UP.FTS.B,
25.5%,
10/18/26
....
1,862
1,834
L1874395.UP.FTS.B,
25.5%,
10/18/26
....
7,547
7,240
L1872410.UP.FTS.B,
25.51%,
10/18/26
...
3,100
158
L1873121.UP.FTS.B,
25.53%,
10/18/26
...
7,645
7,246
FW1874455.UP.FTS.B,
25.58%,
10/18/26
.
14,261
14,139
FW1873439.UP.FTS.B,
25.66%,
10/18/26
.
1,339
1,269
L1873873.UP.FTS.B,
25.66%,
10/18/26
...
5,492
5,444
FW1873339.UP.FTS.B,
25.7%,
10/18/26
..
13,875
13,661
L1873528.UP.FTS.B,
25.71%,
10/18/26
...
7,007
6,947
L1874370.UP.FTS.B,
25.71%,
10/18/26
...
5,088
5,042
L1873151.UP.FTS.B,
25.86%,
10/18/26
...
2,265
2,245
L1873025.UP.FTS.B,
25.87%,
10/18/26
...
1,924
1,824
L1874250.UP.FTS.B,
25.87%,
10/18/26
...
10,282
10,188
FW1874382.UP.FTS.B,
25.89%,
10/18/26
.
992
70
L1874041.UP.FTS.B,
26.01%,
10/18/26
...
7,109
7,042
L1874548.UP.FTS.B,
26.04%,
10/18/26
...
5,968
5,917
FW1874338.UP.FTS.B,
26.12%,
10/18/26
.
9,475
9,393
L1870887.UP.FTS.B,
26.18%,
10/18/26
...
1,611
1,597
FW1870589.UP.FTS.B,
26.19%,
10/18/26
.
4,650
4,579
L1872603.UP.FTS.B,
26.26%,
10/18/26
...
5,875
5,825
L1874047.UP.FTS.B,
26.3%,
10/18/26
....
948
940
L1873838.UP.FTS.B,
26.46%,
10/18/26
...
3,961
3,926
FW1872913.UP.FTS.B,
26.55%,
10/18/26
.
11,382
11,281
FW1873971.UP.FTS.B,
26.57%,
10/18/26
.
5,688
5,640
FW1874080.UP.FTS.B,
26.63%,
10/18/26
.
1,869
1,851
FW1873253.UP.FTS.B,
26.73%,
10/18/26
.
4,713
4,670
FW1874049.UP.FTS.B,
26.74%,
10/18/26
.
9,507
9,424
FW1872024.UP.FTS.B,
27.02%,
10/18/26
.
3,211
3,183
FW1874429.UP.FTS.B,
27.19%,
10/18/26
.
3,606
3,575
FW1873145.UP.FTS.B,
27.24%,
10/18/26
.
9,440
9,356
L1873149.UP.FTS.B,
27.32%,
10/18/26
...
5,686
5,636
FW1874433.UP.FTS.B,
27.4%,
10/18/26
..
29,522
29,268
FW1873069.UP.FTS.B,
27.48%,
10/18/26
.
3,323
3,294
FW1874152.UP.FTS.B,
27.49%,
10/18/26
.
9,510
9,427
FW1872377.UP.FTS.B,
27.5%,
10/18/26
..
4,598
4,358
FW1873756.UP.FTS.B,
27.59%,
10/18/26
.
3,745
3,601
FW1873640.UP.FTS.B,
27.67%,
10/18/26
.
33,236
32,950
FW1874252.UP.FTS.B,
27.67%,
10/18/26
.
7,597
7,532
FW1873344.UP.FTS.B,
27.72%,
10/18/26
.
13,295
13,181
FW1872229.UP.FTS.B,
27.85%,
10/18/26
.
8,333
28
FW1874126.UP.FTS.B,
27.94%,
10/18/26
.
4,750
4,709
FW1873866.UP.FTS.B,
28.25%,
10/18/26
.
922
913
FW1872622.UP.FTS.B,
28.59%,
10/18/26
.
2,845
2,820
FW1873950.UP.FTS.B,
28.68%,
10/18/26
.
2,096
2,077
FW1874206.UP.FTS.B,
28.74%,
10/18/26
.
2,473
2,451
FW1874321.UP.FTS.B,
28.99%,
10/18/26
.
1,522
1,509
FW1872259.UP.FTS.B,
29.09%,
10/18/26
.
3,400
241
FW1872134.UP.FTS.B,
29.12%,
10/18/26
.
4,758
4,717
FW1873987.UP.FTS.B,
29.18%,
10/18/26
.
2,200
154
FW1872939.UP.FTS.B,
29.22%,
10/18/26
.
3,000
213
FW1874251.UP.FTS.B,
29.26%,
10/18/26
.
4,759
4,718
FW1874208.UP.FTS.B,
29.47%,
10/18/26
.
3,332
3,303
FW1873452.UP.FTS.B,
29.54%,
10/18/26
.
9,555
9,473
FW1871134.UP.FTS.B,
29.68%,
10/18/26
.
17,464
1,236
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
182
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW1860558.UP.FTS.B,
29.76%,
10/18/26
.
$
5,519
$
5,471
FW1872610.UP.FTS.B,
29.8%,
10/18/26
..
4,953
345
FW1873160.UP.FTS.B,
30.04%,
10/18/26
.
2,191
2,172
FW1874215.UP.FTS.B,
30.05%,
10/18/26
.
16,768
16,624
FW1874445.UP.FTS.B,
30.14%,
10/18/26
.
3,811
3,779
FW1873788.UP.FTS.B,
30.2%,
10/18/26
..
4,765
4,724
FW1873929.UP.FTS.B,
30.31%,
10/18/26
.
985
(2)
FW1869470.UP.FTS.B,
30.44%,
10/18/26
.
1,907
1,890
FW1873268.UP.FTS.B,
30.52%,
10/18/26
.
1,716
1,701
FW1872558.UP.FTS.B,
30.55%,
10/18/26
.
1,239
1,229
FW1872779.UP.FTS.B,
30.59%,
10/18/26
.
1,935
1,836
FW1873577.UP.FTS.B,
30.59%,
10/18/26
.
5,721
5,671
FW1872937.UP.FTS.B,
30.6%,
10/18/26
..
3,802
3,769
FW1872183.UP.FTS.B,
30.61%,
10/18/26
.
954
945
FW1873256.UP.FTS.B,
30.68%,
10/18/26
.
1,716
1,702
FW1872032.UP.FTS.B,
30.69%,
10/18/26
.
1,265
1,200
FW1873026.UP.FTS.B,
30.69%,
10/18/26
.
901
886
FW1873917.UP.FTS.B,
30.73%,
10/18/26
.
1,240
1,229
FW1873137.UP.FTS.B,
30.77%,
10/18/26
.
1,543
1,463
FW1874317.UP.FTS.B,
30.79%,
10/18/26
.
4,599
1,363
FW1873110.UP.FTS.B,
30.82%,
10/18/26
.
4,006
3,971
FW1873983.UP.FTS.B,
30.83%,
10/18/26
.
2,195
2,175
FW1873629.UP.FTS.B,
30.84%,
10/18/26
.
3,317
3,287
FW1873543.UP.FTS.B,
30.85%,
10/18/26
.
6,249
6,185
FW1873168.UP.FTS.B,
30.88%,
10/18/26
.
3,529
3,499
FW1868928.UP.FTS.B,
30.91%,
10/18/26
.
10,237
9,732
FW1873196.UP.FTS.B,
30.96%,
10/18/26
.
7,273
7,210
FW1865333.UP.FTS.B,
31%,
10/18/26
...
2,862
2,837
FW1867639.UP.FTS.B,
31%,
10/18/26
...
2,977
2,822
FW1873018.UP.FTS.B,
31%,
10/18/26
...
1,048
1,039
FW1874190.UP.FTS.B,
31.02%,
10/18/26
.
18,241
18,079
FW1873583.UP.FTS.B,
31.05%,
10/18/26
.
1,240
1,230
FW1874435.UP.FTS.B,
31.05%,
10/18/26
.
1,717
1,703
FW1873245.UP.FTS.B,
31.06%,
10/18/26
.
1,336
1,324
FW1873234.UP.FTS.B,
31.11%,
10/18/26
.
4,219
3,999
FW1869084.UP.FTS.B,
31.12%,
10/18/26
.
3,369
0
FW1873980.UP.FTS.B,
31.12%,
10/18/26
.
2,335
2,313
FW1873675.UP.FTS.B,
31.14%,
10/18/26
.
21,927
21,686
FW1873932.UP.FTS.B,
31.15%,
10/18/26
.
3,221
3,192
FW1860483.UP.FTS.B,
31.16%,
10/18/26
.
5,439
5,392
FW1874112.UP.FTS.B,
31.18%,
10/18/26
.
4,676
4,635
FW1873036.UP.FTS.B,
31.2%,
10/18/26
..
3,053
3,027
FW1874434.UP.FTS.B,
31.22%,
10/18/26
.
3,600
254
FW1874512.UP.FTS.B,
31.22%,
10/18/26
.
3,474
241
FW1872735.UP.FTS.B,
31.24%,
10/18/26
.
7,539
7,474
FW1874385.UP.FTS.B,
31.32%,
10/18/26
.
2,954
2,928
FW1873805.UP.FTS.B,
31.46%,
10/18/26
.
1,925
1,825
FW1874120.UP.FTS.B,
31.52%,
10/18/26
.
4,238
4,184
FW1872988.UP.FTS.B,
31.65%,
10/18/26
.
2,883
844
FW1865754.UP.FTS.B,
31.71%,
10/18/26
.
3,558
3,501
FW1872966.UP.FTS.B,
31.83%,
10/18/26
.
4,393
4,355
FW1872975.UP.FTS.B,
32.03%,
10/18/26
.
2,961
2,936
FW2008579.UP.FTS.B,
5.93%,
11/09/26
..
46,350
46,198
L2010047.UP.FTS.B,
7.23%,
11/09/26
....
9,290
9,238
L2005604.UP.FTS.B,
7.24%,
11/09/26
....
22,309
22,185
L2008431.UP.FTS.B,
7.41%,
11/09/26
....
24,132
23,998
L1947969.UP.FTS.B,
8.25%,
11/09/26
....
2,887
2,871
L2004931.UP.FTS.B,
8.92%,
11/09/26
....
17,714
17,618
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2005584.UP.FTS.B,
8.98%,
11/09/26
..
$
14,919
$
14,838
L2009940.UP.FTS.B,
9.06%,
11/09/26
....
31,706
31,535
L2009771.UP.FTS.B,
9.73%,
11/09/26
....
4,668
4,630
L2010120.UP.FTS.B,
9.74%,
11/09/26
....
18,673
18,573
L1982018.UP.FTS.B,
9.85%,
11/09/26
....
4,669
4,644
L2005005.UP.FTS.B,
9.85%,
11/09/26
....
18,638
18,484
L2007402.UP.FTS.B,
10.3%,
11/09/26
....
9,337
9,287
L2008329.UP.FTS.B,
10.3%,
11/09/26
....
5,607
5,578
L2008701.UP.FTS.B,
10.48%,
11/09/26
...
6,388
6,334
L2009188.UP.FTS.B,
10.68%,
11/09/26
...
24,689
24,481
L2008677.UP.FTS.B,
10.77%,
11/09/26
...
9,335
9,258
L2009665.UP.FTS.B,
10.88%,
11/09/26
...
7,951
7,887
L2008105.UP.FTS.B,
10.89%,
11/09/26
...
28,311
28,023
L2006261.UP.FTS.B,
10.9%,
11/09/26
....
5,145
5,103
L2008894.UP.FTS.B,
11.02%,
11/09/26
...
5,614
5,569
L2009417.UP.FTS.B,
11.04%,
11/09/26
...
4,576
4,537
L2004983.UP.FTS.B,
11.09%,
11/09/26
...
23,398
23,276
L2010138.UP.FTS.B,
11.14%,
11/09/26
...
18,717
18,566
L2009190.UP.FTS.B,
11.31%,
11/09/26
...
18,722
18,573
FW2004999.UP.FTS.B,
11.35%,
11/09/26
.
7,592
3,966
L2006518.UP.FTS.B,
11.38%,
11/09/26
...
3,194
3,167
L1977043.UP.FTS.B,
11.43%,
11/09/26
...
5,056
5,015
FW2006974.UP.FTS.B,
11.44%,
11/09/26
.
11,704
11,610
FW2007489.UP.FTS.B,
11.63%,
11/09/26
.
6,590
6,540
L2005122.UP.FTS.B,
12.01%,
11/09/26
...
7,685
7,624
L2008088.UP.FTS.B,
12.1%,
11/09/26
....
9,842
9,763
L2007707.UP.FTS.B,
12.19%,
11/09/26
...
13,997
13,884
L2005904.UP.FTS.B,
12.3%,
11/09/26
....
2,438
2,425
L2006131.UP.FTS.B,
12.37%,
11/09/26
...
19,224
19,071
L1991534.UP.FTS.B,
12.48%,
11/09/26
...
6,410
6,357
L2005066.UP.FTS.B,
12.51%,
11/09/26
...
14,070
13,957
FW2005867.UP.FTS.B,
12.86%,
11/09/26
.
1,877
1,862
L2007649.UP.FTS.B,
12.88%,
11/09/26
...
9,386
9,311
FW2009636.UP.FTS.B,
13.06%,
11/09/26
.
5,633
5,588
L2009536.UP.FTS.B,
13.07%,
11/09/26
...
5,633
5,588
FW2005799.UP.FTS.B,
13.39%,
11/09/26
.
23,483
23,297
L2008181.UP.FTS.B,
13.51%,
11/09/26
...
1,597
1,584
L2009639.UP.FTS.B,
13.58%,
11/09/26
...
14,094
13,983
L2006590.UP.FTS.B,
13.59%,
11/09/26
...
15,973
15,847
L2009960.UP.FTS.B,
13.6%,
11/09/26
....
2,819
2,797
FW2004957.UP.FTS.B,
13.66%,
11/09/26
.
2,349
2,331
L2006397.UP.FTS.B,
13.66%,
11/09/26
...
9,397
9,323
L2008524.UP.FTS.B,
14.03%,
11/09/26
...
18,741
18,591
L2008113.UP.FTS.B,
14.06%,
11/09/26
...
20,217
20,058
L2009683.UP.FTS.B,
14.08%,
11/09/26
...
5,623
5,578
L2009362.UP.FTS.B,
14.1%,
11/09/26
....
4,702
4,665
FW2007197.UP.FTS.B,
14.12%,
11/09/26
.
1,879
1,864
FW2007818.UP.FTS.B,
14.38%,
11/09/26
.
23,963
12,777
L2008435.UP.FTS.B,
14.4%,
11/09/26
....
7,062
7,009
L2009234.UP.FTS.B,
14.43%,
11/09/26
...
14,113
14,002
L2004932.UP.FTS.B,
14.45%,
11/09/26
...
11,221
11,133
L2008618.UP.FTS.B,
14.73%,
11/09/26
...
5,648
5,604
FW2006604.UP.FTS.B,
14.89%,
11/09/26
.
9,415
9,342
L2009287.UP.FTS.B,
14.91%,
11/09/26
...
5,461
5,418
L2006623.UP.FTS.B,
15.18%,
11/09/26
...
10,347
10,223
FW2009310.UP.FTS.B,
15.19%,
11/09/26
.
4,710
4,673
L2004642.UP.FTS.B,
15.31%,
11/09/26
...
9,781
9,702
L2009277.UP.FTS.B,
15.37%,
11/09/26
...
9,298
9,182
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
183
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2008691.UP.FTS.B,
15.38%,
11/09/26
...
$
4,711
$
4,675
L2008772.UP.FTS.B,
15.55%,
11/09/26
...
9,425
9,312
L2008089.UP.FTS.B,
15.65%,
11/09/26
...
4,713
4,657
L2007900.UP.FTS.B,
15.91%,
11/09/26
...
2,829
2,795
L2009243.UP.FTS.B,
15.94%,
11/09/26
...
9,430
9,318
FW2006940.UP.FTS.B,
15.96%,
11/09/26
.
3,300
3,253
FW1985810.UP.FTS.B,
16.01%,
11/09/26
.
9,431
9,319
FW2006699.UP.FTS.B,
16.1%,
11/09/26
..
9,433
9,360
L2005019.UP.FTS.B,
16.29%,
11/09/26
...
10,380
10,257
L2009814.UP.FTS.B,
16.29%,
11/09/26
...
9,435
9,363
L2006713.UP.FTS.B,
16.47%,
11/09/26
...
11,326
11,239
L2009219.UP.FTS.B,
16.5%,
11/09/26
....
23,517
23,236
FW2010280.UP.FTS.B,
16.52%,
11/09/26
.
15,102
14,923
L2009783.UP.FTS.B,
16.53%,
11/09/26
...
1,412
1,401
FW2010216.UP.FTS.B,
16.55%,
11/09/26
.
8,495
8,430
L2009879.UP.FTS.B,
16.56%,
11/09/26
...
9,406
9,333
L2008001.UP.FTS.B,
16.67%,
11/09/26
...
14,161
14,053
L2009464.UP.FTS.B,
16.7%,
11/09/26
....
18,973
10,522
L2006903.UP.FTS.B,
16.71%,
11/09/26
...
7,598
7,514
FW2009372.UP.FTS.B,
16.77%,
11/09/26
.
14,163
13,995
L2010173.UP.FTS.B,
16.8%,
11/09/26
....
7,554
7,465
L2009631.UP.FTS.B,
16.91%,
11/09/26
...
6,584
6,504
L2009095.UP.FTS.B,
17%,
11/09/26
.....
5,656
5,589
L2005313.UP.FTS.B,
17.04%,
11/09/26
...
47,229
46,670
L2008272.UP.FTS.B,
17.06%,
11/09/26
...
18,893
18,669
L2008918.UP.FTS.B,
17.09%,
11/09/26
...
6,991
6,908
FW2008938.UP.FTS.B,
17.12%,
11/09/26
.
7,390
7,299
L2005207.UP.FTS.B,
17.16%,
11/09/26
...
11,337
11,203
L2009326.UP.FTS.B,
17.33%,
11/09/26
...
2,314
2,290
L2007404.UP.FTS.B,
17.35%,
11/09/26
...
4,253
4,220
L2006868.UP.FTS.B,
17.53%,
11/09/26
...
15,491
15,319
L2004100.UP.FTS.B,
17.61%,
11/09/26
...
8,113
8,016
FW2008501.UP.FTS.B,
17.65%,
11/09/26
.
9,454
9,343
FW2003971.UP.FTS.B,
17.71%,
11/09/26
.
26,002
25,696
L2005978.UP.FTS.B,
17.84%,
11/09/26
...
3,699
3,654
L2006918.UP.FTS.B,
18.03%,
11/09/26
...
31,784
31,320
L2008937.UP.FTS.B,
18.22%,
11/09/26
...
5,677
5,611
L2008467.UP.FTS.B,
18.23%,
11/09/26
...
9,462
9,351
L2009319.UP.FTS.B,
18.37%,
11/09/26
...
1,609
1,590
FW2005538.UP.FTS.B,
18.4%,
11/09/26
..
5,710
5,631
L2009332.UP.FTS.B,
18.58%,
11/09/26
...
2,363
2,328
FW2005908.UP.FTS.B,
18.71%,
11/09/26
.
4,261
4,199
L2006524.UP.FTS.B,
18.79%,
11/09/26
...
4,736
4,667
FW2009511.UP.FTS.B,
18.82%,
11/09/26
.
5,682
5,600
L2007568.UP.FTS.B,
18.85%,
11/09/26
...
2,841
2,808
L2006460.UP.FTS.B,
18.86%,
11/09/26
...
3,315
3,276
FW2002309.UP.FTS.B,
18.9%,
11/09/26
..
2,084
2,059
L2006384.UP.FTS.B,
18.95%,
11/09/26
...
10,158
10,036
L2004618.UP.FTS.B,
18.96%,
11/09/26
...
5,683
5,601
L2007827.UP.FTS.B,
18.96%,
11/09/26
...
3,743
3,692
L2007966.UP.FTS.B,
18.98%,
11/09/26
...
1,895
1,867
L2007377.UP.FTS.B,
19.06%,
11/09/26
...
16,105
15,917
FW2009189.UP.FTS.B,
19.33%,
11/09/26
.
6,458
6,384
L2009659.UP.FTS.B,
19.37%,
11/09/26
...
12,538
12,399
L2009757.UP.FTS.B,
19.37%,
11/09/26
...
39,806
39,227
L2005634.UP.FTS.B,
19.48%,
11/09/26
...
4,756
4,691
L2006942.UP.FTS.B,
19.57%,
11/09/26
...
14,202
14,096
L2010300.UP.FTS.B,
19.58%,
11/09/26
...
948
934
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2003306.UP.FTS.B,
19.59%,
11/09/26
...
$
21,901
$
21,645
FW2008197.UP.FTS.B,
19.77%,
11/09/26
.
18,966
18,772
L2008422.UP.FTS.B,
19.84%,
11/09/26
...
5,216
5,141
FW2006347.UP.FTS.B,
19.88%,
11/09/26
.
6,206
6,139
L2005543.UP.FTS.B,
19.91%,
11/09/26
...
2,204
2,186
FW2006154.UP.FTS.B,
19.93%,
11/09/26
.
9,588
5,488
L1983361.UP.FTS.B,
20.01%,
11/09/26
...
8,063
7,947
L2006201.UP.FTS.B,
20.05%,
11/09/26
...
23,789
23,463
L2007782.UP.FTS.B,
20.17%,
11/09/26
...
11,386
11,221
L2007099.UP.FTS.B,
20.26%,
11/09/26
...
31,698
31,369
L2009922.UP.FTS.B,
20.26%,
11/09/26
...
3,701
3,647
L2008551.UP.FTS.B,
20.27%,
11/09/26
...
20,498
20,289
FW2008378.UP.FTS.B,
20.35%,
11/09/26
.
5,222
5,161
L2008219.UP.FTS.B,
20.5%,
11/09/26
....
1,911
1,881
L2009017.UP.FTS.B,
20.52%,
11/09/26
...
6,332
3,512
L2009434.UP.FTS.B,
20.62%,
11/09/26
...
1,899
1,871
L2006982.UP.FTS.B,
20.66%,
11/09/26
...
4,747
4,699
L2009697.UP.FTS.B,
20.69%,
11/09/26
...
4,748
4,679
FW2004995.UP.FTS.B,
21%,
11/09/26
...
5,509
5,430
FW2007433.UP.FTS.B,
21.02%,
11/09/26
.
7,125
7,052
FW2009325.UP.FTS.B,
21.04%,
11/09/26
.
6,080
5,992
FW2006513.UP.FTS.B,
21.09%,
11/09/26
.
1,903
1,876
FW2008076.UP.FTS.B,
21.13%,
11/09/26
.
2,375
2,341
L2005679.UP.FTS.B,
21.2%,
11/09/26
....
23,754
23,480
L2007766.UP.FTS.B,
21.29%,
11/09/26
...
3,328
3,280
L2009584.UP.FTS.B,
21.3%,
11/09/26
....
10,812
10,701
L2006375.UP.FTS.B,
21.38%,
11/09/26
...
3,802
3,763
L2008251.UP.FTS.B,
21.4%,
11/09/26
....
4,752
4,684
FW2004906.UP.FTS.B,
21.42%,
11/09/26
.
12,263
12,083
FW2006624.UP.FTS.B,
21.63%,
11/09/26
.
38,679
23,081
FW2008069.UP.FTS.B,
21.82%,
11/09/26
.
10,366
10,261
L2009406.UP.FTS.B,
21.82%,
11/09/26
...
4,374
4,330
L2009250.UP.FTS.B,
21.88%,
11/09/26
...
4,013
3,962
L2007361.UP.FTS.B,
21.89%,
11/09/26
...
4,102
4,050
L2008476.UP.FTS.B,
21.9%,
11/09/26
....
14,361
14,155
L2008942.UP.FTS.B,
21.92%,
11/09/26
...
3,139
3,107
L2004302.UP.FTS.B,
21.93%,
11/09/26
...
3,044
3,013
L2008042.UP.FTS.B,
22%,
11/09/26
.....
9,987
9,844
L2009653.UP.FTS.B,
22.08%,
11/09/26
...
947
934
L2005261.UP.FTS.B,
22.11%,
11/09/26
...
9,270
9,167
L2009041.UP.FTS.B,
22.15%,
11/09/26
...
9,207
9,118
FW2009886.UP.FTS.B,
22.16%,
11/09/26
.
3,806
3,751
L2009468.UP.FTS.B,
22.18%,
11/09/26
...
12,368
12,243
L2009034.UP.FTS.B,
22.22%,
11/09/26
...
6,700
6,635
FW2009198.UP.FTS.B,
22.28%,
11/09/26
.
952
942
L2005434.UP.FTS.B,
22.32%,
11/09/26
...
1,922
1,904
L2008589.UP.FTS.B,
22.34%,
11/09/26
...
3,123
3,090
L2008599.UP.FTS.B,
22.35%,
11/09/26
...
1,903
1,876
L2004674.UP.FTS.B,
22.44%,
11/09/26
...
8,287
8,193
FW1986141.UP.FTS.B,
22.72%,
11/09/26
.
5,694
5,622
FW2009282.UP.FTS.B,
22.76%,
11/09/26
.
5,728
5,650
L2007307.UP.FTS.B,
22.83%,
11/09/26
...
4,602
4,549
L2008298.UP.FTS.B,
22.83%,
11/09/26
...
3,223
3,190
L2008480.UP.FTS.B,
22.94%,
11/09/26
...
14,286
14,142
L2009714.UP.FTS.B,
22.99%,
11/09/26
...
1,714
1,690
L2009304.UP.FTS.B,
23.03%,
11/09/26
...
3,429
3,390
L2007937.UP.FTS.B,
23.09%,
11/09/26
...
14,288
14,084
L2007252.UP.FTS.B,
23.46%,
11/09/26
...
8,005
7,925
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
184
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2005478.UP.FTS.B,
23.62%,
11/09/26
...
$
17,158
$
16,986
L2004813.UP.FTS.B,
23.68%,
11/09/26
...
5,720
5,662
L2006933.UP.FTS.B,
23.7%,
11/09/26
....
4,767
4,719
L2009454.UP.FTS.B,
23.92%,
11/09/26
...
7,152
7,080
FW2007802.UP.FTS.B,
23.93%,
11/09/26
.
33,549
33,222
FW2009613.UP.FTS.B,
23.97%,
11/09/26
.
12,369
12,244
L2009462.UP.FTS.B,
24%,
11/09/26
.....
4,955
72
FW2009403.UP.FTS.B,
24.22%,
11/09/26
.
6,637
6,568
L2007300.UP.FTS.B,
24.33%,
11/09/26
...
9,541
9,445
L2007056.UP.FTS.B,
24.37%,
11/09/26
...
2,290
2,267
FW2009608.UP.FTS.B,
24.41%,
11/09/26
.
20,037
19,837
L2008806.UP.FTS.B,
24.53%,
11/09/26
...
7,002
6,921
L2009197.UP.FTS.B,
24.65%,
11/09/26
...
1,400
100
FW2008259.UP.FTS.B,
24.66%,
11/09/26
.
2,575
740
L2006560.UP.FTS.B,
24.67%,
11/09/26
...
6,880
6,799
L2008130.UP.FTS.B,
24.71%,
11/09/26
...
1,241
1,223
L2009496.UP.FTS.B,
24.73%,
11/09/26
...
1,288
15
L2008990.UP.FTS.B,
24.79%,
11/09/26
...
854
840
L2007154.UP.FTS.B,
24.83%,
11/09/26
...
3,998
3,953
L2009932.UP.FTS.B,
24.83%,
11/09/26
...
3,295
3,260
FW2005842.UP.FTS.B,
24.84%,
11/09/26
.
2,380
2,356
L2006617.UP.FTS.B,
24.88%,
11/09/26
...
1,290
1,275
L2008148.UP.FTS.B,
24.89%,
11/09/26
...
955
945
L2009896.UP.FTS.B,
24.89%,
11/09/26
...
2,864
2,836
L2010117.UP.FTS.B,
24.96%,
11/09/26
...
3,819
3,781
FW2006718.UP.FTS.B,
24.97%,
11/09/26
.
4,774
4,727
L2008954.UP.FTS.B,
24.98%,
11/09/26
...
2,865
2,836
FW2008266.UP.FTS.B,
25.01%,
11/09/26
.
5,729
5,672
L2008356.UP.FTS.B,
25.02%,
11/09/26
...
4,784
4,737
L2009707.UP.FTS.B,
25.02%,
11/09/26
...
75
74
L2009544.UP.FTS.B,
25.03%,
11/09/26
...
955
945
L2007001.UP.FTS.B,
25.04%,
11/09/26
...
1,432
1,412
L2008492.UP.FTS.B,
25.06%,
11/09/26
...
12,000
848
L2009387.UP.FTS.B,
25.09%,
11/09/26
...
4,610
4,565
L2009811.UP.FTS.B,
25.09%,
11/09/26
...
3,820
3,782
L2006100.UP.FTS.B,
25.1%,
11/09/26
....
3,531
3,480
L2009837.UP.FTS.B,
25.1%,
11/09/26
....
1,433
1,418
L2006519.UP.FTS.B,
25.11%,
11/09/26
...
2,101
2,080
L1992164.UP.FTS.B,
25.12%,
11/09/26
...
3,247
3,215
L2008646.UP.FTS.B,
25.12%,
11/09/26
...
1,241
1,229
L2008062.UP.FTS.B,
25.15%,
11/09/26
...
1,337
1,318
L2005357.UP.FTS.B,
25.2%,
11/09/26
....
4,775
4,728
L2008993.UP.FTS.B,
25.21%,
11/09/26
...
9,086
8,996
FW2006444.UP.FTS.B,
25.24%,
11/09/26
.
5,704
5,645
L2005412.UP.FTS.B,
25.25%,
11/09/26
...
2,388
2,364
L2009535.UP.FTS.B,
25.27%,
11/09/26
...
13,878
8,281
L2009909.UP.FTS.B,
25.28%,
11/09/26
...
3,916
3,877
L2009998.UP.FTS.B,
25.28%,
11/09/26
...
1,146
1,135
L2009664.UP.FTS.B,
25.29%,
11/09/26
...
1,393
1,377
L2009157.UP.FTS.B,
25.31%,
11/09/26
...
1,943
1,159
L2009595.UP.FTS.B,
25.31%,
11/09/26
...
4,107
4,049
L2006252.UP.FTS.B,
25.33%,
11/09/26
...
7,642
7,566
L2005350.UP.FTS.B,
25.34%,
11/09/26
...
775
761
L2007046.UP.FTS.B,
25.34%,
11/09/26
...
1,719
1,702
FW2009941.UP.FTS.B,
25.35%,
11/09/26
.
7,973
7,890
L2009460.UP.FTS.B,
25.35%,
11/09/26
...
2,961
2,932
L2005437.UP.FTS.B,
25.37%,
11/09/26
...
955
946
L2007369.UP.FTS.B,
25.4%,
11/09/26
....
1,624
1,608
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2009364.UP.FTS.B,
25.41%,
11/09/26
...
$
4,799
$
4,753
L2009802.UP.FTS.B,
25.42%,
11/09/26
...
7,268
7,196
L2007026.UP.FTS.B,
25.44%,
11/09/26
...
1,720
1,703
L2008862.UP.FTS.B,
25.44%,
11/09/26
...
3,248
3,216
L1976857.UP.FTS.B,
25.45%,
11/09/26
...
7,643
7,567
L2008185.UP.FTS.B,
25.45%,
11/09/26
...
3,822
3,784
L2008393.UP.FTS.B,
25.47%,
11/09/26
...
10,292
10,194
L2005075.UP.FTS.B,
25.48%,
11/09/26
...
2,200
2,171
L2009842.UP.FTS.B,
25.48%,
11/09/26
...
2,948
2,914
L2007493.UP.FTS.B,
25.49%,
11/09/26
...
4,691
4,642
FW1985087.UP.FTS.B,
25.55%,
11/09/26
.
390
383
FW2005949.UP.FTS.B,
25.57%,
11/09/26
.
8,600
8,515
FW2009730.UP.FTS.B,
25.57%,
11/09/26
.
14,333
14,191
L2004971.UP.FTS.B,
25.6%,
11/09/26
....
9,543
9,448
L2005577.UP.FTS.B,
25.63%,
11/09/26
...
5,734
5,677
L2007383.UP.FTS.B,
25.64%,
11/09/26
...
3,727
3,690
L2009541.UP.FTS.B,
25.69%,
11/09/26
...
4,014
3,974
FW2007372.UP.FTS.B,
25.7%,
11/09/26
..
3,823
3,785
L2009877.UP.FTS.B,
25.76%,
11/09/26
...
7,239
4,318
L2009064.UP.FTS.B,
25.78%,
11/09/26
...
7,118
7,044
FW2006387.UP.FTS.B,
25.89%,
11/09/26
.
3,356
3,323
L2004832.UP.FTS.B,
25.91%,
11/09/26
...
3,728
3,686
L2008285.UP.FTS.B,
25.92%,
11/09/26
...
5,353
5,300
FW2007502.UP.FTS.B,
25.93%,
11/09/26
.
9,580
9,486
L2006111.UP.FTS.B,
26.01%,
11/09/26
...
9,376
9,284
FW2009267.UP.FTS.B,
26.03%,
11/09/26
.
14,341
14,199
L2008078.UP.FTS.B,
26.04%,
11/09/26
...
4,780
4,733
L2007533.UP.FTS.B,
26.06%,
11/09/26
...
13,577
13,482
FW2007576.UP.FTS.B,
26.1%,
11/09/26
..
6,693
6,627
L2009167.UP.FTS.B,
26.14%,
11/09/26
...
9,562
9,467
L2005548.UP.FTS.B,
26.19%,
11/09/26
...
6,311
6,249
L2004842.UP.FTS.B,
26.33%,
11/09/26
...
6,567
6,506
FW1993820.UP.FTS.B,
26.38%,
11/09/26
.
5,739
5,682
FW2006658.UP.FTS.B,
26.38%,
11/09/26
.
5,739
5,658
FW2006782.UP.FTS.B,
26.4%,
11/09/26
..
19,130
18,941
FW1997017.UP.FTS.B,
26.42%,
11/09/26
.
3,348
3,315
L2008324.UP.FTS.B,
26.43%,
11/09/26
...
5,135
5,083
L2008169.UP.FTS.B,
26.64%,
11/09/26
...
17,700
17,525
L1999796.UP.FTS.B,
26.73%,
11/09/26
...
4,960
4,897
FW2005890.UP.FTS.B,
26.88%,
11/09/26
.
11,751
1,709
L2007687.UP.FTS.B,
26.89%,
11/09/26
...
18,460
18,283
FW2008915.UP.FTS.B,
27.18%,
11/09/26
.
1,436
1,422
FW2008080.UP.FTS.B,
27.3%,
11/09/26
..
1,436
1,422
FW2009450.UP.FTS.B,
27.39%,
11/09/26
.
8,179
8,095
FW2008423.UP.FTS.B,
27.57%,
11/09/26
.
6,520
6,449
FW2007457.UP.FTS.B,
27.58%,
11/09/26
.
2,874
2,845
FW2007274.UP.FTS.B,
27.62%,
11/09/26
.
2,374
2,350
L2009820.UP.FTS.B,
27.68%,
11/09/26
...
25,608
44
FW2009180.UP.FTS.B,
27.72%,
11/09/26
.
16,669
16,506
FW2007864.UP.FTS.B,
27.83%,
11/09/26
.
4,790
4,744
FW2006870.UP.FTS.B,
27.89%,
11/09/26
.
6,220
6,158
FW2005768.UP.FTS.B,
27.98%,
11/09/26
.
1,437
1,423
FW2008745.UP.FTS.B,
28.05%,
11/09/26
.
5,710
5,651
FW2009329.UP.FTS.B,
28.05%,
11/09/26
.
4,025
3,986
FW2009830.UP.FTS.B,
28.06%,
11/09/26
.
24,797
14,872
FW2008777.UP.FTS.B,
28.16%,
11/09/26
.
2,874
2,846
FW2005435.UP.FTS.B,
28.32%,
11/09/26
.
14,380
14,239
FW2006392.UP.FTS.B,
28.34%,
11/09/26
.
2,110
2,080
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
185
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2008944.UP.FTS.B,
28.36%,
11/09/26
.
$
4,122
$
4,082
FW2005859.UP.FTS.B,
28.42%,
11/09/26
.
12,464
12,342
FW2009975.UP.FTS.B,
28.52%,
11/09/26
.
1,027
1,012
FW2006618.UP.FTS.B,
28.54%,
11/09/26
.
4,436
4,385
FW2009953.UP.FTS.B,
28.59%,
11/09/26
.
4,315
4,273
FW2007255.UP.FTS.B,
28.65%,
11/09/26
.
5,754
5,698
FW2005558.UP.FTS.B,
28.68%,
11/09/26
.
44,967
26,894
FW2008764.UP.FTS.B,
28.69%,
11/09/26
.
15,633
4,394
FW2005567.UP.FTS.B,
28.73%,
11/09/26
.
3,600
253
FW2003484.UP.FTS.B,
28.92%,
11/09/26
.
3,200
15
FW2006396.UP.FTS.B,
28.95%,
11/09/26
.
959
950
FW2006430.UP.FTS.B,
28.97%,
11/09/26
.
2,000
141
FW2009473.UP.FTS.B,
29.09%,
11/09/26
.
5,757
5,701
FW2005194.UP.FTS.B,
29.14%,
11/09/26
.
5,789
5,735
FW2008122.UP.FTS.B,
29.26%,
11/09/26
.
1,023
1,005
FW2006599.UP.FTS.B,
29.3%,
11/09/26
..
5,278
5,227
FW2007779.UP.FTS.B,
29.31%,
11/09/26
.
4,790
4,743
FW2009478.UP.FTS.B,
29.32%,
11/09/26
.
1,338
1,325
FW2006016.UP.FTS.B,
29.35%,
11/09/26
.
2,879
2,851
FW2006841.UP.FTS.B,
29.42%,
11/09/26
.
4,031
3,992
FW2009538.UP.FTS.B,
29.42%,
11/09/26
.
2,976
2,947
FW2006288.UP.FTS.B,
29.51%,
11/09/26
.
25,438
25,191
FW2007207.UP.FTS.B,
29.52%,
11/09/26
.
1,452
869
FW2009687.UP.FTS.B,
29.61%,
11/09/26
.
5,754
5,698
FW2007888.UP.FTS.B,
29.72%,
11/09/26
.
2,933
1,759
FW2007420.UP.FTS.B,
29.73%,
11/09/26
.
1,824
1,807
FW2009107.UP.FTS.B,
29.81%,
11/09/26
.
3,475
3,442
FW2009768.UP.FTS.B,
29.9%,
11/09/26
..
4,802
4,755
FW2009466.UP.FTS.B,
29.96%,
11/09/26
.
1,623
1,607
FW2009414.UP.FTS.B,
30.01%,
11/09/26
.
11,718
11,604
FW2009044.UP.FTS.B,
30.03%,
11/09/26
.
2,910
2,885
FW2006189.UP.FTS.B,
30.04%,
11/09/26
.
3,245
3,206
FW2008625.UP.FTS.B,
30.09%,
11/09/26
.
3,448
1,002
FW2006892.UP.FTS.B,
30.2%,
11/09/26
..
7,746
7,676
FW2007246.UP.FTS.B,
30.23%,
11/09/26
.
1,800
126
FW2005344.UP.FTS.B,
30.24%,
11/09/26
.
3,895
3,851
FW2006342.UP.FTS.B,
30.28%,
11/09/26
.
3,002
1,798
FW2005550.UP.FTS.B,
30.37%,
11/09/26
.
1,467
426
FW2005675.UP.FTS.B,
30.41%,
11/09/26
.
1,799
1,777
FW2007884.UP.FTS.B,
30.51%,
11/09/26
.
2,883
2,855
FW2006157.UP.FTS.B,
30.64%,
11/09/26
.
2,211
2,189
FW2009773.UP.FTS.B,
30.66%,
11/09/26
.
7,846
4,710
FW2009221.UP.FTS.B,
30.79%,
11/09/26
.
12,904
12,782
FW2008923.UP.FTS.B,
30.84%,
11/09/26
.
2,788
2,761
FW2009706.UP.FTS.B,
30.84%,
11/09/26
.
1,538
1,523
FW2006156.UP.FTS.B,
30.87%,
11/09/26
.
1,442
1,428
FW2007936.UP.FTS.B,
30.89%,
11/09/26
.
3,942
3,904
FW2008743.UP.FTS.B,
30.92%,
11/09/26
.
1,865
1,120
FW2006562.UP.FTS.B,
30.93%,
11/09/26
.
2,487
2,463
FW2006359.UP.FTS.B,
30.96%,
11/09/26
.
1,910
1,887
FW2007277.UP.FTS.B,
30.98%,
11/09/26
.
1,058
1,047
FW1996714.UP.FTS.B,
30.99%,
11/09/26
.
962
952
FW2010168.UP.FTS.B,
30.99%,
11/09/26
.
10,961
10,856
FW1985263.UP.FTS.B,
31.02%,
11/09/26
.
1,538
1,524
FW2008799.UP.FTS.B,
31.02%,
11/09/26
.
1,154
1,143
FW2009848.UP.FTS.B,
31.08%,
11/09/26
.
19,473
19,309
FW2004964.UP.FTS.B,
31.1%,
11/09/26
..
11,731
11,619
FW2008487.UP.FTS.B,
31.14%,
11/09/26
.
2,793
(20)
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2005025.UP.FTS.B,
31.15%,
11/09/26
.
$
7,123
$
7,055
FW2004326.UP.FTS.B,
31.16%,
11/09/26
.
20,900
1,458
FW2006312.UP.FTS.B,
31.16%,
11/09/26
.
1,346
1,333
FW2007426.UP.FTS.B,
31.18%,
11/09/26
.
2,308
2,286
FW2008507.UP.FTS.B,
31.18%,
11/09/26
.
3,800
265
FW2008914.UP.FTS.B,
31.18%,
11/09/26
.
3,474
22
FW2009028.UP.FTS.B,
31.18%,
11/09/26
.
2,308
2,286
FW2009431.UP.FTS.B,
31.19%,
11/09/26
.
1,828
1,810
FW2007843.UP.FTS.B,
31.21%,
11/09/26
.
1,588
(19)
FW2004603.UP.FTS.B,
31.23%,
11/09/26
.
1,857
1,829
FW2008461.UP.FTS.B,
31.23%,
11/09/26
.
1,841
1,105
FW2008432.UP.FTS.B,
31.3%,
11/09/26
..
4,234
4,193
FW2008400.UP.FTS.B,
31.31%,
11/09/26
.
3,270
3,239
FW2005541.UP.FTS.B,
31.38%,
11/09/26
.
7,642
7,565
FW2007815.UP.FTS.B,
31.39%,
11/09/26
.
5,324
770
FW2005395.UP.FTS.B,
31.42%,
11/09/26
.
14,513
14,380
FW2009323.UP.FTS.B,
31.47%,
11/09/26
.
5,786
5,732
FW2008085.UP.FTS.B,
31.48%,
11/09/26
.
5,188
5,137
FW2009592.UP.FTS.B,
31.5%,
11/09/26
..
3,089
3,048
FW2007089.UP.FTS.B,
31.52%,
11/09/26
.
7,215
7,146
FW2009331.UP.FTS.B,
31.54%,
11/09/26
.
4,810
4,764
FW2010080.UP.FTS.B,
31.58%,
11/09/26
.
5,620
812
FW2010067.UP.FTS.B,
31.59%,
11/09/26
.
3,005
1,802
FW2008689.UP.FTS.B,
31.62%,
11/09/26
.
2,240
2,221
FW2006335.UP.FTS.B,
31.76%,
11/09/26
.
9,500
661
FW2009217.UP.FTS.B,
31.81%,
11/09/26
.
7,247
2,107
FW2008971.UP.FTS.B,
31.82%,
11/09/26
.
4,300
299
FW2008358.UP.FTS.B,
31.88%,
11/09/26
.
4,634
677
FW2009736.UP.FTS.B,
31.9%,
11/09/26
..
7,314
7,244
FW2009952.UP.FTS.B,
32.63%,
11/09/26
.
16,084
9,685
L2076380.UP.FTS.B,
7.8%,
11/19/26
.....
13,957
13,890
L2076555.UP.FTS.B,
9.38%,
11/19/26
....
6,532
6,501
FW2075880.UP.FTS.B,
9.48%,
11/19/26
..
13,532
13,468
FW2079511.UP.FTS.B,
9.94%,
11/19/26
..
6,157
5,799
L2077362.UP.FTS.B,
10.03%,
11/19/26
...
18,682
18,595
L2077278.UP.FTS.B,
10.24%,
11/19/26
...
2,003
1,993
L2079683.UP.FTS.B,
10.46%,
11/19/26
...
4,183
4,153
L2078817.UP.FTS.B,
10.96%,
11/19/26
...
43,037
42,740
L2077229.UP.FTS.B,
11.22%,
11/19/26
...
18,720
18,591
L2079790.UP.FTS.B,
11.54%,
11/19/26
...
7,960
7,906
L2078831.UP.FTS.B,
11.67%,
11/19/26
...
1,827
1,814
L2079809.UP.FTS.B,
11.68%,
11/19/26
...
6,557
6,512
L2075431.UP.FTS.B,
11.87%,
11/19/26
...
21,551
21,403
L2077619.UP.FTS.B,
12.17%,
11/19/26
...
1,034
1,028
FW2079744.UP.FTS.B,
12.58%,
11/19/26
.
5,159
5,124
L2077342.UP.FTS.B,
12.81%,
11/19/26
...
3,754
3,728
L2069545.UP.FTS.B,
12.88%,
11/19/26
...
5,631
5,593
L2078850.UP.FTS.B,
13.23%,
11/19/26
...
4,645
4,613
FW2076618.UP.FTS.B,
13.72%,
11/19/26
.
21,616
21,470
L2077586.UP.FTS.B,
13.74%,
11/19/26
...
5,169
5,134
L2079340.UP.FTS.B,
14.05%,
11/19/26
...
2,727
2,709
L2078387.UP.FTS.B,
14.26%,
11/19/26
...
2,634
2,616
L2080759.UP.FTS.B,
14.39%,
11/19/26
...
14,025
13,929
L2046091.UP.FTS.B,
14.56%,
11/19/26
...
1,928
1,818
FW2078825.UP.FTS.B,
14.72%,
11/19/26
.
19,767
19,635
L2079956.UP.FTS.B,
14.89%,
11/19/26
...
6,591
6,525
L2077934.UP.FTS.B,
15.05%,
11/19/26
...
7,063
7,016
L2079762.UP.FTS.B,
15.07%,
11/19/26
...
4,709
4,662
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
186
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2078364.UP.FTS.B,
15.16%,
11/19/26
...
$
5,652
$
5,595
L2080441.UP.FTS.B,
15.17%,
11/19/26
...
8,478
8,393
L2077585.UP.FTS.B,
15.3%,
11/19/26
....
7,250
6,838
L2080377.UP.FTS.B,
15.37%,
11/19/26
...
8,480
8,396
L2080290.UP.FTS.B,
15.38%,
11/19/26
...
6,124
6,064
L2078013.UP.FTS.B,
15.44%,
11/19/26
...
12,600
12,515
FW2080454.UP.FTS.B,
15.49%,
11/19/26
.
9,424
9,361
L2078145.UP.FTS.B,
15.54%,
11/19/26
...
2,356
2,341
FW2078232.UP.FTS.B,
15.58%,
11/19/26
.
24,505
24,343
L2076773.UP.FTS.B,
15.83%,
11/19/26
...
5,082
5,032
L2076923.UP.FTS.B,
15.84%,
11/19/26
...
16,501
16,392
L2080905.UP.FTS.B,
15.91%,
11/19/26
...
15,582
15,472
L2078858.UP.FTS.B,
16.1%,
11/19/26
....
16,954
16,781
FW2076907.UP.FTS.B,
16.3%,
11/19/26
..
6,605
6,540
L2076549.UP.FTS.B,
16.3%,
11/19/26
....
2,300
2,284
L2077446.UP.FTS.B,
16.31%,
11/19/26
...
6,133
6,073
L2080949.UP.FTS.B,
16.51%,
11/19/26
...
7,303
7,225
L2077345.UP.FTS.B,
16.52%,
11/19/26
...
2,548
2,532
L2078556.UP.FTS.B,
16.55%,
11/19/26
...
4,720
4,673
L2077624.UP.FTS.B,
16.62%,
11/19/26
...
42,481
42,062
L2078462.UP.FTS.B,
16.62%,
11/19/26
...
12,952
12,834
L2077136.UP.FTS.B,
16.73%,
11/19/26
...
9,442
9,349
FW2080998.UP.FTS.B,
16.87%,
11/19/26
.
944
935
FW2078513.UP.FTS.B,
16.88%,
11/19/26
.
16,999
16,832
L2079147.UP.FTS.B,
16.93%,
11/19/26
...
16,025
15,867
L2076368.UP.FTS.B,
16.96%,
11/19/26
...
14,167
14,028
L2080104.UP.FTS.B,
16.97%,
11/19/26
...
48,019
45,327
L2080899.UP.FTS.B,
17.22%,
11/19/26
...
5,669
5,632
FW2079044.UP.FTS.B,
17.32%,
11/19/26
.
1,434
1,352
L2073789.UP.FTS.B,
17.39%,
11/19/26
...
2,835
2,807
L2077275.UP.FTS.B,
17.44%,
11/19/26
...
6,144
6,083
L2078117.UP.FTS.B,
17.47%,
11/19/26
...
2,930
2,902
L2078785.UP.FTS.B,
17.53%,
11/19/26
...
9,453
9,338
L2079161.UP.FTS.B,
17.64%,
11/19/26
...
5,647
5,591
FW2077194.UP.FTS.B,
17.96%,
11/19/26
