UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

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: 10/31/22

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

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Series

October

31,

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

Semiannual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

six

months

ended

October

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment

and

rising

wages

and

personal

consumption.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

second

quarter

due

to

declines

in

inventory

and

business

investment

but

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply-chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

rate

at

every

meeting

during

the

six-

month

reporting

period,

increasing

it

to

a

range

of

3.00%–

3.25%

by

period-end.

The

Fed

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

agency

mortgage-backed

securities

holdings,

and

anticipated

future

federal

funds

rate

increases

would

be

appropriate.

Shortly

after

the

reporting

period,

the

Fed

raised

the

federal

funds

rate

again

by

0.75%

at

its

November

2022

meeting,

increasing

it

to

a

range

of

3.75%–4.00%.

During

the

six-month

period,

investor

concerns

about

inflation,

geopolitics

and

interest

rates

pressured

stock

and

bond

valuations.

In

this

environment,

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

-5.50%

total

return

for

the

six-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’

semiannual

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

October

31,

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

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

Growth

Opportunities

Fund

4

Franklin

Small

Cap

Growth

Fund

9

Franklin

Small-Mid

Cap

Growth

Fund

14

Financial

Highlights

and

Schedules

of

Investments

19

Financial

Statements

51

Notes

to

Financial

Statements

56

Shareholder

Information

82

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

-5.50%

total

return

for

the

six

months

ended

October

31,

2022.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices,

particularly

as

the

period

progressed.

Although

consumer

spending

continued

to

rise,

deteriorating

financial

conditions

negatively

impacted

consumer

sentiment,

which

improved

slightly

at

the

end

of

the

period

after

falling

in

June

2022

to

the

lowest

level

in

over

60

years.

Elevated

inflation

was

a

major

concern

for

both

consumers

and

investors,

as

inflation

accelerated

in

June

2022

to

the

highest

rate

since

1981.

Continued

supply-chain

disruptions,

strong

consumer

demand,

and

volatile

energy

prices

drove

inflation

higher.

Russia’s

invasion

of

Ukraine

also

disrupted

financial

markets

and

led

to

a

rise

in

oil

and

commodity

prices,

although

much

of

that

increase

abated

by

period-end.

The

unemployment

rate

increased

marginally

from

3.6%

in

April

2022

to

3.7%

in

October

2022

given

more

people

entering

the

labor

market,

although

notable

employment

gains

occurred

in

the

leisure

and

hospitality

and

health

care

sectors.

Wage

growth

remained

strong

throughout

the

period,

adding

to

some

investors’

inflation

concerns.

U.S.

gross

domestic

product

expanded

in

2022’s

third

quarter,

recovering

from

two

successive

quarters

of

contraction,

amid

a

narrowing

trade

deficit

and

strong

consumer

spending.

Increased

nonresidential

fixed

investment

and

government

spending

also

contributed

to

the

third-quarter

economic

growth.

Rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses.

Mortgage

rates

reached

the

highest

level

since

2007,

and

new

home

construction

slowed

toward

period-end.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

continued

to

raise

the

federal

funds

target

rate.

The

Fed

raised

the

federal

funds

rate

at

each

of

its

four

meetings

during

the

period

to

end

at

a

range

of

3.00%–

3.25%.

The

Fed

noted

in

its

September

2022

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

Fed

Chair

Jerome

Powell

indicated

that

reducing

inflation

was

likely

to

require

a

period

of

below-trend

growth.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

October

31,

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

Semiannual

Report

Franklin

Growth

Opportunities

Fund

This

semiannual

report

for

Franklin

Growth

Opportunities

Fund

covers

the

period

ended

October

31,

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

-12.98%

cumulative

total

return

for

the

six

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

-7.70%

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

-5.50%

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

six-month

period

under

review,

Franklin

Growth

Opportunities

Fund

underperformed

its

benchmark

in

a

period

of

market

volatility

brought

on

by

inflation

fears

and

economic

growth

concerns.

Much

of

the

Fund’s

relative

underperformance

occurred

in

the

health

care

and

information

technology

(IT)

sectors,

where

stock

selection

pressured

results.

In

the

health

care

sector,

Figs

and

West

Pharmaceutical

Services

were

among

the

Fund’s

five

largest

detractors.

Health

care

apparel

company

Figs

faced

supply-chain

challenges

and

inventory

constraints

affecting

medical

scrub

products.

West

Pharmaceutical

Services

is

a

leading

manufacturer

of

packaging

components

and

delivery

systems

for

injectable

drugs

and

healthcare

products.

While

the

company’s

high-value

product

sales

in

its

biologics

and

pharmaceuticals

businesses

continue

to

be

strong,

a

Portfolio

Composition

10/31/22

%

of

Total

Net

Assets

Software

21.3%

IT

Services

8.0%

Life

Sciences

Tools

&

Services

6.4%

Internet

&

Direct

Marketing

Retail

6.3%

Technology

Hardware,

Storage

&

Peripherals

5.4%

Capital

Markets

4.9%

Semiconductors

&

Semiconductor

Equipment

4.8%

Health

Care

Providers

&

Services

4.5%

Interactive

Media

&

Services

4.2%

Pharmaceuticals

3.6%

Health

Care

Equipment

&

Supplies

3.6%

Hotels,

Restaurants

&

Leisure

2.8%

Equity

Real

Estate

Investment

Trusts

(REITs)

2.8%

Road

&

Rail

2.4%

Other*

17.6%

Short-Term

Investments

&

Other

Net

Assets

1.4%

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

24

.

Franklin

Growth

Opportunities

Fund

5

franklintempleton.com

Semiannual

Report

slowdown

in

COVID-related

products

weighed

on

growth.

In

contrast,

increasing

demand

for

health

insurance

along

with

price

hikes

passed

on

to

customers

were

revenue

drivers

for

UnitedHealth

Group

in

the

health

care

sector.

In

the

IT

sector,

a

smaller-than-index

stake

in

technology

bellwether

Apple

was

a

leading

relative

detractor.

The

company

continues

to

perform

well

with

robust

growth

led

by

its

iPhone

and

Apple

Services

businesses.

Bill.com

Holdings

was

another

detractor

in

IT.

The

payment

solutions

provider

tracked

markets

lower

despite

the

company’s

healthy

fundamentals.

In

contrast,

an

underweighting

in

Microsoft

helped

relative

performance.

The

weakening

macroeconomic

backdrop

and

supply-chain

headwinds

were

among

the

obstacles

facing

the

software

giant.

Elsewhere,

tower

operator

SBA

Communications

delivered

lackluster

returns

in

the

real

estate

sector

as

rising

interest

rates

impacted

results,

despite

strong

fundamentals.

In

contrast,

real

estate

data

and

analytics

company

CoStar

Group

was

a

top

contributor

in

the

industrials

sector,

benefiting

from

strong

rental

and

commercial

properties

markets.

In

the

financials

sector,

investment

index

provider

MSCI

saw

strength

in

its

ESG

(environment,

social

and

governance)

and

climate

segment

businesses,

which

helped

drive

revenue

growth

for

the

company.

Furthermore,

an

underweighting

in

electric

vehicle

manufacturer

Tesla

helped

relative

performance

in

the

consumer

discretionary

sector.

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

October

31,

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

10/31/22

Company

Industry

%

of

Total

Net

Assets

a

aa

Amazon.com,

Inc.

6.3%

Internet

&

Direct

Marketing

Retail

Apple,

Inc.

5.4%

Technology

Hardware,

Storage

&

Peripherals

Mastercard

,

Inc.

5.2%

IT

Services

Microsoft

Corp.

4.9%

Software

UnitedHealth

Group,

Inc.

3.4%

Health

Care

Providers

&

Services

Alphabet,

Inc.

3.2%

Interactive

Media

&

Services

ServiceNow

,

Inc.

2.8%

Software

Danaher

Corp.

2.8%

Life

Sciences

Tools

&

Services

SBA

Communications

Corp.

2.8%

Equity

Real

Estate

Investment

Trusts

(REITs)

CoStar

Group,

Inc.

2.3%

Professional

Services

Performance

Summary

as

of

October

31,

2022

Franklin

Growth

Opportunities

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

table

does

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

10/31/2

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

6-Month

-12.98%

-17.77%

1-Year

-37.00%

-40.46%

5-Year

+48.87%

+7.07%

10-Year

+204.25%

+11.14%

Advisor

6-Month

-12.86%

-12.86%

1-Year

-36.84%

-36.84%

5-Year

+50.75%

+8.56%

10-Year

+212.49%

+12.07%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Growth

Opportunities

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

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.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

consider-

ations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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.

Total

Annual

Operating

Expenses

5

Share

Class

A

0.90%

Advisor

0.65%

Your

Fund’s

Expenses

Franklin

Growth

Opportunities

Fund

8

franklintempleton.com

Semiannual

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

184/365

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

5/1/22

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$870.20

$4.38

$1,020.52

$4.73

0.93%

C

$1,000

$867.00

$7.90

$1,016.74

$8.53

1.68%

R

$1,000

$868.90

$5.55

$1,019.26

$6.00

1.18%

R6

$1,000

$871.80

$2.73

$1,022.28

$2.95

0.58%

Advisor

$1,000

$871.40

$3.20

$1,021.79

$3.46

0.68%

9

franklintempleton.com

Semiannual

Report

Franklin

Small

Cap

Growth

Fund

This

semiannual

report

for

Franklin

Small

Cap

Growth

Fund

covers

the

period

ended

October

31,

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

-8.44%

cumulative

total

return

for

the

six

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

+1.02%

cumulative

total

return.

2

The

Standard

&

Poor’s

500

Index

(S&P

500),

which

tracks

the

broad

U.S.

stock

market,

posted

a

-5.50%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

11

.

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

six-month

period

under

review,

the

Fund

underperformed

its

benchmark

during

a

time

of

heightened

market

volatility

brought

on

by

inflation

fears

and

economic

growth

concerns.

Relative

performance

was

negatively

impacted

by

stock

selection

in

the

information

technology

(IT),

consumer

discretionary

and

industrials

sectors.

Leading

detractors

in

the

IT

sector

included

CS

Disco

and

SiTime.

Legal

technology

services

company

CS

Disco

lowered

its

guidance

due

to

decreased

usage

of

its

managed

review

service,

which

typically

generates

about

20%

of

total

company

revenue.

SiTime

is

a

timing-solutions

manufacturer

that,

despite

reaching

record-level

revenue,

reported

a

slowdown

in

order

growth

and

meaningfully

reduced

its

outlook,

which

weighed

on

stock

performance.

High

inflation

Portfolio

Composition

10/31/22

%

of

Total

Net

Assets

Software

9.4%

Biotechnology

7.9%

Health

Care

Equipment

&

Supplies

6.4%

Hotels,

Restaurants

&

Leisure

6.1%

IT

Services

5.4%

Specialty

Retail

5.2%

Aerospace

&

Defense

5.1%

Machinery

4.4%

Semiconductors

&

Semiconductor

Equipment

4.2%

Food

Products

4.0%

Capital

Markets

3.6%

Health

Care

Providers

&

Services

3.5%

Trading

Companies

&

Distributors

3.3%

Household

Durables

3.0%

Other*

27.1%

Short-Term

Investments

&

Other

Net

Assets

1.4%

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

34

.

Franklin

Small

Cap

Growth

Fund

10

franklintempleton.com

Semiannual

Report

and

rising

costs

hurt

pet

retailer

Petco

Health

&

Wellness

in

the

consumer

discretionary

sector.

The

company

reported

slowing

sales

that

were

driven

by

macroeconomic

pressures

rather

than

competition.

The

industrials

sector

delivered

the

Fund’s

biggest

detractor

and

contributor

over

the

period.

A

position

in

Allegiant

Travel

held

back

performance

as

fuel

costs

and

other

expenses

were

a

drag

on

earnings

for

the

leisure

travel

company.

Conversely,

RBC

Bearings,

which

makes

precision

bearings

used

in

manufacturing,

was

a

top

contributor

as

demand

for

its

products

remained

strong.

Three

of

the

Fund’s

biggest

stock

contributors

hailed

from

the

health

care

sector:

member-based

health

care

provider

1Life

Healthcare

(not

held

at

period-end),

medical

technology

provider

Privia

Health

Group

and

blood

disorder

specialist

Global

Blood

Therapeutics

(not

held

at

period-

end).

In

the

case

of

1Life

Healthcare

and

Global

Blood

Therapeutics,

acquisition

announcements

boosted

their

stocks.

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

October

31,

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

10/31/22

Company

Industry

%

of

Total

Net

Assets

a

aa

HealthEquity,

Inc.

2.0%

Health

Care

Providers

&

Services

RBC

Bearings,

Inc.

2.0%

Machinery

Paycor

HCM,

Inc.

1.9%

Software

Performance

Food

Group

Co.

1.9%

Food

&

Staples

Retailing

Arcosa,

Inc.

1.8%

Construction

&

Engineering

BWX

Technologies,

Inc.

1.8%

Aerospace

&

Defense

Univar

Solutions,

Inc.

1.7%

Trading

Companies

&

Distributors

Red

Rock

Resorts,

Inc.

1.7%

Hotels,

Restaurants

&

Leisure

Simply

Good

Foods

Co.

(The)

1.7%

Food

Products

Texas

Roadhouse,

Inc.

1.6%

Hotels,

Restaurants

&

Leisure

Performance

Summary

as

of

October

31,

2022

Franklin

Small

Cap

Growth

Fund

11

franklintempleton.com

Semiannual

Report

The

performance

table

does

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

10/31/22

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

6-Month

-8.44%

-13.45%

1-Year

-34.54%

-38.15%

5-Year

+36.61%

+5.24%

10-Year

+168.43%

+9.75%

Advisor

6-Month

-8.37%

-8.37%

1-Year

-34.39%

-34.39%

5-Year

+38.28%

+6.70%

10-Year

+175.42%

+10.66%

See

page

12

for

Performance

Summary

footnotes.

Franklin

Small

Cap

Growth

Fund

Performance

Summary

12

franklintempleton.com

Semiannual

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

security

in

which

the

Fund

invests

may

become

less

liquid

or

even

illiquid.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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.

Total

Annual

Operating

Expenses

5

Share

Class

A

1.03%

Advisor

0.78%

Your

Fund’s

Expenses

Franklin

Small

Cap

Growth

Fund

13

franklintempleton.com

Semiannual

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

184/365

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

5/1/22

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$915.60

$5.36

$1,019.61

$5.66

1.11%

C

$1,000

$911.90

$8.95

$1,015.84

$9.44

1.86%

R

$1,000

$914.30

$6.57

$1,018.35

$6.92

1.36%

R6

$1,000

$917.50

$3.18

$1,021.89

$3.35

0.66%

Advisor

$1,000

$916.30

$4.15

$1,020.87

$4.38

0.86%

14

franklintempleton.com

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

Fund

This

semiannual

report

for

Franklin

Small-Mid

Cap

Growth

Fund

covers

the

period

ended

October

31,

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

-10.58%

cumulative

total

return

for

the

six

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

-4.69%

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

-5.50%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

16

.

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

six-month

period

under

review,

negative

relative

performance

for

Franklin

Small-Mid

Cap

Growth

Fund

was

driven

mainly

by

stock

selection

in

the

information

technology

(IT)

sector.

A

leading

detractor

was

timing-

solutions

manufacturer

SiTime.

Despite

reaching

record-level

revenue,

the

company

reported

a

slowdown

in

order

growth

and

meaningfully

reduced

its

outlook,

which

weighed

on

stock

performance.

An

underweighting

in

Enphase

Energy,

Portfolio

Composition

10/31/22

%

of

Total

Net

Assets

Software

13.7%

Health

Care

Equipment

&

Supplies

6.0%

Hotels,

Restaurants

&

Leisure

6.0%

Specialty

Retail

5.6%

Capital

Markets

4.7%

IT

Services

4.7%

Semiconductors

&

Semiconductor

Equipment

4.7%

Life

Sciences

Tools

&

Services

4.4%

Professional

Services

3.3%

Electronic

Equipment,

Instruments

&

Components

3.3%

Biotechnology

2.9%

Road

&

Rail

2.7%

Equity

Real

Estate

Investment

Trusts

(REITs)

2.6%

Textiles,

Apparel

&

Luxury

Goods

2.5%

Other*

27.6%

Short-Term

Investments

&

Other

Net

Assets

5.3%

1.

The

Russell

2500

TM

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

45

.

Franklin

Small-Mid

Cap

Growth

Fund

15

franklintempleton.com

Semiannual

Report

which

manufactures

chips

for

solar

power,

also

hindered

relative

performance

in

the

IT

sector.

The

shares

of

the

company

have

been

rising

on

strong

demand

for

its

batteries

as

homeowners

face

rising

energy

prices

and

seek

energy

alternatives.

A

position

in

Paylocity

Holding,

on

the

other

hand,

helped

Fund

performance.

Paylocity

provides

cloud-

based

payroll

software.

The

company

has

been

benefiting

from

a

tight

labor

market

and

strong

sales

environment

as

demand

for

human

capital

management

platforms

surges.

A

significant

underweighting

in

the

energy

sector

dampened

relative

returns

but

delivered

an

absolute

gain.

Energy

companies

have

been

benefiting

from

strong

demand,

high

oil

prices

and

improving

cash

flows.

While

health

care

was

an

overall

detractor

at

the

sector

level,

the

Fund’s

investment

in

Dexcom

boosted

results.

News

that

Medicare

may

expand

coverage

for

continuous

glucose

monitors

is

a

huge

growth

opportunity

for

Dexcom’s

diabetes

management

business.

In

the

industrials

sector,

real

estate

data

and

analytics

company

CoStar

Group

was

the

Fund’s

biggest

stock

contributor

to

relative

returns.

The

company

has

been

benefiting

from

strong

rental

and

commercial

properties

markets.

Conversely,

Lyft

was

a

drag

on

industrials

sector

performance.

The

ride-share

company

faced

headwinds

that

included

higher

gas

prices

and

a

shortage

of

drivers.

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

McCarthy,

CFA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

October

31,

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

10/31/22

Company

Industry

%

of

Total

Net

Assets

a

aa

Synopsys,

Inc.

2.9%

Software

CoStar

Group,

Inc.

2.7%

Professional

Services

Chipotle

Mexican

Grill,

Inc.

2.3%

Hotels,

Restaurants

&

Leisure

Dexcom

,

Inc.

2.2%

Health

Care

Equipment

&

Supplies

Lululemon

Athletica

,

Inc.

2.1%

Textiles,

Apparel

&

Luxury

Goods

MSCI,

Inc.

2.0%

Capital

Markets

Old

Dominion

Freight

Line,

Inc.

2.0%

Road

&

Rail

Tractor

Supply

Co.

2.0%

Specialty

Retail

Fastenal

Co.

1.8%

Trading

Companies

&

Distributors

IDEXX

Laboratories,

Inc.

1.8%

Health

Care

Equipment

&

Supplies

Performance

Summary

as

of

October

31,

2022

Franklin

Small-Mid

Cap

Growth

Fund

16

franklintempleton.com

Semiannual

Report

The

performance

table

does

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

10

/3

1

/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

6-Month

-10.58%

-15.51%

1-Year

-37.53%

-40.96%

5-Year

+46.73%

+6.75%

10-Year

+175.04%

+10.02%

Advisor

6-Month

-10.47%

-10.47%

1-Year

-37.38%

-37.38%

5-Year

+48.53%

+8.23%

10-Year

+181.90%

+10.92%

See

page

17

for

Performance

Summary

footnotes.

Franklin

Small-Mid

Cap

Growth

Fund

Performance

Summary

17

franklintempleton.com

Semiannual

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,

re-

gions,

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.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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.

Total

Annual

Operating

Expenses

5

Share

Class

A

0.85%

Advisor

0.60%

Your

Fund’s

Expenses

Franklin

Small-Mid

Cap

Growth

Fund

18

franklintempleton.com

Semiannual

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

184/365

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

5/1/22

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$894.20

$4.19

$1,020.78

$4.47

0.88%

C

$1,000

$890.70

$7.76

$1,017.00

$8.27

1.63%

R

$1,000

$893.30

$5.38

$1,019.52

$5.74

1.13%

R6

$1,000

$895.90

$2.33

$1,022.75

$2.48

0.49%

Advisor

$1,000

$895.30

$3.00

$1,022.04

$3.20

0.63%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$43.14

$56.25

$39.60

$39.57

$38.58

$34.81

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.07)

(0.28)

(0.26)

(0.14)

(0.13)

(0.10)

Net

realized

and

unrealized

gains

(losses)

(5.53)

(7.76)

20.03

3.59

5.29

7.03

Total

from

investment

operations

........

(5.60)

(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

period

..........

$37.54

$43.14

$56.25

$39.60

$39.57

$38.58

Total

return

c

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

(12.98)%

(16.57)%

50.64%

8.90%

15.91%

20.43%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.94%

0.90%

0.91%

0.95%

0.94%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.93%

0.89%

0.91%

f

0.95%

f

0.94%

f

0.99%

Net

investment

(loss)

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

(0.34)%

(0.49)%

(0.51)%

(0.35)%

(0.32)%

(0.27)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,671,287

$3,215,834

$4,203,693

$2,883,392

$2,819,007

$2,428,175

Portfolio

turnover

rate

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

5.16%

g

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$32.55

$43.87

$31.61

$32.47

$32.67

$30.12

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.16)

(0.54)

(0.50)

(0.35)

(0.35)

(0.33)

Net

realized

and

unrealized

gains

(losses)

(4.17)

(5.71)

15.88

2.91

4.32

6.04

Total

from

investment

operations

........

(4.33)

(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

period

..........

$28.22

$32.55

$43.87

$31.61

$32.47

$32.67

Total

return

c

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

(13.30)%

(17.20)%

49.47%

8.10%

15.10%

19.53%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.69%

1.65%

1.66%

1.70%

1.69%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.68%

1.64%

1.66%

f

1.70%

f

1.69%

f

1.74%

Net

investment

(loss)

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

(1.09)%

(1.23)%

(1.26)%

(1.10)%

(1.07)%

(1.02)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$121,500

$158,895

$278,804

$216,757

$244,574

$400,295

Portfolio

turnover

rate

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

5.16%

g

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$40.06

$52.69

$37.32

$37.57

$36.93

$33.52

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.11)

(0.39)

(0.36)

(0.22)

(0.21)

(0.18)

Net

realized

and

unrealized

gains

(losses)

(5.14)

(7.17)

18.85

3.39

5.02

6.75

Total

from

investment

operations

........

(5.25)

(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

period

..........

$34.81

$40.06

$52.69

$37.32

$37.57

$36.93

Total

return

c

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

(13.11)%

(16.79)%

50.26%

8.64%

15.66%

20.14%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.19%

1.15%

1.15%

1.20%

1.19%

1.27%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.18%

1.14%

1.15%

f

1.20%

f

1.19%

f

1.24%

Net

investment

(loss)

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

(0.59)%

(0.73)%

(0.75)%

(0.60)%

(0.57)%

(0.52)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$21,791

$27,009

$40,396

$31,060

$37,105

$36,582

Portfolio

turnover

rate

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

5.16%

g

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$48.98

$63.06

$43.97

$43.42

$41.78

$37.30

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

—

c

(0.10)

(0.10)

0.01

0.01

0.07

Net

realized

and

unrealized

gains

(losses)

(6.28)

(8.91)

22.31

3.96

5.80

7.57

Total

from

investment

operations

........

(6.28)

(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

period

..........

$42.70

$48.98

$63.06

$43.97

$43.42

$41.78

Total

return

d

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

(12.82)%

(16.32)%

51.13%

9.34%

16.26%

20.98%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

0.59%

0.57%

0.57%

0.59%

0.59%

0.58%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.58%

0.57%

g

0.57%

g

0.59%

g

0.58%

0.55%

Net

investment

income

(loss)

..........

0.01%

(0.16)%

(0.17)%

0.01%

0.04%

0.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$394,252

$461,475

$563,918

$383,208

$418,174

$369,688

Portfolio

turnover

rate

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

5.16%

h

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

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$48.07

$62.01

$43.31

$42.87

$41.34

$37.02

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.02)

(0.15)

(0.14)

(0.04)

(0.03)

(0.01)

Net

realized

and

unrealized

gains

(losses)

(6.16)

(8.72)

21.96

3.90

5.73

7.49

Total

from

investment

operations

........

(6.18)

(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

period

..........

$41.89

$48.07

$62.01

$43.31

$42.87

$41.34

Total

return

c

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

(12.86)%

(16.37)%

51.01%

9.20%

16.16%

20.71%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.69%

0.65%

0.66%

0.70%

0.69%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.68%

0.64%

0.66%

f

0.70%

f

0.69%

f

0.74%

Net

investment

(loss)

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

(0.09)%

(0.24)%

(0.26)%

(0.10)%

(0.07)%

(0.02)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$327,868

$636,524

$643,449

$467,727

$506,964

$583,509

Portfolio

turnover

rate

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

5.16%

g

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Growth

Opportunities

Fund

franklintempleton.com

Semiannual

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

96.3%

Aerospace

&

Defense

0.3%

a

Axon

Enterprise,

Inc.

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

United

States

9,700

$

1,410,768

a,b,c

Space

Exploration

Technologies

Corp.,

A

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

United

States

142,857

9,999,990

11,410,758

Automobiles

1.5%

a

Rivian

Automotive,

Inc.,

A

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

United

States

516,738

18,070,328

a

Tesla,

Inc.

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

United

States

149,082

33,922,118

51,992,446

Beverages

2.2%

Constellation

Brands,

Inc.,

A

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

United

States

105,048

25,955,260

a

Monster

Beverage

Corp.

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

United

States

562,312

52,699,880

78,655,140

Biotechnology

0.2%

a

Heron

Therapeutics,

Inc.

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

United

States

2,051,293

7,897,478

Capital

Markets

4.9%

Ares

Management

Corp.

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

United

States

96,007

7,280,211

Intercontinental

Exchange,

Inc.

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

United

States

311,587

29,778,369

MSCI,

Inc.

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

United

States

171,693

80,499,980

S&P

Global,

Inc.

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

United

States

174,352

56,010,580

173,569,140

Chemicals

1.6%

Linde

plc

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

United

Kingdom

185,449

55,143,260

Commercial

Services

&

Supplies

1.1%

a,b,c

Celonis

SE

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

Germany

4,619

1,708,060

a,b,c

Celonis

SE,

D

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

Germany

25,571

9,455,900

Republic

Services,

Inc.

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

United

States

220,514

29,244,567

40,408,527

Electric

Utilities

1.2%

NextEra

Energy,

Inc.

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

United

States

542,062

42,009,805

Electronic

Equipment,

Instruments

&

Components

0.0%

†

a

Mobileye

Global,

Inc.,

A

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

Israel

27,600

728,088

Entertainment

0.5%

a

Walt

Disney

Co.

(The)

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

United

States

177,004

18,858,006

Equity

Real

Estate

Investment

Trusts

(REITs)

2.8%

SBA

Communications

Corp.

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

United

States

360,486

97,295,171

Food

&

Staples

Retailing

0.3%

Costco

Wholesale

Corp.

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

United

States

17,676

8,864,514

Food

Products

0.7%

a

Freshpet,

Inc.

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

United

States

192,209

11,330,721

Lamb

Weston

Holdings,

Inc.

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

United

States

162,620

14,021,096

25,351,817

Health

Care

Equipment

&

Supplies

3.6%

a

Edwards

Lifesciences

Corp.

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

United

States

463,753

33,589,630

a

Figs,

Inc.,

A

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

United

States

1,697,109

12,524,665

a

IDEXX

Laboratories,

Inc.

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

United

States

52,443

18,862,698

a,b,c

IL

MAKIAGE

Cosmetics

(2013)

Ltd.

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

Israel

37,734

15,468,347

a

Intuitive

Surgical,

Inc.

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

United

States

183,320

45,182,880

125,628,220

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

4.0%

a

Guardant

Health,

Inc.

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

United

States

437,773

$

21,669,764

UnitedHealth

Group,

Inc.

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

United

States

217,301

120,634,650

142,304,414

Health

Care

Technology

1.1%

a

Veeva

Systems,

Inc.,

A

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

United

States

226,521

38,041,937

Hotels,

Restaurants

&

Leisure

2.8%

a

Chipotle

Mexican

Grill,

Inc.

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

United

States

39,696

59,477,708

a,d

Dutch

Bros,

Inc.,

A

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

United

States

462,699

17,078,220

a,d

Sweetgreen,

Inc.,

A

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

United

States

1,185,200

22,044,720

98,600,648

Industrial

Conglomerates

1.2%

Honeywell

International,

Inc.

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

United

States

213,758

43,610,907

Interactive

Media

&

Services

4.2%

a

Alphabet,

Inc.,

C

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

United

States

1,204,420

114,010,397

a

Meta

Platforms,

Inc.,

A

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

United

States

252,310

23,505,199

a

ZoomInfo

Technologies,

Inc.,

A

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

United

States

279,339

12,438,966

149,954,562

Internet

&

Direct

Marketing

Retail

6.3%

a

Amazon.com,

Inc.

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

United

States

2,185,961

223,929,846

IT

Services

8.0%

a,b,c

Canva,

Inc.

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

Australia

11,829

8,386,412

Mastercard,

Inc.,

A

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

United

States

562,080

184,463,414

a

Snowflake,

Inc.,

A

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

United

States

103,390

16,573,417

Visa,

Inc.,

A

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

United

States

359,967

74,570,764

283,994,007

Leisure

Products

1.8%

a,b,c

Fanatics

Holdings,

Inc.

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

United

States

1,029,939

63,764,163

Life

Sciences

Tools

&

Services

6.4%

Danaher

Corp.

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

United

States

387,023

97,402,078

a

Illumina,

Inc.

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

United

States

95,195

21,782,520

Thermo

Fisher

Scientific,

Inc.

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

United

States

88,067

45,263,796

West

Pharmaceutical

Services,

Inc.

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

United

States

261,251

60,113,855

224,562,249

Machinery

0.6%

a

Proterra,

Inc.

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

United

States

3,180,676

19,847,418

Pharmaceuticals

3.6%

AstraZeneca

plc,

ADR

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

United

Kingdom

897,875

52,804,029

a

Catalent,

Inc.

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

United

States

340,278

22,366,473

Eli

Lilly

&

Co.

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

United

States

146,831

53,166,037

128,336,539

Professional

Services

2.3%

a

CoStar

Group,

Inc.

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

United

States

986,316

81,588,060

Road

&

Rail

2.4%

a

Uber

Technologies,

Inc.

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

United

States

1,226,774

32,595,385

Union

Pacific

Corp.

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

United

States

262,175

51,685,180

84,280,565

Semiconductors

&

Semiconductor

Equipment

4.8%

Analog

Devices,

Inc.

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

United

States

231,566

33,025,943

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

a,d

GLOBALFOUNDRIES,

Inc.

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

United

States

270,998

$

15,365,587

Monolithic

Power

Systems,

Inc.

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

United

States

150,900

51,223,005

NVIDIA

Corp.

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

United

States

510,963

68,964,676

168,579,211

Software

19.7%

a

Adobe,

Inc.

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

United

States

91,607

29,176,830

a

Atlassian

Corp.,

A

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

United

States

108,932

22,083,784

a

Bill.com

Holdings,

Inc.

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

United

States

395,635

52,761,884

a,b,c,e

ClearMotion,

Inc.

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

United

States

6,309,366

581,496

a

Confluent,

Inc.,

A

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

United

States

527,638

14,182,909

a

Crowdstrike

Holdings,

Inc.,

A

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

United

States

91,101

14,685,481

a

HashiCorp,

Inc.,

A

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

United

States

562,494

17,285,441

Intuit,

Inc.

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

United

States

168,602

72,077,355

Microsoft

Corp.

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

United

States

749,290

173,932,688

a,d

Monday.com

Ltd.

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

United

States

42,563

4,551,687

a

Paycom

Software,

Inc.

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

United

States

78,421

27,133,666

Roper

Technologies,

Inc.

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

United

States

103,989

43,107,600

a

Salesforce,

Inc.

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

United

States

229,200

37,265,628

a

ServiceNow,

Inc.

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

United

States

233,569

98,271,821

a

Synopsys,

Inc.

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

United

States

181,710

53,159,261

a

Tyler

Technologies,

Inc.

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

United

States

57,246

18,509,349

a

Workday,

Inc.,

A

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

United

States

126,323

19,683,650

698,450,530

Technology

Hardware,

Storage

&

Peripherals

5.4%

Apple,

Inc.

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

United

States

1,238,359

189,889,969

Textiles,

Apparel

&

Luxury

Goods

0.8%

NIKE,

Inc.,

B

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

United

States

290,502

26,923,725

Total

Common

Stocks

(Cost

$1,681,660,271)

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

3,404,471,120

Convertible

Preferred

Stocks

1.1%

Software

1.1%

a,b,c

Databricks,

Inc.,

G

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

United

States

338,280

17,032,527

a,b,c

Lacework,

Inc.,

D

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

United

States

810,440

16,615,452

a,b,c

OneTrust

LLC,

C

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

United

States

517,056

5,262,387

38,910,366

Total

Convertible

Preferred

Stocks

(Cost

$50,470,099)

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

38,910,366

Preferred

Stocks

1.2%

Commercial

Services

&

Supplies

0.2%

a,b,c,e

Optoro,

Inc.,

E

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

United

States

556,026

8,357,218

a

Health

Care

Providers

&

Services

0.5%

a,b,c

Tempus

Labs,

Inc.,

F

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

United

States

504,854

12,353,013

a,b,c

Tempus

Labs,

Inc.,

G

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

United

States

126,131

3,086,235

15,439,248

Software

0.5%

a,b,c,e

ClearMotion,

Inc.,

A-4

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

United

States

2,606,463

314,564

a,b,c,e

Talkdesk,

Inc.,

C

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

United

States

1,753,060

13,065,426

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Preferred

Stocks

(continued)

Software

(continued)

a,b,c

Tanium,

Inc.,

G

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

United

States

805,800

$

5,300,904

18,680,894

Total

Preferred

Stocks

(Cost

$44,049,690)

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

42,477,360

Warrants

Warrants

0.0%

†

Software

0.0%

†

a,b,c,e

ClearMotion,

Inc.,

2/01/49

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

United

States

1,042,585

43,737

Total

Warrants

(Cost

$–)

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

43,737

Shares

Escrows

and

Litigation

Trusts

0.0%

a,b

Proterra,

Inc.,

Escrow

Account

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

United

States

382,355

—

a,b

Wheels

Up

Experience,

Inc.,

Escrow

Account

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

United

States

102,780

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

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

—

Total

Long

Term

Investments

(Cost

$1,776,180,060)

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

3,485,902,583

a

Short

Term

Investments

3.7%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

2.3%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

81,152,728

81,152,728

Total

Money

Market

Funds

(Cost

$81,152,728)

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

81,152,728

a

a

a

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.4%

Money

Market

Funds

1.4%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

51,026,230

51,026,230

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$51,026,230)

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

51,026,230

Total

Short

Term

Investments

(Cost

$132,178,958

)

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

132,178,958

a

Total

Investments

(Cost

$1,908,359,018)

102.3%

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

$3,618,081,541

Other

Assets,

less

Liabilities

(2.3)%

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

(81,384,046)

Net

Assets

100.0%

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

$3,536,697,495

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

See

A

bbreviations

on

page

81

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

12

regarding

fair

value

measurements.

c

See

Note

9

regarding

restricted

securities.

d

A

portion

or

all

of

the

security

is

on

loan

at

October

31,

2022.

See

Note

1(d).

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(d)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.78

$30.08

$18.85

$21.46

$23.01

$19.60

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.04)

(0.14)

(0.18)

(0.11)

(0.15)

(0.13)

Net

realized

and

unrealized

gains

(losses)

(1.46)

(7.89)

14.24

(1.07)

2.86

3.96

Total

from

investment

operations

........

(1.50)

(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

period

..........

$16.28

$17.78

$30.08

$18.85

$21.46

$23.01

Total

return

c

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

(8.44)%

(29.53)%

76.43%

(6.25)%

16.06%

19.71%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.13%

1.03%

1.03%

1.07%

1.07%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.11%

1.03%

f

1.02%

1.06%

1.06%

1.10%

Net

investment

(loss)

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

(0.53)%

(0.54)%

(0.69)%

(0.51)%

(0.68)%

(0.61)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$747,169

$860,536

$1,244,591

$686,791

$713,442

$665,251

Portfolio

turnover

rate

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

11.81%

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

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

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.37

$22.57

$14.69

$17.15

$19.41

$16.71

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.07)

(0.25)

(0.29)

(0.21)

(0.28)

(0.25)

Net

realized

and

unrealized

gains

(losses)

(1.02)

(5.68)

11.00

(0.82)

2.28

3.37

Total

from

investment

operations

........

(1.09)

(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

period

..........

$11.28

$12.37

$22.57

$14.69

$17.15

$19.41

Total

return

c

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

(8.81)%

(30.07)%

75.13%

(6.97)%

15.31%

18.79%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.87%

1.78%

1.78%

1.82%

1.82%

1.86%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.86%

1.78%

f

1.77%

1.81%

1.81%

1.85%

Net

investment

(loss)

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

(1.26)%

(1.31)%

(1.43)%

(1.26)%

(1.43)%

(1.36)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$22,311

$32,755

$86,394

$66,269

$90,513

$132,116

Portfolio

turnover

rate

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

11.81%

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

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.

Semiannual

Report

31

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.10

$27.76

$17.58

$20.15

$21.93

$18.74

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.06)

(0.19)

(0.23)

(0.15)

(0.20)

(0.17)

Net

realized

and

unrealized

gains

(losses)

(1.32)

(7.20)

13.24

(0.99)

2.68

3.78

Total

from

investment

operations

........

(1.38)

(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

period

..........

$14.72

$16.10

$27.76

$17.58

$20.15

$21.93

Total

return

c

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

(8.57)%

(29.71)%

75.96%

(6.47)%

15.78%

19.37%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.38%

1.28%

1.28%

1.32%

1.32%

1.36%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.36%

1.28%

f

1.27%

1.31%

1.31%

1.35%

Net

investment

(loss)

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

(0.77)%

(0.79)%

(0.93)%

(0.76)%

(0.93)%

(0.86)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$42,051

$50,324

$79,314

$54,369

$74,634

$71,398

Portfolio

turnover

rate

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

11.81%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

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

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.73

$34.14

$21.07

$23.73

$24.88

$21.06

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.01)

(0.04)

(0.09)

(0.02)

(0.07)

(0.03)

Net

realized

and

unrealized

gains

(losses)

(1.70)

(9.10)

15.99

(1.21)

3.18

4.27

Total

from

investment

operations

........

(1.71)

(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

period

..........

$19.02

$20.73

$34.14

$21.07

$23.73

$24.88

Total

return

c

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

(8.25)%

(29.26)%

77.13%

(5.86)%

16.50%

20.23%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.68%

0.65%

0.65%

0.67%

0.67%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.66%

0.64%

0.64%

0.64%

0.64%

0.63%

Net

investment

(loss)

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

(0.07)%

(0.15)%

(0.31)%

(0.09)%

(0.26)%

(0.14)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,386,923

$1,529,170

$2,149,795

$1,136,759

$1,084,442

$935,509

Portfolio

turnover

rate

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

11.81%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

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.

Semiannual

Report

33

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.19

$33.43

$20.70

$23.37

$24.61

$20.88

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.03)

(0.08)

(0.13)

(0.06)

(0.10)

(0.08)

Net

realized

and

unrealized

gains

(losses)

(1.65)

(8.89)

15.69

(1.18)

3.12

4.23

Total

from

investment

operations

........

(1.68)

(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

period

..........

$18.51

$20.19

$33.43

$20.70

$23.37

$24.61

Total

return

c

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

(8.37)%

(29.34)%

76.86%

(5.99)%

16.30%

19.97%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.88%

0.78%

0.78%

0.82%

0.82%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.86%

0.77%

0.77%

0.81%

0.81%

0.85%

Net

investment

(loss)

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

(0.27)%

(0.29)%

(0.44)%

(0.26)%

(0.43)%

(0.36)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$356,243

$433,191

$739,985

$428,155

$725,622

$713,135

Portfolio

turnover

rate

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

11.81%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.9%

Aerospace

&

Defense

5.1%

a

AAR

Corp.

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

United

States

815,100

$

36,125,232

a

Axon

Enterprise,

Inc.

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

United

States

201,600

29,320,704

BWX

Technologies,

Inc.

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

United

States

800,600

45,618,188

a

Kratos

Defense

&

Security

Solutions,

Inc.

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

United

States

1,756,664

19,463,837

130,527,961

Airlines

1.4%

a

Allegiant

Travel

Co.

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

United

States

402,448

30,203,722

a

Wheels

Up

Experience,

Inc.

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

United

States

2,557,749

4,527,216

34,730,938

Banks

2.7%

Pinnacle

Financial

Partners,

Inc.

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

United

States

446,404

37,047,068

Western

Alliance

Bancorp

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

United

States

485,300

32,597,601

69,644,669

Biotechnology

7.9%

a

Alector,

Inc.

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

United

States

581,300

5,347,960

a

Arcutis

Biotherapeutics,

Inc.

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

United

States

358,400

6,336,512

a

Ascendis

Pharma

A/S,

ADR

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

Denmark

217,200

24,978,000

a

Cullinan

Oncology,

Inc.

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

United

States

427,500

5,617,350

a

Cytokinetics,

Inc.

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

United

States

321,000

14,014,860

a

Day

One

Biopharmaceuticals,

Inc.

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

United

States

748,822

15,830,097

a

Dyne

Therapeutics,

Inc.

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

United

States

631,200

7,195,680

a

Heron

Therapeutics,

Inc.

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

United

States

1,797,608

6,920,791

a

Insmed,

Inc.

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

United

States

1,099,600

19,045,072

a

Iovance

Biotherapeutics,

Inc.

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

United

States

973,800

9,095,292

a

Karuna

Therapeutics,

Inc.

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

United

States

71,700

15,726,678

a

Kura

Oncology,

Inc.

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

United

States

571,700

8,872,784

a

Merus

NV

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

Netherlands

312,800

6,412,400

a

Mirati

Therapeutics,

Inc.

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

United

States

214,900

14,467,068

a

PTC

Therapeutics,

Inc.

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

United

States

816,600

30,883,812

a

Sutro

Biopharma,

Inc.

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

United

States

968,449

7,098,731

a

Twist

Bioscience

Corp.

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

United

States

119,862

3,935,070

201,778,157

Building

Products

0.9%

a

Masonite

International

Corp.

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

United

States

329,400

23,561,982

Capital

Markets

3.6%

Bridge

Investment

Group

Holdings,

Inc.,

A

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

United

States

1,410,600

22,089,996

Evercore,

Inc.,

A

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

United

States

273,600

28,755,360

Houlihan

Lokey,

Inc.

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

United

States

458,800

40,980,016

91,825,372

Communications

Equipment

1.0%

a

Viavi

Solutions,

Inc.

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

United

States

1,751,700

26,450,670

Construction

&

Engineering

2.9%

Arcosa,

Inc.

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

United

States

713,800

45,825,961

Granite

Construction,

Inc.

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

United

States

808,143

27,258,663

73,084,624

Diversified

Consumer

Services

0.4%

a,b

Nerdy,

Inc.

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

United

States

4,416,100

10,731,123

Electronic

Equipment,

Instruments

&

Components

0.8%

Vontier

Corp.

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

United

States

1,091,200

20,841,920

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Energy

Equipment

&

Services

1.3%

a

Liberty

Energy,

Inc.,

A

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

United

States

1,965,200

$

33,231,532

Equity

Real

Estate

Investment

Trusts

(REITs)

2.1%

Pebblebrook

Hotel

Trust

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

United

States

1,174,800

18,843,792

Rexford

Industrial

Realty,

Inc.

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

United

States

642,600

35,522,928

54,366,720

Food

&

Staples

Retailing

1.9%

a

Performance

Food

Group

Co.

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

United

States

909,000

47,304,360

Food

Products

4.0%

a

Freshpet,

Inc.

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

United

States

414,800

24,452,460

a

Hostess

Brands,

Inc.

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

United

States

784,174

20,764,928

a

Nomad

Foods

Ltd.

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

United

Kingdom

942,100

14,508,340

a

Simply

Good

Foods

Co.

(The)

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

United

States

1,102,900

42,241,070

101,966,798

Health

Care

Equipment

&

Supplies

6.4%

a

Figs,

Inc.,

A

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

United

States

1,621,500

11,966,670

a

Haemonetics

Corp.

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

United

States

431,900

36,689,905

a

Inari

Medical,

Inc.

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

United

States

184,700

14,208,971

a

Inspire

Medical

Systems,

Inc.

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

United

States

206,544

40,265,753

a

Integer

Holdings

Corp.

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

United

States

494,600

30,828,418

a

Neogen

Corp.

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

United

States

513,332

6,775,982

a

Nevro

Corp.

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

United

States

348,300

13,353,822

a

Pulmonx

Corp.

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

United

States

647,016

8,644,134

162,733,655

Health

Care

Providers

&

Services

3.5%

a

HealthEquity,

Inc.

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

United

States

669,916

52,193,156

a

Hims

&

Hers

Health,

Inc.

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

United

States

1,684,547

7,647,843

a

Privia

Health

Group,

Inc.

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

United

States

898,500

30,081,780

89,922,779

Health

Care

Technology

2.0%

a

Certara,

Inc.

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

United

States

1,294,000

15,825,620

a

Phreesia,

Inc.

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

United

States

1,284,682

35,097,512

50,923,132

Hotels,

Restaurants

&

Leisure

6.1%

a,b

Dutch

Bros,

Inc.,

A

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

United

States

114,900

4,240,959

a,b

Portillo's,

Inc.,

A

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

United

States

814,300

17,458,592

Red

Rock

Resorts,

Inc.,

A

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

United

States

1,060,600

44,173,990

a,b

Sweetgreen,

Inc.,

A

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

United

States

699,039

13,002,125

Texas

Roadhouse,

Inc.

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

United

States

418,600

41,420,470

a

Vacasa,

Inc.

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

United

States

10,527

38,424

a,b

Vacasa,

Inc.,

A

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

United

States

2,242,700

8,185,855

Wingstop,

Inc.

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

United

States

163,013

25,819,629

154,340,044

Household

Durables

3.0%

a

M/I

Homes,

Inc.

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

United

States

787,446

32,671,135

a

Sonos,

Inc.

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

United

States

1,034,700

16,679,364

a

Tri

Pointe

Homes,

Inc.

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

United

States

1,618,400

27,108,200

76,458,699

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Internet

&

Direct

Marketing

Retail

0.1%

a,b

Rent

the

Runway,

Inc.,

A

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

United

States

1,834,058

$

3,576,413

IT

Services

5.4%

a

BigCommerce

Holdings,

Inc.,

1

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

United

States

1,260,100

18,725,086

a

Flywire

Corp.

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

United

States

1,643,310

36,070,655

a

Marqeta,

Inc.,

A

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

United

States

2,422,413

19,088,614

a,c

Paymentus

Holdings,

Inc.,

A

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

United

States

2,195,300

22,831,120

a

Repay

Holdings

Corp.

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

United

States

953,637

5,807,649

a

Shift4

Payments,

Inc.,

A

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

United

States

782,600

35,976,122

138,499,246

Life

Sciences

Tools

&

Services

0.6%

a

CryoPort,

Inc.

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

United

States

156,600

4,347,216

a

NeoGenomics,

Inc.

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

United

States

1,270,400

9,661,392

14,008,608

Machinery

4.4%

Kennametal,

Inc.

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

United

States

1,198,300

32,006,593

a

Proterra,

Inc.

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

United

States

4,726,443

29,493,004

a

RBC

Bearings,

Inc.

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

United

States

204,600

51,872,238

113,371,835

Media

0.6%

New

York

Times

Co.

(The),

A

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

United

States

537,156

15,556,038

Oil,

Gas

&

Consumable

Fuels

1.4%

Matador

Resources

Co.

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

United

States

524,200

34,833,090

Personal

Products

1.1%

a

BellRing

Brands,

Inc.

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

United

States

1,199,700

29,056,734

Pharmaceuticals

2.5%

a,c

EyePoint

Pharmaceuticals,

Inc.

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

United

States

2,015,600

10,884,240

a

Intra-Cellular

Therapies,

Inc.

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

United

States

339,400

15,500,398

a

Pliant

Therapeutics,

Inc.

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

United

States

521,100

12,959,757

a

Revance

Therapeutics,

Inc.

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

United

States

1,125,392

25,107,496

64,451,891

Professional

Services

0.9%

a

Legalzoom.com,

Inc.

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

United

States

2,471,080

22,857,490

Semiconductors

&

Semiconductor

Equipment

4.2%

a

Lattice

Semiconductor

Corp.

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

United

States

777,800

37,731,078

a

Onto

Innovation,

Inc.

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

United

States

490,209

32,765,569

a

Silicon

Laboratories,

Inc.

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

United

States

78,300

8,998,236

a

SiTime

Corp.

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

United

States

312,212

28,039,760

107,534,643

Software

8.1%

a

Alkami

Technology,

Inc.

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

United

States

480,750

7,619,887

a

Alteryx,

Inc.,

A

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

United

States

368,700

17,966,751

a,b

AvePoint,

Inc.

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

United

States

2,100,700

9,180,059

a

BTRS

Holdings,

Inc.,

1

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

United

States

103,900

980,816

a,c,d,e

ClearMotion,

Inc.

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

United

States

3,698,772

340,894

a

CS

Disco,

Inc.

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

United

States

2,102,613

22,540,011

a

Envestnet,

Inc.

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

United

States

323,022

15,928,215

a

Freshworks,

Inc.,

A

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

United

States

1,621,000

22,029,390

a

LiveRamp

Holdings,

Inc.

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

United

States

1,000,500

18,369,180

a,b

Monday.com

Ltd.

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

United

States

323,700

34,616,478

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

37

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a

Paycor

HCM,

Inc.

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

United

States

1,616,200

$

49,245,614

a

Q2

Holdings,

Inc.

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

United

States

277,800

8,622,912

207,440,207

Specialty

Retail

4.9%

American

Eagle

Outfitters,

Inc.

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

United

States

2,086,500

23,702,640

a

Boot

Barn

Holdings,

Inc.

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

United

States

530,460

30,130,128

a

Five

Below,

Inc.

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

United

States

207,000

30,294,450

Lithia

Motors,

Inc.,

A

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

United

States

44,726

8,862,457

a,b

MYT

Netherlands

Parent

BV,

ADR

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

Germany

1,019,104

11,648,359

a

Petco

Health

&

Wellness

Co.,

Inc.

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

United

States

1,942,500

20,454,525

125,092,559

Textiles,

Apparel

&

Luxury

Goods

1.4%

a

Allbirds,

Inc.,

A

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

United

States

2,779,605

9,561,841

Steven

Madden

Ltd.

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

United

States

877,550

26,212,419

35,774,260

Trading

Companies

&

Distributors

3.3%

a

Beacon

Roofing

Supply,

Inc.

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

United

States

701,600

39,535,160

a

Univar

Solutions,

Inc.

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

United

States

1,738,532

44,297,795

83,832,955

Total

Common

Stocks

(Cost

$2,446,102,238)

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

2,450,311,104

Convertible

Preferred

Stocks

1.8%

Diversified

Consumer

Services

0.4%

a,d,e

Newsela,

Inc.,

D

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

United

States

709,046

11,086,092

a

Software

1.1%

a,c,d,e

Benchling,

Inc.,

F

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

United

States

382,306

6,088,438

a,d,e

Checkr,

Inc.,

E

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

United

States

1,388,889

21,914,410

28,002,848

Specialty

Retail

0.3%

a,c,d,e

1661,

Inc.,

F

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

United

States

3,436,485

6,890,383

a

Total

Convertible

Preferred

Stocks

(Cost

$72,500,003)

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

45,979,323

Preferred

Stocks

0.9%

Auto

Components

0.4%

a,d,e

Tula

eTechnology,

Inc.

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

United

States

361,111

—

a,d,e

Tula

eTechnology,

Inc.,

E

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

United

States

3,611,111

8,511,064

8,511,064

Commercial

Services

&

Supplies

0.3%

a,c,d,e

Optoro,

Inc.,

E

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

United

States

554,878

8,339,963

a

Software

0.2%

a,c,d,e

ClearMotion,

Inc.,

A-4

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

United

States

6,477,294

781,719

a,d,e

Smule,

Inc.,

144A,

G

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

United

States

1,542,673

2,841,383

a,d,e

Smule,

Inc.,

144A,

H

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

United

States

352,675

767,860

4,390,962

Total

Preferred

Stocks

(Cost

$32,144,989)

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

21,241,989

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

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

2,590,918

$

108,692

Total

Warrants

(Cost

$–)

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

108,692

Principal

Amount

*

Convertible

Bonds

0.0%

†

d,e

Smule,

Inc.

,

6

%

,

8/05/23

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

United

States

382,198

382,198

Total

Convertible

Bonds

(Cost

$382,198)

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

382,198

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

$2,551,129,428)

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

2,518,023,306

a

Short

Term

Investments

4.0%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

2.0%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

51,497,571

51,497,571

Total

Money

Market

Funds

(Cost

$51,497,571)

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

51,497,571

a

a

a

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

2.0%

Money

Market

Funds

2.0%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

50,002,530

50,002,530

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$50,002,530)

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

50,002,530

Total

Short

Term

Investments

(Cost

$101,500,101

)

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

101,500,101

a

Total

Investments

(Cost

$2,652,629,529)

102.6%

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

$2,619,523,407

Other

Assets,

less

Liabilities

(2.6)%

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

(64,825,918)

Net

Assets

100.0%

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

$2,554,697,489

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

See

Abbreviations

on

page

81

.

*

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

October

31,

2022.

See

Note

1(d).

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(d)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$33.07

$49.66

$32.15

$37.17

$36.07

$34.35

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.03)

(0.25)

(0.24)

(0.07)

(0.09)

(0.15)

Net

realized

and

unrealized

gains

(losses)

(3.46)

(9.42)

21.89

1.24

5.33

4.97

Total

from

investment

operations

........

(3.49)

(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

period

..........

$29.58

$33.07

$49.66

$32.15

$37.17

$36.07

Total

return

c

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

(10.58)%

(22.83)%

68.37%

2.97%

17.43%

14.28%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.90%

0.85%

0.86%

0.88%

0.88%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.88%

0.84%

0.85%

0.87%

0.87%

1.00%

Net

investment

(loss)

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

(0.19)%

(0.54)%

(0.54)%

(0.21)%

(0.25)%

(0.41)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,556,084

$3,019,703

$4,217,167

$2,515,801

$2,684,131

$2,262,471

Portfolio

turnover

rate

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

12.66%

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

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.

Semiannual

Report

41

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.20

$27.98

$19.41

$24.98

$25.84

$25.59

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.07)

(0.32)

(0.33)

(0.22)

(0.26)

(0.31)

Net

realized

and

unrealized

gains

(losses)

(1.70)

(4.54)

13.04

0.84

3.54

3.66

Total

from

investment

operations

........

(1.77)

(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

period

..........

$14.43

$16.20

$27.98

$19.41

$24.98

$25.84

Total

return

c

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

(10.93)%

(23.43)%

67.11%

2.14%

16.68%

13.39%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.65%

1.60%

1.61%

1.63%

1.63%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.63%

1.59%

1.60%

1.62%

1.62%

1.75%

Net

investment

(loss)

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

(0.94)%

(1.29)%

(1.28)%

(0.96)%

(1.00)%

(1.16)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$86,648

$110,596

$198,713

$138,940

$173,334

$334,769

Portfolio

turnover

rate

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

12.66%

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$28.11

$43.32

$28.45

$33.66

$33.15

$31.87

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.06)

(0.32)

(0.30)

(0.14)

(0.16)

(0.22)

Net

realized

and

unrealized

gains

(losses)

(2.93)

(7.97)

19.31

1.12

4.81

4.60

Total

from

investment

operations

........

(2.99)

(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

period

..........

$25.12

$28.11

$43.32

$28.45

$33.66

$33.15

Total

return

c

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

(10.67)%

(23.00)%

67.96%

2.69%

17.17%

14.00%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.15%

1.10%

1.10%

1.12%

1.12%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.13%

1.09%

1.09%

1.11%

1.11%

1.24%

Net

investment

(loss)

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

(0.44)%

(0.79)%

(0.78)%

(0.45)%

(0.49)%

(0.65)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$32,307

$38,761

$60,264

$40,997

$50,721

$70,692

Portfolio

turnover

rate

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

12.66%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

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.

Semiannual

Report

43

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$39.84

$58.24

$37.12

$41.83

$39.91

$37.51

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

0.04

(0.10)

(0.10)

0.07

0.05

0.05

Net

realized

and

unrealized

gains

(losses)

(4.18)

(11.38)

25.36

1.41

6.01

5.45

Total

from

investment

operations

........

(4.14)

(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

period

..........

$35.70

$39.84

$58.24

$37.12

$41.83

$39.91

Total

return

c

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

(10.41)%

(22.57)%

68.95%

3.40%

17.82%

14.90%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.53%

0.51%

0.51%

0.52%

0.52%

0.50%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.49%

0.50%

0.49%

0.48%

0.49%

0.47%

Net

investment

income

(loss)

..........

0.21%

(0.19)%

(0.19)%

0.18%

0.13%

0.12%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$435,194

$540,509

$648,078

$224,341

$259,053

$275,835

Portfolio

turnover

rate

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

12.66%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$38.68

$56.79

$36.30

$41.09

$39.33

$37.11

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

0.01

(0.15)

(0.14)

0.02

0.01

(0.06)

Net

realized

and

unrealized

gains

(losses)

(4.06)

(11.04)

24.77

1.38

5.89

5.38

Total

from

investment

operations

........

(4.05)

(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

period

..........

$34.63

$38.68

$56.79

$36.30

$41.09

$39.33

Total

return

c

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

(10.47)%

(22.65)%

68.77%

3.26%

17.67%

14.57%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.65%

0.60%

0.61%

0.63%

0.63%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.63%

0.59%

0.60%

0.62%

0.62%

0.75%

Net

investment

income

(loss)

..........

0.06%

(0.28)%

(0.29)%

0.04%

—%

f

(0.16)%

Supplemental

data

Net

assets,

end

o

f

period

(000’s)

........

$462,340

$532,573

$552,987

$302,329

$355,141

$520,842

Portfolio

turnover

rate

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

12.66%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

45

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

93.1%

Aerospace

&

Defense

1.7%

TransDigm

Group,

Inc.

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

United

States

103,900

$

59,821,464

Airlines

1.3%

a

Delta

Air

Lines,

Inc.

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

United

States

1,370,700

46,507,851

Banks

1.0%

First

Republic

Bank

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

United

States

105,600

12,682,560

a

SVB

Financial

Group

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

United

States

98,200

22,680,272

35,362,832

Beverages

0.5%

Brown-Forman

Corp.,

B

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

United

States

263,900

17,945,200

Biotechnology

2.9%

a

Alnylam

Pharmaceuticals,

Inc.

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

United

States

135,600

28,104,456

a

Horizon

Therapeutics

plc

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

United

States

421,200

26,249,184

a

Neurocrine

Biosciences,

Inc.

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

United

States

113,600

13,077,632

a

PTC

Therapeutics,

Inc.

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

United

States

486,700

18,406,994

a

Seagen,

Inc.

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

United

States

152,700

19,417,332

105,255,598

Building

Products

1.4%

Trane

Technologies

plc

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

United

States

309,900

49,469,337

Capital

Markets

4.7%

Ares

Management

Corp.

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

United

States

629,400

47,727,402

MarketAxess

Holdings,

Inc.

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

United

States

119,800

29,235,992

MSCI,

Inc.

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

United

States

153,100

71,782,466

Tradeweb

Markets,

Inc.,

A

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

United

States

354,600

19,531,368

168,277,228

Chemicals

0.1%

Albemarle

Corp.

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

United

States

9,300

2,602,791

Commercial

Services

&

Supplies

1.3%

Republic

Services,

Inc.

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

United

States

344,800

45,727,376

Communications

Equipment

1.7%

a

Arista

Networks,

Inc.

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

United

States

492,500

59,523,550

Containers

&

Packaging

1.6%

Avery

Dennison

Corp.

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

United

States

266,300

45,151,165

Ball

Corp.

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

United

States

217,200

10,727,508

55,878,673

Electrical

Equipment

1.6%

Rockwell

Automation,

Inc.

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

United

States

224,000

57,187,200

Electronic

Equipment,

Instruments

&

Components

3.3%

Cognex

Corp.

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

United

States

646,900

29,906,187

a

Keysight

Technologies,

Inc.

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

United

States

279,700

48,709,755

a

Mobileye

Global,

Inc.,

A

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

Israel

39,700

1,047,286

a

Zebra

Technologies

Corp.,

A

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

United

States

130,700

37,016,854

116,680,082

Entertainment

0.4%

a

ROBLOX

Corp.,

A

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

United

States

319,900

14,312,326

Equity

Real

Estate

Investment

Trusts

(REITs)

2.6%

Equity

LifeStyle

Properties,

Inc.

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

United

States

461,100

29,491,956

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

SBA

Communications

Corp.

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

United

States

135,600

$

36,598,440

Terreno

Realty

Corp.

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

United

States

449,800

25,701,572

91,791,968

Food

Products

0.3%

a

Freshpet,

Inc.

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

United

States

174,900

10,310,355

Health

Care

Equipment

&

Supplies

6.0%

a

Dexcom,

Inc.

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

United

States

662,256

79,987,280

a

IDEXX

Laboratories,

Inc.

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

United

States

182,000

65,461,760

a

Inari

Medical,

Inc.

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

United

States

302,300

23,255,939

a

Insulet

Corp.

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

United

States

179,900

46,559,919

215,264,898

Health

Care

Providers

&

Services

1.4%

a

Guardant

Health,

Inc.

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

United

States

453,600

22,453,200

a

HealthEquity,

Inc.

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

United

States

365,700

28,491,687

50,944,887

Health

Care

Technology

1.7%

a

Certara,

Inc.

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

United

States

760,700

9,303,361

a

Veeva

Systems,

Inc.,

A

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

United

States

304,600

51,154,524

60,457,885

Hotels,

Restaurants

&

Leisure

6.0%

a

Chipotle

Mexican

Grill,

Inc.

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

United

States

54,900

82,258,317

Darden

Restaurants,

Inc.

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

United

States

308,200

44,115,748

a

Expedia

Group,

Inc.

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

United

States

395,700

36,986,079

Vail

Resorts,

Inc.

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

United

States

125,700

27,544,641

a

Wynn

Resorts

Ltd.

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

United

States

359,500

22,972,050

213,876,835

Household

Durables

1.3%

a

NVR,

Inc.

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

United

States

11,300

47,886,575

Interactive

Media

&

Services

1.6%

a

Match

Group,

Inc.

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

United

States

695,159

30,030,869

a

Pinterest,

Inc.,

A

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

United

States

1,173,100

28,858,260

58,889,129

IT

Services

4.7%

a,b

Adyen

NV,

144A,

Reg

S

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

Netherlands

16,100

22,985,514

a

Cloudflare,

Inc.,

A

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

United

States

547,800

30,852,096

a

MongoDB,

Inc.

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

United

States

169,500

31,023,585

Paychex,

Inc.

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

United

States

404,700

47,880,057

a

Shopify,

Inc.,

A

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

Canada

559,300

19,144,839

a

Snowflake,

Inc.,

A

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

United

States

94,700

15,180,410

167,066,501

Leisure

Products

1.4%

a,c,d

Fanatics

Holdings,

Inc.

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

United

States

793,714

49,139,327

Life

Sciences

Tools

&

Services

4.4%

a

10X

Genomics,

Inc.,

A

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

United

States

459,800

12,497,364

Bio-Techne

Corp.

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

United

States

149,800

44,379,748

a

Mettler-Toledo

International,

Inc.

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

United

States

50,600

64,005,458

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

47

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

152,500

$

35,090,250

155,972,820

Machinery

1.5%

IDEX

Corp.

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

United

States

173,700

38,615,247

a

Proterra,

Inc.

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

United

States

2,385,555

14,885,863

53,501,110

Oil,

Gas

&

Consumable

Fuels

1.7%

Coterra

Energy,

Inc.

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

United

States

787,300

24,508,649

Hess

Corp.

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

United

States

137,500

19,398,500

Targa

Resources

Corp.

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

United

States

233,300

15,950,721

59,857,870

Personal

Products

0.8%

a

BellRing

Brands,

Inc.

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

United

States

1,228,600

29,756,692

Pharmaceuticals

1.3%

a

Catalent,

Inc.

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

United

States

323,400

21,257,082

a

Jazz

Pharmaceuticals

plc

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

United

States

169,800

24,415,542

45,672,624

Professional

Services

3.3%

a

CoStar

Group,

Inc.

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

United

States

1,148,000

94,962,560

TransUnion

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

United

States

424,500

25,160,115

120,122,675

Road

&

Rail

2.7%

a

Lyft,

Inc.,

A

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

United

States

1,740,500

25,480,920

Old

Dominion

Freight

Line,

Inc.