.
9,375
9,280
L2077305.UP.FTS.B,
17.97%,
11/19/26
...
17,178
16,197
L2079526.UP.FTS.B,
17.98%,
11/19/26
...
3,594
3,571
FW2077428.UP.FTS.B,
18.23%,
11/19/26
.
9,462
9,348
L2078320.UP.FTS.B,
18.26%,
11/19/26
...
4,011
3,780
FW2079512.UP.FTS.B,
18.41%,
11/19/26
.
4,732
4,686
FW2079593.UP.FTS.B,
18.48%,
11/19/26
.
1,893
1,875
L2077316.UP.FTS.B,
18.51%,
11/19/26
...
6,626
6,546
L2078541.UP.FTS.B,
18.53%,
11/19/26
...
3,313
3,273
L2078767.UP.FTS.B,
18.54%,
11/19/26
...
947
937
FW2080677.UP.FTS.B,
18.72%,
11/19/26
.
16,098
15,941
L2077746.UP.FTS.B,
18.8%,
11/19/26
....
5,304
5,252
L2080184.UP.FTS.B,
19.05%,
11/19/26
...
5,183
5,144
FW2078252.UP.FTS.B,
19.1%,
11/19/26
..
1,765
1,741
L2079089.UP.FTS.B,
19.11%,
11/19/26
...
5,669
5,613
L2077889.UP.FTS.B,
19.41%,
11/19/26
...
7,014
6,930
L2078380.UP.FTS.B,
19.51%,
11/19/26
...
15,167
15,020
L1966479.UP.FTS.B,
19.7%,
11/19/26
....
10,910
10,779
L2079136.UP.FTS.B,
19.7%,
11/19/26
....
15,646
15,533
FW2078808.UP.FTS.B,
19.87%,
11/19/26
.
23,711
23,426
L2077834.UP.FTS.B,
19.87%,
11/19/26
...
14,227
14,056
FW2076082.UP.FTS.B,
20.04%,
11/19/26
.
18,973
18,746
L2078706.UP.FTS.B,
20.11%,
11/19/26
...
7,590
7,499
L2080653.UP.FTS.B,
20.24%,
11/19/26
...
4,270
4,219
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2077864.UP.FTS.B,
20.33%,
11/19/26
...
$
20,879
$
20,629
L2080091.UP.FTS.B,
20.35%,
11/19/26
...
2,373
2,350
L2076559.UP.FTS.B,
20.51%,
11/19/26
...
10,229
10,101
L2075161.UP.FTS.B,
20.64%,
11/19/26
...
33,231
32,910
L2079005.UP.FTS.B,
20.71%,
11/19/26
...
3,324
3,300
L2076267.UP.FTS.B,
20.73%,
11/19/26
...
14,137
13,962
L2077767.UP.FTS.B,
20.73%,
11/19/26
...
9,496
9,428
FW2079399.UP.FTS.B,
20.8%,
11/19/26
..
17,072
16,948
FW2077930.UP.FTS.B,
20.81%,
11/19/26
.
9,497
9,429
L2076291.UP.FTS.B,
21.19%,
11/19/26
...
1,960
554
L2051484.UP.FTS.B,
21.26%,
11/19/26
...
1,901
1,878
L2078669.UP.FTS.B,
21.32%,
11/19/26
...
9,503
9,412
FW2080621.UP.FTS.B,
21.61%,
11/19/26
.
9,887
9,817
L2076499.UP.FTS.B,
21.61%,
11/19/26
...
1,668
254
L2077511.UP.FTS.B,
21.66%,
11/19/26
...
4,279
4,249
L2076870.UP.FTS.B,
21.71%,
11/19/26
...
5,677
5,621
L2076557.UP.FTS.B,
21.86%,
11/19/26
...
23,205
23,040
FW2080860.UP.FTS.B,
21.93%,
11/19/26
.
18,841
18,695
L2080901.UP.FTS.B,
21.94%,
11/19/26
...
10,272
10,199
FW2076510.UP.FTS.B,
22.17%,
11/19/26
.
38,056
37,603
L2080597.UP.FTS.B,
22.59%,
11/19/26
...
2,094
2,079
L2079528.UP.FTS.B,
22.6%,
11/19/26
....
10,717
186
L2078089.UP.FTS.B,
22.76%,
11/19/26
...
19,043
18,817
FW2080174.UP.FTS.B,
22.97%,
11/19/26
.
5,501
1,612
FW2080574.UP.FTS.B,
23.09%,
11/19/26
.
5,304
5,264
L2077002.UP.FTS.B,
23.1%,
11/19/26
....
9,512
9,444
FW2078029.UP.FTS.B,
23.15%,
11/19/26
.
4,477
4,446
FW2077484.UP.FTS.B,
23.29%,
11/19/26
.
14,292
14,191
L2078079.UP.FTS.B,
23.52%,
11/19/26
...
4,765
4,709
L2078431.UP.FTS.B,
23.7%,
11/19/26
....
2,861
2,841
L2078747.UP.FTS.B,
23.9%,
11/19/26
....
3,177
3,017
L2076582.UP.FTS.B,
24.04%,
11/19/26
...
19,758
19,559
L2078784.UP.FTS.B,
24.05%,
11/19/26
...
37,693
37,398
L2079001.UP.FTS.B,
24.08%,
11/19/26
...
15,100
14,986
L2077380.UP.FTS.B,
24.14%,
11/19/26
...
4,572
4,539
FW2076263.UP.FTS.B,
24.18%,
11/19/26
.
2,957
2,929
FW2047900.UP.FTS.B,
24.6%,
11/19/26
..
6,744
6,364
FW2079138.UP.FTS.B,
24.71%,
11/19/26
.
14,219
14,046
L2051923.UP.FTS.B,
24.73%,
11/19/26
...
1,801
1,784
L2077667.UP.FTS.B,
24.74%,
11/19/26
...
1,851
1,835
L2078023.UP.FTS.B,
24.89%,
11/19/26
...
5,418
5,200
L2077386.UP.FTS.B,
24.97%,
11/19/26
...
1,050
1,043
L2073677.UP.FTS.B,
24.99%,
11/19/26
...
14,416
14,321
L2077893.UP.FTS.B,
25.04%,
11/19/26
...
2,857
810
FW2078855.UP.FTS.B,
25.07%,
11/19/26
.
4,775
4,741
L2075615.UP.FTS.B,
25.09%,
11/19/26
...
2,292
2,276
L2078549.UP.FTS.B,
25.1%,
11/19/26
....
955
944
L2080336.UP.FTS.B,
25.14%,
11/19/26
...
1,910
1,897
FW2076803.UP.FTS.B,
25.16%,
11/19/26
.
40,891
6,224
FW2078837.UP.FTS.B,
25.18%,
11/19/26
.
2,483
2,454
L2077756.UP.FTS.B,
25.18%,
11/19/26
...
1,146
1,138
L2079113.UP.FTS.B,
25.21%,
11/19/26
...
1,738
495
L2080819.UP.FTS.B,
25.23%,
11/19/26
...
1,624
1,612
L2080926.UP.FTS.B,
25.26%,
11/19/26
...
3,567
3,387
L2080514.UP.FTS.B,
25.27%,
11/19/26
...
2,101
2,087
L2075929.UP.FTS.B,
25.33%,
11/19/26
...
2,575
2,545
L2055608.UP.FTS.B,
25.35%,
11/19/26
...
1,528
1,518
L2077452.UP.FTS.B,
25.36%,
11/19/26
...
2,427
712
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
187
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2077604.UP.FTS.B,
25.4%,
11/19/26
..
$
3,630
$
3,605
L2078857.UP.FTS.B,
25.44%,
11/19/26
...
1,624
1,613
L2078594.UP.FTS.B,
25.45%,
11/19/26
...
20,248
19,229
L2078465.UP.FTS.B,
25.48%,
11/19/26
...
4,690
4,658
L2079168.UP.FTS.B,
25.49%,
11/19/26
...
10,414
10,342
L2079636.UP.FTS.B,
25.5%,
11/19/26
....
2,389
2,372
L2080869.UP.FTS.B,
25.5%,
11/19/26
....
2,437
716
L2080879.UP.FTS.B,
25.51%,
11/19/26
...
4,013
3,985
FW2079109.UP.FTS.B,
25.53%,
11/19/26
.
5,733
5,693
FW2080532.UP.FTS.B,
25.55%,
11/19/26
.
19,456
18,393
FW2076607.UP.FTS.B,
25.56%,
11/19/26
.
19,111
18,978
FW2076520.UP.FTS.B,
25.58%,
11/19/26
.
1,911
1,898
L2080301.UP.FTS.B,
25.61%,
11/19/26
...
3,780
3,751
FW2078739.UP.FTS.B,
25.62%,
11/19/26
.
1,912
1,898
FW2077257.UP.FTS.B,
25.78%,
11/19/26
.
5,735
5,695
L2076428.UP.FTS.B,
25.82%,
11/19/26
...
8,030
7,974
L2076758.UP.FTS.B,
25.84%,
11/19/26
...
4,397
4,366
L2077747.UP.FTS.B,
25.84%,
11/19/26
...
6,882
6,834
FW2075811.UP.FTS.B,
25.85%,
11/19/26
.
1,051
1,039
L2076862.UP.FTS.B,
25.93%,
11/19/26
...
5,927
5,886
L2080433.UP.FTS.B,
25.97%,
11/19/26
...
2,294
2,267
L2075052.UP.FTS.B,
25.99%,
11/19/26
...
4,684
4,652
L2078570.UP.FTS.B,
26.02%,
11/19/26
...
14,341
14,241
FW2076721.UP.FTS.B,
26.13%,
11/19/26
.
7,171
7,122
FW2080275.UP.FTS.B,
26.15%,
11/19/26
.
3,347
3,323
FW2075118.UP.FTS.B,
26.16%,
11/19/26
.
2,307
2,190
L2076228.UP.FTS.B,
26.28%,
11/19/26
...
3,353
3,329
L2077372.UP.FTS.B,
26.33%,
11/19/26
...
16,400
1,159
FW2057769.UP.FTS.B,
26.4%,
11/19/26
..
5,739
5,699
FW2078057.UP.FTS.B,
26.47%,
11/19/26
.
2,047
1,946
FW2079458.UP.FTS.B,
26.51%,
11/19/26
.
4,360
4,313
L2080156.UP.FTS.B,
26.56%,
11/19/26
...
2,870
2,850
L2077173.UP.FTS.B,
26.59%,
11/19/26
...
11,382
11,297
FW2076617.UP.FTS.B,
26.67%,
11/19/26
.
27,938
27,745
L2076223.UP.FTS.B,
26.74%,
11/19/26
...
9,952
9,883
FW2079015.UP.FTS.B,
26.82%,
11/19/26
.
3,961
604
FW2074690.UP.FTS.B,
26.87%,
11/19/26
.
6,694
6,648
FW2070515.UP.FTS.B,
26.89%,
11/19/26
.
4,307
4,277
FW2077979.UP.FTS.B,
26.91%,
11/19/26
.
2,982
455
L2075827.UP.FTS.B,
27%,
11/19/26
.....
8,902
8,840
FW2079469.UP.FTS.B,
27.02%,
11/19/26
.
18,699
2,865
FW2073062.UP.FTS.B,
27.11%,
11/19/26
.
14,359
14,260
FW2076319.UP.FTS.B,
27.45%,
11/19/26
.
3,831
3,804
FW2076494.UP.FTS.B,
27.89%,
11/19/26
.
5,451
5,182
FW2077691.UP.FTS.B,
28%,
11/19/26
...
7,666
7,614
FW2079292.UP.FTS.B,
28.03%,
11/19/26
.
1,917
1,903
FW2078778.UP.FTS.B,
28.26%,
11/19/26
.
9,586
9,520
FW2076337.UP.FTS.B,
28.51%,
11/19/26
.
5,757
5,542
FW2077308.UP.FTS.B,
28.64%,
11/19/26
.
2,877
2,857
FW2079210.UP.FTS.B,
28.66%,
11/19/26
.
4,891
4,857
FW2079921.UP.FTS.B,
29.67%,
11/19/26
.
2,881
2,861
FW2072591.UP.FTS.B,
29.87%,
11/19/26
.
2,977
2,957
FW2076316.UP.FTS.B,
29.92%,
11/19/26
.
4,610
4,578
FW2077221.UP.FTS.B,
29.97%,
11/19/26
.
889
880
FW2077632.UP.FTS.B,
30.15%,
11/19/26
.
9,606
9,541
FW2077700.UP.FTS.B,
30.18%,
11/19/26
.
7,684
7,632
FW2078856.UP.FTS.B,
30.22%,
11/19/26
.
1,927
1,831
FW2078927.UP.FTS.B,
30.32%,
11/19/26
.
5,800
5,764
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2079282.UP.FTS.B,
30.4%,
11/19/26
..
$
1,156
$
1,149
FW2078425.UP.FTS.B,
30.41%,
11/19/26
.
3,710
3,683
FW2077874.UP.FTS.B,
30.42%,
11/19/26
.
6,918
6,872
FW2076199.UP.FTS.B,
30.58%,
11/19/26
.
1,634
1,623
FW2078643.UP.FTS.B,
30.58%,
11/19/26
.
1,600
1,576
FW2078839.UP.FTS.B,
30.61%,
11/19/26
.
961
955
FW2077363.UP.FTS.B,
30.77%,
11/19/26
.
4,710
4,678
FW2075779.UP.FTS.B,
30.81%,
11/19/26
.
1,803
1,780
FW2075839.UP.FTS.B,
30.81%,
11/19/26
.
4,928
1,473
FW2077993.UP.FTS.B,
30.84%,
11/19/26
.
2,686
2,667
FW2078804.UP.FTS.B,
30.99%,
11/19/26
.
1,489
26
FW2080135.UP.FTS.B,
31%,
11/19/26
...
1,600
111
FW2077335.UP.FTS.B,
31.09%,
11/19/26
.
7,000
486
FW2076598.UP.FTS.B,
31.11%,
11/19/26
.
962
955
FW2074352.UP.FTS.B,
31.13%,
11/19/26
.
1,058
1,051
FW2074156.UP.FTS.B,
31.17%,
11/19/26
.
1,400
97
FW2077684.UP.FTS.B,
31.19%,
11/19/26
.
2,121
2,107
FW2076910.UP.FTS.B,
31.43%,
11/19/26
.
20,297
20,160
FW2075287.UP.FTS.B,
31.46%,
11/19/26
.
8,328
8,247
FW2076836.UP.FTS.B,
31.47%,
11/19/26
.
7,311
7,262
FW2076209.UP.FTS.B,
31.48%,
11/19/26
.
3,080
3,059
FW2076661.UP.FTS.B,
31.77%,
11/19/26
.
2,300
159
FW2076436.UP.FTS.B,
31.81%,
11/19/26
.
2,200
388
FW2080557.UP.FTS.B,
31.96%,
11/19/26
.
10,490
10,129
L2198358.UP.FTS.B,
7.09%,
12/07/26
....
3,708
3,680
L2196810.UP.FTS.B,
7.42%,
12/07/26
....
5,665
5,633
L2195818.UP.FTS.B,
7.43%,
12/07/26
....
1,451
1,438
L2198501.UP.FTS.B,
8.94%,
12/07/26
....
3,784
3,763
L2195995.UP.FTS.B,
9.12%,
12/07/26
....
4,069
4,047
L2199695.UP.FTS.B,
9.66%,
12/07/26
....
5,682
5,651
L2199924.UP.FTS.B,
9.76%,
12/07/26
....
6,630
6,593
L2198890.UP.FTS.B,
10.21%,
12/07/26
...
1,422
1,415
FW2200013.UP.FTS.B,
10.26%,
12/07/26
.
13,270
13,158
L2197080.UP.FTS.B,
10.27%,
12/07/26
...
9,580
4,990
L2199199.UP.FTS.B,
10.28%,
12/07/26
...
9,100
9,023
L2198751.UP.FTS.B,
10.42%,
12/07/26
...
7,585
7,520
L2199240.UP.FTS.B,
10.7%,
12/07/26
....
7,777
7,734
L2198973.UP.FTS.B,
10.91%,
12/07/26
...
5,363
1,340
L2196100.UP.FTS.B,
10.99%,
12/07/26
...
1,518
1,510
FW2198003.UP.FTS.B,
11.06%,
12/07/26
.
8,540
8,468
L2193649.UP.FTS.B,
11.13%,
12/07/26
...
2,847
2,823
L2197856.UP.FTS.B,
11.23%,
12/07/26
...
5,125
5,082
L2197172.UP.FTS.B,
11.42%,
12/07/26
...
9,494
9,413
FW2195774.UP.FTS.B,
11.53%,
12/07/26
.
29,434
29,185
L2196592.UP.FTS.B,
11.62%,
12/07/26
...
5,128
5,084
L2197038.UP.FTS.B,
12.26%,
12/07/26
...
3,802
3,770
FW2199260.UP.FTS.B,
12.51%,
12/07/26
.
23,292
23,096
L2199654.UP.FTS.B,
12.66%,
12/07/26
...
5,705
5,657
L2200204.UP.FTS.B,
12.79%,
12/07/26
...
12,364
12,260
FW2198067.UP.FTS.B,
12.9%,
12/07/26
..
5,707
5,659
L2198086.UP.FTS.B,
13.28%,
12/07/26
...
9,517
9,437
L2200250.UP.FTS.B,
13.28%,
12/07/26
...
4,758
4,718
FW2197303.UP.FTS.B,
13.29%,
12/07/26
.
3,807
3,775
L2197068.UP.FTS.B,
13.32%,
12/07/26
...
9,517
9,437
L2197658.UP.FTS.B,
13.72%,
12/07/26
...
4,761
4,721
L2196150.UP.FTS.B,
13.9%,
12/07/26
....
11,810
11,711
FW2198165.UP.FTS.B,
14.07%,
12/07/26
.
1,334
1,322
FW2198593.UP.FTS.B,
14.12%,
12/07/26
.
5,716
5,668
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
188
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2197131.UP.FTS.B,
14.14%,
12/07/26
...
$
1,048
$
1,039
L2199997.UP.FTS.B,
14.15%,
12/07/26
...
3,525
3,495
L2196990.UP.FTS.B,
14.16%,
12/07/26
...
14,291
14,171
L2196542.UP.FTS.B,
14.21%,
12/07/26
...
6,670
6,613
L2196035.UP.FTS.B,
14.38%,
12/07/26
...
5,175
5,136
L2196588.UP.FTS.B,
14.6%,
12/07/26
....
10,037
9,949
L2196864.UP.FTS.B,
14.96%,
12/07/26
...
6,676
6,620
L2195767.UP.FTS.B,
15.08%,
12/07/26
...
2,861
2,837
L2198350.UP.FTS.B,
15.19%,
12/07/26
...
931
923
L2196739.UP.FTS.B,
15.37%,
12/07/26
...
14,217
14,098
L2197260.UP.FTS.B,
15.37%,
12/07/26
...
2,576
2,555
L2197143.UP.FTS.B,
15.39%,
12/07/26
...
9,542
9,422
L2197650.UP.FTS.B,
15.41%,
12/07/26
...
7,157
7,097
L2196913.UP.FTS.B,
15.42%,
12/07/26
...
47,722
47,321
FW2199121.UP.FTS.B,
15.58%,
12/07/26
.
17,216
17,084
L2200040.UP.FTS.B,
15.69%,
12/07/26
...
6,491
6,409
FW2198673.UP.FTS.B,
15.71%,
12/07/26
.
19,435
10,729
FW2200360.UP.FTS.B,
15.93%,
12/07/26
.
855
847
L2199860.UP.FTS.B,
16.1%,
12/07/26
....
14,325
14,144
L2197234.UP.FTS.B,
16.24%,
12/07/26
...
18,669
18,526
L2199879.UP.FTS.B,
16.31%,
12/07/26
...
14,248
14,128
FW2197646.UP.FTS.B,
16.34%,
12/07/26
.
9,181
9,098
L2198446.UP.FTS.B,
16.58%,
12/07/26
...
47,526
46,927
L2199625.UP.FTS.B,
16.62%,
12/07/26
...
9,556
9,436
L2199675.UP.FTS.B,
16.72%,
12/07/26
...
14,336
14,155
L2198880.UP.FTS.B,
16.74%,
12/07/26
...
3,758
3,709
L2200134.UP.FTS.B,
16.87%,
12/07/26
...
26,765
26,428
L2199844.UP.FTS.B,
16.94%,
12/07/26
...
9,560
9,480
L2198467.UP.FTS.B,
16.99%,
12/07/26
...
19,121
18,826
L2197174.UP.FTS.B,
17.08%,
12/07/26
...
14,340
14,160
L2195329.UP.FTS.B,
17.11%,
12/07/26
...
4,830
4,766
FW2197380.UP.FTS.B,
17.12%,
12/07/26
.
2,869
2,832
L2198345.UP.FTS.B,
17.18%,
12/07/26
...
22,758
22,472
L2195192.UP.FTS.B,
17.22%,
12/07/26
...
3,156
3,116
FW2199288.UP.FTS.B,
17.26%,
12/07/26
.
800
787
L2199351.UP.FTS.B,
17.39%,
12/07/26
...
1,913
1,889
L2198376.UP.FTS.B,
17.42%,
12/07/26
...
21,097
20,798
FW2200209.UP.FTS.B,
17.47%,
12/07/26
.
7,204
7,121
L2197047.UP.FTS.B,
17.47%,
12/07/26
...
11,479
11,334
L2195638.UP.FTS.B,
17.49%,
12/07/26
...
9,566
9,445
L2194879.UP.FTS.B,
17.51%,
12/07/26
...
18,559
18,325
L2192178.UP.FTS.B,
17.53%,
12/07/26
...
7,175
7,085
L2200243.UP.FTS.B,
17.54%,
12/07/26
...
957
945
FW2196193.UP.FTS.B,
17.59%,
12/07/26
.
23,918
23,617
L2199819.UP.FTS.B,
17.72%,
12/07/26
...
17,226
17,082
L2198685.UP.FTS.B,
17.77%,
12/07/26
...
2,804
2,768
L2196814.UP.FTS.B,
17.8%,
12/07/26
....
14,463
14,355
L2199007.UP.FTS.B,
17.87%,
12/07/26
...
5,742
5,654
L2200255.UP.FTS.B,
17.89%,
12/07/26
...
7,657
7,539
L2200130.UP.FTS.B,
18.09%,
12/07/26
...
21,060
20,884
L2199726.UP.FTS.B,
18.1%,
12/07/26
....
5,744
5,671
L2195959.UP.FTS.B,
18.12%,
12/07/26
...
11,187
11,046
L2199265.UP.FTS.B,
18.32%,
12/07/26
...
17,236
17,019
L2196210.UP.FTS.B,
18.42%,
12/07/26
...
15,715
15,491
L2200083.UP.FTS.B,
18.51%,
12/07/26
...
4,789
4,715
FW2198541.UP.FTS.B,
18.65%,
12/07/26
.
23,947
23,578
L2197391.UP.FTS.B,
18.77%,
12/07/26
...
2,330
2,299
L2196412.UP.FTS.B,
18.83%,
12/07/26
...
1,725
1,703
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2200053.UP.FTS.B,
18.87%,
12/07/26
...
$
9,581
$
9,434
L2199248.UP.FTS.B,
19.04%,
12/07/26
...
14,375
14,194
FW2199060.UP.FTS.B,
19.27%,
12/07/26
.
2,396
2,366
L2196875.UP.FTS.B,
19.48%,
12/07/26
...
47,940
47,201
L2200120.UP.FTS.B,
19.52%,
12/07/26
...
10,435
5,967
L2196672.UP.FTS.B,
19.58%,
12/07/26
...
8,151
8,025
L2196821.UP.FTS.B,
19.59%,
12/07/26
...
6,234
6,138
L2199663.UP.FTS.B,
19.69%,
12/07/26
...
5,754
5,665
L2169437.UP.FTS.B,
19.73%,
12/07/26
...
9,591
9,443
FW2198520.UP.FTS.B,
20.07%,
12/07/26
.
9,555
9,406
L2199129.UP.FTS.B,
20.12%,
12/07/26
...
2,111
2,084
L2198874.UP.FTS.B,
20.19%,
12/07/26
...
3,838
3,790
L2199523.UP.FTS.B,
20.46%,
12/07/26
...
5,279
5,216
FW2197884.UP.FTS.B,
20.55%,
12/07/26
.
8,708
8,588
L2196447.UP.FTS.B,
20.62%,
12/07/26
...
6,240
6,162
L2196710.UP.FTS.B,
20.66%,
12/07/26
...
17,281
17,076
L2189118.UP.FTS.B,
20.67%,
12/07/26
...
2,880
2,836
L2197655.UP.FTS.B,
20.75%,
12/07/26
...
4,801
4,744
FW2197381.UP.FTS.B,
20.8%,
12/07/26
..
2,977
2,942
L2197561.UP.FTS.B,
20.81%,
12/07/26
...
4,801
4,744
L2197644.UP.FTS.B,
20.86%,
12/07/26
...
2,027
2,011
FW2199633.UP.FTS.B,
20.94%,
12/07/26
.
7,925
7,829
L2196726.UP.FTS.B,
21.07%,
12/07/26
...
22,731
12,648
L2187878.UP.FTS.B,
21.23%,
12/07/26
...
48,428
48,070
L2198396.UP.FTS.B,
21.35%,
12/07/26
...
4,227
4,162
L2197425.UP.FTS.B,
21.37%,
12/07/26
...
9,692
9,558
L2196680.UP.FTS.B,
21.47%,
12/07/26
...
5,904
5,811
L2195675.UP.FTS.B,
21.55%,
12/07/26
...
1,538
1,519
L2197631.UP.FTS.B,
21.55%,
12/07/26
...
4,324
4,258
FW2197941.UP.FTS.B,
21.75%,
12/07/26
.
8,657
8,556
L2196825.UP.FTS.B,
21.8%,
12/07/26
....
6,252
6,179
FW2198237.UP.FTS.B,
21.87%,
12/07/26
.
4,807
4,749
L2197009.UP.FTS.B,
22.01%,
12/07/26
...
5,770
5,701
L2196775.UP.FTS.B,
22.04%,
12/07/26
...
961
947
FW2199825.UP.FTS.B,
22.12%,
12/07/26
.
1,923
1,900
L2196730.UP.FTS.B,
22.21%,
12/07/26
...
16,829
16,629
L2191085.UP.FTS.B,
22.33%,
12/07/26
...
3,204
3,168
L2199874.UP.FTS.B,
22.34%,
12/07/26
...
7,887
7,793
L2192706.UP.FTS.B,
22.47%,
12/07/26
...
9,619
9,505
L2197670.UP.FTS.B,
22.54%,
12/07/26
...
3,734
3,685
L2196119.UP.FTS.B,
22.75%,
12/07/26
...
4,811
4,754
L2185222.UP.FTS.B,
23.13%,
12/07/26
...
5,563
5,488
FW2200346.UP.FTS.B,
23.2%,
12/07/26
..
9,627
9,512
FW2196522.UP.FTS.B,
23.26%,
12/07/26
.
5,776
5,707
FW2199888.UP.FTS.B,
23.27%,
12/07/26
.
13,043
12,881
L2195799.UP.FTS.B,
23.37%,
12/07/26
...
12,006
11,849
FW2199894.UP.FTS.B,
23.38%,
12/07/26
.
7,703
7,611
L2198106.UP.FTS.B,
23.42%,
12/07/26
...
6,225
6,149
L2197006.UP.FTS.B,
23.53%,
12/07/26
...
4,816
4,759
FW2192438.UP.FTS.B,
23.66%,
12/07/26
.
11,557
11,420
L2197891.UP.FTS.B,
23.8%,
12/07/26
....
3,853
3,807
FW2197402.UP.FTS.B,
23.87%,
12/07/26
.
2,890
2,856
L2199092.UP.FTS.B,
23.9%,
12/07/26
....
5,688
5,609
L2198616.UP.FTS.B,
24.08%,
12/07/26
...
2,886
2,852
FW2195703.UP.FTS.B,
24.25%,
12/07/26
.
1,735
1,714
L2197316.UP.FTS.B,
24.32%,
12/07/26
...
3,273
474
FW2196745.UP.FTS.B,
24.4%,
12/07/26
..
5,758
5,687
FW2200190.UP.FTS.B,
24.4%,
12/07/26
..
2,410
2,381
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
189
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2196637.UP.FTS.B,
24.42%,
12/07/26
...
$
14,361
$
14,190
L2200210.UP.FTS.B,
24.56%,
12/07/26
...
19,280
18,983
FW2197268.UP.FTS.B,
24.6%,
12/07/26
..
4,917
1,409
L2196899.UP.FTS.B,
24.65%,
12/07/26
...
5,592
5,525
L2197090.UP.FTS.B,
24.84%,
12/07/26
...
5,020
4,953
L2197075.UP.FTS.B,
24.86%,
12/07/26
...
1,061
1,048
L2200145.UP.FTS.B,
24.91%,
12/07/26
...
964
953
L2197252.UP.FTS.B,
24.97%,
12/07/26
...
1,091
650
L2198059.UP.FTS.B,
24.97%,
12/07/26
...
4,807
4,749
L2199777.UP.FTS.B,
24.98%,
12/07/26
...
964
953
L2196714.UP.FTS.B,
25.02%,
12/07/26
...
3,087
3,050
L2196707.UP.FTS.B,
25.05%,
12/07/26
...
1,350
1,329
L2199551.UP.FTS.B,
25.05%,
12/07/26
...
2,025
1,994
L2199694.UP.FTS.B,
25.13%,
12/07/26
...
1,924
1,901
L2199866.UP.FTS.B,
25.14%,
12/07/26
...
1,157
1,144
L2195524.UP.FTS.B,
25.15%,
12/07/26
...
973
579
L2197866.UP.FTS.B,
25.16%,
12/07/26
...
5,025
4,959
L2198339.UP.FTS.B,
25.17%,
12/07/26
...
1,100
10
L2195912.UP.FTS.B,
25.21%,
12/07/26
...
7,910
7,816
L2198146.UP.FTS.B,
25.25%,
12/07/26
...
2,026
2,002
L2196219.UP.FTS.B,
25.27%,
12/07/26
...
9,068
8,960
L2198919.UP.FTS.B,
25.27%,
12/07/26
...
2,038
2,015
L2198546.UP.FTS.B,
25.32%,
12/07/26
...
1,447
1,430
L2199586.UP.FTS.B,
25.33%,
12/07/26
...
1,072
1,061
L2199876.UP.FTS.B,
25.33%,
12/07/26
...
1,252
1,236
L2195664.UP.FTS.B,
25.4%,
12/07/26
....
953
937
L2199661.UP.FTS.B,
25.4%,
12/07/26
....
2,701
2,669
FW2200017.UP.FTS.B,
25.41%,
12/07/26
.
4,825
4,768
L2196685.UP.FTS.B,
25.41%,
12/07/26
...
5,973
5,902
L2198050.UP.FTS.B,
25.44%,
12/07/26
...
5,018
4,958
L2197183.UP.FTS.B,
25.46%,
12/07/26
...
1,640
1,621
L2197585.UP.FTS.B,
25.47%,
12/07/26
...
4,535
4,481
L2197844.UP.FTS.B,
25.47%,
12/07/26
...
5,337
5,276
L2198441.UP.FTS.B,
25.48%,
12/07/26
...
13,684
13,529
FW2195112.UP.FTS.B,
25.52%,
12/07/26
.
29,761
4,305
L2197791.UP.FTS.B,
25.56%,
12/07/26
...
3,388
3,349
FW2197368.UP.FTS.B,
25.58%,
12/07/26
.
9,650
9,534
L2199767.UP.FTS.B,
25.65%,
12/07/26
...
5,599
5,524
L2199814.UP.FTS.B,
25.68%,
12/07/26
...
5,790
5,721
FW2199624.UP.FTS.B,
25.75%,
12/07/26
.
9,658
9,545
L2193871.UP.FTS.B,
25.78%,
12/07/26
...
6,680
6,598
FW2199090.UP.FTS.B,
25.89%,
12/07/26
.
22,674
22,387
FW2199793.UP.FTS.B,
25.9%,
12/07/26
..
7,722
7,630
FW2199514.UP.FTS.B,
25.91%,
12/07/26
.
2,440
2,414
FW2199186.UP.FTS.B,
25.95%,
12/07/26
.
2,413
2,384
L2197375.UP.FTS.B,
26%,
12/07/26
.....
4,897
716
FW2196103.UP.FTS.B,
26.48%,
12/07/26
.
1,519
1,492
L2199268.UP.FTS.B,
26.54%,
12/07/26
...
4,773
2,841
FW2199829.UP.FTS.B,
26.64%,
12/07/26
.
1,739
1,712
L2200350.UP.FTS.B,
26.67%,
12/07/26
...
5,603
5,536
FW2195369.UP.FTS.B,
26.79%,
12/07/26
.
2,737
2,708
FW2199332.UP.FTS.B,
26.82%,
12/07/26
.
2,372
2,342
FW2195998.UP.FTS.B,
26.86%,
12/07/26
.
17,005
16,802
FW2199138.UP.FTS.B,
27.08%,
12/07/26
.
10,400
18
FW2195253.UP.FTS.B,
27.11%,
12/07/26
.
6,378
6,302
FW2197957.UP.FTS.B,
27.11%,
12/07/26
.
4,800
694
FW2195958.UP.FTS.B,
27.48%,
12/07/26
.
3,190
3,152
FW2196284.UP.FTS.B,
27.56%,
12/07/26
.
4,874
2,904
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2200008.UP.FTS.B,
27.66%,
12/07/26
.
$
6,768
$
6,687
FW2198590.UP.FTS.B,
27.74%,
12/07/26
.
4,874
4,820
FW2199488.UP.FTS.B,
27.83%,
12/07/26
.
2,124
2,089
FW2198564.UP.FTS.B,
27.96%,
12/07/26
.
4,332
4,279
FW2195741.UP.FTS.B,
28.07%,
12/07/26
.
1,451
1,434
FW2198474.UP.FTS.B,
28.07%,
12/07/26
.
3,373
3,331
FW2200076.UP.FTS.B,
28.24%,
12/07/26
.
48,370
47,792
FW2198854.UP.FTS.B,
28.37%,
12/07/26
.
3,871
3,824
FW2200069.UP.FTS.B,
28.54%,
12/07/26
.
4,193
4,136
FW2199877.UP.FTS.B,
28.59%,
12/07/26
.
1,800
(5)
FW2200188.UP.FTS.B,
28.66%,
12/07/26
.
5,323
5,259
FW2198253.UP.FTS.B,
28.7%,
12/07/26
..
4,964
713
FW2126302.UP.FTS.B,
28.84%,
12/07/26
.
16,452
16,255
FW2197063.UP.FTS.B,
28.96%,
12/07/26
.
14,785
4,141
FW2197454.UP.FTS.B,
28.97%,
12/07/26
.
5,914
1,703
FW2198203.UP.FTS.B,
29.09%,
12/07/26
.
3,566
3,519
FW2198176.UP.FTS.B,
29.22%,
12/07/26
.
3,876
3,830
FW2196176.UP.FTS.B,
29.32%,
12/07/26
.
7,166
7,080
FW2196392.UP.FTS.B,
29.38%,
12/07/26
.
3,943
1,136
FW2186971.UP.FTS.B,
29.39%,
12/07/26
.
24,645
7,102
FW2195399.UP.FTS.B,
29.81%,
12/07/26
.
2,228
2,202
FW2197220.UP.FTS.B,
29.81%,
12/07/26
.
2,174
2,141
FW2198433.UP.FTS.B,
29.92%,
12/07/26
.
3,020
2,986
FW2198601.UP.FTS.B,
30.14%,
12/07/26
.
4,845
4,787
FW2199215.UP.FTS.B,
30.27%,
12/07/26
.
3,101
3,064
FW2197953.UP.FTS.B,
30.28%,
12/07/26
.
2,946
2,916
FW2195876.UP.FTS.B,
30.32%,
12/07/26
.
1,447
1,429
FW2198672.UP.FTS.B,
30.42%,
12/07/26
.
5,816
5,746
FW2196744.UP.FTS.B,
30.45%,
12/07/26
.
48,466
47,886
FW2198825.UP.FTS.B,
30.6%,
12/07/26
..
3,393
3,352
FW2199302.UP.FTS.B,
30.61%,
12/07/26
.
1,093
316
FW2199283.UP.FTS.B,
30.62%,
12/07/26
.
1,352
1,336
FW2197604.UP.FTS.B,
30.64%,
12/07/26
.
3,199
3,161
FW2198515.UP.FTS.B,
30.77%,
12/07/26
.
3,035
2,997
FW2199905.UP.FTS.B,
30.79%,
12/07/26
.
1,746
1,725
FW2199805.UP.FTS.B,
30.82%,
12/07/26
.
8,304
8,211
FW2198089.UP.FTS.B,
30.83%,
12/07/26
.
2,036
2,012
FW2197372.UP.FTS.B,
30.88%,
12/07/26
.
11,606
11,469
FW2195869.UP.FTS.B,
30.92%,
12/07/26
.
1,800
(21)
FW2195222.UP.FTS.B,
30.96%,
12/07/26
.
1,358
1,341
FW2197663.UP.FTS.B,
30.97%,
12/07/26
.
2,592
2,560
FW2197025.UP.FTS.B,
30.99%,
12/07/26
.
1,580
456
FW2197058.UP.FTS.B,
31%,
12/07/26
...
4,365
4,313
FW2198098.UP.FTS.B,
31%,
12/07/26
...
5,722
5,653
FW2196279.UP.FTS.B,
31.01%,
12/07/26
.
3,394
3,354
FW2198232.UP.FTS.B,
31.01%,
12/07/26
.
970
958
FW2170273.UP.FTS.B,
31.03%,
12/07/26
.
17,768
17,554
FW2195779.UP.FTS.B,
31.03%,
12/07/26
.
9,874
2,851
FW2199111.UP.FTS.B,
31.05%,
12/07/26
.
1,740
1,719
FW2198957.UP.FTS.B,
31.08%,
12/07/26
.
10,211
10,107
FW2197407.UP.FTS.B,
31.19%,
12/07/26
.
5,723
5,654
FW2196852.UP.FTS.B,
31.22%,
12/07/26
.
8,057
7,956
FW2198390.UP.FTS.B,
31.22%,
12/07/26
.
2,620
2,588
FW2200225.UP.FTS.B,
31.22%,
12/07/26
.
1,067
1,054
FW2195178.UP.FTS.B,
31.28%,
12/07/26
.
2,300
(29)
FW2197133.UP.FTS.B,
31.45%,
12/07/26
.
4,269
4,218
FW2198997.UP.FTS.B,
31.55%,
12/07/26
.
6,482
6,403
FW2195565.UP.FTS.B,
31.6%,
12/07/26
..
2,426
2,397
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
190
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2200182.UP.FTS.B,
31.77%,
12/07/26
.
$
3,105
$
3,068
FW2197374.UP.FTS.B,
32.11%,
12/07/26
.
3,676
524
FW2198397.UP.FTS.B,
32.23%,
12/07/26
.
5,631
5,563
FW2199153.UP.FTS.B,
32.29%,
12/07/26
.
4,660
4,604
FW2199632.UP.FTS.B,
32.42%,
12/07/26
.
4,758
4,701
L2201511.UP.FTS.B,
5.03%,
12/08/26
....
11,583
11,547
L2201100.UP.FTS.B,
5.82%,
12/08/26
....
9,419
9,394
FW2201687.UP.FTS.B,
5.98%,
12/08/26
..
4,425
4,411
L2203382.UP.FTS.B,
6.5%,
12/08/26
....
9,428
9,401
L2203741.UP.FTS.B,
7.33%,
12/08/26
....
18,879
18,781
L2206413.UP.FTS.B,
7.44%,
12/08/26
....
8,497
8,453
L2201126.UP.FTS.B,
7.87%,
12/08/26
....
20,783
20,677
L2201251.UP.FTS.B,
8.29%,
12/08/26
....
18,905
18,809
L2200918.UP.FTS.B,
8.74%,
12/08/26
....
4,067
4,047
L2203118.UP.FTS.B,
8.78%,
12/08/26
....
7,567
7,529
L2202846.UP.FTS.B,
8.79%,
12/08/26
....
17,048
16,970
L2201288.UP.FTS.B,
9.13%,
12/08/26
....
3,123
3,107
L2206512.UP.FTS.B,
9.18%,
12/08/26
....
11,357
11,300
FW2202642.UP.FTS.B,
9.22%,
12/08/26
..
10,412
10,359
L2203530.UP.FTS.B,
9.65%,
12/08/26
....
19,649
19,544
L2202936.UP.FTS.B,
9.68%,
12/08/26
....
6,426
6,388
L2197657.UP.FTS.B,
9.74%,
12/08/26
....
4,073
4,052
L2202879.UP.FTS.B,
9.75%,
12/08/26
....
16,286
16,202
FW2202215.UP.FTS.B,
9.76%,
12/08/26
..
42,425
42,090
L2202140.UP.FTS.B,
10.05%,
12/08/26
...
3,595
3,567
L2202043.UP.FTS.B,
10.08%,
12/08/26
...
18,952
18,858
L2206922.UP.FTS.B,
10.23%,
12/08/26
...
19,102
18,973
L2205692.UP.FTS.B,
10.33%,
12/08/26
...
15,641
15,564
L2205203.UP.FTS.B,
10.54%,
12/08/26
...
18,771
18,622
L2203887.UP.FTS.B,
10.82%,
12/08/26
...
7,589
7,530
L2202359.UP.FTS.B,
10.96%,
12/08/26
...
3,416
3,399
L2205258.UP.FTS.B,
10.97%,
12/08/26
...
3,605
3,577
L2206221.UP.FTS.B,
10.99%,
12/08/26
...
2,846
2,824
L2202707.UP.FTS.B,
11.01%,
12/08/26
...
9,488
9,415
L2200873.UP.FTS.B,
11.09%,
12/08/26
...
8,540
8,474
L2205661.UP.FTS.B,
11.13%,
12/08/26
...
11,388
11,299
L2201926.UP.FTS.B,
11.2%,
12/08/26
....
1,898
1,889
FW2202691.UP.FTS.B,
11.21%,
12/08/26
.
2,847
2,833
L2204932.UP.FTS.B,
11.21%,
12/08/26
...
15,185
15,068
L2201522.UP.FTS.B,
11.25%,
12/08/26
...
18,982
18,835
L2200600.UP.FTS.B,
11.71%,
12/08/26
...
4,749
4,712
L2200051.UP.FTS.B,
11.78%,
12/08/26
...
10,068
9,990
L2204302.UP.FTS.B,
11.78%,
12/08/26
...
2,842
2,820
L2205067.UP.FTS.B,
11.79%,
12/08/26
...
11,398
11,310
FW2201210.UP.FTS.B,
12.48%,
12/08/26
.
1,901
1,887
L2201401.UP.FTS.B,
12.51%,
12/08/26
...
6,655
6,604
L2201130.UP.FTS.B,
12.56%,
12/08/26
...
5,202
5,162
FW2201048.UP.FTS.B,
12.71%,
12/08/26
.
11,295
11,206
L2201163.UP.FTS.B,
13.03%,
12/08/26
...
1,903
1,888
L2202815.UP.FTS.B,
13.03%,
12/08/26
...
3,559
3,532
L2201683.UP.FTS.B,
13.05%,
12/08/26
...
2,854
2,832
L2199959.UP.FTS.B,
13.07%,
12/08/26
...
1,047
1,039
L2201222.UP.FTS.B,
13.13%,
12/08/26
...
47,574
47,211
L2203910.UP.FTS.B,
13.18%,
12/08/26
...
10,943
10,859
L2202867.UP.FTS.B,
13.27%,
12/08/26
...
4,650
4,613
FW2206272.UP.FTS.B,
13.35%,
12/08/26
.
2,855
2,833
L2206693.UP.FTS.B,
13.43%,
12/08/26
...
3,335
3,312
L2206744.UP.FTS.B,
13.51%,
12/08/26
...
28,558
28,341
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2202159.UP.FTS.B,
13.54%,
12/08/26
...
$
23,799
$
23,686
L2206366.UP.FTS.B,
13.56%,
12/08/26
...
2,856
2,834
FW2201344.UP.FTS.B,
13.64%,
12/08/26
.
6,081
6,034
L2202534.UP.FTS.B,
13.68%,
12/08/26
...
14,282
14,174
L2203497.UP.FTS.B,
13.78%,
12/08/26
...
5,714
5,670
L2203117.UP.FTS.B,
13.79%,
12/08/26
...
8,190
8,127
FW2199867.UP.FTS.B,
13.82%,
12/08/26
.
14,285
14,177
L2203856.UP.FTS.B,
13.82%,
12/08/26
...
28,569
28,353
L2206839.UP.FTS.B,
13.97%,
12/08/26
...
9,525
9,453
L2200884.UP.FTS.B,
13.99%,
12/08/26
...
7,049
6,995
L2204734.UP.FTS.B,
13.99%,
12/08/26
...
3,527
3,502
L2189789.UP.FTS.B,
14.09%,
12/08/26
...
4,763
4,727
L2200815.UP.FTS.B,
14.17%,
12/08/26
...
2,377
2,359
L2200912.UP.FTS.B,
14.17%,
12/08/26
...
4,251
574
L2201701.UP.FTS.B,
14.19%,
12/08/26
...
6,669
6,619
L2200543.UP.FTS.B,
14.23%,
12/08/26
...
4,764
4,728
FW2206534.UP.FTS.B,
14.38%,
12/08/26
.
3,048
3,025
FW2201365.UP.FTS.B,
14.41%,
12/08/26
.
13,819
13,714
L2200506.UP.FTS.B,
14.67%,
12/08/26
...
5,720
5,677
L2205095.UP.FTS.B,
14.72%,
12/08/26
...
4,767
4,731
L2205970.UP.FTS.B,
14.78%,
12/08/26
...
2,570
2,550
L2203172.UP.FTS.B,
14.86%,
12/08/26
...
9,536
9,464
FW2203636.UP.FTS.B,
14.99%,
12/08/26
.
4,769
4,733
L2206074.UP.FTS.B,
15.01%,
12/08/26
...
6,757
3,527
L2206751.UP.FTS.B,
15.19%,
12/08/26
...
12,972
12,869
L2201429.UP.FTS.B,
15.27%,
12/08/26
...
11,412
11,326
L2201509.UP.FTS.B,
15.29%,
12/08/26
...
7,092
7,037
L2206457.UP.FTS.B,
15.3%,
12/08/26
....
47,704
47,347
L2203888.UP.FTS.B,
15.35%,
12/08/26
...
2,862
2,841
L2202868.UP.FTS.B,
15.36%,
12/08/26
...
23,854
23,675
L2196904.UP.FTS.B,
15.38%,
12/08/26
...
5,725
5,682
L2202058.UP.FTS.B,
15.4%,
12/08/26
....
2,863
2,829
L2201650.UP.FTS.B,
15.45%,
12/08/26
...
3,817
3,788
L2205821.UP.FTS.B,
15.65%,
12/08/26
...
7,682
7,631
L2205307.UP.FTS.B,
15.66%,
12/08/26
...
1,915
1,895
L2206519.UP.FTS.B,
15.66%,
12/08/26
...
4,773
4,717
L2193881.UP.FTS.B,
15.75%,
12/08/26
...
4,200
4,152
L2206087.UP.FTS.B,
15.8%,
12/08/26
....
1,932
1,009
L2200487.UP.FTS.B,
15.87%,
12/08/26
...
6,110
6,065
L2205432.UP.FTS.B,
15.94%,
12/08/26
...
23,741
23,466
L2205206.UP.FTS.B,
15.97%,
12/08/26
...
28,644
28,312
L2206448.UP.FTS.B,
16%,
12/08/26
.....
10,026
9,952
L2205436.UP.FTS.B,
16.02%,
12/08/26
...
26,938
26,624
L2195672.UP.FTS.B,
16.2%,
12/08/26
....
12,226
12,084
L2205672.UP.FTS.B,
16.4%,
12/08/26
....
23,917
23,757
L2202008.UP.FTS.B,
16.41%,
12/08/26
...
48,122
47,625
L2201272.UP.FTS.B,
16.5%,
12/08/26
....
4,761
4,725
L2202378.UP.FTS.B,
16.57%,
12/08/26
...
5,771
5,733
L2202979.UP.FTS.B,
16.63%,
12/08/26
...
1,911
1,897
L2203269.UP.FTS.B,
16.66%,
12/08/26
...
4,300
4,251
L2203656.UP.FTS.B,
16.77%,
12/08/26
...
2,676
2,656
L2205448.UP.FTS.B,
16.81%,
12/08/26
...
10,036
9,893
L2205367.UP.FTS.B,
16.83%,
12/08/26
...
2,963
2,929
L2205691.UP.FTS.B,
16.93%,
12/08/26
...
45,887
45,358
L2206760.UP.FTS.B,
17.01%,
12/08/26
...
43,307
42,860
FW2204874.UP.FTS.B,
17.03%,
12/08/26
.
9,561
9,424
L2200739.UP.FTS.B,
17.06%,
12/08/26
...
2,582
2,552
L2200406.UP.FTS.B,
17.28%,
12/08/26
...
4,208
4,160
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
191
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2202818.UP.FTS.B,
17.33%,
12/08/26
...
$
8,776
$
8,711
L2201984.UP.FTS.B,
17.35%,
12/08/26
...
6,224
6,158
L2204275.UP.FTS.B,
17.48%,
12/08/26
...
5,343
5,281
L2203876.UP.FTS.B,
17.53%,
12/08/26
...
21,046
20,805