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

United

States

253,750

69,679,750

95,160,670

Semiconductors

&

Semiconductor

Equipment

4.5%

a

Enphase

Energy,

Inc.

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

United

States

66,200

20,323,400

Entegris,

Inc.

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

United

States

445,900

35,377,706

a

Lattice

Semiconductor

Corp.

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

United

States

737,014

35,752,549

Monolithic

Power

Systems,

Inc.

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

United

States

117,800

39,987,210

a

SiTime

Corp.

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

United

States

286,314

25,713,860

a

Wolfspeed,

Inc.

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

United

States

33,400

2,630,250

159,784,975

Software

12.5%

a

Alkami

Technology,

Inc.

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

United

States

998,700

15,829,395

a

ANSYS,

Inc.

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

United

States

208,300

46,067,628

a

Arteris,

Inc.

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

United

States

1,081,200

5,989,848

a

Atlassian

Corp.,

A

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

United

States

122,800

24,895,244

a

Bill.com

Holdings,

Inc.

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

United

States

271,133

36,158,297

a

Crowdstrike

Holdings,

Inc.,

A

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

United

States

392,700

63,303,240

a

Monday.com

Ltd.

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

United

States

218,800

23,398,472

a

Palo

Alto

Networks,

Inc.

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

United

States

210,700

36,154,013

a

Paylocity

Holding

Corp.

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

United

States

240,600

55,768,674

a

Synopsys,

Inc.

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

United

States

350,300

102,480,265

a

Zscaler,

Inc.

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

United

States

244,600

37,692,860

447,737,936

Specialty

Retail

5.6%

a

AutoZone,

Inc.

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

United

States

19,000

48,124,720

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

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

(continued)

Specialty

Retail

(continued)

a

Burlington

Stores,

Inc.

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

United

States

228,600

$

32,680,656

a

Five

Below,

Inc.

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

United

States

257,900

37,743,665

a

Petco

Health

&

Wellness

Co.,

Inc.

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

United

States

1,264,100

13,310,973

Tractor

Supply

Co.

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

United

States

317,000

69,667,090

201,527,104

Textiles,

Apparel

&

Luxury

Goods

2.5%

Levi

Strauss

&

Co.,

A

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

United

States

1,119,100

16,741,736

a

Lululemon

Athletica,

Inc.

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

United

States

226,600

74,560,464

91,302,200

Trading

Companies

&

Distributors

1.8%

Fastenal

Co.

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

United

States

1,372,900

66,352,257

Total

Common

Stocks

(Cost

$2,874,118,047)

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

3,326,928,801

Convertible

Preferred

Stocks

1.5%

Diversified

Consumer

Services

0.2%

a,c,d

Newsela,

Inc.,

D

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

United

States

423,782

6,625,926

a

Semiconductors

&

Semiconductor

Equipment

0.1%

a,c,d,e

Phononic

Devices,

Inc.,

F

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

United

States

2,970,061

1,702,579

a

Software

1.2%

a,c,d,e

Benchling,

Inc.,

F

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

United

States

347,106

5,527,858

a,c,d,e

Blaize,

Inc.,

D

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

United

States

227,435

1,659,876

a,c,d,e

Blaize,

Inc.,

D

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

United

States

1,720,949

11,338,739

a,c,d,e

Blaize,

Inc.,

D-2

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

United

States

1,467,659

6,548,937

a,c,d

Databricks,

Inc.,

G

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

United

States

227,829

11,471,277

a,c,d

OneTrust

LLC,

C

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

United

States

767,526

7,811,570

44,358,257

Total

Convertible

Preferred

Stocks

(Cost

$83,781,543)

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

52,686,762

Preferred

Stocks

0.1%

Semiconductors

&

Semiconductor

Equipment

0.1%

a,c,d,e

Phononic

Devices,

Inc.,

G-2

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

United

States

513,050

585,944

a,c,d,e

Phononic,

Inc.

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

United

States

117,763

474,890

1,060,834

Total

Preferred

Stocks

(Cost

$393,133)

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

1,060,834

Warrants

Warrants

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

a,c,d,e

Phononic,

Inc.,

H,

10/17/27

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

United

States

47,104

45,832

Software

0.0%

†

a,c,d,e

Blaize,

Inc.,

9/19/25

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

United

States

146,765

180,581

a,c,d,e

Blaize,

Inc.,

D,

2/28/24

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

United

States

260,815

133,095

313,676

Total

Warrants

(Cost

$44,245)

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

359,508

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

49

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

f

Senior

Floating

Rate

Interests

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

c,d,e,g

Phononic,

Inc.

,

Advance

Term

Loan

,

12

%

,

PIK,

6/30/25

.........

United

States

775,689

$

711,128

Total

Senior

Floating

Rate

Interests

(Cost

$799,447)

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

711,128

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

$2,959,136,415)

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

3,381,747,033

a

Short

Term

Investments

5.4%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

5.0%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

179,843,397

179,843,397

Total

Money

Market

Funds

(Cost

$179,843,397)

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

179,843,397

Principal

Amount

*

a

a

a

Repurchase

Agreements

0.4%

j

Joint

Repurchase

Agreement,

2.999%,

11/01/22

(Maturity

Value

$13,992,051)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$634,260)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$1,305,458)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$12,052,333)

Collateralized

by

U.S.

Government

Agency

Securities,

0.38%

-

5%,

8/25/25

-

8/20/51;

U.S.

Treasury

Bonds,

6.75%,

8/15/26;

and

U.S.

Treasury

Notes,

2%,

8/15/25

(valued

at

$14,271,358)

.........

13,990,886

13,990,886

Total

Repurchase

Agreements

(Cost

$13,990,886)

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

13,990,886

Total

Short

Term

Investments

(Cost

$193,834,283

)

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

193,834,283

a

Total

Investments

(Cost

$3,152,970,698)

100.1%

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

$3,575,581,316

Other

Assets,

less

Liabilities

(0.1)%

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

(3,008,957)

Net

Assets

100.0%

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

$3,572,572,359

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

See

Abbreviations

on

page

81

.

*

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

October

31,

2022,

the

value

of

this

security

was

$22,985,514,

representing

0.6%

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

See

Note

10

regarding

holdings

of

5%

voting

securities.

f

See

Note

1(e)

regarding

senior

floating

rate

interests.

g

Income

may

be

received

in

additional

securities

and/or

cash.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

j

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

October

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

51

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$1,737,968,014

$2,426,315,621

$2,911,604,505

Cost

-

Non-controlled

affiliates

(Note

3

f

and

10

)

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

170,391,004

226,313,908

227,375,307

Cost

-

Unaffiliated

repurchase

agreements

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

—

—

13,990,886

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$50,825,076,

$49,012,649

and

$—

,

respectively)

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

$3,463,540,142

$2,461,757,857

$3,352,837,574

Value

-

Non-controlled

affiliates

(Note

3

f

and

10

)

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

154,541,399

157,765,550

208,752,856

Value

-

Unaffiliated

repurchase

agreements

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

—

—

13,990,886

Cash

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

31,699

75,213

116,298

Receivables:

Investment

securities

sold

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

—

—

3,703,005

Capital

shares

sold

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

1,039,800

1,454,547

1,538,831

Dividends

and

interest

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

539,349

166,275

1,338,776

Due

from

custodian

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

1,293,600

607,200

—

Total

assets

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

3,620,985,989

2,621,826,642

3,582,278,226

Liabilities:

Payables:

Investment

securities

purchased

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

26,418,921

—

3,130,199

Capital

shares

redeemed

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

2,410,255

14,209,144

3,183,143

Management

fees

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

1,583,808

1,296,087

1,300,679

Distribution

fees

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

670,416

188,869

613,561

Transfer

agent

fees

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

705,823

703,834

1,204,507

Trustees'

fees

and

expenses

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

6,411

2,772

2,997

Payable

upon

return

of

securities

loaned

(Note

1

d

)

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

52,319,830

50,609,730

—

Accrued

expenses

and

other

liabilities

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

173,030

118,717

270,781

Total

liabilities

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

84,288,494

67,129,153

9,705,867

Net

assets,

at

value

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

$3,536,697,495

$2,554,697,489

$3,572,572,359

Net

assets

consist

of:

Paid-in

capital

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

$1,563,825,579

$2,591,863,569

$3,392,341,331

Total

distributable

earnings

(losses)

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

1,972,871,916

(37,166,080)

180,231,028

Net

assets,

at

value

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

$3,536,697,495

$2,554,697,489

$3,572,572,359

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

October

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

A:

Net

assets,

at

value

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

$2,671,286,650

$747,169,327

$2,556,083,664

Shares

outstanding

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

71,162,694

45,908,908

86,424,032

Net

asset

value

per

share

a

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

$37.54

$16.28

$29.58

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

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

$39.72

$17.23

$31.30

Class

C:

Net

assets,

at

value

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

$121,499,882

$22,310,863

$86,648,251

Shares

outstanding

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

4,306,064

1,977,425

6,002,989

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$28.22

$11.28

$14.43

Class

R:

Net

assets,

at

value

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

$21,790,932

$42,051,488

$32,306,801

Shares

outstanding

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

625,941

2,857,295

1,286,343

Net

asset

value

and

maximum

offering

price

per

share

...........

$34.81

$14.72

$25.12

Class

R6:

Net

assets,

at

value

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

$394,251,832

$1,386,922,618

$435,193,827

Shares

outstanding

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

9,232,916

72,926,429

12,190,458

Net

asset

value

and

maximum

offering

price

per

share

...........

$42.70

$19.02

$35.70

Advisor

Class:

Net

assets,

at

value

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

$327,868,199

$356,243,193

$462,339,816

Shares

outstanding

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

7,827,748

19,245,868

13,350,131

Net

asset

value

and

maximum

offering

price

per

share

...........

$41.89

$18.51

$34.63

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

six

months

ended

October

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

53

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$31,256,

$–

and

$–,

respectively)

Unaffiliated

issuers

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

$9,008,094

$5,679,898

$11,681,888

Non-controlled

affiliates

(Note

3

f

and

10

)

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

352,846

393,914

1,251,575

Interest:

Unaffiliated

issuers

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

—

—

54,892

Non-controlled

affiliates

(Note

3

f

and

10

)

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

—

—

222,157

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

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

1,961,870

1,324,472

3,046

Non-controlled

affiliates

(Note

3

f

)

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

329,603

413,059

8,372

Total

investment

income

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

11,652,413

7,811,343

13,221,930

Expenses:

Management

fees

(Note

3

a

)

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

10,806,907

8,229,109

8,726,151

Distribution

fees:

(Note

3c

)

    Class

A

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

3,648,056

976,334

3,404,845

    Class

C

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

696,365

132,566

485,086

    Class

R

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

60,760

111,337

86,537

Transfer

agent

fees:

(Note

3e

)

    Class

A

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

1,834,392

915,547

2,333,894

    Class

C

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

87,557

30,786

82,904

    Class

R

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

15,278

52,132

29,628

    Class

R6

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

55,025

273,422

132,403

    Advisor

Class

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

290,857

452,938

413,688

Custodian

fees

(Note

4

)

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

14,266

19,736

13,280

Reports

to

shareholders

fees

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

111,857

135,467

132,158

Registration

and

filing

fees

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

78,877

87,905

102,633

Professional

fees

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

48,143

42,924

43,179

Trustees'

fees

and

expenses

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

22,010

14,414

22,514

Interest

expense

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

1,005

578

301

Other

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

67,856

49,888

63,172

Total

expenses

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

17,839,211

11,525,083

16,072,373

Expense

reductions

(Note

4

)

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

(1,152)

(27)

(263)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

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

(161,927)

(263,250)

(428,888)

Net

expenses

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

17,676,132

11,261,806

15,643,222

Net

investment

income

(loss)

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

(6,023,719)

(3,450,463)

(2,421,292)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:*

Unaffiliated

issuers

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

115,867,348

(67,888,529)

(242,070,901)

Non-controlled

affiliates

(Note

3

f

and

10

)

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

—

—

51

Foreign

currency

transactions

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

(240)

—

(10,030)

Net

realized

gain

(loss)

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

115,867,108

(67,888,529)

(242,080,880)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

(652,055,889)

(140,059,978)

(188,161,235)

Non-controlled

affiliates

(Note

3

f

and

10

)

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

(14,820,986)

(28,352,525)

(11,154,057)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

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

—

—

13,071

Net

change

in

unrealized

appreciation

(depreciation)

..........

(666,876,875)

(168,412,503)

(199,302,221)

Net

realized

and

unrealized

gain

(loss)

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

(551,009,767)

(236,301,032)

(441,383,101)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(557,033,486)

$(239,751,495)

$(443,804,393)

*Includes

gains

from

a

redemption

in-kind

(Note

3h)

$145,404,409

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(6,023,719)

$(26,385,964)

$(3,450,463)

$(12,128,676)

Net

realized

gain

(loss)

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

115,867,108

394,534,506

(67,888,529)

202,442,914

Net

change

in

unrealized

appreciation

(depreciation)

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

(666,876,875)

(1,250,301,003)

(168,412,503)

(1,434,354,666)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(557,033,486)

(882,152,461)

(239,751,495)

(1,244,040,428)

Distributions

to

shareholders:

Class

A

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

—

(359,718,850)

—

(181,623,574)

Class

C

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

—

(24,116,585)

—

(11,157,943)

Class

R

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

—

(3,445,814)

—

(11,001,401)

Class

R6

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

—

(45,124,223)

—

(275,811,029)

Advisor

Class

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

—

(60,941,142)

—

(86,977,922)

Total

distributions

to

shareholders

.....

—

(493,346,614)

—

(566,571,869)

Capital

share

transactions:

(Note

2

)

Class

A

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

(132,732,369)

(6,279,016)

(40,742,767)

167,442,730

Class

C

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

(17,119,589)

(67,672,792)

(7,643,806)

(24,866,698)

Class

R

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

(1,766,053)

(4,737,474)

(3,909,305)

3,295,454

Class

R6

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

(8,465,928)

33,819,307

(16,804,312)

295,833,158

Advisor

Class

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

(245,922,070)

189,846,207

(42,426,518)

(25,196,039)

Total

capital

share

transactions

.......

(406,006,009)

144,976,232

(111,526,708)

416,508,605

Net

increase

(decrease)

in

net

assets

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

(963,039,495)

(1,230,522,843)

(351,278,203)

(1,394,103,692)

Net

assets:

Beginning

of

period

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

4,499,736,990

5,730,259,833

2,905,975,692

4,300,079,384

End

of

period

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

$3,536,697,495

$4,499,736,990

$2,554,697,489

$2,905,975,692

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

Franklin

Small-Mid

Cap

Growth

Fund

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

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

$(2,421,292)

$(27,433,029)

Net

realized

gain

(loss)

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

(242,080,880)

265,460,024

Net

change

in

unrealized

appreciation

(depreciation)

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

(199,302,221)

(1,518,326,849)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

(443,804,393)

(1,280,299,854)

Distributions

to

shareholders:

Class

A

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

—

(568,582,110)

Class

C

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

—

(38,633,049)

Class

R

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

—

(8,635,560)

Class

R6

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

—

(85,137,628)

Advisor

Class

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

—

(83,955,454)

Total

distributions

to

shareholders

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

—

(784,943,801)

Capital

share

transactions:

(Note

2

)

Class

A

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

(147,208,405)

274,759,286

Class

C

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

(12,017,430)

(15,778,928)

Class

R

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

(2,310,304)

(1,091,727)

Class

R6

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

(51,616,137)

143,151,443

Advisor

Class

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

(12,612,989)

229,136,029

Total

capital

share

transactions

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

(225,765,265)

630,176,103

Net

increase

(decrease)

in

net

assets

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

(669,569,658)

(1,435,067,552)

Net

assets:

Beginning

of

period

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

4,242,142,017

5,677,209,569

End

of

period

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

$3,572,572,359

$4,242,142,017

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

56

franklintempleton.com

Semiannual

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, 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.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

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

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

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.

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.

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.

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

57

franklintempleton.com

Semiannual

Report

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

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

October

31,

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.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

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

Funds'

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

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

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

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

58

franklintempleton.com

Semiannual

Report

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

Funds

at

period

end,

as

indicated

in

the

Statements

of

Investments,

had

been

entered

into

on

October

31,

2022.

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,

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.

At

October

31,

2022,

Franklin

Small-Mid

Cap

Growth

Fund

had

no

securities

on

loan.

e.

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.

f.

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

October

31,

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.

g.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

59

franklintempleton.com

Semiannual

Report

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.

h.

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.

i.

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

October

3

1

,

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:

Six

Months

ended

October

31,

2022

Shares

sold

a

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

2,167,849

$86,266,853

3,353,922

$55,172,350

Shares

redeemed

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

(5,550,779)

(218,999,222)

(5,852,182)

(95,915,117)

Net

increase

(decrease)

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

(3,382,930)

$(132,732,369)

(2,498,260)

$(40,742,767)

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

Class

C

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

60

franklintempleton.com

Semiannual

Report

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

241,723

$7,306,433

153,276

$1,738,377

Shares

redeemed

a

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

(817,370)

(24,426,022)

(823,422)

(9,382,183)

Net

increase

(decrease)

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

(575,647)

$(17,119,589)

(670,146)

$(7,643,806)

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)

Class

R

Class

R

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

36,393

$1,338,102

240,144

$3,544,255

Shares

redeemed

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

(84,700)

(3,104,155)

(509,353)

(7,453,560)

Net

increase

(decrease)

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

(48,307)

$(1,766,053)

(269,209)

$(3,909,305)

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

Class

R6

Class

R6

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

383,079

$17,217,627

6,954,357

$132,723,004

Shares

redeemed

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

(570,915)

(25,683,555)

(7,809,858)

(149,527,316)

Net

increase

(decrease)

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

(187,836)

$(8,465,928)

(855,501)

$(16,804,312)

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

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

61

franklintempleton.com

Semiannual

Report

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

3,550,485

$150,703,975

2,318,748

$43,175,722

Shares

redeemed

in-kind

(Note

3h

)

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

(5,364,050)

(242,240,519)

—

—

Shares

redeemed

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

(3,600,756)

(154,385,526)

(4,525,582)

(85,602,240)

Net

increase

(decrease)

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

(5,414,321)

$(245,922,070)

(2,206,834)

$(42,426,518)

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)

Franklin

Small-Mid

Cap

Growth

Fund

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

a

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

3,270,495

$99,631,428

Shares

redeemed

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

(8,155,470)

(246,839,833)

Net

increase

(decrease)

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

(4,884,975)

$(147,208,405)

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

Class

C

Class

C

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

357,048

$5,437,996

Shares

redeemed

a

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

(1,180,480)

(17,455,426)

Net

increase

(decrease)

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

(823,432)

$(12,017,430)

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)

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

62

franklintempleton.com

Semiannual

Report

Franklin

Small-Mid

Cap

Growth

Fund

Shares

Amount

Class

R

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

109,448

$2,831,477

Shares

redeemed

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

(201,790)

(5,141,781)

Net

increase

(decrease)

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

(92,342)

$(2,310,304)

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)

Class

R6

Class

R6

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

1,555,968

$57,296,297

Shares

redeemed

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

(2,932,729)

(108,912,434)

Net

increase

(decrease)

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

(1,376,761)

$(51,616,137)

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

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

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

1,466,553

$53,900,057

Shares

redeemed

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

(1,886,782)

(66,513,046)

Net

increase

(decrease)

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

(420,229)

$(12,612,989)

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

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

63

franklintempleton.com

Semiannual

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

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:

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

0.700%

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

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

64

franklintempleton.com

Semiannual

Report

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

period

ended

October

31,

2022,

each

Fund's

annualized

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

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:

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

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Gross

effective

investment

management

fee

rate

........

0.544%

0.616%

0.457%

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%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

65

franklintempleton.com

Semiannual

Report

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

period:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

period

ended

October

31,

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

period

ended

October

3

1

,

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

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

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

$110,133

$50,967

$125,609

CDSC

retained

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

$6,479

$2,537

$13,891

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Transfer

agent

fees

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

$982,538

$734,672

$992,372

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

66

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$

66,393,267

$

296,011,418

$

(281,251,957)

$

—

$

—

$

81,152,728

81,152,728

$

352,846

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$98,247,070

$275,083,407

$(322,304,247)

$—

$—

$51,026,230

51,026,230

$329,603

Total

Affiliated

Securities

...

$164,640,337

$571,094,825

$(603,556,204)

$—

$—

$132,178,958

$682,449

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$69,092,890

$211,433,306

$(229,028,625)

$—

$—

$51,497,571

51,497,571

$393,914

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$87,800,835

$379,203,192

$(417,001,497)

$—

$—

$50,002,530

50,002,530

$413,059

Total

Affiliated

Securities

...

$156,893,725

$590,636,498

$(646,030,122)

$—

$—

$101,500,101

$806,973

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$195,919,198

$258,357,173

$(274,432,974)

$—

$—

$179,843,397

179,843,397

$1,251,575

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$22,421,425

$56,118,288

$(78,539,713)

$—

$—

$—

—

$8,372

Total

Affiliated

Securities

...

$218,340,623

$314,475,461

$(352,972,687)

$—

$—

$179,843,397

$1,259,947

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

67

franklintempleton.com

Semiannual

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,

2023.

h.

Other

Affiliated

Transactions

During

the

period

ended

October

31,

2022,

the

New

Jersey

Better

Educational

Savings

Trust

Program

-

Franklin

Templeton

Managed

Investments

Options

(529

Portfolios)

redeemed

out

of

the

Franklin

Growth

Opportunities

Fund.

As

a

result,

on

July

22,

2022,

the

Fund

delivered

portfolio

securities

and

cash

that

were

transferred

in-kind

to

the

529

Portfolios,

which

included

$145,404,409

of

net

realized

gains.

As

such

gains

are

not

taxable

to

the

Fund

and

are

not

distributed

to

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

to

paid-in

capital.  

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

period ended

October

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

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.

At

October

31,

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

passive

foreign

investment

company

shares

and

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

period

ended

October

31,

2022,

were

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

a

a

a

a

Cost

of

investments

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

$1,910,221,136

$2,658,861,404

$3,179,800,537

Unrealized

appreciation

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

$1,880,160,004

$590,387,142

$878,860,712

Unrealized

depreciation

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

(172,299,599)

(629,725,139)

(483,079,933)

Net

unrealized

appreciation

(depreciation)

.......

$1,707,860,405

$(39,337,997)

$395,780,779

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Purchases

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

$204,135,945

$306,173,105

$459,220,259

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

68

franklintempleton.com

Semiannual

Report

a

Sales

of

investments

excludes

in-kind

transactions

of

$222,425,536.

At

October

31,

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.

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

October

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Sales

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

$374,584,999

a

$372,909,205

$686,222,163

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Securities

lending

transactions

a

:

Equity

investments

b

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

$52,319,830

$50,609,730

$—

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.

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

11,829

Canva,

Inc.

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

12/22/21

$

20,158,531

$

8,386,412

6.

Investment

Transactions

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

69

franklintempleton.com

Semiannual

Report

Shares/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

(continued)

4,619

Celonis

SE

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

6/16/21

$

1,708,060

$

1,708,060

25,571

Celonis

SE,

D

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

10/04/22

9,427,681

9,455,900

6,309,366

ClearMotion

Inc

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

11/06/17

-

12/21/18

15,499,999

581,496

1,042,585

ClearMotion,

Inc.,

2/01/49

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

12/21/21

—

43,737

2,606,463

ClearMotion,

Inc.,

A-4

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

12/21/21

251,500

314,564

338,280

Databricks,

Inc.,

G

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

2/01/21

20,000,005

17,032,527

1,029,939

Fanatics

Holdings,

Inc.

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

8/13/20

-

3/22/21

19,730,229

63,764,163

37,734

IL

MAKIAGE

Cosmetics

(2013)

Ltd.

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

12/06/21

16,241,091

15,468,347

810,440

Lacework,

Inc.,

D

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

11/12/21

20,330,471

16,615,452

517,056

OneTrust

LLC,

C

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

4/01/21

10,139,623

5,262,387

556,026

Optoro,

Inc.,

E

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

7/24/18

-

12/01/21

10,942,592

8,357,218

142,857

Space

Exploration

Technologies

Corp.,

A

..........

5/25/22

9,999,990

9,999,990

1,753,060

Talkdesk,

Inc.,

C

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

7/15/20

11,517,955

13,065,426

805,800

Tanium,

Inc.,

G

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

9/14/15

4,000,233

5,300,904

504,854

Tempus

Labs,

Inc.,

F

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

5/29/19

12,499,983

12,353,013

126,131

Tempus

Labs,

Inc.,

G

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

2/06/20

4,837,427

3,086,235

Total

Restricted

Securities

(Value

is

5.4%

of

Net

Assets)

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

$187,285,370

$190,795,831

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

$

6,890,383

382,306

Benchling,

Inc.,

F

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

10/20/21

12,499,992

6,088,438

1,388,889

Checkr,

Inc.,

E

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

8/24/21

25,000,002

21,914,410

3,698,772

ClearMotion,

Inc

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

12/21/18

10,000,000

340,894

2,590,918

ClearMotion,

Inc.,

2/01/49

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

12/21/21

—

108,692

6,477,294

ClearMotion,

Inc.,

A-4

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

12/21/21

625,000

781,719

709,046

Newsela,

Inc.,

D

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

1/21/21

15,000,010

11,086,092

554,878

Optoro,

Inc.,

E

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

7/24/18

-

12/01/21

10,919,999

8,339,963

1,542,673

Smule,

Inc.,

144A,

G

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

5/31/16

11,099,995

2,841,383

352,675

Smule,

Inc.,

144A,

H

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

4/27/17

2,999,995

767,860

382,198

Smule,

Inc.,

6%,

8/05/23

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

8/05/22

382,198

382,198

361,111

Tula

eTechnology,

Inc.

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

11/01/18

—

—

3,611,111

Tula

eTechnology,

Inc.,

E

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

9/08/17

6,500,000

8,511,064

Total

Restricted

Securities

(Value

is

2.7%

of

Net

Assets)

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

$115,027,190

$68,053,096

9.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

70

franklintempleton.com

Semiannual

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

period

ended

October

31,

2022,

investments

in

“affiliated

companies”

were

as

follows:

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

$

5,527,858

146,765

Blaize,

Inc.,

9/19/25

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

9/20/22

-

9/22/22

5

180,581

227,435

Blaize,

Inc.,

D

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

3/02/21

-

11/09/21

2,374,990

1,659,876

1,720,949

Blaize,

Inc.,

D

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

3/02/21

-

11/09/21

17,971,019

11,338,739

260,815

Blaize,

Inc.,

D,

2/28/24

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

3/01/21

-

11/09/21

—

133,095

1,467,659

Blaize,

Inc.,

D-2

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

4/01/22

-

9/20/22

7,099,996

6,548,937

227,829

Databricks,

Inc.,

G

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

2/01/21

13,469,850

11,471,277

793,714

Fanatics

Holdings,

Inc.

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

8/13/20

-

3/22/21

14,052,061

49,139,327

423,782

Newsela,

Inc.,

D

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

1/21/21

8,965,193

6,625,926

767,526

OneTrust

LLC,

C

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

4/01/21

15,051,415

7,811,570

2,970,061

Phononic

Devices,

Inc.,

F

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

6/06/19

7,499,998

1,702,579

513,050

Phononic

Devices,

Inc.,

G-2

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

1/17/20

-

11/03/20

47

585,944

117,763

Phononic,

Inc.

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

8/25/20

-

7/01/22

393,086

474,890

775,689

Phononic,

Inc.,

Advance

Term

Loan,

12%,

PIK,

6/30/25

1/17/20

-

10/17/22

799,447

711,128

47,104

Phononic,

Inc.,

H,

10/17/27

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

1/17/20

-

7/01/22

44,240

45,832

Total

Restricted

Securities

(Value

is

2.9%

of

Net

Assets)

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

$99,070,429

$103,957,559

*

In

U.S.

dollars

unless

otherwise

indicated.

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

*

Held

at

End

of

Period

Investment

Income

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

ClearMotion

Inc

......

$

624,624

$

—

$

—

$

—

$

(43,128)

$

581,496

6,309,366

$

—

ClearMotion,

Inc.,

2/01/49

—

—

a

—

—

43,737

43,737

1,042,585

—

ClearMotion,

Inc.,

A-4

..

301,800

—

—

—

12,764

314,564

2,606,463

—

Optoro,

Inc.,

E

.......

9,587,680

—

—

—

(1,230,462)

8,357,218

556,026

—

9.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

71

franklintempleton.com

Semiannual

Report

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount*

Held

at

End

of

Period

Investment

Income

Franklin

Growth

Opportunities

Fund

(continued)

Non-Controlled

Affiliates

Talkdesk,

Inc.,

C

.....

$

26,669,323

$

—

$

—

$

—

$

(13,603,897)

$

13,065,426

1,753,060

$

—

Total

Affiliated

Securities

(Value

is

0.6%

of

Net

Assets)

..........

$37,183,427

$—

$—

$

—

$

(14,820,986)

$22,362,441

$—

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

1661,

Inc.,

F

........

11,377,470

—

—

—

(4,487,087)

6,890,383

3,436,485

—

Benchling,

Inc.,

F

.....

6,824,162

—

—

—

(735,724)

6,088,438

382,306

—

ClearMotion,

Inc

.....

379,232

—

—

—

(38,338)

340,894

3,698,772

—

ClearMotion,

Inc.,

2/01/49

—

—

a

—

—

108,692

108,692

2,590,918

—

ClearMotion,

Inc.,

A-4

..

750,000

—

—

—

31,719

781,719

6,477,294

—

EyePoint

Pharmaceuticals,

Inc

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

19,500,410

2,159,555

—

—

(10,775,725)

10,884,240

2,015,600

—

Nerdy,

Inc

..........

16,226,640

118,579

—

—

—

b

—

b

—

b

—

Optoro,

Inc.,

E

.......

9,567,885

—

—

—

(1,227,922)

8,339,963

554,878

—

Paymentus

Holdings,

Inc.,

A

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

27,620,424

6,438,836

—

—

(11,228,140)

22,831,120

2,195,300

—

Total

Affiliated

Securities

(Value

is

2.2%

of

Net

Assets)

..........

$92,246,223

$8,716,970

$—

$

—

$

(28,352,525)

$56,265,449

$—

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Benchling,

Inc.,

F

.....

6,195,842

—

—

—

(667,984)

5,527,858

347,106

—

Blaize,

Inc.,

9/19/25

...

—

5

(5)

5

180,576

180,581

146,765

—

Blaize,

Inc.,

D

.

......

2,374,990

—

—

—

(715,114)

1,659,876

227,435

—

Blaize,

Inc.,

D

.

.

.....

14,358,305

—

—

—

(3,019,566)

11,338,739

1,720,949

—

Blaize,

Inc.,

D,

2/28/24

.

67,020

—

—

—

66,075

133,095

260,815

—

Blaize,

Inc.,

D-2

......

—

7,099,996

a

—

—

(551,059)

6,548,937

1,467,659

—

Phononic

Devices,

Inc.,

F

6,044,404

—

—

—

(4,341,825)

1,702,579

2,970,061

—

Phononic

Devices,

Inc.,

G-2

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

1,605,117

—

—

—

(1,019,173)

585,944

513,050

—

Phononic,

Inc.

.......

—

393,087

—

—

81,803

474,890

117,763

—

Phononic,

Inc.,

H,

10/17/27

.........

—

44,239

—

—

1,593

45,832

47,104

—

Interest

Blaize,

Inc.,

D,

10%,

8/24/23

..........

4,725,000

—

(4,725,000)

a

—

—

—

c

—

157,500

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

72

franklintempleton.com

Semiannual

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.

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

period ended

October

31,

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

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount*

Held

at

End

of

Period

Investment

Income

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Non-Controlled

Affiliates

Phononic,

Inc.,

Advance

Term

Loan,

12%,

PIK,

6/30/25

..........

$

—

$

799,446

$

—

$

—

$

(88,318)

$

711,128

775,689

$

43,779

Phononic,

Inc.,

Advance

Term

Loan,

B,

12%,

PIK,

7/31/26

..........

112,590

3,466

(762)

6

(115,300)

—

c

—

1,790

Phononic,

Inc.,

Advance

Term

Loan,

D,

12%,

PIK,

12/01/25

......

266,507

8,105

(1,238)

8

(273,382)

—

c

—

7,459

Phononic,

Inc.,

Term

Loan,

A,

12%,

PIK,

1/17/24

.

568,451

17,507

(5,116)

28

(580,870)

 —

c

—

8,644

Phononic,

Inc.,

Term

Loan,

C,

12%,

PIK,

8/25/24

108,823

3,310

(624)

4

(111,513)

—

c

—

2,985

Total

Affiliated

Securities

(Value

is

0.8%

of

Net

Assets)

..........

$36,427,049

$8,369,161

$(4,732,745)

$51

$(11,154,057)

$28,909,459

$222,157

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

b

As

of

October

31,

2022,

no

longer

an

affiliate.

c

As

of

October

31,

2022,

no

longer

held

by

the

fund.

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

73

franklintempleton.com

Semiannual

Report

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

October

31,

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

:

Aerospace

&

Defense

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

$

1,410,768

$

—

$

9,999,990

$

11,410,758

Automobiles

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

51,992,446

—

—

51,992,446

Beverages

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

78,655,140

—

—

78,655,140

Biotechnology

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

7,897,478

—

—

7,897,478

Capital

Markets

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

173,569,140

—

—

173,569,140

Chemicals

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

55,143,260

—

—

55,143,260

Commercial

Services

&

Supplies

...........

29,244,567

—

11,163,960

40,408,527

Electric

Utilities

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

42,009,805

—

—

42,009,805

Electronic

Equipment,

Instruments

&

Components

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

728,088

—

—

728,088

Entertainment

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

18,858,006

—

—

18,858,006

Equity

Real

Estate

Investment

Trusts

(REITs)

.

97,295,171

—

—

97,295,171

Food

&

Staples

Retailing

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

8,864,514

—

—

8,864,514

Food

Products

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

25,351,817

—

—

25,351,817

Health

Care

Equipment

&

Supplies

.........

110,159,873

—

15,468,347

125,628,220

Health

Care

Providers

&

Services

..........

142,304,414

—

—

142,304,414

Health

Care

Technology

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

38,041,937

—

—

38,041,937

Hotels,

Restaurants

&

Leisure

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

98,600,648

—

—

98,600,648

Industrial

Conglomerates

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

43,610,907

—

—

43,610,907

Interactive

Media

&

Services

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

149,954,562

—

—

149,954,562

Internet

&

Direct

Marketing

Retail

..........

223,929,846

—

—

223,929,846

IT

Services

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

275,607,595

—

8,386,412

283,994,007

Leisure

Products

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

—

—

63,764,163

63,764,163

Life

Sciences

Tools

&

Services

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

224,562,249

—

—

224,562,249

Machinery

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

19,847,418

—

—

19,847,418

Pharmaceuticals

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

128,336,539

—

—

128,336,539

Professional

Services

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

81,588,060

—

—

81,588,060

Road

&

Rail

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

84,280,565

—

—

84,280,565

Semiconductors

&

Semiconductor

Equipment

.

168,579,211

—

—

168,579,211

Software

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

697,869,034

—

581,496

698,450,530

Technology

Hardware,

Storage

&

Peripherals

.

189,889,969

—

—

189,889,969

Textiles,

Apparel

&

Luxury

Goods

..........

26,923,725

—

—

26,923,725

Convertible

Preferred

Stocks

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

—

—

38,910,366

38,910,366

Preferred

Stocks

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

—

—

42,477,360

42,477,360

Warrants

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

—

—

43,737

43,737

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

132,178,958

—

—

132,178,958

Total

Investments

in

Securities

...........

$3,427,285,710

$—

$190,795,831

$3,618,081,541

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

74

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

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

$

130,527,961

$

—

$

—

$

130,527,961

Airlines

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

34,730,938

—

—

34,730,938

Banks

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

69,644,669

—

—

69,644,669

Biotechnology

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

201,778,157

—

—

201,778,157

Building

Products

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

23,561,982

—

—

23,561,982

Capital

Markets

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

91,825,372

—

—

91,825,372

Communications

Equipment

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

26,450,670

—

—

26,450,670

Construction

&

Engineering

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

73,084,624

—

—

73,084,624

Diversified

Consumer

Services

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

10,731,123

—

—

10,731,123

Electronic

Equipment,

Instruments

&

Components

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

20,841,920

—

—

20,841,920

Energy

Equipment

&

Services

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

33,231,532

—

—

33,231,532

Equity

Real

Estate

Investment

Trusts

(REITs)

.

54,366,720

—

—

54,366,720

Food

&

Staples

Retailing

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

47,304,360

—

—

47,304,360

Food

Products

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

101,966,798

—

—

101,966,798

Health

Care

Equipment

&

Supplies

.........

162,733,655

—

—

162,733,655

Health

Care

Providers

&

Services

..........

89,922,779

—

—

89,922,779

Health

Care

Technology

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

50,923,132

—

—

50,923,132

Hotels,

Restaurants

&

Leisure

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

154,340,044

—

—

154,340,044

Household

Durables

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

76,458,699

—

—

76,458,699

Internet

&

Direct

Marketing

Retail

..........

3,576,413

—

—

3,576,413

IT

Services

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

138,499,246

—

—

138,499,246

Life

Sciences

Tools

&

Services

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

14,008,608

—

—

14,008,608

Machinery

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

113,371,835

—

—

113,371,835

Media

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

15,556,038

—

—

15,556,038

Oil,

Gas

&

Consumable

Fuels

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

34,833,090

—

—

34,833,090

Personal

Products

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

29,056,734

—

—

29,056,734

Pharmaceuticals

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

64,451,891

—

—

64,451,891

Professional

Services

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

22,857,490

—

—

22,857,490

Semiconductors

&

Semiconductor

Equipment

.

107,534,643

—

—

107,534,643

Software

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

207,099,313

—

340,894

207,440,207

Specialty

Retail

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

125,092,559

—

—

125,092,559

Textiles,

Apparel

&

Luxury

Goods

..........

35,774,260

—

—

35,774,260

Trading

Companies

&

Distributors

..........

83,832,955

—

—

83,832,955

Convertible

Preferred

Stocks

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

—

—

45,979,323

45,979,323

Preferred

Stocks

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

—

—

21,241,989

a

21,241,989

Warrants

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

—

—

108,692

108,692

Convertible

Bonds

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

—

—

382,198

382,198

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

101,500,101

—

—

101,500,101

Total

Investments

in

Securities

...........

$2,551,470,311

$—

$68,053,096

$2,619,523,407

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

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

59,821,464

—

—

59,821,464

Airlines

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

46,507,851

—

—

46,507,851

Banks

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

35,362,832

—

—

35,362,832

Beverages

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

17,945,200

—

—

17,945,200

Biotechnology

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

105,255,598

—

—

105,255,598

Building

Products

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

49,469,337

—

—

49,469,337

Capital

Markets

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

168,277,228

—

—

168,277,228

Chemicals

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

2,602,791

—

—

2,602,791

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

75

franklintempleton.com

Semiannual

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 period.

At

October

31,

2022,

the

reconciliation is

as follows:

Level

1

Level

2

Level

3

Total

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Commercial

Services

&

Supplies

...........

$

45,727,376

$

—

$

—

$

45,727,376

Communications

Equipment

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

59,523,550

—

—

59,523,550

Containers

&

Packaging

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

55,878,673

—

—

55,878,673

Electrical

Equipment

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

57,187,200

—

—

57,187,200

Electronic

Equipment,

Instruments

&

Components

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

116,680,082

—

—

116,680,082

Entertainment

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

14,312,326

—

—

14,312,326

Equity

Real

Estate

Investment

Trusts

(REITs)

.

91,791,968

—

—

91,791,968

Food

Products

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

10,310,355

—

—

10,310,355

Health

Care

Equipment

&

Supplies

.........

215,264,898

—

—

215,264,898

Health

Care

Providers

&

Services

..........

50,944,887

—

—

50,944,887

Health

Care

Technology

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

60,457,885

—

—

60,457,885

Hotels,

Restaurants

&

Leisure

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

213,876,835

—

—

213,876,835

Household

Durables

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

47,886,575

—

—

47,886,575

Interactive

Media

&

Services

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

58,889,129

—

—

58,889,129

IT

Services

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

144,080,987

22,985,514

—

167,066,501

Leisure

Products

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

—

—

49,139,327

49,139,327

Life

Sciences

Tools

&

Services

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

155,972,820

—

—

155,972,820

Machinery

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

53,501,110

—

—

53,501,110

Oil,

Gas

&

Consumable

Fuels

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

59,857,870

—

—

59,857,870

Personal

Products

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

29,756,692

—

—

29,756,692

Pharmaceuticals

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

45,672,624

—

—

45,672,624

Professional

Services

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

120,122,675

—

—

120,122,675

Road

&

Rail

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

95,160,670

—

—

95,160,670

Semiconductors

&

Semiconductor

Equipment

.

159,784,975

—

—

159,784,975

Software

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

447,737,936

—

—

447,737,936

Specialty

Retail

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

201,527,104

—

—

201,527,104

Textiles,

Apparel

&

Luxury

Goods

..........

91,302,200

—

—

91,302,200

Trading

Companies

&

Distributors

..........

66,352,257

—

—

66,352,257

Convertible

Preferred

Stocks

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

—

—

52,686,762

52,686,762

Preferred

Stocks

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

—

—

1,060,834

1,060,834

Warrants

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

—

—

359,508

359,508

Senior

Floating

Rate

Interests

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

—

—

711,128

711,128

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

179,843,397

13,990,886

—

193,834,283

Total

Investments

in

Securities

...........

$3,434,647,357

$36,976,400

b

$103,957,559

$3,575,581,316

a

Includes

financial

instruments

determined

to

have

no

value

at

October

31,

2022.

b

Includes

foreign

securities

valued

at

$22,985,514,

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.

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

76

franklintempleton.com

Semiannual

Report

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Growth

Opportunities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

$

—

$

9,999,990

$

—

$

—

$

—

$

—

$

—

$

—

$

9,999,990

$

—

Commercial

Services

&

Supplies

........

6,164,029

4,986,169

—

—

—

—

—

13,762

11,163,960

13,762

Health

Care

Equipment

&

Supplies

.......

14,889,942

 —

c

 —

—

—

—

—

578,405

15,468,347

578,405

Hotels,

Restaurants

&

Leisure

.........

29,918,137

—

(15,142,819)

—

—

—

—

(14,775,318)

—

—

IT

Services

........

8,371,768

—

—

—

—

—

—

14,644

8,386,412

14,644

Leisure

Products

....

68,576,928

—

—

—

—

—

—

(4,812,765)

63,764,163

(4,812,765)

Software

..........

17,832,356

15,499,999

(12,004,812)

—

—

—

—

(20,746,047)

581,496

(14,918,503)

Convertible

Preferred

Stocks

:

Software

..........

43,394,108

—

c

—

—

—

—

—

(4,483,742)

38,910,366

(4,483,742)

Preferred

Stocks

:

Commercial

Services

&

Supplies

........

9,587,680

—

—

—

—

—

—

(1,230,462)

8,357,218

(1,230,462)

Health

Care

Providers

&

Services

........

21,812,596

—

—

—

—

—

—

(6,373,348)

15,439,248

(6,373,348)

Software

..........

33,530,513

251,500

(15,499,999)

—

—

—

—

398,880

18,680,894

(14,476,495)

Warrants

:

Software

..........

—

c

—

c

—

—

—

—

—

43,737

43,737

43,737

Corporate

Bonds

:

Software

..........

301,800

—

(251,500)

—

—

—

—

(50,300)

—

—

Escrows

and

Litigation

Trusts

...........

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

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

$254,379,857

$30,737,658

$(42,899,130)

$—

$—

$—

$—

$(51,422,554)

$190,795,831

$(45,64

4,767)

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Hotels,

Restaurants

&

Leisure

.........

15,035,973

—

(7,649,483)

—

—

—

—

(7,386,490)

—

—

Software

..........

—

10,000,000

—

—

—

—

—

(9,659,106)

340,894

(9,659,106)

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

12,627,000

—

—

—

—

—

—

(1,540,908)

11,086,092

(1,540,908)

Software

..........

33,213,053

—

c

—

—

—

—

—

(5,210,205)

28,002,848

(5,

210

,

205

)

Specialty

Retail

.....

11,377,470

—

—

—

—

—

—

(4,487,087)

6,890,383

(4,487,087)

Preferred

Stocks

:

Auto

Components

....

8,860,467

c

—

—

—

—

—

—

(349,403)

8,511,064

c

(349,403)

Commercial

Services

&

Supplies

........

9,567,885

—

—

—

—

—

—

(1,227,922)

8,339,963

(1,227,922)

Software

..........

5,054,447

624,999

(10,000,000)

—

—

—

—

8,711,516

4,390,962

(909,253)

Warrants

:

Software

..........

—

c

—

c

—

—

—

—

—

108,692

108,692

108,692

Convertible

Bonds

:

Software

..........

—

382,198

—

—

—

—

—

—

382,198

—

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

77

franklintempleton.com

Semiannual

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

October

31,

2022,

are

as

follows:

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Small

Cap

Growth

Fund

(continued)

Assets:

Investments

in

Securities:

Corporate

Bonds

:

Software

..........

$

750,000

$

—

$

(625,000)

$

—

$

—

$

—

$

—

$

(125,000)

$

—

$

—

Escrows

and

Litigation

Trusts

...........

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

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

$96,486,295

$11,007,197

$(18,274,483)

$—

$—

$—

$—

$(21,165,913)

$68,053,096

$(23,275,192)

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Leisure

Products

....

52,848,244

—

—

—

—

—

—

(3,708,917)

49,139,327

(3,708,917)

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

7,546,894

—

—

—

—

—

—

(920,968)

6,625,926

(920,968)

Semiconductors

&

Semiconductor

Equipment

.......

6,044,404

—

—

—

—

—

—

(4,341,825)

1,702,579

(4,341,825)

Software

..........

48,448,409

7,099,996

—

c

—

—

—

—

(11,190,148)

44,358,257

(11,611,860)

Preferred

Stocks

:

Semiconductors

&

Semiconductor

Equipment

.......

1,605,117

393,086

—

—

—

—

—

(937,369)

1,060,834

(937,369)

Warrants

:

Semiconductors

&

Semiconductor

Equipment

.......

—

44,2

39

—

—

—

—

—

1,593

45,832

1,593

Software

..........

67,020

5

 (5)

—

—

—

 5

246,651

313,676

246,651

Corporate

Bonds

:

Software

..........

4,725,000

—

(4,725,000)

—

—

—

—

—

—

—

Senior

Floating

Rate

Interests

:

Semiconductors

&

Semiconductor

Equipment

.......

1,056,371

8

31

,

834

(

1,197,576

)

—

—

(

4,136

)

46

24

,

589

711,128

(88,318)

Escrows

and

Litigation

Trusts

...........

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

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

$122,341,459

$8,369,160

$(5,922,581)

$—

$—

$(4,136)

$51

$(20,826,394)

$103,957,559

$(21,361,013)

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

financial

instruments

determined

to

have

no

value.

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

78

franklintempleton.com

Semiannual

Report

Description

Fair

Value

at

End

of

Period

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

Stocks:

Health

Care

Equipment

&

Supplies.

$15,468,347

Market

comparables

Discount

for

lack

of

marketability

8.4%

Decrease

c

EV

/

EBITDA

multiple

26.1x

Increase

c

EV

/

revenue

multiple

6.3x

Increase

c

IT

Services.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

 8,386,412

Market

comparables

Discount

for

lack

of

marketability

18.8%

Decrease

c

EV

/

revenue

multiple

9.8x

–

64.3x

Increase

c

Leisure

Products

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

63,764,163

Market

comparables

Discount

for

lack

of

marketability

17.0%

Decrease

d

EV

/

revenue

multiple

5.7x

Increase

d

Convertible

Preferred

Stocks:

Software.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

38,910,366

Market

comparables

Discount

for

lack

of

marketability

13.4%

–

17.7%

(15.2%)

Decrease

c

EV

/

revenue

multiple

7.3x

–

53.9x

(23.2x)

Increase

c

Volatility

of

peers

59.5%

Decrease

Preferred

Stocks:

Commercial

Services

&

Supplies

.

8,357,218

Discounted

cash

flow

Discount

for

lack

of

marketability

12.6%

Decrease

c

Discount

rate

16.5%

Decrease

Long

term

growth

rate

5.0%

Increase

Market

comparables

EV

/

revenue

multiple

7.7x

Increase

Volatility

of

peers

52.3%

Increase

c

Health

Care

Providers

&

Services.

12,353,013

Discounted

cash

flow

Discount

for

lack

of

marketability

9.3%

Decrease

Discount

rate

11.3%

Decrease

c

Long

term

growth

rate

5.0%

Increase

c

Software

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

18,366,330

Market

comparables

Discount

for

lack

of

marketability

15.1%

–

15.8%

(15.6%)

Decrease

c

EV

/

revenue

multiple

7.5x

–

16.2x

(13.7x)

Increase

c

Volatility

of

peers

53.3%

Decrease

Volatility

of

peers

66.6%

Increase

All

Other

Investments.

.

.

.

25,189,982

e,f 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$190,795,831

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

79

franklintempleton.com

Semiannual

Report

Description

Fair

Value

at

End

of

Period

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:

Convertible

Preferred

Stocks:

Diversified

Consumer

Services.

$11,086,092

Discounted

cash

flow

Discount

for

lack

of

marketability

16.9%

Decrease

c

Discount

rate

19.0%

Decrease

c

Long

term

growth

rate

5.0%

Increase

Volatility

of

peers

60.5%

Decrease

Software.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

 28,002,848

Market

comparables

Discount

for

lack

of

marketability

14.4%

-

15.4%

(15.2%)

Decrease

c

EV

/

revenue

multiple

5.6x

-

28.3x

(11.6x)

Increase

c

Volatility

of

peers

54.3%

Decrease

Specialty

Retail

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

6,890,383

Market

comparables

Discount

for

lack

of

marketability

17.2%

Decrease

c

EV

/

revenue

multiple

1.6x

-

2.1x

Increase

c

Preferred

Stocks:

Auto

Components.

.

.

.

.

.

.

.

.

.

.

.

.

8,511,064

Market

comparables

Discount

for

lack

of

marketability

12.6%

Decrease

c

EV

/

EBITDA

multiple

21.9x

Increase

c

Volatility

of

peers

43.6%

Increase

Commercial

Services

&

Supplies.

.

.

8,339,963

Discounted

cash

flow

Discount

for

lack

of

marketability

12.6%

Decrease

c

Discount

rate

16.5%

Decrease

Long

term

growth

rate

5.0%

Increase

Market

comparables

EV

/

revenue

multiple

7.7x

Increase

Volatility

of

peers

52.3%

Increase

c

Software.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

2,841,383

Market

comparables

Discount

for

lack

of

marketability

10.1%

Decrease

EV

/

revenue

multiple

0.9x

-

2.0x

Increase

c

Volatility

of

peers

34.8%

Decrease

All

Other

Investments.

.

.

.

2,381,363

e,f 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$68,053,096

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

80

franklintempleton.com

Semiannual

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

Description

Fair

Value

at

End

of

Period

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

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

$49,139,327

Market

comparables

Discount

for

lack

of

marketability

17.0%

Decrease

c

EV

/

revenue

multiple

5.7x

Increase

d

Convertible

Preferred

Stocks:

Diversified

Consumer

Services

..

6,625,926

Discounted

cash

flow

Discount

for

lack

of

marketability

16.9%

Decrease

c

Discount

rate

19.0%

Decrease

c

Long

term

growth

rate

5.0%

Increase

Volatility

of

peers

60.5%

Decrease

Software.

.

.

.

.

.

.

.

.

.

.

.

.

.

42,698,381

Market

comparables

Discount

for

lack

of

marketability

13.4%

–

14.4%

(13.7%)

Decrease

c

EV

/

revenue

multiple

7.3x

–

28.3x

(16.1x)

Increase

c

Option

pricing

model

Discount

for

lack

of

marketability

18.7%

Decrease

c

Underlying

equity

value

$610.5

mil

Increase

c

Volatility

of

peers

59.4%

Decrease

All

Other

Investments.

.

.

.

.

.

.

.

.

5,493,925

e,f 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$103,957,559

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

financial

instruments

determined

to

have

no

value

at

October

31,

2022.

Abbreviations

List

EBITDA

-

Earnings

before

interest,

taxes,

depreciation

and

amortization

EV

-

Enterprise

value

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

81

franklintempleton.com

Semiannual

Report

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. 

In June

2022,

the

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

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

Selected

Portfolio

ADR

American

Depositary

Receipt

PIK

Payment-In-Kind

13.

New

Accounting

Pronouncements

(continued)

Franklin

Strategic

Series

Shareholder

Information

82

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

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.

Franklin

Strategic

Series

Shareholder

Information

83

franklintempleton.com

Semiannual

Report

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

S

12/22

©

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.

Semiannual

Report

and

Shareholder

Letter

Franklin

Strategic

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Series

October

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

six

months

ended

October

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment

and

rising

wages

and

personal

consumption.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

second

quarter

due

to

declines

in

inventory

and

business

investment

but

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply-chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

rate

at

every

meeting

during

the

six-

month

reporting

period,

increasing

it

to

a

range

of

3.00%–

3.25%

by

period-end.

The

Fed

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

agency

mortgage-backed

securities

holdings,

and

anticipated

future

federal

funds

rate

increases

would

be

appropriate.

Shortly

after

the

reporting

period,

the

Fed

raised

the

federal

funds

rate

again

by

0.75%

at

its

November

2022

meeting,

increasing

it

to

a

range

of

3.75%–4.00%.

During

the

six-month

period,

investor

concerns

about

inflation,

geopolitics

and

interest

rates

pressured

stock

and

bond

valuations.

In

this

environment,

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

-5.50%

total

return

for

the

six-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’

semiannual

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

October

31,

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

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

Biotechnology

Discovery

Fund

4

Franklin

Natural

Resources

Fund

11

Financial

Highlights

and

Schedules

of

Investments

18

Financial

Statements

33

Notes

to

Financial

Statements

37

Shareholder

Information

50

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

-5.50%

total

return

for

the

six

months

ended

October

31,

2022.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices,

particularly

as

the

period

progressed.

Although

consumer

spending

continued

to

rise,

deteriorating

financial

conditions

negatively

impacted

consumer

sentiment,

which

improved

slightly

at

the

end

of

the

period

after

falling

in

June

2022

to

the

lowest

level

in

over

60

years.

Elevated

inflation

was

a

major

concern

for

both

consumers

and

investors,

as

inflation

accelerated

in

June

2022

to

the

highest

rate

since

1981.

Continued

supply-chain

disruptions,

strong

consumer

demand,

and

volatile

energy

prices

drove

inflation

higher.

Russia’s

invasion

of

Ukraine

also

disrupted

financial

markets

and

led

to

a

rise

in

oil

and

commodity

prices,

although

much

of

that

increase

abated

by

period-end.

The

unemployment

rate

increased

marginally

from

3.6%

in

April

2022

to

3.7%

in

October

2022

given

more

people

entering

the

labor

market,

although

notable

employment

gains

occurred

in

the

leisure

and

hospitality

and

health

care

sectors.

Wage

growth

remained

strong

throughout

the

period,

adding

to

some

investors’

inflation

concerns.

U.S.

gross

domestic

product

expanded

in

2022’s

third

quarter,

recovering

from

two

successive

quarters

of

contraction,

amid

a

narrowing

trade

deficit

and

strong

consumer

spending.

Increased

nonresidential

fixed

investment

and

government

spending

also

contributed

to

the

third-quarter

economic

growth.

Rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses.

Mortgage

rates

reached

the

highest

level

since

2007,

and

new

home

construction

slowed

toward

period-end.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

continued

to

raise

the

federal

funds

target

rate.

The

Fed

raised

the

federal

funds

rate

at

each

of

its

four

meetings

during

the

period

to

end

at

a

range

of

3.00%–

3.25%.

The

Fed

noted

in

its

September

2022

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

Fed

Chair

Jerome

Powell

indicated

that

reducing

inflation

was

likely

to

require

a

period

of

below-trend

growth.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

October

31,

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

Semiannual

Report

Franklin

Biotechnology

Discovery

Fund

This

semiannual

report

for

Franklin

Biotechnology

Discovery

Fund

covers

the

period

ended

October

31,

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

+2.56%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

NASDAQ

Biotechnology

Index

®

,

which

tracks

U.S.-

and

international-based

biotechnology

stocks,

posted

a

+9.61%

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

-5.50%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

8

.

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

During

a

difficult

six-month

stretch

for

global

equities,

the

health

care

sector

was

an

outlier

to

the

upside,

having

posted

modest

overall

gains

while

eight

out

of

10

other

major

sector

groups

were

trading

substantially

lower

(with

many

declining

into

bear

market

territory).

Biotechnology

and

pharmaceuticals

industry

stocks

started

to

show

resilience

during

the

late-summer

selloff

and

posted

overall

gains

in

September

and

October,

though

only

biotechnology

advanced

for

the

semiannual

period

as

a

whole.

In

contrast,

life

sciences

tools

and

services

companies,

along

with

other

technology-oriented

health

care

stocks,

tracked

the

market

downdraft

and

generally

shed

value.

As

their

generally

steeply

discounted

valuations

appeared

to

offer

good

entry

points

for

investors,

biotechnology

industry

shares

showed

resilience

amid

the

market

volatility

and

were

no

longer

the

prominent

underperformers

as

they

were

in

late

2021

and

the

first

four

months

of

2022.

Investors

were

still

waiting

to

see

if

the

industry’s

technical

rebound

is

supported

by

fundamentals

as

a

higher

number

of

drug

approvals,

successes

in

clinical

trials,

acquisitions

and

a

positive

regulatory

backdrop

could

go

a

long

way

toward

restoring

greater

confidence,

in

our

view.

Although

new

drug

approvals

and

new

molecular

entity

approvals—an

indicator

of

innovation

in

drug

research—have

yet

to

pick

up

the

pace,

merger-and-acquisition

(M&A)

news

flow

was

beginning

to

increase

with

a

mild

uptick

in

announced

deals.

Businesses

globally,

including

biotechnology

and

pharmaceuticals

companies,

grew

more

nervous

about

overall

economic

conditions

and

prospects

for

2023.

Business

sentiment

was

struggling

to

break

free

from

the

pandemic,

with

Russia’s

invasion

of

Ukraine

and

historically

Portfolio

Composition

10/31/22

%

of

Total

Net

Assets

Biotechnology

78.5%

Pharmaceuticals

14.8%

Life

Sciences

Tools

&

Services

5.4%

Health

Care

Providers

&

Services

1.1%

Short-Term

Investments

&

Other

Net

Assets

0.2%

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

22

.

Franklin

Biotechnology

Discovery

Fund

5

franklintempleton.com

Semiannual

Report

elevated

inflation

adding

to

the

general

angst.

The

war

introduced

some

sector-specific

disruptions,

specifically

surrounding

clinical

trial

recruitment,

as

a

number

of

CROs

(contract

research

organizations)

and

trial

sites

in

Ukraine

were

sources

of

patient

recruitment

in

fields

such

as

psychiatry.

Moreover,

there

are

plenty

of

other

geopolitical

uncertainties,

including

China-induced

tensions

in

Taiwan,

the

ongoing

conflict

between

the

U.S.

and

Iran

and

an

increased

sense

of

detachment

between

the

U.S.

and

China.

Partially

as

a

result,

economists’

consensus

expectations

for

the

global

economy

through

the

end

of

2022

slumped.

On

the

upside,

the

Omicron

wave

of

the

COVID-19

virus

peaked

in

many

regions,

particularly

regarding

hospitalizations,

while

subsequent

strains

were

proving

to

be

much

milder.

Meanwhile,

many

biotechnology

and

pharmaceuticals

(biopharma)

companies

continued

to

benefit

from

robust

drug

development

pipelines,

while

the

industry

was

seeing

greater

support

from

the

return

in

demand

for

elective

procedures,

drug

sales,

medical

equipment

and

diagnostics,

as

impacts

on

hospital

utilization

from

the

pandemic

generally

subsided.

The

Fund’s

absolute

gains

during

the

six-month

period

derived

almost

exclusively

from

its

biotechnology

industry

holdings,

which

represented

about

three

quarters

of

the

overall

portfolio.

Their

gains

were

countered

by

significant

declines

for

the

Fund’s

much

smaller

allocations

in

the

pharmaceuticals,

life

sciences

tools

and

services,

and

health

care

services

industries.

Among

our

top

contributors

for

the

period

were

some

of

the

world’s

largest

biotechnology

companies,

including

Gilead

Sciences,

Biogen,

Amgen,

Vertex

Pharmaceuticals

and

Regeneron

Pharmaceuticals.

Although

these

large-

capitalization

holdings

were

crucial

to

the

Fund’s

results,

we

also

continued

our

longer-term

focus

on

smaller

companies

with

strong

drug

development

pipelines

and

the

potential

to

become

acquisition

targets

by

larger,

more

diversified

drugmakers.

We

did,

however,

maintain

a

positive

parallel

view

on

large-cap

biopharma

companies

due

to

several

factors,

including

consistent

and

moderate

earnings

growth,

innovation

driven

by

strong

research

and

development,

reasonable

valuations,

and

significant

M&A

opportunities.

In

our

view,

smaller

companies

with

late-stage,

clinically

de-

risked

pipeline

assets

and

approved

products

were

the

most

likely

candidates

to

be

acquired

by

large

pharmaceuticals

companies

looking

to

boost

their

near-term

revenues.

Among

the

smaller

biotechnology

companies

that

made

strides

and

appreciated

solidly,

the

Fund

benefited

foremost

from

the

rallies

of

Day

One

Biopharmaceuticals,

Argenx,

Ascendis

Pharma,

IVERIC

bio,

Neurocrine

Biosciences,

Prometheus

Biosciences

and

Karuna

Therapeutics.

Within

this

collection

of

key

contributors,

the

share

value

of

Day

One

more

than

doubled

during

the

period,

while

Prometheus

and

Karuna

nearly

doubled.

In

particular,

Day

One,

which

specializes

in

targeted

cancer

therapies,

reported

initial

interim

data

from

its

pivotal

FIREFLY-1

trial

for

its

pan-RAF

kinase

inhibitor

tovorafenib

for

relapsed

pediatric

low-grade

glioma

(brain

cancer).

The

results

were

very

impressive

and

well

above

consensus

expectations

in

terms

of

response

rates

and

overall

tumor

reduction,

which

every

patient

in

the

clinical

trial

cohort

experienced.

While

a

longer

follow-up

is

needed

to

better

understand

the

durability

of

response

to

this

highly

active

monotherapy,

early

indications

suggest

that

the

tumor

reduction

observed

is

durable

and

ongoing

in

most

patients.

European

biotechnology

company

Argenx

is

a

commercial-

stage

mid-capitalization

company

with,

in

our

view,

a

best-

in-class

antibody

discovery

platform,

a

smart

management

team,

and

a

best-in-class

drug

(Vyvgart)

with

potential

applicability

across

multiple

severe

autoimmune

diseases.

The

company

is

now

in

the

commercial

stage

and

recently

reported

positive

developments

on

several

fronts,

including

the

addition

of

new

high-value

pipeline

programs.

Biopharmaceutical

company

Ascendis

rallied

as

it

continued

to

advance

its

development

pipeline

of

three

independent

endocrinology

rare

disease

product

candidates

in

clinical

trials,

while

also

advancing

oncology

as

a

second

therapeutic

area

of

focus

and

expanding

into

new

therapeutic

areas

to

address

unmet

patient

needs.

Ascendis

takes

a

distinct

approach

by

utilizing

its

TransCon

technology

platform

to

extend

the

half-life

of

protein-based

therapeutics.

We

believe

Ascendis’

three

lead

products

are

best-in-class

and

represent

blockbuster

sales

opportunities.

IVERIC

bio,

which

specializes

in

therapies

for

retinal

(eye)

diseases,

saw

its

share

price

rise

significantly

after

it

announced

positive

topline

results

from

a

late-stage

clinical

study

evaluating

Zimura

in

treating

geographic

atrophy,

which

occurs

in

the

advanced

stage

of

age-related

macular

degeneration.

The

experimental

drug

achieved

a

statistically

significant

level

of

improvement,

compared

to

the

control

group

in

the

study,

and

its

safety

profile

was

also

promising.

Zimura

is

IVERIC’s

lead

pipeline

candidate,

and

the

company

does

not

have

any

other

products

on

the

market.

Exclusivity

was

another

factor

in

the

rally,

as

there

currently

aren’t

any

approved

drugs

in

the

U.S.

or

Europe

for

treating

patients

with

geographic

atrophy.

Although

nearly

all

of

the

Fund’s

pharmaceuticals

industry

holdings

sold

off,

there

were

two

distinct

outliers

to

the

upside

with

Pliant

Therapeutics

and

Revance

Therapeutics.

During

the

six

months

under

review,

Pliant’s

stock

prices

Franklin

Biotechnology

Discovery

Fund

6

franklintempleton.com

Semiannual

Report

more

than

quadrupled.

Pliant,

which

specializes

in

developing

novel

therapies

for

fibrotic

diseases,

reported

surprisingly

positive

Phase

2a

clinical

trial

data

in

idiopathic

pulmonary

fibrosis

(a

progressive

and

fatal

lung

disease)

for

its

dual-integrin

inhibitor

PLN-74089.

The

treatment

showed

encouraging

preliminary

efficacy

measurements

despite

a

short

treatment

duration,

and

we

found

its

safety

profile

to

be

clean

with

no

treatment

discontinuations

due

to

adverse

reactions

thus

far.

Studies

are

ongoing,

with

the

next

key

readout

scheduled

to

arrive

in

the

first

quarter

of

2023.

Conversely,

the

Fund’s

pharmaceuticals

holdings

generally

fared

poorly,

with

EyePoint

Pharmaceuticals,

Athira

Pharma

(sold

by

period-end)

and

Jazz

Pharmaceuticals

topping

the

list

of

key

industry

detractors.

In

particular,

Athira

Pharma

lost

most

of

its

share

value

after

its

mid-stage

clinical

trial

failed

to

meaningfully

help

patients

with

moderate

Alzheimer’s.

The

company

said

that

its

medicine,

called

fosgonimeton,

was

less

effective

than

expected

in

the

context

of

the

study

because

it

was

co-administered

with

another

drug

that

potentially

interfered

with

it.

Our

much

larger

investment

in

Jazz

Pharmaceuticals

(averaging

about

5%

of

the

Fund’s

total

net

assets)

shed

about

one-

tenth

of

its

value,

but

we

still

believe

the

company

holds

promise

for

the

future.

Jazz

focuses

on

neurology

and

oncology

medications,

and

it

has

a

connection

to

novel

cannabis-based

therapies

via

acquisition:

Its

US$7.2

billion

purchase

of

GW

Pharmaceuticals

in

May

2021

brought

with

it

cannabidiol-based

Epidiolex,

a

drug

used

to

treat

seizures

caused

by

a

variety

of

epileptic

conditions,

including

Lennox-Gastaut

syndrome,

Dravet

syndrome

and

tuberous

sclerosis

complex.

Jazz

is

in

the

midst

of

an

effort

to

expand

that

label.

It

has

started

a

Phase

3

trial

of

Epidiolex

as

a

treatment

for

seizures

connected

with

epilepsy

with

myoclonic-atonic

seizures.

The

company

reported

revenue

of

US$932.9

million

in

the

second

quarter

of

2022,

up

24%

year-over-year,

and

through

the

first

half

of

2022

its

revenue

rose

28%

to

US$1.7

billion.

Jazz

is

not

a

pure-play

medical

cannabis

company.

It

makes

the

sleep

disorder

drugs

Xyrem

and

Xywav,

which

account

for

more

than

half

of

its

sales.

Jazz

also

sells

cancer

drugs

Rylaze,

Vyxeos

and

Zepzelca.

Jazz

has

been

able

to

keep

growing

through

its

own

expanding

product

line,

including

11

new

approvals

and

launches

of

therapies

since

2015,

plus

its

willingness

to

acquire

therapies,

as

it

did

through

the

GW

Pharmaceuticals

purchase.

Management’s

plan

is

for

the

company

to

generate

US$5

billion

in

annual

revenue

by

2025

and

to

launch

at

least

five

new

products

by

the

end

of

the

decade.

In

the

life

sciences

tools

and

services

industry,

all

four

Fund

holdings

traded

lower,

including

standout

detractor

Illumina,

which

makes

tools

and

consumables

for

gene

sequencing.

Its

sequencing

devices

are

among

the

most

widely

distributed

in

global

hospitals

and

laboratories,

and

its

ongoing

years-long

efforts

to

develop

new

technologies

place

it

at

the

cutting

edge

of

the

field,

with

few

notable

competitors.

However,

the

company

has

come

under

some

pressure

as

sales

in

one

of

its

core

markets

have

decelerated

substantially.

The

company

makes

three

classes

of

gene

sequencers:

low

throughput,

medium

throughput

and

high

throughput.

Its

sales

of

low-throughput

devices

are

flat

relative

to

a

year

ago.

Additionally,

legal

issues

have

surfaced

around

its

recent

US$7.1

billion

acquisition

of

Grail,

a

cancer

diagnostics

biotechnology

company,

which

hit

some

potential

antitrust

roadblocks

with

U.S.

and

EU

regulators,

thereby

prolonging

the

closing

of

the

deal.

Most

of

the

other

key

detractors

reduced

the

Fund’s

gains

in

the

biotechnology

industry,

namely

Horizon

Therapeutics,

Iovance

Biotherapeutics,

Insmed,

Kezar

Life

Sciences

and

VistaGen

Therapeutics

(sold

by

period-end).

Horizon,

which

was

by

far

the

largest

detractor

across

the

entire

portfolio,

reported

disappointing

second-quarter

2022

financial

results.

Lower-than-expected

sales

and

weaker

sales-growth

outlook

for

Tepezza,

a

monoclonal

antibody

that

treats

thyroid

eye

disease

(also

known

as

TED),

was

amongst

the

key

catalysts

for

the

selloff.

Despite

this

disappointment,

we

think

the

market

reaction

was

disproportionate

to

Horizon’s

future

prospects,

given

the

rest

of

its

drug

pipeline

and

our

view

that

Tepezza’s

sales

should

rebound

given

the

safety

and

efficacy

profile

of

the

drug,

bottlenecking

of

patients

who

are

Top

10

Holdings

10/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Vertex

Pharmaceuticals,

Inc.

7.3%

Biotechnology,

United

States

Amgen,

Inc.

7.1%

Biotechnology,

United

States

Regeneron

Pharmaceuticals,

Inc.

6.3%

Biotechnology,

United

States

Gilead

Sciences,

Inc.

5.8%

Biotechnology,

United

States

Horizon

Therapeutics

plc

4.8%

Biotechnology,

United

States

Jazz

Pharmaceuticals

plc

4.7%

Pharmaceuticals,

United

States

Biogen,

Inc.

4.6%

Biotechnology,

United

States

AstraZeneca

plc

4.2%

Pharmaceuticals,

United

Kingdom

Ascendis

Pharma

A/S

4.1%

Biotechnology,

Denmark

Illumina,

Inc.

3.6%

Life

Sciences

Tools

&

Services,

United

States

Franklin

Biotechnology

Discovery

Fund

7

franklintempleton.com

Semiannual

Report

being

treated

by

endocrinologists

or

ophthalmologists

who

are

less

familiar

with

TED,

and

the

availability

of

treatment

options.

Cellular

immunotherapy

specialist

Iovance’s

share

value

declined

substantially

following

the

release

of

disappointing

results

from

a

pivotal

melanoma

drug

trial

using

tumor-

infiltrating

lymphocytes,

or

TILs

(a

type

of

cell

therapy

that

is

designed

to

recognize

and

kill

cancer

cells).

Iovance

had

previously

reported

strong

results

for

metastatic

melanoma

treatment

lifileucel

in

mid-2021

when

it

generated

an

overall

response

rate

of

36%.

However,

in

May

2022,

the

company

reported

a

median

duration

of

response

(mDOR)

of

10.4

months,

which

was

substantially

below

what

was

observed

in

its

previous

trial.

The

company

attributed

the

difference

to

a

more

heavily

pre-treated

patient

population

in

the

latest

trial,

which

we

believe

is

a

plausible

explanation,

but

whether

it

will

negatively

impact

commercial

uptake

remains

to

be

seen.

Iovance

remained

optimistic

about

the

drug’s

prospects,

was

ready

to

present

it

to

regulators,

and

aimed

to

complete

their

rolling

biologics

license

application

(BLA)

submission

for

lifileucel

to

the

U.S.

Food

and

Drug

Administration

(FDA)

by

the

fourth

quarter

of

2022.

Despite

its

overall

loss,

top

relative

detractor

Kezar

Life

Sciences

was

a

“bad

news

to

good

news”

story

as

the

period

unfolded.

Kezar

develops

novel

small

molecule

therapeutics

to

treat

autoimmune

diseases

and

cancer.

In

general,

investors

were

avoiding

development-stage

biotechnology

firms

while

favoring

commercial-stage

companies

with

revenues

not

tied

to

binary

outcomes.

As

it

pertained

to

Kezar,

a

small

Phase

2

clinical

trial

failed

to

show

a

material

effect

in

a

rare

autoimmune

disease.

This

failure

was

not

a

core

indication

for

the

company’s

drug

candidate,

but

it

served

to

remind

us

that

investors

have

become

very

sensitive

to

clinical

readouts

in

the

current

environment.

This

event

appeared

to

make

some

shareholders

nervous

around

the

risk/reward

prospects

for

an

upcoming

binary

Phase

2

readout

of

zetomipzomib

(KZR-616)

in

lupus

nephritis

(a

potentially

deadly

autoimmune

disorder

characterized

by

deteriorating

kidney

function);

that

update

was

eventually

released

in

late

June

and

triggered

a

huge

rally

that

recovered

much

of

what

Kezar

had

lost

earlier

in

the

second

quarter

of

2022.

Clinical

data

showed

a

high,

65%

overall

renal

response

among

patients

who

reached

the

end

of

treatment.

Lupus

nephritis

is

a

potential

blockbuster

indication

(greater

than

US$1

billion

in

annual

sales)

for

zetomipzomib—and

a

big

potential

boon

for

a

clinical-stage

biotechnology

firm

with

an

approximately

US$600

million

market

cap.

Among

all

of

the

Fund’s

major

detractors,

VistaGen

fared

worst,

shedding

most

of

its

equity

value

after

management

announced

unfavorable

Phase

3

clinical

trial

results

for

PH94B,

a

nasal

spray

for

the

acute

treatment

of

social

anxiety

disorder,

which

ultimately

did

not

achieve

its

primary

endpoint,

as

measured

by

changes

from

baseline

using

the

Subjective

Units

of

Distress

Scale

(SUDS)

compared

to

placebo.

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

October

31,

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

October

31,

2022

Franklin

Biotechnology

Discovery

Fund

8

franklintempleton.com

Semiannual

Report

The

performance

table

does

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

10/31/22

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

6-Month

+2.56%

-3.08%

1-Year

-21.35%

-25.67%

5-Year

+5.67%

-0.03%

10-Year

+144.69%

+8.74%

Advisor

6-Month

+2.70%

+2.70%

1-Year

-21.15%

-21.15%

5-Year

+7.00%

+1.36%

10-Year

+151.09%

+9.64%

See

page

9

for

Performance

Summary

footnotes.

Franklin

Biotechnology

Discovery

Fund

Performance

Summary

9

franklintempleton.com

Semiannual

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

non-diversified

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.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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.

Total

Annual

Operating

Expenses

5

Share

Class

A

1.04%

Advisor

0.79%

Your

Fund’s

Expenses

Franklin

Biotechnology

Discovery

Fund

10

franklintempleton.com

Semiannual

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

184/365

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

5/1/22

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,025.60

$5.57

$1,019.71

$5.55

1.09%

C

$1,000

$1,021.70

$9.38

$1,015.93

$9.35

1.84%

R6

$1,000

$1,027.70

$3.50

$1,021.75

$3.49

0.68%

Advisor

$1,000

$1,027.00

$4.30

$1,020.96

$4.29

0.84%

11

franklintempleton.com

Semiannual

Report

Franklin

Natural

Resources

Fund

This

semiannual

report

for

Franklin

Natural

Resources

Fund

covers

the

period

ended

October

31,

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

+5.48%

cumulative

total

return

for

the

six

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

+7.50%

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

-5.50%

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

Prices

in

the

global

commodities

complex

began

the

six-month

period

under

review

on

an

upward

track

that

peaked

around

mid-June

2022.

From

there,

key

commodity

indexes

began

to

lose

steam

and

were

largely

rangebound

at

lower

levels

from

July

through

period-end.

By

the

end

of

September,

the

asset

class

had

capped

its

first

back-to-back

quarterly

losses

since

2019

before

rebounding

slightly

in

October.

Investor

sentiment

continued

to

be

buffeted

by

a

multitude

of

countervailing

factors,

with

market

volatility

often

reflecting

opposing

trends.

With

the

world

economy

slowing

significantly

under

the

weight

of

high

inflation

and

monetary

policy

tightening,

commodity

and

commodity-linked

equity

investors

began

to

express

increased

pessimism

about

demand

that

was

partially

counterbalanced

by

support

from

Geographic

Composition

10/31/22

%

of

Total

Net

Assets

North

America

81.6%

Europe

9.3%

Australia

&

New

Zealand

2.7%

Latin

America

&

Caribbean

2.4%

Other

0.8%

Short-Term

Investments

&

Other

Net

Assets

3.2%

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

29

.

Franklin

Natural

Resources

Fund

12

franklintempleton.com

Semiannual

Report

ongoing

supply

constraints

that

remained

largely

intact.

In

this

environment,

prices

for

most

major

commodities

came

down

from

multi-year—and

even

all-time—peaks

and

posted

double-digit

percentage

declines,

including

crude

oil,

natural

gas,

major

crop

products

(wheat,

corn,

soybeans),

and

both

precious

and

industrial

metals.

In

particular,

international

and

U.S.

benchmark

crude

oil

prices

were

down

roughly

13%

and

17%,

respectively,

while

U.S.

natural

gas

futures

fell

by

about

12%.

All

precious

metals

pulled

back,

including

a

14%

drop

in

gold

spot

prices.

Base

metals

also

moved

broadly

lower,

including

large

declines

for

copper

futures

(down

nearly

24%)

and

iron

ore

(down

close

to

39%).

The

International

Monetary

Fund

(IMF)

and

other

multilateral

organizations

made

downward

adjustments

to

their

global

economic

outlooks,

which

suggests

weakening

global

growth

in

the

coming

months

could

hinder

demand

for

commodities,

even

if

a

recession

does

not

materialize.

The

IMF

lowered

its

2023

estimate

by

0.2

points

to

2.7%—slower

than

the

3.2%

growth

expected

this

year

and

the

6.0%

growth

the

global

economy

produced

in

2021.

In

particular,

industrial

commodities

such

as

iron

ore

and

steel

reflected

near-term

demand

weakness

as

construction

activity

waned,

while

China’s

factory

and

services

activity

signaled

contraction

amid

COVID-19

curbs

and

a

crisis

in

the

country’s

property

market.

Aside

from

China

and

central

banks’

anti-inflation

campaigns,

the

war

between

Russia

and

Ukraine

remained

a

key

driver

for

commodities

as

the

Kremlin

intensified

its

attacks

on

vital

infrastructure

and

backed

out

of

the

Black

Sea

safe-corridor

deal

to

allow

grain

exports

from

Ukraine,

which

threatened

to

stoke

additional

food

inflation

as

the

agreement

was

seen

as

critical

for

staving

off

global

shortages

of

wheat

and

corn.

Currency

headwinds

were

notable

as

the

U.S.

dollar—

having

rallied

within

a

basket

of

other

major

currencies

since

mid-2021—vaulted

to

two-decade

highs,

which

made

commodities

priced

in

the

currency

more

expensive

for

most

buyers.

Although

the

U.S.

Dollar

Index

leveled

off

and

ultimately

retreated

slightly

by

October,

it

had

already

risen

16.6%

year-to-date

in

2022.

Concerns

remained

that

the

strong

U.S.

dollar

has

been

weighing

on

the

corporate

profits

of

companies

with

sales

overseas

in

addition

to

commodity

importing

countries

and

those

with

dollar-denominated

debt.

In

what

turned

out

to

be

a

broad-based

selloff

across

global

equity

markets,

energy

sector

shares

were

a

distinct

outlier

to

the

upside

as

related

companies

delivered

record

earnings

and

profits.

Materials

sector

stocks,

however,

were

among

the

worst

performers,

having

finished

the

period

with

double-digit

percentage

losses

(on

average),

which

resulted

in

a

ninth

place

ranking

among

the

11

major

equity

sectors.

Manager’s

Discussion

The

Fund’s

six-month

gain

modestly

underperformed

its

benchmark,

the

S&P

North

American

Natural

Resources

Sector

Index,

due

in

part

to

the

Fund’s

relative

underweighting

and

unfavorable

stock

selection

in

the

integrated

oil

and

gas

industry;

overweighting

and

stock

selection

among

both

diversified

and

copper-focused

miners;

and

an

underweighting

in

the

rallying

E&P

(oil

and

gas

exploration

and

production)

industry.

In

the

integrated

oil

and

gas

industry,

performance

was

specifically

hindered

by

lower

exposures

to

U.S.

energy

majors

Exxon

Mobil

and

Chevron,

both

of

which

represent

large

index

weights

and

underwent

solid

rallies.

These

were

still

among

the

Fund’s

largest

individual

contributors

on

an

absolute,

standalone

basis.

Large-capitalization

energy

bellwethers

such

as

Exxon

Mobil,

Chevron

and

others

posted

their

highest-ever

profits,

reaping

the

rewards

from

cost

reductions

and

elevated

energy

prices

amid

supply

disruptions

and

rising

demand.

While

they

have

been

increasing

oil

and

natural

gas

supplies

during

this

year’s

challenges

in

global

energy

markets,

most

have

also

been

investing

in

new,

low-carbon

energy

business

lines.

Nearly

all

of

the

Fund’s

other

key

detractors

were

mining

companies

that

traded

substantially

lower

following

a

prolonged

period

of

exceptional

gains.

These

included

off-

benchmark

investments

in

Capstone

Copper,

Antofagasta

and

Lundin

Mining

in

the

copper

industry,

as

well

as

off-benchmark

diversified

miners

such

as

BHP

Group,

Anglo

American

and

Rio

Tinto.

The

Fund

also

had

a

few

Portfolio

Composition

10/31/22

%

of

Total

Net

Assets

Oil

&

Gas

Exploration

&

Production

20.5%

Integrated

Oil

&

Gas

17.9%

Oil

&

Gas

Equipment

&

Services

13.9%

Oil

&

Gas

Storage

&

Transportation

7.2%

Oil

&

Gas

Refining

&

Marketing

6.5%

Gold

5.3%

Copper

4.5%

Diversified

Metals

&

Mining

3.6%

Industrial

Gases

2.8%

Fertilizers

&

Agricultural

Chemicals

1.9%

Electrical

Components

&

Equipment

1.8%

Oil

&

Gas

Drilling

1.6%

Specialty

Chemicals

1.3%

Agricultural

Products

1.2%

Other

6.8%

Short-Term

Investments

&

Other

Net

Assets

3.2%

Franklin

Natural

Resources

Fund

13

franklintempleton.com

Semiannual

Report

underperformers

in

the

gold

industry,

where

an

overweighted

stake

in

SSR

Mining

was

the

worst

of

a

handful

of

companies

that

suffered

steep

losses.

In

general,

most

industrial

and

precious

metals

prices

fell

from

their

peaks

in

the

initial

aftermath

of

the

Russian

invasion

of

Ukraine.

In

retrospect,

the

Russian

invasion

did

not

significantly

disrupt

metal

commodities

production.

Prices

shot

up

largely

due

to

a

general

risk

premium

and

concerns

that

logistical

and

shipping

avenues

would

be

disrupted

or

severed.

Once

it

became

clear

that

commodities

could

still

move

freely

and

find

alternative

end

markets,

these

risk

premiums

dissipated.

Metals

commodities

prices

at

period-end

were

more

in

line

with

supply-and-demand

fundamentals,

which

were

responding

to

ongoing

economic

stress

and

subdued

industrial

activity

globally,

despite

low

supplies

and

the

idling

of

many

energy-intensive

smelting

operations.

Some

of

our

smaller

off-benchmark

industry

exposures

also

fared

poorly

with

double-digit

percentage

declines

including

diversified

chemicals,

where

a

solitary

position

in

Huntsman

shed

about

one-fifth

of

its

equity

value.

Vale,

in

the

iron

ore

industry,

sustained

similar

losses.

On

the

upside,

the

Fund

kept

nearly

double

the

index’s

exposure

to

oilfield

services

companies;

this

overweighting,

as

well

as

stock

selection

that

resulted

in

a

higher

overall

return

versus

the

index,

particularly

after

a

strong

rally

in

October

2022,

boosted

relative

performance

more

than

any

other

industry

allocation.

In

particular,

the

Fund

received

exceptionally

strong

returns

on

its

substantially

overweighted

stake

in

key

contributor

TechnipFMC,

while

an

off-benchmark

position

in

Nine

Energy

Service

more

than

doubled

in

value

during

the

six

months

under

review.

Elsewhere

in

the

energy

sector,

the

Fund’s

returns

relative

to

the

benchmark

index

were

also

strengthened

by

beneficial

weighting

decisions

amongst

energy

facility,

pipeline

and

transport

companies.

We

kept

less

than

one-fifth

of

the

benchmark

exposure

to

North

American

oil

and

natural

gas

pipeline

operator

Enbridge,

which

suffered

an

overall

decline,

and

avoided

investing

in

Canada-focused

Pembina

Pipeline,

which

also

sold

off

substantially

on

the

index.

However,

our

lack

of

exposure

to

liquid

natural

gas

producer

Cheniere

Energy,

which

benefited

from

rising

European

demand

and

rose

substantially

on

the

index,

limited

further

upside

to

relative

results.

Elsewhere

in

the

portfolio,

the

Fund

suffered

large

overall

losses

in

the

gold

industry

but

benefited

from

underweighting

as

we

avoided

Franco-Nevada

and

several

other

gold

miners

that

posted

substantial

declines

on

the

index.

A

similar

pattern

tied

to

underweighting

and

avoidance

emerged

in

the

consumer-focused

paper

packaging

and

metal

and

glass

containers

industries,

both

of

which

sustained

major

losses.

In

particular,

the

Fund

was

aided

by

an

underweighting

in

Ball

in

the

metal

and

glass

containers

space,

as

the

company

lost

nearly

two-fifths

of

its

equity

value.

Some

of

our

off-benchmark

renewable

energy-linked

companies

focused

on

solar,

wind

and

geothermal

energy

rallied

and

helped

lift

the

Fund’s

absolute

and

relative

returns

as

investment

programs

ramped

up

in

various

countries

and

government

initiatives

continued

to

create

a

fertile

environment

for

investment

in

the

new-energy

space

and

related

infrastructure.

Our

key

contributors

in

related

industries—FREYR

Battery

(next-generation

lithium-ion

battery

design

and

manufacturing)

and

Shoals

Technologies

Group

(electrical

balance-of-systems

provider

for

solar

energy

projects)—cover

a

wide

array

of

alternative-energy

grid

solutions.

Though

the

group

has

been

contending

with

an

overhang

of

logistics

bottlenecks

and

cost

inflation,

they

are

finding

support

from

an

alluring

backdrop

of

large-scale

government

subsidies

and

spending

initiatives

in

the

U.S.

and

other

major

economies.

The

U.S.

Senate

passed

the

US$739

billion

Inflation

Reduction

Act

of

2022

containing

billions

of

dollars

in

funding

for

infrastructure,

fuel

cells

and

other

clean

energy,

which

helped

ignite

an

outsized

summer

rally

in

top

contributor

FREYR

Battery.

When

it

comes

to

green

credentials,

Norway-based

FREYR

stands

out

among

its

fuel-cell

competitors

as

it

is

currently

focused

on

building

out

customized

battery

“gigafactories”

that

will

run

on

renewable

energy,

including

in

the

U.S.

Rising

demand

for

electric

vehicles

(EVs)

and

power

storage

units

that

require

lithium-based

batteries

supported

a

major

rally

in

key

contributor

Albemarle,

one

of

our

off-index

positions

in

the

specialty

chemicals

industry.

The

underlying

Top

10

Holdings

10/31/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

ConocoPhillips

5.0%

Oil,

Gas

&

Consumable

Fuels,

United

States

Exxon

Mobil

Corp.

4.6%

Oil,

Gas

&

Consumable

Fuels,

United

States

Chevron

Corp.

4.5%

Oil,

Gas

&

Consumable

Fuels,

United

States

EOG

Resources,

Inc.

3.4%

Oil,

Gas

&

Consumable

Fuels,

United

States

Shell

plc

3.2%

Oil,

Gas

&

Consumable

Fuels,

Netherlands

Schlumberger

NV

3.2%

Energy

Equipment

&

Services,

United

States

Canadian

Natural

Resources

Ltd.

2.7%

Oil,

Gas

&

Consumable

Fuels,

Canada

Marathon

Petroleum

Corp.

2.4%

Oil,

Gas

&

Consumable

Fuels,

United

States

Pioneer

Natural

Resources

Co.

2.4%

Oil,

Gas

&

Consumable

Fuels,

United

States

Valero

Energy

Corp.

2.1%

Oil,

Gas

&

Consumable

Fuels,

United

States

Franklin

Natural

Resources

Fund

14

franklintempleton.com

Semiannual

Report

driver

has

been

the

massive

move

up

in

lithium

prices.

Albemarle’s

recent

quarterly

earnings

and

profit

margins

have

topped

consensus

estimates

by

a

wide

margin,

which

encouraged

management

to

raise

its

full-year

2022

guidance.

The

company

stood

to

continue

to

benefit

from

a

very

strong

longer-term

pricing

cycle

in

lithium.

In

our

view,

lithium

remains

the

most

critical

element

for

the

proliferation

of

EVs,

but

insufficient

supply

additions

are

likely

to

keep

the

market

tight

for

much

of

the

decade,

thereby

fostering

a

period

of

extended

margin

strength,

with

pricing

well

above

the

theoretical

cost-curve

to

incentivize

new

capacity.

Albemarle

is

extremely

well

positioned

given

their

leading

25–30%

market

share,

top

quartile

producing

assets,

rich

set

of

resource

development

opportunities,

and

breadth

of

downstream

conversion

technologies.

The

Fund

also

kept

a

small

exposure

to

the

industrial

machinery

industry

with

its

off-benchmark

position

in

Xylem,

which

is

engaged

in

the

design

manufacturing

and

application

of

highly

engineered

technologies

for

the

water

industry.

Xylem

stock

rallied

solidly

during

the

period

and

the

company

is

expected

to

benefit

as

funds

from

the

Infrastructure

Act

(passed

in

late

2021)

are

dispersed.

Elsewhere

in

the

portfolio,

relative

returns

in

the

integrated

oil

and

gas

industry

were

buoyed

by

a

rally

in

Europe-based

conglomerate

TotalEnergies,

which

is

not

tracked

by

the

Fund’s

benchmark

index.

In

general,

the

larger

multinational

energy

conglomerates

displayed

their

typical

resilience

during

a

commodity-price

correction,

and

they

were

further

supported

by

attractive

dividend

yields,

and

robust

balance

sheets

that

have

allowed

for

the

implementation

of

aggressive

share

repurchase

plans.

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

Adams,

CFA

Stephen

M.

Land,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

October

31,

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

October

31,

2022

Franklin

Natural

Resources

Fund

15

franklintempleton.com

Semiannual

Report

The

performance

table

does

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

10/31/22

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

6-Month

+5.48%

-0.31%

1-Year

+25.39%

+18.49%

5-Year

+24.43%

+3.29%

10-Year

-2.46%

-0.81%

Advisor

6-Month

+5.66%

+5.66%

1-Year

+25.74%

+25.74%

5-Year

+26.05%

+4.74%

10-Year

+0.20%

+0.02%

See

page

16

for

Performance

Summary

footnotes.

Franklin

Natural

Resources

Fund

Performance

Summary

16

franklintempleton.com

Semiannual

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.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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

imposed

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

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

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.

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.

Total

Annual

Operating

Expenses

5

Share

Class

A

1.10%

Advisor

0.85%

Your

Fund’s

Expenses

Franklin

Natural

Resources

Fund

17

franklintempleton.com

Semiannual

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

184/365

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

5/1/22

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,054.80

$5.14

$1,020.20

$5.05

0.99%

C

$1,000

$1,051.00

$9.00

$1,016.43

$8.85

1.74%

R6

$1,000

$1,057.30

$3.09

$

1,022.20

$3.04

0.60%

Advisor

$1,000

$1,056.60

$3.84

$1,021.47

$3.78

0.74%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

.

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$101.90

$163.50

$150.48

$138.85

$146.14

$147.22

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.29)

(0.75)

(0.99)

(0.69)

(0.99)

(0.80)

Net

realized

and

unrealized

gains

(losses)

2.87

(43.17)

38.85

26.48

(1.75)

3.32

Total

from

investment

operations

........

2.58

(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

period

..........

$104.48

$101.90

$163.50

$150.48

$138.85

$146.14

Total

return

c

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

2.56%

(28.56)%

24.26%

18.52%

(1.60)%

1.69%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.10%

1.04%

0.98%

1.03%

1.02%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.09%

1.04%

f

0.97%

1.01%

1.00%

1.03%

Net

investment

(loss)

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

(0.57)%

(0.54)%

(0.58)%

(0.49)%

(0.67)%

(0.53)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$681,999

$705,915

$1,160,451

$960,305

$924,611

$1,081,883

Portfolio

turnover

rate

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

8.37%

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

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.

Semiannual

Report

19

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$94.59

$152.95

$143.00

$133.51

$141.75

$143.98

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.62)

(1.51)

(2.16)

(1.70)

(2.03)

(1.90)

Net

realized

and

unrealized

gains

(losses)

2.64

(40.18)

36.95

25.35

(1.66)

3.27

Total

from

investment

operations

........

2.02

(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

period

..........

$96.61

$94.59

$152.95

$143.00

$133.51

$141.75

Total

return

c

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

2.17%

(29.00)%

23.33%

17.62%

(2.33)%

0.93%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

1.85%

1.66%

1.73%

1.78%

1.77%

1.80%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

1.84%

1.66%

f

1.72%

1.76%

1.75%

1.78%

Net

investment

(loss)

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

(1.32)%

(1.16)%

(1.32)%

(1.24)%

(1.42)%

(1.28)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$30,861

$33,905

$64,801

$48,363

$46,508

$58,433

Portfolio

turnover

rate

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

8.37%

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,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

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

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$108.06

$172.21

$156.99

$143.83

$150.65

$151.03

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.09)

(0.23)

(0.45)

(0.18)

(0.46)

(0.17)

Net

realized

and

unrealized

gains

(losses)

3.05

(45.64)

40.51

27.50

(1.81)

3.39

Total

from

investment

operations

........

2.96

(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

period

..........

$111.02

$108.06

$172.21

$156.99

$143.83

$150.65

Total

return

c

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

2.77%

(28.29)%

24.67%

18.95%

(1.24)%

2.11%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.80%

0.74%

0.71%

0.74%

0.70%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.68%

0.66%

0.64%

0.64%

0.63%

0.61%

Net

investment

(loss)

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

(0.17)%

(0.16)%

(0.25)%

(0.12)%

(0.30)%

(0.11)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$9,430

$9,614

$16,721

$9,484

$6,164

$8,307

Portfolio

turnover

rate

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

8.37%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

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.

Semiannual

Report

21

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$106.46

$169.95

$155.30

$142.56

$149.54

$150.20

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.17)

(0.42)

(0.59)

(0.34)

(0.63)

(0.45)

Net

realized

and

unrealized

gains

(losses)

3.00

(44.99)

40.08

27.24

(1.80)

3.39

Total

from

investment

operations

........

2.83

(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

period

..........

$109.29

$106.46

$169.95

$155.30

$142.56

$149.54

Total

return

c

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

2.70%

(28.39)%

24.56%

18.82%

(1.36)%

1.94%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.85%

0.79%

0.73%

0.78%

0.77%

0.80%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.84%

0.79%

f

0.72%

0.76%

0.75%

0.78%

Net

investment

(loss)

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

(0.32)%

(0.29)%

(0.33)%

(0.24)%

(0.42)%

(0.28)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$109,701

$110,726

$206,375

$159,348

$153,874

$180,219

Portfolio

turnover

rate

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

8.37

%

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

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

99.3%

Biotechnology

78.1%

a

Albireo

Pharma,

Inc.

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

United

States

301,243

$

6,181,506

a

Alector

,

Inc.

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

United

States

303,345

2,790,774

Amgen,

Inc.

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

United

States

219,160

59,249,906

a

Applied

Molecular

Transport,

Inc.

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

United

States

138,000

111,283

a,b

Applied

Therapeutics,

Inc.

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

United

States

1,575,654

1,219,556

a

Arcutis

Biotherapeutics

,

Inc.

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

United

States

141,456

2,500,942

a

Argenx

SE,

ADR

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

Netherlands

58,158

22,561,233

a

Ascendis

Pharma

A/S,

ADR

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

Denmark

298,600

34,339,000

a,c

BELLUS

Health,

Inc.

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

Canada

587,700

5,442,102

a,b

Benitec

Biopharma,

Inc.

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

Australia

6,203,064

1,087,397

a

Biogen,

Inc.

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

United

States

133,875

37,945,530

a

BioMarin

Pharmaceutical,

Inc.

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

United

States

142,456

12,340,963

a

Candel

Therapeutics,

Inc.

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

United

States

400,800

777,552

a

Centessa

Pharmaceuticals

plc,

ADR

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

United

States

278,993

1,107,602

a

CRISPR

Therapeutics

AG

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

Switzerland

106,514

5,574,943

a

Cullinan

Oncology,

Inc.

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

United

States

113,700

1,494,018

a

Cytokinetics,

Inc.

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

United

States

254,100

11,094,006

a

Day

One

Biopharmaceuticals,

Inc.

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

United

States

546,133

11,545,252

a

Dyne

Therapeutics,

Inc.

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

United

States

355,434

4,051,948

a

Equillium

,

Inc.

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

United

States

294,800

548,328

Gilead

Sciences,

Inc.

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

United

States

614,827

48,239,327

a

Harpoon

Therapeutics,

Inc.

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

United

States

445,299

406,914

a

Heron

Therapeutics,

Inc.

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

United

States

1,739,677

6,697,757

a,c

HilleVax

,

Inc.

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

United

States

423,056

9,044,937

a

Horizon

Therapeutics

plc

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

United

States

634,271

39,527,769

a

Insmed

,

Inc.

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

United

States

780,500

13,518,260

a

Iovance

Biotherapeutics

,

Inc.

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

United

States

1,395,901

13,037,715

a

IVERIC

bio,

Inc.

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

United

States

553,598

13,242,064

a

Karuna

Therapeutics,

Inc.

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

United

States

38,051

8,346,106

a

Keros

Therapeutics,

Inc.

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

United

States

153,551

7,729,757

a

Kezar

Life

Sciences,

Inc.

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

United

States

449,150

3,375,362

a

Kura

Oncology,

Inc.

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

United

States

140,092

2,174,228

a

Legend

Biotech

Corp.,

ADR

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

United

States

159,125

7,927,608

a

Merus

NV

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

Netherlands

404,226

8,286,633

a

Mirati

Therapeutics,

Inc.

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

United

States

319,821

21,530,350

a

Mirum

Pharmaceuticals,

Inc.

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

United

States

130,600

2,945,030

a

Moderna

,

Inc.

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

United

States

97,615

14,674,463

a

Neurocrine

Biosciences,

Inc.

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

United

States

177,673

20,453,716

a,c

Novavax

,

Inc.

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

United

States

59,882

1,333,572

a

Pardes

Biosciences,

Inc.

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

United

States

74,431

89,317

a

Prometheus

Biosciences,

Inc.

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

United

States

178,787

9,389,893

a

PTC

Therapeutics,

Inc.

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

United

States

667,774

25,255,213

a

Regeneron

Pharmaceuticals,

Inc.

.........................

United

States

69,833

52,287,459

a

Reneo

Pharmaceuticals,

Inc.

.............................

United

States

158,423

557,649

a

Rocket

Pharmaceuticals,

Inc.

............................

United

States

217,526

4,059,035

a

Sage

Therapeutics,

Inc.

................................

United

States

101,070

3,806,296

a

Seagen

,

Inc.

.........................................

United

States

150,140

19,091,803

a

Sutro

Biopharma,

Inc.

..................................

United

States

916,889

6,720,796

a,c

Taysha

Gene

Therapies,

Inc.

.............................

United

States

304,256

523,320

a

Ultragenyx

Pharmaceutical,

Inc.

..........................

United

States

60,696

2,455,760

a

Vertex

Pharmaceuticals,

Inc.

.............................

United

States

194,907

60,810,984

649,502,934

Health

Care

Providers

&

Services

1.0%

a

Guardant

Health,

Inc.

..................................

United

States

173,066

8,566,767

Life

Sciences

Tools

&

Services

5.4%

a

Avantor

,

Inc.

.........................................

United

States

65,600

1,323,152

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Life

Sciences

Tools

&

Services

(continued)

a

Illumina,

Inc.

.........................................

United

States

129,900

$

29,723,718

Thermo

Fisher

Scientific,

Inc.

............................

United

States

26,900

13,825,793

44,872,663

Pharmaceuticals

14.8%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

587,357

34,542,465

a

Catalent

,

Inc.

........................................

United

States

22,700

1,492,071

a,c

DICE

Therapeutics,

Inc.

................................

United

States

108,800

3,863,488

a

EyePoint

Pharmaceuticals,

Inc.

...........................

United

States

1,172,900

6,333,660

a

Intra-Cellular

Therapies,

Inc.

.............................

United

States

461,126

21,059,624

a

Jazz

Pharmaceuticals

plc

...............................

United

States

273,563

39,335,624

a

Marinus

Pharmaceuticals,

Inc.

............................

United

States

149,200

857,900

a

Pliant

Therapeutics,

Inc.

................................

United

States

300,500

7,473,435

a

Revance

Therapeutics,

Inc.

..............................

United

States

376,766

8,405,650

123,363,917

Total

Common

Stocks

(Cost

$602,141,855)

.....................................

826,306,281

Preferred

Stocks

0.2%

Biotechnology

0.1%

a,d,e

Pipeline

Therapeutics,

Inc.,

C

............................

United

States

779,505

888,848

a

Health

Care

Providers

&

Services

0.1%

a,b,d,e

Artiva

Biotherapeutics

,

Inc.,

B

............................

United

States

189,499

943,577

a

Total

Preferred

Stocks

(Cost

$4,173,484)

.......................................

1,832,425

Warrants

Warrants

0.3%

Biotechnology

0.3%

a,b

Applied

Therapeutics,

Inc.,

6/27/27

........................

United

States

814,000

629,955

a,b,d

Applied

Therapeutics,

Inc.,

6/27/27

........................

United

States

1,628,100

743,631

a,b,d

Benitec

Biopharma,

Inc.,

II,

9/14/27

........................

Australia

7,019,473

443,203

1,816,789

Pharmaceuticals

0.0%

†

a

Nuvation

Bio,

Inc.,

7/07/27

..............................

United

States

115,266

22,627

Total

Warrants

(Cost

$814,621)

................................................

1,839,416

Shares

Escrows

and

Litigation

Trusts

0.0%

a,d

Sanofi

SA,

Escrow

Account

..............................

France

2,333,755

—

Total

Escrows

and

Litigation

Trusts

(Cost

$9,747)

...............................

—

Total

Long

Term

Investments

(Cost

$607,139,707)

...............................

829,978,122

a

Short

Term

Investments

0.6%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

0.4%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

3,618,369

3,618,369

Total

Money

Market

Funds

(Cost

$3,618,369)

...................................

3,618,369

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

Short

Term

Investments

(continued)

a

a

Country

Shares

a

Value

a

a

a

a

a

a

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.2%

Money

Market

Funds

0.2%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

1,645,260

$

1,645,260

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$1,645,260)

............................................................

1,645,260

Total

Short

Term

Investments

(Cost

$5,263,629

)

.................................

5,263,629

a

Total

Investments

(Cost

$612,403,336)

100.4%

..................................

$835,241,751

Other

Assets,

less

Liabilities

(0.4)%

...........................................

(3,250,636)

Net

Assets

100.0%

...........................................................

$831,991,115

See

A

bbreviations

on

page

49

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

10

regarding

holdings

of

5%

voting

securities.

c

A

portion

or

all

of

the

security

is

on

loan

at

October

31,

2022.

See

Note

1(c).

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

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$27.01

$20.02

$13.60

$23.58

$27.96

$25.11

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.37

0.50

0.28

0.34

0.31

0.39

c

Net

realized

and

unrealized

gains

(losses)

1.11

6.77

6.54

(9.96)

(4.20)

2.77

Total

from

investment

operations

........

1.48

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

period

..........

$28.49

$27.01

$20.02

$13.60

$23.58

$27.96

Total

return

d

.......................

5.48%

36.63%

50.55%

(41.30)%

(13.69)%

12.74%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.00%

1.10%

1.24%

1.17%

1.03%

1.13%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.99%

f

1.10%

g

1.24%

f,g

1.17%

f,g

1.03%

f,g

1.13%

f,g

Net

investment

income

...............

2.75%

2.17%

1.71%

1.75%

1.21%

1.56%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$316,163

$289,403

$176,127

$123,467

$247,362

$344,695

Portfolio

turnover

rate

................

9.57%

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,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$26.45

$19.58

$13.25

$22.82

$27.17

$24.28

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.26

0.32

0.15

0.19

0.11

0.20

c

Net

realized

and

unrealized

gains

(losses)

1.09

6.63

6.38

(9.70)

(4.07)

2.69

Total

from

investment

operations

........

1.35

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

period

..........

$27.80

$26.45

$19.58

$13.25

$22.82

$27.17

Total

return

d

.......................

5.10%

35.59%

49.42%

(41.71)%

(14.37)%

11.90%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.75%

1.86%

1.99%

1.92%

1.78%

1.88%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.74%

f

1.86%

g

1.99%

f,g

1.92%

f,g

1.78%

f,g

1.88%

f,g

Net

investment

income

...............

2.01%

1.41%

0.93%

1.00%

0.46%

0.81%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$31,947

$30,427

$27,753

$23,391

$49,620

$83,814

Portfolio

turnover

rate

................

9.57%

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,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

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.

Semiannual

Report

27

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$29.17

$21.58

$14.63

$25.22

$29.79

$26.87

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.45

0.64

0.39

0.54

0.45

0.57

c

Net

realized

and

unrealized

gains

(losses)

1.22

7.31

7.05

(10.76)

(4.49)

2.95

Total

from

investment

operations

........

1.67

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

period

..........

$30.84

$29.17

$21.58

$14.63

$25.22

$29.79

Total

return

d

.......................

5.73%

37.24%

51.43%

(41.02)%

(13.31)%

13.37%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.70%

0.80%

0.89%

0.72%

0.62%

0.64%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.60%

f

0.65%

0.72%

f

0.66%

f

0.59%

f

0.57%

f

Net

investment

income

...............

3.13%

2.53%

2.22%

2.26%

1.65%

2.12%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$5,996

$4,943

$1,722

$839

$15,627

$15,866

Portfolio

turnover

rate

................

9.57%

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

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$28.97

$21.44

$14.54

$25.20

$29.80

$26.81

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.43

0.60

0.33

0.41

0.40

0.49

c

Net

realized

and

unrealized

gains

(losses)

1.21

7.24

7.01

(10.64)

(4.49)

2.95

Total

from

investment

operations

........

1.64

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

period

..........

$30.61

$28.97

$21.44

$14.54

$25.20

$29.80

Total

return

d

.......................

5.66%

36.93%

50.95%

(41.15)%

(13.50)%

13.04%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.75%

0.85%

1.00%

0.92%

0.78%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.74%

f

0.85%

g

1.00%

f,g

0.92%

f,g

0.78%

f,g

0.88%

f,g

Net

investment

income

...............

2.99%

2.39%

1.93%

2.00%

1.46%

1.81%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$93,007

$87,707

$39,562

$28,334

$62,639

$78,443

Portfolio

turnover

rate

................

9.57%

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

1.16%.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

a

Country

Shares

a

Value

a

Common

Stocks

96.3%

Agricultural

Products

1.2%

Bunge

Ltd.

..........................................

United

States

33,600

$

3,316,320

a

Darling

Ingredients,

Inc.

................................

United

States

28,300

2,220,984

5,537,304

Construction

Machinery

&

Heavy

Trucks

0.6%

a

Proterra

,

Inc.

.........................................

United

States

425,900

2,657,616

a

Construction

Materials

0.7%

Martin

Marietta

Materials,

Inc.

............................

United

States

8,700

2,923,026

Copper

4.5%

Antofagasta

plc

.......................................

Chile

226,500

3,052,183

a

Capstone

Copper

Corp.

................................

Canada

958,500

2,223,180

a

ERO

Copper

Corp.

....................................

Brazil

277,500

3,159,149

First

Quantum

Minerals

Ltd.

.............................

Zambia

53,200

938,341

Freeport-McMoRan,

Inc.

................................

United

States

269,300

8,534,117

a

Imperial

Metals

Corp.

..................................

Canada

122,760

218,957

Lundin

Mining

Corp.

...................................

Chile

319,000

1,671,800

19,797,727

Diversified

Chemicals

0.7%

Huntsman

Corp.

......................................

United

States

124,500

3,331,620

Diversified

Metals

&

Mining

3.6%

29Metals

Ltd.

........................................

Australia

1,174,800

1,390,960

a

Aclara

Resources,

Inc.

.................................

United

Kingdom

489,200

98,745

a,b

Aclara

Resources,

Inc.,

144A

............................

United

Kingdom

510,754

103,095

Anglo

American

plc

....................................

South

Africa

81,600

2,444,264

BHP

Group

Ltd.,

ADR

..................................

Australia

115,900

5,542,338

Glencore

plc

.........................................

Australia

364,400

2,089,132

Rio

Tinto

plc,

ADR

.....................................

Australia

54,000

2,880,900

Teck

Resources

Ltd.,

B

.................................

Canada

76,400

2,325,616

16,875,050

Electrical

Components

&

Equipment

1.8%

a

Fluence

Energy,

Inc.

...................................

United

States

80,700

1,204,851

a

FREYR

Battery

SA

....................................

Norway

257,200

3,423,332

a

SES

AI

Corp.

........................................

United

States

285,900

1,718,259

a

Shoals

Technologies

Group,

Inc.,

A

........................

United

States

69,000

1,594,590

7,941,032

Environmental

&

Facilities

Services

0.3%

a

Li-Cycle

Holdings

Corp.

.................................

Canada

248,500

1,481,060

a

Fertilizers

&

Agricultural

Chemicals

1.9%

Corteva

,

Inc.

.........................................

United

States

69,500

4,541,130

Nutrien

Ltd.

..........................................

Canada

48,600

4,106,700

8,647,830

Gold

5.3%

Agnico

Eagle

Mines

Ltd.

................................

Canada

106,600

4,689,179

Alamos

Gold,

Inc.,

A

...................................

Canada

402,900

3,179,077

Barrick

Gold

Corp.

....................................

Canada

347,091

5,216,778

Newmont

Corp.

.......................................

United

States

152,200

6,441,104

SSR

Mining,

Inc.

......................................

Canada

279,400

3,855,720

23,381,858

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Natural

Resources

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Heavy

Electrical

Equipment

0.3%

a

TPI

Composites,

Inc.

...................................

United

States

131,900

$

1,313,724

a

Industrial

Gases

2.8%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

24,500

6,134,800

Linde

plc

............................................

United

Kingdom

20,400

6,065,940

12,200,740

Industrial

Machinery

0.9%

Xylem,

Inc.

..........................................

United

States

40,300

4,127,929

Integrated

Oil

&

Gas

17.7%

Chevron

Corp.

.......................................

United

States

110,700

20,025,630

Exxon

Mobil

Corp.

.....................................

United

States

187,300

20,754,713

Occidental

Petroleum

Corp.

.............................

United

States

92,800

6,737,280

Shell

plc,

ADR

........................................

Netherlands

257,500

14,324,725

Suncor

Energy,

Inc.

....................................

Canada

260,500

8,959,946

TotalEnergies

SE,

ADR

.................................

France

151,110

8,276,295

79,078,589

Marine

0.3%

Eneti

,

Inc.

...........................................

United

States

155,500

1,278,210

Metal

&

Glass

Containers

0.8%

Ball

Corp.

...........................................

United

States

43,900

2,168,221

Crown

Holdings,

Inc.

...................................

United

States

20,000

1,371,800

3,540,021

Oil

&

Gas

Drilling

1.6%

Helmerich

&

Payne,

Inc.

................................

United

States

69,800

3,455,798

Patterson-UTI

Energy,

Inc.

..............................

United

States

216,800

3,826,520

7,282,318

Oil

&

Gas

Equipment

&

Services

13.6%

Baker

Hughes

Co.

.....................................

United

States

225,800

6,245,628

Cactus,

Inc.,

A

........................................

United

States

44,300

2,291,196

ChampionX

Corp.

.....................................

United

States

142,300

4,072,626

Halliburton

Co.

.......................................

United

States

182,900

6,661,218

a

Liberty

Energy,

Inc.,

A

..................................

United

States

253,200

4,281,612

a

NexTier

Oilfield

Solutions,

Inc.

............................

United

States

339,400

3,421,152

a

Nine

Energy

Service,

Inc.

...............................

United

States

301,792

1,768,501

a

Oceaneering

International,

Inc.

...........................

United

States

214,000

2,993,860

a

Oil

States

International,

Inc.

.............................

United

States

344,100

2,226,327

a

Ranger

Energy

Services,

Inc.

............................

United

States

335,595

3,523,748

Schlumberger

NV

.....................................

United

States

273,700

14,240,611

Schoeller-Bleckmann

Oilfield

Equipment

AG

.................

Austria

17,600

968,218

a

Select

Energy

Services,

Inc.,

A

...........................

United

States

298,000

2,875,700

c

Technip

Energies

NV

...................................

France

40,899

527,982

a

TechnipFMC

plc

......................................

United

Kingdom

431,000

4,564,290

60,662,669

Oil

&

Gas

Exploration

&

Production

20.5%

Aker

BP

ASA

.........................................

Norway

108,100

3,433,977

Canadian

Natural

Resources

Ltd.

.........................

Canada

200,900

12,048,986

ConocoPhillips

.......................................

United

States

178,300

22,481,847

Coterra

Energy,

Inc.

...................................

United

States

269,700

8,395,761

Devon

Energy

Corp.

...................................

United

States

100,500

7,773,675

EOG

Resources,

Inc.

..................................

United

States

111,700

15,249,284

EQT

Corp.

..........................................

United

States

54,700

2,288,648

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Oil

&

Gas

Exploration

&

Production

(continued)

Hess

Corp.

..........................................

United

States

58,600

$

8,267,288

PDC

Energy,

Inc.

.....................................

United

States

18,100

1,305,734

Pioneer

Natural

Resources

Co.

...........................

United

States

41,601

10,666,912

91,912,112

Oil

&

Gas

Refining

&

Marketing

6.5%

Marathon

Petroleum

Corp.

..............................

United

States

95,200

10,816,624

Phillips

66

...........................................

United

States

84,200

8,781,218

Valero

Energy

Corp.

...................................

United

States

74,100

9,303,255

28,901,097

Oil

&

Gas

Storage

&

Transportation

7.2%

Enbridge,

Inc.

........................................

Canada

71,000

2,765,450

Kinder

Morgan,

Inc.

....................................

United

States

393,700

7,133,844

New

Fortress

Energy,

Inc.

...............................

United

States

45,800

2,522,206

Targa

Resources

Corp.

.................................

United

States

65,600

4,485,072

TC

Energy

Corp.

......................................

Canada

172,100

7,558,632

Williams

Cos.,

Inc.

(The)

................................

United

States

236,600

7,743,918

32,209,122

Paper

Packaging

0.3%

Packaging

Corp.

of

America

.............................

United

States

12,800

1,538,688

Semiconductor

Equipment

0.4%

a

SolarEdge

Technologies,

Inc.

............................

United

States

8,100

1,863,243

a

Specialty

Chemicals

1.3%

Albemarle

Corp.

......................................

United

States

9,400

2,630,778

Ecolab,

Inc.

..........................................

United

States

14,700

2,308,929

Neo

Performance

Materials,

Inc.

..........................

Canada

23,600

184,310

b

Neo

Performance

Materials,

Inc.,

144A

.....................

Canada

85,000

663,829

5,787,846

Steel

0.6%

Vale

SA,

ADR

........................................

Brazil

207,400

2,683,756

Trading

Companies

&

Distributors

0.9%

a

Univar

Solutions,

Inc.

..................................

United

States

151,400

3,857,672

a

Total

Common

Stocks

(Cost

$291,069,098)

.....................................

430,811,859

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

905,740

Total

Warrants

(Cost

$88,605)

.................................................

905,740

Principal

Amount

*

Convertible

Bonds

0.3%

Oil

&

Gas

Equipment

&

Services

0.3%

Oil

States

International,

Inc.,

Senior

Note,

4.75%,

4/01/26

.......

United

States

1,200,000

1,195,560

Total

Convertible

Bonds

(Cost

$1,200,000)

.....................................

1,195,560

Total

Long

Term

Investments

(Cost

$292,357,703)

...............................

432,913,159

a

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Natural

Resources

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

Short

Term

Investments

3.2%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

3.1%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

13,822,950

$

13,822,950

Total

Money

Market

Funds

(Cost

$13,822,950)

..................................

13,822,950

f

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.1%

Money

Market

Funds

0.1%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

408,095

408,095

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$408,095)

...................................................................

408,095

Total

Short

Term

Investments

(Cost

$14,231,045

)

................................

14,231,045

a

Total

Investments

(Cost

$306,588,748)

100.0%

..................................

$447,144,204

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(31,629)

Net

Assets

100.0%

...........................................................

$447,112,575

See

Abbreviations

on

page

49.

*

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

October

31,

2022,

the

aggregate

value

of

these

securities

was

$766,924,

representing

0.2%

of

net

assets.

c

A

portion

or

all

of

the

security

is

on

loan

at

October

31,

2022.

See

Note

1(c).

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(c)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

October

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

..................................................

$591,570,962

$292,357,703

Cost

-

Controlled

affiliates

(Note

3

f

and

10

)

.....................................

702

—

Cost

-

Non-controlled

affiliates

(Note

3

f

and

10

)

..................................

20,831,672

14,231,045

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$1,577,537

and

$387,474,

respectively)

............................................................

$824,910,803

$432,913,159

Value

-

Controlled

affiliates

(Note

3

f

and

10

)

....................................

443,203

—

Value

-

Non-controlled

affiliates

(Note

3

f

and

10

)

.................................

9,887,745

14,231,045

Cash

...................................................................

66,622

8,137

Foreign

currency,

at

value

(cost

$–

and

$96,636,

respectively)

........................

—

96,636

Receivables:

Capital

shares

sold

.......................................................

297,702

676,538

Dividends

and

interest

....................................................

22,959

338,377

European

Union

tax

reclaims

(Note

1

d

)

........................................

—

86,290

Total

assets

.........................................................

835,629,034

448,350,182

Liabilities:

Payables:

Capital

shares

redeemed

..................................................

918,588

295,793

Management

fees

........................................................

453,345

178,705

Distribution

fees

.........................................................

167,566

87,479

Transfer

agent

fees

.......................................................

152,904

111,247

Reports

to

shareholders

fees

...............................................

215,262

128,842

Trustees'

fees

and

expenses

................................................

4,664

12

Payable

upon

return

of

securities

loaned

(Note

1

c

)

.................................

1,645,260

408,095

Accrued

expenses

and

other

liabilities

..........................................

80,330

27,434

Total

liabilities

........................................................

3,637,919

1,237,607

Net

assets,

at

value

................................................

$831,991,115

$447,112,575

Net

assets

consist

of:

Paid-in

capital

............................................................

$680,229,268

$506,113,208

Total

distributable

earnings

(losses)

............................................

151,761,847

(59,000,633)

Net

assets,

at

value

................................................

$831,991,115

$447,112,575

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

October

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Class

A:

Net

assets,

at

value

......................................................

$681,999,458

$316,162,752

Shares

outstanding

.......................................................

6,527,781

11,095,724

Net

asset

value

per

share

a

.................................................

$104.48

$28.49

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

...............

$110.56

$30.15

Class

C:

Net

assets,

at

value

......................................................

$30,861,259

$31,947,023

Shares

outstanding

.......................................................

319,427

1,149,205

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$96.61

$27.80

Class

R6:

Net

assets,

at

value

......................................................

$9,429,814

$5,995,602

Shares

outstanding

.......................................................

84,935

194,434

Net

asset

value

and

maximum

offering

price

per

share

............................

$111.02

$30.84

Advisor

Class:

Net

assets,

at

value

......................................................

$109,700,584

$93,007,198

Shares

outstanding

.......................................................

1,003,786

3,038,630

Net

asset

value

and

maximum

offering

price

per

share

............................

$109.29

$30.61

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

six

months

ended

October

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$–

and

$298,170,

respectively)

Unaffiliated

issuers

.......................................................

$2,084,144

$7,639,876

Non-controlled

affiliates

(Note

3

f

and

10

)

.......................................

103,692

51,331

Interest:

Unaffiliated

issuers

.......................................................

(105,971)

28,500

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

....................................

72,502

7,100

Non-controlled

affiliates

(Note

3

f

)

............................................

21,959

10,507

Other

income

(Note

1

d

)

.....................................................

—

86,814

Total

investment

income

..................................................

2,176,326

7,824,128

Expenses:

Management

fees

(Note

3

a

)

..................................................

2,549,383

1,066,598

Distribution

fees:

(Note

3c

)

    Class

A

...............................................................

851,787

369,007

    Class

C

...............................................................

157,769

152,541

Transfer

agent

fees:

(Note

3e

)

    Class

A

...............................................................

635,360

262,191

    Class

C

...............................................................

29,367

27,038

    Class

R6

..............................................................

6,186

3,362

    Advisor

Class

...........................................................

101,495

77,273

Custodian

fees

(Note

4

)

.....................................................

13,070

1,370

Reports

to

shareholders

fees

.................................................

84,254

37,275

Registration

and

filing

fees

...................................................

43,057

54,133

Professional

fees

..........................................................

41,887

27,755

Trustees'

fees

and

expenses

.................................................

3,148

2,304

Other

...................................................................

19,242

8,928

Total

expenses

........................................................

4,536,005

2,089,775

Expense

reductions

(Note

4

)

..............................................

(78)

(13)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

.............................

(38,810)

(20,741)

Net

expenses

........................................................

4,497,117

2,069,021

Net

investment

income

(loss)

...........................................

(2,320,791)

5,755,107

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

.....................................................

(13,091,953)

1,901,539

Foreign

currency

transactions

...............................................

—

(15,586)

Net

realized

gain

(loss)

.................................................

(13,091,953)

1,885,953

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

.....................................................

37,410,263

12,002,198

Controlled

affiliates

(Note

3f

and

10)

.........................................

442,501

—

Non-controlled

affiliates

(Note

3

f

and

10

)

.....................................

(3,023,064)

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

.............

—

(1,922)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

34,829,700

12,000,276

Net

realized

and

unrealized

gain

(loss)

...........................................

21,737,747

13,886,229

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................

$19,416,956

$19,641,336

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(2,320,791)

$(6,278,589)

$5,755,107

$6,378,671

Net

realized

gain

(loss)

............

(13,091,953)

(8,447,950)

1,885,953

22,555,447

Net

change

in

unrealized

appreciation

(depreciation)

.................

34,829,700

(361,108,400)

12,000,276

62,255,900

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

19,416,956

(375,834,939)

19,641,336

91,190,018

Distributions

to

shareholders:

Class

A

........................

—

(116,449,013)

—

(2,494,288)

Class

C

........................

—

(5,802,207)

—

(89,554)

Class

R6

.......................

—

(1,531,760)

—

(38,089)

Advisor

Class

...................

—

(18,710,888)

—

(604,573)

Total

distributions

to

shareholders

.....

—

(142,493,868)

—

(3,226,504)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(39,912,391)

(32,374,163)

12,236,073

49,938,829

Class

C

........................

(3,571,188)

(9,481,659)

397,178

(5,131,362)

Class

R6

.......................

(398,335)

(1,164,486)

850,880

2,505,666

Advisor

Class

...................

(3,704,264)

(26,838,261)

1,507,311

32,039,388

Total

capital

share

transactions

.......

(47,586,178)

(69,858,569)

14,991,442

79,352,521

Net

increase

(decrease)

in

net

assets

.....................

(28,169,222)

(588,187,376)

34,632,778

167,316,035

Net

assets:

Beginning

of

period

................

860,160,337

1,448,347,713

412,479,797

245,163,762

End

of

period

.....................

$831,991,115

$860,160,337

$447,112,575

$412,479,797

Franklin

Strategic

Series

37

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

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.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

8

years.

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

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

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

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

38

franklintempleton.com

Semiannual

Report

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

October

31,

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. 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

(unaudited)

39

franklintempleton.com

Semiannual

Report

d.

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.

 As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

certain

or

all

Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims). Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statements of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statements

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

EU

reclaims

received

by

the

Funds,

if

any,

reduce

the

amount

of

foreign

taxes

Fund

shareholders

can

use

as

tax

deductions

or credits

on

their income

tax

returns.

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

October

31,

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. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

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.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

40

franklintempleton.com

Semiannual

Report

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

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

October

31,

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:

Six

Months

ended

October

31,

2022

Shares

sold

a

...................................

225,377

$22,617,237

2,375,610

$64,231,361

Shares

redeemed

...............................

(625,156)

(62,529,628)

(1,996,323)

(51,995,288)

Net

increase

(decrease)

..........................

(399,779)

$(39,912,391)

379,287

$12,236,073

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

Class

C

Class

C

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

...................................

13,661

$1,262,177

292,737

$7,873,777

Shares

redeemed

a

..............................

(52,681)

(4,833,365)

(294,028)

(7,476,599)

Net

increase

(decrease)

..........................

(39,020)

$(3,571,188)

(1,291)

$397,178

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)

Class

R6

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Accounting

Estimates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

41

franklintempleton.com

Semiannual

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

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

...................................

19,651

$2,143,448

84,574

$2,489,163

Shares

redeemed

...............................

(23,682)

(2,541,783)

(59,611)

(1,638,283)

Net

increase

(decrease)

..........................

(4,031)

$(398,335)

24,963

$850,880

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

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

October

31,

2022

Shares

sold

...................................

134,562

$14,219,922

711,435

$20,886,206

Shares

redeemed

...............................

(170,884)

(17,924,186)

(699,951)

(19,378,895)

Net

increase

(decrease)

..........................

(36,322)

$(3,704,264)

11,484

$1,507,311

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

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

(unaudited)

42

franklintempleton.com

Semiannual

Report

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

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

period

ended

October

31,

2022,

each

Fund's

annualized

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

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

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

........

0.614%

0.510%

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

43

franklintempleton.com

Semiannual

Report

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.

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

period:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

period

ended

October

31,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Reimbursement

Plans:

Class

A

...............................

0.35%

0.35%

Class

C

...............................

1.00%

1.00%

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$29,792

$41,156

CDSC

retained

...........................

$2,146

$6,187

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Transfer

agent

fees

........................

$242,609

$156,354

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

44

franklintempleton.com

Semiannual

Report

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

period

ended

October

31,

2022,

investments

in

affiliated

management

investment

companies

were

as

follows:

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,

2023.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Biotechnology

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$

6,199,878

$

69,363,447

$

(71,944,956)

$

—

$

—

$

3,618,369

3,618,369

$

103,692

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$4,994,101

$58,219,197

$(61,568,038)

$—

$—

$1,645,260

1,645,260

$21,959

Total

Affiliated

Securities

...

$11,193,979

$127,582,644

$(133,512,994)

$—

$—

$5,263,629

$125,651

Franklin

Natural

Resources

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$18,559,837

$50,604,316

$(55,341,203)

$—

$—

$13,822,950

13,822,950

$51,331

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$3,718,640

$35,020,581

$(38,331,126)

$—

$—

$408,095

408,095

$10,507

Total

Affiliated

Securities

...

$22,278,477

$85,624,897

$(93,672,329)

$—

$—

$14,231,045

$61,838

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

45

franklintempleton.com

Semiannual

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

period

ended

October

31,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

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:

At

October

31,

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

corporate

actions,

passive

foreign

investment

company

shares

and

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

October

31,

2022,

were

as

follows:

At

October

31,

2022,

in

connection

with

securities

lending

transactions,

the

Franklin

Biotechnology

Discovery

Fund

and

Franklin

Natural

Resources

Fund

loaned

equity

investments

and

received

$1,645,260

and

$408,095

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.

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

a

a

a

Cost

of

investments

.......................

$620,003,967

$314,067,138

Unrealized

appreciation

.....................

$338,466,497

$159,721,882

Unrealized

depreciation

.....................

(123,228,713)

(26,644,816)

Net

unrealized

appreciation

(depreciation)

.......

$215,237,784

$133,077,066

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Purchases

..............................

$67,794,507

$62,199,661

Sales

..................................

$108,118,614

$39,036,778

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

46

franklintempleton.com

Semiannual

Report

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

October

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

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

period

ended

October

31,

2022

,

investments

in

“affiliated

companies”

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Biotechnology

Discovery

Fund

189,499

Artiva

Biotherapeutics

,

Inc.,

B

...................