L2202653.UP.FTS.B,
17.59%,
12/08/26
...
11,863
11,727
L2203323.UP.FTS.B,
17.63%,
12/08/26
...
4,305
4,274
L2200549.UP.FTS.B,
17.67%,
12/08/26
...
3,827
3,783
L2200437.UP.FTS.B,
17.72%,
12/08/26
...
2,392
2,358
L2202435.UP.FTS.B,
17.87%,
12/08/26
...
4,785
4,717
L2206114.UP.FTS.B,
17.92%,
12/08/26
...
1,914
1,892
L2201870.UP.FTS.B,
17.98%,
12/08/26
...
2,871
2,831
L2201314.UP.FTS.B,
18.04%,
12/08/26
...
4,786
4,731
L2203381.UP.FTS.B,
18.04%,
12/08/26
...
10,051
9,936
L2202238.UP.FTS.B,
18.11%,
12/08/26
...
12,445
12,302
L2198222.UP.FTS.B,
18.15%,
12/08/26
...
3,446
3,397
L2200530.UP.FTS.B,
18.44%,
12/08/26
...
8,619
8,520
L2201131.UP.FTS.B,
18.64%,
12/08/26
...
4,789
4,721
FW2200514.UP.FTS.B,
18.68%,
12/08/26
.
9,499
9,361
L2202092.UP.FTS.B,
18.74%,
12/08/26
...
4,790
4,722
L2202316.UP.FTS.B,
18.78%,
12/08/26
...
2,395
2,361
FW2201324.UP.FTS.B,
18.84%,
12/08/26
.
4,704
4,635
L2203614.UP.FTS.B,
18.9%,
12/08/26
....
14,361
14,157
FW2203630.UP.FTS.B,
18.91%,
12/08/26
.
9,611
9,487
L2201012.UP.FTS.B,
19.03%,
12/08/26
...
47,915
47,236
L2202526.UP.FTS.B,
19.03%,
12/08/26
...
9,583
9,514
FW2204149.UP.FTS.B,
19.13%,
12/08/26
.
4,792
4,724
FW2201703.UP.FTS.B,
19.15%,
12/08/26
.
3,343
3,295
L2171699.UP.FTS.B,
19.26%,
12/08/26
...
9,585
9,484
FW2201480.UP.FTS.B,
19.28%,
12/08/26
.
6,710
6,634
L2198227.UP.FTS.B,
19.34%,
12/08/26
...
1,961
527
FW2206855.UP.FTS.B,
19.38%,
12/08/26
.
4,793
4,759
L2204746.UP.FTS.B,
19.38%,
12/08/26
...
7,661
7,552
L2204805.UP.FTS.B,
19.42%,
12/08/26
...
10,258
10,113
L2200609.UP.FTS.B,
19.43%,
12/08/26
...
4,794
4,726
L2194438.UP.FTS.B,
19.48%,
12/08/26
...
5,796
5,722
L2203054.UP.FTS.B,
19.55%,
12/08/26
...
14,522
14,404
L2205829.UP.FTS.B,
19.56%,
12/08/26
...
9,589
9,453
L2203740.UP.FTS.B,
19.62%,
12/08/26
...
2,299
2,267
L2204012.UP.FTS.B,
19.62%,
12/08/26
...
2,999
2,969
L2200814.UP.FTS.B,
19.64%,
12/08/26
...
5,274
5,200
L2201833.UP.FTS.B,
19.78%,
12/08/26
...
4,793
4,725
L2200534.UP.FTS.B,
19.8%,
12/08/26
....
7,673
7,565
L2203346.UP.FTS.B,
19.86%,
12/08/26
...
6,139
6,069
L2203970.UP.FTS.B,
19.89%,
12/08/26
...
2,110
2,080
L2203336.UP.FTS.B,
19.94%,
12/08/26
...
3,152
3,107
FW2185665.UP.FTS.B,
20.17%,
12/08/26
.
14,363
14,199
L2200446.UP.FTS.B,
20.19%,
12/08/26
...
1,056
1,041
FW2202220.UP.FTS.B,
20.45%,
12/08/26
.
19,197
18,995
L2198053.UP.FTS.B,
20.47%,
12/08/26
...
3,685
2,109
L2200528.UP.FTS.B,
20.47%,
12/08/26
...
3,360
3,312
L2201790.UP.FTS.B,
20.6%,
12/08/26
....
2,688
2,650
L2204504.UP.FTS.B,
20.62%,
12/08/26
...
9,518
9,412
L2200990.UP.FTS.B,
20.63%,
12/08/26
...
16,320
16,090
L2203837.UP.FTS.B,
20.89%,
12/08/26
...
11,523
11,402
FW2201941.UP.FTS.B,
20.91%,
12/08/26
.
3,841
3,798
FW2201844.UP.FTS.B,
20.97%,
12/08/26
.
3,755
3,688
L2202584.UP.FTS.B,
20.98%,
12/08/26
...
7,201
7,100
FW2205623.UP.FTS.B,
21.01%,
12/08/26
.
10,565
10,454
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2202018.UP.FTS.B,
21.02%,
12/08/26
...
$
7,000
$
175
FW2203254.UP.FTS.B,
21.1%,
12/08/26
..
6,724
6,629
L2203340.UP.FTS.B,
21.11%,
12/08/26
...
4,785
4,734
L2202911.UP.FTS.B,
21.13%,
12/08/26
...
6,230
6,142
L2197968.UP.FTS.B,
21.14%,
12/08/26
...
1,333
1,312
L2203189.UP.FTS.B,
21.23%,
12/08/26
...
17,292
17,049
L2201499.UP.FTS.B,
21.34%,
12/08/26
...
10,568
10,458
L2203266.UP.FTS.B,
21.37%,
12/08/26
...
4,804
4,754
L2203685.UP.FTS.B,
21.52%,
12/08/26
...
3,363
3,328
L2207000.UP.FTS.B,
21.53%,
12/08/26
...
19,219
18,949
L2206634.UP.FTS.B,
21.58%,
12/08/26
...
2,114
2,092
L2200366.UP.FTS.B,
21.62%,
12/08/26
...
14,532
14,389
FW2206963.UP.FTS.B,
21.68%,
12/08/26
.
4,788
4,720
FW2201720.UP.FTS.B,
21.75%,
12/08/26
.
9,612
9,477
L2206461.UP.FTS.B,
21.8%,
12/08/26
....
3,364
3,329
FW2200309.UP.FTS.B,
21.86%,
12/08/26
.
3,461
3,425
FW2204080.UP.FTS.B,
22.08%,
12/08/26
.
7,115
7,041
L2200826.UP.FTS.B,
22.16%,
12/08/26
...
9,616
9,516
FW2205781.UP.FTS.B,
22.27%,
12/08/26
.
48,086
47,584
L2204816.UP.FTS.B,
22.27%,
12/08/26
...
9,325
9,187
FW2202543.UP.FTS.B,
22.46%,
12/08/26
.
1,828
1,802
L2201398.UP.FTS.B,
22.49%,
12/08/26
...
10,522
10,372
L2200624.UP.FTS.B,
22.5%,
12/08/26
....
1,924
1,897
L2169853.UP.FTS.B,
22.52%,
12/08/26
...
4,810
4,760
L2201593.UP.FTS.B,
22.58%,
12/08/26
...
9,620
9,520
L2200637.UP.FTS.B,
22.65%,
12/08/26
...
12,507
12,377
L2204327.UP.FTS.B,
22.78%,
12/08/26
...
7,505
7,427
L2201738.UP.FTS.B,
22.82%,
12/08/26
...
14,565
14,425
L2205746.UP.FTS.B,
22.84%,
12/08/26
...
1,263
751
FW2202576.UP.FTS.B,
22.89%,
12/08/26
.
7,699
7,619
L2201275.UP.FTS.B,
22.92%,
12/08/26
...
3,850
3,810
L2203293.UP.FTS.B,
22.93%,
12/08/26
...
1,636
1,613
FW2203667.UP.FTS.B,
23.01%,
12/08/26
.
14,437
14,287
L2204605.UP.FTS.B,
23.02%,
12/08/26
...
4,812
4,762
L2202315.UP.FTS.B,
23.12%,
12/08/26
...
3,781
3,740
FW2201818.UP.FTS.B,
23.31%,
12/08/26
.
2,888
2,858
FW2156213.UP.FTS.B,
23.43%,
12/08/26
.
9,108
4,809
L2203120.UP.FTS.B,
23.47%,
12/08/26
...
4,815
4,765
FW2206671.UP.FTS.B,
23.5%,
12/08/26
..
2,407
2,382
L2201018.UP.FTS.B,
23.52%,
12/08/26
...
4,815
4,765
L2204624.UP.FTS.B,
23.54%,
12/08/26
...
19,260
19,060
L2203557.UP.FTS.B,
23.55%,
12/08/26
...
1,641
1,620
L2204118.UP.FTS.B,
23.56%,
12/08/26
...
16,446
16,283
L2200929.UP.FTS.B,
23.61%,
12/08/26
...
2,408
2,384
L2205223.UP.FTS.B,
23.62%,
12/08/26
...
4,815
4,765
L2200784.UP.FTS.B,
23.63%,
12/08/26
...
9,624
9,524
L2197277.UP.FTS.B,
23.68%,
12/08/26
...
6,260
6,195
L2200754.UP.FTS.B,
23.68%,
12/08/26
...
24,304
14,460
L2197979.UP.FTS.B,
23.7%,
12/08/26
....
3,853
3,813
L2205882.UP.FTS.B,
23.83%,
12/08/26
...
2,890
2,858
FW2205649.UP.FTS.B,
23.84%,
12/08/26
.
3,597
3,563
L2204897.UP.FTS.B,
23.87%,
12/08/26
...
25,708
25,417
FW2200085.UP.FTS.B,
23.88%,
12/08/26
.
2,890
2,860
L2200698.UP.FTS.B,
24.01%,
12/08/26
...
4,326
2,579
L2169986.UP.FTS.B,
24.03%,
12/08/26
...
14,452
14,302
FW2202739.UP.FTS.B,
24.09%,
12/08/26
.
2,312
2,288
L2205789.UP.FTS.B,
24.11%,
12/08/26
...
5,781
5,721
L2205964.UP.FTS.B,
24.11%,
12/08/26
...
2,698
2,670
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
192
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2200886.UP.FTS.B,
24.19%,
12/08/26
...
$
4,842
$
4,782
FW2200940.UP.FTS.B,
24.2%,
12/08/26
..
1,240
1,222
L2189439.UP.FTS.B,
24.32%,
12/08/26
...
1,000
14
L2203589.UP.FTS.B,
24.35%,
12/08/26
...
4,764
4,713
L2201603.UP.FTS.B,
24.38%,
12/08/26
...
4,819
4,769
L2199578.UP.FTS.B,
24.39%,
12/08/26
...
1,542
1,521
FW2201153.UP.FTS.B,
24.4%,
12/08/26
..
13,959
13,824
FW2206202.UP.FTS.B,
24.48%,
12/08/26
.
1,928
1,908
L2204440.UP.FTS.B,
24.51%,
12/08/26
...
1,157
1,145
L2203333.UP.FTS.B,
24.53%,
12/08/26
...
2,699
2,671
L2200752.UP.FTS.B,
24.63%,
12/08/26
...
964
954
FW2202542.UP.FTS.B,
24.64%,
12/08/26
.
4,313
4,267
FW2200668.UP.FTS.B,
24.66%,
12/08/26
.
12,051
11,927
L2201796.UP.FTS.B,
24.67%,
12/08/26
...
9,641
9,541
L2205328.UP.FTS.B,
24.68%,
12/08/26
...
1,917
1,897
FW2198942.UP.FTS.B,
24.77%,
12/08/26
.
18,518
18,354
L2200911.UP.FTS.B,
24.82%,
12/08/26
...
4,821
4,771
L2205953.UP.FTS.B,
24.83%,
12/08/26
...
3,069
3,014
FW2200947.UP.FTS.B,
24.84%,
12/08/26
.
4,339
4,294
L2201876.UP.FTS.B,
24.84%,
12/08/26
...
1,061
1,050
L2205138.UP.FTS.B,
24.86%,
12/08/26
...
3,333
3,293
L2204697.UP.FTS.B,
24.89%,
12/08/26
...
19,286
19,087
L2198801.UP.FTS.B,
24.91%,
12/08/26
...
2,893
2,863
L2200418.UP.FTS.B,
24.91%,
12/08/26
...
7,420
7,317
L2201388.UP.FTS.B,
24.93%,
12/08/26
...
2,893
2,863
L2201658.UP.FTS.B,
24.93%,
12/08/26
...
1,254
1,236
L2200868.UP.FTS.B,
24.96%,
12/08/26
...
2,700
2,672
L2205812.UP.FTS.B,
24.97%,
12/08/26
...
3,413
3,383
L2206379.UP.FTS.B,
24.97%,
12/08/26
...
6,544
6,469
L2201301.UP.FTS.B,
25.03%,
12/08/26
...
4,237
4,193
L2203217.UP.FTS.B,
25.16%,
12/08/26
...
1,061
1,050
L2202329.UP.FTS.B,
25.17%,
12/08/26
...
2,400
2,373
L2198735.UP.FTS.B,
25.18%,
12/08/26
...
6,795
6,722
L2203757.UP.FTS.B,
25.2%,
12/08/26
....
2,758
2,724
L2205039.UP.FTS.B,
25.2%,
12/08/26
....
3,280
3,235
L2202422.UP.FTS.B,
25.21%,
12/08/26
...
3,452
3,412
L2204008.UP.FTS.B,
25.21%,
12/08/26
...
4,823
4,773
L2201763.UP.FTS.B,
25.22%,
12/08/26
...
6,656
6,582
L2203014.UP.FTS.B,
25.25%,
12/08/26
...
4,823
4,773
L2203187.UP.FTS.B,
25.25%,
12/08/26
...
3,762
3,723
L2203545.UP.FTS.B,
25.27%,
12/08/26
...
1,737
1,719
L2201547.UP.FTS.B,
25.28%,
12/08/26
...
2,412
2,387
L2205603.UP.FTS.B,
25.29%,
12/08/26
...
6,851
6,766
L2204236.UP.FTS.B,
25.3%,
12/08/26
....
6,020
5,955
L2205000.UP.FTS.B,
25.31%,
12/08/26
...
973
964
L2203159.UP.FTS.B,
25.32%,
12/08/26
...
14,655
14,443
L2202447.UP.FTS.B,
25.34%,
12/08/26
...
1,944
1,926
L2201267.UP.FTS.B,
25.35%,
12/08/26
...
1,167
1,156
L2207019.UP.FTS.B,
25.36%,
12/08/26
...
1,636
1,615
L2203473.UP.FTS.B,
25.37%,
12/08/26
...
2,136
2,110
L2206798.UP.FTS.B,
25.37%,
12/08/26
...
3,279
3,246
L2204385.UP.FTS.B,
25.38%,
12/08/26
...
1,158
1,146
L2204638.UP.FTS.B,
25.39%,
12/08/26
...
3,088
3,056
L2201233.UP.FTS.B,
25.4%,
12/08/26
....
3,203
1,843
L2203646.UP.FTS.B,
25.41%,
12/08/26
...
1,061
1,047
L2204272.UP.FTS.B,
25.42%,
12/08/26
...
1,575
1,556
L2201606.UP.FTS.B,
25.43%,
12/08/26
...
2,605
2,578
L2200684.UP.FTS.B,
25.47%,
12/08/26
...
4,535
4,488
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2201578.UP.FTS.B,
25.47%,
12/08/26
...
$
19,900
$
11,870
L2200539.UP.FTS.B,
25.48%,
12/08/26
...
5,210
5,157
L2202562.UP.FTS.B,
25.48%,
12/08/26
...
1,178
703
L2200596.UP.FTS.B,
25.49%,
12/08/26
...
10,035
9,931
L2174737.UP.FTS.B,
25.5%,
12/08/26
....
7,044
6,971
L2202382.UP.FTS.B,
25.5%,
12/08/26
....
1,737
1,719
L2205914.UP.FTS.B,
25.51%,
12/08/26
...
2,075
1,239
FW2201944.UP.FTS.B,
25.52%,
12/08/26
.
4,825
4,775
L2204469.UP.FTS.B,
25.55%,
12/08/26
...
2,991
2,960
L2202660.UP.FTS.B,
25.56%,
12/08/26
...
5,850
5,799
FW2205017.UP.FTS.B,
25.6%,
12/08/26
..
8,685
8,595
L2204916.UP.FTS.B,
25.63%,
12/08/26
...
9,650
9,551
L2206619.UP.FTS.B,
25.63%,
12/08/26
...
7,238
7,163
FW2202148.UP.FTS.B,
25.64%,
12/08/26
.
2,413
2,388
L2201626.UP.FTS.B,
25.65%,
12/08/26
...
6,176
6,113
L2201840.UP.FTS.B,
25.74%,
12/08/26
...
31,409
31,076
FW2203682.UP.FTS.B,
25.75%,
12/08/26
.
1,544
1,528
L2204844.UP.FTS.B,
25.75%,
12/08/26
...
2,992
2,961
FW2202207.UP.FTS.B,
25.82%,
12/08/26
.
10,319
10,213
L2206615.UP.FTS.B,
25.87%,
12/08/26
...
13,803
13,661
FW2201315.UP.FTS.B,
25.9%,
12/08/26
..
9,653
9,553
FW2202260.UP.FTS.B,
25.91%,
12/08/26
.
1,159
1,147
L2200110.UP.FTS.B,
25.93%,
12/08/26
...
7,240
7,165
L2205529.UP.FTS.B,
25.96%,
12/08/26
...
6,757
6,688
FW2202648.UP.FTS.B,
26.05%,
12/08/26
.
7,719
7,639
L2200501.UP.FTS.B,
26.06%,
12/08/26
...
2,124
2,102
L2206165.UP.FTS.B,
26.19%,
12/08/26
...
7,401
7,322
FW2205423.UP.FTS.B,
26.22%,
12/08/26
.
5,793
5,734
L2201160.UP.FTS.B,
26.24%,
12/08/26
...
4,574
4,521
L2205662.UP.FTS.B,
26.26%,
12/08/26
...
7,821
7,741
FW2201661.UP.FTS.B,
26.35%,
12/08/26
.
14,485
14,337
FW2204619.UP.FTS.B,
26.36%,
12/08/26
.
2,414
2,389
L2200760.UP.FTS.B,
26.49%,
12/08/26
...
10,624
10,515
L2203179.UP.FTS.B,
26.54%,
12/08/26
...
3,863
3,824
L2206371.UP.FTS.B,
26.6%,
12/08/26
....
2,435
2,412
FW2201816.UP.FTS.B,
26.65%,
12/08/26
.
4,415
4,368
L2200890.UP.FTS.B,
26.66%,
12/08/26
...
4,400
1,274
L2203211.UP.FTS.B,
26.69%,
12/08/26
...
10,393
10,293
FW2205293.UP.FTS.B,
26.73%,
12/08/26
.
3,864
3,825
FW2202426.UP.FTS.B,
26.77%,
12/08/26
.
8,000
39
FW2205905.UP.FTS.B,
26.96%,
12/08/26
.
1,933
1,913
FW2205802.UP.FTS.B,
27%,
12/08/26
...
3,412
3,380
FW2205878.UP.FTS.B,
27.25%,
12/08/26
.
1,933
1,913
FW2206543.UP.FTS.B,
27.33%,
12/08/26
.
29,241
17,456
FW2200840.UP.FTS.B,
27.39%,
12/08/26
.
8,120
8,037
FW2205131.UP.FTS.B,
27.64%,
12/08/26
.
2,997
2,967
FW2202637.UP.FTS.B,
27.67%,
12/08/26
.
10,636
10,527
FW2204516.UP.FTS.B,
27.99%,
12/08/26
.
4,800
4,749
FW2205704.UP.FTS.B,
28.05%,
12/08/26
.
4,836
4,787
FW2206331.UP.FTS.B,
28.09%,
12/08/26
.
10,156
10,053
FW2206860.UP.FTS.B,
28.2%,
12/08/26
..
3,386
3,351
FW2205370.UP.FTS.B,
28.26%,
12/08/26
.
6,381
3,815
FW2200263.UP.FTS.B,
28.29%,
12/08/26
.
17,414
17,237
FW2202084.UP.FTS.B,
28.33%,
12/08/26
.
1,451
1,436
FW2205052.UP.FTS.B,
28.38%,
12/08/26
.
24,421
3,533
FW2206080.UP.FTS.B,
28.43%,
12/08/26
.
3,387
3,352
FW2205751.UP.FTS.B,
28.59%,
12/08/26
.
1,161
1,149
FW2199479.UP.FTS.B,
28.66%,
12/08/26
.
14,517
14,369
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
193
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2196644.UP.FTS.B,
28.68%,
12/08/26
.
$
3,401
$
3,369
FW2202805.UP.FTS.B,
28.71%,
12/08/26
.
2,517
2,491
FW2202420.UP.FTS.B,
28.72%,
12/08/26
.
4,705
4,650
FW2203128.UP.FTS.B,
28.72%,
12/08/26
.
965
955
FW2203565.UP.FTS.B,
28.72%,
12/08/26
.
8,200
2,530
FW2201764.UP.FTS.B,
28.73%,
12/08/26
.
8,781
5,248
FW2200463.UP.FTS.B,
28.91%,
12/08/26
.
1,162
1,150
FW2206016.UP.FTS.B,
28.92%,
12/08/26
.
4,066
4,024
FW2205304.UP.FTS.B,
28.97%,
12/08/26
.
1,971
571
FW2201925.UP.FTS.B,
29.05%,
12/08/26
.
1,273
1,257
FW2206246.UP.FTS.B,
29.1%,
12/08/26
..
20,000
455
FW2200712.UP.FTS.B,
29.25%,
12/08/26
.
2,905
2,875
FW2195267.UP.FTS.B,
29.27%,
12/08/26
.
7,165
7,093
FW2205727.UP.FTS.B,
29.33%,
12/08/26
.
10,670
10,566
FW2204212.UP.FTS.B,
29.48%,
12/08/26
.
15,786
15,627
FW2202312.UP.FTS.B,
29.54%,
12/08/26
.
6,780
6,711
FW2203404.UP.FTS.B,
29.65%,
12/08/26
.
1,932
1,913
FW2201641.UP.FTS.B,
29.67%,
12/08/26
.
7,943
7,863
FW2200817.UP.FTS.B,
29.72%,
12/08/26
.
6,297
6,233
FW2206862.UP.FTS.B,
29.87%,
12/08/26
.
4,650
4,603
FW2202455.UP.FTS.B,
29.91%,
12/08/26
.
3,038
1,819
FW2200914.UP.FTS.B,
29.96%,
12/08/26
.
17,247
16,999
FW2199020.UP.FTS.B,
29.97%,
12/08/26
.
9,303
9,209
FW2204135.UP.FTS.B,
30.05%,
12/08/26
.
4,845
4,796
FW2206271.UP.FTS.B,
30.18%,
12/08/26
.
7,753
7,674
FW2202975.UP.FTS.B,
30.2%,
12/08/26
..
3,295
3,262
FW2201513.UP.FTS.B,
30.22%,
12/08/26
.
1,647
1,631
FW2205595.UP.FTS.B,
30.3%,
12/08/26
..
4,071
4,030
FW2204427.UP.FTS.B,
30.34%,
12/08/26
.
7,754
7,676
FW2203423.UP.FTS.B,
30.49%,
12/08/26
.
969
960
FW2201341.UP.FTS.B,
30.5%,
12/08/26
..
9,694
9,596
FW2204255.UP.FTS.B,
30.54%,
12/08/26
.
1,551
1,535
FW2202866.UP.FTS.B,
30.6%,
12/08/26
..
1,066
1,056
FW2204565.UP.FTS.B,
30.62%,
12/08/26
.
5,296
5,240
FW2205951.UP.FTS.B,
30.74%,
12/08/26
.
48,569
48,100
FW2200422.UP.FTS.B,
30.75%,
12/08/26
.
6,787
6,719
FW2200654.UP.FTS.B,
30.75%,
12/08/26
.
3,316
3,285
FW2206664.UP.FTS.B,
30.81%,
12/08/26
.
778
765
FW2203485.UP.FTS.B,
30.82%,
12/08/26
.
1,505
1,481
FW2199475.UP.FTS.B,
30.86%,
12/08/26
.
3,946
1,143
FW2205386.UP.FTS.B,
30.87%,
12/08/26
.
9,520
9,415
FW2197539.UP.FTS.B,
30.89%,
12/08/26
.
5,818
5,760
FW2200519.UP.FTS.B,
30.9%,
12/08/26
..
1,673
484
FW2200882.UP.FTS.B,
30.9%,
12/08/26
..
1,270
761
FW2201735.UP.FTS.B,
30.95%,
12/08/26
.
1,164
1,152
FW2200744.UP.FTS.B,
30.97%,
12/08/26
.
4,787
2,867
FW2202156.UP.FTS.B,
31.02%,
12/08/26
.
1,164
1,152
FW2201142.UP.FTS.B,
31.05%,
12/08/26
.
970
960
FW2202450.UP.FTS.B,
31.05%,
12/08/26
.
2,664
775
FW2201216.UP.FTS.B,
31.06%,
12/08/26
.
2,466
1,482
FW2202624.UP.FTS.B,
31.06%,
12/08/26
.
2,231
2,208
FW2203290.UP.FTS.B,
31.07%,
12/08/26
.
1,358
1,344
FW2206683.UP.FTS.B,
31.07%,
12/08/26
.
2,023
2,002
FW2201843.UP.FTS.B,
31.08%,
12/08/26
.
1,649
1,632
FW2205002.UP.FTS.B,
31.08%,
12/08/26
.
3,007
2,976
FW2202334.UP.FTS.B,
31.12%,
12/08/26
.
3,492
3,457
FW2200524.UP.FTS.B,
31.14%,
12/08/26
.
6,633
6,555
FW2200460.UP.FTS.B,
31.17%,
12/08/26
.
748
736
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2201347.UP.FTS.B,
31.17%,
12/08/26
.
$
2,433
$
2,405
FW2199311.UP.FTS.B,
31.18%,
12/08/26
.
1,358
1,344
FW2205181.UP.FTS.B,
31.19%,
12/08/26
.
2,037
2,016
FW2200444.UP.FTS.B,
31.21%,
12/08/26
.
3,790
3,753
FW2201322.UP.FTS.B,
31.21%,
12/08/26
.
2,649
2,626
FW2202038.UP.FTS.B,
31.21%,
12/08/26
.
8,824
2,554
FW2203796.UP.FTS.B,
31.21%,
12/08/26
.
6,261
6,195
FW2199452.UP.FTS.B,
31.24%,
12/08/26
.
970
960
FW2201772.UP.FTS.B,
31.27%,
12/08/26
.
5,335
5,281
FW2140186.UP.FTS.B,
31.28%,
12/08/26
.
4,397
2,634
FW2200618.UP.FTS.B,
31.33%,
12/08/26
.
1,444
416
FW2203252.UP.FTS.B,
31.37%,
12/08/26
.
3,511
3,470
FW2203711.UP.FTS.B,
31.37%,
12/08/26
.
9,313
9,219
FW2202425.UP.FTS.B,
31.38%,
12/08/26
.
3,395
3,361
FW2200697.UP.FTS.B,
31.46%,
12/08/26
.
3,376
3,341
FW2201710.UP.FTS.B,
31.5%,
12/08/26
..
4,851
4,802
FW2199126.UP.FTS.B,
31.54%,
12/08/26
.
6,015
5,955
FW2202345.UP.FTS.B,
31.56%,
12/08/26
.
4,075
4,034
FW2201498.UP.FTS.B,
31.9%,
12/08/26
..
6,114
6,053
FW2203562.UP.FTS.B,
32.34%,
12/08/26
.
5,825
5,767
FW2200977.UP.FTS.B,
32.46%,
12/08/26
.
5,378
3,225
FW2411209.UP.FTS.B,
5.24%,
1/11/27
...
19,116
19,066
L2411009.UP.FTS.B,
5.26%,
1/11/27
.....
33,453
33,365
FW2411871.UP.FTS.B,
5.28%,
1/11/27
...
15,389
15,349
L2413473.UP.FTS.B,
5.35%,
1/11/27
.....
10,510
10,483
FW2412321.UP.FTS.B,
5.36%,
1/11/27
...
47,796
47,670
L2411377.UP.FTS.B,
5.48%,
1/11/27
.....
4,000
536
L2408655.UP.FTS.B,
5.7%,
1/11/27
......
20,177
20,124
L2409091.UP.FTS.B,
5.78%,
1/11/27
.....
2,104
2,098
L2402399.UP.FTS.B,
6.09%,
1/11/27
.....
25,926
25,858
FW2408524.UP.FTS.B,
6.18%,
1/11/27
...
10,333
10,306
L2413519.UP.FTS.B,
6.19%,
1/11/27
.....
23,919
23,857
FW2411884.UP.FTS.B,
6.2%,
1/11/27
....
23,920
23,857
L2411685.UP.FTS.B,
7.25%,
1/11/27
.....
14,368
14,301
L2411160.UP.FTS.B,
7.26%,
1/11/27
.....
14,368
14,331
FW2406810.UP.FTS.B,
7.3%,
1/11/27
....
6,092
6,075
L2410292.UP.FTS.B,
7.3%,
1/11/27
......
4,016
3,998
L2411745.UP.FTS.B,
7.47%,
1/11/27
.....
6,707
6,676
L2408178.UP.FTS.B,
7.59%,
1/11/27
.....
19,164
19,076
L2408660.UP.FTS.B,
7.61%,
1/11/27
.....
6,612
6,581
L2412468.UP.FTS.B,
7.67%,
1/11/27
.....
41,207
41,017
L2407212.UP.FTS.B,
7.8%,
1/11/27
......
17,443
17,363
L2412785.UP.FTS.B,
7.81%,
1/11/27
.....
1,917
1,908
L2412559.UP.FTS.B,
7.83%,
1/11/27
.....
4,862
4,838
L2408557.UP.FTS.B,
7.86%,
1/11/27
.....
4,792
4,770
L2407811.UP.FTS.B,
7.94%,
1/11/27
.....
7,669
7,633
L2412462.UP.FTS.B,
7.99%,
1/11/27
.....
3,355
3,340
L2412874.UP.FTS.B,
8.03%,
1/11/27
.....
6,568
6,536
L2413039.UP.FTS.B,
8.03%,
1/11/27
.....
14,380
14,314
L2412920.UP.FTS.B,
8.25%,
1/11/27
.....
14,383
14,317
FW2407114.UP.FTS.B,
8.36%,
1/11/27
...
11,508
11,455
L2412901.UP.FTS.B,
8.44%,
1/11/27
.....
14,093
14,025
L2410004.UP.FTS.B,
8.45%,
1/11/27
.....
9,207
9,165
L2410102.UP.FTS.B,
8.56%,
1/11/27
.....
3,357
3,342
L2410384.UP.FTS.B,
8.56%,
1/11/27
.....
20,718
20,623
FW2413850.UP.FTS.B,
8.58%,
1/11/27
...
10,263
10,216
L2413727.UP.FTS.B,
8.61%,
1/11/27
.....
4,125
4,106
L2409419.UP.FTS.B,
8.66%,
1/11/27
.....
9,593
9,549
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
194
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2412142.UP.FTS.B,
8.74%,
1/11/27
.....
$
16,213
$
16,139
FW2410081.UP.FTS.B,
8.78%,
1/11/27
...
17,269
17,190
L2413256.UP.FTS.B,
8.78%,
1/11/27
.....
17,269
17,190
FW2413835.UP.FTS.B,
8.81%,
1/11/27
...
10,554
10,505
FW2409381.UP.FTS.B,
8.85%,
1/11/27
...
4,318
4,298
L2407187.UP.FTS.B,
8.85%,
1/11/27
.....
4,759
4,736
L2413316.UP.FTS.B,
8.98%,
1/11/27
.....
11,550
11,505
FW2411415.UP.FTS.B,
9.04%,
1/11/27
...
6,614
6,583
FW2413111.UP.FTS.B,
9.07%,
1/11/27
...
7,657
7,622
FW2411385.UP.FTS.B,
9.23%,
1/11/27
...
8,639
8,599
L2405469.UP.FTS.B,
9.26%,
1/11/27
.....
7,644
7,608
L2411758.UP.FTS.B,
9.34%,
1/11/27
.....
1,247
1,241
FW2413046.UP.FTS.B,
9.47%,
1/11/27
...
6,943
6,908
L2408994.UP.FTS.B,
9.47%,
1/11/27
.....
7,201
7,168
L2410685.UP.FTS.B,
9.48%,
1/11/27
.....
8,668
8,635
L2408154.UP.FTS.B,
9.67%,
1/11/27
.....
13,948
13,894
L2412775.UP.FTS.B,
9.82%,
1/11/27
.....
23,796
23,625
FW2406985.UP.FTS.B,
9.83%,
1/11/27
...
2,881
2,868
L2412433.UP.FTS.B,
9.93%,
1/11/27
.....
8,165
8,107
L2404630.UP.FTS.B,
10.03%,
1/11/27
....
48,031
47,811
L2407014.UP.FTS.B,
10.08%,
1/11/27
....
10,465
2,535
L2411759.UP.FTS.B,
10.11%,
1/11/27
....
21,073
20,975
L2411458.UP.FTS.B,
10.12%,
1/11/27
....
2,114
2,104
L2411928.UP.FTS.B,
10.18%,
1/11/27
....
4,804
4,770
L2408600.UP.FTS.B,
10.21%,
1/11/27
....
4,122
4,092
L2411339.UP.FTS.B,
10.23%,
1/11/27
....
14,412
14,346
L2408318.UP.FTS.B,
10.27%,
1/11/27
....
3,843
3,816
FW2412294.UP.FTS.B,
10.3%,
1/11/27
...
4,804
4,771
L2412184.UP.FTS.B,
10.32%,
1/11/27
....
2,883
2,862
L2413945.UP.FTS.B,
10.53%,
1/11/27
....
21,144
20,995
FW2410236.UP.FTS.B,
10.56%,
1/11/27
..
2,980
2,959
FW2411320.UP.FTS.B,
10.63%,
1/11/27
..
4,185
2,182
L2411092.UP.FTS.B,
10.65%,
1/11/27
....
9,132
9,067
L2411410.UP.FTS.B,
10.67%,
1/11/27
....
283
281
L2411539.UP.FTS.B,
10.75%,
1/11/27
....
5,925
1,485
L2411021.UP.FTS.B,
10.83%,
1/11/27
....
7,667
7,631
FW2412113.UP.FTS.B,
10.85%,
1/11/27
..
24,035
23,866
L2411940.UP.FTS.B,
10.86%,
1/11/27
....
2,115
2,100
L2409581.UP.FTS.B,
10.9%,
1/11/27
.....
9,614
9,547
L2411297.UP.FTS.B,
10.9%,
1/11/27
.....
8,557
8,497
L2413322.UP.FTS.B,
10.93%,
1/11/27
....
10,192
10,120
L2409346.UP.FTS.B,
10.95%,
1/11/27
....
14,423
14,321
L2413229.UP.FTS.B,
11.26%,
1/11/27
....
17,273
17,150
L2406699.UP.FTS.B,
11.27%,
1/11/27
....
4,328
4,298
L2410736.UP.FTS.B,
11.27%,
1/11/27
....
10,231
5,333
L2407799.UP.FTS.B,
11.35%,
1/11/27
....
11,543
11,461
FW2413104.UP.FTS.B,
11.4%,
1/11/27
...
11,543
11,462
FW2409223.UP.FTS.B,
11.43%,
1/11/27
..
2,020
2,006
L2410182.UP.FTS.B,
11.47%,
1/11/27
....
16,123
16,025
L2411571.UP.FTS.B,
11.47%,
1/11/27
....
7,515
7,460
L2413044.UP.FTS.B,
11.78%,
1/11/27
....
7,698
7,644
L2410361.UP.FTS.B,
11.82%,
1/11/27
....
10,585
10,511
FW2408471.UP.FTS.B,
11.94%,
1/11/27
..
5,775
5,734
L2405206.UP.FTS.B,
12.1%,
1/11/27
.....
23,159
23,019
L2413627.UP.FTS.B,
12.33%,
1/11/27
....
28,884
28,681
L2408806.UP.FTS.B,
12.4%,
1/11/27
.....
33,700
33,463
FW2409917.UP.FTS.B,
12.52%,
1/11/27
..
6,163
6,120
L2370107.UP.FTS.B,
12.85%,
1/11/27
....
4,720
4,687
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2412100.UP.FTS.B,
13.07%,
1/11/27
....
$
6,269
$
6,231
L2409206.UP.FTS.B,
13.1%,
1/11/27
.....
3,850
3,822
L2413356.UP.FTS.B,
13.4%,
1/11/27
.....
7,752
7,706
L2411596.UP.FTS.B,
13.42%,
1/11/27
....
4,808
4,774
L2411372.UP.FTS.B,
13.45%,
1/11/27
....
5,783
5,742
FW2412293.UP.FTS.B,
13.57%,
1/11/27
..
5,098
5,062
FW2411936.UP.FTS.B,
13.61%,
1/11/27
..
7,422
7,370
FW2412839.UP.FTS.B,
13.8%,
1/11/27
...
10,316
10,244
FW2407206.UP.FTS.B,
13.82%,
1/11/27
..
5,785
5,744
FW2410061.UP.FTS.B,
13.89%,
1/11/27
..
19,284
19,148
L2412994.UP.FTS.B,
13.93%,
1/11/27
....
4,012
3,975
L2412970.UP.FTS.B,
14.15%,
1/11/27
....
28,933
28,730
L2409821.UP.FTS.B,
14.42%,
1/11/27
....
5,209
5,173
L2410324.UP.FTS.B,
14.46%,
1/11/27
....
18,522
18,392
L2405215.UP.FTS.B,
14.48%,
1/11/27
....
28,655
28,449
L2408774.UP.FTS.B,
14.55%,
1/11/27
....
3,859
3,819
FW2412832.UP.FTS.B,
14.73%,
1/11/27
..
5,818
5,784
L2410681.UP.FTS.B,
14.74%,
1/11/27
....
2,412
2,395
L2408843.UP.FTS.B,
14.84%,
1/11/27
....
2,965
2,943
L2408771.UP.FTS.B,
14.9%,
1/11/27
.....
8,000
1,086
L2407539.UP.FTS.B,
14.97%,
1/11/27
....
11,582
11,500
L2412759.UP.FTS.B,
15.38%,
1/11/27
....
5,793
5,732
L2412202.UP.FTS.B,
15.67%,
1/11/27
....
5,795
5,754
FW2409433.UP.FTS.B,
15.77%,
1/11/27
..
24,147
23,977
L2410725.UP.FTS.B,
15.84%,
1/11/27
....
18,953
18,814
L2413295.UP.FTS.B,
15.96%,
1/11/27
....
6,279
6,213
L2408436.UP.FTS.B,
15.99%,
1/11/27
....
38,642
38,237
FW2412862.UP.FTS.B,
16.01%,
1/11/27
..
9,854
9,785
L2379748.UP.FTS.B,
16.06%,
1/11/27
....
4,251
4,206
L2410414.UP.FTS.B,
16.07%,
1/11/27
....
4,808
4,757
L2413878.UP.FTS.B,
16.28%,
1/11/27
....
10,581
10,505
L2413797.UP.FTS.B,
16.41%,
1/11/27
....
9,632
9,530
L2412207.UP.FTS.B,
16.44%,
1/11/27
....
1,740
1,721
FW2411990.UP.FTS.B,
16.5%,
1/11/27
...
19,329
19,127
FW2407061.UP.FTS.B,
16.61%,
1/11/27
..
15,577
15,440
L2406986.UP.FTS.B,
16.62%,
1/11/27
....
4,833
4,782
L2412621.UP.FTS.B,
16.62%,
1/11/27
....
3,866
3,826
L2407022.UP.FTS.B,
16.96%,
1/11/27
....
4,834
4,784
L2409264.UP.FTS.B,
16.99%,
1/11/27
....
9,669
9,568
FW2411635.UP.FTS.B,
17.05%,
1/11/27
..
4,931
4,868
FW2412497.UP.FTS.B,
17.05%,
1/11/27
..
9,669
9,568
L2412903.UP.FTS.B,
17.31%,
1/11/27
....
1,451
1,441
FW2407434.UP.FTS.B,
17.34%,
1/11/27
..
19,344
19,208
FW2407072.UP.FTS.B,
17.38%,
1/11/27
..
4,836
4,802
L2411840.UP.FTS.B,
17.48%,
1/11/27
....
27,761
27,566
FW2410259.UP.FTS.B,
17.51%,
1/11/27
..
10,026
9,946
L2406982.UP.FTS.B,
17.53%,
1/11/27
....
8,803
8,690
L2412808.UP.FTS.B,
17.54%,
1/11/27
....
9,674
9,572
L2410494.UP.FTS.B,
17.56%,
1/11/27
....
19,347
19,145
FW2411466.UP.FTS.B,
17.75%,
1/11/27
..
1,935
1,915
L2407285.UP.FTS.B,
17.96%,
1/11/27
....
4,838
4,777
FW2407640.UP.FTS.B,
18.05%,
1/11/27
..
10,645
10,571
FW2407472.UP.FTS.B,
18.08%,
1/11/27
..
25,163
24,986
L2410765.UP.FTS.B,
18.19%,
1/11/27
....
7,221
7,143
L2410306.UP.FTS.B,
18.23%,
1/11/27
....
6,775
6,728
FW2413451.UP.FTS.B,
18.29%,
1/11/27
..
2,420
2,389
L2412214.UP.FTS.B,
18.34%,
1/11/27
....
2,848
2,827
L2412796.UP.FTS.B,
18.35%,
1/11/27
....
6,292
6,211
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
195
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2407240.UP.FTS.B,
18.45%,
1/11/27
....
$
9,681
$
9,557
L2413233.UP.FTS.B,
18.45%,
1/11/27
....
2,420
2,395
L2412345.UP.FTS.B,
18.51%,
1/11/27
....
3,278
3,235
L2406617.UP.FTS.B,
18.6%,
1/11/27
.....
1,936
1,912
L2413035.UP.FTS.B,
18.66%,
1/11/27
....
2,911
2,879
FW2406958.UP.FTS.B,
18.83%,
1/11/27
..
2,421
2,396
L2407160.UP.FTS.B,
18.83%,
1/11/27
....
16,947
16,769
FW2406995.UP.FTS.B,
18.92%,
1/11/27
..
12,357
12,221
L2409397.UP.FTS.B,
18.93%,
1/11/27
....
7,748
7,667
L2413429.UP.FTS.B,
19.09%,
1/11/27
....
933
926
L2407535.UP.FTS.B,
19.16%,
1/11/27
....
5,231
5,176
L2412374.UP.FTS.B,
19.25%,
1/11/27
....
11,625
11,510
L2407687.UP.FTS.B,
19.39%,
1/11/27
....
1,380
1,368
L2413002.UP.FTS.B,
19.57%,
1/11/27
....
4,264
4,209
L2410320.UP.FTS.B,
19.7%,
1/11/27
.....
9,497
9,403
L2407259.UP.FTS.B,
19.81%,
1/11/27
....
8,610
8,499
FW2410395.UP.FTS.B,
20.34%,
1/11/27
..
4,848
4,786
FW2404586.UP.FTS.B,
20.36%,
1/11/27
..
14,691
8,419
FW2412607.UP.FTS.B,
20.39%,
1/11/27
..
4,654
4,608
L2411820.UP.FTS.B,
20.47%,
1/11/27
....
2,000
585
FW2410858.UP.FTS.B,
20.48%,
1/11/27
..
2,142
2,123
L2395966.UP.FTS.B,
20.59%,
1/11/27
....
15,905
15,747
FW2412890.UP.FTS.B,
20.68%,
1/11/27
..
9,699
9,602
FW2410350.UP.FTS.B,
20.75%,
1/11/27
..
9,699
9,603
L2406944.UP.FTS.B,
20.79%,
1/11/27
....
10,313
10,218
FW2411255.UP.FTS.B,
20.89%,
1/11/27
..
4,365
4,322
L2402977.UP.FTS.B,
20.95%,
1/11/27
....
1,953
1,935
L2407644.UP.FTS.B,
21.08%,
1/11/27
....
3,881
3,842
FW2409292.UP.FTS.B,
21.09%,
1/11/27
..
24,254
23,943
L2412421.UP.FTS.B,
21.23%,
1/11/27
....
2,620
2,594
L2406830.UP.FTS.B,
21.4%,
1/11/27
.....
17,467
17,243
L2378661.UP.FTS.B,
21.43%,
1/11/27
....
2,426
2,401
L2410708.UP.FTS.B,
21.43%,
1/11/27
....
2,355
2,329
L2410907.UP.FTS.B,
21.6%,
1/11/27
.....
3,397
3,363
L2408543.UP.FTS.B,
21.71%,
1/11/27
....
4,437
4,391
FW2411595.UP.FTS.B,
21.83%,
1/11/27
..
4,854
4,791
FW2405620.UP.FTS.B,
21.95%,
1/11/27
..
1,632
1,614
FW2413140.UP.FTS.B,
22.12%,
1/11/27
..
4,855
4,806
L2413585.UP.FTS.B,
22.13%,
1/11/27
....
7,768
7,690
FW2413038.UP.FTS.B,
22.18%,
1/11/27
..
1,942
1,923
L2413170.UP.FTS.B,
22.26%,
1/11/27
....
7,299
7,233
FW2411932.UP.FTS.B,
22.38%,
1/11/27
..
5,158
5,127
L2413345.UP.FTS.B,
22.45%,
1/11/27
....
5,827
5,769
L2410843.UP.FTS.B,
22.81%,
1/11/27
....
4,372
4,328
FW2412276.UP.FTS.B,
22.84%,
1/11/27
..
3,814
3,774
FW2408730.UP.FTS.B,
22.91%,
1/11/27
..
17,371
17,190
L2410433.UP.FTS.B,
22.92%,
1/11/27
....
1,943
1,918
FW2409793.UP.FTS.B,
22.96%,
1/11/27
..
9,716
9,619
L2410796.UP.FTS.B,
23%,
1/11/27
......
6,996
6,926
L2413593.UP.FTS.B,
23.06%,
1/11/27
....
8,733
8,645
L2410622.UP.FTS.B,
23.11%,
1/11/27
....
4,664
4,618
L2413027.UP.FTS.B,
23.16%,
1/11/27
....
7,774
7,696
L2399356.UP.FTS.B,
23.25%,
1/11/27
....
5,831
5,772
FW2412083.UP.FTS.B,
23.34%,
1/11/27
..
4,471
4,426
FW2406392.UP.FTS.B,
23.41%,
1/11/27
..
8,825
8,747
FW2410830.UP.FTS.B,
23.55%,
1/11/27
..
10,784
10,641
FW2411494.UP.FTS.B,
23.55%,
1/11/27
..
3,402
3,368
L2411082.UP.FTS.B,
23.57%,
1/11/27
....
11,175
11,063
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2411134.UP.FTS.B,
23.62%,
1/11/27
..
$
9,721
$
9,596
L2408703.UP.FTS.B,
23.63%,
1/11/27
....
5,755
5,694
L2413373.UP.FTS.B,
23.72%,
1/11/27
....
29,164
28,873
L2411227.UP.FTS.B,
23.8%,
1/11/27
.....
3,879
3,840
FW2413529.UP.FTS.B,
23.86%,
1/11/27
..
1,944
1,925
L2412570.UP.FTS.B,
23.87%,
1/11/27
....
19,445
19,250
L2411288.UP.FTS.B,
23.94%,
1/11/27
....
12,056
11,936
L2409471.UP.FTS.B,
23.96%,
1/11/27
....
5,834
5,775
L2412292.UP.FTS.B,
24.03%,
1/11/27
....
17,963
17,781
L2413379.UP.FTS.B,
24.03%,
1/11/27
....
19,447
19,253
L2413360.UP.FTS.B,
24.07%,
1/11/27
....
1,945
1,925
FW2412786.UP.FTS.B,
24.26%,
1/11/27
..
8,266
8,184
L2413922.UP.FTS.B,
24.27%,
1/11/27
....
3,099
3,067
FW2407476.UP.FTS.B,
24.28%,
1/11/27
..
4,416
2,633
L2412474.UP.FTS.B,
24.3%,
1/11/27
.....
6,808
6,720
L2406745.UP.FTS.B,
24.41%,
1/11/27
....
2,034
2,007
FW2409686.UP.FTS.B,
24.48%,
1/11/27
..
6,810
6,742
L2412735.UP.FTS.B,
24.5%,
1/11/27
.....
4,669
4,622
FW2412331.UP.FTS.B,
24.55%,
1/11/27
..
19,455
19,260
FW2411158.UP.FTS.B,
24.56%,
1/11/27
..
2,918
2,889
L2411714.UP.FTS.B,
24.56%,
1/11/27
....
2,634
2,609
L2407599.UP.FTS.B,
24.69%,
1/11/27
....
11,518
11,399
FW2409812.UP.FTS.B,
24.81%,
1/11/27
..
2,904
2,874
L2402374.UP.FTS.B,
24.82%,
1/11/27
....
973
963
L2412557.UP.FTS.B,
24.83%,
1/11/27
....
6,810
6,742
L2407837.UP.FTS.B,
24.89%,
1/11/27
....
2,894
2,859
FW2411057.UP.FTS.B,
24.91%,
1/11/27
..
3,409
3,377
FW2407461.UP.FTS.B,
25.01%,
1/11/27
..
4,865
4,817
L2410747.UP.FTS.B,
25.02%,
1/11/27
....
1,460
1,445
L2413166.UP.FTS.B,
25.02%,
1/11/27
....
2,748
1,640
L2413478.UP.FTS.B,
25.02%,
1/11/27
....
3,211
3,179
L2407824.UP.FTS.B,
25.08%,
1/11/27
....
3,990
3,950
L2412285.UP.FTS.B,
25.08%,
1/11/27
....
12,164
12,042
L2389901.UP.FTS.B,
25.09%,
1/11/27
....
1,325
1,307
L2412701.UP.FTS.B,
25.09%,
1/11/27
....
1,332
1,317
L2412420.UP.FTS.B,
25.12%,
1/11/27
....
1,448
1,433
L2402682.UP.FTS.B,
25.13%,
1/11/27
....
1,070
1,060
L2410276.UP.FTS.B,
25.16%,
1/11/27
....
940
929
L2412631.UP.FTS.B,
25.16%,
1/11/27
....
1,265
1,252
FW2412505.UP.FTS.B,
25.22%,
1/11/27
..
4,574
4,528
L2406959.UP.FTS.B,
25.22%,
1/11/27
....
11,492
11,366
L2413584.UP.FTS.B,
25.24%,
1/11/27
....
1,168
1,153
L2413218.UP.FTS.B,
25.25%,
1/11/27
....
1,168
1,153
L2412108.UP.FTS.B,
25.28%,
1/11/27
....
3,299
3,261
L2406872.UP.FTS.B,
25.29%,
1/11/27
....
5,158
5,106
L2413560.UP.FTS.B,
25.29%,
1/11/27
....
3,416
3,385
L2410164.UP.FTS.B,
25.3%,
1/11/27
.....
1,168
1,156
L2412052.UP.FTS.B,
25.3%,
1/11/27
.....
13,669
13,500
L2406611.UP.FTS.B,
25.32%,
1/11/27
....
22,218
21,965
FW2410196.UP.FTS.B,
25.33%,
1/11/27
..
3,472
1,004
FW2411982.UP.FTS.B,
25.34%,
1/11/27
..
4,960
1,434
L2409213.UP.FTS.B,
25.34%,
1/11/27
....
5,120
5,066
L2413580.UP.FTS.B,
25.34%,
1/11/27
....
1,669
1,654
L2408618.UP.FTS.B,
25.36%,
1/11/27
....
2,433
2,409
L2412211.UP.FTS.B,
25.36%,
1/11/27
....
8,180
4,870
L2411780.UP.FTS.B,
25.37%,
1/11/27
....
3,573
3,522
L2413809.UP.FTS.B,
25.37%,
1/11/27
....
7,689
7,612
L2393106.UP.FTS.B,
25.38%,
1/11/27
....
9,246
9,127
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
196
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2409900.UP.FTS.B,
25.4%,
1/11/27
.....
$
973
$
964
L2411491.UP.FTS.B,
25.4%,
1/11/27
.....
2,420
2,389
L2412739.UP.FTS.B,
25.4%,
1/11/27
.....
975
562
L2413553.UP.FTS.B,
25.42%,
1/11/27
....
1,265
1,249
L2407550.UP.FTS.B,
25.46%,
1/11/27
....
1,071
1,060
L2412889.UP.FTS.B,
25.46%,
1/11/27
....
1,849
1,831
L2406911.UP.FTS.B,
25.47%,
1/11/27
....
2,354
2,327
L2411973.UP.FTS.B,
25.47%,
1/11/27
....
1,265
1,253
L2410938.UP.FTS.B,
25.48%,
1/11/27
....
11,290
6,739
L2411979.UP.FTS.B,
25.48%,
1/11/27
....
1,070
1,059
L2412081.UP.FTS.B,
25.48%,
1/11/27
....
6,132
6,071
L2413401.UP.FTS.B,
25.48%,
1/11/27
....
12,848
12,683
L2411173.UP.FTS.B,
25.49%,
1/11/27
....
1,363
1,349
L2413595.UP.FTS.B,
25.51%,
1/11/27
....
3,212
3,180
L2412805.UP.FTS.B,
25.53%,
1/11/27
....
6,522
6,456
FW2412928.UP.FTS.B,
25.61%,
1/11/27
..
1,947
1,927
FW2407809.UP.FTS.B,
25.64%,
1/11/27
..
12,363
12,239
L2410766.UP.FTS.B,
25.7%,
1/11/27
.....
6,498
6,431
FW2410664.UP.FTS.B,
25.72%,
1/11/27
..
1,947
1,928
L2406964.UP.FTS.B,
25.73%,
1/11/27
....
4,770
4,723
FW2410079.UP.FTS.B,
25.81%,
1/11/27
..
2,921
2,891
L2406866.UP.FTS.B,
25.98%,
1/11/27
....
1,768
1,056
L2413661.UP.FTS.B,
25.98%,
1/11/27
....
2,532
2,506
L2408715.UP.FTS.B,
26.2%,
1/11/27
.....
13,862
13,719
L2412410.UP.FTS.B,
26.21%,
1/11/27
....
7,304
7,231
FW2412377.UP.FTS.B,
26.3%,
1/11/27
...
6,038
5,978
FW2411228.UP.FTS.B,
26.37%,
1/11/27
..
3,878
3,838
FW2411046.UP.FTS.B,
26.47%,
1/11/27
..
8,700
8,608
FW2412597.UP.FTS.B,
26.59%,
1/11/27
..
9,785
5,844
L2409231.UP.FTS.B,
26.66%,
1/11/27
....
4,741
4,689
L2410155.UP.FTS.B,
26.8%,
1/11/27
.....
7,794
7,716
FW2409497.UP.FTS.B,
26.87%,
1/11/27
..
1,933
1,913
FW2410552.UP.FTS.B,
27%,
1/11/27
....
1,949
1,929
L2407955.UP.FTS.B,
27%,
1/11/27
......
7,795
7,717
FW2410687.UP.FTS.B,
27.05%,
1/11/27
..
14,617
14,469
FW2408955.UP.FTS.B,
27.26%,
1/11/27
..
2,468
2,449
FW2407003.UP.FTS.B,
27.4%,
1/11/27
...
6,433
6,368
FW2413526.UP.FTS.B,
27.48%,
1/11/27
..
9,747
9,649
FW2410353.UP.FTS.B,
27.55%,
1/11/27
..
8,801
8,720
FW2410176.UP.FTS.B,
27.65%,
1/11/27
..
5,849
5,790
FW2412354.UP.FTS.B,
27.69%,
1/11/27
..
975
965
FW2409407.UP.FTS.B,
27.75%,
1/11/27
..
5,041
4,988
FW2412160.UP.FTS.B,
27.76%,
1/11/27
..
3,900
3,860
FW2406988.UP.FTS.B,
27.86%,
1/11/27
..
4,875
4,826
FW2408818.UP.FTS.B,
27.86%,
1/11/27
..
11,308
11,178
FW2410214.UP.FTS.B,
27.92%,
1/11/27
..
48,751
48,260
FW2410159.UP.FTS.B,
27.94%,
1/11/27
..
4,347
4,301
FW2412851.UP.FTS.B,
28.09%,
1/11/27
..
4,423
2,646
FW2412836.UP.FTS.B,
28.16%,
1/11/27
..
4,914
4,871
FW2402005.UP.FTS.B,
28.28%,
1/11/27
..
1,863
1,840
FW2413704.UP.FTS.B,
28.34%,
1/11/27
..
22,600
13,554
FW2406115.UP.FTS.B,
28.41%,
1/11/27
..
5,364
5,310
FW2410714.UP.FTS.B,
28.59%,
1/11/27
..
1,171
1,159
FW2405234.UP.FTS.B,
28.71%,
1/11/27
..
1,137
1,124
FW2409269.UP.FTS.B,
28.8%,
1/11/27
...
4,964
1,443
FW2413762.UP.FTS.B,
28.85%,
1/11/27
..
3,902
3,863
FW2410593.UP.FTS.B,
28.88%,
1/11/27
..
8,781
8,692
FW2412229.UP.FTS.B,
28.91%,
1/11/27
..
3,985
3,941
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2412768.UP.FTS.B,
29.24%,
1/11/27
..
$
2,732
$
2,705
FW2410113.UP.FTS.B,
29.34%,
1/11/27
..
3,025
2,995
FW2411293.UP.FTS.B,
29.42%,
1/11/27
..
1,562
1,546
FW2407567.UP.FTS.B,
29.43%,
1/11/27
..
3,904
3,864
FW2412515.UP.FTS.B,
29.43%,
1/11/27
..
1,952
1,932
FW2407055.UP.FTS.B,
29.46%,
1/11/27
..
4,737
4,682
FW2408568.UP.FTS.B,
29.5%,
1/11/27
...
4,392
4,348
FW2411354.UP.FTS.B,
29.5%,
1/11/27
...
3,298
3,264
FW2403902.UP.FTS.B,
29.51%,
1/11/27
..
2,147
2,126
FW2410442.UP.FTS.B,
29.53%,
1/11/27
..
1,984
1,190
FW2413452.UP.FTS.B,
29.72%,
1/11/27
..
1,788
520
FW2412625.UP.FTS.B,
30.04%,
1/11/27
..
5,858
5,799
FW2407473.UP.FTS.B,
30.14%,
1/11/27
..
3,777
3,733
FW2412942.UP.FTS.B,
30.18%,
1/11/27
..
3,711
3,673
FW2400724.UP.FTS.B,
30.27%,
1/11/27
..
6,862
6,799
FW2413192.UP.FTS.B,
30.3%,
1/11/27
...
6,250
6,186
FW2413390.UP.FTS.B,
30.33%,
1/11/27
..
4,274
4,229
FW2409559.UP.FTS.B,
30.37%,
1/11/27
..
1,074
1,063
FW2407748.UP.FTS.B,
30.43%,
1/11/27
..
2,344
2,320
FW2413380.UP.FTS.B,
30.45%,
1/11/27
..
3,818
3,783
FW2395496.UP.FTS.B,
30.49%,
1/11/27
..
5,664
5,607
FW2412568.UP.FTS.B,
30.5%,
1/11/27
...
1,968
1,180
FW2413147.UP.FTS.B,
30.55%,
1/11/27
..
3,976
3,933
FW2390839.UP.FTS.B,
30.58%,
1/11/27
..
1,744
1,719
FW2410881.UP.FTS.B,
30.59%,
1/11/27
..
949
939
FW2413484.UP.FTS.B,
30.59%,
1/11/27
..
977
967
FW2413018.UP.FTS.B,
30.69%,
1/11/27
..
2,537
2,511
FW2410149.UP.FTS.B,
30.7%,
1/11/27
...
1,476
885
FW2408341.UP.FTS.B,
30.72%,
1/11/27
..
1,171
1,159
FW2413509.UP.FTS.B,
30.72%,
1/11/27
..
1,270
1,257
FW2410308.UP.FTS.B,
30.74%,
1/11/27
..
1,045
1,033
FW2412502.UP.FTS.B,
30.76%,
1/11/27
..
14,652
14,504
FW2412683.UP.FTS.B,
30.78%,
1/11/27
..
38,960
38,558
FW2410401.UP.FTS.B,
30.79%,
1/11/27
..
1,270
1,257
FW2413758.UP.FTS.B,
30.79%,
1/11/27
..
1,661
1,644
FW2412911.UP.FTS.B,
30.8%,
1/11/27
...
977
967
FW2408824.UP.FTS.B,
30.81%,
1/11/27
..
1,661
1,644
FW2412224.UP.FTS.B,
30.81%,
1/11/27
..
2,637
2,611
FW2410697.UP.FTS.B,
30.88%,
1/11/27
..
1,846
1,827
FW2411299.UP.FTS.B,
30.92%,
1/11/27
..
1,672
1,002
FW2392367.UP.FTS.B,
30.94%,
1/11/27
..
2,171
2,146
FW2411070.UP.FTS.B,
30.94%,
1/11/27
..
4,494
4,448
FW2407168.UP.FTS.B,
30.95%,
1/11/27
..
1,172
1,160
FW2411172.UP.FTS.B,
30.96%,
1/11/27
..
5,666
5,609
FW2410302.UP.FTS.B,
30.97%,
1/11/27
..
1,760
1,742
FW2413017.UP.FTS.B,
30.97%,
1/11/27
..
2,442
2,418
FW2403979.UP.FTS.B,
31.01%,
1/11/27
..
7,450
4,474
FW2411010.UP.FTS.B,
31.02%,
1/11/27
..
4,396
4,352
FW2409966.UP.FTS.B,
31.03%,
1/11/27
..
3,224
3,191
FW2412503.UP.FTS.B,
31.04%,
1/11/27
..
1,759
1,741
FW2407947.UP.FTS.B,
31.05%,
1/11/27
..
3,517
3,481
FW2412394.UP.FTS.B,
31.05%,
1/11/27
..
2,052
2,031
FW2411701.UP.FTS.B,
31.06%,
1/11/27
..
2,452
1,470
FW2411738.UP.FTS.B,
31.08%,
1/11/27
..
1,759
1,741
FW2412486.UP.FTS.B,
31.11%,
1/11/27
..
4,494
4,449
FW2412611.UP.FTS.B,
31.11%,
1/11/27
..
1,291
376
FW2408288.UP.FTS.B,
31.13%,
1/11/27
..
2,283
2,258
FW2413942.UP.FTS.B,
31.15%,
1/11/27
..
1,172
1,161
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
197
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2407798.UP.FTS.B,
31.16%,
1/11/27
..
$
6,003
$
5,939
FW2409027.UP.FTS.B,
31.16%,
1/11/27
..
1,563
1,547
FW2413313.UP.FTS.B,
31.16%,
1/11/27
..
3,908
3,869
FW2413418.UP.FTS.B,
31.16%,
1/11/27
..
7,230
7,157
FW2407226.UP.FTS.B,
31.18%,
1/11/27
..
3,224
3,192
FW2410271.UP.FTS.B,
31.19%,
1/11/27
..
1,856
1,838
FW2411563.UP.FTS.B,
31.19%,
1/11/27
..
4,200
2,592
FW2412133.UP.FTS.B,
31.2%,
1/11/27
...
1,226
1,209
FW2412681.UP.FTS.B,
31.21%,
1/11/27
..
1,679
1,666
FW2412666.UP.FTS.B,
31.22%,
1/11/27
..
4,053
2,433
FW2411177.UP.FTS.B,
31.23%,
1/11/27
..
2,932
2,902
FW2413443.UP.FTS.B,
31.32%,
1/11/27
..
4,231
4,193
FW2409156.UP.FTS.B,
31.35%,
1/11/27
..
3,921
3,885
FW2408291.UP.FTS.B,
31.44%,
1/11/27
..
7,525
7,448
FW2410499.UP.FTS.B,
31.67%,
1/11/27
..
1,766
1,740
FW2408747.UP.FTS.B,
31.68%,
1/11/27
..
11,920
7,153
FW2410407.UP.FTS.B,
31.96%,
1/11/27
..
2,933
2,903
FW2412072.UP.FTS.B,
32.01%,
1/11/27
..
6,843
6,774
FW2411062.UP.FTS.B,
32.46%,
1/11/27
..
6,845
6,775
FW2413772.UP.FTS.B,
32.47%,
1/11/27
..
2,881
2,849
FW2398852.UP.FTS.B,
32.96%,
1/11/27
..
1,565
1,549
FW2412816.UP.FTS.B,
33.43%,
1/11/27
..
1,565
1,549
FW2410751.UP.FTS.B,
34.47%,
1/11/27
..
4,797
4,748
L2419418.UP.FTS.B,
5.42%,
1/12/27
....
17,036
16,998
L2415328.UP.FTS.B,
5.83%,
1/12/27
....
47,733
47,630
L2419666.UP.FTS.B,
5.92%,
1/12/27
....
9,565
9,545
L2418737.UP.FTS.B,
5.93%,
1/12/27
....
3,826
3,818
L2414458.UP.FTS.B,
5.96%,
1/12/27
....
28,696
28,635
L2393298.UP.FTS.B,
5.98%,
1/12/27
....
1,909
1,905
L2414801.UP.FTS.B,
6.11%,
1/12/27
.....
10,522
10,500
L2419934.UP.FTS.B,
6.15%,
1/12/27
....
9,572
9,556
L2418198.UP.FTS.B,
6.19%,
1/12/27
....
15,308
15,276
L2419361.UP.FTS.B,
6.41%,
1/12/27
....
1,436
1,433
L2402757.UP.FTS.B,
6.51%,
1/12/27
....
6,700
6,686
L2416784.UP.FTS.B,
6.53%,
1/12/27
....
1,914
1,910
L2418799.UP.FTS.B,
6.56%,
1/12/27
....
11,492
11,473
L2417049.UP.FTS.B,
6.6%,
1/12/27
.....
6,700
6,687
FW2414856.UP.FTS.B,
6.64%,
1/12/27
...
957
955
L2415375.UP.FTS.B,
6.85%,
1/12/27
....
5,744
5,732
L2416695.UP.FTS.B,
6.86%,
1/12/27
....
4,309
4,300
FW2416453.UP.FTS.B,
6.87%,
1/12/27
...
3,359
3,354
L2414595.UP.FTS.B,
7.05%,
1/12/27
....
7,183
7,154
L2419333.UP.FTS.B,
7.27%,
1/12/27
....
13,399
13,346
FW2415988.UP.FTS.B,
7.29%,
1/12/27
...
19,158
19,082
L2417990.UP.FTS.B,
7.34%,
1/12/27
....
47,898
47,708
L2419307.UP.FTS.B,
7.34%,
1/12/27
....
38,989
38,911
L2417199.UP.FTS.B,
7.43%,
1/12/27
....
43,995
43,820
FW2415894.UP.FTS.B,
7.44%,
1/12/27
...
14,371
14,342
FW2419541.UP.FTS.B,
7.5%,
1/12/27
....
14,372
14,315
L2414153.UP.FTS.B,
7.51%,
1/12/27
....
2,395
2,391
L2419299.UP.FTS.B,
7.55%,
1/12/27
....
11,270
11,223
L2417691.UP.FTS.B,
7.69%,
1/12/27
....
21,796
21,752
L2414031.UP.FTS.B,
7.78%,
1/12/27
....
15,334
15,274
L2416389.UP.FTS.B,
7.93%,
1/12/27
....
7,802
3,924
L2415118.UP.FTS.B,
7.98%,
1/12/27
.....
13,680
1,821
L2417969.UP.FTS.B,
8.13%,
1/12/27
....
7,095
7,067
FW2416734.UP.FTS.B,
8.22%,
1/12/27
...
4,794
4,776
L2416137.UP.FTS.B,
8.26%,
1/12/27
....
9,972
9,934
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2417948.UP.FTS.B,
8.36%,
1/12/27
....
$
1,056
$
1,053
FW2415662.UP.FTS.B,
8.6%,
1/12/27
....
6,734
6,713
L2418166.UP.FTS.B,
8.62%,
1/12/27
....
4,796
4,778
L2414318.UP.FTS.B,
8.81%,
1/12/27
....
15,831
15,770
FW2416458.UP.FTS.B,
9.06%,
1/12/27
...
3,073
3,064
FW2419066.UP.FTS.B,
9.06%,
1/12/27
...
1,858
1,850
L2414012.UP.FTS.B,
9.06%,
1/12/27
....
9,597
9,579
L2416545.UP.FTS.B,
9.07%,
1/12/27
....
14,319
14,263
L2418009.UP.FTS.B,
9.08%,
1/12/27
....
11,516
11,472
L2414474.UP.FTS.B,
9.1%,
1/12/27
.....
5,778
5,760
L2414926.UP.FTS.B,
9.43%,
1/12/27
....
29,843
29,751
L2413887.UP.FTS.B,
9.49%,
1/12/27
....
5,743
5,707
FW2419389.UP.FTS.B,
9.58%,
1/12/27
...
2,349
2,339
L2418929.UP.FTS.B,
9.6%,
1/12/27
.....
14,403
14,349
FW2414819.UP.FTS.B,
9.71%,
1/12/27
...
15,365
15,307
FW2415990.UP.FTS.B,
9.9%,
1/12/27
....
28,815
28,638
L2414275.UP.FTS.B,
9.91%,
1/12/27
....
38,420
38,276
L2416335.UP.FTS.B,
10.07%,
1/12/27
....
10,183
10,145
L2417012.UP.FTS.B,
10.17%,
1/12/27
....
1,922
1,914
L2415942.UP.FTS.B,
10.21%,
1/12/27
....
14,412
14,358
FW2417548.UP.FTS.B,
10.24%,
1/12/27
..
14,412
14,359
FW2418007.UP.FTS.B,
10.28%,
1/12/27
..
2,402
2,387
FW2418613.UP.FTS.B,
10.3%,
1/12/27
...
3,826
3,811
FW2417403.UP.FTS.B,
10.31%,
1/12/27
..
6,726
6,685
L2417034.UP.FTS.B,
10.34%,
1/12/27
....
25,701
25,623
L2415901.UP.FTS.B,
10.41%,
1/12/27
....
15,376
15,282
L2414981.UP.FTS.B,
10.47%,
1/12/27
....
12,205
12,131
L2417379.UP.FTS.B,
10.69%,
1/12/27
....
4,324
4,298
FW2418154.UP.FTS.B,
10.71%,
1/12/27
..
2,993
2,978
L2414718.UP.FTS.B,
10.85%,
1/12/27
....
3,846
3,822
L2418788.UP.FTS.B,
10.88%,
1/12/27
....
7,310
7,248
L2414601.UP.FTS.B,
11.39%,
1/12/27
....
3,848
3,825
L2416866.UP.FTS.B,
11.39%,
1/12/27
....
3,174
3,155
FW2415761.UP.FTS.B,
11.51%,
1/12/27
..
4,810
4,781
FW2419104.UP.FTS.B,
11.58%,
1/12/27
..
7,697
7,651
L2415315.UP.FTS.B,
11.71%,
1/12/27
....
14,396
14,309
L2414779.UP.FTS.B,
11.77%,
1/12/27
....
3,849
3,826
L2416933.UP.FTS.B,
11.86%,
1/12/27
....
6,255
6,218
L2414313.UP.FTS.B,
12.04%,
1/12/27
....
9,625
9,568
L2419136.UP.FTS.B,
12.23%,
1/12/27
....
6,548
6,509
L2418802.UP.FTS.B,
12.3%,
1/12/27
....
11,574
11,517
L2415035.UP.FTS.B,
12.36%,
1/12/27
....
11,601
11,545
FW2418250.UP.FTS.B,
12.6%,
1/12/27
...
9,630
9,573
L2415490.UP.FTS.B,
12.71%,
1/12/27
....
15,207
15,116
FW2415223.UP.FTS.B,
12.84%,
1/12/27
..
3,853
3,830
L2418046.UP.FTS.B,
12.84%,
1/12/27
....
3,853
3,830
L2419353.UP.FTS.B,
12.95%,
1/12/27
....
31,406
31,220
L2418370.UP.FTS.B,
13.09%,
1/12/27
....
20,000
2,915
L2416405.UP.FTS.B,
13.12%,
1/12/27
....
4,818
4,789
L2418973.UP.FTS.B,
13.17%,
1/12/27
....
20,235
20,116
L2419419.UP.FTS.B,
13.25%,
1/12/27
....
6,745
6,706
FW2414406.UP.FTS.B,
13.28%,
1/12/27
..
24,682
6,244
L2419424.UP.FTS.B,
13.54%,
1/12/27
....
11,087
10,993
L2414757.UP.FTS.B,
13.72%,
1/12/27
....
10,627
10,560
L2419716.UP.FTS.B,
13.82%,
1/12/27
....
9,159
9,106
L2418679.UP.FTS.B,
13.97%,
1/12/27
....
11,379
11,312
L2417332.UP.FTS.B,
14.16%,
1/12/27
....
250
247
FW2417958.UP.FTS.B,
14.2%,
1/12/27
...
8,413
8,373
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
198
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2414553.UP.FTS.B,
14.38%,
1/12/27
....
$
19,659
$
19,543
L2416143.UP.FTS.B,
14.39%,
1/12/27
....
1,929
1,918
L2417256.UP.FTS.B,
14.46%,
1/12/27
....
30,678
30,501
L2418826.UP.FTS.B,
14.49%,
1/12/27
....
6,934
6,889
L2416103.UP.FTS.B,
14.61%,
1/12/27
....
9,649
9,593
L2419563.UP.FTS.B,
14.64%,
1/12/27
....
28,772
28,605
L2419336.UP.FTS.B,
14.72%,
1/12/27
....
21,229
21,106
L2416456.UP.FTS.B,
14.82%,
1/12/27
....
4,825
4,797
L2420324.UP.FTS.B,
14.82%,
1/12/27
....
6,755
6,716
FW2417528.UP.FTS.B,
14.86%,
1/12/27
..
4,825
4,798
L2407266.UP.FTS.B,
14.91%,
1/12/27
....
33,783
33,588
L2419366.UP.FTS.B,
14.95%,
1/12/27
....
5,791
5,758
FW2414824.UP.FTS.B,
15.13%,
1/12/27
..
33,786
33,592
L2418818.UP.FTS.B,
15.34%,
1/12/27
....
6,725
6,686
FW2415026.UP.FTS.B,
15.47%,
1/12/27
..
4,828
4,784
FW2420218.UP.FTS.B,
15.49%,
1/12/27
..
5,765
5,731
L2418960.UP.FTS.B,
15.54%,
1/12/27
....
19,313
19,138
L2418555.UP.FTS.B,
15.62%,
1/12/27
....
15,501
15,429
FW2417751.UP.FTS.B,
15.65%,
1/12/27
..
3,863
3,841
L2416354.UP.FTS.B,
15.71%,
1/12/27
....
4,834
4,812
L2417088.UP.FTS.B,
15.78%,
1/12/27
....
7,334
7,267
FW2418121.UP.FTS.B,
15.9%,
1/12/27
...
38,695
38,402
L2414253.UP.FTS.B,
16.15%,
1/12/27
....
7,730
7,660
L2416434.UP.FTS.B,
16.25%,
1/12/27
....
10,436
10,342
L2414062.UP.FTS.B,
16.39%,
1/12/27
....
5,122
5,076
L2414473.UP.FTS.B,
16.4%,
1/12/27
....
966
958
L2415142.UP.FTS.B,
16.59%,
1/12/27
....
2,209
2,180
L2420474.UP.FTS.B,
16.75%,
1/12/27
....
14,500
14,419
L2420206.UP.FTS.B,
16.98%,
1/12/27
....
10,636
10,541
L2419121.UP.FTS.B,
17.04%,
1/12/27
....
6,749
6,688
L2416327.UP.FTS.B,
17.17%,
1/12/27
....
24,176
24,041
L2417581.UP.FTS.B,
17.27%,
1/12/27
....
4,255
4,217
L2415513.UP.FTS.B,
17.29%,
1/12/27
....
3,869
3,825
FW2414008.UP.FTS.B,
17.55%,
1/12/27
..
3,132
3,114
FW2417755.UP.FTS.B,
18.05%,
1/12/27
..
16,343
16,195
FW2394068.UP.FTS.B,
18.18%,
1/12/27
..
7,743
7,657
L2419094.UP.FTS.B,
18.31%,
1/12/27
....
4,840
4,797
L2416524.UP.FTS.B,
18.36%,
1/12/27
....
4,835
4,808
L2415786.UP.FTS.B,
18.43%,
1/12/27
....
4,163
4,116
L2415190.UP.FTS.B,
18.58%,
1/12/27
....
4,841
4,787
L2415900.UP.FTS.B,
18.63%,
1/12/27
....
7,262
7,181
L2415554.UP.FTS.B,
19.01%,
1/12/27
....
2,906
2,873
FW2417398.UP.FTS.B,
19.13%,
1/12/27
..
262
259
L2415568.UP.FTS.B,
19.57%,
1/12/27
....
3,420
3,396
FW2420321.UP.FTS.B,
19.58%,
1/12/27
..
2,132
2,108
L2415184.UP.FTS.B,
19.76%,
1/12/27
....
14,537
14,410
FW2415024.UP.FTS.B,
19.94%,
1/12/27
..
8,433
8,365
L2414022.UP.FTS.B,
20.3%,
1/12/27
....
38,783
38,471
FW2414368.UP.FTS.B,
20.45%,
1/12/27
..
2,473
2,451
L2418100.UP.FTS.B,
20.74%,
1/12/27
....
17,555
17,363
L2416765.UP.FTS.B,
21.01%,
1/12/27
....
5,382
5,345
L2418147.UP.FTS.B,
21.2%,
1/12/27
....
2,826
2,793
L2416916.UP.FTS.B,
21.22%,
1/12/27
....
4,831
4,791
L2414344.UP.FTS.B,
21.24%,
1/12/27
....
5,822
5,791
L2416598.UP.FTS.B,
21.42%,
1/12/27
....
7,177
7,116
L2416391.UP.FTS.B,
21.44%,
1/12/27
....
6,847
6,799
L2404728.UP.FTS.B,
21.56%,
1/12/27
....
1,466
1,456
L2414877.UP.FTS.B,
21.7%,
1/12/27
....
5,382
5,345
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2414359.UP.FTS.B,
21.93%,
1/12/27
....
$
1,650
$
1,637
L2389418.UP.FTS.B,
22.12%,
1/12/27
....
5,845
5,791
L2415810.UP.FTS.B,
22.13%,
1/12/27
....
4,855
4,816
L2415799.UP.FTS.B,
22.22%,
1/12/27
....
4,836
4,797
FW2408502.UP.FTS.B,
22.28%,
1/12/27
..
6,215
6,166
FW2419008.UP.FTS.B,
22.47%,
1/12/27
..
3,322
3,292
L2418697.UP.FTS.B,
22.86%,
1/12/27
....
4,372
4,324
L2413978.UP.FTS.B,
23.4%,
1/12/27
....
1,264
1,254
L2416737.UP.FTS.B,
23.4%,
1/12/27
....
2,624
2,604
L2417908.UP.FTS.B,
23.41%,
1/12/27
....
3,752
3,716
FW2416362.UP.FTS.B,
23.42%,
1/12/27
..
4,860
4,821
L2409743.UP.FTS.B,
23.49%,
1/12/27
....
10,303
10,251
L2418647.UP.FTS.B,
23.67%,
1/12/27
....
10,537
10,451
L2416109.UP.FTS.B,
23.75%,
1/12/27
....
11,785
11,685
FW2418430.UP.FTS.B,
23.78%,
1/12/27
..
3,097
3,061
FW2414282.UP.FTS.B,
23.79%,
1/12/27
..
1,944
1,929
FW2415097.UP.FTS.B,
23.87%,
1/12/27
..
2,868
2,843
L2410860.UP.FTS.B,
23.88%,
1/12/27
....
6,162
6,103
L2417738.UP.FTS.B,
23.9%,
1/12/27
....
9,811
5,864
FW2414049.UP.FTS.B,
23.97%,
1/12/27
..
6,806
6,753
L2417411.UP.FTS.B,
24%,
1/12/27
......
9,529
9,454
FW2414632.UP.FTS.B,
24.07%,
1/12/27
..
976
969
L2415306.UP.FTS.B,
24.21%,
1/12/27
....
10,503
10,421
L2418756.UP.FTS.B,
24.44%,
1/12/27
....
29,016
28,779
L2416850.UP.FTS.B,
24.48%,
1/12/27
....
24,706
24,513
L2414849.UP.FTS.B,
24.57%,
1/12/27
....
3,288
3,261
L2417607.UP.FTS.B,
24.68%,
1/12/27
....
5,919
5,857
L2416551.UP.FTS.B,
24.77%,
1/12/27
....
6,422
6,373
FW2415034.UP.FTS.B,
24.95%,
1/12/27
..
5,306
5,262
L2416370.UP.FTS.B,
25.03%,
1/12/27
....
14,596
14,483
L2414219.UP.FTS.B,
25.05%,
1/12/27
....
5,705
3,415
L2415025.UP.FTS.B,
25.05%,
1/12/27
....
3,308
3,283
L2416425.UP.FTS.B,
25.07%,
1/12/27
....
1,397
1,379
L2416166.UP.FTS.B,
25.14%,
1/12/27
....
3,503
3,476
L2415797.UP.FTS.B,
25.15%,
1/12/27
....
1,752
1,738
FW2415852.UP.FTS.B,
25.19%,
1/12/27
..
8,759
8,691
L2415512.UP.FTS.B,
25.19%,
1/12/27
....
9,961
5,764
L2420285.UP.FTS.B,
25.25%,
1/12/27
....
2,676
2,652
L2420169.UP.FTS.B,
25.29%,
1/12/27
....
3,212
3,187
L2418700.UP.FTS.B,
25.3%,
1/12/27
....
2,044
2,028
FW2414825.UP.FTS.B,
25.31%,
1/12/27
..
4,866
4,829
L2414206.UP.FTS.B,
25.31%,
1/12/27
....
1,100
163
L2414994.UP.FTS.B,
25.32%,
1/12/27
....
2,896
2,872
L2415542.UP.FTS.B,
25.35%,
1/12/27
....
1,473
881
L2411740.UP.FTS.B,
25.36%,
1/12/27
....
1,557
1,545
L2419040.UP.FTS.B,
25.37%,
1/12/27
....
1,265
1,255
FW2416291.UP.FTS.B,
25.38%,
1/12/27
..
15,832
15,700
L2418717.UP.FTS.B,
25.38%,
1/12/27
....
3,337
3,315
FW2414842.UP.FTS.B,
25.41%,
1/12/27
..
973
966
L2414777.UP.FTS.B,
25.43%,
1/12/27
....
1,355
1,344
L2416664.UP.FTS.B,
25.43%,
1/12/27
....
1,473
1,460
L2417967.UP.FTS.B,
25.45%,
1/12/27
....
5,840
5,795
L2415936.UP.FTS.B,
25.47%,
1/12/27
....
3,928
2,351
L2418124.UP.FTS.B,
25.47%,
1/12/27
....
22,336
22,214
L2417114.UP.FTS.B,
25.49%,
1/12/27
....
1,849
1,835
L2418684.UP.FTS.B,
25.49%,
1/12/27
....
2,676
1,604
L2416550.UP.FTS.B,
25.5%,
1/12/27
....
2,823
2,793
L2415536.UP.FTS.B,
25.54%,
1/12/27
....
48,671
48,265
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
199
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2414671.UP.FTS.B,
25.55%,
1/12/27
..
$
10,000
$
2,909
FW2419476.UP.FTS.B,
25.59%,
1/12/27
..
3,385
3,358
FW2419758.UP.FTS.B,
25.64%,
1/12/27
..
4,876
4,842
FW2415078.UP.FTS.B,
25.67%,
1/12/27
..
3,869
3,838
FW2418617.UP.FTS.B,
25.69%,
1/12/27
..
12,656
12,558
L2418539.UP.FTS.B,
25.72%,
1/12/27
....
4,827
4,787
FW2416204.UP.FTS.B,
25.74%,
1/12/27
..
11,782
11,705
L2415253.UP.FTS.B,
25.75%,
1/12/27
....
7,107
7,052
FW2418174.UP.FTS.B,
25.89%,
1/12/27
..
9,692
9,615
L2413654.UP.FTS.B,
25.91%,
1/12/27
....
5,453
5,395
FW2415651.UP.FTS.B,
26.29%,
1/12/27
..
15,535
15,368
L2414249.UP.FTS.B,
26.35%,
1/12/27
....
3,896
3,866
FW2414970.UP.FTS.B,
26.42%,
1/12/27
..
9,740
9,666
FW2419574.UP.FTS.B,
26.43%,
1/12/27
..
18,831
18,676
FW2415609.UP.FTS.B,
26.58%,
1/12/27
..
1,851
1,837
FW2415712.UP.FTS.B,
26.64%,
1/12/27
..
1,948
1,933
FW2418082.UP.FTS.B,
26.69%,
1/12/27
..
9,742
9,639
FW2415999.UP.FTS.B,
26.93%,
1/12/27
..
8,964
8,896
FW2420083.UP.FTS.B,
27.39%,
1/12/27
..
48,734
48,363
FW2417312.UP.FTS.B,
27.53%,
1/12/27
..
2,924
2,902
L2414422.UP.FTS.B,
27.95%,
1/12/27
....
2,828
2,806
FW2416040.UP.FTS.B,
27.97%,
1/12/27
..
6,969
6,910
FW2414923.UP.FTS.B,
28.06%,
1/12/27
..
5,986
3,600
FW2411493.UP.FTS.B,
28.18%,
1/12/27
..
14,156
14,028
FW2418131.UP.FTS.B,
28.24%,
1/12/27
..
14,628
14,518
FW2417708.UP.FTS.B,
28.27%,
1/12/27
..
9,752
9,679
FW2414721.UP.FTS.B,
28.43%,
1/12/27
..
5,755
5,711
FW2414646.UP.FTS.B,
28.47%,
1/12/27
..
909
896
FW2418727.UP.FTS.B,
28.6%,
1/12/27
...
5,853
5,809
L2417119.UP.FTS.B,
28.65%,
1/12/27
....
8,992
8,918
FW2415920.UP.FTS.B,
28.81%,
1/12/27
..
11,710
11,622
FW2418008.UP.FTS.B,
28.88%,
1/12/27
..
1,659
1,646
FW2416839.UP.FTS.B,
29.17%,
1/12/27
..
6,000
1,763
FW2417123.UP.FTS.B,
29.19%,
1/12/27
..
15,894
15,767
FW2415652.UP.FTS.B,
29.37%,
1/12/27
..
13,663
13,561
FW2419252.UP.FTS.B,
29.51%,
1/12/27
..
2,342
2,325
FW2416858.UP.FTS.B,
29.58%,
1/12/27
..
5,016
3,014
FW2418306.UP.FTS.B,
29.61%,
1/12/27
..
6,833
6,782
FW2416828.UP.FTS.B,
29.67%,
1/12/27
..
865
853
FW2417889.UP.FTS.B,
30.34%,
1/12/27
..
2,761
2,747
FW2412114.UP.FTS.B,
30.39%,
1/12/27
..
4,492
4,459
FW2414298.UP.FTS.B,
30.41%,
1/12/27
..
3,906
3,877
FW2415348.UP.FTS.B,
30.45%,
1/12/27
..
21,191
21,026
FW2417338.UP.FTS.B,
30.54%,
1/12/27
..
1,428
1,416
FW2419466.UP.FTS.B,
30.59%,
1/12/27
..
5,274
5,235
FW2414026.UP.FTS.B,
30.61%,
1/12/27
..
1,081
1,074
FW2418795.UP.FTS.B,
30.61%,
1/12/27
..
3,476
2,094
FW2412307.UP.FTS.B,
30.74%,
1/12/27
..
4,215
2,535
FW2415122.UP.FTS.B,
30.76%,
1/12/27
..
2,247
2,230
FW2413399.UP.FTS.B,
30.8%,
1/12/27
...
1,752
1,739
FW2412961.UP.FTS.B,
30.81%,
1/12/27
..
1,751
1,738
FW2417562.UP.FTS.B,
30.84%,
1/12/27
..
977
970
FW2418392.UP.FTS.B,
30.87%,
1/12/27
..
2,135
2,119
FW2415982.UP.FTS.B,
30.89%,
1/12/27
..
2,300
386
FW2418950.UP.FTS.B,
30.94%,
1/12/27
..
2,164
2,137
FW2419318.UP.FTS.B,
30.96%,
1/12/27
..
1,000
147
FW2413630.UP.FTS.B,
30.97%,
1/12/27
..
1,384
1,377
FW2418092.UP.FTS.B,
30.98%,
1/12/27
..
1,368
1,358
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2416140.UP.FTS.B,
30.99%,
1/12/27
..
$
2,149
$
2,133
FW2415090.UP.FTS.B,
31%,
1/12/27
....
18,562
18,425
FW2417415.UP.FTS.B,
31.03%,
1/12/27
..
1,759
1,746
FW2415567.UP.FTS.B,
31.06%,
1/12/27
..
1,270
1,261
FW2420487.UP.FTS.B,
31.06%,
1/12/27
..
1,887
1,870
FW2415692.UP.FTS.B,
31.1%,
1/12/27
...
8,695
8,631
FW2415518.UP.FTS.B,
31.11%,
1/12/27
..
5,764
5,722
FW2417950.UP.FTS.B,
31.11%,
1/12/27
..
977
970
FW2414984.UP.FTS.B,
31.12%,
1/12/27
..
3,713
3,685
FW2418991.UP.FTS.B,
31.12%,
1/12/27
..
4,933
4,893
FW2419702.UP.FTS.B,
31.14%,
1/12/27
..
2,052
2,037
FW2410767.UP.FTS.B,
31.15%,
1/12/27
..
1,172
1,164
FW2415964.UP.FTS.B,
31.16%,
1/12/27
..
1,259
1,248
FW2417489.UP.FTS.B,
31.18%,
1/12/27
..
1,466
1,455
FW2416377.UP.FTS.B,
31.22%,
1/12/27
..
4,788
4,752
FW2419575.UP.FTS.B,
31.24%,
1/12/27
..
1,943
1,927
FW2411958.UP.FTS.B,
31.91%,
1/12/27
..
10,264
10,188
FW2420156.UP.FTS.B,
31.98%,
1/12/27
..
2,721
2,700
FW2402573.UP.FTS.B,
32.37%,
1/12/27
..
11,372
11,299
FW2416032.UP.FTS.B,
32.75%,
1/12/27
..
19,467
19,325
FW2414360.UP.FTS.B,
33.08%,
1/12/27
..
2,250
2,233
FW2419527.UP.FTS.B,
33.12%,
1/12/27
..
1,379
831
FW2414351.UP.FTS.B,
33.36%,
1/12/27
..
50,000
7,318
FW2414624.UP.FTS.B,
33.41%,
1/12/27
..
2,806
2,784
L1710099.UP.FTS.B,
16.39%,
2/14/27
....
11,333
11,198
FW1712574.UP.FTS.B,
28.34%,
2/14/27
..
4,749
4,698
L2632095.UP.FTS.B,
5.13%,
2/15/27
....
9,704
9,685
L2632551.UP.FTS.B,
5.37%,
2/15/27
....
11,646
11,624
L2632779.UP.FTS.B,
5.63%,
2/15/27
....
6,795
6,782
L2633842.UP.FTS.B,
6.31%,
2/15/27
....
19,457
19,429
L2633588.UP.FTS.B,
6.56%,
2/15/27
....
32,054
31,992
L2631314.UP.FTS.B,
6.7%,
2/15/27
.....
20,400
20,361
L2633374.UP.FTS.B,
7.21%,
2/15/27
....
18,463
18,428
L2633603.UP.FTS.B,
8.38%,
2/15/27
....
16,510
16,453
FW2637564.UP.FTS.B,
8.54%,
2/15/27
...
13,520
13,473
FW2631935.UP.FTS.B,
8.55%,
2/15/27
...
36,429
36,335
L2630774.UP.FTS.B,
8.69%,
2/15/27
....
3,891
3,883
FW2634707.UP.FTS.B,
9.24%,
2/15/27
...
8,199
8,169
L2635638.UP.FTS.B,
9.41%,
2/15/27
....
9,531
9,497
L2631278.UP.FTS.B,
9.42%,
2/15/27
....
4,866
4,849
FW2633029.UP.FTS.B,
9.57%,
2/15/27
...
1,460
1,455
FW2636440.UP.FTS.B,
9.62%,
2/15/27
...
6,335
6,319
FW2633295.UP.FTS.B,
9.71%,
2/15/27
...
18,007
17,945
FW2635362.UP.FTS.B,
9.75%,
2/15/27
...
11,681
11,641
L2633022.UP.FTS.B,
9.86%,
2/15/27
....
14,585
14,534
FW2635247.UP.FTS.B,
10.37%,
2/15/27
..
8,347
8,303
L2632143.UP.FTS.B,
10.83%,
2/15/27
....
6,050
6,027
FW2637614.UP.FTS.B,
11.51%,
2/15/27
..
12,856
12,783
L2589493.UP.FTS.B,
11.56%,
2/15/27
....
15,592
15,509
L2637309.UP.FTS.B,
11.72%,
2/15/27
....
48,730
48,472
L2632232.UP.FTS.B,
11.83%,
2/15/27
....
9,644
9,591
L2633836.UP.FTS.B,
12%,
2/15/27
......
10,333
10,278
FW2636201.UP.FTS.B,
12.12%,
2/15/27
..
6,824
6,788
L2630147.UP.FTS.B,
12.15%,
2/15/27
....
38,995
38,787
FW2637452.UP.FTS.B,
12.19%,
2/15/27
..
5,264
5,236
L2635861.UP.FTS.B,
12.41%,
2/15/27
....
8,288
8,244
FW2637081.UP.FTS.B,
12.56%,
2/15/27
..
20,770
20,659
L2636245.UP.FTS.B,
12.68%,
2/15/27
....
39,007
38,799
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
200
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2631815.UP.FTS.B,
13.01%,
2/15/27
....
$
5,859
$
5,835
L2628202.UP.FTS.B,
13.1%,
2/15/27
....
6,317
6,282
L2637042.UP.FTS.B,
13.14%,
2/15/27
....
7,804
7,762
L2631332.UP.FTS.B,
13.22%,
2/15/27
....
4,877
4,851
FW2633237.UP.FTS.B,
13.24%,
2/15/27
..
3,902
3,881
L2631964.UP.FTS.B,
14%,
2/15/27
......
7,320
7,280
FW2635266.UP.FTS.B,
14.29%,
2/15/27
..
9,760
9,708
L2632724.UP.FTS.B,
14.48%,
2/15/27
....
5,249
4,962
FW2634262.UP.FTS.B,
14.51%,
2/15/27
..
15,620
15,536
FW2635512.UP.FTS.B,
14.58%,
2/15/27
..
17,580
17,486
L2637603.UP.FTS.B,
14.83%,
2/15/27
....
6,225
6,191
FW2631558.UP.FTS.B,
15.18%,
2/15/27
..
14,649
14,571
L2632505.UP.FTS.B,
15.26%,
2/15/27
....
9,767
9,714
L2635221.UP.FTS.B,
15.45%,
2/15/27
....
7,228
7,189
FW2633986.UP.FTS.B,
15.46%,
2/15/27
..
24,202
22,843
FW2631951.UP.FTS.B,
15.91%,
2/15/27
..
8,542
8,492
FW2634727.UP.FTS.B,
16.18%,
2/15/27
..
6,449
6,398
L2636525.UP.FTS.B,
16.23%,
2/15/27
....
13,509
13,431
L2635424.UP.FTS.B,
16.37%,
2/15/27
....
39,091
38,782
FW2633906.UP.FTS.B,
16.65%,
2/15/27
..
2,150
2,133
L2610013.UP.FTS.B,
16.95%,
2/15/27
....
3,953
3,737
L2630011.UP.FTS.B,
16.96%,
2/15/27
....
4,888
4,862
L2631718.UP.FTS.B,
16.99%,
2/15/27
....
4,888
4,849
L2636076.UP.FTS.B,
17.15%,
2/15/27
....
7,333
7,275
L2635318.UP.FTS.B,
17.22%,
2/15/27
....
8,448
8,401
FW2635945.UP.FTS.B,
17.32%,
2/15/27
..
5,377
5,326
L2633537.UP.FTS.B,
17.39%,
2/15/27
....
9,778
9,701
FW2635975.UP.FTS.B,
18.14%,
2/15/27
..
14,869
14,751
FW2635531.UP.FTS.B,
18.53%,
2/15/27
..
11,545
11,454
FW2632933.UP.FTS.B,
18.59%,
2/15/27
..
9,784
9,707
FW2632544.UP.FTS.B,
18.69%,
2/15/27
..
24,462
24,227
FW2634470.UP.FTS.B,
18.69%,
2/15/27
..
4,943
4,679
L2610892.UP.FTS.B,
18.7%,
2/15/27
....
14,528
14,385
L2634353.UP.FTS.B,
19.06%,
2/15/27
....
9,706
9,610
L2637566.UP.FTS.B,
19.16%,
2/15/27
....
414
409
FW2634297.UP.FTS.B,
19.29%,
2/15/27
..
12,920
12,817
L2632076.UP.FTS.B,
19.31%,
2/15/27
....
7,899
7,856
FW2629363.UP.FTS.B,
19.37%,
2/15/27
..
5,828
5,769
L2635892.UP.FTS.B,
19.39%,
2/15/27
....
979
971
L2634129.UP.FTS.B,
19.51%,
2/15/27
....
9,752
9,673
L2633453.UP.FTS.B,
19.72%,
2/15/27
....
14,685
14,568
L2632256.UP.FTS.B,
19.82%,
2/15/27
....
979
971
FW2634280.UP.FTS.B,
19.89%,
2/15/27
..
26,035
25,848
L2632250.UP.FTS.B,
19.92%,
2/15/27
....
6,000
1,708
L2634883.UP.FTS.B,
19.98%,
2/15/27
....
7,864
7,808
L2637386.UP.FTS.B,
20.16%,
2/15/27
....
7,344
7,273
L2635069.UP.FTS.B,
20.19%,
2/15/27
....
12,497
12,424
L2635013.UP.FTS.B,
20.25%,
2/15/27
....
5,933
5,617
L2633648.UP.FTS.B,
20.29%,
2/15/27
....
10,023
9,940
L2636615.UP.FTS.B,
20.46%,
2/15/27
....
2,261
2,235
FW2632574.UP.FTS.B,
20.97%,
2/15/27
..
15,115
14,943
L2632212.UP.FTS.B,
21.09%,
2/15/27
....
3,984
3,783
FW2637242.UP.FTS.B,
21.26%,
2/15/27
..
8,818
8,748
L2630116.UP.FTS.B,
21.26%,
2/15/27
....
5,879
5,822
L2637476.UP.FTS.B,
21.48%,
2/15/27
....
10,583
10,480
L2626721.UP.FTS.B,
21.64%,
2/15/27
....
4,758
4,708
L2633936.UP.FTS.B,
21.75%,
2/15/27
....
3,234
3,209
FW2631142.UP.FTS.B,
21.84%,
2/15/27
..
3,136
3,112
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2636132.UP.FTS.B,
21.91%,
2/15/27
....
$
9,801
$
9,726
FW2632067.UP.FTS.B,
22.05%,
2/15/27
..
3,235
3,203
FW2634641.UP.FTS.B,
22.06%,
2/15/27
..
13,722
13,617
L2636088.UP.FTS.B,
22.06%,
2/15/27
....
1,448