2/22/21

$

2,084,489

$

943,577

779,505

Pipeline

Therapeutics,

Inc.,

C

...................

2/09/21

2,088,995

888,848

Total

Restricted

Securities

(Value

is

0.2%

of

Net

Assets)

..............

$4,173,484

$1,832,425

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

47

franklintempleton.com

Semiannual

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.

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

period ended

October

31,

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.)

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

Franklin

Biotechnology

Discovery

Fund

Controlled

Affiliates

a

Dividends

Benitec

Biopharma,

Inc.,

II,

9/14/27

..........

$

—

$

702

$

—

$

—

$

442,501

$

443,203

7,019,473

$

—

Non-Controlled

Affiliates

Dividends

Applied

Therapeutics,

Inc.

1,499,867

814,300

—

—

(1,094,611)

1,219,556

1,575,654

—

Applied

Therapeutics,

Inc.,

6/27/27

..........

—

813,919

—

—

(183,964)

629,955

814,000

—

Applied

Therapeutics,

Inc.,

6/27/27

..........

—

—

—

—

743,631

743,631

1,628,100

—

Artiva

Biotherapeutics

,

Inc.,

B

..........

797,876

—

—

—

145,701

943,577

189,499

—

Benitec

Biopharma,

Inc.

—

3,721,218

—

—

(2,633,821)

1,087,397

6,203,064

—

Total

Affiliated

Securities

(Value

is

0.6%

*

of

Net

Assets)

..........

$2,297,743

$5,350,139

$—

$—

$

(2,580,563)

$5,067,319

$—

*

In

U.S.

dollars

unless

otherwise

indicated.

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

48

franklintempleton.com

Semiannual

Report

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

October

31,

2022,

in

valuing

the

Funds'

assets

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

........................

$

826,306,281

$

—

$

—

$

826,306,281

Preferred

Stocks

........................

—

—

1,832,425

1,832,425

Warrants

:

Biotechnology

.........................

—

629,955

1,186,834

1,816,789

Pharmaceuticals

.......................

22,627

—

—

22,627

Escrows

and

Litigation

Trusts

...............

—

—

—

b

—

Short

Term

Investments

...................

5,263,629

—

—

5,263,629

Total

Investments

in

Securities

...........

$831,592,537

$629,955

$3,019,259

$835,241,751

Level

1

Level

2

Level

3

Total

Franklin

Natural

Resources

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

:

Agricultural

Products

....................

$

5,537,304

$

—

$

—

$

5,537,304

Construction

Machinery

&

Heavy

Trucks

.....

2,657,616

—

—

2,657,616

Construction

Materials

..................

2,923,026

—

—

2,923,026

Copper

..............................

16,745,544

3,052,183

—

19,797,727

Diversified

Chemicals

...................

3,331,620

—

—

3,331,620

Diversified

Metals

&

Mining

...............

10,950,694

5,924,356

—

16,875,050

Electrical

Components

&

Equipment

........

7,941,032

—

—

7,941,032

Environmental

&

Facilities

Services

.........

1,481,060

—

—

1,481,060

Fertilizers

&

Agricultural

Chemicals

.........

8,647,830

—

—

8,647,830

Gold

................................

23,381,858

—

—

23,381,858

Heavy

Electrical

Equipment

..............

1,313,724

—

—

1,313,724

Industrial

Gases

.......................

12,200,740

—

—

12,200,740

Industrial

Machinery

....................

4,127,929

—

—

4,127,929

Integrated

Oil

&

Gas

....................

79,078,589

—

—

79,078,589

Marine

..............................

1,278,210

—

—

1,278,210

Metal

&

Glass

Containers

................

3,540,021

—

—

3,540,021

Oil

&

Gas

Drilling

......................

7,282,318

—

—

7,282,318

Oil

&

Gas

Equipment

&

Services

...........

59,166,469

1,496,200

—

60,662,669

Oil

&

Gas

Exploration

&

Production

.........

88,478,135

3,433,977

—

91,912,112

Oil

&

Gas

Refining

&

Marketing

............

28,901,097

—

—

28,901,097

Oil

&

Gas

Storage

&

Transportation

.........

32,209,122

—

—

32,209,122

Paper

Packaging

......................

1,538,688

—

—

1,538,688

Semiconductor

Equipment

...............

1,863,243

—

—

1,863,243

Specialty

Chemicals

....................

5,124,017

663,829

—

5,787,846

Steel

................................

2,683,756

—

—

2,683,756

Trading

Companies

&

Distributors

..........

3,857,672

—

—

3,857,672

Warrants

..............................

905,740

—

—

905,740

Convertible

Bonds

.......................

—

1,195,560

—

1,195,560

Short

Term

Investments

...................

14,231,045

—

—

14,231,045

Total

Investments

in

Securities

...........

$431,378,099

$15,766,105

c

$—

$447,144,204

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

49

franklintempleton.com

Semiannual

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 period. 

13.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

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

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

b

Includes

financial

instruments

determined

to

have

no

value

at

October

31,

2022.

c

Includes

foreign

securities

valued

at

$13,906,716,

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.

Selected

Portfolio

ADR

American

Depositary

Receipt

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Shareholder

Information

50

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

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.

Franklin

Strategic

Series

Shareholder

Information

51

franklintempleton.com

Semiannual

Report

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

S

12/22

©

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.

Semiannual

Report

and

Shareholder

Letter

Franklin

Strategic

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Income

Fund

A

Series

of

Franklin

Strategic

Series

October

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

six

months

ended

October

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment

and

rising

wages

and

personal

consumption.

U.S.

gross

domestic

product

(GDP)

contracted

in

2022’s

second

quarter

due

to

declines

in

inventory

and

business

investment

but

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply-chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

rate

at

every

meeting

during

the

six-

month

reporting

period,

increasing

it

to

a

range

of

3.00%–

3.25%

by

period-end.

The

Fed

also

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

agency

mortgage-backed

securities

holdings,

and

anticipated

future

federal

funds

rate

increases

would

be

appropriate.

Shortly

after

the

reporting

period,

the

Fed

raised

the

federal

funds

rate

again

by

0.75%

at

its

November

2022

meeting,

increasing

it

to

a

range

of

3.75%–4.00%.

During

the

six-month

period,

investor

concerns

about

inflation,

geopolitics

and

interest

rates

pressured

stock

and

bond

valuations.

In

this

environment,

investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-6.86%

total

return

for

the

six-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

semiannual

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

October

31,

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

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

Strategic

Income

Fund

3

Performance

Summary

5

Your

Fund’s

Expenses

7

Financial

Highlights

and

Schedule

of

Investments

8

Financial

Statements

185

Notes

to

Financial

Statements

190

Shareholder

Information

209

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

Strategic

Income

Fund

This

semiannual

report

for

Franklin

Strategic

Income

Fund

covers

the

period

ended

October

31,

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

-5.97%

cumulative

total

return

for

the

six

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

-6.86%

cumulative

total

return.

1

You

can

find

more

of

the

Fund’s

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

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

-6.86%

total

return

for

the

six

months

ended

October

31,

2022.

1

High

inflation

amid

a

strong

labor

market

led

to

significantly

tighter

monetary

policy,

reducing

the

value

of

most

bonds.

Geopolitical

instability

disrupted

financial

markets

amid

the

ongoing

war

in

Ukraine,

adding

to

the

uncertainty

surrounding

the

course

of

the

global

economy.

The

yield

curve

continued

to

narrow,

eventually

inverting

as

investors

became

increasingly

concerned

about

the

economic

outlook.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

continued

to

raise

the

federal

funds

target

rate.

The

Fed

raised

the

federal

funds

rate

at

each

of

its

four

meetings

during

the

period

to

end

at

a

range

of

3.00%–

3.25%.

The

Fed

noted

in

its

September

2022

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

In

order

to

achieve

its

goal

of

2%

long-run

inflation,

the

Fed

stated

it

anticipates

making

additional

increases

to

the

federal

funds

target

rate.

Furthermore,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

mortgage-backed

security

holdings.

UST

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-6.34%

total

return

for

the

six-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

grew

amid

high

inflation

and

the

Fed’s

tightening

monetary

stance.

Mortgage-backed

securities

(MBS),

as

measured

by

the

Bloomberg

U.S.

MBS

Index,

posted

a

-7.18%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

a

decade.

1

Corporate

bond

prices

also

declined,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

elevated

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,

remained

elevated,

reflecting

investors’

heightened

risk-aversion

preferences.

In

this

environment,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

High

Yield

Bond

Index,

posted

a

-4.69%

total

return,

while

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Investment

Grade

Bond

Index,

posted

a

-7.82%

total

return.

1

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-

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.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

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

13

.

Franklin

Strategic

Income

Fund

4

franklintempleton.com

Semiannual

Report

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

Amid

consistent

hawkish

comments

from

U.S.

Federal

Reserve

(Fed)

officials,

financial

markets

experienced

elevated

recessionary

concerns

and

persistent

volatility

during

the

reporting

period.

Against

this

backdrop,

the

UST

yield

curve

rose

and

flattened,

with

the

2-year

to

10-year

portion

of

the

curve

inverting.

Fixed

income

sectors

generally

posted

negative

total

returns

mainly

due

to

the

move

in

UST.

During

the

period,

the

portfolio’s

short

U.S.

duration

exposure

relative

to

the

benchmark,

was

a

significant

contributor

to

performance.

Underweight

allocation

relative

to

the

benchmark

in

agency

mortgage-backed

securities

(MBS)

and

overweight

allocation

to

non-agency

residential

mortgage-backed

securities

(RMBS)

and

foreign

currency

exposure

benefited

returns.

Allocation

to

high-yield

corporate

bonds

(HY),

senior-secured

floating-rate

bank

loans

(BL)

and

collateralized

loan

obligations

(CLOs)

detracted

from

performance.

Security

selection

across

corporate

credit

sectors

(investment-grade

corporate

bonds

(IG),

HY,

BL

and

CLOs)

and

sovereign

emerging

market

securities

(EM)

were

also

negative

contributors

to

returns.

The

portfolio’s

largest

allocations

remained

in

HY,

IG

and

UST.

We

increased

our

allocation

to

UST,

IG

and

MBS,

while

trimming

our

exposure

to

BLs,

emerging

market

debt

and

HY.

We

also

decreased

our

RMBS

and

asset-back

securities

exposure

during

the

period.

Effective

August

1,

2022,

Thomas

Runkel

and

Benjamin

Cryer

were

added

as

Portfolio

Managers.

Prior

to

period-

end,

October

31,

2022,

William

Chong

(Portfolio

Manager)

stepped

off

the

Fund

as

of

August

1,

2022,

and

David

Yuen

(Portfolio

Manager)

retired

effective

September

30,

2022.

Their

responsibilities

have

been

allocated

to

others

in

the

portfolio

management

team.

Thank

you

for

your

participation

in

Franklin

Strategic

Income

Fund.

We

look

forward

to

continuing

to

serve

your

investment

needs.

Sonal

Desai,

Ph.D.

Patrick

Klein,

Ph.D.

Patricia

O’Connor,

CFA

Thomas

Runkel,

CFA

Benjamin

Cryer,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

October

31,

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.

Portfolio

Composition

10/31/22

%

of

Total

Net

Assets

Corporate

Bonds

43.5%

U.S.

Government

and

Agency

Securities

18.8%

Mortgage-Backed

Securities

6.2%

Asset-Backed

Securities

6.2%

Management

Investment

Companies

6.2%

Foreign

Government

and

Agency

Securities

5.5%

Residential

Mortgage-Backed

Securities

5.3%

Marketplace

Loans

2.6%

Other

1.1%

Short-Term

Investments

&

Other

Net

Assets

4.6%

Performance

Summary

as

of

October

31,

2022

Franklin

Strategic

Income

Fund

5

franklintempleton.com

Semiannual

Report

The

performance

tables

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

10/31/22

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

6-Month

-5.97%

-9.46%

1-Year

-13.19%

-16.46%

5-Year

-2.81%

-1.33%

10-Year

+12.20%

+0.77%

Advisor

6-Month

-5.84%

-5.84%

1-Year

-12.96%

-12.96%

5-Year

-1.59%

-0.32%

10-Year

+15.05%

+1.41%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

4.12%

4.47%

4.42%

Advisor

4.55%

4.90%

4.85%

See

page

6

for

Performance

Summary

footnotes.

Franklin

Strategic

Income

Fund

Performance

Summary

6

franklintempleton.com

Semiannual

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.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

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.

To

the

extent

that

the

Fund

has

exposure

to

Russian

investments

or

investments

in

countries

affected

by

the

invasion,

the

Fund’s

ability

to

price,

buy,

sell,

receive

or

deliver

such

investments

may

be

impaired.

The

Fund

could

determine

at

any

time

that

certain

of

the

most

affected

securities

have

zero

value.

In

addition,

any

exposure

that

the

Fund

may

have

to

counterparties

in

Russia

or

in

countries

affected

by

the

invasion

could

negatively

impact

the

Fund’s

portfolio.

The

extent

and

duration

of

Russia’s

military

actions

and

the

repercussions

of

such

actions

(including

any

retaliatory

actions

or

countermeasures

that

may

be

taken

by

those

subject

to

sanctions)

are

impos-

sible

to

predict,

but

could

result

in

significant

market

disruptions,

including

in

the

oil

and

natural

gas

markets,

and

may

negatively

affect

global

supply

chains,

inflation

and

global

growth.

These

and

any

related

events

could

significantly

impact

the

Fund’s

performance

and

the

value

of

an

investment

in

the

Fund,

even

beyond

any

direct

exposure

the

Fund

may

have

to

Russian

issuers

or

issuers

in

other

countries

affected

by

the

invasion.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

and

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

8/31/23

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

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

10/31/22.

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.

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

(5/1/22–10/31/22)

Share

Class

Net

Investment

Income

A

$0.1637

C

$0.1458

R

$0.1532

R6

$0.1800

Advisor

$0.1741

Total

Annual

Operating

Expenses

7

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.88%

0.94%

Advisor

0.63%

0.69%

Your

Fund’s

Expenses

Franklin

Strategic

Income

Fund

7

franklintempleton.com

Semiannual

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

184/365

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

5/1/22

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

Ending

Account

Value

10/31/22

Expenses

Paid

During

Period

5/1/22–10/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$940.30

$4.33

$1,020.74

$4.51

0.89%

C

$1,000

$939.50

$6.28

$1,018.73

$6.53

1.28%

R

$1,000

$940.00

$5.55

$1,019.48

$5.78

1.14%

R6

$1,000

$943.50

$2.44

$1,022.70

$2.54

0.50%

Advisor

$1,000

$941.60

$3.11

$1,022.00

$3.24

0.64%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

2

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021*

2020

a

2019

a

2018

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$8.55

$9.44

$8.67

$9.61

$9.61

$9.84

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.17

0.29

0.37

0.38

0.42

0.39

Net

realized

and

unrealized

gains

(losses)

(0.68)

(0.84)

0.75

(0.90)

—

d

(0.32)

Total

from

investment

operations

........

(0.51)

(0.55)

1.12

(0.52)

0.42

0.07

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.16)

(0.34)

(0.35)

(0.42)

(0.42)

(0.30)

Net

asset

value,

end

of

period

..........

$7.88

$8.55

$9.44

$8.67

$9.61

$9.61

Total

return

e

.......................

(5.97)%

(6.07)%

13.05%

(5.72)%

4.52%

0.64%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.95%

0.90%

0.88%

0.88%

0.89%

0.90%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

0.89%

0.84%

0.86%

0.86%

0.84%

0.85%

Net

investment

income

...............

4.01%

3.11%

3.93%

4.01%

4.39%

3.93%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,290,353

$2,609,533

$2,862,068

$2,686,523

$3,131,799

$3,291,002

Portfolio

turnover

rate

................

39.49%

52.98%

111.72%

h

118.64%

116.21%

h

115.94%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

i

........................

39.49%

41.46%

54.21%

h

86.69%

39.01%

h

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,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

i

See

Note

1(h)

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.

Semiannual

Report

9

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021*

2020

a

2019

a

2018

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$8.55

$9.44

$8.67

$9.61

$9.60

$9.84

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.15

0.25

0.33

0.34

0.38

0.35

Net

realized

and

unrealized

gains

(losses)

(0.66)

(0.84)

0.75

(0.90)

0.01

(0.33)

Total

from

investment

operations

........

(0.51)

(0.59)

1.08

(0.56)

0.39

0.02

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.15)

(0.30)

(0.31)

(0.38)

(0.38)

(0.26)

Net

asset

value,

end

of

period

..........

$7.89

$8.55

$9.44

$8.67

$9.61

$9.60

Total

return

d

d

......................

(6.05)%

(6.48)%

12.58%

(6.11)%

4.19%

0.14%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.35%

1.29%

1.28%

1.28%

1.29%

1.30%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.28

%

1.24%

1.26%

1.26%

1.24%

1.25%

Net

investment

income

...............

3.61%

2.70%

3.51%

3.61%

3.99%

3.53%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$122,308

$171,374

$387,589

$518,795

$716,327

$1,078,890

Portfolio

turnover

rate

................

39.49%

52.98%

111.72%

g

118.64%

116.21%

g

115.94%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

........................

39.49%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

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(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021*

2020

a

2019

a

2018

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$8.51

$9.40

$8.63

$9.57

$9.57

$9.81

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.16

0.27

0.34

0.36

0.39

0.36

Net

realized

and

unrealized

gains

(losses)

(0.67)

(0.85)

0.76

(0.91)

0.01

(0.33)

Total

from

investment

operations

........

(0.51)

(0.58)

1.10

(0.55)

0.40

0.03

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.15)

(0.31)

(0.33)

(0.39)

(0.40)

(0.27)

Net

asset

value,

end

of

period

..........

$7.85

$8.51

$9.40

$8.63

$9.57

$9.57

Total

return

d

.......................

(6.00)%

(6.33)%

12.83%

(5.98)%

4.28%

0.29%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.20%

1.15%

1.13%

1.13%

1.14%

1.15%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.14%

1.09%

1.11%

1.11%

1.09%

1.10%

Net

investment

income

...............

3.76%

2.86%

3.68%

3.76%

4.14%

3.68%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$41,359

$48,447

$59,366

$62,063

$85,458

$105,692

Portfolio

turnover

rate

................

39.49%

52.98%

111.72%

g

118.64%

116.21%

g

115.94%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

........................

39.49%

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

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

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(h)

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.

Semiannual

Report

11

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021*

2020

a

2019

a

2018

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$8.56

$9.45

$8.68

$9.63

$9.62

$9.86

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.18

0.32

0.40

0.43

0.45

0.43

Net

realized

and

unrealized

gains

(losses)

(0.66)

(0.84)

0.75

(0.93)

0.02

(0.34)

Total

from

investment

operations

........

(0.48)

(0.52)

1.15

(0.50)

0.47

0.09

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.18)

(0.37)

(0.38)

(0.45)

(0.46)

(0.33)

Net

asset

value,

end

of

period

..........

$7.90

$8.56

$9.45

$8.68

$9.63

$9.62

Total

return

d

.......................

(5.65)%

(5.72)%

13.45%

(5.46)%

5.03%

0.95%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.59%

0.55%

0.54%

0.52%

0.51%

0.50%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.50%

0.48%

0.50%

0.49%

0.45%

0.45%

Net

investment

income

...............

4.40%

3.47%

4.30%

4.38%

4.78%

4.33%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$118,072

$136,184

$132,736

$133,575

$307,287

$433,068

Portfolio

turnover

rate

................

39.49%

52.98%

111.72%

g

118.64%

116.21%

g

115.94%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

........................

39.49%

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

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

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(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

2021

*

2020

a

2019

a

2018

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$8.56

$9.45

$8.68

$9.62

$9.62

$9.85

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.18

0.31

0.39

0.40

0.44

0.41

Net

realized

and

unrealized

gains

(losses)

(0.67)

(0.84)

0.75

(0.90)

—

d

(0.32)

Total

from

investment

operations

........

(0.49)

(0.53)

1.14

(0.50)

0.44

0.09

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

....................

(0.17)

(0.36)

(0.37)

(0.44)

(0.44)

(0.32)

Net

asset

value,

end

of

period

..........

$7.90

$8.56

$9.45

$8.68

$9.62

$9.62

Total

return

e

.......................

(5.84)%

(5.83)%

13.32%

(5.47)%

4.88%

0.79%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.70%

0.65%

0.63%

0.63%

0.64%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

0.64%

0.59%

0.61%

0.61%

0.59%

0.60%

Net

investment

income

...............

4.26%

3.36%

4.18%

4.26%

4.64%

4.18%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$331,052

$390,465

$462,624

$517,522

$608,317

$933,747

Portfolio

turnover

rate

................

39.49%

52.98%

111.72%

h

118.64%

116.21%

h

115.94%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

i

........................

39.49%

41.46%

54.21%

h

86.69%

39.01%

h

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

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

i

See

Note

1(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Strategic

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.5%

Energy

Equipment

&

Services

0.2%

a

Weatherford

International

plc

.............................

United

States

151,545

$

6,316,395

Media

0.0%

†

a

Clear

Channel

Outdoor

Holdings,

Inc.

......................

United

States

285,564

408,357

a

iHeartMedia,

Inc.,

A

....................................

United

States

117,026

968,975

1,377,332

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

0.3%

a

Amplify

Energy

Corp.

..................................

United

States

5,288

52,298

Birch

Permian

Holdings,

Inc.

.............................

United

States

406,124

7,767,122

7,819,420

Total

Common

Stocks

(Cost

$22,627,345)

......................................

15,513,147

Management

Investment

Companies

6.2%

Capital

Markets

6.2%

d

Franklin

Floating

Rate

Income

Fund

.......................

United

States

23,707,540

178,754,852

Total

Management

Investment

Companies

(Cost

$223,160,246)

...................

178,754,852

Warrants

Warrants

0.0%

Oil,

Gas

&

Consumable

Fuels

0.0%

a,b

Chaparral

Energy,

Inc.,

10/01/24

..........................

United

States

9

—

a,b

Chaparral

Energy,

Inc.,

10/01/25

..........................

United

States

9

—

—

Software

0.0%

a,b,c

WorkCapital

BSD

SARL,

2/13/26

..........................

Luxembourg

6,000,000

—

Total

Warrants

(Cost

$750,000)

................................................

—

Principal

Amount

*

Convertible

Bonds

0.0%

†

Wireless

Telecommunication

Services

0.0%

†

e,f,g

Digicel

Group

Holdings

Ltd.

,

Sub.

Bond

,

144A,

PIK,

7

%

,

Perpetual

Bermuda

687,736

47,435

Total

Convertible

Bonds

(Cost

$189,082)

.......................................

47,435

Corporate

Bonds

43.5%

Aerospace

&

Defense

0.7%

Boeing

Co.

(The)

,

Senior

Bond,

3.625%,

2/01/31

..........................

United

States

5,000,000

4,157,628

Senior

Note,

5.15%,

5/01/30

...........................

United

States

8,100,000

7,492,056

g

TransDigm,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

3/15/26

....

United

States

10,000,000

9,881,350

21,531,034

Air

Freight

&

Logistics

0.1%

g

DAE

Funding

LLC

,

Senior

Note

,

144A,

1.55

%

,

8/01/24

.........

United

Arab

Emirates

2,300,000

2,087,290

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Air

Freight

&

Logistics

(continued)

FedEx

Corp.

,

Senior

Bond

,

4.05

%

,

2/15/48

..................

United

States

1,200,000

$

848,215

2,935,505

Airlines

0.7%

g

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.75

%

,

4/20/29

............................

United

States

5,900,000

5,379,532

g

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

10,400,000

10,138,351

g

International

Consolidated

Airlines

Group

SA

,

Senior

Note

,

Reg

S,

3.75

%

,

3/25/29

.....................................

United

Kingdom

3,000,000

EUR

2,216,263

g

United

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

4/15/26

.

United

States

1,700,000

1,554,680

19,288,826

Auto

Components

1.0%

g

Allison

Transmission,

Inc.

,

Senior

Bond,

144A,

5.875%,

6/01/29

.....................

United

States

7,000,000

6,537,790

Senior

Bond,

144A,

3.75%,

1/30/31

......................

United

States

3,400,000

2,720,835

Dana,

Inc.

,

Senior

Note

,

5.625

%

,

6/15/28

...................

United

States

9,000,000

8,158,455

g

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

6,600,000

4,502,074

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

8,300,000

7,219,091

29,138,245

Automobiles

0.3%

g

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

11,800,000

8,360,064

Banks

4.7%

Banco

Santander

SA

,

Sub.

Bond

,

2.749

%

,

12/03/30

...........

Spain

3,000,000

2,079,728

Bank

of

America

Corp.

,

Senior

Bond

,

2.676%

to

6/18/40,

FRN

thereafter

,

6/19/41

...................................

United

States

4,000,000

2,537,324

g

BNP

Paribas

SA

,

Senior

Note

,

144A,

2.819%

to

11/18/24,

FRN

thereafter

,

11/19/25

..................................

France

4,400,000

4,088,323

Citigroup,

Inc.

,

Senior

Note

,

5.61%

to

9/28/25,

FRN

thereafter

,

9/29/26

...........................................

United

States

15,500,000

15,304,989

HSBC

Holdings

plc

,

Senior

Bond,

2.848%

to

6/03/30,

FRN

thereafter,

6/04/31

.....

United

Kingdom

8,300,000

6,171,755

Senior

Note,

4.18%

to

12/08/24,

FRN

thereafter,

12/09/25

.....

United

Kingdom

9,100,000

8,576,509

Senior

Note,

5.21%

to

8/10/27,

FRN

thereafter,

8/11/28

.......

United

Kingdom

5,850,000

5,360,857

JPMorgan

Chase

&

Co.

,

Senior

Bond,

2.522%

to

4/21/30,

FRN

thereafter,

4/22/31

.....

United

States

9,400,000

7,422,893

Senior

Bond,

2.525%

to

11/18/40,

FRN

thereafter,

11/19/41

....

United

States

4,000,000

2,474,393

Senior

Note,

3.845%

to

6/13/24,

FRN

thereafter,

6/14/25

......

United

States

6,800,000

6,591,351

KeyBank

NA

,

Senior

Note

,

4.15

%

,

8/08/25

..................

United

States

5,000,000

4,831,460

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Note

,

5.063%

to

9/11/24,

FRN

thereafter

,

9/12/25

.........................

Japan

9,200,000

9,070,070

National

Bank

of

Canada

,

Senior

Note

,

3.75%

to

6/08/24,

FRN

thereafter

,

6/09/25

...................................

Canada

8,300,000

8,004,737

Santander

UK

Group

Holdings

plc

,

Senior

Note

,

1.673%

to

6/23/26,

FRN

thereafter

,

6/14/27

...............................

United

Kingdom

6,700,000

5,477,635

g

Societe

Generale

SA

,

Senior

Bond,

144A,

2.889%

to

6/08/31,

FRN

thereafter,

6/09/32

France

7,500,000

5,371,045

Senior

Note,

144A,

1.792%

to

6/08/26,

FRN

thereafter,

6/09/27

.

France

7,200,000

5,901,468

SVB

Financial

Group

,

Senior

Bond

,

3.125

%

,

6/05/30

...........

United

States

2,700,000

2,107,896

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.693

%

,

9/15/27

.....

Canada

9,900,000

9,488,379

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

Truist

Financial

Corp.

,

Senior

Note

,

5.9%

to

10/27/25,

FRN

thereafter

,

10/28/26

..................................

United

States

7,900,000

$

7,905,907

g

UniCredit

SpA

,

Senior

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...................................

Italy

5,300,000

3,738,802

Wells

Fargo

&

Co.

,

Senior

Note,

1.654%

to

6/01/23,

FRN

thereafter,

6/02/24

......

United

States

8,600,000

8,402,456

Senior

Note,

4.54%

to

8/14/25,

FRN

thereafter,

8/15/26

.......

United

States

4,700,000

4,524,130

135,432,107

Beverages

0.2%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

3.5

%

,

6/01/30

Belgium

1,300,000

1,163,273

g

Primo

Water

Holdings,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/30/29

..

Canada

7,000,000

5,882,240

7,045,513

Biotechnology

0.3%

AbbVie,

Inc.

,

Senior

Note

,

3.2

%

,

11/21/29

...................

United

States

6,000,000

5,249,279

Amgen,

Inc.

,

Senior

Bond

,

4.2

%

,

3/01/33

...................

United

States

4,000,000

3,606,900

8,856,179

Building

Products

1.0%

g

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....................................

United

States

5,000,000

4,175,000

Carrier

Global

Corp.

,

Senior

Note

,

2.722

%

,

2/15/30

............

United

States

16,000,000

13,168,861

g

Eco

Material

Technologies,

Inc.

,

Senior

Secured

Note

,

144A,

7.875

%

,

1/31/27

.....................................

United

States

5,000,000

4,680,150

g

Standard

Industries,

Inc.

,

Senior

Bond,

144A,

4.75%,

1/15/28

......................

United

States

4,800,000

4,217,856

Senior

Bond,

144A,

4.375%,

7/15/30

.....................

United

States

1,600,000

1,296,656

Senior

Bond,

144A,

3.375%,

1/15/31

.....................

United

States

1,400,000

1,050,826

28,589,349

Capital

Markets

2.8%

Credit

Suisse

Group

AG

,

Senior

Note,

4.55%,

4/17/26

...........................

Switzerland

7,850,000

6,891,815

g

Senior

Note,

144A,

2.193%

to

6/04/25,

FRN

thereafter,

6/05/26

.

Switzerland

2,030,000

1,711,896

g

Senior

Note,

144A,

6.373%

to

7/14/25,

FRN

thereafter,

7/15/26

.

Switzerland

6,150,000

5,725,442

Deutsche

Bank

AG

,

Senior

Note

,

5.371

%

,

9/09/27

.............

Germany

7,800,000

7,403,045

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.21%

to

4/21/41,

FRN

thereafter,

4/22/42

......

United

States

7,000,000

4,671,070

Senior

Note,

0.673%

to

3/07/23,

FRN

thereafter,

3/08/24

......

United

States

8,500,000

8,330,031

Senior

Note,

5.7%,

11/01/24

...........................

United

States

6,200,000

6,201,975

Senior

Note,

4.387%

to

6/14/26,

FRN

thereafter,

6/15/27

......

United

States

3,400,000

3,197,582

Senior

Note,

1.948%

to

10/20/26,

FRN

thereafter,

10/21/27

....

United

States

3,000,000

2,550,873

Morgan

Stanley

,

Senior

Bond,

3.591%

to

7/21/27,

FRN

thereafter,

7/22/28

.....

United

States

10,000,000

8,970,383

Senior

Note,

3.737%

to

4/23/23,

FRN

thereafter,

4/24/24

......

United

States

8,500,000

8,417,348

g

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.25

%

,

8/15/33

...............

United

States

11,800,000

9,148,992

g

UBS

Group

AG

,

Senior

Note

,

144A,

4.49%

to

8/04/24,

FRN

thereafter

,

8/05/25

...................................

Switzerland

8,150,000

7,876,489

81,096,941

Chemicals

2.3%

g

Alpek

SAB

de

CV

,

Senior

Bond

,

144A,

4.25

%

,

9/18/29

.........

Mexico

8,000,000

6,830,440

e,g

Anagram

International,

Inc.

/

Anagram

Holdings

LLC

,

Secured

Note

,

144A,

PIK,

0

%

,

8/15/26

...............................

United

States

723,727

698,374

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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

(continued)

Chemicals

(continued)

g

ASP

Unifrax

Holdings,

Inc.

,

Senior

Note,

144A,

7.5%,

9/30/29

.......................

United

States

2,000,000

$

1,343,030

Senior

Secured

Note,

144A,

5.25%,

9/30/28

...............

United

States

3,000,000

2,392,998

g

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,000,000

4,699,065

g

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

7,000,000

5,691,493

g

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

5.625

%

,

10/15/28

..........................................

Switzerland

6,700,000

5,636,981

g

CVR

Partners

LP

/

CVR

Nitrogen

Finance

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/28

...........................

United

States

3,000,000

2,718,390

g

Diamond

BC

BV

,

Senior

Note

,

144A,

4.625

%

,

10/01/29

.........

United

States

2,200,000

1,619,321

g

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

.....

United

States

6,600,000

5,627,160

g

Gates

Global

LLC

/

Gates

Corp.

,

Senior

Note

,

144A,

6.25

%

,

1/15/26

United

States

7,900,000

7,601,735

g

GPD

Cos.,

Inc.

,

Senior

Secured

Note

,

144A,

10.125

%

,

4/01/26

...

United

States

5,000,000

4,478,094

e,g

Kobe

US

Midco

2,

Inc.

,

Senior

Note

,

144A,

PIK,

9.25

%

,

11/01/26

..

United

States

2,500,000

1,937,500

g

Syngenta

Finance

NV

,

Senior

Note

,

144A,

4.892

%

,

4/24/25

......

Switzerland

6,385,000

6,115,488

g

Vibrantz

Technologies,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/30

.....

United

States

7,100,000

4,694,650

Westlake

Corp.

,

Senior

Bond

,

3.375

%

,

6/15/30

...............

United

States

2,500,000

2,089,817

g

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

1,400,000

1,104,615

65,279,151

Commercial

Services

&

Supplies

0.5%

g

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

6,000,000

4,741,140

g

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

....................

United

States

11,000,000

9,544,931

14,286,071

Communications

Equipment

0.2%

g

CommScope

Technologies

LLC

,

Senior

Bond

,

144A,

6

%

,

6/15/25

.

United

States

5,518,000

5,158,557

Construction

&

Engineering

0.1%

g

Arcosa,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/15/29

.............

United

States

2,600,000

2,245,269

Consumer

Finance

0.5%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond

,

3.4

%

,

10/29/33

.................................

Ireland

4,500,000

3,258,736

g

Park

Aerospace

Holdings

Ltd.

,

Senior

Note

,

144A,

5.5

%

,

2/15/24

.

Ireland

3,100,000

3,027,198

g

PRA

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

10/01/29

............

United

States

4,600,000

3,695,962

g

PROG

Holdings,

Inc.

,

Senior

Note

,

144A,

6

%

,

11/15/29

.........

United

States

5,800,000

4,748,779

14,730,675

Containers

&

Packaging

0.9%

g

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

8/15/27

............................

United

States

3,700,000

2,606,613

g

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Note

,

144A,

5.875

%

,

8/15/23

...........................................

United

States

2,979,000

2,967,349

g

Pactiv

Evergreen

Group

Issuer

LLC

/

Pactiv

Evergreen

Group

Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

10/15/28

..........

United

States

6,100,000

5,345,949

g

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

4,600,000

4,082,960

g

Sealed

Air

Corp.

,

Senior

Bond

,

144A,

5.125

%

,

12/01/24

........

United

States

9,000,000

8,876,790

WRKCo,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

3,600,000

2,737,902

26,617,563

Diversified

Consumer

Services

0.2%

Grand

Canyon

University

,

Note

,

5.125

%

,

10/01/28

.............

United

States

7,500,000

6,721,875

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Financial

Services

0.6%

b,h

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

$

1,603,523

g

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

6

%

,

8/15/26

..

United

States

7,000,000

5,838,000

g

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

11,000,000

8,521,755

15,963,278

Diversified

Telecommunication

Services

1.3%

g

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

9,100,000

5,906,955

g

Altice

France

SA

,

Senior

Secured

Note,

144A,

5.5%,

1/15/28

................

France

2,500,000

1,981,725

Senior

Secured

Note,

144A,

5.5%,

10/15/29

...............

France

3,000,000

2,293,275

AT&T,

Inc.

,

Senior

Bond

,

3.65

%

,

9/15/59

....................

United

States

4,000,000

2,531,435

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

4.5

%

,

5/01/32

......................................

United

States

13,000,000

10,292,230

g

Iliad

Holding

SASU

,

Senior

Secured

Note,

144A,

6.5%,

10/15/26

...............

France

2,800,000

2,597,532

Senior

Secured

Note,

144A,

7%,

10/15/28

.................

France

5,400,000

4,901,121

g

Virgin

Media

Secured

Finance

plc

,

Senior

Secured

Bond

,

144A,

4.5

%

,

8/15/30

......................................

United

Kingdom

9,000,000

7,458,473

37,962,746

Electric

Utilities

1.5%

Duke

Energy

Corp.

,

Senior

Bond,

2.45%,

6/01/30

...........................

United

States

3,800,000

3,032,187

Senior

Bond,

3.75%,

9/01/46

...........................

United

States

1,600,000

1,102,649

g

Enel

Finance

International

NV

,

Senior

Note

,

144A,

2.65

%

,

9/10/24

Italy

7,800,000

7,291,090

Exelon

Corp.

,

Senior

Bond,

4.05%,

4/15/30

...........................

United

States

13,400,000

12,034,392

Senior

Bond,

4.45%,

4/15/46

...........................

United

States

1,400,000

1,100,600

Southern

Co.

(The)

,

Senior

Bond

,

4.4

%

,

7/01/46

..............

United

States

5,000,000

3,893,261

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

6.35

%

,

11/30/37

...

United

States

820,000

835,499

g

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

4.375%,

5/01/29

.....................

United

States

11,000,000

9,434,810

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

................

United

States

6,000,000

5,240,683

43,965,171

Electrical

Equipment

0.3%

Eaton

Corp.

,

Senior

Bond

,

4.15

%

,

3/15/33

...................

United

States

1,900,000

1,687,368

g

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

8,500,000

7,414,592

9,101,960

Electronic

Equipment,

Instruments

&

Components

0.4%

CDW

LLC

/

CDW

Finance

Corp.

,

Senior

Note

,

3.25

%

,

2/15/29

....

United

States

5,000,000

4,098,826

Flex

Ltd.

,

Senior

Bond

,

4.875

%

,

5/12/30

....................

United

States

7,100,000

6,314,908

10,413,734

Energy

Equipment

&

Services

0.1%

g

Schlumberger

Holdings

Corp.

,

Senior

Note

,

144A,

3.9

%

,

5/17/28

..

United

States

3,800,000

3,453,926

g

Weatherford

International

Ltd.

,

Senior

Note

,

144A,

11

%

,

12/01/24

.

United

States

462,000

476,330

3,930,256

Entertainment

0.5%

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

.........................

United

States

11,800,000

11,263,100

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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)

Entertainment

(continued)

Netflix,

Inc.,

(continued)

Senior

Bond,

6.375%,

5/15/29

..........................

United

States

2,000,000

$

2,042,280

g

Warnermedia

Holdings,

Inc.

,

Senior

Note

,

144A,

4.054

%

,

3/15/29

.

United

States

2,100,000

1,786,303

15,091,683

Equity

Real

Estate

Investment

Trusts

(REITs)

1.0%

g

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

......................

United

States

7,700,000

6,228,063

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

3.5

%

,

3/15/31

......................................

United

States

4,000,000

2,758,510

g

Necessity

Retail

REIT,

Inc.

(The)

/

American

Finance

Operating

Partner

LP

,

Senior

Note

,

144A,

4.5

%

,

9/30/28

...............

United

States

5,300,000

3,877,533

Simon

Property

Group

LP

,

Senior

Bond

,

4.25

%

,

11/30/46

.......

United

States

3,000,000

2,204,157

g

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note,

144A,

3.75%,

2/15/27

......................

United

States

7,500,000

6,588,000

Senior

Note,

144A,

3.875%,

2/15/29

.....................

United

States

3,300,000

2,786,023

g

XHR

LP

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/01/29

.........

United

States

3,500,000

3,024,681

27,466,967

Food

Products

0.3%

g

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

2,000,000

1,403,347

g

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Note,

144A,

2.5%,

1/15/27

.......................

United

States

6,300,000

5,377,554

Senior

Note,

144A,

3.625%,

1/15/32

.....................

United

States

3,500,000

2,717,593

9,498,494

Gas

Utilities

0.1%

Piedmont

Natural

Gas

Co.,

Inc.

,

Senior

Bond

,

3.35

%

,

6/01/50

....

United

States

2,800,000

1,788,847

Health

Care

Equipment

&

Supplies

0.2%

g

Garden

Spinco

Corp.

,

Senior

Note

,

144A,

8.625

%

,

7/20/30

......

United

States

2,700,000

2,781,257

g

Medline

Borrower

LP

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

......

United

States

5,300,000

4,136,703

6,917,960

Health

Care

Providers

&

Services

1.6%

Centene

Corp.

,

Senior

Note,

4.25%,

12/15/27

..........................

United

States

3,000,000

2,772,060

Senior

Note,

2.45%,

7/15/28

...........................

United

States

2,300,000

1,895,223

Senior

Note,

4.625%,

12/15/29

.........................

United

States

2,300,000

2,085,272

Senior

Note,

3.375%,

2/15/30

..........................

United

States

1,400,000

1,165,150

Senior

Note,

2.625%,

8/01/31

..........................

United

States

5,300,000

4,063,192

g

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

8,000,000

3,238,671

Senior

Secured

Note,

144A,

5.625%,

3/15/27

..............

United

States

3,700,000

2,955,930

Senior

Secured

Note,

144A,

6%,

1/15/29

..................

United

States

2,300,000

1,713,316

CVS

Health

Corp.

,

Senior

Bond

,

1.75

%

,

8/21/30

..............

United

States

4,000,000

3,048,209

g

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

9,000,000

7,031,430

Elevance

Health,

Inc.

,

Senior

Bond

,

3.7

%

,

9/15/49

............

United

States

1,400,000

1,002,691

HCA,

Inc.

,

Senior

Bond

,

3.5

%

,

9/01/30

.....................

United

States

7,200,000

5,974,596

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

2,100,000

1,684,595

g

Tenet

Healthcare

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/30

...........................................

United

States

8,000,000

7,398,560

46,028,895

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

1.2%

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

8,300,000

$

6,716,805

g

Melco

Resorts

Finance

Ltd.

,

Senior

Note

,

144A,

5.75

%

,

7/21/28

..

Hong

Kong

5,900,000

3,422,000

g

Motion

Bondco

DAC

,

Senior

Note

,

144A,

6.625

%

,

11/15/27

......

United

Kingdom

2,000,000

1,675,960

g

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

3/15/26

...........

United

States

6,300,000

5,171,260

g

Papa

John's

International,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/15/29

United

States

3,200,000

2,603,929

g

Premier

Entertainment

Sub

LLC

/

Premier

Entertainment

Finance

Corp.

,

Senior

Bond,

144A,

5.875%,

9/01/31

.....................

United

States

3,900,000

2,772,863

Senior

Note,

144A,

5.625%,

9/01/29

.....................

United

States

2,000,000

1,485,570

g

Station

Casinos

LLC

,

Senior

Note

,

144A,

4.5

%

,

2/15/28

........

United

States

3,100,000

2,677,733

g

Studio

City

Finance

Ltd.

,

Senior

Note

,

144A,

5

%

,

1/15/29

.......

Macau

11,700,000

5,055,804

g

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.........

Macau

6,200,000

3,799,050

35,380,974

Household

Durables

0.2%

M/I

Homes,

Inc.

,

Senior

Note

,

3.95

%

,

2/15/30

................

United

States

2,900,000

2,157,619

Mohawk

Industries,

Inc.

,

Senior

Bond

,

3.625

%

,

5/15/30

.........

United

States

5,010,000

4,117,038

6,274,657

Household

Products

0.3%

g

Central

Garden

&

Pet

Co.

,

Senior

Bond

,

144A,

4.125

%

,

4/30/31

..

United

States

5,000,000

4,158,275

g

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

2,200,000

1,749,968

g

Spectrum

Brands,

Inc.

,

Senior

Bond

,

144A,

3.875

%

,

3/15/31

.....

United

States

4,500,000

3,325,208

9,233,451

Independent

Power

and

Renewable

Electricity

Producers

1.7%

g

Atlantica

Sustainable

Infrastructure

plc

,

Senior

Note

,

144A,

4.125

%

,

6/15/28

...........................................

Spain

3,400,000

2,886,464

g

Calpine

Corp.

,

Senior

Bond,

144A,

5%,

2/01/31

........................

United

States

4,300,000

3,643,210

Senior

Note,

144A,

4.625%,

2/01/29

.....................

United

States

4,000,000

3,370,236

g

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75

%

,

2/15/31

United

States

7,800,000

6,531,837

g

Colbun

SA

,

Senior

Bond,

144A,

3.95%,

10/11/27

.....................

Chile

7,500,000

6,713,363

Senior

Bond,

144A,

3.15%,

3/06/30

......................

Chile

2,900,000

2,339,037

g

InterGen

NV

,

Senior

Secured

Bond

,

144A,

7

%

,

6/30/23

.........

Netherlands

11,900,000

11,662,476

g,i

Talen

Energy

Supply

LLC

,

Senior

Note,

144A,

10.5%,

1/15/26

......................

United

States

2,800,000

1,785,514

Senior

Secured

Note,

144A,

7.25%,

5/15/27

...............

United

States

10,800,000

10,979,953

49,912,090

Insurance

0.3%

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

10,000,000

6,445,034

g

Metropolitan

Life

Global

Funding

I

,

Secured

Note

,

144A,

4.3

%

,

8/25/29

...........................................

United

States

3,000,000

2,761,747

9,206,781

Interactive

Media

&

Services

0.5%

g

Tencent

Holdings

Ltd.

,

Senior

Bond

,

144A,

2.39

%

,

6/03/30

......

China

17,100,000

12,445,236

g

ZipRecruiter,

Inc.

,

Senior

Note

,

144A,

5

%

,

1/15/30

.............

United

States

3,500,000

2,868,950

15,314,186

Internet

&

Direct

Marketing

Retail

0.2%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

4

%

,

12/06/37

.........

China

4,000,000

2,734,394

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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)

Internet

&

Direct

Marketing

Retail

(continued)

g

Match

Group

Holdings

II

LLC

,

Senior

Note

,

144A,

3.625

%

,

10/01/31

United

States

5,700,000

$

4,353,090

7,087,484

IT

Services

0.9%

g

Cablevision

Lightpath

LLC

,

Senior

Secured

Note

,

144A,

3.875

%

,

9/15/27

...........................................

United

States

9,200,000

7,834,300

g

Gartner,

Inc.

,

Senior

Note,

144A,

4.5%,

7/01/28

.......................

United

States

7,000,000

6,501,215

Senior

Note,

144A,

3.625%,

6/15/29

.....................

United

States

2,200,000

1,874,664

g

Presidio

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

2/01/27

United

States

11,000,000

10,171,645

26,381,824

Machinery

0.1%

Parker-Hannifin

Corp.

,

Senior

Note

,

4.25

%

,

9/15/27

...........

United

States

3,700,000

3,508,051

Marine

0.4%

g

ICTSI

Treasury

BV

,

Senior

Bond

,

Reg

S,

4.625

%

,

1/16/23

.......

Philippines

12,000,000

11,953,800

Media

2.1%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond

,

2.8

%

,

4/01/31

.......

United

States

15,900,000

12,072,542

g

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

5,200,000

4,254,666

Senior

Note,

144A,

7.5%,

6/01/29

.......................

United

States

3,500,000

2,759,750

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

2,400,000

2,164,476

g

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

4,300,000

3,880,556

g

DISH

DBS

Corp.

,

Senior

Secured

Note

,

144A,

5.75

%

,

12/01/28

...

United

States

10,300,000

8,323,688

Fox

Corp.

,

Senior

Bond

,

3.5

%

,

4/08/30

.....................

United

States

1,400,000

1,188,395

g

Outfront

Media

Capital

LLC

/

Outfront

Media

Capital

Corp.

,

Senior

Note

,

144A,

5

%

,

8/15/27

..............................

United

States

800,000

721,584

g

Sinclair

Television

Group,

Inc.

,

Senior

Bond,

144A,

5.5%,

3/01/30

.......................

United

States

1,900,000

1,423,442

Senior

Secured

Note,

144A,

4.125%,

12/01/30

.............

United

States

7,600,000

5,871,304

g

Sirius

XM

Radio,

Inc.

,

Senior

Note

,

144A,

4

%

,

7/15/28

.........

United

States

9,000,000

7,751,585

g

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

5.125

%

,

2/15/25

.....................................

United

States

10,000,000

9,679,100

60,091,088

Metals

&

Mining

0.5%

g

Constellium

SE

,

Senior

Note

,

144A,

3.75

%

,

4/15/29

...........

United

States

9,200,000

7,206,038

g

Novelis

Corp.

,

Senior

Note

,

144A,

3.25

%

,

11/15/26

............

United

States

1,700,000

1,492,263

g

SunCoke

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/30/29

United

States

6,100,000

5,011,211

13,709,512

Multiline

Retail

0.0%

b,e,g

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

12/31/22

.......................................

South

Africa

10,914,248

—

b,e,g

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

......................................

South

Africa

4,807,777

—

—

Multi-Utilities

0.3%

Dominion

Energy,

Inc.

,

A,

Senior

Note,

4.35%,

8/15/32

.........................

United

States

3,200,000

2,887,775

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Multi-Utilities

(continued)

Dominion

Energy,

Inc.,

(continued)

C,

Senior

Note,

3.375%,

4/01/30

........................

United

States

7,800,000

$

6,701,731

9,589,506

Oil,

Gas

&

Consumable

Fuels

4.2%

g

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

..............

Norway

8,700,000

6,845,777

g

Antero

Resources

Corp.

,

Senior

Note

,

144A,

7.625

%

,

2/01/29

....

United

States

1,269,000

1,296,245

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

2.95

%

,

7/15/30

..

Canada

3,700,000

3,038,771

g

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp.

,

Senior

Note

,

144A,

6

%

,

2/01/29

....................

United

States

7,000,000

6,561,730

g

CrownRock

LP

/

CrownRock

Finance,

Inc.

,

Senior

Note

,

144A,

5

%

,

5/01/29

...........................................

United

States

3,100,000

2,820,553

g

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

4.375

%

,

6/15/31

.......

United

States

4,600,000

3,887,023

g

Endeavor

Energy

Resources

LP

/

EER

Finance,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

1/30/28

.................................

United

States

8,700,000

8,471,529

Energy

Transfer

LP

,

Senior

Bond

,

3.75

%

,

5/15/30

.............

United

States

7,300,000

6,213,222

EnLink

Midstream

LLC

,

Senior

Bond,

5.375%,

6/01/29

..........................

United

States

10,900,000

10,079,012

g

Senior

Note,

144A,

5.625%,

1/15/28

.....................

United

States

1,700,000

1,631,821

g

EQM

Midstream

Partners

LP

,

Senior

Note

,

144A,

7.5

%

,

6/01/27

..

United

States

800,000

790,940

g

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond,

144A,

6%,

2/01/31

........................

United

States

6,500,000

5,922,670

Senior

Bond,

144A,

6.25%,

4/15/32

......................

United

States

1,700,000

1,561,450

Senior

Note,

144A,

5.75%,

2/01/29

......................

United

States

2,000,000

1,834,550

g

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

........

United

States

5,000,000

4,696,717

g

Martin

Midstream

Partners

LP

/

Martin

Midstream

Finance

Corp.

,

Secured

Note

,

144A,

11.5

%

,

2/28/25

.....................

United

States

16,387,122

15,980,148

MPLX

LP

,

Senior

Note

,

2.65

%

,

8/15/30

.....................

United

States

15,000,000

11,825,301

Occidental

Petroleum

Corp.

,

Senior

Bond

,

8.875

%

,

7/15/30

......

United

States

6,800,000

7,726,534

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Note

,

4.5

%

,

5/15/30

United

States

10,000,000

9,130,286

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note

,

4.5

%

,

5/15/29

..

United

States

12,000,000

10,335,900

g

Venture

Global

Calcasieu

Pass

LLC

,

Senior

Secured

Bond

,

144A,

4.125

%

,

8/15/31

.....................................

United

States

2,600,000

2,223,039

122,873,218

Paper

&

Forest

Products

0.4%

g

Glatfelter

Corp.

,

Senior

Note

,

144A,

4.75

%

,

11/15/29

...........

United

States

4,300,000

2,775,586

Suzano

Austria

GmbH

,

Senior

Bond,

3.75%,

1/15/31

...........................

Brazil

7,100,000

5,697,679

DM3N,

Senior

Bond,

3.125%,

1/15/32

....................

Brazil

4,400,000

3,255,164

11,728,429

Personal

Products

0.3%

g

Oriflame

Investment

Holding

plc

,

Senior

Secured

Note

,

144A,

5.125

%

,

5/04/26

.....................................

Switzerland

9,600,000

5,793,600

g

Prestige

Brands,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

4/01/31

.......

United

States

1,900,000

1,527,932

7,321,532

Pharmaceuticals

1.2%

g

1375209

BC

Ltd.

,

Senior

Secured

Note

,

144A,

9

%

,

1/30/28

......

Canada

602,000

585,445

g

Bausch

Health

Cos.,

Inc.

,

Secured

Note,

144A,

14%,

10/15/30

.....................

United

States

210,000

121,275

Senior

Secured

Note,

144A,

6.125%,

2/01/27

..............

United

States

1,500,000

988,756

Senior

Secured

Note,

144A,

4.875%,

6/01/28

..............

United

States

6,300,000

3,872,137

Senior

Secured

Note,

144A,

11%,

9/30/28

.................

United

States

1,067,000

826,925

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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)

Pharmaceuticals

(continued)

g

Bayer

US

Finance

II

LLC

,

Senior

Bond

,

144A,

4.375

%

,

12/15/28

..

Germany

11,700,000

$

10,660,849

g,i

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco,

Inc.

,

Secured

Note

,

144A,

9.5

%

,

7/31/27

.................................

United

States

6,580,000

764,925

g

Organon

&

Co.

/

Organon

Foreign

Debt

Co-Issuer

BV

,

Senior

Secured

Note

,

144A,

4.125

%

,

4/30/28

....................

United

States

5,000,000

4,413,675

Royalty

Pharma

plc

,

Senior

Bond

,

3.3

%

,

9/02/40

..............

United

States

5,300,000

3,532,202

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

5.125

%

,

5/09/29

.....................................

Israel

9,100,000

7,831,096

33,597,285

Real

Estate

Management

&

Development

0.5%

g

China

Overseas

Finance

Cayman

VI

Ltd.

,

Senior

Bond

,

Reg

S,

5.95

%

,

5/08/24

.....................................

China

4,000,000

3,984,258

g

Country

Garden

Holdings

Co.

Ltd.

,

Senior

Secured

Note

,

Reg

S,

7.25

%

,

4/08/26

.....................................

China

9,900,000

973,017

g

Howard

Hughes

Corp.

(The)

,

Senior

Note

,

144A,

5.375

%

,

8/01/28

.

United

States

8,000,000

6,863,392

g

Vivion

Investments

SARL

,

Senior

Note

,

Reg

S,

3

%

,

8/08/24

.....

Luxembourg

1,800,000

EUR

1,531,792

13,352,459

Road

&

Rail

0.2%

CSX

Corp.

,

Senior

Bond

,

4.1

%

,

3/15/44

....................

United

States

1,600,000

1,263,160

g

First

Student

Bidco,

Inc.

/

First

Transit

Parent,

Inc.

,

Senior

Secured

Note

,

144A,

4

%

,

7/31/29

..............................

United

States

6,500,000

5,297,500

6,560,660

Software

0.5%

g

Condor

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

...

United

States

7,300,000

6,049,717

g

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

10,000,000

8,006,650

14,056,367

Specialty

Retail

0.7%

AutoNation,

Inc.

,

Senior

Bond

,

4.75

%

,

6/01/30

...............

United

States

1,900,000

1,638,220

g

Lithia

Motors,

Inc.

,

Senior

Bond,

144A,

4.375%,

1/15/31

.....................

United

States

3,400,000

2,765,781

Senior

Note,

144A,

3.875%,

6/01/29

.....................

United

States

2,400,000

1,940,340

g

Michaels

Cos.,

Inc.

(The)

,

Senior

Note,

144A,

7.875%,

5/01/29

.....................

United

States

6,100,000

3,417,098

Senior

Secured

Note,

144A,

5.25%,

5/01/28

...............

United

States

4,700,000

3,349,079

g

Park

River

Holdings,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

8/01/29

....

United

States

9,000,000

5,933,192

19,043,710

Technology

Hardware,

Storage

&

Peripherals

0.1%

Teledyne

FLIR

LLC

,

Senior

Note

,

2.5

%

,

8/01/30

..............

United

States

2,100,000

1,639,251

Thrifts

&

Mortgage

Finance

0.5%

g

BPCE

SA

,

Senior

Note

,

144A,

2.045%

to

10/18/26,

FRN

thereafter

,

10/19/27

..........................................

France

7,900,000

6,566,571

g

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp.

,

Senior

Note

,

144A,

4.75

%

,

6/15/29

.................

United

States

10,000,000

7,983,233

14,549,804

Tobacco

0.5%

Altria

Group,

Inc.

,

Senior

Bond

,

3.4

%

,

5/06/30

................

United

States

12,400,000

10,060,454

g

Imperial

Brands

Finance

plc

,

Senior

Bond,

144A,

4.25%,

7/21/25

......................

United

Kingdom

2,800,000

2,662,142

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Tobacco

(continued)

g

Imperial

Brands

Finance

plc,

(continued)

Senior

Bond,

144A,

3.875%,

7/26/29

.....................

United

Kingdom

2,200,000

$

1,849,753

14,572,349

Trading

Companies

&

Distributors

0.7%

g

H&E

Equipment

Services,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

12/15/28

United

States

12,200,000

10,324,067

g

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

5.5

%

,

7/15/27

..........

United

States

5,300,000

5,023,234

g

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.25

%

,

6/15/28

....

United

States

5,500,000

5,587,477

20,934,778

Transportation

Infrastructure

0.0%

†

g

Rutas

2

and

7

Finance

Ltd.

,

Senior

Secured

Bond

,

144A,

Zero

Cpn.,

9/30/36

...........................................

United

States

1,120,000

670,651

Wireless

Telecommunication

Services

0.6%

g

America

Movil

SAB

de

CV

,

Senior

Bond

,

144A,

5.375

%

,

4/04/32

..

Mexico

4,400,000

3,734,302

e,g

Digicel

Group

Holdings

Ltd.

,

Senior

Note

,

144A,

PIK,

8

%

,

4/01/25

.

Bermuda

146,354

44,992

T-Mobile

USA,

Inc.

,

Senior

Bond,

3.3%,

2/15/51

............................

United

States

4,800,000

3,086,859

Senior

Note,

3.875%,

4/15/30

..........................

United

States

13,400,000

11,865,006

18,731,159

Total

Corporate

Bonds

(Cost

$1,534,299,479)

...................................

1,262,717,971

j

Senior

Floating

Rate

Interests

0.0%

Software

0.0%

b,c,i,k

WorkCapital

BSD

SARL

,

Term

Loan

,

(

1-month

SOFR

),

11/02/22

..

Luxembourg

20,000,000

—

Total

Senior

Floating

Rate

Interests

(Cost

$19,530,078)

..........................

—

l

Marketplace

Loans

2.6%

b

Diversified

Financial

Services

2.6%

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$80,904,694)

....................................

75,310,374

Foreign

Government

and

Agency

Securities

5.5%

g

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

m

13,600,000

10,767,664

g

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

m

11,500,000

10,177,500

Colombia

Government

Bond

,

Senior

Bond,

3.875%,

4/25/27

..........................

Colombia

14,000,000

11,697,651

Senior

Bond,

9.85%,

6/28/27

...........................

Colombia

55,750,000,000

COP

9,803,534

g

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

9,500,000

7,063,002

g

Dominican

Republic

Government

Bond

,

Senior

Note

,

144A,

8.9

%

,

2/15/23

...........................................

Dominican

Republic

838,300,000

DOP

15,440,165

Ecopetrol

SA

,

Senior

Bond,

4.125%,

1/16/25

..........................

Colombia

3,800,000

3,507,807

Senior

Bond,

4.625%,

11/02/31

.........................

Colombia

4,400,000

3,041,511

f,g

Electricite

de

France

SA

,

Junior

Sub.

Bond

,

144A,

5.25%

to

1/28/23,

FRN

thereafter

,

Perpetual

.............................

France

24,000,000

22,596,591

g

Export-Import

Bank

of

India

,

Senior

Bond

,

144A,

3.875

%

,

2/01/28

.

India

16,000,000

14,253,100

g

Gabon

Government

Bond

,

Senior

Bond

,

144A,

6.625

%

,

2/06/31

..

Gabon

3,900,000

2,753,010

g

Indonesia

Asahan

Aluminium

Persero

PT

,

Senior

Bond

,

144A,

5.45

%

,

5/15/30

.....................................

Indonesia

13,800,000

12,116,283

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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

Foreign

Government

and

Agency

Securities

(continued)

g

Indonesia

Government

Bond

,

Senior

Bond

,

144A,

3.85

%

,

7/18/27

.

Indonesia

12,000,000

$

11,249,284

g

Iraq

Government

Bond

,

Senior

Bond

,

144A,

5.8

%

,

1/15/28

......

Iraq

3,162,500

2,699,323

g

Israel

Electric

Corp.

Ltd.

,

Senior

Secured

Bond

,

144A,

Reg

S,

4.25

%

,

8/14/28

...........................................

Israel

7,900,000

7,227,892

g

Korea

Electric

Power

Corp.

,

Senior

Note

,

144A,

5.375

%

,

4/06/26

.

South

Korea

3,400,000

3,369,735

Peru

Government

Bond

,

Senior

Bond

,

6.55

%

,

3/14/37

..........

Peru

8,600,000

8,631,209

g

Romania

Government

Bond

,

Senior

Bond

,

144A,

6.125

%

,

1/22/44

.

Romania

4,700,000

3,780,403

Total

Foreign

Government

and

Agency

Securities

(Cost

$199,867,641)

............

160,175,664

U.S.

Government

and

Agency

Securities

18.8%

U.S.

Treasury

Bonds

,

7.125%,

2/15/23

.....................................

United

States

3,000,000

3,024,563

6.25%,

8/15/23

.....................................

United

States

4,000,000

4,048,593

6.875%,

8/15/25

.....................................

United

States

1,000,000

1,062,422

3.25%,

5/15/42

.....................................

United

States

6,600,000

5,582,156

3.75%,

11/15/43

.....................................

United

States

6,600,000

5,963,719

3%,

11/15/44

.......................................

United

States

19,000,000

15,040,801

3%,

2/15/47

........................................

United

States

17,600,000

13,852,781

3.125%,

5/15/48

.....................................

United

States

16,000,000

12,988,437

3.375%,

11/15/48

....................................

United

States

11,300,000

9,659,072

2.875%,

5/15/49

.....................................

United

States

17,000,000

13,248,379

U.S.

Treasury

Notes

,

1.625%,

11/15/22

....................................

United

States

29,800,000

29,782,054

2.75%,

2/15/24

.....................................

United

States

73,700,000

71,952,504

3%,

6/30/24

........................................

United

States

63,000,000

61,365,938

2.625%,

3/31/25

.....................................

United

States

66,300,000

63,596,203

2.875%,

4/30/25

.....................................

United

States

32,500,000

31,290,137

4.25%,

10/15/25

.....................................

United

States

31,000,000

30,837,734

n

Index

Linked,

0.625%,

1/15/26

..........................

United

States

27,000,000

32,462,485

2.125%,

5/31/26

.....................................

United

States

39,800,000

36,838,320

2.375%,

5/15/27

.....................................

United

States

48,200,000

44,394,836

3.125%,

11/15/28

....................................

United

States

37,000,000

34,782,890

3.25%,

6/30/29

.....................................

United

States

20,000,000

18,889,062

2.75%,

8/15/32

.....................................

United

States

6,600,000

5,907,000

Total

U.S.

Government

and

Agency

Securities

(Cost

$584,172,006)

................

546,570,086

Asset-Backed

Securities

6.2%

Airlines

0.0%

†

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

.

..

United

States

914,400

849,854

Commercial

Services

&

Supplies

0.1%

g,k

Galaxy

XXVIII

CLO

Ltd.

,

2018-28A

,

C

,

144A,

FRN

,

6.029

%

,

(

3-month

USD

LIBOR

+

1.95

%

),

7/15/31

.

..................

United

States

3,070,000

2,834,048

Diversified

Financial

Services

6.1%

g,k

AMMC

CLO

XI

Ltd.

,

2012-11A

,

CR2

,

144A,

FRN

,

6.315

%

,

(

3-month

USD

LIBOR

+

1.9

%

),

4/30/31

.

..........................

United

States

1,000,000

907,028

g,k

Antares

CLO

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

5.893

%

,

(

3-month

USD

LIBOR

+

1.65

%

),

4/20/31

.

.............................

United

States

17,500,000

16,406,565

g,k

BCC

Middle

Market

CLO

LLC

,

2018-1A

,

A2

,

144A,

FRN

,

6.393

%

,

(

3-month

USD

LIBOR

+

2.15

%

),

10/20/30

.

.................

United

States

6,300,000

5,871,291

g,k

BlueMountain

CLO

Ltd.

,

2014-2A,

CR2,

144A,

FRN,

6.443%,

(3-month

USD

LIBOR

+

2.2%),

10/20/30

.....................................

United

States

3,800,000

3,444,144

2016-3A,

CR,

144A,

FRN,

5.105%,

(3-month

USD

LIBOR

+

2.2%),

11/15/30

..........................................