1,431
L2636740.UP.FTS.B,
22.15%,
2/15/27
....
980
973
L2633500.UP.FTS.B,
22.28%,
2/15/27
....
4,932
4,901
FW2635428.UP.FTS.B,
22.3%,
2/15/27
...
16,076
15,953
L2633766.UP.FTS.B,
22.63%,
2/15/27
....
5,392
5,351
L2631928.UP.FTS.B,
22.74%,
2/15/27
....
7,354
7,297
L2636620.UP.FTS.B,
22.94%,
2/15/27
....
7,844
7,784
FW2632621.UP.FTS.B,
22.95%,
2/15/27
..
5,295
5,254
FW2632848.UP.FTS.B,
22.95%,
2/15/27
..
5,393
5,352
L2635474.UP.FTS.B,
23.01%,
2/15/27
....
7,845
7,784
FW2636073.UP.FTS.B,
23.1%,
2/15/27
...
4,903
4,865
L2632041.UP.FTS.B,
23.26%,
2/15/27
....
11,769
11,654
L2631781.UP.FTS.B,
23.47%,
2/15/27
....
2,946
2,833
FW2633249.UP.FTS.B,
23.49%,
2/15/27
..
5,394
5,353
FW2631473.UP.FTS.B,
23.57%,
2/15/27
..
1,079
1,071
FW2634082.UP.FTS.B,
24.01%,
2/15/27
..
5,886
5,841
L2635262.UP.FTS.B,
24.04%,
2/15/27
....
8,830
8,761
L2633254.UP.FTS.B,
24.29%,
2/15/27
....
21,390
21,181
FW2632068.UP.FTS.B,
24.31%,
2/15/27
..
1,191
1,177
L2632195.UP.FTS.B,
24.38%,
2/15/27
....
1,846
1,827
FW2628626.UP.FTS.B,
24.39%,
2/15/27
..
9,917
9,432
FW2632915.UP.FTS.B,
24.46%,
2/15/27
..
14,915
14,800
L2629665.UP.FTS.B,
24.47%,
2/15/27
....
6,917
6,873
FW2634252.UP.FTS.B,
24.49%,
2/15/27
..
6,280
6,231
L2633167.UP.FTS.B,
24.54%,
2/15/27
....
5,420
5,381
L2636078.UP.FTS.B,
24.6%,
2/15/27
....
14,818
14,703
FW2632893.UP.FTS.B,
24.67%,
2/15/27
..
21,393
21,227
FW2636783.UP.FTS.B,
24.67%,
2/15/27
..
10,697
10,614
FW2632707.UP.FTS.B,
24.74%,
2/15/27
..
5,398
5,356
L2631848.UP.FTS.B,
24.9%,
2/15/27
....
5,889
5,843
L2627623.UP.FTS.B,
24.92%,
2/15/27
....
4,711
4,674
L2634268.UP.FTS.B,
25.05%,
2/15/27
....
2,356
2,337
FW2635941.UP.FTS.B,
25.09%,
2/15/27
..
5,398
5,356
L2637318.UP.FTS.B,
25.13%,
2/15/27
....
3,239
3,207
L2632709.UP.FTS.B,
25.19%,
2/15/27
....
1,669
1,656
L2631220.UP.FTS.B,
25.21%,
2/15/27
....
2,945
2,922
L2635044.UP.FTS.B,
25.22%,
2/15/27
....
1,145
1,135
L2634635.UP.FTS.B,
25.23%,
2/15/27
....
7,800
7,736
L2633582.UP.FTS.B,
25.26%,
2/15/27
....
1,963
1,948
L2632822.UP.FTS.B,
25.28%,
2/15/27
....
1,472
1,461
L2634539.UP.FTS.B,
25.3%,
2/15/27
....
1,865
1,851
L2630368.UP.FTS.B,
25.31%,
2/15/27
....
2,847
2,825
L2632154.UP.FTS.B,
25.31%,
2/15/27
....
23,068
22,889
FW2631380.UP.FTS.B,
25.37%,
2/15/27
..
17,643
16,910
L2633915.UP.FTS.B,
25.37%,
2/15/27
....
1,669
1,653
L2633587.UP.FTS.B,
25.38%,
2/15/27
....
1,669
1,656
L2637368.UP.FTS.B,
25.39%,
2/15/27
....
1,963
1,944
L2635003.UP.FTS.B,
25.4%,
2/15/27
....
10,209
10,130
L2636370.UP.FTS.B,
25.4%,
2/15/27
....
2,945
2,922
L2631133.UP.FTS.B,
25.41%,
2/15/27
....
1,473
1,458
L2631893.UP.FTS.B,
25.41%,
2/15/27
....
3,534
3,507
L2636222.UP.FTS.B,
25.41%,
2/15/27
....
19,633
19,481
L2631372.UP.FTS.B,
25.42%,
2/15/27
....
5,890
5,833
L2631727.UP.FTS.B,
25.43%,
2/15/27
....
12,860
12,760
L2605748.UP.FTS.B,
25.45%,
2/15/27
....
1,767
1,753
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
201
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2631820.UP.FTS.B,
25.45%,
2/15/27
....
$
8,933
$
8,864
L2634591.UP.FTS.B,
25.45%,
2/15/27
....
1,080
1,071
L2632552.UP.FTS.B,
25.56%,
2/15/27
....
3,240
3,215
L2633900.UP.FTS.B,
25.57%,
2/15/27
....
4,123
4,091
L2629160.UP.FTS.B,
25.61%,
2/15/27
....
7,363
7,306
FW2631141.UP.FTS.B,
25.72%,
2/15/27
..
12,862
12,761
FW2632953.UP.FTS.B,
25.74%,
2/15/27
..
5,302
5,261
L2634677.UP.FTS.B,
25.78%,
2/15/27
....
3,927
3,897
FW2635210.UP.FTS.B,
25.81%,
2/15/27
..
5,891
5,845
L2636195.UP.FTS.B,
25.92%,
2/15/27
....
14,728
14,614
FW2634765.UP.FTS.B,
26.22%,
2/15/27
..
17,676
17,538
L2635199.UP.FTS.B,
26.23%,
2/15/27
....
6,187
6,138
FW2635628.UP.FTS.B,
26.36%,
2/15/27
..
2,750
2,723
FW2634760.UP.FTS.B,
26.38%,
2/15/27
..
5,794
5,749
L2634070.UP.FTS.B,
26.45%,
2/15/27
....
24,455
24,264
FW2632882.UP.FTS.B,
26.51%,
2/15/27
..
2,161
2,144
L2635219.UP.FTS.B,
26.59%,
2/15/27
....
4,125
4,093
FW2637086.UP.FTS.B,
26.68%,
2/15/27
..
3,241
3,216
FW2632673.UP.FTS.B,
27.01%,
2/15/27
..
2,143
2,125
FW2637233.UP.FTS.B,
27.15%,
2/15/27
..
17,683
17,545
FW2631843.UP.FTS.B,
27.26%,
2/15/27
..
4,814
4,776
FW2637044.UP.FTS.B,
27.28%,
2/15/27
..
2,077
2,057
FW2633233.UP.FTS.B,
27.31%,
2/15/27
..
8,449
8,383
L2631102.UP.FTS.B,
27.44%,
2/15/27
....
3,236
3,206
FW2634310.UP.FTS.B,
27.59%,
2/15/27
..
7,271
7,214
FW2632247.UP.FTS.B,
27.6%,
2/15/27
...
10,710
10,626
FW2632183.UP.FTS.B,
27.72%,
2/15/27
..
6,879
6,825
FW2636178.UP.FTS.B,
28%,
2/15/27
....
5,897
5,850
FW2632116.UP.FTS.B,
28.1%,
2/15/27
...
9,828
9,751
FW2634627.UP.FTS.B,
28.11%,
2/15/27
..
5,897
5,850
FW2635226.UP.FTS.B,
28.22%,
2/15/27
..
2,162
2,145
FW2634686.UP.FTS.B,
28.47%,
2/15/27
..
5,893
5,846
FW2587827.UP.FTS.B,
28.49%,
2/15/27
..
11,775
11,681
FW2633732.UP.FTS.B,
28.73%,
2/15/27
..
7,373
7,315
FW2635435.UP.FTS.B,
28.75%,
2/15/27
..
1,916
1,899
FW2634423.UP.FTS.B,
28.99%,
2/15/27
..
19,663
19,508
FW2636790.UP.FTS.B,
29.27%,
2/15/27
..
21,600
20,556
FW2632227.UP.FTS.B,
29.31%,
2/15/27
..
19,666
19,511
FW2634087.UP.FTS.B,
29.37%,
2/15/27
..
5,829
5,778
FW2636066.UP.FTS.B,
29.41%,
2/15/27
..
3,323
3,295
FW2633754.UP.FTS.B,
29.46%,
2/15/27
..
29,500
29,267
FW2600453.UP.FTS.B,
29.54%,
2/15/27
..
3,933
3,902
FW2635622.UP.FTS.B,
29.54%,
2/15/27
..
5,409
5,366
FW2632506.UP.FTS.B,
29.8%,
2/15/27
...
5,596
5,551
FW2636841.UP.FTS.B,
30.04%,
2/15/27
..
26,753
26,541
FW2633450.UP.FTS.B,
30.19%,
2/15/27
..
1,672
1,659
FW2632167.UP.FTS.B,
30.21%,
2/15/27
..
984
976
FW2633782.UP.FTS.B,
30.25%,
2/15/27
..
9,640
9,563
FW2631008.UP.FTS.B,
30.31%,
2/15/27
..
973
965
FW2636372.UP.FTS.B,
30.35%,
2/15/27
..
5,902
5,855
FW2632070.UP.FTS.B,
30.58%,
2/15/27
..
3,150
3,125
FW2634209.UP.FTS.B,
30.68%,
2/15/27
..
1,000
304
FW2631994.UP.FTS.B,
30.71%,
2/15/27
..
5,155
5,110
FW2631249.UP.FTS.B,
30.81%,
2/15/27
..
1,177
1,164
FW2631494.UP.FTS.B,
30.85%,
2/15/27
..
4,427
4,392
FW2635126.UP.FTS.B,
30.85%,
2/15/27
..
1,771
1,757
FW2634304.UP.FTS.B,
30.86%,
2/15/27
..
1,082
1,072
FW2629864.UP.FTS.B,
30.9%,
2/15/27
...
2,263
2,245
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2633675.UP.FTS.B,
30.91%,
2/15/27
..
$
1,082
$
1,074
FW2634617.UP.FTS.B,
30.93%,
2/15/27
..
3,640
3,612
FW2631125.UP.FTS.B,
30.96%,
2/15/27
..
984
976
FW2631968.UP.FTS.B,
30.98%,
2/15/27
..
6,997
6,926
FW2636445.UP.FTS.B,
31%,
2/15/27
....
1,771
1,757
FW2631988.UP.FTS.B,
31.03%,
2/15/27
..
2,368
2,352
FW2635952.UP.FTS.B,
31.06%,
2/15/27
..
1,574
1,562
FW2633314.UP.FTS.B,
31.08%,
2/15/27
..
1,045
1,035
FW2635142.UP.FTS.B,
31.1%,
2/15/27
...
6,100
1,913
FW2635281.UP.FTS.B,
31.1%,
2/15/27
...
5,464
5,197
FW2637419.UP.FTS.B,
31.1%,
2/15/27
...
3,345
3,319
FW2633604.UP.FTS.B,
31.13%,
2/15/27
..
2,558
2,538
FW2635800.UP.FTS.B,
31.13%,
2/15/27
..
5,018
4,978
FW2637089.UP.FTS.B,
31.23%,
2/15/27
..
8,266
8,200
FW2635066.UP.FTS.B,
31.24%,
2/15/27
..
2,571
2,537
FW2633883.UP.FTS.B,
31.33%,
2/15/27
..
3,247
3,222
FW2634457.UP.FTS.B,
31.36%,
2/15/27
..
3,642
3,613
FW2632904.UP.FTS.B,
31.38%,
2/15/27
..
3,641
3,612
FW2632054.UP.FTS.B,
31.53%,
2/15/27
..
4,232
4,198
FW2636781.UP.FTS.B,
31.59%,
2/15/27
..
3,740
3,710
FW2634910.UP.FTS.B,
32.02%,
2/15/27
..
3,445
3,418
FW2633816.UP.FTS.B,
32.24%,
2/15/27
..
20,672
20,507
FW2635681.UP.FTS.B,
32.24%,
2/15/27
..
3,933
3,890
FW2633938.UP.FTS.B,
32.66%,
2/15/27
..
7,700
2,271
FW2631740.UP.FTS.B,
34.39%,
2/15/27
..
3,869
3,844
L2644100.UP.FTS.B,
5.16%,
2/16/27
....
6,183
6,173
L2640422.UP.FTS.B,
7.19%,
2/16/27
....
5,830
5,814
FW2639217.UP.FTS.B,
7.48%,
2/16/27
...
13,121
13,085
L2638196.UP.FTS.B,
7.54%,
2/16/27
....
18,118
18,092
L2642691.UP.FTS.B,
8.69%,
2/16/27
....
32,050
31,964
L2644170.UP.FTS.B,
8.74%,
2/16/27
....
26,751
26,680
L2644467.UP.FTS.B,
8.99%,
2/16/27
....
2,741
2,732
L2641249.UP.FTS.B,
9.09%,
2/16/27
....
14,303
14,265
L2643996.UP.FTS.B,
9.54%,
2/16/27
....
14,599
14,561
FW2640044.UP.FTS.B,
9.77%,
2/16/27
...
5,693
5,677
FW2639996.UP.FTS.B,
9.85%,
2/16/27
...
7,757
7,723
L2639699.UP.FTS.B,
10.02%,
2/16/27
....
48,678
48,553
L2638227.UP.FTS.B,
10.2%,
2/16/27
....
14,605
14,568
L2644692.UP.FTS.B,
10.37%,
2/16/27
....
3,895
3,885
L2628258.UP.FTS.B,
10.4%,
2/16/27
....
15,859
15,790
FW2643555.UP.FTS.B,
10.53%,
2/16/27
..
48,680
48,556
L2639939.UP.FTS.B,
10.73%,
2/16/27
....
14,102
14,040
L2642767.UP.FTS.B,
10.84%,
2/16/27
....
12,566
12,512
L2642462.UP.FTS.B,
10.86%,
2/16/27
....
6,819
6,789
FW2639271.UP.FTS.B,
10.98%,
2/16/27
..
48,708
48,499
FW2636951.UP.FTS.B,
11.21%,
2/16/27
..
15,881
15,813
L2643884.UP.FTS.B,
11.41%,
2/16/27
....
7,308
7,277
L2640107.UP.FTS.B,
11.57%,
2/16/27
....
10,427
10,383
L2642580.UP.FTS.B,
11.66%,
2/16/27
....
3,411
3,397
FW2644262.UP.FTS.B,
11.83%,
2/16/27
..
9,747
9,705
L2642829.UP.FTS.B,
11.96%,
2/16/27
....
20,860
20,771
L2642410.UP.FTS.B,
12.13%,
2/16/27
....
13,418
13,345
L2643133.UP.FTS.B,
12.13%,
2/16/27
....
10,723
10,678
L2640589.UP.FTS.B,
12.31%,
2/16/27
....
48,748
48,543
L2637999.UP.FTS.B,
12.45%,
2/16/27
....
10,909
10,863
L2644043.UP.FTS.B,
12.51%,
2/16/27
....
5,018
4,993
FW2642297.UP.FTS.B,
12.63%,
2/16/27
..
9,361
9,322
FW2641042.UP.FTS.B,
12.73%,
2/16/27
..
1,170
1,165
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
202
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2640270.UP.FTS.B,
13.17%,
2/16/27
..
$
14,632
$
14,571
FW2644450.UP.FTS.B,
13.29%,
2/16/27
..
1,463
1,457
FW2639794.UP.FTS.B,
13.8%,
2/16/27
...
20,492
20,408
L2641626.UP.FTS.B,
13.94%,
2/16/27
....
976
972
L2639543.UP.FTS.B,
14.06%,
2/16/27
....
9,760
9,720
L2643675.UP.FTS.B,
14.14%,
2/16/27
....
3,904
3,888
FW2641444.UP.FTS.B,
14.17%,
2/16/27
..
6,344
6,318
L2643434.UP.FTS.B,
14.29%,
2/16/27
....
9,757
9,717
FW2639288.UP.FTS.B,
14.3%,
2/16/27
...
15,762
15,696
L2640031.UP.FTS.B,
14.45%,
2/16/27
....
9,762
9,722
FW2637881.UP.FTS.B,
14.54%,
2/16/27
..
5,833
5,808
L2637807.UP.FTS.B,
14.59%,
2/16/27
....
14,582
14,522
L2643572.UP.FTS.B,
14.72%,
2/16/27
....
1,953
1,945
L2639037.UP.FTS.B,
14.81%,
2/16/27
....
19,528
19,449
L2641778.UP.FTS.B,
14.87%,
2/16/27
....
43,549
43,373
FW2640160.UP.FTS.B,
14.88%,
2/16/27
..
22,458
22,367
L2641628.UP.FTS.B,
14.9%,
2/16/27
....
11,425
11,378
FW2644643.UP.FTS.B,
15%,
2/16/27
....
4,297
4,279
L2644502.UP.FTS.B,
15.74%,
2/16/27
....
21,006
20,922
L2643245.UP.FTS.B,
15.83%,
2/16/27
....
21,200
21,116
L2642945.UP.FTS.B,
15.91%,
2/16/27
....
1,466
1,460
FW2643582.UP.FTS.B,
16.21%,
2/16/27
..
19,560
19,473
FW2637690.UP.FTS.B,
16.3%,
2/16/27
...
6,349
6,324
FW2643607.UP.FTS.B,
16.31%,
2/16/27
..
48,861
48,550
FW2638305.UP.FTS.B,
16.48%,
2/16/27
..
10,487
10,441
L2641861.UP.FTS.B,
16.53%,
2/16/27
....
20,578
20,426
L2639711.UP.FTS.B,
16.7%,
2/16/27
.....
1,564
1,554
FW2644039.UP.FTS.B,
16.97%,
2/16/27
..
7,329
7,282
L2639647.UP.FTS.B,
17.04%,
2/16/27
....
9,776
9,714
L2640734.UP.FTS.B,
17.15%,
2/16/27
....
48,884
48,575
FW2641664.UP.FTS.B,
17.29%,
2/16/27
..
5,758
5,721
L2643228.UP.FTS.B,
17.64%,
2/16/27
....
4,890
4,859
L2641429.UP.FTS.B,
17.81%,
2/16/27
....
12,714
12,635
FW2643031.UP.FTS.B,
17.82%,
2/16/27
..
37,165
37,022
L2641792.UP.FTS.B,
17.85%,
2/16/27
....
4,890
4,871
FW2641155.UP.FTS.B,
18.14%,
2/16/27
..
5,380
5,338
L2642906.UP.FTS.B,
18.21%,
2/16/27
....
48,937
48,551
L2638277.UP.FTS.B,
18.32%,
2/16/27
....
4,973
4,722
L2643141.UP.FTS.B,
18.53%,
2/16/27
....
21,355
21,214
FW2642517.UP.FTS.B,
18.63%,
2/16/27
..
10,567
10,501
L2640308.UP.FTS.B,
18.76%,
2/16/27
....
34,248
33,979
FW2639528.UP.FTS.B,
18.78%,
2/16/27
..
41,418
41,320
FW2640157.UP.FTS.B,
18.91%,
2/16/27
..
10,403
10,336
L2639156.UP.FTS.B,
18.92%,
2/16/27
....
24,465
24,313
L2607183.UP.FTS.B,
19.09%,
2/16/27
....
19,701
19,622
FW2643386.UP.FTS.B,
19.11%,
2/16/27
..
3,731
3,706
L2641934.UP.FTS.B,
19.33%,
2/16/27
....
14,682
14,591
FW2637954.UP.FTS.B,
19.39%,
2/16/27
..
6,363
6,313
L2640102.UP.FTS.B,
19.59%,
2/16/27
....
25,453
25,296
L2642912.UP.FTS.B,
19.59%,
2/16/27
....
19,481
19,361
L2642762.UP.FTS.B,
19.61%,
2/16/27
....
2,350
2,331
L2640760.UP.FTS.B,
19.65%,
2/16/27
....
4,596
4,560
L2637788.UP.FTS.B,
19.66%,
2/16/27
....
3,231
3,205
L2644725.UP.FTS.B,
19.78%,
2/16/27
....
9,624
9,541
L2643324.UP.FTS.B,
19.84%,
2/16/27
....
46,588
46,273
L2639353.UP.FTS.B,
19.93%,
2/16/27
....
29,473
29,352
FW2639991.UP.FTS.B,
19.94%,
2/16/27
..
2,937
2,914
L2639587.UP.FTS.B,
20.1%,
2/16/27
....
3,917
3,886
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2640938.UP.FTS.B,
20.16%,
2/16/27
..
$
10,674
$
10,613
L2644661.UP.FTS.B,
20.31%,
2/16/27
....
2,330
2,311
L2644267.UP.FTS.B,
20.32%,
2/16/27
....
979
976
L2643431.UP.FTS.B,
20.38%,
2/16/27
....
13,716
13,610
L2631654.UP.FTS.B,
20.62%,
2/16/27
....
21,940
21,815
FW2644103.UP.FTS.B,
20.8%,
2/16/27
...
7,347
7,302
FW2639130.UP.FTS.B,
21.01%,
2/16/27
..
3,919
3,896
L2638809.UP.FTS.B,
21.09%,
2/16/27
....
5,878
5,845
FW2640179.UP.FTS.B,
21.11%,
2/16/27
..
4,325
4,306
FW2642916.UP.FTS.B,
21.2%,
2/16/27
...
14,581
14,462
FW2638739.UP.FTS.B,
21.34%,
2/16/27
..
2,938
2,921
L2640498.UP.FTS.B,
21.39%,
2/16/27
....
9,798
9,743
L2639355.UP.FTS.B,
21.49%,
2/16/27
....
3,430
3,403
FW2641696.UP.FTS.B,
21.58%,
2/16/27
..
3,722
3,697
L2638952.UP.FTS.B,
21.6%,
2/16/27
....
27,928
27,713
FW2640087.UP.FTS.B,
21.67%,
2/16/27
..
20,285
20,171
FW2638136.UP.FTS.B,
21.78%,
2/16/27
..
7,840
7,796
FW2643646.UP.FTS.B,
21.86%,
2/16/27
..
15,779
15,690
FW2644820.UP.FTS.B,
21.87%,
2/16/27
..
6,860
6,822
L2641584.UP.FTS.B,
21.92%,
2/16/27
....
49,004
48,627
L2637535.UP.FTS.B,
21.95%,
2/16/27
....
28,815
28,653
L2641532.UP.FTS.B,
22.02%,
2/16/27
....
6,763
6,725
L2641233.UP.FTS.B,
22.03%,
2/16/27
....
16,858
16,764
FW2641686.UP.FTS.B,
22.07%,
2/16/27
..
3,235
3,210
L2631819.UP.FTS.B,
22.11%,
2/16/27
....
29,405
29,240
L2637903.UP.FTS.B,
22.13%,
2/16/27
....
11,673
11,579
L2640343.UP.FTS.B,
22.15%,
2/16/27
....
2,924
2,906
FW2640578.UP.FTS.B,
22.42%,
2/16/27
..
924
916
L2640051.UP.FTS.B,
22.42%,
2/16/27
....
8,755
8,702
L2640329.UP.FTS.B,
22.77%,
2/16/27
....
4,314
4,290
L2639752.UP.FTS.B,
22.85%,
2/16/27
....
49,026
48,651
L2640849.UP.FTS.B,
22.86%,
2/16/27
....
3,726
3,705
FW2644779.UP.FTS.B,
22.9%,
2/16/27
...
10,296
10,259
FW2643850.UP.FTS.B,
23.05%,
2/16/27
..
14,683
14,599
L2644478.UP.FTS.B,
23.24%,
2/16/27
....
19,614
19,505
FW2641930.UP.FTS.B,
23.25%,
2/16/27
..
10,205
10,128
FW2640017.UP.FTS.B,
23.28%,
2/16/27
..
49,037
48,765
FW2639536.UP.FTS.B,
23.38%,
2/16/27
..
11,437
11,367
L2633805.UP.FTS.B,
23.55%,
2/16/27
....
5,984
5,706
L2636952.UP.FTS.B,
23.58%,
2/16/27
....
9,809
9,754
L2640906.UP.FTS.B,
23.61%,
2/16/27
....
5,910
5,885
FW2639691.UP.FTS.B,
23.69%,
2/16/27
..
17,853
17,754
L2644610.UP.FTS.B,
23.76%,
2/16/27
....
2,284
2,177
L2638997.UP.FTS.B,
23.77%,
2/16/27
....
2,346
2,333
FW2643737.UP.FTS.B,
23.79%,
2/16/27
..
15,643
15,547
L2640669.UP.FTS.B,
23.79%,
2/16/27
....
14,705
14,623
L2643173.UP.FTS.B,
23.83%,
2/16/27
....
4,869
4,830
FW2639280.UP.FTS.B,
23.91%,
2/16/27
..
2,158
2,146
L2641033.UP.FTS.B,
24.08%,
2/16/27
....
1,471
1,462
L2644184.UP.FTS.B,
24.14%,
2/16/27
....
8,702
8,649
FW2638182.UP.FTS.B,
24.2%,
2/16/27
...
4,906
4,877
L2643831.UP.FTS.B,
24.23%,
2/16/27
....
4,415
4,391
FW2641835.UP.FTS.B,
24.33%,
2/16/27
..
9,812
9,738
L2638762.UP.FTS.B,
24.36%,
2/16/27
....
3,244
3,223
L2642186.UP.FTS.B,
24.42%,
2/16/27
....
2,159
2,147
L2638731.UP.FTS.B,
24.44%,
2/16/27
....
3,925
3,903
L2642402.UP.FTS.B,
24.44%,
2/16/27
....
12,756
12,686
FW2643566.UP.FTS.B,
24.68%,
2/16/27
..
3,895
3,872
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
203
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2641976.UP.FTS.B,
24.71%,
2/16/27
..
$
12,954
$
12,883
L2641879.UP.FTS.B,
24.74%,
2/16/27
....
6,000
1,862
L2643906.UP.FTS.B,
24.76%,
2/16/27
....
1,178
1,171
L2637710.UP.FTS.B,
24.83%,
2/16/27
....
4,200
1,228
L2638887.UP.FTS.B,
24.84%,
2/16/27
....
1,963
1,952
L2635905.UP.FTS.B,
24.87%,
2/16/27
....
2,155
2,143
L2639245.UP.FTS.B,
24.92%,
2/16/27
....
2,771
2,638
L2643360.UP.FTS.B,
24.93%,
2/16/27
....
3,239
3,221
L2642616.UP.FTS.B,
24.96%,
2/16/27
....
1,276
1,266
L2642235.UP.FTS.B,
24.97%,
2/16/27
....
1,472
1,464
L2640445.UP.FTS.B,
25.03%,
2/16/27
....
3,141
3,124
FW2642257.UP.FTS.B,
25.15%,
2/16/27
..
9,724
9,665
FW2640811.UP.FTS.B,
25.17%,
2/16/27
..
29,447
29,287
L2638208.UP.FTS.B,
25.18%,
2/16/27
....
2,454
2,441
L2644708.UP.FTS.B,
25.19%,
2/16/27
....
4,515
4,491
L2639167.UP.FTS.B,
25.24%,
2/16/27
....
4,712
4,686
L2640859.UP.FTS.B,
25.24%,
2/16/27
....
4,155
3,955
L2629944.UP.FTS.B,
25.26%,
2/16/27
....
1,178
1,172
L2643848.UP.FTS.B,
25.26%,
2/16/27
....
3,239
3,215
L2639868.UP.FTS.B,
25.27%,
2/16/27
....
1,080
1,074
L2639974.UP.FTS.B,
25.28%,
2/16/27
....
2,572
2,555
L2644756.UP.FTS.B,
25.29%,
2/16/27
....
2,555
2,542
FW2644569.UP.FTS.B,
25.34%,
2/16/27
..
9,899
9,424
L2640772.UP.FTS.B,
25.34%,
2/16/27
....
1,571
1,562
L2640475.UP.FTS.B,
25.37%,
2/16/27
....
3,338
3,320
L2641882.UP.FTS.B,
25.38%,
2/16/27
....
2,609
2,586
L2642246.UP.FTS.B,
25.42%,
2/16/27
....
2,164
2,155
L2637328.UP.FTS.B,
25.43%,
2/16/27
....
5,988
5,956
L2643718.UP.FTS.B,
25.45%,
2/16/27
....
1,374
1,367
L2638486.UP.FTS.B,
25.48%,
2/16/27
....
10,112
10,057
L2643306.UP.FTS.B,
25.49%,
2/16/27
....
18,215
18,114
L2644251.UP.FTS.B,
25.49%,
2/16/27
....
1,178
1,172
L2643938.UP.FTS.B,
25.5%,
2/16/27
....
1,473
1,465
L2643974.UP.FTS.B,
25.5%,
2/16/27
....
3,549
3,534
L2644656.UP.FTS.B,
25.52%,
2/16/27
....
3,829
3,808
L2638794.UP.FTS.B,
25.6%,
2/16/27
....
12,763
12,694
FW2590576.UP.FTS.B,
25.69%,
2/16/27
..
5,445
5,183
L2638678.UP.FTS.B,
25.84%,
2/16/27
....
9,819
9,765
FW2639725.UP.FTS.B,
25.86%,
2/16/27
..
10,604
10,547
FW2642963.UP.FTS.B,
25.88%,
2/16/27
..
4,713
4,688
FW2634599.UP.FTS.B,
26.05%,
2/16/27
..
16,006
15,919
FW2630978.UP.FTS.B,
26.06%,
2/16/27
..
1,080
1,074
FW2641541.UP.FTS.B,
26.14%,
2/16/27
..
1,089
1,034
L2640846.UP.FTS.B,
26.29%,
2/16/27
....
24,551
24,419
FW2639867.UP.FTS.B,
26.3%,
2/16/27
...
1,964
1,954
FW2642156.UP.FTS.B,
26.37%,
2/16/27
..
2,756
2,744
FW2642879.UP.FTS.B,
26.39%,
2/16/27
..
7,857
7,814
FW2640075.UP.FTS.B,
26.63%,
2/16/27
..
1,964
1,954
FW2638344.UP.FTS.B,
26.96%,
2/16/27
..
2,789
2,660
L2640994.UP.FTS.B,
27.05%,
2/16/27
....
19,647
19,542
FW2641067.UP.FTS.B,
27.08%,
2/16/27
..
6,855
6,817
FW2638017.UP.FTS.B,
27.09%,
2/16/27
..
8,449
8,403
FW2640323.UP.FTS.B,
27.2%,
2/16/27
...
6,758
6,720
L2644222.UP.FTS.B,
27.35%,
2/16/27
....
6,583
6,548
FW2636711.UP.FTS.B,
27.4%,
2/16/27
...
9,825
9,773
FW2641807.UP.FTS.B,
27.73%,
2/16/27
..
11,300
11,240
FW2639797.UP.FTS.B,
28.19%,
2/16/27
..
2,752
2,737
FW2644724.UP.FTS.B,
28.24%,
2/16/27
..
49,105
48,842
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2643525.UP.FTS.B,
28.34%,
2/16/27
..
$
11,205
$
11,146
FW2643821.UP.FTS.B,
28.37%,
2/16/27
..
6,389
6,355
FW2644630.UP.FTS.B,
28.55%,
2/16/27
..
9,824
9,771
L2641092.UP.FTS.B,
28.8%,
2/16/27
....
14,746
14,669
FW2644291.UP.FTS.B,
28.88%,
2/16/27
..
5,819
5,783
FW2639053.UP.FTS.B,
29.06%,
2/16/27
..
3,245
3,227
FW2642505.UP.FTS.B,
29.14%,
2/16/27
..
2,065
2,054
FW2644598.UP.FTS.B,
29.38%,
2/16/27
..
10,718
10,662
FW2642765.UP.FTS.B,
29.42%,
2/16/27
..
9,833
9,782
FW2638694.UP.FTS.B,
29.47%,
2/16/27
..
3,456
3,442
FW2643411.UP.FTS.B,
29.58%,
2/16/27
..
5,109
5,082
FW2638733.UP.FTS.B,
29.69%,
2/16/27
..
4,229
4,207
FW2637102.UP.FTS.B,
30%,
2/16/27
....
10,622
10,567
FW2639546.UP.FTS.B,
30.02%,
2/16/27
..
1,300
384
FW2643620.UP.FTS.B,
30.03%,
2/16/27
..
1,377
1,369
FW2641230.UP.FTS.B,
30.11%,
2/16/27
..
2,459
2,446
FW2639696.UP.FTS.B,
30.14%,
2/16/27
..
984
978
FW2640894.UP.FTS.B,
30.14%,
2/16/27
..
26,754
26,615
FW2644440.UP.FTS.B,
30.21%,
2/16/27
..
1,279
1,272
FW2641475.UP.FTS.B,
30.33%,
2/16/27
..
1,635
1,623
FW2642574.UP.FTS.B,
30.52%,
2/16/27
..
20,079
19,913
FW2639097.UP.FTS.B,
30.54%,
2/16/27
..
984
979
FW2641049.UP.FTS.B,
30.61%,
2/16/27
..
2,279
2,170
FW2632545.UP.FTS.B,
30.71%,
2/16/27
..
2,142
2,125
FW2644683.UP.FTS.B,
30.76%,
2/16/27
..
3,000
886
FW2639823.UP.FTS.B,
30.77%,
2/16/27
..
1,387
1,321
FW2644847.UP.FTS.B,
30.77%,
2/16/27
..
1,450
1,438
FW2640492.UP.FTS.B,
30.82%,
2/16/27
..
1,279
1,272
FW2644628.UP.FTS.B,
30.88%,
2/16/27
..
1,377
1,370
FW2641207.UP.FTS.B,
30.9%,
2/16/27
...
3,345
3,328
FW2643274.UP.FTS.B,
30.91%,
2/16/27
..
17,612
17,521
FW2643698.UP.FTS.B,
30.91%,
2/16/27
..
6,789
6,754
FW2641966.UP.FTS.B,
30.93%,
2/16/27
..
1,181
1,175
FW2642662.UP.FTS.B,
30.94%,
2/16/27
..
5,313
5,286
FW2641385.UP.FTS.B,
30.96%,
2/16/27
..
1,401
1,390
FW2643800.UP.FTS.B,
31.1%,
2/16/27
...
1,467
1,416
FW2638255.UP.FTS.B,
31.12%,
2/16/27
..
2,251
2,239
FW2641109.UP.FTS.B,
31.12%,
2/16/27
..
42,903
40,865
FW2610188.UP.FTS.B,
31.13%,
2/16/27
..
9,858
9,819
FW2641269.UP.FTS.B,
31.13%,
2/16/27
..
11,257
11,213
FW2644572.UP.FTS.B,
31.14%,
2/16/27
..
19,678
19,577
FW2642792.UP.FTS.B,
31.15%,
2/16/27
..
1,176
1,169
FW2639361.UP.FTS.B,
31.17%,
2/16/27
..
1,378
1,371
FW2638262.UP.FTS.B,
31.18%,
2/16/27
..
2,263
2,252
FW2638060.UP.FTS.B,
31.21%,
2/16/27
..
2,558
2,545
FW2640012.UP.FTS.B,
31.21%,
2/16/27
..
1,265
1,258
FW2643874.UP.FTS.B,
31.23%,
2/16/27
..
4,605
4,580
FW2642495.UP.FTS.B,
31.26%,
2/16/27
..
3,582
3,418
FW2623499.UP.FTS.B,
31.32%,
2/16/27
..
13,974
13,902
FW2638899.UP.FTS.B,
31.34%,
2/16/27
..
4,035
4,014
FW2635345.UP.FTS.B,
31.4%,
2/16/27
...
2,362
2,350
FW2638691.UP.FTS.B,
31.42%,
2/16/27
..
9,349
9,301
FW2641390.UP.FTS.B,
31.53%,
2/16/27
..
17,025
16,938
FW2642444.UP.FTS.B,
31.58%,
2/16/27
..
3,865
3,681
FW2643082.UP.FTS.B,
31.96%,
2/16/27
..
1,709
1,698
FW2639818.UP.FTS.B,
33.34%,
2/16/27
..
3,939
3,919
FW2641809.UP.FTS.B,
33.83%,
2/16/27
..
2,068
2,058
L2645179.UP.FTS.B,
6.87%,
2/17/27
....
14,164
14,143
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
204
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2645552.UP.FTS.B,
9.48%,
2/17/27
...
$
7,786
$
7,766
L2645113.UP.FTS.B,
10.21%,
2/17/27
....
7,789
7,757
FW2645630.UP.FTS.B,
12.87%,
2/17/27
..
12,679
12,628
L2644980.UP.FTS.B,
12.95%,
2/17/27
....
1,903
1,895
L2645342.UP.FTS.B,
13.93%,
2/17/27
....
29,277
29,161
FW2645588.UP.FTS.B,
15.61%,
2/17/27
..
3,899
3,875
FW2645675.UP.FTS.B,
15.8%,
2/17/27
...
26,573
26,409
FW2645246.UP.FTS.B,
17.78%,
2/17/27
..
4,890
4,853
FW2645832.UP.FTS.B,
18.88%,
2/17/27
..
14,679
14,591
L2645909.UP.FTS.B,
19.06%,
2/17/27
....
4,938
4,907
L2645640.UP.FTS.B,
19.47%,
2/17/27
....
8,423
8,360
L2645010.UP.FTS.B,
20.52%,
2/17/27
....
10,774
10,693
FW2642053.UP.FTS.B,
21.61%,
2/17/27
..
4,111
4,089
L2645135.UP.FTS.B,
21.7%,
2/17/27
....
2,156
2,145
FW2645361.UP.FTS.B,
22.1%,
2/17/27
...
24,396
24,211
L2645558.UP.FTS.B,
22.43%,
2/17/27
....
2,832
2,811
L2645378.UP.FTS.B,
22.72%,
2/17/27
....
5,098
5,072
L2642277.UP.FTS.B,
22.82%,
2/17/27
....
6,218
6,170
L2645573.UP.FTS.B,
22.94%,
2/17/27
....
1,981
1,882
FW2645248.UP.FTS.B,
23.66%,
2/17/27
..
5,199
5,172
FW2645101.UP.FTS.B,
24.46%,
2/17/27
..
4,416
4,393
L2642860.UP.FTS.B,
25.01%,
2/17/27
....
4,499
4,475
L2644940.UP.FTS.B,
25.36%,
2/17/27
....
2,945
2,930
L2645037.UP.FTS.B,
25.41%,
2/17/27
....
2,258
2,246
L2645131.UP.FTS.B,
25.45%,
2/17/27
....
1,360
1,353
L2645504.UP.FTS.B,
26.01%,
2/17/27
....
11,292
11,235
FW2644444.UP.FTS.B,
26.02%,
2/17/27
..
7,856
7,816
L2645397.UP.FTS.B,
26.19%,
2/17/27
....
2,455
2,443
FW2645900.UP.FTS.B,
26.25%,
2/17/27
..
1,964
1,954
FW2645472.UP.FTS.B,
26.31%,
2/17/27
..
16,695
16,611
FW2645571.UP.FTS.B,
26.48%,
2/17/27
..
3,929
3,909
FW2645486.UP.FTS.B,
26.67%,
2/17/27
..
6,483
6,450
FW2645165.UP.FTS.B,
26.81%,
2/17/27
..
1,965
1,955
FW2644890.UP.FTS.B,
27.01%,
2/17/27
..
3,716
3,696
FW2645599.UP.FTS.B,
27.57%,
2/17/27
..
24,564
24,443
FW2644978.UP.FTS.B,
28.18%,
2/17/27
..
10,597
10,544
FW2644973.UP.FTS.B,
28.39%,
2/17/27
..
8,503
8,458
FW2645345.UP.FTS.B,
29.29%,
2/17/27
..
3,933
3,914
FW2645842.UP.FTS.B,
30.86%,
2/17/27
..
3,110
3,092
FW2645763.UP.FTS.B,
30.98%,
2/17/27
..
1,476
1,469
FW2644961.UP.FTS.B,
31.22%,
2/17/27
..
3,943
3,756
FW2645290.UP.FTS.B,
31.68%,
2/17/27
..
8,562
8,522
L1874161.UP.FTS.B,
22.65%,
3/18/27
....
4,817
4,776
FW1872958.UP.FTS.B,
31.09%,
3/18/27
..
4,073
4,049
L1984143.UP.FTS.B,
25.48%,
4/09/27
....
7,564
7,493
L2071630.UP.FTS.B,
22.65%,
4/19/27
....
6,662
6,611
FW2078551.UP.FTS.B,
31.14%,
4/19/27
..
9,884
9,392
L1710242.UP.FTS.B,
16.42%,
9/14/28
....
2,841
2,824
L1708682.UP.FTS.B,
24.71%,
9/14/28
....
47,784
47,250
L2008544.UP.FTS.B,
14.54%,
11/09/28
...
4,821
4,805
L1973640.UP.FTS.B,
20.1%,
11/09/28
....
10,097
10,052
L2008144.UP.FTS.B,
25.61%,
11/09/28
...
2,344
2,321
L2009558.UP.FTS.B,
26.34%,
11/09/28
...
18,122
17,934
L2195991.UP.FTS.B,
26.01%,
12/07/28
...
8,837
8,739
L2197007.UP.FTS.B,
26.07%,
12/07/28
...
2,553
2,529
L2188407.UP.FTS.B,
26.23%,
12/07/28
...
18,658
18,487
L2204377.UP.FTS.B,
25.94%,
12/08/28
...
4,320
4,287
L2635238.UP.FTS.B,
13.81%,
2/15/29
....
14,773
14,735
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2631621.UP.FTS.B,
15.64%,
2/15/29
....
$
21,191
$
21,110
L2633434.UP.FTS.B,
17.36%,
2/15/29
....
4,539
4,527
L2633944.UP.FTS.B,
25.93%,
2/15/29
....
1,782
1,769
L2633742.UP.FTS.B,
25.95%,
2/15/29
....
3,168
3,156
L2634808.UP.FTS.B,
26.03%,
2/15/29
....
1,980
1,966
L2635718.UP.FTS.B,
26.25%,
2/15/29
....
2,475
2,460
L2637431.UP.FTS.B,
26.27%,
2/15/29
....
6,733
6,684
L2633894.UP.FTS.B,
26.42%,
2/15/29
....
4,771
4,745
L2635317.UP.FTS.B,
27.28%,
2/15/29
....
2,278
2,264
27,109,117
Total
Marketplace
Loans
(Cost
$86,201,988)
....
$83,510,806
Franklin
Strategic
Series
Schedule
of
Investments,
April
30,
2022
Franklin
Strategic
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
205
At
April
30,
2022,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1
(
e
). 
At
April
30,
2022,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1
(
e
). 
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Interest
rate
contracts
U.S.
Treasury
5
Year
Notes
.....................
Long
615
$
69,293,203
6/30/22
$
(507,633)
U.S.
Treasury
Long
Bonds
.....................
Short
121
17,023,188
6/21/22
415,766
U.S.
Treasury
Ultra
Bonds
......................
Long
77
12,353,688
6/21/22
(1,110,274)
Total
Futures
Contracts
......................................................................
$(1,202,141)
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Brazilian
Real
......
JPHQ
Sell
48,725,792
9,006,849
5/09/22
$
—
$
(831,226)
Indonesian
Rupiah
..
JPHQ
Buy
91,000,000,000
6,338,371
5/23/22
—
(80,029)
Indonesian
Rupiah
..
JPHQ
Sell
91,000,000,000
6,345,886
5/23/22
87,543
—
Euro
.............
JPHQ
Buy
7,000,000
7,539,634
5/25/22
—
(148,506)
Euro
.............
JPHQ
Sell
7,000,000
7,976,395
5/25/22
585,268
—
Columbian
Peso
....
JPHQ
Sell
65,000,000,000
15,941,473
6/03/22
95
(389,807)
Euro
.............
JPHQ
Buy
5,295,000
5,664,597
7/18/22
—
(56,691)
Euro
.............
JPHQ
Sell
35,951,700
39,291,397
7/18/22
1,215,144
—
Indonesian
Rupiah
..
JPHQ
Buy
32,650,000,000
2,268,937
7/18/22
—
(37,962)
Indonesian
Rupiah
..
JPHQ
Sell
65,000,000,000
4,506,691
7/18/22
65,241
—
South
Korean
Won
..
JPHQ
Buy
9,500,000,000
7,666,917
7/26/22
—
(139,658)
South
Korean
Won
..
JPHQ
Sell
9,500,000,000
7,482,672
7/26/22
—
(44,587)
Total
Forward
Exchange
Contracts
...................................................
$1,953,291
$(1,728,466)
Net
unrealized
appreciation
(depreciation)
............................................
$224,825
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
206
At
April
30,
2022,
the
Fund
had
the
following credit
default
swap
contracts outstanding.
See
Note
1(e). 
Credit
Default
Swap
Contracts
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
(a)
Value
Unamortized
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
(b)
Centrally
Cleared
Swap
Contracts
Contracts
to
Buy
Protection
(c)
Traded
Index
CDX.NA.HY.38
.
(5.00)%
Quarterly
6/20/27
75,000,000
$
(1,546,733)
$
(3,438,269)
$
1,891,536
Total
Centrally
Cleared
Swap
Contracts
.....................................
$(1,546,733)
$(3,438,269)
$1,891,536
OTC
Swap
Contracts
Contracts
to
Sell
Protection
(c)(d)
Single
Name
Air
France-KLM
.
5.00%
Quarterly
MSCO
12/20/25
6,680,000
EUR
(130,659)
5,881
(136,540)
NR
American
Airlines
Group,
Inc.
..
5.00%
Quarterly
GSCO
6/20/22
2,000,000
9,953
(2,574)
12,527
CCC
Carnival
Corp.
..
1.00%
Quarterly
CITI
6/20/27
17,820,000
(3,095,238)
(3,318,580)
223,342
B-
Mexico
Government
Bond
......
1.00%
Quarterly
GSCO
6/20/26
9,250,000
(48,388)
22,251
(70,639)
BBB
Nordstrom,
Inc.
.
1.00%
Quarterly
JPHQ
12/20/26
9,400,000
(909,933)
(744,672)
(165,261)
BB+
Traded
Index
(e)
BNP
Paribas
Bespoke
Haverhill
Index,
Mezzanine
Tranche
5-10%
4.10%
Quarterly
BNDP
12/20/23
3,150,000
EUR
(38,657)
—
(38,657)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Kenai
Index,
Equity
Tranche
0-5%
—%
Quarterly
CITI
12/20/23
22,100,000
(9,688,584)
(5,558,298)
(4,130,286)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Kona
Index,
Equity
Tranche
0-5%
—%
Quarterly
CITI
12/20/22
9,500,000
(1,663,750)
(838,227)
(825,523)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Kona
Index,
Mezzanine
Tranche
5-10%
2.42%
Quarterly
CITI
12/20/22
7,900,000
(20,059)
—
(20,059)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Palm
Beach
Index,
Mezzanine
Tranche
5-10%
1.97%
Quarterly
CITI
12/20/22
10,600,000
29,538
—
29,538
Non-
Investment
Grade
(e)
Citibank
Bespoke
Rotorua
Index,
Mezzanine
Tranche
5-10%
3.60%
Quarterly
CITI
12/20/23
5,300,000
(169,919)
—
(169,919)
Non-
Investment
Grade
MCDX.
NA.MAIN.31
.
1.00%
Quarterly
CITI
12/20/23
23,060,000
240,765
76,488
164,277
Investment
Grade
Total
OTC
Swap
Contracts
..............................................
$(15,484,931)
$(10,357,731)
$(5,127,200)
Total
Credit
Default
Swap
Contracts
....................................
$(17,031,664)
$
(13,796,000)
$(3,235,664)
Franklin
Strategic
Series
Schedule
of
Investments
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
207
(a)
In
U.S.
dollars
unless
otherwise
indicated.
For
contracts
to
sell
protection,
the
notional
amount
is
equal
to
the
maximum
potential
amount
of
the
future
payments
and
no
recourse
provisions
have
been
entered
into
in
association
with
the
contracts.
(b)
Based
on
Standard
and
Poor's
(S&P)
Rating
for
single
name
swaps
and
internal
ratings
for
index
swaps.
Internal
ratings
based
on
mapping
into
equivalent
ratings
from
external
vendors.
(c)
Performance
triggers
for
settlement
of
contract
include
default,
bankruptcy
or
restructuring
for
single
name
swaps,
and
failure
to
pay
or
bankruptcy
of
the
underlying
securities
for
traded
index
swaps.
(d)
The
fund
enters
contracts
to
sell
protection
to
create
a
long
credit
position.
(e)
Represents
a
custom
index
comprised
of
a
basket
of
underlying
instruments.
See
Note 11 regarding
other
derivative
information.
See
Abbreviations
on
page
233.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Assets
and
Liabilities
April
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
208
Franklin
Strategic
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$3,172,772,797
Cost
-
Controlled
affiliates
(Note
3
f
)
............................................................
376,942,313
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
48,102,735
Cost
-
Unaffiliated
repurchase
agreements
......................................................
104,463,966
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$5,107,052)
.................................
$2,872,977,099
Value
-
Controlled
affiliates
(Note
3
f
)
...........................................................
318,685,701
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
48,102,735
Value
-
Unaffiliated
repurchase
agreements
......................................................
104,463,966
Cash
....................................................................................
7,537,025
Receivables:
Investment
securities
sold
...................................................................
26,438,280
Capital
shares
sold
........................................................................
1,558,398
Dividends
and
interest
.....................................................................
31,870,820
Deposits
with
brokers
for:
OTC
derivative
contracts
..................................................................
14,440,090
Futures
contracts
........................................................................
963,225
Centrally
cleared
swap
contracts
............................................................
4,002,719
Variation
margin
on
centrally
cleared
swap
contracts
...............................................
2,488,247
OTC
swap
contracts
(upfront
payments
$265,159)
..................................................
104,620
Unrealized
appreciation
on
OTC
forward
exchange
contracts
..........................................
1,953,291
Unrealized
appreciation
on
OTC
swap
contracts
....................................................
429,684
Deferred
tax
benefit
.........................................................................
981,055
Total
assets
..........................................................................
3,436,996,955
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
51,236,816
Capital
shares
redeemed
...................................................................
3,846,737
Management
fees
.........................................................................
1,075,758
Distribution
fees
..........................................................................
663,637
Transfer
agent
fees
........................................................................
745,774
Trustees'
fees
and
expenses
.................................................................
18,690
Variation
margin
on
futures
contracts
...........................................................
103,981
OTC
swap
contracts
(upfront
receipts
$13,411,190)
.................................................
10,462,351
Unrealized
depreciation
on
OTC
swap
contracts
....................................................
5,556,884
Unrealized
depreciation
on
OTC
forward
exchange
contracts
..........................................
1,728,466
Payable
upon
return
of
securities
loaned
(Note
1
g
)
..................................................
5,327,016
Deferred
tax
...............................................................................
31,461
Accrued
expenses
and
other
liabilities
...........................................................
196,218
Total
liabilities
.........................................................................
80,993,789
Net
assets,
at
value
.................................................................
$3,356,003,166
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$4,393,380,190
Total
distributable
earnings
(losses)
.............................................................
(1,037,377,024)
Net
assets,
at
value
.................................................................
$3,356,003,166
Franklin
Strategic
Series
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
April
30,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
209
Franklin
Strategic
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$2,609,532,898
Shares
outstanding
........................................................................
305,241,948
Net
asset
value
per
share
a
..................................................................
$8.55
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$8.88
Class
C:
Net
assets,
at
value
.......................................................................
$171,373,708
Shares
outstanding
........................................................................
20,036,398
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$8.55
Class
R:
Net
assets,
at
value
.......................................................................
$48,446,681
Shares
outstanding
........................................................................
5,692,246
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$8.51
Class
R6:
Net
assets,
at
value
.......................................................................
$136,184,458
Shares
outstanding
........................................................................
15,903,304
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$8.56
Advisor
Class:
Net
assets,
at
value
.......................................................................
$390,465,421
Shares
outstanding
........................................................................
45,612,240
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$8.56
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Operations
for
the
year
ended
April
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
210
Franklin
Strategic
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$1,272,703
Controlled
affiliates
(Note
3f)
.................................................................
12,113,599
Non-controlled
affiliates
(Note
3
f
)
.............................................................
5,047
Interest:
(net
of
foreign
taxes
of
$283,537)
Unaffiliated
issuers:
Paydown
gain
(loss)
.....................................................................
(11,498,637)
Paid
in
cash
a
...........................................................................
147,288,861
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
79,402
Non-controlled
affiliates
(Note
3
f
)
.............................................................
378
Total
investment
income
...................................................................
149,261,353
Expenses:
Management
fees
(Note
3
a
)
...................................................................
17,251,823
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
7,204,166
    Class
C
................................................................................
1,694,098
    Class
R
................................................................................
274,176
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
4,152,542
    Class
C
................................................................................
379,632
    Class
R
................................................................................
79,148
    Class
R6
...............................................................................
68,834
    Advisor
Class
............................................................................
635,527
Custodian
fees
(Note
4
)
......................................................................
90,397
Reports
to
shareholders
fees
..................................................................
369,800
Registration
and
filing
fees
....................................................................
168,336
Professional
fees
...........................................................................
210,369
Trustees'
fees
and
expenses
..................................................................
53,195
Marketplace
lending
fees
(Note
1
h
)
.............................................................
549,514
Other
....................................................................................
227,423
Total
expenses
.........................................................................
33,408,980
Expense
reductions
(Note
4
)
...............................................................
(34,592)
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
..............................................
(1,990,118)
Net
expenses
.........................................................................
31,384,270
Net
investment
income
................................................................
117,877,083
Franklin
Strategic
Series
Financial
Statements
Statement
of
Operations
(continued)
for
the
year
ended
April
30,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
211
Franklin
Strategic
Income
Fund
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$82,223)
Unaffiliated
issuers
......................................................................
(91,762,217)
Written
options
...........................................................................
415,125
Foreign
currency
transactions
................................................................
10,188
Forward
exchange
contracts
.................................................................
614,095
Futures
contracts
.........................................................................
5,168,695
Swap
contracts
...........................................................................
11,392,885
Net
realized
gain
(loss)
..................................................................
(74,161,229)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(269,137,412)
Controlled
affiliates
(Note
3f)
...............................................................
14,373,485
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(28,659)
Written
options
...........................................................................
(365,430)
Forward
exchange
contracts
.................................................................
1,021,340
Futures
contracts
.........................................................................
(13,226)
Swap
contracts
...........................................................................
(7,897,795)
Change
in
deferred
taxes
on
unrealized
appreciation
...............................................
77,131
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(261,970,566)
Net
realized
and
unrealized
gain
(loss)
............................................................
(336,131,795)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(218,254,712)
a
Includes
amortization
of
premium
and
accretion
of
discount.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Changes
in
Net
Assets
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
212
Franklin
Strategic
Income
Fund
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021*
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$117,877,083
$158,061,455
Net
realized
gain
(loss)
.................................................
(74,161,229)
(63,087,171)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(261,970,566)
398,717,983
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(218,254,712)
493,692,267
Distributions
to
shareholders:
Class
A
.............................................................
(104,476,136)
(107,559,827)
Class
C
.............................................................
(7,926,927)
(15,093,095)
Class
R
.............................................................
(1,847,687)
(2,213,268)
Class
R6
............................................................
(5,646,868)
(5,315,212)
Advisor
Class
........................................................
(16,976,765)
(20,592,895)
Total
distributions
to
shareholders
..........................................
(136,874,383)
(150,774,297)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
24,319,901
(62,316,513)
Class
C
.............................................................
(198,078,184)
(174,939,408)
Class
R
.............................................................
(5,859,698)
(8,115,630)
Class
R6
............................................................
17,687,072
(11,480,330)
Advisor
Class
........................................................
(31,320,044)
(100,161,067)
Total
capital
share
transactions
............................................
(193,250,953)
(357,012,948)
Net
increase
(decrease)
in
net
assets
...................................
(548,380,048)
(14,094,978)
Net
assets:
Beginning
of
year
.......................................................
3,904,383,214
3,918,478,192
End
of
year
...........................................................
$3,356,003,166
$3,904,383,214
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
Franklin
Strategic
Series
213
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
Franklin
Strategic
Income
Fund
1.
Organization
and
Significant
Accounting
Policies
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
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
Franklin
Strategic
Income
Fund
(Fund)
is
included
in
this
report.
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
C,
Class
R,
Class
R6
and
Advisor
Class.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
derivative
financial
instruments
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
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in 
open-end mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
Certain
derivative
financial
instruments
are
centrally
cleared
or
trade
in
the
OTC
market.
The
Fund's
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Fund's
net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
Franklin
Strategic
Series
Notes
to
Financial
Statements
214
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
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.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day.
Events
can
occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
April
30,
2022,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
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
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Joint
Repurchase
Agreement
The
Fund
enters
into
a
joint
repurchase
agreement
whereby
its
uninvested
cash
balance
is
deposited
into
a
joint
cash
account
with
other
funds
managed
by
the
investment
manager
or
an
affiliate
of
the
investment
manager
and
is
used
to
invest
in
one
or
more
repurchase
agreements.
The
value
and
face
amount
of
the
joint
repurchase
agreement
are
allocated
to
the
funds
based
on
their
pro-rata
interest.
A
repurchase
agreement
is
accounted
for
as
a
loan
by
the
Fund
to
the
seller,
collateralized
by
securities
which
are
delivered
to
the
Fund's
custodian.
The
fair
value,
including
accrued
interest,
of
the
initial
collateralization
is
required
to
be
at
least
102%
of
the
dollar
amount
invested
by
the
funds,
with
the
value
of
the
underlying
securities
marked
to
market
daily
to
maintain
coverage
of
at
least
100%.
Repurchase
agreements
are
subject
to
the
terms
of
Master
Repurchase
Agreements
(MRAs)
with
approved
counterparties
(sellers).
The
MRAs
contain
various
provisions,
including
but
not
limited
to
events
of
default
and
maintenance
of
collateral
for
repurchase
agreements.
In
the
event
of
default
by
either
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
215
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
the
seller
or
the
Fund,
certain
MRAs
may
permit
the
non-
defaulting
party
to
net
and
close-out
all
transactions,
if
any,
traded
under
such
agreements.
The
Fund
may
sell
securities
it
holds
as
collateral
and
apply
the
proceeds
towards
the
repurchase
price
and
any
other
amounts
owed
by
the
seller
to
the
Fund
in
the
event
of
default
by
the
seller.
This
could
involve
costs
or
delays
in
addition
to
a
loss
on
the
securities
if
their
value
falls
below
the
repurchase
price
owed
by
the
seller.
The
joint
repurchase
agreement
held
by
the Fund
at
year
end,
as
indicated
in
the
Schedule
of
Investments,
had
been
entered
into
on
April
29,
2022.
d.
Securities
Purchased
on
a
TBA
Basis
The
Fund
purchases
securities
on
a
to-be-announced
(TBA)
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
e.
Derivative
Financial
Instruments
The
Fund
invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the Statement
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the Statement
of
Operations. 
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
The
Fund
attempts
to
reduce
its
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Fund
include
failure
of
the
Fund
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Fund
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of
agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund's
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Fund's
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
The
Fund
entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Joint
Repurchase
Agreement
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
216
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
The
Fund entered
into
OTC
forward
exchange
contracts
primarily
to
manage
and/or
gain
exposure
to
certain
foreign
currencies.
A
forward
exchange
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
foreign
currency at
a
specific
exchange
rate
on
a
future
date.
The
Fund
entered
into
credit
default
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
risk.
A
credit
default
swap
is
an
agreement
between
the
Fund
and
a
counterparty
whereby
the
buyer
of
the
contract
receives
credit
protection
and
the
seller
of
the
contract
guarantees
the
credit
worthiness
of
a
referenced
debt
obligation.
These
agreements
may
be
privately
negotiated
in
the
over-the-
counter
market
(OTC
credit
default
swaps)
or
may
be
executed
in
a
multilateral
trade
facility
platform,
such
as
a
registered
exchange
(centrally
cleared
credit
default
swaps).
The
underlying
referenced
debt
obligation
may
be
a
single
issuer
of
corporate
or
sovereign
debt,
a
credit
index,
a
basket
of
issuers
or
indices,
or
a
tranche
of
a
credit
index
or
basket
of
issuers
or
indices.
In
the
event
of
a
default
of
the
underlying
referenced
debt
obligation,
the
buyer
is
entitled
to
receive
the
notional
amount
of
the
credit
default
swap
contract
from
the
seller
in
exchange
for
the
referenced
debt
obligation,
a
net
settlement
amount
equal
to
the
notional
amount
of
the
credit
default
swap
less
the
recovery
value
of
the
referenced
debt
obligation,
or
other
agreed
upon
amount.
For
centrally
cleared
credit
default
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
Over
the
term
of
the
contract,
the
buyer
pays
the
seller
a
periodic
stream
of
payments,
provided
that
no
event
of
default
has
occurred.
Such
periodic
payments
are
accrued
daily
as
an
unrealized
appreciation
or
depreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
are
reflected
in
the Statement
of
Assets
and
Liabilities
and
represent
compensating
factors
between
stated
terms
of
the
credit
default
swap
agreement
and
prevailing
market
conditions
(credit
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss
in
the Statement
of
Operations.
The
Fund
entered
into
OTC
cross
currency
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
A
cross
currency
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
cash
flows
(determined
using
either
a
fixed
or
floating
rate)
based
on
the
notional
amounts
of
two
different
currencies.
The
notional
amounts
are
typically
determined
based
on
the
spot
exchange
rates
at
the
opening
of
the
contract.
Cross
currency
swaps
may
require
the
exchange
of
notional
amounts
at
the
opening
and/or
closing
of
the
contract.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
and
to
be
received
are
accrued
daily
and
recorded
as
unrealized
depreciation
and
appreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
are
reflected
in
the
Statement
of
Assets
and
Liabilities
and
represent
compensating
factors
between
stated
terms
of
the
cross
currency
swap
contract
and
prevailing
market
conditions
(interest
rate
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss
in
the
Statement
of
Operations.
The
Fund
entered
into
inflation
index
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
inflation
risk.
An
inflation
index
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
cash
flows
whereby
one
party
makes
payments
based
on
the
percentage
change
in
an
index
that
serves
as
a
measure
of
inflation
and
the
other
party
makes
a
regular
payment
based
on
a
compounded
fixed
rate,
applied
to
a
notional
amount.
These
agreements
may
be
privately
negotiated
in
the
over-the-counter
market
(OTC
inflation
index
swap)
or
may
be
executed
on
a
registered
exchange
(centrally
cleared
inflation
index
swap).
For
centrally
cleared
inflation
index
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
and
to
be
received
are
accrued
daily
and
recorded
as
unrealized
depreciation
and
appreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Typically,
an
inflation
index
swap
has
payment
obligations
netted
and
exchanged
upon
maturity.
1.
Organization
and
Significant
Accounting
Policies
(continued)
e.
Derivative
Financial
Instruments
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
217
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
The
Fund
purchased
or
wrote
exchange
traded
and/or
OTC
option
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
An
option
is
a
contract
entitling
the
holder
to
purchase
or
sell
a
specific
amount
of
shares
or
units
of
an
asset
or
notional
amount
of
a
swap
(swaption),
at
a
specified
price.
When
an
option
is
purchased
or
written,
an
amount
equal
to
the
premium
paid
or
received
is
recorded
as
an
asset
or
liability,
respectively.
Upon
exercise
of
an
option,
the
acquisition
cost
or
sales
proceeds
of
the
underlying
investment
is
adjusted
by
any
premium
received
or
paid.
Upon
expiration
of
an
option,
any
premium
received
or
paid
is
recorded
as
a
realized
gain
or
loss.
Upon
closing
an
option
other
than
through
expiration
or
exercise,
the
difference
between
the
premium
received
or
paid
and
the
cost
to
close
the
position
is
recorded
as
a
realized
gain
or
loss.
The
Fund
invests
in
value
recovery
instruments
(VRI)
primarily
to
gain
exposure
to
economic
growth.
Periodic
payments
from
VRI
are
dependent
on
established
benchmarks
for
underlying
variables.
VRI
has
a
notional
amount,
which
is
used
to
calculate
amounts
of
payments
to
holders.
Payments
are
recorded
upon
receipt
as
realized
gains
in
the
Statement
of
Operations.
The
risks
of
investing
in
VRI
include
growth
risk,
liquidity,
and
the
potential
loss
of
investment.
The
Fund
did
not
hold
any
VRI
at
year
end.
See
Note
11 regarding
other
derivative
information.
f.
Loan
Participation
Notes
The
Fund
invests
in
loan
participation
notes
(Participations).
Participations
are
loans
originally
issued
to
a
borrower
by
one
or
more
financial
institutions
(the
Lender)
and
subsequently
sold
to
other
investors,
such
as
the Fund.
Participations
typically
result
in
the
Fund
having
a
contractual
relationship
only
with
the
Lender
and
not
with
the
borrower.
The
Fund
has
the
right
to
receive
from
the
Lender
any
payments
of
principal,
interest
and
fees
which
the
Lender
received
from
the
borrower.
The
Fund
generally
has
no
rights
to
either
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement
or
to
any
collateral
relating
to
the
original
loan.
As
a
result,
the Fund
assumes
the
credit
risk
of
both
the
borrower
and
the
Lender
that
is
selling
the
Participation.
The
Participations
may
also
involve
interest
rate
risk
and
liquidity
risk,
including
the
potential
default
or
insolvency
of
the
borrower
and/or
the
Lender.
g.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the Fund,
and/or
a
joint
repurchase
agreement
in
the
Statement
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statement
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
h.
Marketplace
Lending
The
Fund
invests
in
loans
obtained
through
marketplace
lending.
Marketplace
lending,
sometimes
referred
to
as
peer-to-peer
lending,
is
a
method
of
financing
in
which
a
platform
facilitates
the
borrowing
and
lending
of
money.
It
is
considered
an
alternative
to
more
traditional
forms
of
debt
financing.
Prospective
borrowers
are
required
to
provide
certain
financial
information
to
the
platform,
including,
but
not
limited
to,
the
intended
purpose
of
the
loan,
income,
employment
information,
credit
score,
debt-to-income
ratio,
credit
history
(including
defaults
and
delinquencies)
and
home
ownership
status.
Based
on
this
and
other
information,
the
platform
assigns
its
own
credit
rating
to
the
borrower
and
sets
the
interest
rate
for
the
requested
loan.
The
platform
then
posts
the
borrowing
requests
online,
giving
investors
the
opportunity
to
purchase
the
loans
based
on
factors
such
1.
Organization
and
Significant
Accounting
Policies
(continued)
e.
Derivative
Financial
Instruments
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
218
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
as
the
interest
rates
and
expected
yields
of
the
loans,
the
borrower
background
data,
and
the
credit
rating
assigned
by
the
platform.
When
the
Fund
invests
in
these
loans,
it
usually
purchases
all
rights,
title
and
interest
in
the
loans
pursuant
to
a
loan
purchase
agreement
directly
from
the
platform.
The
platform
or
a
third-party
servicer
typically
continues
to
service
the
loans,
collecting
payments
and
distributing
them
to
the
Fund,
less
any
servicing
fees
assessed.
The
servicer
is
typically
responsible
for
taking
actions
against
a
borrower
in
the
event
of
a
default
on
the
loan.
Servicing
fees,
along
with
other
administration
fees,
are
included
in
marketplace
lending
fees
in
the
Statement
of
Operations.
The Fund,
as
an
investor
in
a
loan,
would
be
entitled
to
receive
payment
only
from
the
borrower
and
would
not
be
able
to
recover
any
deficiency
from
the
platform,
except
under
very
narrow
circumstances.
The
loans
in
which
the
Fund
may
invest
are
unsecured.
i.
Mortgage
Dollar
Rolls
The
Fund
enters
into
mortgage
dollar
rolls,
typically
on
a
TBA
basis.
Mortgage
dollar
rolls
are
agreements
between
the
Fund
and
a
financial
institution
where
the
Fund
sells
(or
buys)
mortgage-backed
securities
for
delivery
on
a
specified
date
and
simultaneously
contracts
to
repurchase
(or
sell)
substantially
similar
(same
type,
coupon,
and
maturity)
securities
at
a
future
date
and
at
a
predetermined
price.
Gains
or
losses
are
realized
on
the
initial
sale,
and
the
difference
between
the
repurchase
price
and
the
sale
price
is
recorded
as
an
unrealized
gain
or
loss
to
the
Fund
upon
entering
into
the
mortgage
dollar
roll.
In
addition,
the
Fund
may
invest
the
cash
proceeds
that
are
received
from
the
initial
sale.
During
the
period
between
the
sale
and
repurchase,
the
Fund
is
not
entitled
to
principal
and
interest
paid
on
the
mortgage
backed
securities.
Transactions
in
mortgage
dollar
rolls
are
accounted
for
as
purchases
and
sales
and
may
result
in
an
increase
to
the
Fund's
portfolio
turnover
rate.
The
risks
of
mortgage
dollar
roll
transactions
include
the
potential
inability
of
the
counterparty
to
fulfill
its
obligations.
j.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
k.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and if
applicable, excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
April
30,
2022,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
1.
Organization
and
Significant
Accounting
Policies
(continued)
h.
Marketplace
Lending
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
219
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
l.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
separately
on
the
Statement
of
Operations.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
Inflation-indexed
bonds
are
adjusted
for
inflation
through
periodic
increases
or
decreases
in
the
security's
interest
accruals,
face
amount,
or
principal
redemption
value,
by
amounts
corresponding
to
the
rate
of
inflation
as
measured
by
an
index.
Any
increase
or
decrease
in
the
face
amount
or
principal
redemption
value
will
be
included
as
interest
income
in
the