United

States

300,000

271,697

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

g,k

BlueMountain

CLO

Ltd.,

(continued)

2018-1A,

D,

144A,

FRN,

7.465%,

(3-month

USD

LIBOR

+

3.05%),

7/30/30

...........................................

United

States

5,000,000

$

4,277,935

g,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

5,658,709

g,k

Burnham

Park

CLO

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

5.743

%

,

(

3-month

USD

LIBOR

+

1.5

%

),

10/20/29

.

..................

United

States

3,500,000

3,310,151

g,k

Buttermilk

Park

CLO

Ltd.

,

2018-1A

,

C

,

144A,

FRN

,

6.179

%

,

(

3-month

USD

LIBOR

+

2.1

%

),

10/15/31

.

..................

United

States

9,730,950

9,025,217

g,k

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2013-3A,

BR,

144A,

FRN,

5.779%,

(3-month

USD

LIBOR

+

1.7%),

10/15/30

..........................................

United

States

300,000

274,010

2014-2RA,

B,

144A,

FRN,

4.73%,

(3-month

USD

LIBOR

+

1.825%),

5/15/31

....................................

United

States

580,000

531,626

2014-4RA,

C,

144A,

FRN,

6.979%,

(3-month

USD

LIBOR

+

2.9%),

7/15/30

...........................................

United

States

3,000,000

2,545,190

g,k

Carlyle

GMS

Finance

MM

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

6.279

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/31

.

...........

United

States

12,000,000

11,207,679

g,o

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2018-29,

PT,

144A,

FRN,

24.676%,

12/15/43

...............

United

States

176,356

166,162

2019-26,

PT,

144A,

FRN,

19.154%,

8/15/44

................

United

States

898,666

849,747

2019-31,

PT,

144A,

FRN,

17.405%,

9/15/44

................

United

States

773,169

721,991

2019-37,

PT,

144A,

FRN,

18.873%,

10/17/44

...............

United

States

896,989

836,382

2019-42,

PT,

144A,

FRN,

17.521%,

11/15/44

...............

United

States

890,552

838,721

2019-51,

PT,

144A,

FRN,

15.516%,

1/15/45

................

United

States

992,528

937,857

2019-52,

PT,

144A,

FRN,

16.2%,

1/15/45

..................

United

States

1,047,806

998,304

2019-S1,

PT,

144A,

FRN,

15.545%,

4/15/44

................

United

States

325,873

305,094

2019-S2,

PT,

144A,

FRN,

14.644%,

5/16/44

................

United

States

293,481

272,777

2019-S3,

PT,

144A,

FRN,

12.449%,

6/15/44

................

United

States

455,762

425,089

2019-S4,

PT,

144A,

FRN,

12.341%,

8/15/44

................

United

States

633,860

600,968

2019-S5,

PT,

144A,

FRN,

12.756%,

9/15/44

................

United

States

603,653

568,932

2019-S6,

PT,

144A,

FRN,

12.14%,

10/17/44

................

United

States

597,732

556,496

2019-S7,

PT,

144A,

FRN,

11.181%,

12/15/44

...............

United

States

451,430

421,964

2019-S8,

PT,

144A,

FRN,

10.176%,

1/15/45

................

United

States

604,400

565,290

2020-2,

PT,

144A,

FRN,

16.137%,

3/15/45

.................

United

States

1,022,073

968,778

2020-7,

PT,

144A,

FRN,

15.32%,

4/17/45

..................

United

States

597,900

559,457

g,k

Dryden

75

CLO

Ltd.

,

2019-75A

,

AR2

,

144A,

FRN

,

5.119

%

,

(

3-month

USD

LIBOR

+

1.04

%

),

4/15/34

.

.........................

United

States

30,321,000

28,884,433

g

Home

Partners

of

America

Trust

,

2021-2,

B,

144A,

2.302%,

12/17/26

......................

United

States

12,044,329

10,333,928

2021-3,

B,

144A,

2.649%,

1/17/41

.......................

United

States

4,458,838

3,788,625

g,k

LCM

XVII

LP

,

17A

,

BRR

,

144A,

FRN

,

5.679

%

,

(

3-month

USD

LIBOR

+

1.6

%

),

10/15/31

.

...................................

United

States

4,590,000

4,321,624

g,k

LCM

XVIII

LP

,

18A

,

DR

,

144A,

FRN

,

7.043

%

,

(

3-month

USD

LIBOR

+

2.8

%

),

4/20/31

.

....................................

United

States

6,860,000

5,985,707

g,k

Madison

Park

Euro

Funding

VIII

DAC

,

8A

,

BRN

,

144A,

FRN

,

3.078

%

,

(

3-month

EURIBOR

+

1.7

%

),

4/15/32

.

..............

Ireland

4,100,000

EUR

3,752,739

g,k

Neuberger

Berman

CLO

XXII

Ltd.

,

2016-22A

,

CR

,

144A,

FRN

,

6.279

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/17/30

.

...........

United

States

2,129,630

1,997,718

g,k

Northwoods

Capital

Ltd.

,

2018-11BA

,

A1

,

144A,

FRN

,

5.327

%

,

(

3-month

USD

LIBOR

+

1.1

%

),

4/19/31

.

...................

United

States

7,565,193

7,416,981

g,k

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

6.125

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

10/24/30

.

...........

United

States

3,914,730

3,761,709

g,k

Octagon

Investment

Partners

36

Ltd.

,

2018-1A

,

A1

,

144A,

FRN

,

5.049

%

,

(

3-month

USD

LIBOR

+

0.97

%

),

4/15/31

.

...........

United

States

7,475,000

7,310,410

g,o

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

18.702%,

3/15/26

................

United

States

574,630

568,371

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

g,o

Prosper

Pass-Thru

Trust

III,

(continued)

2020-PT2,

A,

144A,

FRN,

15.782%,

4/15/26

................

United

States

688,944

$

662,975

2020-PT3,

A,

144A,

FRN,

13.165%,

5/15/26

................

United

States

198,653

189,012

g,k

Strata

CLO

I

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

6.279

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

1/15/31

.

..............................

United

States

14,100,000

13,890,747

g,o

Upgrade

Master

Pass-Thru

Trust

,

2019-PT1,

A,

144A,

FRN,

12.02%,

6/15/25

.................

United

States

205,596

183,775

2019-PT2,

A,

144A,

FRN,

15.089%,

2/15/26

................

United

States

507,962

500,534

g,k

Voya

CLO

Ltd.

,

2013-2A,

A2AR,

144A,

FRN,

5.722%,

(3-month

SOFR

+

1.662%),

4/25/31

...........................................

United

States

2,200,000

2,099,404

2013-2A,

BR,

144A,

FRN,

6.172%,

(3-month

SOFR

+

2.112%),

4/25/31

...........................................

United

States

5,770,000

5,359,271

2016-1A,

BR,

144A,

FRN,

6.025%,

(3-month

SOFR

+

2.062%),

1/20/31

...........................................

United

States

590,000

544,216

175,877,430

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$193,247,627)

..............................

179,561,332

Commercial

Mortgage-Backed

Securities

0.6%

Diversified

Financial

Services

0.6%

g,k

BX

Commercial

Mortgage

Trust

,

2021-VOLT,

A,

144A,

FRN,

4.112%,

(1-month

USD

LIBOR

+

0.7%),

9/15/36

......................................

United

States

2,480,000

2,360,085

2021-VOLT,

B,

144A,

FRN,

4.362%,

(1-month

USD

LIBOR

+

0.95%),

9/15/36

.....................................

United

States

3,890,000

3,661,516

2022-LP2,

A,

144A,

FRN,

4.389%,

(1-month

SOFR

+

1.013%),

2/15/39

...........................................

United

States

8,777,955

8,390,206

o

Commercial

Mortgage

Trust

,

2006-GG7

,

AJ

,

FRN

,

6.012

%

,

7/10/38

United

States

2,336,688

1,635,682

16,047,489

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$17,361,987)

................

16,047,489

Mortgage-Backed

Securities

6.2%

p

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

9,045

8,783

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

5.3%

FHLMC

Gold

Pool,

20

Year,

5%,

5/01/27

-

5/01/30

.............

United

States

131,930

130,284

FHLMC

Gold

Pool,

30

Year,

4.5%,

10/01/40

.................

United

States

46,173

44,651

FHLMC

Gold

Pool,

30

Year,

5%,

3/01/34

-

2/01/38

.............

United

States

274,401

271,597

FHLMC

Gold

Pool,

30

Year,

5.5%,

6/01/33

-

6/01/36

...........

United

States

394,314

399,125

FHLMC

Gold

Pool,

30

Year,

6%,

6/01/33

-

6/01/37

.............

United

States

165,494

167,771

FHLMC

Gold

Pool,

30

Year,

6.5%,

12/01/25

-

6/01/36

..........

United

States

43,143

44,582

FHLMC

Gold

Pool,

30

Year,

7%,

5/01/28

-

8/01/32

.............

United

States

7,783

7,840

FHLMC

Gold

Pool,

30

Year,

7.5%,

1/01/26

-

1/01/31

...........

United

States

2,190

2,287

FHLMC

Gold

Pool,

30

Year,

8%,

11/01/25

...................

United

States

26

26

FHLMC

Gold

Pool,

30

Year,

9%,

12/01/24

...................

United

States

18

18

FHLMC

Pool,

30

Year,

2%,

3/01/52

........................

United

States

37,173,390

29,376,897

FHLMC

Pool,

30

Year,

4%,

6/01/52

........................

United

States

39,931,313

36,375,466

FHLMC

Pool,

30

Year,

4.5%,

8/01/52

.......................

United

States

61,562,273

57,857,968

FHLMC

Pool,

30

Year,

5.5%,

11/01/52

......................

United

States

30,080,000

29,786,540

154,465,052

p

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.0%

†

FNMA,

3.391%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/34

..

United

States

48,853

48,317

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.9%

FNMA,

15

Year,

2.5%,

7/01/27

...........................

United

States

78,745

$

75,278

FNMA,

20

Year,

4.5%,

3/01/28

...........................

United

States

22,333

21,223

FNMA,

20

Year,

5%,

9/01/23

-

6/01/31

......................

United

States

168,701

165,011

FNMA,

30

Year,

3%,

9/01/48

-

9/01/51

......................

United

States

17,968,310

15,441,492

FNMA,

30

Year,

4%,

2/01/49

.............................

United

States

9,226,119

8,596,822

FNMA,

30

Year,

4.5%,

2/01/41

...........................

United

States

137,470

133,167

FNMA,

30

Year,

5%,

10/01/35

............................

United

States

323,542

324,181

FNMA,

30

Year,

5.5%,

9/01/33

-

12/01/35

...................

United

States

513,489

518,472

FNMA,

30

Year,

6%,

6/01/34

-

5/01/38

......................

United

States

896,147

908,077

FNMA,

30

Year,

6.5%,

3/01/28

-

10/01/37

...................

United

States

140,099

146,232

FNMA,

30

Year,

7.5%,

10/01/29

...........................

United

States

2,610

2,731

FNMA,

30

Year,

8%,

1/01/25

-

5/01/26

......................

United

States

770

781

26,333,467

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.0%

†

GNMA

I,

30

Year,

8%,

2/15/25

............................

United

States

8

8

GNMA

I,

Single-family,

30

Year,

5%,

6/15/34

-

7/15/34

..........

United

States

48,567

48,302

GNMA

I,

Single-family,

30

Year,

5.5%,

2/15/33

-

6/15/36

........

United

States

181,860

185,405

GNMA

I,

Single-family,

30

Year,

6%,

8/15/36

.................

United

States

10,760

11,246

GNMA

I,

Single-family,

30

Year,

6.5%,

2/15/29

-

3/15/32

........

United

States

3,335

3,433

GNMA

I,

Single-family,

30

Year,

7%,

11/15/27

-

5/15/28

.........

United

States

3,663

3,663

GNMA

I,

Single-family,

30

Year,

7.5%,

9/15/23

-

5/15/27

........

United

States

286

287

GNMA

I,

Single-family,

30

Year,

8%,

7/15/26

-

9/15/27

..........

United

States

1,751

1,761

GNMA

I,

Single-family,

30

Year,

8.5%,

8/15/24

................

United

States

18

18

GNMA

I,

Single-family,

30

Year,

9%,

1/15/25

.................

United

States

39

39

GNMA

I,

Single-family,

30

Year,

9.5%,

6/15/25

................

United

States

187

187

GNMA

II,

Single-family,

30

Year,

5%,

9/20/33

-

11/20/33

.........

United

States

89,033

89,430

GNMA

II,

Single-family,

30

Year,

5.5%,

6/20/34

...............

United

States

46,600

47,837

GNMA

II,

Single-family,

30

Year,

6%,

11/20/34

................

United

States

49,918

52,701

GNMA

II,

Single-family,

30

Year,

6.5%,

7/20/28

-

12/20/31

.......

United

States

29,413

30,016

GNMA

II,

Single-family,

30

Year,

7.5%,

4/20/32

...............

United

States

8,264

8,475

482,808

Total

Mortgage-Backed

Securities

(Cost

$191,812,606)

...........................

181,338,427

Residential

Mortgage-Backed

Securities

5.3%

Diversified

Financial

Services

2.0%

g

BRAVO

Residential

Funding

Trust

,

2019-1,

A1C,

144A,

3.5%,

3/25/58

.......................

United

States

1,446,673

1,409,615

o

2019-2,

A3,

144A,

FRN,

3.5%,

10/25/44

...................

United

States

4,032,066

3,751,937

g,o

CIM

Trust

,

2019-INV1,

A1,

144A,

FRN,

4%,

2/25/49

..................

United

States

1,046,880

1,006,495

2019-INV2,

A3,

144A,

FRN,

4%,

5/25/49

..................

United

States

1,925,470

1,798,512

g,o

COLT

Mortgage

Loan

Trust

,

2022-4

,

A1

,

144A,

FRN

,

4.301

%

,

3/25/67

...........................................

United

States

3,912,226

3,579,956

g,o

J.P.

Morgan

Mortgage

Trust

,

2021-13,

A4,

144A,

FRN,

2.5%,

4/25/52

...................

United

States

13,459,773

11,417,357

2021-15,

A4,

144A,

FRN,

2.5%,

6/25/52

...................

United

States

4,283,696

3,633,679

g,o

Mill

City

Mortgage

Loan

Trust

,

2018-4

,

A1B

,

144A,

FRN

,

3.477

%

,

4/25/66

...........................................

United

States

7,795,772

7,382,563

g,o

OBX

Trust

,

2021-J3

,

A4

,

144A,

FRN

,

2.5

%

,

10/25/51

...........

United

States

2,770,836

2,343,483

g,o

Provident

Funding

Associates

LLP

,

2021-J1

,

A3

,

144A,

FRN

,

2.5

%

,

2/20/49

...........................................

United

States

8,878,690

7,575,639

g,o

Provident

Funding

Mortgage

Trust

,

2019-1

,

A2

,

144A,

FRN

,

3

%

,

12/25/49

..........................................

United

States

1,669,845

1,383,132

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

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

Residential

Mortgage-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

g,o

PSMC

Trust

,

2021-3

,

A3

,

144A,

FRN

,

2.5

%

,

8/25/51

...........

United

States

15,822,632

$

13,500,477

58,782,845

a

a

a

a

a

a

Thrifts

&

Mortgage

Finance

3.3%

k

FHLMC

Structured

Agency

Credit

Risk

Debt

Notes

,

2013-DN2,

M2,

FRN,

7.836%,

(1-month

USD

LIBOR

+

4.25%),

11/25/23

..........................................

United

States

5,323,070

5,407,454

2014-DN2,

M3,

FRN,

7.186%,

(1-month

USD

LIBOR

+

3.6%),

4/25/24

...........................................

United

States

9,625,728

9,731,699

2014-DN3,

M3,

FRN,

7.586%,

(1-month

USD

LIBOR

+

4%),

8/25/24

...........................................

United

States

217,657

217,764

2014-DN4,

M3,

FRN,

8.136%,

(1-month

USD

LIBOR

+

4.55%),

10/25/24

..........................................

United

States

2,250,276

2,273,795

2015-DNA1,

M3,

FRN,

6.886%,

(1-month

USD

LIBOR

+

3.3%),

10/25/27

..........................................

United

States

501,577

505,647

2015-DNA3,

M3,

FRN,

8.286%,

(1-month

USD

LIBOR

+

4.7%),

4/25/28

...........................................

United

States

7,364,590

7,574,767

2016-DNA2,

M3,

FRN,

8.236%,

(1-month

USD

LIBOR

+

4.65%),

10/25/28

..........................................

United

States

6,709,606

6,918,464

k

FNMA

Connecticut

Avenue

Securities

,

2013-C01,

M2,

FRN,

8.836%,

(1-month

USD

LIBOR

+

5.25%),

10/25/23

..........................................

United

States

4,176,179

4,257,866

2014-C01,

M2,

FRN,

7.986%,

(1-month

USD

LIBOR

+

4.4%),

1/25/24

...........................................

United

States

5,573,733

5,642,406

2014-C02,

1M2,

FRN,

6.186%,

(1-month

USD

LIBOR

+

2.6%),

5/25/24

...........................................

United

States

5,159,410

5,145,211

2014-C03,

1M2,

FRN,

6.586%,

(1-month

USD

LIBOR

+

3%),

7/25/24

...........................................

United

States

11,177,260

11,204,628

2014-C03,

2M2,

FRN,

6.486%,

(1-month

USD

LIBOR

+

2.9%),

7/25/24

...........................................

United

States

722,212

723,783

2015-C01,

1M2,

FRN,

7.886%,

(1-month

USD

LIBOR

+

4.3%),

2/25/25

...........................................

United

States

1,562,912

1,590,523

2015-C02,

1M2,

FRN,

7.586%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

5,517,931

5,585,842

2015-C03,

1M2,

FRN,

8.586%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

6,418,508

6,527,968

2016-C01,

1M2,

FRN,

10.336%,

(1-month

USD

LIBOR

+

6.75%),

8/25/28

...........................................

United

States

1,175,708

1,223,231

2016-C02,

1M2,

FRN,

9.586%,

(1-month

USD

LIBOR

+

6%),

9/25/28

...........................................

United

States

9,017,169

9,321,113

2016-C03,

1M2,

FRN,

8.886%,

(1-month

USD

LIBOR

+

5.3%),

10/25/28

..........................................

United

States

6,238,171

6,434,782

2017-C04,

2M2,

FRN,

6.436%,

(1-month

USD

LIBOR

+

2.85%),

11/25/29

..........................................

United

States

4,720,022

4,773,029

95,059,972

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$170,731,788)

................

153,842,817

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

60,000

Total

Escrows

and

Litigation

Trusts

(Cost

$5,707,489)

...........................

60,000

Total

Long

Term

Investments

(Cost

$3,244,362,068)

.............................

2,769,939,594

a

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

Short

Term

Investments

3.2%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.3%

d,q

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.....

United

States

37,963,032

$

37,963,032

Total

Money

Market

Funds

(Cost

$37,963,032)

..................................

37,963,032

Principal

Amount

*

a

a

a

Repurchase

Agreements

1.9%

r

Joint

Repurchase

Agreement,

2.999%,

11/01/22

(Maturity

Value

$54,079,326)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$2,451,416)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$5,045,601)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$46,582,309)

Collateralized

by

U.S.

Government

Agency

Securities,

0.38%

-

5%,

8/25/25

-

8/20/51;

U.S.

Treasury

Bonds,

6.75%,

8/15/26;

and

U.S.

Treasury

Notes,

2%,

8/15/25

(valued

at

$55,158,848)

.........

54,074,822

54,074,822

Total

Repurchase

Agreements

(Cost

$54,074,822)

...............................

54,074,822

Total

Short

Term

Investments

(Cost

$92,037,854

)

................................

92,037,854

a

Total

Investments

(Cost

$3,336,399,922)

98.6%

..................................

$2,861,977,448

Other

Assets,

less

Liabilities

1.4%

.............................................

41,167,185

Net

Assets

100.0%

...........................................................

$2,903,144,633

*

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

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

Perpetual

security

with

no

stated

maturity

date.

g

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

October

31,

2022,

the

aggregate

value

of

these

securities

was

$1,150,304,548,

representing

39.6%

of

net

assets.

h

The

coupon

rate

shown

represents

the

rate

at

period

end.

i

See

Note

7

regarding

credit

risk

and

defaulted

securities.

j

See

Note

1(i)

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

1(g)

regarding

Marketplace

Lending.

See

full

breakdown

of

marketplace

loans

holdings

in

the

table

at

the

end

of

this

schedule.

m

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

n

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(k).

o

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.

p

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).

q

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

r

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Strategic

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

,

At

October

31,

2022,

the

Fund

had

the

following

marketplace

loans

outstanding.

See

Note

1(d).

Description

Principal

Amount

Value

Marketplace

Loans

-

2.6%

Block,

Inc.

4575152.SQ.FTS.B,

Zero

Cpn,

3/30/23

...

$

263

$

242

4575169.SQ.FTS.B,

Zero

Cpn,

3/30/23

...

2,175

1,681

4575478.SQ.FTS.B,

Zero

Cpn,

3/30/23

...

523

366

4578615.SQ.FTS.B,

Zero

Cpn,

4/01/23

...

1,543

618

4579784.SQ.FTS.B,

Zero

Cpn,

4/01/23

...

479

444

4580233.SQ.FTS.B,

Zero

Cpn,

4/01/23

...

1,261

754

4581341.SQ.FTS.B,

Zero

Cpn,

4/02/23

...

14,072

6,746

4581574.SQ.FTS.B,

Zero

Cpn,

4/02/23

...

2,759

488

4583735.SQ.FTS.B,

Zero

Cpn,

4/04/23

...

400

196

4583887.SQ.FTS.B,

Zero

Cpn,

4/04/23

...

319

292

4583983.SQ.FTS.B,

Zero

Cpn,

4/04/23

...

4,591

1,906

4584076.SQ.FTS.B,

Zero

Cpn,

4/04/23

...

955

707

4585288.SQ.FTS.B,

Zero

Cpn,

4/04/23

...

13,554

2,729

4587010.SQ.FTS.B,

Zero

Cpn,

4/05/23

...

1,755

670

4587352.SQ.FTS.B,

Zero

Cpn,

4/05/23

...

1,056

363

4588245.SQ.FTS.B,

Zero

Cpn,

4/05/23

...

3,204

1,548

4589702.SQ.FTS.B,

Zero

Cpn,

4/05/23

...

3,489

797

4590358.SQ.FTS.B,

Zero

Cpn,

4/05/23

...

762

193

4593141.SQ.FTS.B,

Zero

Cpn,

4/06/23

...

1,586

1,315

4598182.SQ.FTS.B,

Zero

Cpn,

4/07/23

...

1,281

286

4598741.SQ.FTS.B,

Zero

Cpn,

4/07/23

...

919

233

4602271.SQ.FTS.B,

Zero

Cpn,

4/08/23

...

291

143

4602285.SQ.FTS.B,

Zero

Cpn,

4/08/23

...

31,712

8,741

4604615.SQ.FTS.B,

Zero

Cpn,

4/09/23

...

13,834

5,883

4604837.SQ.FTS.B,

Zero

Cpn,

4/09/23

...

2,331

1,457

4604886.SQ.FTS.B,

Zero

Cpn,

4/10/23

...

2,273

640

4605120.SQ.FTS.B,

Zero

Cpn,

4/10/23

...

1,319

1,080

4605490.SQ.FTS.B,

Zero

Cpn,

4/10/23

...

2,380

1,383

4605547.SQ.FTS.B,

Zero

Cpn,

4/10/23

...

173

170

4605828.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

155

144

4605898.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

1,415

934

4606045.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

861

786

4606179.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

10,364

1,658

4606224.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

1,394

585

4606319.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

1,028

973

4606335.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

2,103

425

4606392.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

182

147

4606464.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

12,284

7,291

4606877.SQ.FTS.B,

Zero

Cpn,

4/11/23

...

2,888

870

4607515.SQ.FTS.B,

Zero

Cpn,

4/12/23

...

2,870

1,127

4607829.SQ.FTS.B,

Zero

Cpn,

4/12/23

...

90

80

4609496.SQ.FTS.B,

Zero

Cpn,

4/12/23

...

7,626

4,108

4609551.SQ.FTS.B,

Zero

Cpn,

4/12/23

...

5,454

911

4609715.SQ.FTS.B,

Zero

Cpn,

4/12/23

...

8,482

7,783

4610366.SQ.FTS.B,

Zero

Cpn,

4/12/23

...

2,149

1,560

4610443.SQ.FTS.B,

Zero

Cpn,

4/13/23

...

10,147

3,017

4610852.SQ.FTS.B,

Zero

Cpn,

4/13/23

...

308

102

4612120.SQ.FTS.B,

Zero

Cpn,

4/13/23

...

2,123

1,719

4612400.SQ.FTS.B,

Zero

Cpn,

4/13/23

...

710

678

4612920.SQ.FTS.B,

Zero

Cpn,

4/13/23

...

2,172

408

4621133.SQ.FTS.B,

Zero

Cpn,

4/15/23

...

10,957

7,280

4621989.SQ.FTS.B,

Zero

Cpn,

4/15/23

...

365

309

4622639.SQ.FTS.B,

Zero

Cpn,

4/15/23

...

3,183

1,105

4623863.SQ.FTS.B,

Zero

Cpn,

4/16/23

...

4,626

3,849

4624002.SQ.FTS.B,

Zero

Cpn,

4/16/23

...

201

164

4624011.SQ.FTS.B,

Zero

Cpn,

4/16/23

...

200

147

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4624325.SQ.FTS.B,

Zero

Cpn,

4/16/23

...

$

4,039

$

1,517

4624403.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

652

122

4624408.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

77

73

4624869.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

1,786

592

4624932.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

43

41

4625054.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

1,433

609

4625082.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

3,495

2,795

4625127.SQ.FTS.B,

Zero

Cpn,

4/17/23

...

1,382

980

4625798.SQ.FTS.B,

Zero

Cpn,

4/18/23

...

689

358

4626298.SQ.FTS.B,

Zero

Cpn,

4/18/23

...

10,268

1,653

4626510.SQ.FTS.B,

Zero

Cpn,

4/18/23

...

373

192

4626514.SQ.FTS.B,

Zero

Cpn,

4/18/23

...

2,949

2,393

4627586.SQ.FTS.B,

Zero

Cpn,

4/18/23

...

4,624

1,360

4629149.SQ.FTS.B,

Zero

Cpn,

4/19/23

...

6,425

3,305

4629254.SQ.FTS.B,

Zero

Cpn,

4/19/23

...

1,304

1,098

4631402.SQ.FTS.B,

Zero

Cpn,

4/20/23

...

1,805

1,321

4632065.SQ.FTS.B,

Zero

Cpn,

4/20/23

...

817

782

4632596.SQ.FTS.B,

Zero

Cpn,

4/20/23

...

848

334

4632880.SQ.FTS.B,

Zero

Cpn,

4/20/23

...

587

507

4635753.SQ.FTS.B,

Zero

Cpn,

4/21/23

...

11,156

9,392

4636668.SQ.FTS.B,

Zero

Cpn,

4/21/23

...

9,816

2,748

4638157.SQ.FTS.B,

Zero

Cpn,

4/22/23

...

1,188

728

4638466.SQ.FTS.B,

Zero

Cpn,

4/22/23

...

832

797

4640963.SQ.FTS.B,

Zero

Cpn,

4/25/23

...

2,031

1,900

4641713.SQ.FTS.B,

Zero

Cpn,

4/25/23

...

4,462

2,543

4642502.SQ.FTS.B,

Zero

Cpn,

4/25/23

...

1,807

655

4643448.SQ.FTS.B,

Zero

Cpn,

4/25/23

...

69

57

4643723.SQ.FTS.B,

Zero

Cpn,

4/25/23

...

3,442

2,683

4643970.SQ.FTS.B,

Zero

Cpn,

4/26/23

...

2,181

823

4651011.SQ.FTS.B,

Zero

Cpn,

4/28/23

...

839

806

4651931.SQ.FTS.B,

Zero

Cpn,

4/28/23

...

208

131

4654291.SQ.FTS.B,

Zero

Cpn,

4/29/23

...

101

84

4656066.SQ.FTS.B,

Zero

Cpn,

4/29/23

...

7

6

4656958.SQ.FTS.B,

Zero

Cpn,

4/30/23

...

3,368

1,021

4657235.SQ.FTS.B,

Zero

Cpn,

4/30/23

...

368

343

4657373.SQ.FTS.B,

Zero

Cpn,

4/30/23

...

3,122

1,125

4657502.SQ.FTS.B,

Zero

Cpn,

4/30/23

...

176

155

4658038.SQ.FTS.B,

Zero

Cpn,

5/01/23

...

2,942

1,506

4658320.SQ.FTS.B,

Zero

Cpn,

5/01/23

...

6,087

1,884

4659810.SQ.FTS.B,

Zero

Cpn,

5/01/23

...

639

586

4659969.SQ.FTS.B,

Zero

Cpn,

5/01/23

...

785

660

4661015.SQ.FTS.B,

Zero

Cpn,

5/01/23

...

2,307

1,351

4661890.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

3,112

895

4662184.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

2,428

1,352

4662309.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

17,322

8,475

4662910.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

1,974

1,098

4663096.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

27,120

8,194

4663347.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

2,167

1,755

4663916.SQ.FTS.B,

Zero

Cpn,

5/02/23

...

24,742

7,476

4665676.SQ.FTS.B,

Zero

Cpn,

5/03/23

...

4,500

2,095

4666114.SQ.FTS.B,

Zero

Cpn,

5/03/23

...

291

246

4666154.SQ.FTS.B,

Zero

Cpn,

5/03/23

...

1,135

1,034

4666752.SQ.FTS.B,

Zero

Cpn,

5/03/23

...

663

638

4671121.SQ.FTS.B,

Zero

Cpn,

5/04/23

...

5,954

2,264

4675799.SQ.FTS.B,

Zero

Cpn,

5/05/23

...

3,286

690

4676126.SQ.FTS.B,

Zero

Cpn,

5/05/23

...

1,693

1,590

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4677655.SQ.FTS.B,

Zero

Cpn,

5/06/23

...

$

3,453

$

1,252

4677749.SQ.FTS.B,

Zero

Cpn,

5/06/23

...

277

78

4677833.SQ.FTS.B,

Zero

Cpn,

5/06/23

...

1,184

1,158

4677893.SQ.FTS.B,

Zero

Cpn,

5/06/23

...

1,996

658

4681076.SQ.FTS.B,

Zero

Cpn,

5/08/23

...

3,047

2,748

4684185.SQ.FTS.B,

Zero

Cpn,

5/08/23

...

732

558

4689630.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

267

154

4691756.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

7,269

1,591

4692191.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

9,958

5,121

4692642.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

2,370

1,656

4692944.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

220

127

4692982.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

565

209

4693423.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

15,610

9,047

4693941.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

8,872

2,728

4694140.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

1,320

639

4694200.SQ.FTS.B,

Zero

Cpn,

5/09/23

...

1,118

496

4701939.SQ.FTS.B,

Zero

Cpn,

5/10/23

...

1,446

1,112

4704915.SQ.FTS.B,

Zero

Cpn,

5/10/23

...

6,164

5,479

4706450.SQ.FTS.B,

Zero

Cpn,

5/10/23

...

6,009

4,596

4706808.SQ.FTS.B,

Zero

Cpn,

5/10/23

...

5,406

2,791

4707232.SQ.FTS.B,

Zero

Cpn,

5/11/23

...

138

122

4707248.SQ.FTS.B,

Zero

Cpn,

5/11/23

...

641

494

4707269.SQ.FTS.B,

Zero

Cpn,

5/11/23

...

424

409

4707511.SQ.FTS.B,

Zero

Cpn,

5/11/23

...

3,669

2,814

4708881.SQ.FTS.B,

Zero

Cpn,

5/12/23

...

5,605

3,992

4711828.SQ.FTS.B,

Zero

Cpn,

5/12/23

...

3,500

2,588

4713461.SQ.FTS.B,

Zero

Cpn,

5/13/23

...

55

47

4714060.SQ.FTS.B,

Zero

Cpn,

5/13/23

...

1,082

526

4714469.SQ.FTS.B,

Zero

Cpn,

5/14/23

...

828

135

4723373.SQ.FTS.B,

Zero

Cpn,

5/16/23

...

386

374

4728338.SQ.FTS.B,

Zero

Cpn,

5/17/23

...

3,202

2,618

4728592.SQ.FTS.B,

Zero

Cpn,

5/17/23

...

204

199

4729437.SQ.FTS.B,

Zero

Cpn,

5/17/23

...

2,324

1,688

4738688.SQ.FTS.B,

Zero

Cpn,

5/18/23

...

1,226

738

4738753.SQ.FTS.B,

Zero

Cpn,

5/18/23

...

5,742

2,630

4740841.SQ.FTS.B,

Zero

Cpn,

5/18/23

...

3,632

2,976

4741312.SQ.FTS.B,

Zero

Cpn,

5/18/23

...

3,323

2,392

4747188.SQ.FTS.B,

Zero

Cpn,

5/19/23

...

553

184

4750103.SQ.FTS.B,

Zero

Cpn,

5/20/23

...

8,831

5,386

4750298.SQ.FTS.B,

Zero

Cpn,

5/20/23

...

1,313

1,251

4750803.SQ.FTS.B,

Zero

Cpn,

5/21/23

...

3,382

2,460

4751536.SQ.FTS.B,

Zero

Cpn,

5/21/23

...

49

48

4754132.SQ.FTS.B,

Zero

Cpn,

5/22/23

...

2,569

2,243

4754491.SQ.FTS.B,

Zero

Cpn,

5/22/23

...

197

176

4756608.SQ.FTS.B,

Zero

Cpn,

5/22/23

...

7,287

4,192

4761374.SQ.FTS.B,

Zero

Cpn,

5/23/23

...

9

8

4764584.SQ.FTS.B,

Zero

Cpn,

5/23/23

...

523

358

4773604.SQ.FTS.B,

Zero

Cpn,

5/24/23

...

9,605

3,153

4773759.SQ.FTS.B,

Zero

Cpn,

5/24/23

...

461

191

4774144.SQ.FTS.B,

Zero

Cpn,

5/24/23

...

1,844

1,042

4777755.SQ.FTS.B,

Zero

Cpn,

5/24/23

...

561

141

4777853.SQ.FTS.B,

Zero

Cpn,

5/24/23

...

1,895

1,072

4777946.SQ.FTS.B,

Zero

Cpn,

5/24/23

...

1,498

1,400

4779439.SQ.FTS.B,

Zero

Cpn,

5/25/23

...

1,341

485

4779581.SQ.FTS.B,

Zero

Cpn,

5/25/23

...

245

221

4779678.SQ.FTS.B,

Zero

Cpn,

5/25/23

...

4,444

1,970

4782528.SQ.FTS.B,

Zero

Cpn,

5/26/23

...

414

194

4785399.SQ.FTS.B,

Zero

Cpn,

5/27/23

...

300

158

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4786029.SQ.FTS.B,

Zero

Cpn,

5/28/23

...

$

101

$

99

4786214.SQ.FTS.B,

Zero

Cpn,

5/28/23

...

1,598

404

4789370.SQ.FTS.B,

Zero

Cpn,

5/29/23

...

11,262

7,239

4790824.SQ.FTS.B,

Zero

Cpn,

5/29/23

...

3,330

1,464

4792640.SQ.FTS.B,

Zero

Cpn,

5/30/23

...

1,335

1,185

4792978.SQ.FTS.B,

Zero

Cpn,

5/30/23

...

1,951

947

4794760.SQ.FTS.B,

Zero

Cpn,

5/30/23

...

3,766

3,671

4796452.SQ.FTS.B,

Zero

Cpn,

5/30/23

...

2,527

2,114

4796651.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

3,524

1,000

4798801.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

845

791

4798843.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

5,015

3,495

4799719.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

1,287

1,199

4800609.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

1,662

1,458

4807880.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

19,924

13,590

4808500.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

21,297

19,839

4809479.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

26

24

4809809.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

351

261

4809840.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

903

741

4810075.SQ.FTS.B,

Zero

Cpn,

6/03/23

...

2,449

2,098

4811176.SQ.FTS.B,

Zero

Cpn,

6/03/23

...

7,490

6,935

4813403.SQ.FTS.B,

Zero

Cpn,

6/03/23

...

4,862

4,370

4814403.SQ.FTS.B,

Zero

Cpn,

6/04/23

...

8,259

7,715

4815062.SQ.FTS.B,

Zero

Cpn,

6/04/23

...

7,248

6,325

4815617.SQ.FTS.B,

Zero

Cpn,

6/05/23

...

1,372

764

4815646.SQ.FTS.B,

Zero

Cpn,

6/05/23

...

5,300

4,779

4815836.SQ.FTS.B,

Zero

Cpn,

6/05/23

...

5,119

4,736

4816871.SQ.FTS.B,

Zero

Cpn,

6/06/23

...

872

667

4817415.SQ.FTS.B,

Zero

Cpn,

6/06/23

...

218

199

4817437.SQ.FTS.B,

Zero

Cpn,

6/06/23

...

1,415

1,163

4820091.SQ.FTS.B,

Zero

Cpn,

6/07/23

...

4,193

2,205

4820553.SQ.FTS.B,

Zero

Cpn,

6/07/23

...

10,164

2,328

4821781.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

1,546

1,391

4821904.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

796

146

4821908.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

698

389

4822221.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

3,231

2,617

4822253.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

3,204

1,980

4830294.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,175

948

4830320.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,588

1,542

4830906.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

2,196

1,488

4830931.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

256

175

4830936.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,956

1,888

4831001.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

2,649

2,357

4831110.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

962

350

4831201.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

5,687

4,612

4831269.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

2,823

1,358

4831353.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

4,100

3,302

4831650.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

395

383

4831653.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

2,099

704

4831675.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,295

1,174

4831721.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,781

1,627

4831986.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

9,697

6,661

4832127.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

795

732

4832297.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,093

960

4832548.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

10,303

3,828

4833494.SQ.FTS.B,

Zero

Cpn,

6/11/23

...

1,172

1,064

4833520.SQ.FTS.B,

Zero

Cpn,

6/11/23

...

4,974

1,837

4834054.SQ.FTS.B,

Zero

Cpn,

6/12/23

...

1,068

728

4834162.SQ.FTS.B,

Zero

Cpn,

6/12/23

...

388

268

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4837601.SQ.FTS.B,

Zero

Cpn,

6/13/23

...

$

4,396

$

4,106

4837849.SQ.FTS.B,

Zero

Cpn,

6/13/23

...

161

158

4837910.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

3,183

3,131

4838333.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

750

132

4838538.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

5,177

4,837

4838950.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

2,927

2,834

4839102.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

1,596

581

4839768.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

4,040

3,318

4840040.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

2,418

2,225

4841116.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

11,234

3,343

4841767.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

792

778

4842088.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

341

331

4842161.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

669

658

4842324.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

285

266

4842421.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

401

351

4842605.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

4,055

1,138

4842631.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

5,776

2,781

4843200.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

4,028

3,649

4843394.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

587

573

4848370.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

17,060

8,371

4848622.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

2,123

1,957

4848754.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

417

333

4850611.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

137

131

4852345.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

595

559

4857633.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

2,362

1,025

4858139.SQ.FTS.B,

Zero

Cpn,

6/17/23

...

1,071

1,018

4858432.SQ.FTS.B,

Zero

Cpn,

6/17/23

...

2,060

1,995

4859995.SQ.FTS.B,

Zero

Cpn,

6/17/23

...

1,397

1,270

4861461.SQ.FTS.B,

Zero

Cpn,

6/17/23

...

490

329

4862012.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

1,495

1,333

4862034.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

1,199

980

4862074.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

1,728

1,534

4862192.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

11,659

8,805

4862341.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

758

193

4862443.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

7,578

2,778

4862615.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

4,715

3,589

4862769.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

9,459

4,555

4862938.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

691

573

4862998.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

1,298

489

4863011.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

491

354

4863062.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

3,882

968

4863186.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

4,072

2,951

4863238.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

2,993

2,199

4863272.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

342

211

4863359.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

8,199

7,789

4863412.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

11,651

6,276

4863607.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

2,417

2,236

4863925.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

4,583

3,953

4864375.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

619

581

4865141.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

883

349

4865515.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

1,576

630

4866807.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

197

143

4867257.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

1,599

1,212

4867656.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

4,663

4,436

4867843.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

1,033

813

4867903.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

959

834

4868090.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

1,326

1,275

4868203.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

665

651

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4868757.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

$

3,219

$

2,975

4868828.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

4,422

3,833

4868920.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

8,330

7,714

4869171.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

2,092

410

4869512.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

4,948

4,336

4869815.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

7,257

2,304

4871810.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

2,824

2,271

4871837.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,420

569

4871853.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

5,367

5,110

4871894.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

9,675

7,997

4871917.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

460

451

4871993.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,563

1,487

4872022.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

2,378

650

4872027.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

6,904

4,724

4872072.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

3,449

1,309

4872091.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

7,514

7,305

4872437.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,683

676

4872443.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,147

1,051

4872518.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

165

140

4872570.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,861

1,626

4872788.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

216

212

4872983.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

2,517

2,077

4873161.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

4,758

4,577

4873297.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

208

153

4873313.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,652

846

4873405.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

7,298

7,084

4873601.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

2,102

1,540

4874157.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

3,873

2,241

4874257.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

2,438

2,269

4874535.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

977

371

4874544.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

1,809

1,147

4874609.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

6,272

4,621

4874750.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

281

198

4874845.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

3,811

2,728

4874998.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

519

509

4875372.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

3,120

3,056

4875644.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

306

302

4875681.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

11,355

10,558

4875940.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

10,774

7,990

4876174.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

1,034

790

4876226.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

3,623

3,399

4876445.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

264

258

4876467.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

464

451

4876493.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

241

234

4876670.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

3,025

2,554

4876741.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

358

315

4876778.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,106

931

4876827.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

12,965

3,487

4876890.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

510

473

4876933.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

11,333

9,913

4876974.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,159

1,132

4877017.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,513

381

4877057.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

630

366

4877067.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,174

223

4877069.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

493

471

4877095.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

683

663

4877152.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,364

1,249

4877160.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

398

296

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4877161.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

$

1,734

$

1,185

4877248.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

576

394

4877254.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

1,462

941

4877316.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

1,326

1,189

4877394.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

4,239

3,987

4877494.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

1,564

1,523

4877530.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

378

346

4877534.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

1,935

1,435

4877698.SQ.FTS.B,

Zero

Cpn,

6/26/23

...

6,318

5,864

4877943.SQ.FTS.B,

Zero

Cpn,

6/26/23

...

2,582

2,130

4878000.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

2,258

1,974

4878103.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

627

291

4878504.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,475

1,349

4878717.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,890

1,608

4878727.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

442

430

4878787.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

4,067

1,172

4878962.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,964

796

4879027.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,223

1,073

4879124.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

4,788

2,899

4879260.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

7,261

4,184

4879279.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

5,925

5,564

4879371.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,006

691

4879455.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

26,656

19,298

4879583.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

6,395

5,958

4879607.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

12,731

7,119

4879728.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

2,694

929

4879828.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

2,215

1,145

4879944.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

762

683

4880063.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

4,798

1,817

4880161.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,362

1,271

4880228.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

3,648

3,481

4880271.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

5,352

1,809

4880273.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

32,499

12,519

4880279.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

4,316

4,024

4880336.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

3,086

1,989

4880374.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

12,118

10,316

4880560.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,099

1,026

4880603.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,260

1,116

4880642.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

2,063

1,971

4880766.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

4,397

3,621

4880840.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

2,811

2,251

4880881.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

274

114

4881216.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

174

166

4881269.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

538

524

4881332.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,718

1,158

4881387.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

751

674

4881418.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

21,600

20,593

4881595.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,596

1,428

4881625.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,074

340

4881632.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

5,202

861

4881661.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

2,977

2,765

4881866.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

8,898

8,387

4881933.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

502

375

4881955.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

184

181

4881967.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,443

778

4882127.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

35,043

10,875

4882292.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,935

1,510

4882536.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,725

1,650

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4882630.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

$

6,142

$

4,446

4882665.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

3,983

3,292

4885527.SQ.FTS.B,

Zero

Cpn,

6/29/23

...

2,508

2,453

4886544.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

14,041

13,500

4886903.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

2,071

552

4886912.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

2,287

731

4887115.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

2,290

1,905

4887212.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

344

339

4888694.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

5,909

4,095

4888956.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

1,098

1,079

4889117.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

4,729

4,610

4889268.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

700

250

4889279.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

6,234

5,531

4889327.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

2,044

1,836

4889435.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

1,417

1,345

4889574.SQ.FTS.B,

Zero

Cpn,

7/01/23

...

3,363

1,368

4889623.SQ.FTS.B,

Zero

Cpn,

7/01/23

...

4,645

4,389

4889768.SQ.FTS.B,

Zero

Cpn,

7/01/23

...

1,159

388

4889983.SQ.FTS.B,

Zero

Cpn,

7/02/23

...

14,086

11,705

4891202.SQ.FTS.B,

Zero

Cpn,

7/03/23

...

6,555

5,188

4891988.SQ.FTS.B,

Zero

Cpn,

7/03/23

...

738

724

4893066.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

3,265

660

4893104.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

811

597

4893123.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

2,055

1,322

4894101.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

12,955

9,432

4894444.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

1,282

1,011

4894456.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

4,175

2,064

4894507.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

30,874

15,819

4894821.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

2,681

865

4894946.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

929

910

4895085.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

2,804

1,857

4895122.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

305

299

4895125.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

4,868

3,698

4895205.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

344

298

4895222.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

1,287

637

4896484.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

903

328

4896547.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

6,057

2,113

4896736.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

17,228

15,544

4898411.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

4,163

2,317

4898442.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

11

11

4898556.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

2,809

2,547

4898791.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

1,410

1,268

4898852.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

2,213

1,687

4898988.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

195

191

4899015.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

1,035

1,016

4899151.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

3,754

1,960

4899197.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

3,568

3,509

4899522.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

1,070

1,031

4899774.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

1,876

1,807

4902887.SQ.FTS.B,

Zero

Cpn,

7/08/23

...

2,643

1,129

4902907.SQ.FTS.B,

Zero

Cpn,

7/08/23

...

312

284

4903123.SQ.FTS.B,

Zero

Cpn,

7/08/23

...

766

592

4903532.SQ.FTS.B,

Zero

Cpn,

7/09/23

...

833

819

4903700.SQ.FTS.B,

Zero

Cpn,

7/09/23

...

1,038

1,017

4904362.SQ.FTS.B,

Zero

Cpn,

7/10/23

...

3,755

3,573

4905436.SQ.FTS.B,

Zero

Cpn,

7/10/23

...

889

578

4905695.SQ.FTS.B,

Zero

Cpn,

7/10/23

...

1,401

1,349

4905830.SQ.FTS.B,

Zero

Cpn,

7/10/23

...

1,360

1,324

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4905897.SQ.FTS.B,

Zero

Cpn,

7/10/23

...

$

5,480

$

5,337

4906260.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

9,373

8,543

4906979.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

449

423

4907364.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

1,626

588

4908030.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

644

629

4908064.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

26,257

23,833

4908757.SQ.FTS.B,

Zero

Cpn,

7/12/23

...

6,275

5,715

4913000.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

3,026

2,632

4913185.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

10,004

7,574

4913461.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

1,376

1,093

4913780.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

1,031

898

4913824.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

7,571

7,417

4914425.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

2,732

2,496

4916174.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

433

413

4916400.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

991

802

4916628.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

369

360

4916640.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

2,652

1,748

4916673.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

9,163

6,127

4916836.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

1,907

1,539

4922562.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

8,818

4,749

4922742.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

2,586

2,433

4922790.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

619

266

4923082.SQ.FTS.B,

Zero

Cpn,

7/15/23

...

953

934

4923122.SQ.FTS.B,

Zero

Cpn,

7/15/23

...

2,546

2,158

4923335.SQ.FTS.B,

Zero

Cpn,

7/15/23

...

2,973

2,912

4923493.SQ.FTS.B,

Zero

Cpn,

7/15/23

...

148

117

4923524.SQ.FTS.B,

Zero

Cpn,

7/16/23

...

1,799

1,571

4923558.SQ.FTS.B,

Zero

Cpn,

7/16/23

...

2,056

2,017

4923904.SQ.FTS.B,

Zero

Cpn,

7/16/23

...

5,688

5,511

4924138.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

42

41

4924184.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

695

662

4924206.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

10,074

8,781

4924475.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

1,211

818

4924547.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

9,594

8,362

4924642.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

495

313

4924701.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

3,458

3,153

4925329.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

1,389

883

4925376.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

1,040

1,023

4925660.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

708

681

4925730.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

1,142

892

4925959.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

487

478

4926230.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

2,981

1,276

4926287.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

8,231

7,140

4926799.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

734

655

4926854.SQ.FTS.B,

Zero

Cpn,

7/19/23

...

1,174

1,150

4927610.SQ.FTS.B,

Zero

Cpn,

7/19/23

...

1,755

1,695

4927752.SQ.FTS.B,

Zero

Cpn,

7/19/23

...

238

217

4928103.SQ.FTS.B,

Zero

Cpn,

7/19/23

...

1,220

1,126

4928876.SQ.FTS.B,

Zero

Cpn,

7/19/23

...

764

221

4930391.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

1,457

1,324

4931016.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

928

174

4931020.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

10,152

6,811

4931388.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

2,648

2,562

4931731.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

757

745

4931993.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

–

–

4932029.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

439

430

4932773.SQ.FTS.B,

Zero

Cpn,

7/21/23

...

1,716

1,689

4933293.SQ.FTS.B,

Zero

Cpn,

7/21/23

...

3,351

3,188

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4933448.SQ.FTS.B,

Zero

Cpn,

7/21/23

...

$

1,184

$

1,141

4934833.SQ.FTS.B,

Zero

Cpn,

7/21/23

...

5,919

4,557

4934866.SQ.FTS.B,

Zero

Cpn,

7/21/23

...

8,846

5,107

4935090.SQ.FTS.B,

Zero

Cpn,

7/22/23

...

162

148

4935271.SQ.FTS.B,

Zero

Cpn,

7/22/23

...

279

273

4935485.SQ.FTS.B,

Zero

Cpn,

7/22/23

...

2,899

1,309

4935511.SQ.FTS.B,

Zero

Cpn,

7/22/23

...

450

229

4935850.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

4,114

2,556

4935902.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

1,659

1,574

4935921.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

1,792

1,353

4935990.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

1,023

1,005

4936069.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

136

125

4936183.SQ.FTS.B,

Zero

Cpn,

7/24/23

...

1,191

1,128

4937157.SQ.FTS.B,

Zero

Cpn,

7/24/23

...

6,074

5,967

4937490.SQ.FTS.B,

Zero

Cpn,

7/24/23

...

183

179

4938397.SQ.FTS.B,

Zero

Cpn,

7/24/23

...

6,215

6,076

4938836.SQ.FTS.B,

Zero

Cpn,

7/24/23

...

6,841

6,441

4939230.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

1,102

1,079

4939413.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

211

200

4939841.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

1,978

1,937

4940284.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

5,858

4,901

4940438.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

13,109

12,116

4940732.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

911

797

4940746.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

2,502

2,370

4941224.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

4,401

3,656

4941284.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

208

202

4941429.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

2,610

2,416

4941481.SQ.FTS.B,

Zero

Cpn,

7/26/23

...

792

557

4942261.SQ.FTS.B,

Zero

Cpn,

7/26/23

...

968

373

4942359.SQ.FTS.B,

Zero

Cpn,

7/26/23

...

439

430

4943016.SQ.FTS.B,

Zero

Cpn,

7/26/23

...

467

459

4945879.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

429

281

4945932.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

1,714

1,672

4947272.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

1,224

970

4947535.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

2,553

2,418

4947706.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

5,837

5,417

4948736.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

6,155

2,141

4953337.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

18,866

14,446

4953880.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

1,047

966

4953930.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

8,789

4,013

4954105.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

2,531

1,991

4954275.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

1,596

1,567

4955064.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

4,804

4,697

4956346.SQ.FTS.B,

Zero

Cpn,

7/30/23

...

12

12

4956468.SQ.FTS.B,

Zero

Cpn,

7/30/23

...

635

294

4956511.SQ.FTS.B,

Zero

Cpn,

7/30/23

...

1,316

1,271

4957370.SQ.FTS.B,

Zero

Cpn,

7/31/23

...

189

186

4960965.SQ.FTS.B,

Zero

Cpn,

7/31/23

...

2,523

2,422

4961597.SQ.FTS.B,

Zero

Cpn,

7/31/23

...

6,826

4,053

4964044.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

6,488

5,164

4964338.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

1,028

466

4965121.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

618

607

4965154.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

4,828

4,682

4965729.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

1,082

811

4966108.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

5,874

5,771

4966398.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

405

326

4966403.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

1,406

1,133

4967002.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

2,529

2,117

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4967450.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

$

130

$

128

4968287.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

1,338

1,307

4971058.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

4,924

4,023

4971164.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

5,007

4,329

4972020.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

4,566

3,956

4972172.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

1,695

1,300

4972199.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

14,073

13,342

4973052.SQ.FTS.B,

Zero

Cpn,

8/04/23

...

3,769

3,680

4973218.SQ.FTS.B,

Zero

Cpn,

8/04/23

...

82

80

4973656.SQ.FTS.B,

Zero

Cpn,

8/04/23

...

274

266

4974021.SQ.FTS.B,

Zero

Cpn,

8/04/23

...

16,522

16,040

4974878.SQ.FTS.B,

Zero

Cpn,

8/04/23

...

6,399

6,182

4975072.SQ.FTS.B,

Zero

Cpn,

8/05/23

...

1,601

1,527

4975145.SQ.FTS.B,

Zero

Cpn,

8/05/23

...

1,189

1,112

4975322.SQ.FTS.B,

Zero

Cpn,

8/05/23

...

1,106

235

4975342.SQ.FTS.B,

Zero

Cpn,

8/05/23

...

843

824

4975653.SQ.FTS.B,

Zero

Cpn,

8/06/23

...

23,321

9,263

4975870.SQ.FTS.B,

Zero

Cpn,

8/06/23

...

1,203

1,159

4976561.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

2,306

519

4976562.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

299

278

4977066.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

19,340

13,007

4977248.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

23,413

10,521

4977887.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

969

936

4978904.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

208

200

4978982.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

15,493

13,735

4979270.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

1,093

936

4979273.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

4,493

1,904

4979334.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

241

189

4979694.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

7,423

4,355

4980379.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

1,221

896

4980502.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

2,691

2,629

4980579.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

2,422

2,262

4980976.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

3,062

2,863

4981159.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

3,162

983

4981228.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

2,115

2,055

4981276.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

3,892

3,764

4981755.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

3,881

1,630

4981815.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

1,878

1,792

4981981.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

3,183

2,483

4982386.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

3,158

2,956

4983108.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

568

459

4984948.SQ.FTS.B,

Zero

Cpn,

8/10/23

...

1,081

881

4985982.SQ.FTS.B,

Zero

Cpn,

8/10/23

...

1,545

1,513

4986355.SQ.FTS.B,

Zero

Cpn,

8/10/23

...

4,366

3,354

4986800.SQ.FTS.B,

Zero

Cpn,

8/10/23

...

658

645

4987112.SQ.FTS.B,

Zero

Cpn,

8/10/23

...

1,279

1,197

4987213.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

3,392

2,803

4987357.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

300

281

4987414.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

747

712

4987503.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

4,827

4,718

4989295.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

478

348

4989442.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

959

463

4990354.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

1,410

1,385

4990411.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

454

439

4990418.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

25,437

22,317

4990588.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

957

935

4990625.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

1,549

1,323

4990668.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

1,655

1,050

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4990699.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

$

608

$

577

4990781.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

624

396

4991184.SQ.FTS.B,

Zero

Cpn,

8/13/23

...

3,225

3,065

4991262.SQ.FTS.B,

Zero

Cpn,

8/13/23

...

2,924

2,779

4991331.SQ.FTS.B,

Zero

Cpn,

8/13/23

...

717

701

4991437.SQ.FTS.B,

Zero

Cpn,

8/13/23

...

357

332

4992363.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

7,398

6,736

4992796.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

2,147

2,081

4993022.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

87

86

4993039.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

1,281

1,169

4993042.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

3,463

3,389

4993828.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

2,232

2,161

4994011.SQ.FTS.B,

Zero

Cpn,

8/14/23

...

732

719

4994973.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

22

21

4994974.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

966

922

4995008.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

6,011

5,882

4995212.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

50

49

4995235.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

397

390

4995431.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

6,247

1,496

4996413.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

2,214

2,081

5002123.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

1,213

1,145

5003474.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

3,492

3,389

5004424.SQ.FTS.B,

Zero

Cpn,

8/16/23

...

1,906

1,295

5004686.SQ.FTS.B,

Zero

Cpn,

8/16/23

...

1,414

907

5006625.SQ.FTS.B,

Zero

Cpn,

8/16/23

...

1,011

945

5006699.SQ.FTS.B,

Zero

Cpn,

8/16/23

...

369

358

5015714.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

2,156

2,028

5015739.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

2,964

2,861

5015943.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

6,503

5,838

5016072.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

5,619

3,562

5017533.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

779

765

5017858.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

504

495

5018114.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

2,835

2,781

5018400.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

2,461

2,138

5019704.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

22,511

20,165

5020626.SQ.FTS.B,

Zero

Cpn,

8/18/23

...

3,446

3,388

5023148.SQ.FTS.B,

Zero

Cpn,

8/18/23

...

2,235

1,964

5023411.SQ.FTS.B,

Zero

Cpn,

8/18/23

...

852

419

5025721.SQ.FTS.B,

Zero

Cpn,

8/18/23

...

1,800

1,713

5025752.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

6,406

1,129

5025882.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

2,427

1,209

5025902.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

13,271

7,874

5026234.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

1,985

1,728

5026320.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

5,533

5,268

5026383.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

1,284

920

5026712.SQ.FTS.B,

Zero

Cpn,

8/20/23

...

2,308

2,258

5026934.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

2,463

1,261

5027018.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

3,770

3,291

5027186.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

4,249

4,150

5027306.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

1,651

1,532

5027359.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

1,072

1,046

5027373.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

8,844

2,724

5027411.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

696

663

5027541.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

3,170

3,049

5027597.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

685

674

5027663.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

2,754

2,690

5027897.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

1,124

840

5029672.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

579

537

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5029950.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

$

939

$

917

5030021.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

474

349

5030266.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

567

542

5030309.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

838

821

5030365.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

1,937

1,688

5030831.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

5,213

1,329

5031140.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

1,210

1,190

5031253.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

355

336

5031312.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

1,003

977

5031471.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

5,258

2,084

5031503.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

4,124

2,786

5031708.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

1,542

1,508

5031927.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

3,568

3,458

5032478.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

1,402

1,378

5032944.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

320

305

5033014.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

1,248

1,180

5033148.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

471

307

5033157.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

3,383

2,611

5033875.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

549

531

5033958.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

594

579

5034297.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

3,019

2,509

5035300.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

8,628

7,552

5035669.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

3,399

1,197

5035713.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

26,211

25,383

5036110.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

1,372

1,341

5037826.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

2,214

1,801

5037877.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

7,940

7,795

5038445.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

696

681

5038686.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

1,754

1,700

5038904.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

7,541

5,275

5039090.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

38,224

36,226

5040203.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

2,760

2,699

5040879.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

5,366

4,818

5041405.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

1,538

1,499

5041851.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

353

346

5042089.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

461

392

5042100.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

5,223

5,124

5042510.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

2,884

2,317

5042646.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

1,685

1,651

5042757.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

14,226

13,824

5043156.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

706

688

5043273.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

277

273

5043297.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

15,556

12,837

5043542.SQ.FTS.B,

Zero

Cpn,

8/26/23

...

2,852

2,744

5043696.SQ.FTS.B,

Zero

Cpn,

8/26/23

...

1,790

1,753

5044089.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

1,755

1,715

5044176.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

739

489

5044258.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

8,147

7,700

5044404.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

1,869

557

5044794.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

5,731

3,835

5045548.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

224

166

5045662.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

2,040

513

5045690.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

412

402

5045863.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

413

367

5045925.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

636

624

5047314.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

751

312

5047321.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

5,114

4,212

5048071.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

1,406

1,352

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5048173.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

$

2,463

$

2,367

5048246.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

3,359

3,286

5048398.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

10,788

9,348

5048731.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

1,496

1,464

5049681.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

412

323

5049867.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

649

573

5049875.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

1,113

1,070

5049935.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

4,374

3,117

5050391.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

232

174

5050394.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

5,987

5,161

5051201.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

2,647

2,585

5051326.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

1,819

1,647

5051342.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

2,901

2,835

5051453.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

2,787

2,713

5051538.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

695

333

5051850.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

473

465

5051869.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

216

212

5052776.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

251

244

5053860.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

3,580

3,425

5053940.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

602

537

5055994.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

2,152

2,091

5056268.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

1,764

1,727

5056366.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

82

80

5056944.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

1,721

1,611

5057343.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

452

440

5058129.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

1,425

1,389

5058369.SQ.FTS.B,

Zero

Cpn,

9/03/23

...

669

650

5059326.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

13,048

5,304

5059478.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

2,605

2,326

5060578.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

1,340

1,300

5060641.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

18,334

17,127

5060970.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

2,980

2,713

5061190.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

2,879

2,813

5061493.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

2,787

2,594

5061643.SQ.FTS.B,

Zero

Cpn,

9/05/23

...

3,668

3,568

5062120.SQ.FTS.B,

Zero

Cpn,

9/05/23

...

888

738

5062178.SQ.FTS.B,

Zero

Cpn,

9/05/23

...

822

804

5062197.SQ.FTS.B,

Zero

Cpn,

9/05/23

...

578

416

5062300.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

2,129

1,719

5062318.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

478

462

5062340.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

2,237

1,440

5062352.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

456

438

5062512.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

3,648

2,028

5062652.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

4,445

3,053

5062755.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

1,483

1,203

5063620.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

2,343

2,287

5063823.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

556

517

5063860.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

3,771

3,616

5064839.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

2,652

2,357

5065106.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

2,544

1,764

5065174.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

1,448

1,327

5065196.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

12,559

8,441

5065349.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

1,183

825

5065404.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

2,680

653

5065416.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

1,784

1,738

5065689.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

1,267

1,242

5065943.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

1,079

758

5066072.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

878

851

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

37

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5066204.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

$

11,498

$

11,098

5066377.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

7,962

7,767

5066705.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

2,231

2,191

5066901.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

1,115

1,077

5066925.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

1,507

1,455

5067030.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

7,915

7,703

5067225.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

912

752

5067242.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

5,392

4,202

5067365.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

2,081

2,006

5067403.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

6,971

5,473

5067489.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

535

509

5067694.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

4,248

4,024

5067945.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

272

268

5067962.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

1,826

1,531

5068096.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

3,801

3,690

5068158.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

5,084

2,462

5068551.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

21,133

17,218

5068754.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

1,564

1,466

5069050.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

78

76

5069076.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

1,351

1,306

5069292.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

3,705

3,575

5069462.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

8,677

7,344

5069695.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

5,936

5,734

5069952.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

2,608

2,533

5070638.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

2,816

2,595

5070759.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

1,762

1,715

5070900.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

5,960

5,784

5071139.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

15,303

13,722

5071324.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

4,390

4,167

5072967.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,144

871

5073131.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

3,230

2,832

5073332.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

5,530

4,944

5073420.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,427

1,089

5073629.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

6,294

6,129

5073827.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

755

685

5074149.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,666

1,625

5074442.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,909

623

5074517.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

2,003

1,946

5075119.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,963

1,008

5075210.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

2,767

2,704

5075317.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,292

1,257

5075424.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

2,344

1,244

5075477.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

2,167

2,109

5075548.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

5,237

3,680

5075619.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

3,776

3,539

5075923.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

18,514

13,052

5076057.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

1,500

1,466

5076644.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

1,782

1,717

5076760.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

7,767

7,581

5077583.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

3,691

2,836

5077673.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

1,213

1,178

5077727.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

758

730

5077768.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

5,218

3,661

5077855.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

399

369

5077899.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

1,797

1,741

5078291.SQ.FTS.B,

Zero

Cpn,

9/12/23

...

766

747

5078343.SQ.FTS.B,

Zero

Cpn,

9/12/23

...

1,298

1,199

5078514.SQ.FTS.B,

Zero

Cpn,

9/12/23

...

1,624

1,581

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5078751.SQ.FTS.B,

Zero

Cpn,

9/12/23

...

$

366

$

342

5079422.SQ.FTS.B,

Zero

Cpn,

9/13/23

...