Statement
of
Operations.
m.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
n.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust, on
behalf
of
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
220
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
April
30,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Year
Ended
April
30,
2022
Year
Ended
April
30,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
50,761,516
$476,945,327
44,940,433
$419,168,623
Shares
issued
in
reinvestment
of
distributions
..........
10,659,429
98,830,200
10,896,555
101,560,092
Shares
redeemed
...............................
(59,388,810)
(551,455,626)
(62,539,562)
(583,045,228)
Net
increase
(decrease)
..........................
2,032,135
$24,319,901
(6,702,574)
$(62,316,513)
Class
C
Shares:
Shares
sold
...................................
2,402,939
$22,494,001
4,080,529
$38,026,405
Shares
issued
in
reinvestment
of
distributions
..........
824,330
7,682,094
1,553,033
14,456,669
Shares
redeemed
a
..............................
(24,241,492)
(228,254,279)
(24,428,891)
(227,422,482)
Net
increase
(decrease)
..........................
(21,014,223)
$(198,078,184)
(18,795,329)
$(174,939,408)
Class
R
Shares:
Shares
sold
...................................
1,138,464
$10,527,911
1,625,591
$15,106,571
Shares
issued
in
reinvestment
of
distributions
..........
199,131
1,839,350
236,633
2,195,157
Shares
redeemed
...............................
(1,961,445)
(18,226,959)
(2,735,323)
(25,417,358)
Net
increase
(decrease)
..........................
(623,850)
$(5,859,698)
(873,099)
$(8,115,630)
Class
R6
Shares:
Shares
sold
...................................
5,621,353
$52,543,321
4,216,330
$39,518,885
Shares
issued
in
reinvestment
of
distributions
..........
515,123
4,780,872
494,788
4,618,696
Shares
redeemed
...............................
(4,272,613)
(39,637,121)
(6,056,322)
(55,617,911)
Net
increase
(decrease)
..........................
1,863,863
$17,687,072
(1,345,204)
$(11,480,330)
Advisor
Class
Shares:
Shares
sold
...................................
7,408,475
$68,923,330
13,810,883
$128,667,962
Shares
issued
in
reinvestment
of
distributions
..........
1,727,789
16,053,275
2,092,114
19,511,932
Shares
redeemed
...............................
(12,457,836)
(116,296,649)
(26,597,589)
(248,340,961)
Net
increase
(decrease)
..........................
(3,321,572)
$(31,320,044)
(10,694,592)
$(100,161,067)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Strategic
Series
Notes
to
Financial
Statements
221
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
year
ended
April
30,
2022,
the
gross
effective
investment
management
fee
rate
was
0.457%
of
the
Fund’s
average
daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class
A
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class
C
and
R
compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
year:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
Class
A
....................................................................................
0.25%
Class
C
....................................................................................
0.65%
Class
R
....................................................................................
0.50%
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
222
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
April
30,
2022,
the
Fund
paid
transfer
agent
fees
of
$5,315,683,
of
which $2,542,318
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
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
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
April
30,
2022,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$102,477
CDSC
retained
..............................................................................
$67,319
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Strategic
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Floating
Rate
Income
Fund
..................
$
269,318,469
$
34,993,747
$
—
$
—
$
14,373,485
$
318,685,701
39,102,540
$
12,113,599
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
24
%
$
50,800,930
$
5,230,924
$
(12,190,119)
$
—
$
—
$
43,841,735
43,841,735
$
5,047
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.0
2
4%
$3,737,000
$78,533,000
$(78,009,000)
$—
$—
$4,261,000
4,261,000
$378
Total
Affiliated
Securities
...
$323,856,399
$118,757,671
$(90,199,119)
$—
$14,373,485
$366,788,436
$12,119,024
3.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
223
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
g.
Waivers
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2022.
4.
Expense
Offset
Arrangement
The
Fund
has
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
year
ended
April
30,
2022,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2022,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Fund
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
April
30,
2022,
the
Fund
deferred
late-year
ordinary
losses
of
$4,236,746.
The
tax
character
of
distributions
paid
during
the
years
ended
April
30,
2022
and
2021,
was
as
follows:
At
April
30,
2022,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
foreign
currency
transactions,
payments-in-kind,
paydown
losses,
bond
discounts
and
premiums,
marketplace
loans
and
transfer
in-kind.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
April
30,
2022,
aggregated
$1,925,395,721
and
$2,308,208,872,
respectively.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$82,618,474
Long
term
................................................................................
610,690,429
Total
capital
loss
carryforwards
...............................................................
$693,308,903
2022
2021
Distributions
paid
from:
Ordinary
income
..........................................................
$136,874,383
$150,774,297
Cost
of
investments
..........................................................................
$3,665,879,907
Unrealized
appreciation
........................................................................
$65,591,938
Unrealized
depreciation
........................................................................
(402,235,018)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(336,643,080)
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
224
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
At
April
30,
2022,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
corporate
bonds
and
received $5,327,016
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
7.
Credit Risk
and
Defaulted
Securities
At
April
30,
2022,
the
Fund
had
34.6%
of
its
portfolio
invested
in
high
yield,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
April
30,
2022,
the
aggregate
value
of
these
securities
was
$-,
representing
-%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
8.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
9.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
10.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The Fund
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
April
30,
2022,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Strategic
Income
Fund
125,940,079
K2016470219
South
Africa
Ltd.,
A
...............
2/08/13
-
2/01/17
$
977,123
$
—
6.
Investment
Transactions
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
225
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
11.
Other
Derivative
Information
At
April
30,
2022,
the
Fund's
investments
in
derivative
contracts
are
reflected
in
the
Statement of
Assets
and
Liabilities
as
follows:
Principal
Amount*/
Shares/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Strategic
Income
Fund
(continued)
12,532,821
K2016470219
South
Africa
Ltd.,
B
...............
2/01/17
$
9,307
$
—
84,462
Riviera
Resources,
Inc.
.......................
8/08/18
1,258,484
—
6,000,000
WorkCapital
BSD
SARL,
2/13/26
................
2/15/19
750,000
—
20,000,000
WorkCapital
BSD
SARL,
Term
Loan,
6.5%,
11/02/22
.
2/13/19
19,530,078
—
Total
Restricted
Securities
(Value
is
—%
of
Net
Assets)
..............
$22,524,992
$—
*
In
U.S.
dollars
unless
otherwise
indicated.
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Franklin
Strategic
Income
Fund
Interest
rate
contracts
.......
Variation
margin
on
futures
contracts
$
415,766
a
Variation
margin
on
futures
contracts
$
1,617,907
a
Foreign
exchange
contracts
..
Unrealized
appreciation
on
OTC
forward
exchange
contracts
1,953,291
Unrealized
depreciation
on
OTC
forward
exchange
contracts
1,728,466
Credit
contracts
............
Variation
margin
on
centrally
cleared
swap
contracts
1,891,536
b
Variation
margin
on
centrally
cleared
swap
contracts
—
OTC
swap
contracts
(upfront
payments)
104,620
OTC
swap
contracts
(upfront
receipts)
10,462,351
Unrealized
appreciation
on
OTC
swap
contracts
429,684
Unrealized
depreciation
on
OTC
swap
contracts
5,556,884
Total
....................
$4,794,897
$19,365,608
a
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
schedule
of
investments.
Only
the
variation
margin
receivable/payable
at
year
end
is
separately
reported
within
the
Statement
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
b
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
centrally
cleared
swap
contracts
as
reported
in
the
Schedule
of
Investments.
Only
the
variation
margin
receivable/payable
at
year
end
is
separately
reported
within
the
Statement
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
10.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
226
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
For
the
year
ended
April
30,
2022
,
the
effect
of
derivative
contracts
in
the
Statement
of
Operations
was
as
follows:
For
the
year
ended
April
30,
2022,
the
average
month
end
notional
amount
of
futures
contracts,
options
and
swap
contracts,
the
average
month
end
contract
value
for
forward
exchange
contracts
and
average
month
end
fair
value
of
VRI,
were
as
follows:
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Year
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Year
Franklin
Strategic
Income
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
  appreciation
(depreciation)
on:
Interest
rate
contracts
..........
Investments
$(1,966,405)
a
Investments
$393,865
a
Written
options
415,125
Written
options
(365,430)
Futures
contracts
5,168,695
Futures
contracts
(13,226)
Swap
contracts
3,306,094
Swap
contracts
(2,170,716)
Foreign
exchange
contracts
.....
Investments
(20,049)
a
Investments
—
Swap
contracts
(200,657)
Swap
contracts
203,321
Forward
exchange
contracts
614,095
Forward
exchange
contracts
1,021,340
Credit
contracts
...............
Swap
contracts
8,287,448
Swap
contracts
(5,930,400)
Value
recovery
instruments
Investments
(1,554,945)
a
Investments
(6,627,416)
a
Total
.......................
$14,049,401
$(13,488,662)
a
Purchased
option
contracts
and
VRI
are
included
in
net
realized
gain
(loss)
from
investments
and
net
change
in
unrealized
appreciation
(depreciation)
on
investments
in
the
Statement
of
Operations.
Franklin
Strategic
Income
Fund
Futures
contracts
.........................
$447,816,103
Options
.................................
123,463,461
Forward
exchange
contracts
.................
142,087,041
Swap
Contracts
..........................
165,155,553
VRI
....................................
6,462,622
11.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
227
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
At
April
30,
2022,
the
Fund's
OTC
derivative
assets
and
liabilities
are
as
follows:
At
April
30,
2022,
OTC
derivative
assets,
which
may
be
offset
against
the
Fund's
OTC
derivative
liabilities
and
collateral
received
from
the
counterparty,
are
as
follows:
Gross
Amounts
of
Assets
and
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Assets
a
Liabilities
a
Franklin
Strategic
Income
Fund
Derivatives
Forward
exchange
contracts
.............................
$
1,953,291
$
1,728,466
Swap
contracts
.......................................
534,304
16,019,235
Total
.............................................
$2,487,595
$17,747,701
a
Absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Received
Cash
Collateral
Received
Net
Amount
(Not
less
than
zero)
Franklin
Strategic
Income
Fund
Counterparty
BNDP
...................
$—
$—
$—
$—
$—
CITI
.....................
493,645
(493,645)
—
—
—
GSCO
...................
34,778
(34,778)
—
—
—
JPHQ
...................
1,953,291
(1,953,291)
—
—
—
MSCO
...................
5,881
(5,881)
—
—
—
Total
...................
$2,487,595
$(2,487,595)
$
—
$—
$—
$
1
11.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
228
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
At
April
30,
2022,
OTC
derivative
liabilities,
which
may
be
offset
against
the
Fund's
OTC
derivative
assets
and
collateral
pledged
to
the
counterparty,
are
as
follows:
See
Note
1(e)
regarding
derivative
financial
instruments. 
See
Abbreviations
on
page
233
.
12.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
year
ended
April
30,
2022,
the Fund
did
not
use
the
Global
Credit
Facility.
13.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Pledged
Cash
Collateral
Pledged
Net
Amount
(Not
less
than
zero)
Franklin
Strategic
Income
Fund
Counterparty
BNDP
...................
$38,657
$—
$—
$—
$38,657
CITI
.....................
14,860,892
(493,645)
—
(14,030,000)
337,247
GSCO
...................
73,213
(34,778)
—
—
38,435
JPHQ
...................
2,638,399
(1,953,291)
—
(410,090)
275,018
MSCO
...................
136,540
(5,881)
—
—
130,659
Total
...................
$17,747,701
$(2,487,595)
$—
$(14,440,090)
$820,016
11.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
229
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
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
April
30,
2022,
in
valuing
the
Fund's
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Energy
Equipment
&
Services
.............
$
4,891,873
$
—
$
—
$
4,891,873
Machinery
............................
—
8,483,610
—
8,483,610
Media
...............................
2,542,697
—
28,864
2,571,561
Multiline
Retail
........................
—
—
—
a
—
Oil,
Gas
&
Consumable
Fuels
.............
35,324
—
—
a
35,324
Management
Investment
Companies
:
Capital
Markets
........................
33,352,500
318,685,701
—
352,038,201
Warrants
:
Oil,
Gas
&
Consumable
Fuels
.............
—
—
24
a
24
Paper
&
Forest
Products
.................
—
47,826
—
47,826
Software
.............................
—
—
—
a
—
Convertible
Bonds
.......................
—
491,251
—
491,251
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
21,002,382
—
21,002,382
Air
Freight
&
Logistics
...................
—
3,182,368
—
3,182,368
Airlines
..............................
—
28,770,337
—
28,770,337
Auto
Components
......................
—
37,329,359
—
37,329,359
Automobiles
..........................
—
9,837,424
—
9,837,424
Banks
...............................
—
44,845,842
—
44,845,842
Beverages
...........................
—
9,079,364
—
9,079,364
Biotechnology
.........................
—
5,593,022
—
5,593,022
Building
Products
......................
—
27,621,270
—
27,621,270
Capital
Markets
........................
—
42,023,980
—
42,023,980
Chemicals
...........................
—
126,569,427
—
126,569,427
Commercial
Services
&
Supplies
...........
—
16,982,755
—
16,982,755
Communications
Equipment
..............
—
8,778,273
—
8,778,273
Construction
&
Engineering
...............
—
3,154,611
—
3,154,611
Construction
Materials
..................
—
3,908,620
—
3,908,620
Consumer
Finance
.....................
—
14,072,121
—
14,072,121
Containers
&
Packaging
.................
—
43,966,677
—
43,966,677
Diversified
Consumer
Services
............
—
7,237,500
—
7,237,500
Diversified
Financial
Services
.............
—
18,429,157
—
18,429,157
Diversified
Telecommunication
Services
.....
—
43,369,808
—
43,369,808
Electric
Utilities
........................
—
58,998,873
—
58,998,873
Electrical
Equipment
....................
—
15,986,298
—
15,986,298
Electronic
Equipment,
Instruments
&
Components
........................
—
11,445,718
—
11,445,718
Energy
Equipment
&
Services
.............
—
25,204,386
—
25,204,386
Entertainment
.........................
—
17,992,263
—
17,992,263
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
35,510,840
—
35,510,840
Food
&
Staples
Retailing
.................
—
3,293,903
—
3,293,903
Food
Products
........................
—
19,302,068
—
19,302,068
Gas
Utilities
..........................
—
2,232,288
—
2,232,288
Health
Care
Equipment
&
Supplies
.........
—
4,619,692
—
4,619,692
Health
Care
Providers
&
Services
..........
—
53,772,364
—
53,772,364
Hotels,
Restaurants
&
Leisure
.............
—
58,139,273
—
58,139,273
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
230
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Household
Durables
....................
$
—
$
17,369,123
$
—
$
17,369,123
Household
Products
....................
—
11,902,287
—
11,902,287
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
55,751,274
—
55,751,274
Insurance
............................
—
8,394,966
—
8,394,966
Interactive
Media
&
Services
..............
—
17,777,746
—
17,777,746
Internet
&
Direct
Marketing
Retail
..........
—
19,332,265
—
19,332,265
IT
Services
...........................
—
28,195,532
—
28,195,532
Machinery
............................
—
7,252,735
—
7,252,735
Marine
..............................
—
12,160,620
—
12,160,620
Media
...............................
—
64,668,473
—
64,668,473
Metals
&
Mining
.......................
—
25,847,821
—
25,847,821
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
1,219,806
—
1,219,806
Multiline
Retail
........................
—
—
—
a
—
Multi-Utilities
..........................
—
7,239,178
—
7,239,178
Oil,
Gas
&
Consumable
Fuels
.............
—
173,912,056
—
173,912,056
Paper
&
Forest
Products
.................
—
13,166,628
—
13,166,628
Personal
Products
.....................
—
8,640,746
—
8,640,746
Pharmaceuticals
.......................
—
47,678,060
—
47,678,060
Real
Estate
Management
&
Development
....
—
31,563,471
—
31,563,471
Road
&
Rail
..........................
—
20,081,814
—
20,081,814
Software
.............................
—
18,698,162
—
18,698,162
Specialty
Retail
........................
—
30,995,276
—
30,995,276
Technology
Hardware,
Storage
&
Peripherals
.
—
1,811,013
—
1,811,013
Textiles,
Apparel
&
Luxury
Goods
..........
—
1,912,284
—
1,912,284
Thrifts
&
Mortgage
Finance
...............
—
2,426,895
—
2,426,895
Tobacco
.............................
—
13,190,524
—
13,190,524
Trading
Companies
&
Distributors
..........
—
22,745,375
—
22,745,375
Wireless
Telecommunication
Services
.......
—
22,902,026
—
22,902,026
Senior
Floating
Rate
Interests
...............
—
36,455,202
—
a
36,455,202
Marketplace
Loans
......................
—
—
83,510,806
83,510,806
Foreign
Government
and
Agency
Securities
....
—
271,860,655
—
271,860,655
U.S.
Government
and
Agency
Securities
.......
—
316,817,454
—
316,817,454
Asset-Backed
Securities
..................
—
252,255,838
—
252,255,838
Commercial
Mortgage-Backed
Securities
......
—
17,314,664
—
17,314,664
Mortgage-Backed
Securities
................
—
74,162,882
—
74,162,882
Municipal
Bonds
.........................
—
28,120,795
—
28,120,795
Residential
Mortgage-Backed
Securities
......
—
233,426,415
—
233,426,415
Escrows
and
Litigation
Trusts
...............
—
90,000
—
a
90,000
Short
Term
Investments
...................
48,102,735
104,463,966
—
152,566,701
Total
Investments
in
Securities
...........
$88,925,129
$3,171,764,678
$83,539,694
$3,344,229,501
Other
Financial
Instruments:
Forward
exchange
contracts
...............
$
—
$
1,953,291
$
—
$
1,953,291
Futures
contracts
........................
415,766
—
—
415,766
Swap
contracts
.........................
—
2,321,220
—
2,321,220
Total
Other
Financial
Instruments
.........
$415,766
$4,274,511
$—
$4,690,277
Liabilities:
Other
Financial
Instruments:
Forward
exchange
contracts
................
$
—
$
1,728,466
$
—
$
1,728,466
Futures
contracts
........................
1,617,907
—
—
1,617,907
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
231
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
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
year.
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Liabilities:
Other
Financial
Instruments:
Swap
contracts
..........................
$
—
$
5,556,884
$
—
$
5,556,884
Total
Other
Financial
Instruments
.........
$1,617,907
$7,285,350
$—
$8,903,257
a
Includes
securities
determined
to
have
no
value
at
April
30,
2022.
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
c
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Media
...........
$
34,550
$
—
$
—
$
—
$
—
$
—
$
—
$
(5,686)
$
28,864
$
(5,686)
Multiline
Retail
......
—
d
—
—
—
—
—
—
—
—
d
—
Oil,
Gas
&
Consumable
Fuels
..........
21,816
—
—
—
—
—
—
(21,816)
—
d
(21,816)
Warrants
:
Oil,
Gas
&
Consumable
Fuels
..........
1,902
d
—
—
—
—
—
—
(1,878)
24
d
(1,878)
Software
..........
—
d
—
—
—
—
—
—
—
—
d
—
Corporate
Bonds
:
Multiline
Retail
......
—
d
—
d
—
—
—
(64,492)
—
64,492
—
d
64,492
Senior
Floating
Rate
Interests
:
Software
..........
—
d
—
—
—
—
(202)
—
202
—
d
202
Marketplace
Loans
:
Diversified
Financial
Services
........
8,183,547
106,511,831
(28,834,163)
—
—
—
(54,950)
(2,295,459)
83,510,806
(2,531,028)
Asset-Backed
Securities
:
Diversified
Financial
Services
........
923,337
—
—
—
(923,337)
—
—
—
—
—
Escrows
and
Litigation
Trusts
...........
45,000
d
—
d
(152,819)
—
—
—
(716,313)
824,132
—
d
—
Total
Investments
in
Securities
............
$9,210,152
$106,511,831
$(28,986,982)
$—
$(923,337)
$(64,694)
$(771,263)
$(1,436,013)
$83,539,694
$(2,495,714)
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.
c
Transferred
out
of
Level
3
as
a
result
of
the
availability
of
other
significant
observable
valuation
inputs.
d
Includes
securities
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
232
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
April
30,
2022,
are
as
follows:
14.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
15.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Marketplace
Loans:
Diversified
Financial
Services.
$80,328,984
Discounted
cash
flow
Loss-adjusted
discount
rate
2.6%
–
10.6%
(8.9%)
Decrease
c
Projected
loss
rate
4.2%
–
19.8%
(12.3%)
Decrease
c
All
Other
Investments
.
.
.
.
.
.
.
3,210,710
d,e
Total
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.........
$83,539,694
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
c
Represents
a
significant
impact
to
fair
value
and
net
assets.
d
Includes
financial
instruments
with
values
derived
using
private
transaction
prices
or
non-public
third
party
pricing
information
which
is
unobservable.
May
also
include
fair
value
of
immaterial
financial
instruments
and
developed
using
various
valuation
techniques
and
unobservable
inputs.
e
Includes
securities
determined
to
have
no
value
at
April
30,
2022.
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
233
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
(continued)
Abbreviations
Counterparty
BNDP
BNP
Paribas
SA
CITI
Citigroup,
Inc
GSCO
Goldman
Sachs
Group,
Inc.
JPHQ
JPMorgan
Chase
Bank
NA
MSCO
Morgan
Stanley
Selected
Portfolio
BZDIOVRA
Brazil
Inter-Bank
Deposit
Rate
CLO
Collateralized
Loan
Obligation
CMT
Constant
Monthly
U.S.
Treasury
Securities
Yield
Curve
Rate
Index
CVR
Contingent
Value
Right
ETF
Exchange-Traded
Fund
EURIBOR
Euro
Inter-Bank
Offer
Rate
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LIBOR
London
Inter-Bank
Offered
Rate
MBS
Mortgage-Backed
Security
PIK
Payment-In-Kind
SOFR
Secured
Overnight
Financing
Rate
T-Note
Treasury
Note
Cu
r
rency
BRL
Brazilian
Real
COP
Colombian
Peso
DOP
Dominican
Peso
EUR
Euro
IDR
Indonesian
Rupiah
USD
United
States
Dollar
Index
CDX.NA.HY.
Series
number
CDX
North
America
High
Yield
Index
MCDX.
NA.Series
number
MCDX
North
America
Index
Franklin
Strategic
Series
Report
of
Independent
Registered
Public
Accounting
Firm
234
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Strategic
Series
and
Shareholders
of
Franklin
Strategic
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
Strategic
Income
Fund
(one
of
the
funds
constituting
Franklin
Strategic
Series,
referred
to
hereafter
as
the
"Fund")
as
of
April
30,
2022,
the
related
statements
of
operations
for
the
year
ended
April
30,
2022,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2022
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
April
30,
2022,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2022
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2022
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
April
30,
2022
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
PricewaterhouseCoopers
LLP
San
Francisco,
California
June
16,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Strategic
Series
Tax
Information
235
franklintempleton.com
Annual
Report
Franklin
Strategic
Income
Fund
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amount
s
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
April
30,
2022:
Note
(1)
-
The
Law
varies
in
each
state
as
to
whether
and
what
percentage
of
dividend
income
attributable
to
Federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
consult
with
their
tax
advisors
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
taxes.
Pursuant
to:
Amount
Reported
Interest
Earned
from
Federal
Obligations
Note
(1)
$4,001,421
Franklin
Strategic
Series
Board
Members
and
Officers
236
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
Investments
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1991
119
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
100
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
129
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Strategic
Series
237
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
129
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
120
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
120
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Strategic
Series
238
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
101
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(January
2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
ErNst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2013
140
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
39
of
the
investment
companies
in
Franklin
Templeton;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015),
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
and
Trustee
since
2013
and
Vice
President
since
1991
129
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
37
of
the
investment
companies
in
Franklin
Templeton.
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Breda
M.
Beckerle
(1958)
Interim
Chief
Compliance
Officer
Since
January
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Advisory
Services,
LLC,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
41
of
the
investment
companies
in
Franklin
Templeton.
Independent
Board
Members
(continued)
Franklin
Strategic
Series
239
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Sonal
Desai,
Ph.D.
(1963)
Vice
President
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Edward
D.
Perks
(1970)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
President
and
Director,
Franklin
Advisers,
Inc.
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Strategic
Series
240
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019.
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Strategic
Series
Shareholder
Information
241
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
STRATEGIC
SERIES
Franklin
Strategic
Income
Fund
(Fund)
At
an
in-person
meeting
held
on
April
12,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Strategic
Series
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Fund.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Franklin
Strategic
Series
Shareholder
Information
242
franklintempleton.com
Annual
Report
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
January
31,
2022.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
multi-sector
income
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
three-,
five-
and
10-year
periods
was
below
the
median
and
in
the
fifth
quintile
(worst)
of
its
Performance
Universe,
but
for
the
one-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(a
fund’s
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
the
Fund
and
Class
A
shares
for
each
other
fund
in
its
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
13
other
multi-sector
income
funds.
The
Board
noted
that
the
Management
Rate
and
actual
total
expense
ratio
for
the
Fund
were
below
the
medians
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
Franklin
Strategic
Series
Shareholder
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243
franklintempleton.com
Annual
Report
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Fund
had
experienced
a
decrease
in
assets
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Franklin
Strategic
Series
Shareholder
Information
244
franklintempleton.com
Annual
Report
Quarterly
Schedule
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund's
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
194
A
06/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
and
Shareholder
Letter
Franklin
Strategic
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4.
Principal Accountant Fees and Services.
 
(a)      Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $365,711 for the fiscal year ended April 30, 2022 and $384,087 for the fiscal year ended April 30, 2021.
 
(b)      Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
 
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  
 
(c)      Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
 
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning. 
 
(d)      All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4
 
were $9,067 for the fiscal year ended April 30, 2022 and $0 for the fiscal year ended April 30, 2021.
 
The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process. 
 
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $243,743 for the fiscal year ended April 30, 2022 and $36,800 for the fiscal year ended April 30, 2021. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, for the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, benchmarking services in connection with the ICI TA survey, assets under management certification, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with license for employee development tool ProEdge, professional fees in connection with SOC 1 Reports.
 
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
 
        (i)     pre-approval of all audit and audit related services;
 
        (ii)    pre-approval of all non-audit related services to be provided to the Fund by the auditors;
 
        (iii)   pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
 
        (iv)    establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
 
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
 
(f) No disclosures are required by this Item 4(f).
 
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $252,810 for the fiscal year ended April 30, 2022 and $36,800 for the fiscal year ended April 30, 2021.
 
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
 
Item 5. Audit Committee
 
of Listed Registrants. N/A
 
 
Item 6. Schedule of Investments. N/A

 
Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
 
 
Item 8.  Portfolio Managers of Closed-End Management Investment Companies. N/A
 
 
Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
 
 
Item 10.  Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a)
  Evaluation of Disclosure Controls and Procedures. 
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
 
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
 
(b)   Changes in Internal Controls
. 
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
 
 
Item 13. Exhibits.
 
(a)(1) Code of Ethics
 
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
FRANKLIN
STRATEGIC SERIES
 
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  June 29, 2022
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  June 29, 2022
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  June 29, 2022