7,996

6,308

5080042.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

236

224

5080059.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

3,117

3,027

5080284.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

2,035

1,806

5080376.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

11,990

11,741

5080816.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

3,311

2,342

5080875.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

740

725

5081105.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

6,278

4,647

5081144.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

3,719

3,546

5081227.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

16,826

14,830

5081612.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

1,324

1,063

5081615.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

38

36

5081691.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

3,777

2,957

5081950.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

2,361

2,241

5082283.SQ.FTS.B,

Zero

Cpn,

9/15/23

...

1,733

1,466

5083575.SQ.FTS.B,

Zero

Cpn,

9/15/23

...

302

287

5083873.SQ.FTS.B,

Zero

Cpn,

9/15/23

...

7,700

6,599

5084132.SQ.FTS.B,

Zero

Cpn,

9/15/23

...

27,742

27,069

5084771.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

2,981

1,570

5084823.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

723

681

5084934.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

33,929

18,465

5085337.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

2,766

2,673

5085496.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

309

249

5085736.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

3,386

3,287

5085858.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

891

549

5086206.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

1,985

1,577

5086589.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

16,902

14,690

5088456.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

1,798

1,408

5088565.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

1,559

1,482

5088691.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

846

826

5089238.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

3,518

3,406

5089493.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

7,740

7,313

5089773.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

378

367

5090272.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

4,187

1,941

5090354.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

561

551

5091326.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

3,199

3,049

5091446.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

990

965

5091530.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

838

799

5091720.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

407

310

5092317.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

4,363

2,955

5092421.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

410

395

5092547.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

1,055

1,014

5092982.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

11,240

10,476

5093274.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

950

934

5093775.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

2,218

2,165

5093863.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

10,192

5,624

5093917.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

4,274

3,737

5093999.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

669

654

5094016.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

1,299

1,269

5094158.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

2,190

2,071

5094324.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

2,154

1,002

5094400.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

1,198

1,174

5094427.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

2,310

1,932

5094492.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

916

725

5094518.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

1,525

1,492

5094610.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

5,116

4,939

5094691.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

594

577

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5094697.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

$

242

$

218

5095627.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

3,958

2,489

5095789.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

2,551

2,428

5095917.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

17,638

12,857

5096086.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

941

911

5096101.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

3,758

3,578

5096186.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

260

254

5096206.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

5,196

5,013

5096541.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

408

401

5096555.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

1,551

1,516

5096628.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

4,770

4,540

5096674.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

14,187

7,338

5096827.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

486

460

5096836.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

232

227

5096951.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

2,134

2,080

5097030.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

5,533

5,391

5097160.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

599

584

5097267.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

438

388

5097281.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

2,674

2,527

5097611.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

1,522

1,437

5097630.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

2,200

2,145

5097697.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

1,838

1,779

5097715.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

611

496

5097942.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

1,284

1,184

5097995.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

5,449

4,766

5098275.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

6,026

3,428

5098348.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

431

422

5098382.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

314

306

5098389.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

9,505

8,809

5098609.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

2,742

2,686

5098757.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

976

929

5098792.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

1,129

1,107

5099157.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

479

471

5099183.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

115

108

5099742.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

1,087

1,063

5099762.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

14,007

13,588

5100108.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

3,475

3,145

5100220.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

10,372

9,633

5100485.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

4,264

2,791

5100653.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

2,122

1,860

5100725.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

2,030

1,987

5100815.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,481

1,268

5100897.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,559

1,520

5101673.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,011

830

5101683.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,266

1,180

5101793.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

2,387

1,962

5101887.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

572

559

5101913.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

2,553

2,197

5101953.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,544

1,164

5102366.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

2,785

2,569

5102418.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

358

341

5102435.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,419

1,385

5102730.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

1,420

1,393

5102756.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

206

193

5104358.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

2,758

2,632

5104437.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

3,422

3,129

5104948.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

8,423

8,230

5105914.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

997

921

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5106104.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

$

1,566

$

1,525

5106328.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

355

339

5106337.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

4,170

3,066

5106538.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

12,022

7,980

5106672.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

337

304

5106724.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

13,058

12,429

5106892.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

1,196

978

5106923.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

2,773

2,695

5107004.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

4,445

4,359

5107353.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

1,383

1,106

5107431.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

8,049

7,827

5107560.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

3,535

3,271

5107683.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,148

1,119

5107774.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,529

1,394

5108302.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,693

1,452

5108447.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

2,137

2,040

5108535.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

2,599

2,316

5108745.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,222

1,193

5108900.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

8,706

8,167

5109145.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,481

1,269

5109191.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

650

632

5109269.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,230

1,202

5109454.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

51,869

27,896

5110097.SQ.FTS.B,

Zero

Cpn,

9/26/23

...

2,796

1,707

5110167.SQ.FTS.B,

Zero

Cpn,

9/26/23

...

1,094

1,068

5110254.SQ.FTS.B,

Zero

Cpn,

9/26/23

...

56

55

5110410.SQ.FTS.B,

Zero

Cpn,

9/26/23

...

2,756

2,692

5110636.SQ.FTS.B,

Zero

Cpn,

9/26/23

...

4,155

2,547

5110725.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

4,063

3,003

5110762.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

866

646

5110779.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

785

769

5110811.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

5,471

4,205

5110983.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

917

897

5111012.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

225

219

5111024.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

4,377

1,782

5111103.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

904

880

5111117.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

730

473

5112318.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

2,800

2,745

5112445.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

1,169

1,080

5112573.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

2,367

2,259

5112638.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

2,528

2,469

5112732.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

557

545

5112955.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

4,811

3,901

5113266.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

1,765

1,691

5113494.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

55

53

5113505.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

2,382

2,318

5114206.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

1,404

949

5114229.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

4,271

4,170

5114611.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

6,067

5,586

5114687.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

780

765

5114930.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

5,312

5,051

5115737.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

2,002

1,947

5116150.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

5,312

4,574

5116448.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

2,527

2,476

5116547.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

2,116

2,072

5116610.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

876

794

5116653.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

444

413

5116662.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

4,803

4,139

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5116874.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

$

1,435

$

1,404

5116990.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

8,940

8,205

5117214.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

708

610

5117238.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

908

889

5117309.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

830

494

5117854.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

1,578

935

5117949.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

1,971

1,921

5118288.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

5,787

5,434

5118372.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

3,300

3,207

5118558.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

1,330

1,301

5118620.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

2,738

2,045

5118686.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

11,392

10,279

5118857.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

606

550

5119023.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

928

908

5119109.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

914

805

5119131.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

3,064

2,053

5119154.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

9,124

5,397

5119221.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

2,837

2,658

5119262.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

478

439

5119267.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

1,999

1,958

5119369.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

5,099

4,953

5119608.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

3,421

2,550

5121599.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

2,416

2,345

5121637.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

47

46

5121651.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

13,468

12,515

5122424.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

1,017

997

5122619.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

418

408

5122643.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

679

512

5122658.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

9,738

9,466

5122968.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

6,012

5,281

5123057.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

9,034

8,643

5123267.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

6,344

5,277

5123471.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

689

675

5124299.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

817

796

5124518.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

11,687

9,303

5126309.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

2,612

2,547

5126438.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

26,209

7,087

5126842.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

491

482

5126889.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

9,721

8,584

5127131.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

2,600

2,538

5127649.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

1,517

1,449

5127713.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

741

593

5127769.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

1,279

1,256

5127847.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

441

340

5127935.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

981

954

5128107.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

10,631

9,620

5128284.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

6,245

5,935

5128413.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

1,332

611

5128523.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

971

926

5128541.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

2,909

2,666

5128593.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

1,363

1,330

5128685.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

302

223

5128805.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

1,778

1,735

5128913.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

834

815

5128974.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

231

227

5129001.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

594

573

5129055.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

4,335

4,134

5129165.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

3,391

3,316

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5129262.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

$

3,165

$

2,435

5130126.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

22

20

5130234.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

6,055

5,762

5130328.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

412

404

5130628.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

7,922

7,608

5130799.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

1,365

1,334

5130982.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

2,694

2,624

5131238.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

6,708

4,941

5131408.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

2,355

2,287

5131540.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

2,459

2,399

5131669.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

22,967

16,784

5131790.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

7,568

7,188

5131875.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

810

295

5131884.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

1,858

1,816

5132006.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

1,273

1,050

5132023.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

1,648

1,429

5132163.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

861

749

5132178.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

263

256

5132203.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

660

642

5132431.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

5,735

5,634

5132753.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

2,914

2,842

5132826.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

176

170

5132902.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

901

869

5132946.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

1,431

1,079

5132957.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

718

490

5132976.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

4,489

4,076

5133917.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

604

564

5134297.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

603

578

5134308.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

3,950

3,587

5134361.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

3,769

3,605

5134478.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

2,306

2,257

5134549.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

1,426

1,366

5135063.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

2,961

2,886

5135101.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

10,041

8,144

5135239.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

701

686

5135710.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

723

518

5135722.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

826

667

5135797.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

4,228

4,149

5136001.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

4,082

3,897

5136023.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

2,761

2,693

5136068.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

8,056

7,778

5136166.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,402

1,343

5136194.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,365

1,265

5136378.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

364

355

5136627.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,117

1,072

5136658.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

505

482

5136667.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

2,395

2,332

5136782.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

194

170

5136863.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,553

448

5136931.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,379

1,340

5136996.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

290

219

5137092.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

855

440

5137109.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

4,845

1,244

5138072.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

4,511

2,310

5138360.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

894

822

5138393.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,913

1,859

5138431.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

648

635

5138741.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,598

1,558

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5138860.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

$

1,437

$

1,029

5138869.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

2,026

1,845

5138917.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

592

507

5139115.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

864

567

5139424.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

15,379

15,054

5141482.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

6,979

6,785

5141701.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

295

228

5141945.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

284

270

5141962.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

2,265

1,546

5142028.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

612

544

5142049.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

983

883

5142085.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

413

406

5142175.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

1,262

1,231

5142327.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

1,492

1,436

5142404.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

1,679

1,643

5142507.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

298

293

5142724.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

2,714

2,644

5142830.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

1,818

1,739

5142915.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

2,312

2,245

5143292.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

1,117

1,092

5143977.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

6,970

6,687

5144849.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

776

762

5145573.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

2,041

1,996

5145760.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

2,810

2,460

5145849.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

56

55

5145947.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

2,070

2,021

5146747.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

1,486

1,444

5147207.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

577

515

5147455.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

947

875

5147486.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

595

579

5147632.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

5,773

5,369

5148014.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

7,047

6,727

5148107.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

5,772

5,046

5148337.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

1,924

1,866

5148379.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

6,689

6,181

5148479.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

2,697

2,635

5148527.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

1,113

1,089

5148588.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

8,354

7,852

5148859.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

3,622

3,457

5149144.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

2,220

1,871

5149170.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

719

495

5149269.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

941

497

5149285.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

609

493

5150319.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

3,752

3,660

5150453.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

2,009

1,415

5150470.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

5,886

4,339

5150547.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

12,940

12,180

5150947.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

4,504

4,390

5151046.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

196

192

5151656.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

15,034

14,488

5152221.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

3,018

2,953

5152302.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

2,476

2,382

5152326.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

1,114

1,089

5152396.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

794

763

5152412.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

6,395

6,193

5152519.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

13,993

13,463

5152767.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

4,964

3,543

5152822.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

25,512

17,188

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5152971.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

$

2,756

$

2,641

5153148.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

1,234

1,209

5153190.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

7,119

6,928

5153369.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

12,701

7,531

5153453.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

3,255

3,176

5153611.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

7,848

7,130

5153956.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,957

919

5153988.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,044

1,019

5154015.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,432

2,380

5154100.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

3,389

3,029

5154181.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,162

1,149

5154314.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,780

2,341

5154404.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,735

2,629

5154543.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,772

1,726

5154612.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,321

692

5154724.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

5,264

5,116

5154882.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

654

638

5154907.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,638

2,559

5154987.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

3,044

2,537

5155122.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

528

518

5155148.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

10,793

10,394

5155471.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

12,128

11,892

5156010.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

334

328

5156156.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

8,732

6,511

5156296.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

3,661

3,597

5156782.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,579

1,549

5156973.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,916

1,870

5157001.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

10,303

10,032

5157137.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,033

1,010

5157152.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

6,006

3,861

5157233.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,034

884

5157279.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

11,228

5,884

5157398.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

1,168

1,138

5157821.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

5,573

3,105

5158164.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

425

329

5158290.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

1,417

1,384

5158325.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

3,043

2,959

5158425.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

7,497

7,315

5158706.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

10,576

10,132

5159090.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

5,509

5,375

5159226.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

2,859

2,664

5159258.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

2,347

1,334

5159356.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

9,890

6,419

5159501.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

1,662

1,520

5159523.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

4,940

3,883

5159643.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

1,445

1,198

5159726.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

35,227

32,175

5160236.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

15,777

13,255

5160507.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

802

613

5160522.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

328

312

5160629.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

2,642

2,259

5160651.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

2,565

2,470

5160744.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

23,620

23,062

5162509.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

55,221

26,821

5162955.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

860

788

5163000.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

6,619

5,096

5163155.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

2,767

2,704

5163312.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

12,371

10,470

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

41

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5163509.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

$

4,533

$

4,398

5163616.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

9,746

9,085

5164173.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

193

187

5164174.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

2,129

1,121

5164196.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,992

1,915

5164302.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

954

929

5164324.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

2,981

2,892

5164779.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,217

1,186

5165156.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

3,608

3,196

5165213.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

900

862

5165268.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

859

839

5165378.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

6,251

4,429

5165457.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

2,690

2,606

5165511.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

5,366

5,068

5165652.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,227

1,193

5165754.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,831

1,168

5165875.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,621

1,581

5165986.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,227

1,193

5166227.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

22,113

21,573

5166615.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

2,799

2,735

5166751.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

1,024

1,005

5166870.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

1,373

1,347

5166972.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

15,726

14,694

5167335.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

1,426

1,366

5167455.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

480

440

5167500.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

3,475

3,244

5167604.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

4,653

4,521

5168098.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

436

415

5168563.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

2,344

2,284

5168680.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

1,748

1,671

5168750.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

3,080

2,982

5168842.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

3,032

2,932

5168932.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

707

675

5169673.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

9,350

9,101

5169921.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

170

167

5169928.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

2,076

1,837

5170034.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

7,063

5,381

5170150.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

397

369

5170173.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

22,122

21,418

5170843.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

14,553

8,984

5171068.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

19,368

18,902

5171614.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

306

257

5171656.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

875

262

5171725.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

2,783

2,691

5171759.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

2,636

2,465

5171787.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

597

575

5171798.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

11,152

10,863

5172121.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

7,074

6,852

5172263.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

1,350

1,284

5172281.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

968

945

5172371.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

717

702

5172517.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

3,467

889

5172607.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

1,208

1,040

5172676.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

4,120

3,148

5172726.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

2,328

2,032

5172757.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

2,126

2,081

5172829.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

1,507

1,467

5172857.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

1,520

1,283

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5172879.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

$

601

$

557

5173148.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

1,239

1,206

5173204.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

2,036

1,919

5173238.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

5,417

5,249

5173671.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

177

159

5173697.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

4,850

4,722

5174300.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

6,899

6,453

5175259.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

478

225

5175425.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

583

569

5175826.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

3,737

2,884

5175901.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,803

1,752

5176007.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

197

187

5176106.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

3,207

3,138

5176286.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

936

914

5176343.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

4,685

4,315

5176420.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,939

1,114

5176448.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

5,420

5,251

5176544.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,199

1,173

5176617.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

935

578

5176878.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

716

671

5176935.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,264

764

5177078.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,097

2,015

5177285.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

10,024

9,764

5177710.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

7,638

7,405

5178365.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

4,593

3,254

5178484.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

4,118

3,649

5178540.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,473

1,949

5178621.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,975

2,141

5178744.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,010

1,964

5178888.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,917

2,852

5178958.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,049

1,025

5178983.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

881

786

5179008.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,102

1,914

5179099.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,445

2,385

5179181.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

2,663

2,247

5179241.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

7,070

6,854

5179609.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

13,991

13,588

5180070.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

485

476

5180171.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

2,147

2,070

5180228.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

304

298

5180392.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

1,048

992

5180490.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

266

261

5181779.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

12,445

11,497

5182664.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

831

810

5182752.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

63

62

5183134.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

4,582

4,487

5183886.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

469

461

5184127.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

2,600

2,520

5184333.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

571

557

5184366.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

4,879

4,728

5184597.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

980

953

5184623.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

829

750

5184654.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

2,683

2,380

5184700.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

5,590

4,939

5184893.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

12,056

11,672

5185515.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

2,449

2,375

5185810.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

1,069

1,047

5186377.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

6,078

5,695

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5186818.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

$

933

$

912

5187140.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

1,534

1,423

5187726.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

1,311

1,285

5188076.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

4,279

4,140

5188774.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

2,486

1,430

5188827.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

1,514

1,402

5189475.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

1,045

1,017

5189604.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

6,687

5,924

5189756.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

93

91

5189905.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

6,143

6,015

5190292.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

3,844

3,735

5190391.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

13,322

12,166

5198086.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

46,916

44,014

5202714.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

36,500

27,953

5203664.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

1,950

1,170

5203735.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

6,108

4,479

5203797.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

811

792

5203935.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

1,620

1,412

5204070.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

1,352

1,320

5204240.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

1,136

865

5204798.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

5,697

5,578

5206327.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

3,219

2,985

5206615.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

4,964

4,823

5206948.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

3,761

3,652

5207486.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

990

969

5207544.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

31,878

28,779

5209009.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

1,999

1,928

5209284.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

2,441

2,360

5209644.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

5,880

5,727

5209797.SQ.FTS.B,

Zero

Cpn,

10/23/23

..

903

706

5209815.SQ.FTS.B,

Zero

Cpn,

10/23/23

..

679

630

5209822.SQ.FTS.B,

Zero

Cpn,

10/23/23

..

14,523

14,230

5210519.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

11,522

4,456

5210616.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

1,661

1,420

5210634.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

2,483

2,403

5210691.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

3,043

1,934

5211382.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

1,355

1,208

5211496.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

699

638

5211551.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

255

246

5211795.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

357

350

5211869.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

5,841

4,902

5212836.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

22,801

22,054

5213740.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

2,050

1,988

5213804.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

1,949

1,848

5213875.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

8,754

8,360

5214421.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

513

449

5214428.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

21,092

20,605

5215697.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

30,182

28,877

5216200.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

13,287

13,028

5218386.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

6,941

6,759

5218771.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

16,301

15,299

5219348.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

460

289

5219361.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

4,892

4,457

5219633.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

2,395

2,338

5219771.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

312

300

5219834.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

28,735

28,062

5220877.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

2,833

2,755

5221010.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

1,750

1,692

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5223051.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

$

5,576

$

5,424

5223440.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

6,387

6,206

5223636.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

3,680

2,167

5223661.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

10,197

7,087

5223758.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

802

751

5223785.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

2,395

2,351

5224224.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

7,956

7,775

5224950.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

2,161

2,103

5225012.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

3,182

3,104

5225128.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

7,941

7,545

5230045.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

3,802

3,689

5230330.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

1,386

713

5230521.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

1,219

1,019

5230534.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

1,900

1,840

5230601.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

5,805

4,266

5230738.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

526

501

5230985.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

533

482

5231874.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

1,972

1,888

5231939.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

451

441

5231969.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

846

708

5232009.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

2,216

2,145

5232107.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

2,682

2,541

5232178.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

418

384

5232234.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

762

745

5232317.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

796

778

5232351.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

12,343

11,974

5233083.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

1,255

1,153

5233096.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

755

738

5233666.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

2,903

2,838

5233813.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

5,080

4,967

5234006.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

36,884

24,164

5235183.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,010

635

5235252.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

971

748

5235263.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

619

542

5235289.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

3,560

3,419

5235364.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,280

1,249

5235428.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

2,152

2,111

5235712.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,458

1,079

5235796.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

2,381

2,306

5235905.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

3,866

2,757

5236032.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

2,571

2,511

5237659.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,404

1,360

5237741.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,234

1,206

5237941.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

5,600

4,903

5238462.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,036

981

5238482.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,352

1,318

5238828.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

22,775

16,371

5239241.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,627

1,564

5239271.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

4,669

4,545

5239810.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

420

412

5239828.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

2,289

1,516

5239950.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,207

1,124

5240029.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

7,281

7,060

5240144.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

1,458

1,424

5240174.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

3,526

3,400

5240231.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

5,274

4,937

5240332.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

8,310

8,069

5240469.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

571

558

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5240481.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

$

2,133

$

2,029

5240513.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

1,330

1,298

5240546.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

1,371

464

5240561.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

993

740

5240567.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

4,313

3,866

5240619.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

900

877

5240636.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

3,032

2,904

5240704.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

1,194

1,159

5240793.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

4,437

4,347

5240923.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

7,658

6,573

5241014.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

3,994

3,908

5241173.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

1,310

497

5241187.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

1,135

1,101

5241200.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

5,745

5,573

5241272.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

5,363

5,248

5241432.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

2,107

2,035

5242267.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

3,614

3,425

5242951.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

3,646

3,521

5243178.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,853

1,721

5243381.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,939

1,703

5243401.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

6,849

6,143

5243657.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,821

1,767

5243698.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

2,001

1,964

5243921.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

5,440

5,320

5244124.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

2,197

2,039

5244187.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

6,067

5,818

5244310.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

9,136

8,572

5244523.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

7,463

7,270

5244712.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

9,429

8,280

5244921.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,290

1,176

5245023.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,248

668

5245246.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

4,391

4,218

5245354.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

5,929

5,565

5245503.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

243

238

5245526.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

944

921

5245556.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,221

1,144

5245587.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

4,818

4,649

5245751.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,363

1,270

5245852.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

7,157

6,122

5245998.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

913

641

5246013.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,463

1,280

5246068.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,928

1,880

5246104.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

504

482

5246181.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

6,326

6,111

5246299.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

446

412

5246421.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

17,517

12,496

5246622.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

3,155

3,088

5246866.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

50,082

46,051

5248885.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

2,709

2,644

5249074.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

13,370

12,828

5249481.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

7,136

6,855

5249647.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

3,101

3,017

5249813.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

3,836

3,757

5250058.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

1,112

1,068

5250237.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

2,451

2,380

5250321.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

4,441

4,087

5250909.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

3,040

2,718

5251077.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

1,653

1,623

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5251279.SQ.FTS.B,

Zero

Cpn,

11/03/23

..

$

40,563

$

38,934

5251953.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

1,860

1,096

5252278.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

210

202

5252966.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

2,160

1,771

5253686.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

3,187

2,680

5253966.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

2,255

2,202

5254175.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

16,998

14,512

5255436.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

2,838

2,758

5255589.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

3,547

3,414

5256269.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

729

700

5256291.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

22,613

21,938

5256900.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

1,325

1,083

5256925.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

25,111

15,583

5257274.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

771

563

5257285.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

657

523

5257298.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

9,152

7,968

5257478.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

452

444

5257541.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

7,175

6,172

5257684.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

1,867

1,827

5262347.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

10,729

10,474

5262837.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,297

2,030

5262973.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

725

707

5263059.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

4,256

4,150

5264010.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,612

1,553

5264122.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

9,188

7,986

5264287.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

3,698

3,504

5264439.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,513

1,167

5264599.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

3,276

3,165

5264681.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

19,704

17,373

5265031.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

10,295

10,029

5265357.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,034

1,000

5265506.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

5,282

5,138

5265661.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,839

1,696

5265724.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

7,882

7,587

5265935.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

4,386

4,169

5266078.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,627

1,590

5266319.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,142

2,086

5266384.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,402

992

5266415.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,040

1,983

5266471.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

4,377

4,194

5266604.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

119

117

5266715.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,818

2,651

5266796.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,159

2,104

5266838.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

662

647

5267025.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

77

76

5267196.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

3,238

2,718

5267302.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

298

233

5267314.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

10,332

9,806

5267689.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

9,115

8,861

5268442.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

1,626

1,584

5268607.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

2,056

1,980

5268857.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

1,257

1,229

5269141.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

3,133

2,650

5269783.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

1,778

1,420

5270012.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

2,044

1,980

5270173.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

125

123

5270785.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

601

587

5270817.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

539

515

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5270825.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

$

4,868

$

2,384

5270868.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

4,305

4,192

5270964.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

3,106

2,682

5271062.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

345

338

5271157.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

11,589

11,211

5271506.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

3,137

2,974

5271609.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

22,149

21,670

5272553.SQ.FTS.B,

Zero

Cpn,

11/07/23

..

5,805

5,627

5272771.SQ.FTS.B,

Zero

Cpn,

11/07/23

..

7,161

6,801

5272850.SQ.FTS.B,

Zero

Cpn,

11/07/23

..

4,366

4,266

5273361.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

7,284

7,078

5273532.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

1,913

1,657

5273564.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

12,863

12,350

5273714.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

3,846

2,497

5273737.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

5,174

4,163

5273786.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

5,707

4,187

5273846.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

4,507

3,892

5273909.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

1,755

1,711

5273943.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

1,198

1,168

5274123.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,484

3,395

5274423.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

15,011

14,413

5275676.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

1,612

1,578

5275801.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,279

3,077

5275895.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

2,707

2,617

5275943.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

1,289

1,245

5275977.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

10,463

10,165

5276774.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,264

2,194

5276903.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

738

695

5276911.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

611

597

5276919.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

5,251

4,684

5277019.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

14,024

13,645

5277282.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

1,028

927

5277364.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

2,402

1,300

5277559.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,006

2,949

5278071.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,624

3,507

5278122.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,338

3,245

5278242.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

2,160

2,085

5278307.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,681

3,582

5278379.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,176

2,895

5278415.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

4,276

4,177

5278534.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

13,285

12,936

5278595.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

1,470

1,373

5278900.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

6,189

5,797

5279041.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

9,818

9,439

5279298.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

6,485

6,021

5279482.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

3,572

3,454

5279609.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

2,841

2,747

5280393.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

5,713

5,166

5280553.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

13,459

11,616

5280789.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

965

923

5280864.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

6,443

6,276

5280986.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

1,327

930

5281087.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

421

389

5281096.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

858

765

5281451.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

8,692

8,470

5281609.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

19,377

18,904

5282181.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

5,764

5,416

5282272.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

5,775

5,481

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5282362.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

$

1,185

$

1,162

5282437.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

32,619

30,146

5283277.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

565

538

5283438.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

779

761

5283467.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

7,875

7,703

5284007.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

3,118

2,716

5284064.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

9,767

9,497

5284691.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

8,433

6,416

5284829.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

7,208

7,026

5286795.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

942

907

5286813.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

5,636

4,805

5287039.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

18,931

16,516

5287336.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

6,362

6,056

5287595.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

811

758

5287635.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

3,828

3,656

5287814.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

2,505

2,358

5287841.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

8,908

8,706

5288333.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

901

883

5288483.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,501

924

5288523.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,319

1,190

5288567.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,419

984

5288588.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

66,000

38,998

5289180.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

2,102

2,046

5289252.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,929

1,729

5289293.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

13,828

11,149

5289564.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

4,435

4,113

5289607.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,546

1,328

5289838.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

2,339

2,249

5289917.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

756

255

5289935.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

2,226

2,179

5289989.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

2,075

2,013

5290032.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

26,927

25,302

5290329.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,918

1,870

5290432.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

462

328

5290545.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

574

561

5290574.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

8,313

8,126

5291095.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

11,776

8,704

5291508.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

352

345

5291536.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

2,863

2,756

5291623.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

17,851

17,383

5292026.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

5,382

2,970

5292089.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

2,017

1,842

5292138.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

4,807

4,640

5292889.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

1,744

1,701

5293305.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

2,869

2,794

5293370.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

2,417

2,354

5293536.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

25,287

24,515

5293585.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

8,399

8,084

5293668.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

6,920

5,998

5293871.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

4,457

2,910

5293907.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

3,883

3,163

5293955.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

6,965

3,905

5294032.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

4,558

4,386

5294185.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

3,784

3,683

5294289.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

1,634

1,481

5294309.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

1,200

552

5294320.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

1,600

1,550

5294366.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

6,730

6,450

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

45

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5294479.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

$

2,097

$

2,037

5294523.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

1,953

1,901

5294657.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

5,201

4,973

5294805.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

21,249

20,196

5295185.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

3,283

3,079

5295255.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

4,664

3,767

5295480.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

4,171

4,060

5296246.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,628

997

5296265.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

997

976

5296302.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,527

1,481

5296350.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

554

538

5296363.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,000

1,633

5296379.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,329

1,081

5296402.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

8,532

8,130

5296558.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

986

960

5296588.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,268

1,195

5296624.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

25,369

24,744

5297029.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

202

191

5297035.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,001

1,952

5297063.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

280

260

5297074.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,442

1,410

5297119.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

5,399

5,275

5297175.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

973

775

5297221.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

271

252

5297224.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,993

2,807

5297250.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,101

1,036

5297347.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,114

2,010

5297382.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

3,159

2,969

5297428.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

4,696

4,553

5297487.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

8,670

8,357

5297646.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,482

2,336

5297658.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,532

2,381

5297688.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,273

1,237

5297747.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,238

2,175

5297761.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

6,991

6,639

5297910.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

8,987

8,427

5298049.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

4,036

3,924

5298136.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,558

1,249

5298171.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

526

508

5298179.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,494

2,428

5298248.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

6,591

6,196

5298409.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,613

2,542

5298623.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,536

1,495

5298672.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

10,134

9,821

5298892.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

27,338

26,602

5299429.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

4,648

4,464

5299486.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,933

1,883

5299563.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

15,873

15,468

5300019.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

876

856

5300172.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

5,363

5,051

5300321.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,061

751

5300323.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,450

1,159

5300360.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,011

1,956

5300442.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

747

713

5300472.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

775

747

5300948.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

899

879

5301202.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,933

2,874

5302399.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

3,196

3,114

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5302569.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

$

5,116

$

4,705

5302815.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

985

966

5302910.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

3,366

3,290

5303109.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,446

1,925

5303173.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,279

1,183

5303269.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

6,819

6,152

5303459.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,329

2,253

5303539.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

3,839

3,455

5303663.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

5,191

5,036

5304262.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,252

1,116

5304303.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

7,952

7,719

5304427.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

5,475

4,677

5304517.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

9,070

8,072

5304590.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

18,863

18,325

5304956.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,488

2,248

5304995.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,682

2,408

5305067.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,784

2,624

5305103.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,075

843

5305120.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

3,518

3,168

5305172.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,492

1,402

5305218.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

609

579

5305242.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

3,161

3,090

5305359.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

780

756

5305370.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

423

397

5305581.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

7,437

7,073

5305701.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

681

662

5305739.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

9,731

9,480

5305936.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

7,601

7,386

5306117.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,148

483

5306142.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

351

337

5306448.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,887

2,826

5306642.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

4,942

4,652

5306751.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

178

175

5306815.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

31,285

29,492

5307314.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,713

2,640

5307479.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

4,039

3,932

5307590.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,118

1,962

5307874.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,520

2,398

5307959.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

1,359

1,113

5308247.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

7,765

7,512

5308603.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,394

2,353

5309391.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,886

2,775

5309822.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

3,316

3,252

5310449.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

1,434

1,349

5310591.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,924

2,095

5310729.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

1,222

1,113

5310762.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

4,420

4,288

5310856.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

668

653

5310949.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

364

355

5310960.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

4,069

3,939

5311098.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

947

919

5311109.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

9,676

6,175

5311402.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

9,374

9,132

5311717.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

761

653

5311724.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

27,355

26,317

5312373.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

13,189

12,405

5312571.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

13,933

13,554

5312809.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

13,736

13,372

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5313078.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

$

448

$

438

5313098.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

1,870

1,690

5313138.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

10,456

10,169

5313350.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

3,828

3,748

5313519.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

9,633

9,254

5313630.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,009

1,942

5313684.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

7,009

6,817

5313782.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

9,252

8,953

5313916.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

152

150

5313978.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

347

343

5314056.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

55,945

45,489

5315966.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

349

343

5315991.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

9,374

8,766

5316097.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

437

297

5316105.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

50

50

5316109.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

6,784

6,601

5316216.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

2,828

2,643

5316243.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

2,976

2,878

5316383.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

186

166

5316389.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

1,466

1,400

5316446.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

16,223

15,109

5316730.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

14,659

14,240

5317081.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

3,128

3,061

5317234.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

3,701

2,283

5317373.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

234

224

5317402.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

6,135

5,870

5317481.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

782

495

5317497.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

1,595

1,521

5317587.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

7,212

6,712

5317679.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

5,622

5,295

5317744.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

4,648

4,531

5317843.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

1,046

1,025

5317919.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

25,117

24,377

5318467.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

1,877

1,752

5318527.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

36,186

35,118

5319057.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

2,284

2,180

5319158.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

14,915

14,369

5319336.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

2,221

2,174

5319378.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

8,726

8,386

5319489.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

4,874

4,688

5319781.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

955

928

5319861.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

5,352

5,190

5319985.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

23,453

17,181

5320343.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,356

1,948

5320387.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

322

315

5320457.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

457

344

5320674.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,621

673

5320762.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

7,143

6,318

5321250.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,826

1,439

5321739.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

3,535

3,424

5321784.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

14,745

13,375

5322010.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

5,868

5,720

5322171.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,493

1,323

5322260.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,171

2,109

5322288.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

530

421

5322297.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,541

1,483

5322315.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

8,103

7,525

5322476.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

3,230

3,130

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5322534.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

$

176

$

172

5322730.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

575

541

5322850.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,689

1,649

5322921.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

7,186

6,368

5323101.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

4,769

4,244

5323155.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

735

711

5323174.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

3,050

2,924

5323204.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,137

1,922

5323235.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

7,080

5,355

5323728.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,212

1,182

5323759.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,963

2,884

5323857.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

29,460

26,913

5324162.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

14,611

14,165

5324255.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

204

200

5324286.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

584

571

5324296.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

3,931

3,831

5324352.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

2,991

2,902

5324375.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

3,336

3,160

5324421.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

1,980

1,935

5324443.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

5,538

5,409

5324510.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

2,422

2,255

5324525.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

3,364

2,974

5324550.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

4,767

3,915

5324590.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

10,343

9,178

5324667.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

4,226

3,952

5324728.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

409

367

5324731.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

996

959

5324739.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

3,428

2,373

5324825.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

2,382

2,323

5324979.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

162

154

5324983.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

702

651

5324995.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

1,244

1,139

5325009.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

7,180

5,132

5325109.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

3,741

1,410

5325139.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

13,729

13,309

5325289.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

1,420

1,193

5325300.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

1,678

1,546

5325352.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

3,359

3,225

5325377.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

1,901

1,790

5325394.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

4,295

3,792

5325443.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

1,716

1,670

5325465.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

442

415

5325470.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

9,440

9,197

5325597.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

2,985

2,897

5325618.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

8,870

8,555

5325780.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

7,248

6,810

5325953.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

27,342

24,003

5326788.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

751

554

5326822.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

2,133

2,080

5327087.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

1,050

1,012

5327181.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

1,062

1,033

5327231.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

13,010

12,534

5327529.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

588

571

5327623.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

7,380

7,196

5328495.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

5,678

5,552

5328664.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

5,071

4,894

5328783.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

21,223

20,609

5329091.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

5,059

4,962

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

47

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5329293.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

$

2,319

$

2,230

5329318.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

1,197

1,172

5329337.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

7,745

7,414

5329438.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

13,445

13,072

5329649.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

2,287

999

5329683.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

942

924

5329709.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

374

356

5329738.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

14,444

14,063

5329972.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

2,622

2,542

5330015.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

15,592

15,136

5330169.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

306

300

5330184.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

2,891

2,262

5330220.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

4,625

4,435

5330283.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

897

806

5330304.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

3,905

3,792

5330408.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

2,951

2,861

5330463.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

8,685

8,413

5330611.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

5,187

2,277

5330644.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,101

3,030

5330689.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

4,452

4,257

5330757.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

636

606

5330878.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

9,327

7,681

5330913.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,015

920

5330930.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

5,553

4,212

5330978.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,578

1,486

5331103.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

2,247

2,171

5331155.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

6,864

6,445

5331271.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

5,790

5,533

5331561.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

888

801

5331997.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,172

650

5332017.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,457

2,509

5332078.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

7,045

6,845

5332314.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

2,171

2,102

5332382.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,453

731

5332533.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,435

3,337

5333348.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,915

1,799

5333461.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,700

1,653

5333523.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

690

611

5333524.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

514

484

5333647.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,792

1,719

5333720.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

287

281

5333753.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,504

1,458

5333772.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

967

657

5333773.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,965

3,611

5333799.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,225

1,073

5333956.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

4,004

3,874

5334010.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

698

381

5334017.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,072

2,922

5334059.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

11,108

10,722

5334456.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

17,607

16,906

5334638.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

28,850

27,820

5334919.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,216

718

5334920.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

4,782

4,587

5334961.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

429

419

5335009.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

19,582

19,141

5335277.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,712

2,637

5335310.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,669

2,266

5335336.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

29,008

26,852

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5335931.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

$

3,798

$

3,697

5336033.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,172

1,121

5336258.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

6,760

6,456

5336943.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

246

230

5336966.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

4,817

4,681

5337127.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

3,241

3,170

5337236.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,355

1,321

5337318.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,971

1,750

5337401.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,846

2,705

5337451.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

4,225

4,089

5337496.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,547

1,482

5337533.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,914

1,565

5337863.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

7,301

6,972

5338029.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,551

1,514

5338077.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

10,728

10,079

5338165.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

4,152

3,988

5338208.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,558

2,482

5338241.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

3,035

2,946

5338252.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

14,181

13,834

5338473.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,098

1,069

5338490.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,309

1,706

5338511.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,377

2,254

5338625.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,501

1,451

5338656.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

374

360

5338841.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

3,183

2,791

5338885.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,703

1,596

5339012.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,166

2,100

5339104.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,366

1,334

5339131.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,607

2,386

5339178.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

7,431

7,169

5339374.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

25,378

24,759

5356271.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

5,880

5,690

5357102.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,800

1,763

5357298.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,324

1,214

5357373.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

2,856

2,775

5357594.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

4,480

3,452

5358572.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

2,458

2,397

5359785.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

2,850

2,758

5360265.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

5,183

4,959

5360661.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

10,302

9,395

5361225.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

3,823

3,695

5361605.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,317

1,282

5361644.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

2,120

2,057

5362078.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,217

1,185

5362125.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

4,448

4,311

5362361.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,715

1,521

5362471.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

4,257

4,121

5362668.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

46,696

43,413

5363906.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

6,774

6,522

5364010.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

3,632

3,503

5364095.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,649

1,443

5364146.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

5,985

5,533

5364330.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,555

1,384

5364363.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

4,226

3,721

5364437.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

33,859

29,958

5364900.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,649

1,070

5364920.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

12,424

12,088

5365267.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

7,571

5,294

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5365379.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

$

1,722

$

1,534

5365439.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

19,730

19,213

5366532.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

735

644

5366565.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

5,191

5,062

5366709.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

7,731

7,542

5368254.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

1,705

1,670

5368593.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

3,409

3,309

5368811.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

2,580

2,506

5369148.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

1,036

903

5369318.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

309

280

5369700.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

2,377

2,286

5370230.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

1,627

1,518

5370632.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

5,561

5,375

5373003.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

6,456

6,231

5374193.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

2,327

2,269

5374353.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

8,789

8,508

5374944.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

5,530

5,318

5375623.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

3,673

3,423

5376280.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

2,863

2,764

5376412.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

753

734

5376451.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

5,934

5,149

5376636.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

15,402

14,790

5376967.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

6,580

6,368

5377413.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

1,327

951

5377620.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

25,411

18,929

5378441.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

166

163

5378585.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

392

358

5379120.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

11,075

10,789

5379567.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

16,902

16,330

5380126.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

4,661

4,136

5380280.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

3,479

1,477

5380315.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

20,646

20,071

5380978.SQ.FTS.B,

Zero

Cpn,

11/28/23

..

34,697

32,642

5381640.SQ.FTS.B,

Zero

Cpn,

11/28/23

..

3,327

3,222

5381712.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

552

530

5381837.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

3,173

3,014

5381968.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

2,076

2,030

5382050.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

1,838

1,776

5382098.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

2,573

2,496

5382154.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

1,310

1,191

5382264.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

8,793

8,451

5382508.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

10,923

10,564

5382744.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

4,347

4,057

5382951.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,512

1,462

5382984.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,725

1,667

5383028.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

340

308

5383047.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

4,126

3,884

5383113.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,675

1,620

5383164.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,227

1,199

5383205.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,175

1,089

5383231.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

265

260

5383245.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

236

232

5383307.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

813

772

5383342.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

619

608

5383447.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

2,207

1,764

5383499.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

4,945

4,809

5384035.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

7,582

7,385

5389090.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

2,345

2,281

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5390465.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

$

5,291

$

4,407

5391068.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,344

1,291

5391950.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

169

166

5392090.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

4,034

3,876

5392685.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

2,240

2,162

5393384.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,828

1,746

5393796.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

845

685

5393901.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

3,671

3,530

5394228.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

2,261

995

5394331.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,223

1,151

5394430.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

11,274

10,993

5396879.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,538

1,485

5396951.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

5,769

5,577

5397535.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

5,543

4,589

5397746.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

21,842

20,417

5399156.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

6,846

6,442

5399550.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

8,145

7,443

5400184.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

15,600

11,963

5400676.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

9,608

9,344

5402576.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

6,457

6,291

5404724.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

3,292

3,188

5407224.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

3,488

3,314

5407468.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,769

2,700

5407893.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,510

1,450

5408127.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,993

1,927

5408404.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

446

439

5408536.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

539

326

5408561.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

3,258

3,128

5408726.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,568

1,506

5409094.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,975

1,937

5409849.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,185

1,147

5409886.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,219

1,167

5409973.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,600

1,538

5410081.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

3,006

2,649

5410244.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,437

2,356

5410564.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

5,409

5,280

5411002.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

955

852

5411147.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

706

687

5411165.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

876

795

5411224.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,695

2,469

5411314.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,203

2,060

5411388.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,038

732

5412085.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,478

2,335

5412260.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,189

2,139

5412456.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,081

814

5412541.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,241

1,147

5412561.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

254

245

5412563.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

12,352

11,477

5412734.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

8,127

5,048

5412972.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,609

2,436

5413159.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

7,760

7,428

5413423.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

3,344

3,165

5413569.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

974

884

5413697.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

29,884

23,322

5414157.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

11,423

10,214

5414409.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,107

1,378

5414490.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,119

1,540

5414585.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,890

1,818

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

49

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5414631.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

$

13,826

$

13,451

5415130.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,855

1,635

5415187.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

7,635

7,377

5415410.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

13,646

13,171

5415751.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,253

2,057

5439891.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

209

205

5439954.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

1,761

1,176

5440954.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

8,089

7,767

5441396.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

8,764

8,298

5442887.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

12,344

12,036

5446776.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

3,997

3,886

5447166.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

158

136

5447168.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

11,961

11,579

5447961.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

3,335

3,204

5448095.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

357

347

5448149.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

2,051

1,989

5448268.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

9,591

9,205

5448678.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

6,813

6,589

5449069.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

22,710

21,645

5450371.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

2,819

2,520

5450480.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

25,764

19,520

5451589.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

10,631

10,349

5452329.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

498

345

5452385.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

3,935

3,772

5452530.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

43,946

42,187

5454347.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

1,757

1,715

5454474.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

22,207

21,526

5455551.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,440

1,390

5456049.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

2,516

2,346

5456242.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

2,511

1,721

5456346.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

3,560

3,462

5456428.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

33,031

27,327

5458625.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

2,155

2,108

5460316.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,874

1,797

5461477.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

5,106

4,858

5462762.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,439

1,401

5462877.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,024

991

5463036.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,378

1,081

5463107.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

958

937

5463271.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

513

443

5463353.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

20,298

19,670

5465094.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

15,607

14,513

5465918.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

2,146

2,104

5466357.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

6,049

5,821

5466656.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

5,770

5,587

5467355.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

6,527

4,957

5467609.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

402

382

5467661.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

3,774

3,652

5469061.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

3,701

3,088

5469257.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

525

516

5469522.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

560

545

5469802.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

3,739

3,424

5471418.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

3,543

3,101

5471480.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,233

1,201

5471641.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,845

1,343

5471645.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

3,423

3,334

5472696.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

377

369

5472706.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

115

110

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5472707.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

$

827

$

781

5472733.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

9,996

8,292

5472760.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

7,324

5,315

5472786.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

2,658

2,553

5472808.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

615

569

5472809.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

3,304

2,796

5472855.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

820

789

5472869.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

4,322

4,163

5472907.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

9,846

9,601

5473041.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

2,406

2,286

5473064.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

409

402

5473082.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

505

452

5473088.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

2,407

2,333

5473117.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

10,019

9,637

5473239.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

7,063

6,839

5473314.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

3,254

3,074

5473353.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

1,116

971

5473365.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

2,507

2,421

5473379.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

6,762

6,538

5473458.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

14,452

13,872

5473595.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

1,078

1,046

5473619.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

8,100

7,558

5473715.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

3,718

3,290

5473739.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

645

610

5473897.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

326

321

5473906.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

3,367

3,235

5473942.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

784

743

5473985.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

5,390

5,222

5474042.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

1,484

1,434

5474117.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

987

882

5474125.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

201

195

5474127.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

2,614

2,553

5474176.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

678

646

5474229.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

4,042

3,821

5474254.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

1,733

1,686

5474326.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

1,016

990

5474340.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

11,567

11,183

5474502.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

5,550

5,200

5474555.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

3,001

2,921

5474592.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

9,259

8,709

5474833.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

229

221

5474835.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

2,377

2,208

5475686.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

2,736

1,244

5475871.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

930

780

5476100.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

7,902

7,602

5478291.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

1,345

1,258

5478936.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

2,374

2,186

5479438.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

1,747

993

5480752.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

3,098

2,225

5481396.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

2,928

2,627

5482596.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

1,355

1,315

5493002.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

629

567

5493029.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

1,057

889

5493059.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

287

269

5493069.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

2,963

2,859

5493383.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

3,351

3,254

5493618.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

15,150

14,549

5494106.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

24,831

24,068

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5495471.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

$

519

$

467

5495504.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

1,678

1,605

5495953.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

5,189

5,058

5498518.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

3,870

3,788

5499511.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

33,055

32,228

5501687.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

3,997

3,872

5501895.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

2,784

2,681

5502107.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

586

570

5502153.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

1,542

1,482

5502357.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

2,534

2,368

5502478.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

2,738

2,633

5502567.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

11,320

10,595

5502857.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

3,806

3,553

5502898.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

4,186

3,829

5503053.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

1,366

1,265

5503173.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

776

604

5503207.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

5,683

5,440

5503358.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

4,216

4,077

5503514.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

453

441

5503527.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

25,915

25,133

5504805.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

3,007

2,528

5504886.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

929

582

5505047.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

32,527

30,256

5505930.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

1,614

855

5505932.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

3,696

3,500

5506042.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

8,555

8,142

5506550.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,003

911

5506706.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

2,492

2,327

5506828.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

7,740

5,194

5507000.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

38,826

27,073

5508430.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

141

131

5508454.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

4,740

4,617

5509426.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

2,913

2,805

5510015.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

812

789

5510254.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

3,494

3,374

5512025.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,063

1,044

5514065.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,509

1,455

5514832.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

4,650

4,493

5515187.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

4,692

4,469

5515549.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,677

1,011

5515732.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

9,635

9,271

5516154.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

12,489

6,584

5516587.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

7,256

7,022

5517750.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

8,319

8,039

5517919.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,006

970

5517958.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,681

1,513

5518009.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,692

1,632

5518064.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

10,931

10,623

5518310.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

671

425

5518349.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

2,211

2,076

5518463.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

3,298

3,183

5518520.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,505

1,459

5518672.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

2,617

2,541

5518743.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

28

27

5518858.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

4,603

4,502

5519081.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,306

1,274

5519107.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

9,247

8,813

5519276.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

1,230

1,172

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5519293.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

$

5,065

$

4,901

5519364.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

2,143

1,884

5519410.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

7,311

6,957

5519628.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

2,010

1,950

5519715.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

29,493

27,745

5528077.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

5,418

5,253

5528190.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

1,015

992

5528228.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

31,478

30,635

5530073.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

671

657

5530168.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

3,552

3,468

5530399.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

15,030

14,062

5530819.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

5,685

5,411

5530980.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

3,078

2,987

5531095.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

888

829

5531119.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

4,250

4,096

5531224.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

1,199

1,073

5531244.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

2,797

2,705

5531352.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

8,848

8,583

5531589.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

1,072

1,021

5531630.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

103

101

5531823.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

436

311

5531840.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

3,348

3,268

5531950.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

6,637

6,422

5532460.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

6,119

5,967

5532612.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

1,381

1,352

5532672.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

527

502

5532709.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

12,157

11,728

5532984.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

9,742

9,150

5533174.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

3,004

2,910

5533245.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

26,192

25,188

5533789.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

8,092

7,887

5533995.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

5,681

5,465

5534061.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

4,474

4,348

5534121.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

5,159

4,536

5534166.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

2,736

2,419

5534230.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

967

926

5534261.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

1,484

1,458

5534560.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,081

958

5534576.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

5,476

5,152

5534609.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

95

93

5534666.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

361

338

5534689.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

38,452

29,491

5535013.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

6,799

6,440

5535176.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,836

1,414

5535205.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

3,657

3,478

5535304.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

455

442

5535375.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,166

4,023

5535489.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

371

340

5535547.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,404

2,575

5535747.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

2,219

2,173

5536008.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

5,412

5,196

5536117.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

7,836

7,663

5536724.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

3,349

3,243

5536936.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,602

1,563

5536969.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

835

621

5537040.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

19,859

19,215

5537462.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,244

4,106

5537570.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,552

1,512

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

51

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5537633.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

$

4,403

$

4,279

5537728.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

3,050

2,556

5537761.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,225

1,146

5537817.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

798

310

5537821.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

2,796

2,638

5537878.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

2,389

2,280

5537953.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,030

2,938

5537986.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

24,021

23,122

5538579.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

2,719

2,645

5538622.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

16,729

14,754

5539063.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,394

1,248

5539093.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

6,167

6,019

5539295.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,240

4,093

5539381.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

745

678

5539387.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,316

4,179

5539578.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

11,253

10,895

5539693.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,150

893

5539715.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,563

1,330

5539726.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

3,728

3,601

5539822.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

6,711

4,877

5539860.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

935

856

5539873.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,568

1,529

5539901.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

58

57

5539915.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,471

1,421

5539948.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

2,456

1,642

5539990.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

724

551

5539993.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

4,893

4,755

5540068.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,020

996

5540080.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,815

1,759

5540104.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

3,043

2,924

5540163.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

9,520

9,193

5540292.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

1,800

1,676

5540341.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

3,947

3,692

5540389.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

4,134

3,993

5540447.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

7,096

6,654

5540564.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

26,915

25,793

5540903.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

6,262

6,041

5541044.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

3,198

3,074

5541083.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

683

411

5541089.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

179

176

5541094.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

5,106

4,532

5541195.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

2,347

1,227

5541236.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

3,027

2,801

5541288.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

2,941

2,840

5541504.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

472

443

5541577.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

10,450

10,174

5542444.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

2,115

2,045

5542667.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

14,169

8,774

5543625.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

11,338

10,930

5545031.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

5,198

5,023

5545221.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

3,844

3,699

5545381.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

450

437

5545859.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

4,274

4,117

5545996.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

1,811

1,754

5546069.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

1,675

1,581

5546132.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

7,465

7,008

5546305.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

4,473

4,317

5546515.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

4,733

4,060

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5546631.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

$

9,512

$

9,179

5546962.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

922

821

5547015.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

12,318

11,098

5547240.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

3,360

3,129

5547325.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

6,160

5,846

5547513.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

5,639

5,356

5547656.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

1,699

1,661

5547699.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

6,487

6,324

5547946.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,233

917

5547986.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

6,092

5,897

5548111.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,220

2,160

5548166.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,658

2,545

5548232.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

60,309

23,600

5549391.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

3,293

3,170

5549700.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,599

2,522

5550084.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

3,725

3,498

5550447.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,182

1,965

5550509.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

10,657

10,295

5550900.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,478

2,388

5551038.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,029

999

5551098.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

3,866

3,736

5551200.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,954

1,917

5551322.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,464

2,214

5551702.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

3,700

3,488

5552329.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

837

810

5552344.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,767

789

5552367.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

13,511

12,724

5552569.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,708

1,652

5552685.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

4,804

4,684

5552832.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,168

1,140

5552882.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,345

2,213

5552961.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

325

291

5553205.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

21,572

20,568

5553609.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

4,655

4,528

5553744.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

23,779

20,975

5554068.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

2,573

2,468

5554123.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

3,976

3,782

5554199.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

816

786

5554217.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,016

994

5554234.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

7,164

6,726

5554352.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

7,017

6,720

5554477.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

4,946

4,769

5554641.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

70,199

54,444

5556129.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

1,787

1,637

5556515.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

3,948

3,762

5556604.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

521

484

5556696.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

10,413

9,587

5556985.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

5,430

5,244

5557410.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

912

874

5557436.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

5,489

5,297

5557503.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

3,304

3,138

5557568.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

3,824

3,715

5557604.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

3,437

3,343

5557703.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

6,124

5,566

5557756.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

16,804

16,229

5557927.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

29,876

28,931

5558453.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

875

842

5558612.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

53,640

51,434

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5559276.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

$

2,949

$

2,751

5559331.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

678

661

5561359.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

4,191

3,953

5561383.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

16,780

16,387

5561742.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

478

463

5561812.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,203

2,143

5561867.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

928

910

5561944.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

868

833

5561959.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

638

596

5561993.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,481

1,432

5562047.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

3,095

2,973

5562143.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,153

1,905

5562183.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,541

1,316

5562208.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

3,696

3,569

5562277.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,185

1,150

5562315.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,067

1,028

5562342.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,559

1,479

5562392.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

3,286

3,175

5562472.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

11,874

10,980

5562646.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

13,905

13,590

5562880.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

4,532

4,408

5562959.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,791

1,742

5562980.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,697

2,616

5563038.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

4,772

3,761

5563082.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,104

1,014

5563099.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,043

955

5563122.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

23,457

22,883

5563533.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,780

2,549

5563614.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,297

2,219

5563672.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

3,980

3,888

5563727.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,078

2,007

5563740.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,475

1,415

5564100.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

7,163

6,895

5564191.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

1,580

1,181

5564198.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

14,440

14,031

5564363.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

827

799

5564397.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

6,419

6,226

5564496.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

3,997

3,857

5564527.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

2,928

2,845

5564578.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

1,718

1,670

5564602.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,779

1,138

5564628.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

14,758

12,466

5564683.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

10,004

9,646

5564787.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

4,409

4,190

5564844.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

858

821

5564859.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

800

407

5564894.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

7,666

7,399

5564975.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

1,104

1,051

5564990.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

9,934

9,644

5565164.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

28,371

26,121

5565516.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

16,869

16,258

5565682.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

8,967

8,735

5565801.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

3,827

3,746

5565862.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

3,214

2,546

5565905.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,409

2,242

5565916.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,192

2,126

5565940.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

1,007

979

5565959.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

553

541

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5565967.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

$

1,920

$

1,870

5565981.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

1,155

1,114

5565992.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

6,665

3,994

5566025.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

22,963

22,069

5566282.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

6,366

6,223

5566921.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,017

1,741

5567063.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

4,585

4,383

5567113.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

9,439

9,001

5567327.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

3,640

3,503

5567435.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

5,549

5,342

5567477.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

1,613

1,479

5567491.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

5,965

5,822

5567586.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,770

2,679

5567676.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

7,037

6,780

5567788.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

24,531

23,704

5567951.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

15,995

14,883

5568053.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

2,172

2,105

5568064.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

9,634

9,352

5568132.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

5,917

5,780

5568222.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

1,437

1,382

5568249.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

5,625

5,426

5568291.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

966

910

5568299.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

486

472

5568314.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

3,301

3,221

5568393.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

7,904

7,560

5568471.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

1,492

1,333

5568506.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

2,133

2,000

5568529.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

1,835

1,763

5568610.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

13,317

12,591

5568718.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

2,705

2,640

5568752.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

1,131

1,100

5568822.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

342

327

5568844.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

3,376

3,162

5568881.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

1,314

1,068

5568908.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

940

862

5568984.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

9,194

8,206

5569070.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

29,610

22,885

5569306.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

4,037

3,908

5569350.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

972

953

5569508.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

1,130

1,093

5569518.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

3,770

3,661

5570264.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

11,106

10,731

5570542.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

2,833

2,769

5570596.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

3,370

3,295

5570733.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

2,271

2,196

5570844.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

7,065

6,821

5571209.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

4,611

3,671

5571303.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

11,806

11,277

5571598.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

173

170

5571634.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

4,804

4,640

5571718.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

3,846

3,702

5571769.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

4,076

3,957

5571840.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

3,115

2,943

5571904.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

2,959

2,883

5571985.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

9,616

9,181

5572327.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

648

559

5572343.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

1,835

1,760

5572397.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

910

878

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

53

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5572494.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

$

374

$

367

5572534.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

3,578

3,432

5572655.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

3,354

3,213

5572743.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

1,591

1,521

5572793.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

3,491

3,163

5572822.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

350

340

5572839.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

4,591

4,462

5572906.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

4,599

4,391

5572998.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

2,149

1,544

5573052.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

3,086

3,008

5573133.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

3,908

3,539

5573188.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

11,073

9,771

5573267.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

9,564

9,260

5573406.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

747

716

5573434.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

19,772

16,639

5573821.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

1,492

1,330

5573833.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

3,751

3,645

5573929.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

4,137

3,852

5573989.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

5,462

5,300

5574112.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

12,078

11,684

5574270.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

4,562

4,449

5574313.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

5,594

5,134

5574351.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

12,028

11,707

5574513.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

3,187

3,071

5574540.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

31,148

29,810

5574943.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

5,383

5,252

5575035.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

18,681

17,938

5575283.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

12,775

12,382

5575488.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

4,484

4,001

5575531.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

562

538

5575534.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

9,461

9,185

5575759.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

1,113

991

5575781.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

6,507

6,343

5575858.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

421

386

5575865.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

2,930

2,786

5575886.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

1,142

1,106

5575913.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

2,190

2,084

5575953.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

5,964

5,633

5576060.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

4,572

3,707

5576121.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

463

427

5576136.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

7,070

6,724

5576201.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

4,281

3,705

5576258.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

23,604

21,806

5576362.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

5,357

5,204

5576416.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,727

1,672

5576425.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

47

46

5576438.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,898

1,782

5576464.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

459

437

5576474.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,078

1,043

5576489.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

12,360

6,146

5576548.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

7,796

7,502

5576640.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

3,462

3,287

5576679.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,878

1,753

5576720.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

2,912

2,769

5576772.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

2,326

2,113

5576779.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

5,505

5,316

5576902.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

4,316

4,149

5577497.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

9,187

8,897

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5577624.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

$

158

$

154

5577634.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

7,032

6,833

5577754.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

2,407

2,324

5577779.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

4,503

3,226

5577807.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,680

1,604

5577829.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

4,491

4,393

5577933.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,953

1,825

5577963.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,054

988

5577977.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

6,450

6,094

5578058.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

40,260

36,029

5578800.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

43,179

41,535

5579188.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

3,485

3,257

5579232.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,500

1,472

5579266.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

935

913

5579302.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

5,225

4,025

5579310.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

2,723

2,629

5579331.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,381

1,341

5581154.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

2,682

2,597

5581188.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

1,199

1,154

5581198.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

5,043

4,283

5581252.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

461

396

5581261.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

4,852

4,324

5581320.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

8,079

7,687

5581583.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

20,550

19,426

5581905.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

7,423

7,247

5582906.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

1,945

1,840

5582936.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

954

928

5582953.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

1,048

1,010

5582986.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

7,821

7,315

5583159.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

2,918

2,529

5583211.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

1,188

1,097

5583229.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

11,093

10,779

5583434.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

7,436

5,186

5583520.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

2,559

2,478

5583569.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

7,385

6,978

5583810.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

3,205

3,092

5583849.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

36,845

32,909

5584166.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

272

264

5584177.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

36,615

29,796

5584412.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

3,915

3,747

5584458.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

5,196

4,984

5584490.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

26,267

24,616

5584740.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,971

2,873

5584830.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,223

1,181

5584841.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

4,319

4,141

5584893.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

3,240

3,132

5584918.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

11,956

11,281

5585107.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

3,444

3,343

5585205.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

971

942

5585211.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

925

831

5585235.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,884

1,877

5585275.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

738

711

5585320.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

6,418

6,253

5585522.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,307

1,108

5585584.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,641

2,543

5585629.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,654

2,524

5585677.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

359

352

5585686.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,113

2,053

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5585724.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

$

638

$

599

5585759.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

4,430

3,995

5585801.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,009

899

5585809.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

7,062

6,912

5585950.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,021

871

5585957.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

513

498

5585965.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

3,033

2,639

5585981.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

4,485

3,471

5585998.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

15,797

15,463

5586369.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

8,309

8,059

5586481.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

4,219

4,094

5586570.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,818

1,757

5586585.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

6,216

5,560

5586664.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,053

1,030

5586696.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

717

692

5586708.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

3,317

2,405

5586732.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

3,014

2,881

5586771.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,955

1,917

5586834.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

423

404

5586840.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

6,996

6,703

5586899.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,791

2,625

5586913.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,320

1,256

5586917.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,087

1,034

5586936.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

39,530

37,940

5587376.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

5,574

5,385

5587431.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,375

1,429

5587446.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

4,191

4,098

5587561.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

4,843

4,687

5587613.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,667

1,608

5587626.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

8,309

7,997

5587778.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

11,689

11,424

5588013.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

6,332

6,110

5588055.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,454

1,415

5588060.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,595

1,517

5588063.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

3,760

3,506

5588072.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,830

1,685

5588074.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,341

712

5588078.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

30,649

29,415

5588165.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

764

740

5588173.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

7,797

6,266

5588206.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

7,246

5,459

5588236.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,539

1,437

5588243.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,753

1,044

5588250.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

3,250

3,046

5588274.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

2,762

2,585

5588290.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

2,006

1,944

5588304.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

2,845

2,712

5588333.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

6,261

6,038

5588375.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

7,436

7,169

5588411.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

592

553

5588415.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

7,108

6,827

5588448.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,522

1,473

5588455.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

618

591

5588462.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

775

563

5588473.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

11,743

10,654

5588504.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

5,862

4,367

5588529.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

556

535

5588554.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

6,632

6,314

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5588592.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

$

8,243

$

7,911

5588684.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

4,222

4,075

5588708.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

3,005

2,912

5588732.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

4,247

4,106

5588758.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

2,122

2,067

5588786.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

3,756

3,512

5588800.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

2,079

1,995

5588812.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

3,837

3,729

5588832.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

7,743

7,413

5588874.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

226

183

5588875.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,333

1,303

5588903.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

889

861

5588907.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

5,321

5,161

5588955.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,303

1,223

5588959.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,365

1,217

5588968.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

13,146

12,688

5589046.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

3,853

3,716

5589074.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

3,958

3,846

5589109.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

4,665

4,504

5589139.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,753

1,701

5589150.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

537

525

5589160.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

2,000

1,807

5589185.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

2,618

2,491

5589208.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,162

1,125

5589214.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

9,062

8,774

5589272.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,772

1,707

5589285.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,772

1,726

5589303.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

4,773

4,495

5589322.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

5,274

4,623

5589340.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,367

1,324

5589347.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

5,273

5,087

5589365.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

172

169

5593219.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

33,281

18,990

5593469.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

3,608

3,484

5593493.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

42,880

41,172

5593816.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

7,983

7,371

5593862.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

6,675

4,786

5593918.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

5,592

5,428

5593982.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

2,207

2,087

5594046.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

2,791

2,701

5594152.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,666

1,538

5594170.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,010

984

5594180.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,517

692

5594228.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

382

371

5594259.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

602

506

5594261.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,617

1,567

5594283.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,823

1,763

5594306.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

2,037

1,994

5594513.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,126

949

5594517.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,455

735

5594527.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

17,642

17,075

5594633.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

4,094

3,976

5594662.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

7,092

6,881

5594695.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

3,948

3,308

5594715.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

21,426

20,398

5594879.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

547

535

5594904.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

10,113

9,769

5594967.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

526

503

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5594985.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

$

5,414

$

5,186

5595020.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

48,522

46,786

5595300.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

23,955

23,111

5595540.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

665

552

5595624.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

986

456

5596944.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,694

1,645

5597187.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

886

860

5597195.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,637

1,533

5597211.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,949

1,798

5597239.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,535

1,432

5597301.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

7,968

7,241

5597497.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

3,903

2,649

5597510.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

8,206

7,884

5597662.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

843

581

5597667.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,717

1,659

5597681.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

6,042

5,281

5597724.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

29,203

28,138

5598153.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,127

1,100

5598179.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

292

279

5598185.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

680

666

5598513.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,349

1,322

5598566.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

10,244

9,808

5598756.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,350

2,244

5598824.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,301

1,259

5598842.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

625

505

5598844.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,497

2,432

5598874.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

20,425

19,245

5599191.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,520

1,474

5599211.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

3,673

3,569

5599324.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,174

1,111

5599344.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,669

2,602

5599450.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,683

1,566

5599510.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,492

2,428

5599592.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,874

1,826

5599651.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

5,279

5,094

5599728.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

5,251

4,244

5599812.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,408

1,318

5599834.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,267

2,215

5599893.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

3,250

2,945

5599940.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

3,526

3,094

5600010.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

39,848

38,317

5600496.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,627

2,111

5600526.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,008

496

5600545.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,479

2,409

5600570.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

634

622

5600589.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,772

1,691

5600631.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

248

243

5600632.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

3,565

2,030

5600651.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

13,791

13,190

5608074.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

1,527

1,480

5608098.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

1,886

1,793

5608112.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

38,463

35,041

5608465.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

4,951

4,802

5608575.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

8,163

7,716

5608730.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

13,528

13,201

5609688.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

2,614

2,511

5609770.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

18,852

17,707

5610266.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

45,391

43,884

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5611063.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

$

6,539

$

6,308

5611177.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

4,479

4,325

5611213.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

13,461

13,032

5611376.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

8,254

7,926

5611432.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

2,943

2,785

5611467.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

3,570

3,061

5611495.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

2,552

2,471

5611517.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

8,831

7,862

5611591.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

1,801

1,751

5611621.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

9,842

9,395

5611854.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

23,412

21,909

5612128.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

15,207

13,962

5612313.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

15,294

12,162

5612369.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

6,157

5,936

5612440.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

450

414

5612450.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

4,809

4,685

5612507.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

12,759

12,029

5612708.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

1,797

836

5612747.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

5,518

5,360

5612822.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

1,786

1,735

5612855.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

2,658

2,375

5613089.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

868

835

5613114.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,983

1,927

5613137.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

2,806

2,702

5613160.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

24,825

24,153

5613556.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

20,963

20,300

5614057.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

28,681

26,054

5614883.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,736

2,536

5614938.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

2,568

2,425

5614994.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

358

351

5615016.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

15,354

14,863

5615236.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,349

3,187

5615372.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

8,503

8,150

5615465.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

5,998

5,762

5615547.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

8,856

8,517

5615668.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

6,852

6,481

5615832.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

559

492

5615845.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

703

665

5615922.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

2,633

2,549

5615948.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

429

413

5615949.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

2,652

2,595

5616009.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,445

3,360

5616046.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,815

1,680

5616066.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,759

3,645

5616088.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

10,871

10,512

5616216.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

21,847

19,968

5616400.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

282

265

5616405.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

8,075

7,750

5616463.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

4,622

4,464

5616516.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

462

427

5616524.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,185

981

5616538.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

233

224

5616565.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

10,673

10,241

5616781.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,125

1,037

5616851.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

7,167

6,534

5616965.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

67

66

5616972.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,255

3,062

5617036.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

2,957

2,676

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5617137.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

$

4,632

$

4,467

5617273.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

4,409

4,141

5617433.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,246

3,090

5617510.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

522

421

5617512.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,587

1,536

5617615.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

2,818

2,556

5617674.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,410

3,313

5617724.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

1,278

1,221

5617772.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

4,997

4,321

5617837.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

2,927

2,833

5617874.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

2,745

2,663

5617942.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

12,589

12,120

5618116.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

8,565

8,071

5618234.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

1,683

1,616

5618248.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

2,137

2,071

5618299.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

5,791

5,576

5618380.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

3,209

3,108

5618433.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

3,395

3,199

5618558.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

3,223

3,126

5618604.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

3,000

2,734

5618640.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

2,433

2,335

5618678.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

4,022

3,890

5618863.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

5,869

4,812

5618942.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

2,840

2,630

5618969.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

1,533

1,496

5618997.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

2,990

2,882

5619038.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

3,363

3,249

5619087.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

1,510

1,471

5619117.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

7,286

6,644

5619205.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

1,599

1,397

5619228.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

1,922

1,746

5619248.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

1,188

1,164

5619292.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

2,549

2,427

5619331.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

3,766

3,679

5619417.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

2,951

2,850

5619451.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

1,695

1,481

5619464.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

752

704

5619471.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

1,436

1,377

5619487.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

1,932

1,881

5619534.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

2,887

2,755

5619571.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

2,848

2,734

5619613.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

10,545

10,285

5619821.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

6,850

5,893

5619915.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

3,575

3,096

5619959.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

10,509

9,774

5620066.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

2,868

1,875

5620082.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

4,300

4,180

5620262.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

14,876

14,293

5621042.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

8,074

7,836

5621917.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

168

164

5621935.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

1,558

1,503

5621993.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

817

774

5622024.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

3,144

1,881

5622057.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

24,302

23,610

5622661.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

4,504

4,187

5622763.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

796

426

5622765.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

17,291

16,840

5623339.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

2,124

1,983

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5623363.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

$

17,978

$

16,743

5623971.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

3,256

3,142

5624029.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

14,268

13,826

5624217.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

657

644

5624245.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

1,830

1,777

5624299.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

6,388

4,190

5624349.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

9,762

9,064

5624636.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

15,506

14,487

5625056.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

24,962

24,115

5625361.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

8,842

8,420

5625522.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

5,110

4,942

5625644.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

4,791

4,586

5625834.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

4,210

4,051

5626005.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

7,321

6,909

5626561.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

11,938

11,234

5627066.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

2,096

1,954

5627102.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,281

1,220

5627125.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

5,718

5,500

5627218.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

9,439

9,120

5627350.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

2,718

2,536

5627423.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

3,833

3,733

5627541.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

16,384

16,054

5628161.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

862

827

5628510.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

21,188

20,684

5629471.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

50,833

48,197

5629998.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

895

821

5630021.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

3,030

2,966

5630082.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

6,703

6,440

5630151.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

2,129

1,941

5630189.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,210

1,154

5630219.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

2,695

2,623

5630272.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,755

1,548

5630278.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

532

517

5630281.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,696

1,592

5630300.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

6,911

6,633

5630379.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,302

1,275

5640795.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,899

2,829

5641025.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,278

2,193

5641063.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,666

3,449

5641148.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,315

2,242

5641179.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,835

3,707

5641417.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

743

721

5641510.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

5,726

5,490

5641620.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,331

718

5641671.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,070

1,037

5641673.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,630

1,648

5641713.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

580

521

5641753.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

4,006

3,731

5641826.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

16,645

16,175

5643900.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,542

3,451

5644054.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,280

3,063

5644103.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,981

2,876

5644265.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

9,251

8,887

5644591.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,288

1,227

5644724.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

4,905

4,766

5644862.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,520

2,426

5645002.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

6,813

4,909

5645088.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,274

3,210

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

57

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5645286.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

$

5,764

$

5,239

5645369.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,627

3,481

5645436.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

12,014

11,137

5645579.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,520

1,459

5645612.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

704

675

5645630.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,167

2,025

5645646.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

715

699

5645657.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

760

742

5645692.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

489

479

5645728.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

855

640

5645741.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

10,676

10,030

5645859.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,193

1,156

5645876.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

4,725

3,550

5645904.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

17,858

16,955

5646233.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

7,049

6,635

5646375.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,567

1,414

5646396.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

34,854

29,863

5646765.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,097

1,077

5646837.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

11,795

11,444

5647091.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

19,847

19,042

5647395.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

14,018

13,436

5647502.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,493

1,404

5647534.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,692

2,611

5647551.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

7,742

6,644

5647632.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,782

1,733

5647659.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,566

3,434

5647726.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,501

3,357

5647775.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

2,311

1,262

5647807.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,865

3,515

5647857.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

10,981

10,377

5648053.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

10,237

9,829

5648285.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

11,499

10,997

5648565.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,617

1,567

5648602.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

8,321

8,129

5648994.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

3,114

2,991

5649039.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

913

829

5649093.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

2,238

2,176

5649222.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

5,773

5,639

5649633.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

750

696

5649697.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

5,499

5,132

5650606.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

3,653

3,387

5650910.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

8,190

7,866

5651317.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

5,028

4,823

5651483.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

4,794

4,536

5651560.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

2,881

2,550

5651605.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

711

683

5651619.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,498

1,275

5651706.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

5,811

5,581

5651792.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,411

1,379

5651835.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,761

1,694

5651896.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

3,656

3,563

5651983.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

2,884

2,675

5652038.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

32

31

5652053.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

3,115

2,981

5652116.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

7,630

7,344

5652304.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

2,090

2,013

5652332.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

2,355

2,258

5652373.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,765

1,526

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5652400.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

$

3,464

$

3,343

5652469.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

919

890

5652515.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

392

384

5652538.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

13,004

12,373

5652884.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,092

1,066

5652935.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

5,144

4,819

5653068.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,285

1,220

5653079.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

4,489

4,346

5653308.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

2,200

1,764

5653347.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

8,169

7,979

5653773.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

36,058

34,826

5654133.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

39,662

34,983

5654601.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

10,207

9,707

5654667.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

700

676

5654677.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

994

966

5654692.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

59,419

55,233

5655493.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

7,579

7,281

5655586.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

3,053

2,450

5655604.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

3,801

3,697

5655633.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

882

855

5655643.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

4,019

2,918

5655675.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

5,394

5,210

5655752.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

1,544

1,470

5655776.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

5,831

4,913

5655850.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

4,274

4,148

5655939.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

2,542

2,426

5655993.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

2,704

2,551

5656024.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

3,986

3,852

5656075.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

9,170

8,840

5656207.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

10,036

9,729

5656367.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

1,153

1,108

5656380.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

5,217

5,068

5656473.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

9,755

8,873

5656606.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

2,347

2,121

5656711.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

4,237

4,061

5656822.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

6,065

5,826

5656927.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

4,177

4,075

5657035.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

203

199

5657231.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

7,778

7,593

5658162.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

2,864

2,759

5658404.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

4,460

4,297

5659111.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

5,934

5,668

5659867.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1,889

1,677

5660232.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1,351

1,296

5660364.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

663

647

5660412.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

6,973

6,715

5660684.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

5,628

5,425

5660968.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

7,458

7,258

5661347.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

20,519

19,725

5662138.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1,995

1,916

5662231.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

3,242

2,946

5662327.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

8,513

8,184

5662555.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

3,042

2,825

5662627.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1,678

1,632

5662691.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

9,043

8,808

5663218.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

948

888

5663245.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

220

216

5663281.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

2,933

2,727

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5663321.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

$

12,311

$

11,947

5663674.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

5,038

4,789

5663740.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1,621

1,434

5663762.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

5,245

4,934

5663846.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

2,991

2,898

5663983.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

946

841

5664035.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

30,334

29,292

5664828.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

5,276

4,811

5664967.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

5,750

5,524

5665103.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

33,701

32,273

5665606.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

3,891

3,530

5665646.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

3,183

3,114

5665857.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

15,534

14,986

5666740.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

218

209

5666806.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

14,307

11,380

5667369.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

27,403

26,519

5668136.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

13,518

12,596

5668605.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

1,795

1,731

5668715.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

329

318

5668757.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

839

776

5668779.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

19,791

18,024

5669189.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

914

820

5669208.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

2,143

1,987

5669248.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

8,371

8,071

5669454.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

773

752

5669464.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

400

370

5669478.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

9,107

8,886

5669715.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

4,960

4,789

5669842.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

14,468

13,764

5670138.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

5,091

4,809

5670247.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

5,456

5,079

5670327.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

13,551

12,535

5670537.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

9,567

9,035

5670740.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

11,772

11,355

5671092.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

4,471

4,270

5671281.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

1,315

1,281

5671341.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

1,640

1,322

5671405.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

2,704

2,643

5671473.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

272

261

5671492.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

6,268

5,831

5671579.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

744

710

5671581.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

24,682

23,718

5671991.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

25,128

23,906

5672339.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

4,176

4,084

5672476.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

5,968

5,747

5672653.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

10,385

8,409

5672815.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,910

2,831

5672884.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,280

2,185

5672946.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,046

1,995

5673004.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

5,527

5,368

5673131.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,604

1,567

5673210.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,838

2,091

5673272.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,710

1,639

5673351.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,724

3,522

5673391.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,629

3,539

5673451.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,049

2,004

5673548.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,144

2,064

5673588.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,622

1,563

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5673654.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

$

3,286

$

3,187

5673720.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

21,855

20,324

5674244.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

8,892

8,538

5674361.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

9,963

9,518

5674870.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,349

1,281

5674942.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,102

2,924

5675013.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

7,486

6,062

5675130.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,744

1,877

5675245.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

12,529

11,364

5675663.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

7,401

7,121

5675823.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,781

1,715

5675850.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,441

1,385

5675871.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

21,831

21,185

5676151.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

5,777

5,591

5676225.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

660

603

5676293.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

24,215

23,357

5676758.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

8,885

8,684

5676920.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

16,139

15,513

5677272.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,061

2,950

5677329.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

4,686

4,266

5677406.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

14,750

14,336

5677666.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

4,242

4,149

5677768.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,824

2,758

5677873.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,940

3,701

5677938.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,212

3,098

5678007.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,554

1,502

5678037.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

10,439

10,191

5678354.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,208

3,088

5678433.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,222

1,176

5678440.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,255

2,400

5678455.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

612

584

5678460.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

18,905

18,287

5689002.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

24,803

23,107

5689248.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

2,217

1,248

5689262.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

13,566

13,047

5689587.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

775

649

5689590.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

6,605

6,241

5689696.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

6,712

6,480

5689849.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,500

1,449

5689922.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

20,316

19,521

5690927.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

7,787

5,678

5691769.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

2,094

1,966

5691978.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

4,824

4,642

5692565.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,131

1,087

5692636.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

3,057

2,872

5692768.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

89

87

5692786.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

18,403

17,303

5693390.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

46,235

43,724

5694231.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

4,926

4,763

5694328.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

37,921

36,663

5694816.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,074

783

5694822.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,708

1,511

5694850.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

6,356

5,554

5694969.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

3,100

2,983

5695004.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

36,993

35,746

5695450.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

36,550

26,939

5695746.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

663

646

5695774.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

702

675

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

59

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5695793.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

$

13,818

$

12,614

5695931.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

14,161

12,863

5696256.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,773

4,587

5696348.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,730

4,524

5696389.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

3,516

2,793

5696426.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

10,661

10,207

5696512.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,172

2,087

5696527.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,647

4,432

5696585.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

916

874

5696602.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

15,880

15,237

5696963.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

13,194

9,667

5697302.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

7,457

7,149

5697818.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

12,261

10,331

5698322.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,017

982

5698393.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

12,775

9,635

5698704.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

5,197

4,414

5698819.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,008

3,778

5698894.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,797

2,686

5698927.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,195

1,653

5698949.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,066

957

5699054.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

9,738

9,475

5699419.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

9,009

8,677

5699588.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

3,281

3,184

5699678.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

5,381

5,217

5699768.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,073

1,025

5699811.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

624

545

5699822.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,668

2,555

5699871.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

14,033

13,652

5700135.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,664

4,474

5700214.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

7,253

6,814

5700306.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,563

1,429

5700327.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

7,283

6,970

5700432.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

914

663

5700441.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,086

964

5700465.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

11,835

11,463

5700842.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

3,101

2,869

5700933.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,140

1,042

5700958.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,009

1,496

5701000.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

3,651

3,498

5701033.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,382

2,247

5701049.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,933

2,855

5701127.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

11,183

10,771

5701265.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

12,587

11,970

5701543.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

23,085

22,441

5701882.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

5,472

5,267

5701983.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,239

2,129

5701992.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

617

601

5702023.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,847

4,527

5702079.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,788

2,726

5702094.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

3,172

2,887

5702126.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,572

1,478

5702142.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,772

1,485

5702147.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

2,397

2,188

5702269.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

17,607

17,065

5702369.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

5,432

5,165

5702433.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

2,777

2,693

5702466.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

277

256

5702477.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

4,258

4,020

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5702515.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

$

1,642

$

1,457

5702523.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

1,148

1,103

5702537.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

3,498

3,356

5702560.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

3,108

2,977

5702578.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

4,823

4,614

5702627.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

372

364

5702638.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

1,048

974

5702643.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

1,939

1,870

5702659.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

6,889

6,606

5702698.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

5,143

4,694

5702758.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

235

231

5702778.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

3,182

2,731

5702803.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

1,873

1,777

5702828.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

5,516

5,185

5702878.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

13,612

13,058

5703021.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

2,229

2,127

5703038.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

10,976

10,623

5703145.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

5,198

5,012

5703178.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

3,566

3,264

5703213.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

765

744

5703244.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

4,588

4,378

5703295.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,559

1,493

5703301.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

2,651

2,553

5703323.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

10,040

9,356

5703401.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,653

890

5703414.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

3,147

3,052

5703453.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,267

1,063

5703461.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

6,989

6,713

5703531.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

2,412

2,340

5703571.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

3,358

3,234

5703615.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

4,743

4,612

5703688.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,487

1,431

5703708.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

2,784

2,672

5703736.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

986

907

5703743.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

2,405

1,928

5703914.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

411

374

5703965.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,387

1,338

5704024.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

570

549

5704076.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

718

623

5704135.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,329

3,206

5704368.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

2,623

2,503

5704508.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

4,513

4,332

5704779.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

11,848

11,070

5706022.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,153

1,088

5706189.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

777

433

5706212.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,489

3,404

5706397.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

15,779

15,177

5706985.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

2,434

1,784

5707002.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

6,445

5,905

5707108.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,558

3,430

5707234.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,030

971

5707261.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

25,127

23,701

5707758.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,466

3,228

5707894.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

898

765

5707914.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

14,429

13,411

5708263.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,515

2,395

5708360.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,015

914

5708392.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

13,778

12,339

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5708764.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

$

289

$

282

5708786.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,859

3,718

5708905.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

909

498

5708958.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

22,709

21,930

5709449.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

3,574

2,331

5709499.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,109

1,069

5709549.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

13,005

7,403

5709698.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,795

1,747

5709765.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

5,426

4,964

5709867.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,369

1,277

5709966.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

995

936

5709990.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,437

1,372

5710066.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

4,313

4,090

5710117.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

594

497

5710138.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

3,400

3,299

5710218.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

10,717

10,331

5710359.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

871

798

5710365.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

15,797

14,978

5710872.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

4,089

3,947

5710907.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

1,909

1,866

5711020.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

17,296

16,676

5711377.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

5,711

5,535

5711436.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

8,698

8,484

5712114.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

8,850

8,602

5712620.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

3,381

3,273

5712738.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

6,743

6,520

5712953.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

3,750

3,566

5712986.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

16,733

13,854

5713245.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

10,466

9,658

5713471.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

2,681

2,597

5713539.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

3,858

3,726

5713622.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

4,412

4,235

5713677.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

6,898

6,652

5713749.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

14,050

13,599

5714015.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

1,724

1,683

5714042.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

46,057

44,059

5715475.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

1,740

1,652

5715529.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

4,103

3,565

5715602.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

1,710

1,628

5715682.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

3,925

3,797

5715755.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

67,482

64,688

5716285.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

973

951

5716343.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

13,969

13,480

5716616.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

2,054

1,869

5716697.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,860

1,675

5716725.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

221

217

5716754.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

5,256

4,904

5716818.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

3,951

3,815

5716922.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

3,322

2,818

5716974.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

15,388

14,925

5717466.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,055

1,024

5717551.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

6,030

5,630

5718048.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,399

1,361

5718321.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,751

1,695

5718642.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

4,181

4,039

5718728.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,020

971

5718737.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

10,460

10,176

5719043.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,439

1,396

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5719079.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

$

16,175

$

15,450

5719364.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

3,653

3,533

5719446.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

8,968

8,509

5719509.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

2,576

2,367

5719542.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

6,224

5,995

5719596.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

18,022

16,927

5719792.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

11,369

11,006

5719940.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,947

1,239

5719977.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

4,359

4,131

5720047.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

37,769

36,268

5720401.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

15,480

14,772

5720547.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

379

350

5720557.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,111

1,062

5720559.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

10,610

10,084

5720646.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

13,255

12,723

5720836.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

2,605

2,543

5720892.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

14,194

13,575

5721074.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,849

1,785

5721102.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,859

1,575

5721126.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

11,497

11,176

5721269.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,126

1,102

5721283.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

880

738

5721318.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

11,123

10,443

5721506.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

2,182

2,030

5721553.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

913

798

5721582.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

2,432

1,287

5721592.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

13,445

12,278

5721726.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

5,686

5,448

5721787.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

666

652

5726426.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,581

1,511

5726451.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

5,130

4,822

5726505.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

301

296

5726534.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

10,085

9,837

5726690.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

909

819

5726701.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,107

2,790

5726717.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,139

2,960

5726731.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,929

1,865

5726756.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

21,886

21,385

5727179.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

5,089

4,898

5727293.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

2,310

2,203

5727358.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,202

1,157

5727407.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

6,816

6,603

5727805.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

10,188

9,732

5728073.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

993

914

5728109.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

2,318

2,240

5728249.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,274

3,135

5728359.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

2,847

2,640

5728414.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

10,696

9,961

5728544.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,277

3,162

5728577.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

14,284

11,046

5728723.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

6,771

6,196

5728780.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

785

765

5728796.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

2,633

2,565

5728829.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,505

1,438

5728855.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

735

717

5728868.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

8,202

7,881

5728944.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

9,759

9,216

5729187.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

790

763

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

61

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5729197.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

$

1,786

$

1,593

5729248.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,597

3,395

5729334.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

6,031

5,856

5729373.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,689

1,530

5729395.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

40,013

32,981

5729724.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

4,380

4,007

5729762.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

6,570

6,361

5729811.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,923

1,805

5729861.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,569

3,427

5729904.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,045

1,015

5729916.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

15,967

15,406

5730120.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,087

2,859

5730277.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,579

1,204

5730283.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

21,831

20,814

5730441.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

14,961

14,378

5730536.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

7,179

6,918

5730592.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

6,210

5,251

5730652.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

23,032

22,240

5730831.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

507

479

5730836.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

9,040

8,648

5730943.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

3,007

2,463

5730965.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

8,149

7,833

5731025.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

3,580

3,281

5731079.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,409

1,335

5731116.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,898

1,846

5731161.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

6,348

5,959

5731273.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

3,393

3,269

5731303.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

2,205

1,264

5731329.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

18,931

17,633

5731621.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,322

4,181

5731709.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,455

4,292

5731779.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

28,522

26,108

5732088.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

48,049

44,225

5732624.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

11,619

10,908

5732684.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

7,170

6,075

5732913.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,023

994

5732996.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

665

649

5733079.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

688

650

5733086.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

14,434

13,903

5733214.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

2,600

2,386

5733225.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,265

1,239

5733238.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,234

4,019

5733254.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,281

4,068

5733285.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,055

985

5733298.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

29,219

28,116

5733445.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

6,767

6,388

5733487.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

3,399

2,876

5733503.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,146

3,915

5733545.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,488

1,418

5733955.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

3,900

3,819

5734009.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,082

1,020

5734022.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

3,516

3,381

5734048.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

3,467

3,381

5734105.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,720

4,568

5734178.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,819

1,780

5734218.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

8,905

8,587

5734350.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

149

121

5734351.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

5,829

5,675

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5734423.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

$

10,444

$

10,051

5734518.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,656

1,486

5734597.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

1,435

1,363

5734631.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

1,725

1,677

5734652.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

1,302

1,267

5734662.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

2,926

2,849

5734689.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

2,046

1,936

5734707.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

2,390

2,187

5734747.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

7,837

7,329

5734829.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

2,706

2,656

5734926.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

5,848

5,518

5735001.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

3,986

3,826

5735046.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

3,466

3,330

5735082.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

4,942

4,693

5735323.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,241

1,212

5735367.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,935

1,115

5735388.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,831

1,656

5735412.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

5,375

3,660

5735481.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

2,153

2,036

5735505.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

756

583

5735513.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,957

1,084

5735526.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

3,837

3,579

5735573.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

9,635

9,000

5735671.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

663

639

5735678.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

7,248

6,971

5735780.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

11,075

10,681

5735914.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,832

1,767

5735939.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,626

1,591

5735989.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

4,551

3,702

5736169.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

1,911

1,855

5736234.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

5,495

5,037

5736390.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

2,781

2,602

5736954.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

16,142

15,550

5737377.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,456

3,312

5737408.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

6,567

6,185

5737479.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,000

2,893

5737515.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

2,367

1,642

5737550.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,605

3,380

5737632.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

6,844

5,272

5737812.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

4,397

4,258

5737879.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,102

2,903

5737919.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

4,347

4,230

5737982.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

5,509

5,016

5738024.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

6,526

6,088

5738116.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

32,474

31,335

5738477.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

9,728

8,679

5738572.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

422

412

5738582.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

19,947

19,407

5738916.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

12,729

11,766

5739120.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

600

586

5739151.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

8,976

8,589

5739368.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,735

3,573

5739412.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

14,195

13,568

5739636.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

1,049

1,006

5739648.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,129

2,995

5739685.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

942

903

5739695.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

4,125

3,964

5739811.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

6,089

5,908

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5739980.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

$

5,671

$

5,384

5740087.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,043

1,975

5740146.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

17,051

15,885

5740360.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

14,331

13,813

5740687.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

585

575

5740872.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,377

2,240

5740913.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

4,500

4,360

5741000.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,290

1,182

5741029.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,523

3,425

5741088.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,573

2,487

5741148.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,392

1,348

5741165.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,755

3,507

5741187.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

9,384

9,023

5741303.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,743

3,354

5741346.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

675

638

5741355.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

14,279

13,848

5741476.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,184

2,069

5741484.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,495

3,400

5741529.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

4,995

4,688

5741564.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

4,875

4,642

5741627.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,811

1,755

5741660.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,482

2,885

5741682.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

468

458

5741694.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

5,367

4,782

5741761.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

24,281

23,172

5741943.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

17,007

15,225

5742123.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

19,871

18,581

5742285.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,269

2,168

5742308.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

38,625

32,993

5742565.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,691

2,574

5742580.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

33,002

30,826

5742803.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,358

1,328

5742838.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,079

1,627

5742865.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,341

1,150

5742885.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

616

570

5742890.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

4,546

4,368

5742923.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

7,302

6,989

5743017.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

41,880

39,461

5743299.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

21,025

18,583

5743383.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

861

825

5743423.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,835

1,676

5743462.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

5,536

5,043

5743525.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,696

2,597

5743589.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,268

1,003

5743605.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,307

3,196

5743646.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,821

4,281

5743707.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,358

2,106

5743753.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

5,665

5,442

5743825.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

8,908

8,448

5743893.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,572

4,336

5743945.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,753

1,695

5743977.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,537

2,460

5743994.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

728

692

5744005.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,857

3,137

5744081.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,268

2,171

5744100.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

6,874

6,204

5744138.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,959

3,817

5744199.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,567

1,518

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5744269.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

$

3,802

$

3,710

5744406.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

6,907

6,611

5744530.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,164

2,997

5744563.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

9,040

7,803

5744642.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,278

3,182

5744685.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,681

1,617

5744717.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

5,137

4,982

5744795.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

919

896

5744799.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,233

4,047

5744852.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

6,607

6,375

5744927.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

477

468

5744977.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,027

993

5744990.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,680

3,884

5744999.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

5,098

4,927

5745062.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,073

1,027

5745079.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,340

1,090

5745084.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,093

2,000

5745095.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

5,281

4,857

5745113.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,335

2,223

5745135.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

11,532

8,168

5745208.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

9,316

8,998

5745280.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,032

2,246

5745307.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

18,227

14,021

5745416.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,090

2,465

5745445.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

19,938

17,804

5745632.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,554

1,484

5745741.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,844

2,695

5745765.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

364

301

5745795.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,819

3,715

5745851.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,595

2,496

5745869.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

558

500

5745875.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,532

4,354

5745897.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,571

2,516

5745929.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,848

1,693

5745949.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,474

4,341

5745992.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

5,114

4,890

5746068.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,684

1,612

5746079.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

12,991

12,196

5746184.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

358

323

5746185.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

18,440

17,762

5746331.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,371

1,341

5746345.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,715

1,587

5746358.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

958

906

5746369.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,198

3,094

5746405.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,192

3,083

5746443.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,028

972

5746457.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

269

263

5746459.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

4,684

4,459

5746530.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

23,053

22,058

5746688.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,966

3,762

5746717.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

18,175

14,933

5746820.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,489

912

5746823.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,700

3,067

5748935.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

1,466

1,400

5748960.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

16,682

15,849

5749019.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

1,605

1,525

5749121.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

18,703

18,116

5749295.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

23,559

22,226

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

63

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5749966.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

$

11,289

$

10,828

5750174.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

7,674

7,470

5750319.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

583

541

5750330.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

11,432

10,704

5750507.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

959

908

5750543.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

10,978

10,450

5750713.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

8,338

7,832

5750868.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

2,293

1,962

5750889.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

8,271

8,081

5751039.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

17,092

16,409

5751260.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

5,598

5,352

5751349.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

968

946

5751352.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

5,268

4,626

5751414.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

9,353

8,970

5751520.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

3,004

1,406

5751603.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

5,997

5,530

5751664.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

6,639

6,356

5751729.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

14,412

13,792

5751899.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

642

607

5751907.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

12,099

11,633

5752156.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

1,242

818

5752157.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

6,610

6,375

5752260.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

3,476

2,248

5752283.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

8,484

8,058

5752412.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

4,514

4,337

5752456.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

5,844

5,369

5752502.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

6,608

4,920

5752558.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

18,176

17,598

5752717.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

4,887

4,530

5752785.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

6,904

6,631

5752893.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

1,542

1,491

5752929.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,421

1,252

5752967.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

7,691

7,500

5753085.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

13,666

12,180

5753190.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

8,672

8,327

5753246.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

22,632

21,690

5753497.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

6,906

6,680

5753655.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

4,146

3,990

5753743.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,651

1,385

5753759.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

20,479

19,842

5754268.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

3,401

3,248

5754310.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,627

888

5754339.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

6,864

6,499

5754479.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

7,963

7,619

5754650.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,089

1,053

5754687.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

4,256

4,068

5754783.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

3,269

3,105

5754815.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

3,665

2,930

5754904.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

2,101

2,038

5754944.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

5,713

5,452

5755010.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

2,157

2,041

5755050.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,247

1,185

5755074.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

16,081

15,340

5755282.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,265

1,134

5755288.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,635

1,581

5755324.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

356

347

5755329.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

727

710

5755383.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

5,214

4,981

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5755417.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

$

4,738

$

4,384

5755464.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,909

1,862

5755508.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,249

1,179

5755522.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

33,979

32,503

5755879.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

9,367

8,378

5755964.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

10,517

10,130

5756120.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

14,507

13,590

5756221.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

53,677

45,949

5756610.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

5,972

5,503

5756639.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

7,322

7,132

5756659.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

12,569

12,095

5756793.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

3,067

2,947

5756833.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

3,966

3,678

5756880.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

1,752

1,570

5756904.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

6,667

6,229

5756992.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

4,513

4,331

5757071.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

2,170

2,065

5757091.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

19,828

18,524

5757333.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

8,518

7,894

5757453.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

641

620

5757466.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

853

807

5757477.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

3,516

3,391

5757537.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

5,401

5,183

5757607.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

9,346

5,793

5757702.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

1,075

1,040

5757731.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

600

521

5757738.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

6,997

6,714

5757861.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

6,796

5,909

5758046.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

15,490

14,358

5758201.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

1,774

1,702

5758228.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

3,059

2,912

5758263.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

2,218

2,043

5758291.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,772

4,753

5758638.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

6,001

5,785

5758926.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

4,042

3,891

5759071.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,318

5,098

5759291.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,828

1,759

5759456.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,531

5,267

5759579.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

763

633

5759587.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

10,853

10,370

5759876.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,571

5,292

5760007.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

3,892

3,227

5760099.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

32,202

30,615

5760649.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

3,233

3,099

5760713.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

3,942

3,746

5760772.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,565

1,478

5760813.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,341

5,138

5760912.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,020

980

5760929.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,781

1,650

5760954.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

2,929

2,752

5761007.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,557

5,333

5761124.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

11,996

10,518

5761379.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

6,168

5,881

5761544.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

2,892

2,784

5761579.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

13,789

13,082

5761810.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

3,435

3,266

5761846.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

496

470

5761857.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,167

4,853

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5761989.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

$

1,335

$

1,238

5762015.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,132

4,764

5762120.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,661

1,502

5762166.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

23,303

22,367

5762537.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

22,674

21,972

5763101.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,643

1,582

5763126.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

924

872

5763136.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

4,248

3,992

5763172.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

7,700

6,373

5763302.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

539

424

5763312.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,144

2,075

5763445.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

12,918

12,300

5763627.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,520

1,227

5763642.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,063

902

5763654.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

6,356

5,580

5763748.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

14,618

13,942

5763925.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

763

712

5763934.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

6,757

6,245

5764017.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

4,141

3,987

5764095.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

22,349

21,529

5764321.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,148

1,105

5764335.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

3,972

2,992

5764377.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

31,684

29,743

5764702.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,751

1,619

5764734.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

991

945

5764762.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,260

2,161

5764817.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,558

1,174

5764834.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

12,088

11,348

5765007.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

967

748

5765016.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

12,737

12,261

5765151.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,514

2,283

5765207.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

22,988

22,059

5765451.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

10,562

9,671

5765509.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

11,332

10,842

5765650.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,497

2,396

5765671.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

3,763

3,595

5765693.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

24,015

22,823

5765916.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

8,534

8,188

5765962.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

624

601

5765966.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

6,631

5,261

5765988.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

14,332

13,755

5766184.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

4,683

4,466

5766257.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,259

2,177

5766290.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

11,360

10,712

5766386.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

9,403

8,737

5766452.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

5,193

4,907

5766476.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

38,574

37,000

5767117.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

5,123

4,914

5767311.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,030

1,929

5767355.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

4,385

4,207

5767488.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,233

1,107

5767506.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,646

1,547

5767529.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

8,062

7,195

5767635.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,577

1,518

5767679.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

3,969

3,635

5767710.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,577

1,504

5767724.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

5,119

4,874

5767800.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,854

2,756

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5767893.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

$

16,012

$

14,669

5768116.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

18,910

17,207

5768358.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

707

643

5768373.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,375

2,132

5768433.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

3,369

2,959

5768454.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

11,599

11,105

5768566.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,175

2,087

5768603.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

10,743

10,392

5768956.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

9,615

8,925

5769044.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,343

1,293

5769057.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

4,949

3,457

5769075.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

4,571

4,386

5769110.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

42,355

40,367

5769509.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

989

925

5769533.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

27,368

26,033

5769683.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

22,843

21,123

5771803.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

1,512

1,178

5771831.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

4,103

3,853

5771900.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

886

844

5771903.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

51,721

49,592

5772569.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

2,648

2,546

5772634.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

713

678

5772653.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

16,703

15,859

5772877.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

451

436

5772891.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

3,725

3,607

5773007.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

4,190

3,875

5773064.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

1,940

1,845

5773069.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

5,351

5,029

5773116.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

3,729

3,255

5773135.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

16,688

15,690

5773499.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

18,733

17,574

5773687.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

14,402

13,622

5773851.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

735

681

5773884.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

2,135

2,061

5773916.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

3,019

2,863

5773948.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

23,639

22,665

5774293.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

4,826

4,599

5774362.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

3,814

3,657

5774399.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

5,713

5,541

5774484.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

2,637

2,522

5774528.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

4,275

4,096

5774574.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

3,352

3,165

5774609.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

41,485

33,234

5774898.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

11,367

10,927

5775036.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

14,674

13,985

5775189.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

4,536

4,255

5775226.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

8,802

8,440

5775290.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

1,583

1,512

5775311.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

21,847

20,869

5775456.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

1,168

1,128

5775492.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

6,876

5,099

5775559.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,137

3,016

5775609.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,388

2,270

5775623.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

83,051

73,005

5776756.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

32,248

30,633

5777081.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

17,129

16,425

5777274.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

446

434

5777289.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,380

3,096

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

65

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5777318.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

$

45,294

$

41,145

5777772.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

11,996

9,625

5777875.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

1,483

1,417

5777894.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,133

1,862

5777925.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,416

3,257

5777970.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,414

3,280

5777989.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,931

3,431

5778008.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

13,912

13,190

5778129.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,633

2,505

5778142.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

10,347

9,030

5778271.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

1,416

1,309

5778275.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

4,989

4,618

5778300.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,708

3,259

5778323.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

355

344

5778327.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

4,670

4,167

5778386.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

7,437

6,680

5778432.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,621

3,409

5778511.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

15,713

14,913

5778760.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

684

581

5778771.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

9,403

8,777

5778873.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

7,336

5,886

5778936.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

11,234

7,461

5779041.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,403

3,204

5779079.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

13,515

12,916

5779208.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

6,775

6,416

5779255.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

11,652

11,185

5779366.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

7,870

7,482

5779419.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

8,057

7,594

5779479.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

2,071

1,995

5779502.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

28,257

27,098

5779774.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

1,150

1,014

5779789.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

933

887

5779794.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

10,030

9,505

5779893.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

23,029

21,589

5780063.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

3,424

2,072

5780094.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

990

953

5780103.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

8,826

8,461

5780237.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

3,092

2,868

5780263.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

12,346

11,599

5780388.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

3,374

3,211

5780415.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

6,902

6,617

5780470.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

1,975

1,823

5780501.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

19,212

17,763

5780663.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

3,266

3,094

5780683.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

1,170

1,049

5781048.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

1,700

1,640

5781117.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

704

667

5781142.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

12,838

10,943

5781403.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

3,048

2,896

5781505.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

5,690

5,455

5781701.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

9,002

8,467

5781951.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

5,193

4,888

5782060.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

18,040

16,548

5782272.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

4,535

4,383

5782395.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

1,265

1,221

5782431.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

2,023

1,956

5782499.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

5,820

5,559

5783238.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

483

463

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5783248.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

$

4,200

$

4,027

5783310.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

4,263

4,011

5783381.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

1,745

1,492

5783398.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

5,863

4,670

5783477.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

2,951

2,269

5783491.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

2,987

2,771

5783515.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

2,325

2,219

5783554.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

2,006

1,837

5783602.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

37,597

36,042

5784296.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

448

434

5784327.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

11,055

10,597

5784773.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

6,285

5,450

5784874.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

4,164

3,858

5784912.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

7,274

6,902

5785220.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

698

672

5785243.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

8,826

8,459

5785593.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

4,562

4,374

5785803.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

3,423

3,282

5786043.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,545

1,364

5786113.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

16,250

15,575

5786523.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

17,015

16,011

5786875.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

816

786

5786901.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

3,576

3,430

5786975.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

884

852

5786990.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

12,295

11,807

5787218.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

7,816

7,295

5787273.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

335

311

5787282.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

5,007

4,763

5787318.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

2,718

2,567

5787363.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

7,556

7,096

5787444.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

7,291

6,938

5787643.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

60,933

57,255

5788546.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

5,107

4,683

5788576.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

5,102

4,886

5788637.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,343

1,306

5788699.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

2,120

2,032

5788750.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

16,520

15,516

5788894.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

7,345

6,970

5788936.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

858

815

5788939.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

10,931

10,244

5789111.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

14,953

13,703

5789241.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

36,991

35,456

5789584.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

11,373

10,913

5789861.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,138

1,024

5789885.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

607

559

5789889.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

13,170

12,571

5790020.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

4,620

4,395

5790170.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

2,992

2,815

5790218.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

8,457

7,700

5790293.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

6,533

6,153

5790315.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

567

547

5790337.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

33,665

31,934

5790812.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

2,709

2,436

5790851.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

7,484

7,120

5791057.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

1,453

1,347

5791104.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

491

467

5791127.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

13,269

12,598

5791543.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

4,980

4,774

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5791689.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

$

2,851

$

2,595

5791778.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

5,737

5,478

5792518.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

16,456

12,348

5793338.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

37,023

35,548

5794983.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

2,911

2,709

5795007.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

11,037

9,577

5795161.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

10,136

9,721

5795364.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

8,717

8,251

5795513.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

4,259

4,077

5795663.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

13,811

13,075

5795900.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

2,824

2,693

5795967.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

1,009

968

5796001.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

1,469

1,126

5796148.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

66,282

62,886

5796718.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

40,056

37,046

5796986.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

4,551

4,282

5797039.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

5,384

5,194

5797129.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

3,923

3,685

5801829.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

7,192

6,890

5801956.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

20,992

20,054

5802221.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,852

1,736

5802241.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

3,697

3,532

5802326.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

8,186

7,669

5802478.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

8,740

7,590

5802575.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

13,108

12,347

5803202.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,462

2,312

5803237.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

12,332

11,420

5803548.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

721

682

5803583.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

12,097

11,390

5803823.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,013

1,889

5803881.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,291

2,196

5803935.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

6,265

5,998

5804004.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

4,869

4,686

5804241.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

4,413

4,228

5804364.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

16,813

15,778

5804789.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

13,840

13,221

5804981.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,725

1,575

5805008.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

5,061

4,790

5805076.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,282

1,170

5805083.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

8,131

7,748

5805153.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

8,988

8,420

5805207.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

902

756

5805217.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

3,629

3,470

5805258.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

11,641

10,282

5805417.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,365

2,260

5805437.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

14,231

13,632

5805763.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

42,173

39,886

5806252.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

5,500

4,704

5806298.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

3,647

3,423

5806339.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

7,473

7,106

5806427.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

22,259

20,902

5806688.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,715

2,609

5806712.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

8,256

7,788

5806804.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

36,647

35,037

5807056.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

5,582

4,936

5807111.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

11,513

10,968

5807168.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

2,313

2,215

5807205.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

34,689

33,230

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5807888.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

$

13,454

$

12,352

5808714.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

4,394

4,209

5809201.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,586

1,374

5809262.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

7,615

7,208

5809584.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

7,725

7,340

5809950.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,819

1,721

5810040.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,678

1,554

5810099.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

11,169

10,411

5810334.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

7,018

6,675

5810480.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

8,763

8,124

5810761.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

3,763

3,602

5810852.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

5,926

5,681

5810977.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

4,154

3,949

5811083.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

27,836

26,385

5811386.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

46,434

37,768

5812068.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

16,158

14,581

5812223.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,755

1,503

5812232.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

57,097

54,285

5812636.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

504

482

5812645.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

22,345

19,141

5812804.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

4,935

4,629

5812884.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,969

1,822

5812918.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

4,709

4,527

5813145.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

744

724

5813184.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,676

1,262

5813190.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

3,485

3,354

5813253.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

11,227

9,098

5813310.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

1,128

949

5813328.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

3,496

3,323

5813372.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

3,989

3,800

5813432.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

3,644

3,475

5813462.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

3,243

3,036

5813478.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

1,045

991

5813492.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

10,702

9,160

5813600.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

4,135

3,921

5813649.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

1,884

1,804

5813659.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

929

890

5813668.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

2,569

2,416

5813707.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

30,803

28,964

5814005.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

1,177

1,020

5814016.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

7,573

5,723

5814092.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

1,533

1,476

5814123.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

6,034

5,535

5814180.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

9,653

9,091

5814299.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

2,063

1,948

5814316.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

856

830

5814332.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

1,198

1,081

5814351.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

2,877

2,717

5814372.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

1,928

1,855

5814411.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

15,896

15,101

5814576.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

3,914

3,749

5814610.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

9,148

8,728

5814701.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

2,330

2,232

5814719.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

20,089

18,058

5815259.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

7,917

7,457

5815447.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

11,433

10,153

5815722.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

9,547

8,058

5816538.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

8,447

8,106

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

67

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5816703.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

$

5,779

$

5,547

5816754.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

5,297

5,075

5816820.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

2,915

2,801

5816836.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

3,666

3,536

5816924.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,118

788

5816945.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

13,323

12,155

5817070.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

32,474

29,612

5817474.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,747

1,549

5817500.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,529

1,469

5817531.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

389

369

5817543.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,435

1,382

5817555.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,340

1,296

5817592.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

6,304

5,701

5817665.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

23,498

22,096

5817938.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

666

645

5817963.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,551

1,488

5818002.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

13,601

12,882

5818230.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

2,874

2,622

5818388.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

2,701

2,461

5818415.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

714

669

5818433.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

12,323

11,716

5818601.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,645

1,569

5818622.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

5,002

4,766

5818664.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

2,618

2,506

5818711.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

2,185

2,078

5818737.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

36,398

34,028

5819040.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,915

1,821

5819067.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

238

228

5819068.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

7,771

7,015

5819129.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

5,707

5,386

5819187.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

4,707

4,235

5819214.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

7,335

6,973

5819322.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,047

943

5819327.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

4,351

4,034

5819453.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

5,518

5,274

5819558.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

4,087

3,914

5819614.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

6,268

6,002

5819671.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

5,355

5,145

5819764.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,664

1,449

5819783.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

58,038

54,655

5820456.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

3,370

3,231

5820490.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

3,999

3,830

5820518.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

458

438

5820530.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,903

1,827

5820539.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

3,587

3,433

5820595.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,011

943

5820598.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

8,479

8,149

5820702.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

22,284

20,092

5820941.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,928

1,836

5820960.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

658

628

5820969.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

818

748

5820980.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,429

1,247

5821035.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

11,588

11,016

5821105.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

8,743

8,323

5821163.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

11,147

10,561

5821330.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

4,396

4,182

5821405.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

6,688

6,393

5821479.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

17,016

16,176

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5821715.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

$

18,188

$

17,285

5821898.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,753

1,674

5821925.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

11,091

10,667

5822008.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

2,299

2,181

5822026.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

3,403

3,258

5822054.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

2,756

2,639

5822090.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

6,751

6,461

5822138.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,281

1,228

5822160.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

4,048

3,869

5822182.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,386

1,347

5822219.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

9,204

8,586

5822270.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

2,519

2,385

5822284.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

12,154

11,622

5822407.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

4,046

3,268

5822414.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

2,119

2,032

5822447.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,528

3,357

5822462.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

5,695

5,409

5822516.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,260

1,218

5822553.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

5,249

4,639

5822628.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,281

1,169

5822641.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

10,488

10,035

5822817.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

15,249

14,462

5823030.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,994

1,817

5823058.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

175

170

5823064.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,055

1,013

5823084.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

4,317

4,118

5823133.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,575

3,398

5823175.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

10,217

9,776

5823257.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

691

657

5823261.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,362

1,311

5823283.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,864

1,770

5823292.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

5,155

4,938

5823345.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

2,027

1,701

5823355.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

7,136

6,842

5823490.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,697

1,605

5823515.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

2,996

2,838

5823553.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

6,450

5,923

5823613.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,272

2,851

5823640.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,106

2,955

5823665.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

4,285

4,104

5823710.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,615

2,832

5823731.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

82,036

78,559

5824287.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

21,258

20,355

5824501.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

19,427

18,403

5824742.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

4,853

4,585

5824775.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,259

1,214

5824788.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,568

3,413

5824813.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,973

3,804

5824880.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

15,608

14,629

5825002.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

35,998

29,364

5825354.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

5,529

4,300

5827264.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

5,197

4,902

5827314.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

13,937

13,329

5827424.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,657

3,437

5827480.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

9,681

9,197

5827616.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

7,472

7,152

5827733.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

9,504

8,001

5827842.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

7,668

5,365

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5827914.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

$

13,860

$

12,986

5828109.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

5,126

4,517

5828179.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

8,195

7,861

5828279.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,922

3,716

5828372.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

718

697

5828406.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

1,733

1,565

5828435.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

8,640

8,024

5828601.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

13,358

12,079

5828743.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

922

847

5828754.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

21,525

18,768

5828896.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

6,800

6,138

5828926.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

23,752

22,434

5829214.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

647

623

5829221.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

15,183

14,502

5829358.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

12,253

11,641

5829566.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,719

3,486

5829638.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,765

3,489

5829709.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

22,882

21,770

5830037.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

9,100

8,646

5830068.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,193

3,066

5830080.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

1,973

1,667

5830094.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

1,709

1,658

5830122.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

25,019

23,802

5830253.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

10,340

9,698

5830300.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

24,361

23,131

5830439.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

604

545

5830440.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,923

3,456

5830453.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

2,071

1,975

5830467.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,977

3,693

5830483.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

8,558

8,130

5830547.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

18,970

17,143

5830672.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

12,485

11,907

5830986.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,210

1,155

5831025.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,092

2,527

5831104.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

737

518

5831122.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,218

2,123

5831192.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,861

2,632

5831264.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,164

1,093

5831291.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,360

2,259

5831389.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,059

2,890

5831441.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

5,248

4,934

5831563.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

11,051

9,993

5831743.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,366

1,306

5831778.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,154

1,094

5831833.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

5,299

5,034

5831954.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

11,610

10,838

5832115.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

7,894

7,257

5832187.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

435

420

5832199.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,552

1,450

5832209.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

26,729

23,025

5832397.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,284

3,087

5832405.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

839

743

5832412.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

24,608

23,449

5832576.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

511

467

5832587.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,698

1,558

5832609.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,005

2,841

5832633.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,254

1,213

5832671.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

8,653

8,228

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5832768.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

$

2,706

$

2,575

5832837.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,323

2,124

5832873.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

13,141

12,477

5832969.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,497

3,344

5833003.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

30,667

29,351

5833299.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,089

2,935

5833321.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

6,764

6,447

5833390.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,049

1,017

5833408.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,072

1,941

5833417.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

22,501

21,279

5833530.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

4,397

4,189

5833543.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

5,145

4,906

5833560.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

3,307

3,169

5833580.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,020

992

5833598.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,537

2,429

5833602.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,516

1,465

5833615.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

9,522

7,790

5833657.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

8,577

8,148

5833696.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,280

1,236

5833703.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

19,093

17,850

5833785.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

33,783

31,949

5833961.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,085

948

5833962.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

5,909

5,592

5833982.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

10,066

9,410

5834028.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,131

988

5834044.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

4,136

3,830

5834072.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

4,819

4,619

5834294.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

2,997

2,588

5834318.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

8,782

8,325

5834370.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

2,408

2,318

5834391.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

2,441

2,344

5834411.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

10,266

9,778

5834476.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

5,948

5,641

5834520.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,137

1,076

5834526.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,566

1,470

5834539.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

6,014

5,755

5834585.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

5,483

5,097

5834630.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

16,548

13,613

5834744.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

3,106

2,769

5834761.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

35,818

33,190

5834939.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,660

1,572

5834951.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,120

1,061

5834960.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

19,140

18,185

5835079.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

713

643

5835081.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

8,006

7,662

5835114.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,847

1,767

5835132.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

4,151

3,945

5835175.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

4,508

4,282

5835205.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

6,423

5,909

5835254.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,547

1,472

5835271.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

488

462

5835279.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

3,555

3,273

5835313.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

14,793

13,619

5835408.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

4,456

4,280

5835452.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

34,269

26,338

5835728.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

9,070

8,679

5836016.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

2,810

2,461

5836083.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,315

1,253

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

69

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5836112.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

$

1,110

$

1,068

5836225.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

2,942

2,488

5836301.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

683

650

5836315.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,822

1,703

5836386.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

4,093

3,880

5836564.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

3,079

2,805

5836673.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

3,994

3,815

5836764.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

5,142

4,964

5836920.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

30,039

27,679

5837211.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

3,143

3,009

5837252.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,442

1,038

5837271.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

2,939

2,812

5837315.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

4,547

3,686

5837346.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

12,287

11,726

5837477.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

5,445

5,147

5837545.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

3,772

3,551

5837565.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,366

1,267

5837590.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

4,096

3,829

5837662.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

5,433

4,696

5837751.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

942

893

5837759.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

8,523

8,143

5837851.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

7,049

6,679

5837933.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,050

865

5837940.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

763

722

5837954.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

477

460

5837962.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

11,480

10,487

5838098.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

2,133

1,995

5839779.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,872

1,800

5839801.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

4,586

4,390

5839810.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,193

1,142

5839815.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

931

831

5839822.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

13,217

12,599

5839910.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

6,601

6,311

5839943.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,831

2,710

5839970.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

334

323

5839979.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

10,603

10,070

5840021.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,353

1,259

5840034.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

10,174

9,739

5840093.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,418

2,216

5840108.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

33,192

31,586

5840378.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

761

730

5840394.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

7,735

6,382

5840460.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,304

927

5840490.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

718

693

5840501.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

9,923

8,596

5840588.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

25,912

24,318

5840777.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

5,740

5,493

5840821.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

6,059

5,348

5840891.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

3,442

3,293

5840915.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

19,310

18,321

5841007.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

3,026

2,866

5841040.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,458

1,385

5841066.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

4,799

4,592

5841129.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

14,244

13,458

5841262.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,415

2,327

5841286.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

7,668

7,155

5841336.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,707

1,649

5841359.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

20,792

19,893

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5841495.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

$

3,775

$

3,201

5841516.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

52,923

50,261

5841824.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,384

2,217

5841858.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

349

338

5841864.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

611

555

5841881.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

3,969

3,546

5841927.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

6,963

6,551

5841975.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

13,827

12,966

5842048.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,839

2,587

5842056.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

7,424

7,104

5842093.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,247

1,736

5842110.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,111

864

5842118.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

849

812

5842131.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

4,687

4,448

5842176.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

12,140

11,004

5842330.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,450

2,302

5843371.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

6,153

5,845

5843433.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

17,754

16,427

5843590.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

6,638

6,250

5843657.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,448

1,372

5843713.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

8,476

8,060

5843810.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

13,223

12,563

5844026.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

21,631

20,704

5844243.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

10,608

10,152

5844353.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

5,888

5,526

5844419.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,600

2,325

5844459.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,513

2,423

5844473.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

3,767

2,970

5844510.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

9,364

8,881

5844567.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,379

1,273

5844575.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

8,955

8,580

5844650.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,596

2,442

5844671.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,603

1,432

5844682.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

3,884

2,732

5844696.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,679

1,613

5844710.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

6,423

5,976

5844757.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

7,577

7,223

5844795.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

11,172

10,362

5844863.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

3,453

3,215

5844885.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,215

1,127

5844889.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

15,745

14,645

5844996.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

36,948

35,401

5845295.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

166

161

5845304.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

947

903

5845312.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

677

641

5845320.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

4,773

4,490

5845343.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

92,849

81,405

5845892.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

3,051

2,920

5845909.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

8,401

7,817

5845971.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,523

2,390

5846004.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

8,870

8,290

5846033.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,404

2,300

5846054.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

921

857

5846077.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

11,705

10,984

5846176.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

890

820

5846195.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

3,133

2,969

5846242.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,644

2,524

5846403.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

812

758

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5848226.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

$

28,275

$

26,863

5848551.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

18,656

17,633

5848782.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,238

1,179

5848826.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

3,072

2,847

5848879.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

13,684

13,000

5849028.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,277

1,232

5849059.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,744

1,652

5849073.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

3,657

3,443

5849144.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

7,959

7,613

5849234.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

6,645

6,211

5849341.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

6,217

5,947

5849462.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,999

2,789

5849709.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,916

2,560

5849734.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,055

1,966

5849749.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,566

2,454

5849765.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,008

955

5849779.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

7,110

6,588

5849841.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

14,093

13,309

5849963.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

8,752

8,370

5850000.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,012

968

5850018.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

9,070

8,451

5850047.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,836

2,676

5850061.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,854

1,622

5850076.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

16,024

15,380

5850145.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

20,936

19,458

5850197.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

26,026

22,828

5850325.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

3,204

3,064

5850399.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

3,548

3,378

5850429.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

24,942

21,889

5850739.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

10,645

10,077

5850831.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

32,540

28,208

5851083.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

57,810

53,746

5851477.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

762

733

5851486.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

3,770

3,346

5851510.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,844

2,687

5851522.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

814

778

5851604.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,129

1,035

5851616.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,202

1,100

5851647.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,036

1,765

5851797.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

952

810

5851850.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

11,573

11,052

5851929.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

4,473

3,687

5851937.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

3,267

2,868

5851955.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

15,980

14,720

5852027.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,366

1,961

5852051.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,526

2,449

5852087.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

12,863

11,909

5852202.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

10,088

9,647

5852374.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

10,319

9,794

5852521.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

4,810

4,558

5852610.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,292

966

5852623.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,426

2,307

5852648.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,312

1,242

5852660.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

8,238

7,880

5852747.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

3,277

3,152

5852786.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,652

2,525

5852828.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,043

1,946

5852840.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

7,808

7,465

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5852937.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

$

710

$

589

5852953.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

22,138

21,117

5853145.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

787

760

5853164.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,828

2,710

5853182.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

17,729

16,920

5853262.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

11,024

10,240

5853327.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,240

1,174

5853330.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

10,826

9,838

5853384.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,610

2,504

5853413.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

786

714

5853422.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

4,792

4,442

5853485.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,142

1,095

5853490.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,953

2,824

5853509.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,195

2,078

5853518.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

39,018

34,894

5853694.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

4,116

3,879

5853740.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,104

1,676

5853750.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

15,430

14,519

5853856.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

848

754

5853859.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

63,558

56,775

5854191.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,003

951

5854209.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

871

830

5854219.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

5,868

5,611

5854247.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,836

1,641

5854254.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

6,129

5,857

5854288.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

4,140

3,824

5854311.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

11,804

9,653

5854366.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

4,795

4,441

5854386.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

10,141

8,377

5854668.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,491

1,365

5855181.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

10,618

10,080

5855232.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

2,187

1,810

5855237.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

1,119

1,023

5855240.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

14,665

13,885

5855318.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

25,785

24,347

5855428.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

3,341

3,034

5855442.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

12,429

10,546

5855500.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

2,675

2,486

5855510.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

7,947

7,431

5855555.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

829

793

5855583.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

4,805

4,595

5855611.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

2,775

2,612

5855634.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

30,058

28,045

5855780.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

1,024

979

5855789.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

9,037

8,265

5855830.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

4,431

3,994

5855853.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

857

730

5855858.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,441

1,922

5855867.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,028

974

5855877.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

4,445

4,109

5855903.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,498

2,319

5855911.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

3,323

3,140

5855925.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

6,773

5,919

5855966.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

11,018

10,556

5856032.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

11,862

10,990

5856088.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

11,899

11,117

5856144.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,481

1,418

5856151.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

5,029

4,733

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

71

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5856167.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

$

4,807

$

4,491

5856193.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

683

654

5856196.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,346

1,287

5856203.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

6,553

6,266

5856236.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

22,882

21,864

5856334.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,491

1,441

5856353.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,004

1,906

5856360.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,840

1,231

5856372.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,032

1,766

5856382.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

19,472

18,524

5856438.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

4,579

4,393

5856462.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

10,273

9,732

5856498.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,095

1,972

5856508.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

9,552

9,114

5856549.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

3,526

3,371

5856562.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,064

760

5856565.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,851

1,744

5856576.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,918

1,756

5856586.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,046

3,175

5856774.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

236

223

5856788.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

10,421

9,931

5856954.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

825

797

5856978.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,449

6,141

5857039.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,427

3,270

5857087.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

12,034

10,780

5857240.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,604

3,419

5857303.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,004

1,916

5857392.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,786

5,474

5857475.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,698

2,533

5857523.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,753

2,480

5857568.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,023

988

5857672.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,066

1,003

5860503.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,672

5,384

5860536.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

7,139

6,683

5860639.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

12,782

10,274

5860750.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,424

2,309

5860791.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,402

4,208

5860847.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,544

4,609

5860898.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,165

1,897

5860913.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

9,570

8,884

5860994.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,679

1,609

5861025.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

7,293

6,840

5861125.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

764

701

5861134.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

47,873

44,711

5861774.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

343

327

5861783.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

9,188

8,763

5861962.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,742

1,661

5861986.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,226

1,165

5861993.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,748

1,655

5862041.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,378

1,308

5862058.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

46,531

44,291

5862428.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,196

3,996

5862477.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,458

1,301

5862485.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,327

6,068

5862545.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,335

3,128

5862578.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

620

565

5862589.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,040

3,521

5862628.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

551

522

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5862630.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

$

6,380

$

5,866

5862637.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,647

6,354

5862693.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

7,198

6,335

5862731.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,088

855

5862734.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

36,650

33,989

5862950.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,576

3,347

5862967.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

514

484

5862969.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

8,538

8,107

5863019.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,093

2,951

5863049.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

21,190

20,150

5863319.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,927

2,610

5863356.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,471

3,295

5863373.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,965

6,648

5863415.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

13,496

12,722

5863521.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,660

3,499

5863548.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

9,557

9,057

5863609.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

469

453

5863618.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

727

515

5863628.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,484

3,233

5863655.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,381

2,276

5863665.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,908

5,644

5863729.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

17,022

16,329

5863869.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

22,891

21,961

5864030.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,146

1,100

5864060.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

19,230

18,201

5864148.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

19,792

18,918

5864228.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

14,434

13,667

5864294.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,381

2,235

5864327.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,544

1,462

5864352.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,784

4,486

5864411.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

15,481

14,849

5864744.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,886

1,772

5864802.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

20,053

19,209

5865153.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

472

451

5865157.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,753

5,475

5865238.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,289

2,188

5865261.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,641

1,556

5865278.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,534

6,246

5865366.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

624

569

5865381.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,863

2,679

5865399.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

8,560

8,170

5865470.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,546

3,388

5865518.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,181

1,108

5865523.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,773

5,537

5865593.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

29,281

24,448

5865857.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,708

4,500

5865907.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,948

4,616

5865934.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,156

1,093

5865941.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,655

5,162

5865971.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

850

821

5865989.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

759

707

5866003.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,340

1,275

5866011.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,771

2,630

5866043.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

9,636

8,615

5866142.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

10,476

9,733

5866235.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

24,195

22,842

5866310.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

47,971

42,889

5866568.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,801

3,434

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5866601.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

$

5,788

$

5,528

5866656.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

17,557

16,763

5866762.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

33,244

31,609

5866864.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,779

3,249

5866900.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,374

2,263

5866921.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,428

5,188

5866944.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

20,047

18,231

5867135.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

11,077

10,281

5867175.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,634

3,486

5867200.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,737

4,518

5867235.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,947

1,883

5867264.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,809

6,331

5870201.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

85,178

81,378

5871024.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

9,630

9,200

5871259.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,074

1,957

5871297.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

8,674

8,287

5871444.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

8,193

7,749

5871545.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,112

980

5871558.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,423

2,286

5871586.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

10,266

9,633

5871768.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,694

1,621

5871796.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

26,222

24,917

5872001.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,426

2,325

5872044.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,110

2,018

5872058.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

12,582

11,616

5872177.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

4,248

4,029

5872196.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

16,983

15,572

5872312.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,225

1,094

5872318.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,715

1,470

5872348.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

562

465

5872351.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,641

2,514

5872378.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

553

495

5872385.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,791

1,700

5872399.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

11,863

11,343

5872463.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

636

612

5872477.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

3,952

3,717

5872494.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

15,648

12,876

5872625.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,918

2,608

5872666.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,972

2,805

5872698.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

5,421

5,160

5872776.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

6,977

6,595

5872842.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

4,101

3,916

5872854.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

17,846

16,716

5872980.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

4,852

4,601

5872993.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

7,185

5,912

5873005.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

9,219

8,564

5873069.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

7,433

7,049

5873138.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

5,087

4,241

5873158.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,945

1,783

5873189.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,484

2,392

5873221.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

7,699

7,341

5873315.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

6,992

6,260

5873393.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

583

549

5873405.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,681

2,561

5873420.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

3,594

3,452

5873613.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

11,863

10,806

5873709.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

3,226

3,081

5873758.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

10,087

9,518

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5873819.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

$

1,809

$

1,591

5873837.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

6,798

6,333

5873988.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

42,018

38,975

5874283.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

4,001

2,809

5874329.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,841

1,703

5874367.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,921

2,790

5874415.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,713

2,592

5874444.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,638

2,519

5874482.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

657

547

5874484.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,506

2,369

5874516.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,829

2,671

5874556.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

8,422

7,824

5874700.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

10,752

10,075

5874834.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

16,476

15,582

5874961.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,351

2,105

5874986.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

17,792

16,901

5875168.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

5,314

4,826

5875245.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

3,040

2,883

5875298.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

901

857

5875319.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

7,705

7,004

5875427.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

747

671

5875429.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

32,523

30,629

5875785.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,056

1,912

5875789.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

3,391

3,204

5875826.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

963

925

5875842.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,339

1,258

5875867.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

7,745

7,328

5875928.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

8,652

6,372

5875953.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

5,024

4,803

5875994.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

3,812

3,668

5876036.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

10,915

10,352

5876096.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,740

1,644

5876115.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

6,007

5,463

5876142.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

11,809

11,214

5876221.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

7,159

5,327

5876275.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

581

528

5876285.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

7,306

6,893

5876325.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,423

1,353

5876338.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

3,269

3,111

5876357.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

5,182

4,795

5876406.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

8,718

7,939

5876464.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

836

763

5876469.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

621

600

5876475.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

84,830

81,058

5877063.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,155

1,092

5877065.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,886

1,613

5877071.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

21,005

19,866

5877199.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

9,563

8,882

5877271.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

3,534

3,385

5877347.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

3,722

3,551

5877383.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

5,048

4,839

5877437.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

1,609

1,552

5877458.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

21,070

19,655

5877597.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

16,572

15,632

5877714.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

5,182

4,574

5877738.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

5,077

4,776

5877776.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

1,177

906

5877780.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

21,838

20,858

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

73

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5877969.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

$

8,608

$

8,277

5878075.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

5,468

5,223

5878126.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

1,062

1,018

5878138.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

9,237

8,583

5878223.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

6,389

6,095

5878273.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

4,034

3,853

5878297.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

2,105

1,958

5878314.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

19,105

16,698

5878459.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

5,792

5,533

5878517.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

12,238

11,755

5878636.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

3,962

3,804

5878672.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

2,822

2,618

5878689.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

7,463

6,978

5878766.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

706

681

5878776.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

2,410

2,312

5878790.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

7,771

7,411

5878846.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

1,590

1,421

5878865.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

785

695

5878875.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

7,558

7,142

5878932.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

862

820

5878941.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

753

698

5878952.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

1,918

1,840

5878961.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

9,095

7,797

5879023.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

1,967

1,888

5879045.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

8,812

8,353

5879122.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

425

297

5879125.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

1,147

934

5879136.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

944

880

5879150.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

6,591

6,249

5879191.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

12,788

12,169

5879290.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

9,803

9,282

5879492.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

3,649

3,485

5879544.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,999

1,790

5879597.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

6,856

6,548

5881194.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,051

1,007

5881215.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

6,873

6,470

5881355.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

14,610

13,939

5881494.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,961

1,878

5881542.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

36,045

33,737

5881904.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

3,057

2,894

5881995.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

8,556

8,006

5882153.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,150

1,109

5882210.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

11,118

10,232

5882323.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,618

1,519

5882346.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

10,456

9,843

5882517.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

19,279

18,449

5882817.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

2,700

2,579

5882844.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,342

1,072

5882869.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

2,794

2,540

5882889.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

3,893

3,545

5882928.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,118

1,000

5882935.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

5,352

5,074

5883001.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

41,427

39,112

5883334.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,070

956

5883356.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

4,370

4,041

5883414.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

6,640

6,160

5883482.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

5,358

5,116

5883527.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,796

2,581

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5883562.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

$

5,190

$

4,977

5883652.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

5,525

5,140

5883707.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

6,175

5,680

5883767.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

17,900

16,649

5883938.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,182

1,089

5883949.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,077

1,944

5883984.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

8,487

8,075

5884117.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,139

986

5884128.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,162

2,072

5884159.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

5,193

4,935

5884190.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

33,976

27,795

5884450.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

6,058

5,723

5884477.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,694

1,284

5884483.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

6,884

6,383

5884521.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

831

698

5884529.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,781

1,683

5884558.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

34,149

32,569

5884736.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

24,598

23,493

5884916.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,055

1,840

5884920.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,906

1,795

5884947.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

11,886

11,048

5885059.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

14,229

13,502

5885116.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

11,172

8,180

5885192.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,546

2,055

5885208.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,564

2,416

5885237.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

3,709

3,541

5885284.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,130

1,078

5885297.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,675

1,614

5885304.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,812

2,695

5885325.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,940

1,860

5885371.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

21,947

20,882

5885570.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

30,148

28,614

5885720.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,771

1,692

5885736.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

716

690

5885742.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

3,219

3,098

5885775.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

3,802

3,562

5885799.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

10,675

10,048

5885850.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

5,131

4,888

5885864.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

5,147

4,863

5885879.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

12,527

11,725

5885920.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

16,422

15,565

5885966.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

11,248

10,631

5886041.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,285

2,176

5887879.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

32,635

30,348

5888198.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

8,270

7,894

5888286.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

12,252

11,549

5888392.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

425

411

5888420.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

14,346

13,435

5888626.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

13,931

13,074

5888804.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,911

3,565

5888851.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,717

1,638

5888881.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,118

1,859

5888901.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

10,778

8,720

5889019.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

900

816

5889031.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,643

2,511

5889059.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,108

2,882

5889080.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,260

2,154

5889094.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,672

2,533

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5889127.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

$

3,983

$

3,714

5889178.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

8,778

8,222

5889273.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

22,000

20,302

5889436.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

27,776

25,767

5889590.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,139

1,064

5889597.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,915

3,592

5889627.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

820

792

5889640.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

23,496

21,850

5889749.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

606

586

5889750.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,075

2,877

5889757.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

4,986

4,790

5889804.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

10,534

10,105

5889875.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,756

1,571

5889895.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

7,596

7,224

5889945.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

491

462

5889963.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,582

2,459

5889976.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

7,920

7,420

5890012.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

53,396

49,532

5890338.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,570

3,375

5890358.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,743

2,651

5890376.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

9,501

8,198

5890413.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,481

3,299

5890432.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

6,586

6,075

5890488.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

14,319

13,281

5890615.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,322

1,024

5890620.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,514

3,303

5890643.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

39,408

36,151

5890904.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,757

2,609

5890961.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

10,998

10,294

5891060.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

4,284

4,082

5891100.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,925

2,787

5891128.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

4,997

4,662

5891172.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

4,481

4,278

5891203.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

4,905

4,582

5891237.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

6,104

5,713

5891279.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,991

1,864

5891294.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,145

2,980

5891341.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

7,588

7,258

5891408.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

6,377

6,087

5891419.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

66,080

60,982

5892075.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

6,659

6,356

5892149.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

18,230

17,145

5892295.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,949

3,656

5892308.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,008

2,836

5892313.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

5,713

5,463

5892370.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

10,082

9,490

5892438.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

5,200

4,476

5892483.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

659

637

5892493.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,849

4,625

5892565.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,679

2,564

5892624.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

5,116

4,286

5892683.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

69,968

66,398

5893216.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,224

1,120

5893222.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

10,981

10,475

5893299.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

17,343

15,914

5893366.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

15,409

14,155

5893475.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

855

807

5893496.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

9,806

9,234

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5893541.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

$

5,178

$

4,455

5893549.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,965

3,758

5893590.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,999

4,303

5893657.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

6,143

5,451

5893687.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

13,577

13,029

5893804.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,549

3,353

5893815.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,195

897

5893827.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,118

3,909

5893845.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,329

4,124

5893867.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,400

2,274

5893887.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

7,848

7,463

5893929.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

833

786

5893961.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,518

1,424

5893991.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

6,903

6,551

5894019.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,274

2,066

5894046.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,174

1,120

5894062.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,680

1,601

5894077.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,904

1,793

5894091.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,103

2,864

5894137.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

10,617

10,116

5894201.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,141

1,095

5894207.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

9,189

8,772

5894251.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

7,961

7,361

5894294.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,912

1,788

5894298.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,834

2,650

5894322.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

5,507

5,082

5894334.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

696

620

5894336.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

7,755

6,936

5894382.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

6,232

5,725

5894435.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

1,253

957

5894448.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

5,052

4,822

5894493.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

895

865

5894515.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

594

572

5894525.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

21,028

18,485

5894683.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

4,883

4,651

5894734.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

4,035

3,835

5894768.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

21,157

20,019

5894983.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

3,063

2,918

5895014.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

4,424

4,175

5895068.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

1,341

1,266

5895088.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

17,884

16,430

5895255.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

2,866

2,701

5895334.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

1,944

1,858

5895353.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

8,915

8,448

5895432.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

11,251

10,631

5895532.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

4,195

4,006

5895576.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

14,085

13,433

5895712.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

8,108

7,740

5895770.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

837

789

5895783.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

4,578

3,730

5895809.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

4,854

4,601

5896008.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,681

1,600

5896021.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

860

781

5896026.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

2,332

2,227

5896100.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,680

1,459

5896158.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

7,205

6,879

5896291.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

9,809

9,362

5896450.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

967

814

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

75

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5896499.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

$

2,433

$

2,323

5896558.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

4,178

3,830

5896681.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,488

1,427

5896738.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

16,053

15,059

5897034.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

22,575

21,528

5897388.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

6,184

5,903

5897504.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

4,526

4,286

5897545.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

25,585

24,374

5897823.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

5,428

4,777

5897891.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

765

734

5897909.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

991

953

5897943.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

6,343

5,906

5897988.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

10,664

10,047

5898132.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

2,727

2,580

5898152.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

4,631

4,325

5898202.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

335

324

5898206.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

12,420

11,766

5898320.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

12,226

9,931

5898401.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,859

1,761

5898446.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

34,124

31,766

5898769.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

25,705

23,543

5898955.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

2,359

2,203

5898987.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,181

1,106

5899009.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

24,452

22,809

5899288.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

820

754

5899301.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

71,167

67,095

5899733.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,799

5,492

5899791.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

3,715

3,546

5899826.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

6,448

6,020

5899936.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,075

4,832

5900021.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

3,971

3,561

5900058.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,047

1,977

5900093.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

3,732

3,149

5900145.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

3,431

3,153

5900164.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

7,328

6,942

5900232.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,670

2,537

5900270.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

6,294

6,006

5900323.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

1,631

1,559

5900332.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,697

5,222

5900369.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

1,682

1,236

5900390.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

23,039

21,868

5900600.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

9,064

8,622

5900766.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

24,389

23,218

5900915.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

1,382

1,304

5900918.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

14,398

12,685

5900989.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,831

5,565

5901031.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

4,944

4,676

5901063.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

1,224

1,098

5901073.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

13,377

12,671

5901163.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

19,314

18,233

5901345.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

7,457

6,976

5901389.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

10,387

9,702

5901453.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

73,323

69,065

5901854.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

34,876

32,962

5902017.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,331

2,243

5902032.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,191

2,070

5902038.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,653

2,045

5902042.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

864

817

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5902048.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

$

6,936

$

6,671

5902092.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

10,917

10,281

5902134.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

16,782

15,980

5902210.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

10,443

8,614

5902248.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

4,165

3,974

5902277.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

6,163

5,882

5902349.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,317

1,257

5902356.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

13,877

13,244

5902464.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

6,118

5,665

5902512.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,929

1,806

5902514.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,891

1,784

5902532.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

6,834

6,281

5902608.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

12,117

11,597

5902732.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

8,874

8,446

5902832.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

10,498

10,007

5902973.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

9,083

8,713

5903081.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

3,552

3,323

5903117.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

5,144

4,891

5903161.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

9,142

8,739

5903304.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

815

785

5903306.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

3,135

3,001

5903341.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,994

2,836

5903364.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

18,337

17,433

5903521.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,999

1,906

5903542.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

9,621

9,157

5903615.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

7,363

7,017

5903653.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

3,629

3,369

5903660.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

37,270

35,272

5903864.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,296

1,873

5903888.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

12,054

11,444

5904017.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,163

1,098

5904032.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

330

319

5904045.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

3,631

3,429

5904072.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

17,246

14,679

5904231.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,351

2,213

5904259.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

5,316

4,919

5904300.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

19,946

18,980

5904429.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,461

2,292

5904496.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,584

1,509

5904548.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

6,130

5,807

5904600.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,367

2,224

5904611.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

460

429

5904620.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

29,018

27,379

5904836.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,450

1,385

5904852.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

20,917

20,092

5904969.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,101

1,959

5904986.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

4,769

4,279

5905047.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

9,889

9,348

5905123.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

3,174

3,000

5906768.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

6,849

6,398

5906858.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

11,942

11,305

5906991.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

4,273

3,913

5907039.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,655

3,402

5907084.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

16,331

15,067

5907328.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

4,809

4,492

5907441.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

12,780

12,099

5907608.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

14,173

13,522

5907767.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,526

3,372

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5907816.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

$

37,840

$

35,135

5908240.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

33,907

31,993

5908488.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

2,157

1,958

5908510.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

2,832

2,702

5908532.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,520

1,454

5908547.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,779

3,495

5908564.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,182

3,028

5908583.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

8,254

7,786

5908638.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,034

2,813

5908659.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

19,157

17,973

5908768.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

51,959

47,691

5909015.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,650

3,473

5909079.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

3,727

3,555

5909132.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

4,550

4,327

5909190.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

2,997

2,699

5909223.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

37,035

34,631

5909637.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

14,302

13,538

5909779.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

5,198

4,958

5909856.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,854

1,768

5909862.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,939

1,831

5909898.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

23,842

22,551

5910111.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

19,071

16,996

5910344.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

3,850

3,637

5910384.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

3,538

3,374

5910415.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

9,814

9,350

5910496.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

20,271

19,271

5910733.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

10,359

9,791

5910848.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,960

2,803

5910869.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

11,427

9,734

5911018.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,182

2,053

5911038.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,340

2,162

5911063.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

1,670

1,456

5911080.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,678

2,532

5911116.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

28,064

26,127

5911367.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

8,499

8,033

5911495.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

74,711

70,764

5911900.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

4,785

4,505

5911917.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

10,152

9,670

5912002.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

4,191

3,997

5912024.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

15,767

14,820

5912237.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

3,235

3,085

5912274.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

15,671

14,800

5912389.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

29,703

28,151

5912535.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

1,482

1,395

5912546.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

545

524

5912551.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

355

344

5912555.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,996

2,740

5912573.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

20,555

18,814

5912644.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

1,363

1,246

5912645.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

5,450

5,001

5912681.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

7,834

7,172

5912706.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

29,852

28,156

5912834.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

7,509

7,135

5912886.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,147

2,040

5912908.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

5,301

4,991

5912999.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

11,864

11,164

5913035.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

55,561

52,389

5913254.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

18,934

17,929

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5913382.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

$

1,512

$

1,414

5913407.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

9,490

8,930

5913461.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

914

868

5913469.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,649

1,582

5913481.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

973

928

5913483.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

2,411

2,302

5913503.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

2,735

2,608

5913528.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,328

1,261

5913539.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

9,606

9,078

5913572.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

12,216

11,285

5913628.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,328

1,260

5913641.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

2,787

2,640

5913655.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

19,832

18,140

5913759.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

3,494

2,977

5913777.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

2,755

2,645

5913800.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

2,123

2,024

5913812.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

5,052

4,831

5913838.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

15,609

14,688

5913931.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

2,763

2,610

5913943.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

3,736

3,558

5913970.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

4,212

4,003

5913989.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

3,220

3,020

5914009.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

4,661

4,229

5914043.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,781

1,692

5914062.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

9,231

8,873

5914158.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

2,675

2,435

5914172.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,786

1,650

5914183.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

10,579

10,036

5914249.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

5,087

4,549

5914271.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,744

1,542

5914290.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

6,480

5,790

5914330.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

2,057

1,924

5914364.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,610

1,522

5914387.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,576

1,487

5914396.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

2,330

1,807

5914411.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

5,927

5,418

5914444.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

15,220

14,070

5914535.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

8,083

7,035

5914576.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

4,563

4,312

5914607.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

3,063

2,872

5914630.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

5,963

5,703

5914689.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

3,119

2,974

5914707.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,036

993

5914717.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

10,565

9,977

5914931.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

763

733

5914936.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

2,394

2,295

5914985.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

16,769

15,819

5915203.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,096

1,050

5915212.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

3,405

3,177

5915290.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

14,434

13,502

5915505.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

20,329

18,923

5915817.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,797

1,620

5915849.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

17,900

16,941

5916049.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

6,416

5,922

5916096.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

170

163

5916105.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

4,962

4,731

5916146.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

2,628

2,248

5916175.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

4,583

4,357

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

77

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5916213.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

$

820

$

766

5916217.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

11,859

11,218

5916362.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

11,342

10,815

5916984.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

12,477

11,609

5917094.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

4,673

4,438

5917148.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

14,613

13,672

5917279.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

5,322

4,591

5917290.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

8,209

7,770

5917306.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

40,078

38,148

5917601.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

10,784

10,234

5917707.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

4,927

4,313

5917741.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

3,361

3,174

5917799.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

34,046

32,485

5918081.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,973

1,837

5918143.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

7,774

7,126

5918248.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

16,731

15,723

5918362.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

18,024

16,829

5918419.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,256

1,191

5918425.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,100

1,062

5918436.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,236

1,165

5918443.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

10,764

10,067

5918506.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

5,853

5,590

5918534.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

15,679

14,007

5918614.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,117

2,435

5918627.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

42,774

40,738

5918735.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,141

1,079

5918737.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,009

904

5918756.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

6,656

5,903

5918793.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

4,356

4,116

5918832.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

12,121

11,333

5918923.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,696

2,570

5918944.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,058

1,010

5918954.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,790

3,614

5918990.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

8,539

7,825

5919078.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,021

959

5919099.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

882

840

5919120.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

661

605

5919131.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,329

2,228

5919179.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

5,053

4,820

5919215.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

9,472

9,031

5919330.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

36,095

34,066

5919584.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

7,655

7,161

5919614.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,803

1,665

5919616.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,920

2,731

5919638.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

7,951

7,510

5919673.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

5,426

5,135

5919710.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,716

3,544

5919739.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,198

1,123

5919762.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,581

1,414

5919774.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

23,517

22,216

5919917.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

6,078

5,784

5919977.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

17,917

17,102

5920829.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,834

1,748

5920833.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

50,836

48,094

5921186.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

4,931

4,681

5921220.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,790

1,669

5921237.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

5,601

5,252

5921268.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,718

2,487

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5921285.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

$

16,792

$

15,655

5921428.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

4,577

4,188

5921481.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

25,974

24,695

5921773.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,343

3,184

5921781.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,431

1,305

5921786.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

5,992

5,743

5921822.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

5,687

5,407

5921872.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

6,985

6,592

5921918.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

28,399

26,707

5922194.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,963

3,729

5922253.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

537

508

5922328.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

19,688

18,633

5922499.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

7,327

6,968

5922564.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,098

2,924

5922627.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

40,895

39,000

5922903.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

997

922

5922914.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,831

2,704

5922953.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

7,932

7,567

5923000.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,488

3,281

5923022.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,257

3,070

5923047.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

10,378

9,824

5923099.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

4,556

4,337

5923146.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

6,697

6,262

5923203.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

18,576

17,575

5923331.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

6,078

5,733

5923394.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

9,674

9,222

5923448.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

1,408

1,344

5923457.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,146

3,012

5923487.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

48,965

46,496

5923862.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,086

1,913

5923878.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,535

3,306

5923896.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

38,280

36,448

5924078.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

12,101

11,566

5924137.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

8,539

8,195

5924202.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

9,929

9,286

5924262.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,092

1,968

5924268.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,194

3,001

5924290.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

9,544

9,007

5924327.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,313

2,194

5924346.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,984

3,799

5924388.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,182

2,018

5924394.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

18,576

17,495

5924508.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

3,039

2,865

5924530.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

5,311

4,952

5924566.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

11,910

11,333

5924782.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

15,076

13,993

5924891.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

8,716

8,211

5924934.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,008

1,810

5924948.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

7,002

6,623

5925029.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

4,816

4,547

5925048.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

17,727

16,949

5925153.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

5,296

5,031

5925192.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

1,863

1,761

5925223.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

7,537

7,185

5925255.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,952

2,833

5925282.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

25,504

24,174

5925421.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

21,029

19,233

5927005.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,895

5,564

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5927080.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

$

8,436

$

7,222

5927099.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

21,958

20,997

5927323.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

12,243

11,580

5927470.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

12,019

11,155

5927600.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

2,471

2,391

5927686.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

772

747

5927695.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,331

4,956

5927803.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

1,184

1,115

5927812.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

7,423

6,339

5927900.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

2,796

2,624

5927931.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

10,670

10,072

5928081.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

19,095

16,964

5928311.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

11,912

11,201

5928459.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

10,888

10,298

5928628.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

1,828

1,615

5928641.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

6,612

6,255

5928686.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,754

5,509

5928731.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

25,058

23,655

5928919.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,075

4,732

5928964.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

4,109

3,830

5928989.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

8,278

7,899

5929041.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,536

5,304

5929100.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

2,403

2,313

5929129.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

20,648

19,657

5929388.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

98,988

84,911

5930217.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,296

4,981

5930281.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

7,498

6,483

5930291.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

6,263

5,837

5930311.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

28,023

26,101

5930486.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

6,241

5,231

5930500.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

7,542

7,235

5930510.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

45,167

42,847

5930747.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

11,834

11,267

5930804.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

9,101

8,676

5930851.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

9,088

8,483

5930895.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,639

3,434

5930913.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

473

455

5930915.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,610

3,301

5930934.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,709

3,497

5930956.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

14,256

13,624

5931035.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

861

827

5931040.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

7,291

6,896

5931080.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,884

1,779

5931412.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,322

2,100

5931443.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

4,836

4,565

5931517.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

4,763

4,440

5931541.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,651

3,487

5931600.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,844

3,687

5931664.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,251

3,097

5931689.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

12,667

11,935

5931767.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,235

2,932

5931806.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,012

928

5931818.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

6,783

6,343

5931866.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

4,186

3,833

5931890.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

483

464

5931905.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

8,172

7,729

5931964.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

9,862

9,403

5932026.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

5,368

5,015

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5932065.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

$

2,097

$

1,917

5932090.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

10,192

9,661

5932226.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,469

2,299

5932230.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,405

2,293

5932279.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

874

772

5932293.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,628

2,437

5932337.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,732

2,523

5932447.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

4,567

4,312

5932504.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,473

1,416

5932524.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,713

1,628

5932551.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,748

1,625

5932569.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,413

3,057

5932601.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,635

1,520

5932622.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,087

992

5932633.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,873

1,689

5932677.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

18,982

18,059

5932876.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

23,220

21,854

5933094.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

35,729

33,356

5933407.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

5,809

5,545

5933469.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,533

3,204

5933493.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,542

1,462

5933571.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

20,602

19,471

5933734.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

5,726

5,358

5933789.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

4,647

4,395

5933888.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,187

4,819

5933917.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

1,307

1,228

5933926.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

868

690

5933930.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

1,618

1,549

5933934.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

764

604

5933938.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

6,811

6,445

5933969.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

1,349

1,161

5933972.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

9,409

8,862

5934009.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

7,286

6,703

5934044.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

3,196

2,752

5934059.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

1,575

1,284

5934070.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

1,197

1,083

5934080.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,083

4,807

5934117.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

6,666

6,304

5934173.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

2,732

2,606

5934186.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,074

4,749

5934219.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

36,918

34,126

5934371.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,127

4,703

5934399.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,883

5,516

5934416.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,919

5,125

5934438.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

11,239

10,628

5934487.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

4,033

3,181

5934507.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

8,473

8,091

5934555.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

4,322

4,068

5934579.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

4,893

4,629

5934610.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,672

2,533

5934621.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,768

2,203

5934628.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

10,335

9,663

5934692.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

3,592

3,360

5934701.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,027

1,543

5934712.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

4,024

3,842

5934726.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,452

2,276

5934730.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,565

2,211

5934739.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,748

2,627

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

79

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5934761.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

$

1,732

$

1,568

5934767.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

20,272

19,174

5934894.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

257

241

5934895.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

6,005

5,724

5934944.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

17,511

16,435

5935049.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

3,707

3,481

5935068.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

20,919

19,153

5935365.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

7,965

7,567

5935466.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,697

2,575

5935505.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

4,123

3,891

5935553.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

12,181

11,519

5935673.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

3,534

3,322

5935748.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,309

2,186

5935796.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,245

2,146

5935851.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

22,126

20,521

5936150.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

16,469

15,575

5936844.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

663

593

5936856.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,711

2,592

5936902.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,702

1,361

5936923.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

11,684

10,486

5937030.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,482

1,412

5937044.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

14,823

13,932

5937119.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

396

382

5937124.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

365

344

5937129.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

4,057

3,865

5937145.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,252

1,789

5937187.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,999

1,906

5937189.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,126

1,896

5937213.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

9,879

9,207

5937302.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

5,932

5,682

5937372.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

6,665

6,167

5937439.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

3,673

3,474

5937475.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,065

1,945

5937509.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

33,362

31,463

5937824.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,968

1,868

5937833.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

6,889

6,511

5937918.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,246

2,142

5937927.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

6,820

6,036

5937996.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,225

2,120

5938005.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

3,524

3,261

5938059.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

7,435

7,093

5938155.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,973

2,735

5938166.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

5,968

5,504

5938253.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,220

2,114

5938321.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

10,799

9,631

5938431.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

2,872

2,739

5938444.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

7,894

7,561

5938503.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

7,626

7,171

5938564.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

5,281

4,976

5938584.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

12,035

10,649

5938667.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

12,688

10,144

5938739.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

16,580

15,677

5938983.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

10,613

9,909

5939030.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

5,213

4,942

5939062.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,747

1,588

5939139.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,752

2,627

5939221.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,587

2,400

5939251.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

29,359

28,098

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5939429.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

$

4,590

$

4,322

5939447.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

24,114

22,769

5939494.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

4,955

4,700

5939503.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

4,678

4,369

5939514.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

7,724

7,398

5939542.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

24,598

19,553

5939626.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

4,112

3,890

5939655.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,432

1,378

5939663.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

32,946

31,081

5939824.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

7,193

6,717

5939895.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

15,584

14,330

5940029.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

7,849

7,511

5940087.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

4,388

4,107

5940121.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

3,388

3,228

5940153.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,427

2,294

5940167.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

7,295

6,956

5940207.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,793

1,684

5940224.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

72,592

68,131

5940582.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

20,591

19,484

5940653.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

8,631

8,079

5940667.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

885

762

5940679.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,800

1,488

5940682.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

24,905

23,292

5940736.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

4,336

4,067

5940755.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

6,492

6,062

5940780.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,583

1,479

5940792.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,380

2,271

5940805.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,942

1,798

5940809.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,467

1,388

5940822.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

41,112

38,814

5940907.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

28,617

27,066

5941017.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

20,725

19,637

5941277.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

8,400

7,874

5941349.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

4,641

4,421

5941367.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

12,700

12,055

5941409.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,492

2,314

5941415.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

10,958

10,418

5942908.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,553

5,222

5942948.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

9,479

8,797

5942978.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,816

5,424

5943004.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,079

1,003

5943014.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

6,125

5,574

5943067.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,083

1,008

5943071.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

311

254

5943080.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,896

2,703

5943088.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

6,015

5,598

5943110.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,102

1,927

5943120.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,320

2,170

5943133.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,677

5,243

5943176.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,594

4,148

5943209.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

296

264

5943210.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

10,327

9,624

5943289.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,782

1,635

5943309.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

12,331

11,461

5943401.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,651

2,451

5943421.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

7,839

7,380

5943517.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,763

2,587

5943527.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,707

1,580

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5943532.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

$

7,775

$

7,180

5943656.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

12,788

11,974

5943792.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

11,931

10,992

5943919.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,386

1,280

5943947.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,399

3,186

5943975.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,372

1,268

5944007.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

521

486

5944014.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,206

1,123

5944020.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

6,045

5,659

5944064.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

7,277

6,739

5944124.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,232

1,138

5944130.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,643

5,314

5944159.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,204

1,103

5944176.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

19,201

18,088

5944394.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

7,227

6,719

5944413.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,103

1,950

5944430.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,064

3,731

5944449.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

63,763

59,871

5944806.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,527

3,263

5944849.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,084

4,744

5944891.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

9,910

9,162

5944965.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,437

1,308

5944978.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,386

4,062

5945038.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,604

4,220

5945082.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,501

4,269

5945097.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

7,288

6,823

5945144.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

6,353

6,015

5945191.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,439

3,178

5945214.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,497

2,313

5945226.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

6,235

5,847

5945249.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,004

923

5945256.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,955

3,671

5945273.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,885

3,563

5945285.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,784

1,646

5945294.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,628

1,509

5945299.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

42,228

39,440

5945466.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,078

1,823

5945483.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,933

3,693

5945497.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

8,375

7,864

5945528.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,130

1,045

5945529.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

11,151

10,367

5945567.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

8,676

8,068

5945607.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

14,802

13,716

5945680.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,384

4,060

5945707.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,449

5,023

5945727.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

10,512

9,429

5945778.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,810

1,675

5945798.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,633

3,421

5945819.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,612

2,334

5948341.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

4,289

3,938

5948365.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

69,829

65,586

5950059.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

6,812

6,376

5950178.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

1,130

1,044

5950198.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

4,662

4,391

5950244.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

49,296

46,412

5950686.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

1,407

1,284

5950688.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

10,318

9,597

5950749.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

16,902

15,627

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5950897.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

$

5,257

$

4,783

5950961.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

54,435

51,085

5951844.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

5,270

4,963

5951894.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

3,243

3,054

5952003.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,091

1,904

5952069.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

6,520

5,980

5952328.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

3,987

3,697

5952390.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

993

939

5952419.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

8,936

8,397

5952624.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,978

2,780

5952674.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

3,823

3,588

5952782.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,854

2,667

5952845.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

7,061

6,648

5952964.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

6,702

6,312

5953097.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,477

1,369

5953124.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,446

2,303

5953167.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

8,074

7,458

5953318.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

21,420

19,966

5953488.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,068

1,920

5953500.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

4,575

4,243

5953602.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

7,059

6,598

5953666.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

42,155

39,264

5954092.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

10,311

9,601

5954189.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

6,249

5,765

5954290.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,899

1,744

5954318.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,686

1,573

5954331.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

8,008

7,582

5954440.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

13,653

12,748

5954640.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

526

477

5954672.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

4,944

4,600

5954764.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,697

2,543

5954808.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

10,310

9,677

5954932.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

21,315

20,074

5955162.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

10,315

9,602

5955306.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

14,956

13,984

5955474.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

1,487

1,407

5955510.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

6,704

6,310

5955563.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

10,740

10,041

5955675.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

1,270

1,179

5955692.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

20,148

18,963

5955961.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

1,620

1,512

5955984.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

7,349

6,895

5956098.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

9,968

9,429

5956252.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

790

742

5956268.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,260

1,171

5956278.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,558

1,432

5956290.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

4,662

4,300

5956367.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

2,549

2,394

5956413.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,319

1,195

5956445.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

5,017

4,677

5956507.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,389

1,287

5956528.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

5,364

5,051

5956601.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

2,255

2,092

5956637.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,005

933

5956650.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,194

1,105

5956673.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

5,422

5,073

5956742.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,374

1,252

5956764.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

7,893

7,297

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

81

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5956888.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

$

4,534

$

4,272

5957186.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,006

2,820

5957263.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

6,578

6,083

5957515.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

6,818

6,240

5957742.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

30,096

28,160

5958935.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

4,174

3,908

5959009.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

928

861

5959036.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,358

3,148

5959083.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

6,926

6,382

5959201.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

17,171

15,920

5959488.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,288

3,113

5959551.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

191

18

5959596.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,283

3,073

5959640.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

12,924

12,231

5959931.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,996

1,850

5959978.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

4,027

3,718

5960032.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

2,087

1,928

5960089.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,270

1,170

5960105.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

6,495

5,997

5960232.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

2,787

2,532

5960268.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,580

3,324

5960335.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,461

1,344

5960364.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,485

3,210

5960434.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

878

810

5960455.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,944

1,832

5960484.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

4,179

3,850

5960555.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,021

934

5960584.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

491

456

5960600.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

12,123

11,303

5960755.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

841

733

5960772.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

8,224

7,783

5960899.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

7,267

6,757

5961004.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

16,520

15,452

5961340.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

16,341

15,245

5961541.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

12,198

11,321

5961724.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

14,420

13,446

5961873.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

7,315

6,752

5961977.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

4,399

4,143

5962024.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

32,036

30,073

5962366.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

3,935

3,661

5962409.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,279

2,119

5962451.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,085

1,950

5962462.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,087

1,947

5962481.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

74,796

69,778

5963604.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

523

481

5963611.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

8,534

8,033

5963691.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,045

1,909

5963712.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

3,723

3,509

5963740.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,440

1,341

5963750.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,411

1,318

5963754.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

4,241

3,993

5963816.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

714

675

5963929.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

879

809

5964017.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,707

2,540

5964059.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,238

4,929

5964109.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

10,063

9,317

5964173.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

6,108

5,641

5964257.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

6,710

6,283

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5964312.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

$

1,294

$

1,211

5964324.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

653

608

5964335.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

10,130

9,442

5964510.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

7,828

7,344

5964665.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,993

2,818

5964730.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

3,718

3,459

5964871.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,772

5,399

5964927.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,068

4,735

5964992.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,845

2,693

5965020.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

4,206

3,981

5965068.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,936

5,574

5965133.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,568

1,447

5965173.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

14,520

13,740

5965311.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

49,715

46,009

5965928.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,606

1,441

5965973.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

6,753

6,252

5966064.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,149

2,011

5966088.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

3,596

3,339

5966156.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,737

5,389

5966242.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

15,869

15,018

5966519.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

7,213

6,766

5966610.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,005

932

5966637.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,011

4,622

5966711.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

8,721

8,127

5966860.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

17,205

16,042

5967061.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,364

1,249

5967079.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,306

2,173

5967124.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

10,229

9,631

5971105.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

607

573

5971133.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

15,244

14,083

5971214.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

1,102

1,013

5971229.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

10,483

9,794

5971333.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

15,137

14,169

5971626.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

4,739

4,459

5971684.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

3,588

3,365

5971756.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

579

523

5971780.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

1,270

1,172

5971808.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

3,972

3,716

5971920.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

1,412

1,310

5971961.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

1,297

1,208

5971988.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

3,203

3,013

5972053.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

2,568

2,398

5972111.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

38,903

36,534

5972789.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

48,311

44,986

5973457.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

54,957

51,742

5974021.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

13,789

12,939

5974185.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

23,859

22,565

5974485.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

2,955

2,764

5974656.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

7,121

6,648

5974741.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

53,581

50,255

5975563.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,240

3,039

5975622.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

14,433

13,441

5975924.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

1,048

948

5975969.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

6,310

5,904

5976083.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

8,419

7,963

5976212.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,762

3,542

5976273.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

53,862

50,682

5976873.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

4,830

4,486

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5976913.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

$

997

$

917

5976923.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

6,671

6,276

5976956.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

8,269

7,712

5977010.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

2,144

1,973

5977024.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,804

3,565

5977033.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

1,259

1,167

5977044.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

24,715

23,108

5977392.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

2,186

2,051

5977411.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

33,235

31,075

5977757.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,602

3,316

5977791.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

5,345

4,892

5977921.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,230

3,003

5978091.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

2,676

2,530

5978133.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

7,492

6,936

5978194.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

1,405

1,290

5978225.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

1,823

1,673

5978258.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

3,216

2,959

5978327.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

15,868

14,877

5978631.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

1,268

1,179

5978648.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

1,881

1,734

5978698.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

7,391

6,797

5978898.SQ.FTS.B,

Zero

Cpn,

4/09/24

...

1,328

1,235

5978926.SQ.FTS.B,

Zero

Cpn,

4/09/24

...

24,330

22,768

5979513.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

4,965

4,676

5979619.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

8,724

8,112

5979824.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

2,460

2,327

5979860.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

5,789

5,435

5979958.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

2,551

2,385

5980012.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

4,603

4,245

5980081.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

2,687

2,492

5980129.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

3,065

2,856

5980160.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

4,454

4,133

5980216.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

1,198

1,108

5980229.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

1,700

1,577

5980259.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

3,119

2,872

5980287.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

9,386

8,782

5980376.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

10,173

9,486

5980522.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

3,118

2,894

5980582.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

57,925

54,331

5981924.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

30,122

28,144

5983705.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

6,795

6,278

5983869.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

8,104

7,545

5984080.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

2,646

2,460

5984228.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

4,275

3,965

5984339.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

3,219

3,028

5984395.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

1,138

1,067

5984481.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

2,500

2,303

5984694.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

5,053

4,619

5984748.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

39,885

36,827

5985107.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

4,687

4,321

5985165.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

4,913

4,566

5985249.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

2,542

2,381

5985306.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

20,248

19,019

5985600.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

10,700

9,958

5985775.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

2,363

2,177

5985801.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

13,078

12,226

5985903.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

5,961

5,531

5985940.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,120

1,037

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5985949.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

$

3,835

$

3,564

5985976.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

6,192

5,854

5986027.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

3,842

3,575

5986054.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,947

1,816

5986064.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

8,883

8,197

5986141.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

3,184

2,976

5986165.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,043

961

5986173.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

6,183

5,720

5986220.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

2,082

1,924

5986238.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

42,904

39,918

5986627.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

3,424

3,197

5986650.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

27,694

25,651

5986906.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,307

1,215

5986932.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

13,191

12,283

5986989.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

2,231

2,070

5986994.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

738

682

5987003.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,125

1,052

5987019.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

5,326

5,037

5989444.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

3,813

3,549

5989473.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,008

1,891

5989493.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

15,346

14,391

5989614.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

66,949

62,430

5990599.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

5,996

5,621

5990680.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

10,860

10,150

5990799.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,439

1,357

5990821.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

4,791

4,456

5990894.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,233

1,133

5990913.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,802

1,663

5990921.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

6,833

6,375

5990963.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,367

1,264

5990975.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

4,881

4,492

5990989.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,384

2,231

5990992.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

7,502

7,033

5991101.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

823

765

5991117.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

7,416

6,976

5991232.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

12,141

11,479

5991318.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

7,145

6,716

5991375.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

4,659

4,330

5991404.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

29,815

27,931

5991763.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

5,920

5,533

5991833.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

5,163

4,767

5991931.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

14,401

13,413

5992077.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

8,278

7,694

5992215.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

3,664

3,414

5992243.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

8,845

8,328

5992296.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,109

1,972

5992324.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

5,891

5,506

5992400.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,480

1,374

5992490.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,520

1,414

5993135.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

4,701

4,363

5993197.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

3,252

3,045

5993235.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

698

648

5993243.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

22,735

21,377

5993648.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

6,858

6,459

5993795.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,849

1,708

5993847.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

2,160

2,005

5993888.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

5,479

5,131

5994006.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

2,847

2,681

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

83

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5994072.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

$

7,493

$

7,083

5994199.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

13,914

12,932

5994552.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

3,776

3,517

5994622.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,678

1,552

5994648.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

9,954

9,362

5994798.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

5,416

5,071

5994854.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

7,197

6,656

5994965.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

9,544

8,980

5995052.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

966

904

5995064.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

39,743

36,873

5995524.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

33,953

31,597

5995759.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,930

1,803

5995769.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

6,875

6,385

5995836.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,955

1,809

5995853.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

8,081

7,592

5995959.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

3,972

3,689

5995998.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

395

357

5996001.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

16,036

14,987

5996185.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

4,891

4,600

5996244.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

910

846

5996250.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

4,233

3,979

5996290.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

8,714

8,240

5996332.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

1,559

1,420

5996349.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

12,066

11,243

5996429.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

9,684

9,155

5996493.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

4,451

4,171

5996527.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

8,661

8,143

5996582.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

1,666

1,540

5996590.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

28,686

26,819

5996773.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

25,925

24,246

5996924.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

12,216

11,342

5996999.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

4,377

4,121

5997030.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

4,984

4,668

5997066.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

3,350

3,130

5997089.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

7,363

6,799

5997135.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

2,781

2,579

5997149.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

23,066

21,291

5997362.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

11,868

11,045

5997474.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

5,904

5,580

5997515.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

13,209

12,483

5997632.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

6,000

5,642

5997690.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

775

702

5997709.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

4,519

4,188

5997948.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

1,225

1,135

5997957.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

6,706

6,249

5998050.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

5,713

5,379

5998144.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

1,322

1,222

5998202.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

9,594

8,956

5998351.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

937

854

5998388.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

7,142

6,641

5998540.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

3,587

3,340

5998599.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

1,093

1,017

5998606.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

13,870

12,935

6000155.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

3,242

3,014

6000184.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

2,244

2,075

6000218.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

1,662

1,544

6000235.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

10,706

9,945

6000328.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

2,929

2,714

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6000412.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

$

1,110

$

1,035

6001442.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

913

844

6001471.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

3,066

2,847

6001519.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

6,581

6,162

6001580.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

7,730

7,233

6001674.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

3,257

3,079

6001714.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

2,653

2,508

6001776.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

10,571

9,941

6001912.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

2,992

2,828

6001985.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

1,653

1,539

6002029.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

4,373

4,078

6002150.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

33,324

31,194

6002954.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

3,752

3,491

6003017.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

5,421

5,084

6003097.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

9,659

9,130

6003186.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

1,976

1,844

6003194.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

16,591

15,334

6003390.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

42,805

39,899

6003974.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

75,759

70,772

6004723.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

11,968

11,251

6004797.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

8,851

8,112

6004895.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

1,055

979

6004919.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

7,174

6,625

6005091.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

8,740

8,145

6005307.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

1,196

1,114

6005370.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

3,735

3,451

6005465.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

946

878

6005504.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

987

909

6005534.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

8,238

7,787

6005706.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

16,333

15,436

6005982.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

5,750

5,296

6006126.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

3,176

2,930

6006206.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

11,242

10,394

6006379.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

8,897

8,326

6006517.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

7,835

7,325

6006573.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

2,197

2,046

6006605.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

2,800

2,627

6006630.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

31,568

29,548

6007046.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

103,791

97,331

6009386.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

19,251

17,940

6009618.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

885

813

6009649.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

2,062

1,909

6009687.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

3,586

3,388

6009738.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

10,901

10,184

6009857.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

5,096

4,769

6009947.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,099

1,024

6009976.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

17,892

16,510

6010285.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,448

4,117

6010414.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,964

1,841

6010469.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,029

3,756

6010535.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

2,402

2,217

6010572.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

6,922

6,515

6010664.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

6,684

6,272

6010695.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,017

940

6010702.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

736

693

6010705.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,997

4,657

6010780.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

5,387

4,986

6010861.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

6,536

6,028

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6010910.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

$

3,376

$

3,152

6010969.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

5,493

5,136

6011034.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

10,672

9,906

6011195.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

8,844

8,250

6011300.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

2,547

2,365

6011326.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

2,886

2,716

6011345.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,886

1,738

6011361.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

5,619

5,187

6011452.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

9,393

8,877

6011561.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

11,855

10,996

6011639.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

5,745

5,407

6011660.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

83,005

78,444

6012418.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,423

1,328

6012451.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

27,871

26,198

6012736.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,961

4,600

6012819.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,819

1,689

6012833.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,411

3,183

6012841.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

13,693

12,663

6013007.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

12,172

11,287

6013116.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

17,799

16,617

6013457.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,598

4,252

6013523.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

7,020

6,557

6013652.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

16,554

15,555

6013970.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,766

1,634

6014016.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,662

1,533

6014045.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

11,150

10,398

6014197.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,540

1,430

6014205.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,937

3,694

6014228.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,367

4,127

6014253.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,001

2,797

6014290.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

11,869

11,168

6014361.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

6,725

6,256

6014421.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

9,000

8,328

6014519.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

10,089

9,335

6014604.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,347

1,243

6014624.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,305

2,172

6014633.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,176

2,021

6014649.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,982

4,683

6014756.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

29,648

27,648

6014998.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,288

3,106

6015033.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

13,851

12,965

6015180.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,701

1,581

6015199.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

12,431

11,501

6015316.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,528

1,426

6015329.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

15,313

14,247

6015460.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

5,573

5,149

6015528.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,627

4,316

6015584.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,668

3,437

6015614.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

7,134

6,647

6015695.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,040

1,890

6015748.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,400

3,171

6015899.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

1,356

1,276

6015912.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

31,570

29,615

6016109.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

4,375

4,105

6016140.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

9,898

9,151

6016206.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

1,943

1,803

6016221.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

17,450

16,399

6016340.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

3,644

3,389

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6016356.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

$

1,565

$

1,450

6016363.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

6,097

5,684

6016423.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

37,742

35,333

6016703.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

27,467

25,671

6016884.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

7,858

7,395

6016939.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

9,764

9,160

6016989.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

7,897

7,422

6017039.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

6,360

5,984

6017086.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

5,088

4,721

6017118.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

28,130

26,428

6017734.SQ.FTS.B,

Zero

Cpn,

4/24/24

...

2,008

1,869

6017757.SQ.FTS.B,

Zero

Cpn,

4/24/24

...

8,063

7,483

6017918.SQ.FTS.B,

Zero

Cpn,

4/24/24

...

43,058

40,035

6020717.SQ.FTS.B,

Zero

Cpn,

4/24/24

...

4,395

4,152

6020826.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

42,313

39,691

6021160.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,702

1,571

6021186.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

15,742

14,747

6021430.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

18,387

17,182

6022026.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

4,302

4,030

6022069.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

10,734

9,917

6022160.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

65,595

61,718

6022999.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

2,138

1,975

6023032.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,278

1,182

6023054.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

6,711

6,294

6023184.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,745

1,612

6023209.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

27,865

26,135

6023580.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

23,072

21,553

6023754.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

3,270

3,048

6023794.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,619

1,524

6023827.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

3,976

3,699

6023884.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

7,814

7,343

6023977.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

3,405

3,160

6024013.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

18,606

17,444

6024177.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

7,898

7,409

6024243.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

1,608

1,493

6024287.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

3,828

3,553

6024354.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

17,638

16,304

6024561.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

15,702

14,574

6024771.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

4,412

4,121

6024866.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

2,543

2,374

6024913.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

22,502

20,950

6025607.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

23,325

21,829

6025866.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

21,886

20,592

6026095.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

7,457

6,979

6026147.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

25,162

23,500

6026339.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

47,091

44,115

6026840.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

5,094

4,793

6026900.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

13,074

12,183

6026984.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

4,066

3,759

6027029.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

25,540

23,672

6027226.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

2,545

2,354

6027258.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

9,917

9,318

6027379.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

3,662

3,399

6027430.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

3,065

2,863

36,215,446

Freedom

Financial

Asset

Management

LLC

APP-11690146.FP.FTS.B,

5.99%,

12/01/23

4,456

4,495

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

85

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-11695207.FP.FTS.B,

15.49%,

12/12/23

$

7,072

$

7,130

APP-12210758.FP.FTS.B,

22.49%,

1/15/24

11,426

11,488

APP-11798810.FP.FTS.B,

5.99%,

1/21/24

.

3,253

3,280

APP-11878331.FP.FTS.B,

5.99%,

1/22/24

.

7,661

7,752

APP-12050449.FP.FTS.B,

5.99%,

1/22/24

.

5,032

5,089

APP-11694096.FP.FTS.B,

5.99%,

1/30/24

.

4,493

4,549

APP-11723164.FP.FTS.B,

17.99%,

2/01/24

3,382

3,384

APP-11550730.FP.FTS.B,

23.99%,

2/03/24

6,879

6,903

APP-11695208.FP.FTS.B,

5.99%,

2/04/24

.

4,911

4,961

APP-12436440.FP.FTS.B,

18.99%,

2/09/24

5,658

5,694

APP-12150591.FP.FTS.B,

5.99%,

2/28/24

.

5,612

5,676

APP-12139572.FP.FTS.B,

5.99%,

3/01/24

.

7,149

7,225

APP-12139722.FP.FTS.B,

5.99%,

3/02/24

.

7,514

7,595

APP-12050193.FP.FTS.B,

5.99%,

3/06/24

.

7,882

7,971

APP-12173490.FP.FTS.B,

17.99%,

3/08/24

5,346

5,391

APP-12412711.FP.FTS.B,

5.99%,

3/16/24

.

7,772

7,868

APP-12460422.FP.FTS.B,

16.99%,

3/25/24

6,046

6,131

APP-14865243.FP.FTS.B,

5.99%,

6/10/24

.

8,463

8,570

APP-14828374.FP.FTS.B,

5.99%,

7/29/24

.

7,390

7,527

APP-17500700.FP.FTS.B,

5.99%,

8/03/24

.

4,237

4,292

APP-17433587.FP.FTS.B,

5.99%,

8/12/24

.

9,175

9,316

APP-10161712.FP.FTS.B,

23.99%,

8/15/24

4,811

4,726

APP-16681389.FP.FTS.B,

5.99%,

9/01/24

.

6,579

6,668

APP-16681827.FP.FTS.B,

5.99%,

9/01/24

.

9,210

9,341

APP-16688861.FP.FTS.B,

5.99%,

9/01/24

.

9,912

10,053

APP-16667764.FP.FTS.B,

5.99%,

9/10/24

.

9,225

9,377

APP-16650407.FP.FTS.B,

5.99%,

9/13/24

.

4,615

4,691

APP-17479345.FP.FTS.B,

5.99%,

9/13/24

.

4,846

4,923

APP-17493062.FP.FTS.B,

5.99%,

9/13/24

.

8,678

8,809

APP-17474545.FP.FTS.B,

16.49%,

9/13/24

6,315

1,978

APP-17508043.FP.FTS.B,

17.49%,

9/13/24

10,292

10,403

APP-16660226.FP.FTS.B,

5.99%,

9/14/24

.

9,943

10,107

APP-16682744.FP.FTS.B,

11.24%,

9/14/24

19,503

19,856

APP-16652913.FP.FTS.B,

16.24%,

9/14/24

37,446

38,038

APP-17325113.FP.FTS.B,

17.49%,

9/14/24

9,289

9,400

APP-17485719.FP.FTS.B,

5.99%,

9/15/24

.

8,291

8,427

APP-16473194.FP.FTS.B,

10.74%,

9/18/24

13,401

13,653

APP-17492345.FP.FTS.B,

5.99%,

9/19/24

.

9,818

9,984

APP-16335567.FP.FTS.B,

5.99%,

9/24/24

.

11,548

11,766

APP-17451429.FP.FTS.B,

5.99%,

9/24/24

.

10,182

10,362

APP-16336846.FP.FTS.B,

14.24%,

9/24/24

17,804

18,132

APP-17490514.FP.FTS.B,

5.99%,

9/27/24

.

6,802

6,927

APP-10876917.FP.FTS.B,

23.99%,

10/19/24

..........................

7,525

7,403

APP-10609876.FP.FTS.B,

25.49%,

10/25/24

..........................

8,143

1,880

APP-10901539.FP.FTS.B,

15.49%,

11/27/24

23,629

23,775

APP-10784743.FP.FTS.B,

23.99%,

11/28/24

10,930

10,864

APP-11694740.FP.FTS.B,

7.49%,

12/15/24

16,017

16,172

APP-11595022.FP.FTS.B,

8.49%,

12/16/24

14,138

14,284

APP-11694411.FP.FTS.B,

13.99%,

12/21/24

13,388

13,526

APP-11731526.FP.FTS.B,

16.49%,

12/21/24

10,150

10,190

APP-11694509.FP.FTS.B,

9.74%,

12/22/24

11,903

12,018

APP-11736995.FP.FTS.B,

17.99%,

12/22/24

8,023

8,062

APP-11695015.FP.FTS.B,

18.49%,

12/22/24

27,660

27,687

APP-11395504.FP.FTS.B,

25.49%,

1/08/25

8,590

8,517

APP-12144621.FP.FTS.B,

25.49%,

1/21/25

8,128

8,035

APP-11798754.FP.FTS.B,

6.99%,

1/22/25

.

23,079

23,349

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12148090.FP.FTS.B,

9.74%,

1/22/25

.

$

13,964

$

14,123

APP-12167100.FP.FTS.B,

17.99%,

1/22/25

7,962

7,950

APP-12173761.FP.FTS.B,

25.49%,

1/22/25

7,322

7,245

APP-12185700.FP.FTS.B,

9.74%,

1/23/25

.

10,802

10,928

APP-12164966.FP.FTS.B,

11.74%,

1/23/25

16,398

16,573

APP-12179908.FP.FTS.B,

18.99%,

1/23/25

7,986

8,006

APP-12087415.FP.FTS.B,

12.99%,

1/25/25

20,650

20,760

APP-11924017.FP.FTS.B,

15.99%,

1/28/25

14,448

14,569

APP-11702169.FP.FTS.B,

25.49%,

1/28/25

8,103

2,961

APP-11509368.FP.FTS.B,

14.99%,

1/29/25

19,482

19,611

APP-12365615.FP.FTS.B,

16.99%,

2/01/25

8,155

8,189

APP-12414484.FP.FTS.B,

17.24%,

2/02/25

26,398

26,049

APP-12287483.FP.FTS.B,

12.99%,

2/03/25

18,573

18,547

APP-11733782.FP.FTS.B,

15.74%,

2/03/25

16,906

16,611

APP-11725711.FP.FTS.B,

21.99%,

2/03/25

10,763

10,530

APP-11694464.FP.FTS.B,

11.49%,

2/04/25

10,242

10,354

APP-12175602.FP.FTS.B,

17.49%,

2/25/25

11,023

11,063

APP-12085226.FP.FTS.B,

23.99%,

2/25/25

11,863

11,762

APP-12213351.FP.FTS.B,

13.24%,

2/26/25

8,644

8,751

APP-12175455.FP.FTS.B,

16.99%,

3/01/25

7,634

7,693

APP-12165485.FP.FTS.B,

18.99%,

3/01/25

12,415

12,321

APP-12141452.FP.FTS.B,

17.49%,

3/04/25

17,288

17,065

APP-12029075.FP.FTS.B,

15.99%,

3/05/25

16,416

16,367

APP-12155870.FP.FTS.B,

15.99%,

3/05/25

14,798

14,927

APP-12173727.FP.FTS.B,

18.49%,

3/05/25

26,104

25,679

APP-12124683.FP.FTS.B,

16.99%,

3/06/25

11,482

11,331

APP-12172939.FP.FTS.B,

9.74%,

3/07/25

.

16,110

16,302

APP-12017283.FP.FTS.B,

14.24%,

3/07/25

26,311

26,468

APP-12142572.FP.FTS.B,

15.24%,

3/07/25

37,985

38,460

APP-10156554.FP.FTS.B,

9.49%,

3/08/25

.

20,569

20,820

APP-12188446.FP.FTS.B,

11.99%,

3/08/25

16,241

16,392

APP-12185763.FP.FTS.B,

12.99%,

3/08/25

19,469

19,473

APP-12184624.FP.FTS.B,

15.74%,

3/08/25

15,321

15,068

APP-12168882.FP.FTS.B,

17.49%,

3/08/25

19,864

19,779

APP-12175546.FP.FTS.B,

17.99%,

3/08/25

13,264

13,226

APP-12031531.FP.FTS.B,

20.99%,

3/08/25

14,177

13,868

APP-12414365.FP.FTS.B,

9.74%,

3/09/25

.

11,399

11,543

APP-12414463.FP.FTS.B,

16.99%,

3/09/25

6,667

1,242

APP-12178610.FP.FTS.B,

23.99%,

3/09/25

10,751

10,697

APP-12139801.FP.FTS.B,

9.49%,

3/11/25

.

17,499

17,725

APP-12309616.FP.FTS.B,

13.49%,

3/18/25

10,289

10,402

APP-11853561.FP.FTS.B,

17.99%,

3/18/25

12,420

12,455

APP-12050722.FP.FTS.B,

9.49%,

3/20/25

.

16,292

16,511

APP-12281554.FP.FTS.B,

9.49%,

3/20/25

.

22,211

22,510

APP-12416946.FP.FTS.B,

9.49%,

3/20/25

.

17,705

17,943

APP-12426976.FP.FTS.B,

18.99%,

3/20/25

12,865

12,821

APP-12413819.FP.FTS.B,

16.99%,

3/21/25

9,277

9,314

APP-12106203.FP.FTS.B,

9.74%,

3/22/25

.

15,647

15,866

APP-12270743.FP.FTS.B,

16.49%,

3/22/25

13,201

13,302

APP-12381356.FP.FTS.B,

9.74%,

3/24/25

.

12,721

12,898

APP-12414413.FP.FTS.B,

17.99%,

3/25/25

13,490

13,572

APP-15099844.FP.FTS.B,

19.99%,

7/15/25

14,516

14,543

APP-15072875.FP.FTS.B,

15.49%,

7/18/25

16,226

16,382

APP-15063599.FP.FTS.B,

8.24%,

7/23/25

.

23,022

23,398

APP-15073908.FP.FTS.B,

22.74%,

7/25/25

16,449

16,527

APP-15066363.FP.FTS.B,

10.49%,

7/26/25

22,711

23,094

APP-15045529.FP.FTS.B,

25.49%,

7/26/25

13,995

14,088

APP-15052562.FP.FTS.B,

10.24%,

7/29/25

29,729

30,276

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-15077310.FP.FTS.B,

25.49%,

7/29/25

$

10,272

$

10,358

APP-17112174.FP.FTS.B,

11.74%,

8/12/25

12,083

12,257

APP-10157776.FP.FTS.B,

22.49%,

8/13/25

30,417

30,608

APP-16709443.FP.FTS.B,

15.24%,

9/02/25

14,701

14,932

APP-17041993.FP.FTS.B,

13.74%,

9/05/25

33,411

33,898

APP-17017611.FP.FTS.B,

11.99%,

9/06/25

39,734

40,356

APP-16692788.FP.FTS.B,

10.74%,

9/10/25

11,448

11,640

APP-16716169.FP.FTS.B,

9.49%,

9/14/25

.

14,994

15,261

APP-17284270.FP.FTS.B,

13.74%,

9/15/25

38,184

38,763

APP-16721812.FP.FTS.B,

14.24%,

9/15/25

13,112

13,345

APP-16948390.FP.FTS.B,

13.99%,

9/16/25

14,401

14,648

APP-16622583.FP.FTS.B,

15.99%,

9/16/25

12,974

13,091

APP-16911624.FP.FTS.B,

10.99%,

9/18/25

27,472

27,979

APP-17495714.FP.FTS.B,

11.74%,

9/26/25

14,352

14,630

APP-17498465.FP.FTS.B,

17.49%,

9/27/25

19,259

19,573

APP-10861885.FP.FTS.B,

15.49%,

10/17/25

..........................

16,705

16,903

APP-10833798.FP.FTS.B,

15.99%,

10/18/25

..........................

16,111

16,301

APP-10463967.FP.FTS.B,

18.99%,

10/23/25

..........................

19,175

19,326

APP-10612921.FP.FTS.B,

18.49%,

11/07/25

9,611

9,720

APP-11579289.FP.FTS.B,

10.99%,

12/05/25

10,697

10,804

APP-11678649.FP.FTS.B,

18.49%,

12/17/25

15,710

15,674

APP-11737115.FP.FTS.B,

12.49%,

12/18/25

12,683

12,850

APP-11731020.FP.FTS.B,

19.99%,

12/20/25

27,593

27,672

APP-11693902.FP.FTS.B,

15.24%,

12/21/25

26,370

26,673

APP-11712135.FP.FTS.B,

13.24%,

12/22/25

11,657

11,825

APP-11531737.FP.FTS.B,

13.99%,

12/22/25

10,864

10,995

APP-11442801.FP.FTS.B,

16.49%,

12/22/25

15,995

16,174

APP-10314724.FP.FTS.B,

11.74%,

1/08/26

24,059

24,305

APP-12165054.FP.FTS.B,

10.24%,

1/14/26

15,924

16,114

APP-12174416.FP.FTS.B,

10.24%,

1/22/26

17,248

17,484

APP-12171910.FP.FTS.B,

12.49%,

1/22/26

13,392

13,571

APP-11799040.FP.FTS.B,

15.74%,

1/22/26

34,855

35,095

APP-12199831.FP.FTS.B,

16.99%,

1/22/26

13,042

13,175

APP-12006366.FP.FTS.B,

20.99%,

1/22/26

8,681

8,741

APP-11687753.FP.FTS.B,

13.49%,

1/25/26

18,948

19,218

APP-11694677.FP.FTS.B,

10.24%,

1/28/26

13,099

13,307

APP-11657555.FP.FTS.B,

18.49%,

1/28/26

40,872

41,319

APP-12287012.FP.FTS.B,

17.49%,

2/01/26

12,103

12,066

APP-12458983.FP.FTS.B,

15.99%,

2/02/26

10,448

10,542

APP-11579337.FP.FTS.B,

10.99%,

2/04/26

22,299

22,630

APP-11595092.FP.FTS.B,

19.49%,

2/05/26

34,971

35,096

APP-12168235.FP.FTS.B,

19.49%,

2/23/26

7,986

8,057

APP-12139578.FP.FTS.B,

15.24%,

2/24/26

9,999

10,140

APP-12119897.FP.FTS.B,

10.24%,

2/28/26

18,796

19,078

APP-12174351.FP.FTS.B,

15.99%,

3/01/26

17,547

17,533

APP-12176488.FP.FTS.B,

14.99%,

3/04/26

17,513

17,734

APP-12033031.FP.FTS.B,

13.99%,

3/05/26

6,554

6,653

APP-12050179.FP.FTS.B,

16.49%,

3/07/26

14,802

15,011

APP-12128364.FP.FTS.B,

13.24%,

3/08/26

23,158

23,197

APP-12463162.FP.FTS.B,

18.49%,

3/10/26

14,083

14,155

APP-12209184.FP.FTS.B,

19.49%,

3/11/26

12,968

12,989

APP-12270284.FP.FTS.B,

9.99%,

3/14/26

.

32,882

33,363

APP-12287014.FP.FTS.B,

16.99%,

3/15/26

13,758

13,884

APP-12466087.FP.FTS.B,

18.99%,

3/15/26

11,741

11,813

APP-12397804.FP.FTS.B,

16.99%,

3/16/26

11,086

11,193

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12400371.FP.FTS.B,

16.99%,

3/16/26

$

19,715

$

19,885

APP-12372783.FP.FTS.B,

14.99%,

3/17/26

19,173

19,350

APP-12406010.FP.FTS.B,

9.99%,

3/18/26

.

21,562

21,899

APP-12431691.FP.FTS.B,

9.49%,

3/20/26

.

26,262

26,686

APP-12286988.FP.FTS.B,

10.99%,

3/21/26

43,091

43,812

APP-12343526.FP.FTS.B,

16.99%,

3/21/26

22,570

22,796

APP-12463857.FP.FTS.B,

17.49%,

3/21/26

9,462

971

APP-12448349.FP.FTS.B,

14.99%,

3/23/26

19,316

19,520

APP-12414671.FP.FTS.B,

15.99%,

3/23/26

20,676

20,943

APP-12431061.FP.FTS.B,

10.99%,

3/24/26

42,893

43,648

APP-12443256.FP.FTS.B,

16.74%,

3/24/26

33,993

34,378

APP-12414591.FP.FTS.B,

19.49%,

3/24/26

8,569

8,679

APP-12459668.FP.FTS.B,

14.99%,

3/25/26

16,502

16,722

APP-12463779.FP.FTS.B,

15.99%,

3/25/26

12,236

12,456

APP-12464227.FP.FTS.B,

16.24%,

3/25/26

27,971

28,160

APP-12414582.FP.FTS.B,

18.49%,

3/25/26

17,668

17,894

APP-15072534.FP.FTS.B,

20.49%,

7/13/26

11,338

11,383

APP-15117837.FP.FTS.B,

22.24%,

7/15/26

14,204

14,259

APP-15068337.FP.FTS.B,

8.99%,

7/20/26

.

16,626

16,907

APP-14891119.FP.FTS.B,

18.74%,

7/24/26

47,381

48,044

APP-15053612.FP.FTS.B,

13.99%,

7/26/26

10,991

11,204

APP-15053337.FP.FTS.B,

17.99%,

7/26/26

11,424

11,573

APP-15004884.FP.FTS.B,

15.99%,

7/27/26

25,510

26,005

APP-15119191.FP.FTS.B,

18.49%,

7/28/26

6,054

6,150

APP-14912105.FP.FTS.B,

20.99%,

7/29/26

18,126

18,372

APP-16636359.FP.FTS.B,

14.74%,

7/30/26

24,949

25,360

APP-16690474.FP.FTS.B,

9.24%,

8/01/26

.

28,952

29,372

APP-17115035.FP.FTS.B,

18.49%,

8/03/26

11,851

11,911

APP-10174955.FP.FTS.B,

19.49%,

8/15/26

9,597

9,484

APP-16684485.FP.FTS.B,

11.24%,

9/02/26

22,284

22,634

APP-16637564.FP.FTS.B,

15.99%,

9/03/26

8,224

8,342

APP-16719236.FP.FTS.B,

10.49%,

9/04/26

17,386

17,647

APP-16676602.FP.FTS.B,

11.24%,

9/05/26

24,168

24,557

APP-10573456.FP.FTS.B,

17.49%,

9/10/26

13,693

7,703

APP-16630984.FP.FTS.B,

14.49%,

9/12/26

14,594

14,854

APP-17112604.FP.FTS.B,

11.74%,

9/15/26

24,405

24,805

APP-16335651.FP.FTS.B,

14.49%,

9/15/26

16,425

16,756

APP-16632934.FP.FTS.B,

14.49%,

9/15/26

48,706

49,710

APP-17464221.FP.FTS.B,

16.74%,

9/15/26

13,483

13,620

APP-17032039.FP.FTS.B,

10.49%,

9/16/26

25,057

25,539

APP-16710569.FP.FTS.B,

15.49%,

9/16/26

24,378

24,886

APP-16640009.FP.FTS.B,

12.49%,

9/19/26

17,400

17,763

APP-16883094.FP.FTS.B,

14.74%,

9/19/26

687

686

APP-10406165.FP.FTS.B,

18.99%,

9/20/26

16,376

16,488

APP-16275007.FP.FTS.B,

12.49%,

9/22/26

13,580

13,834

APP-17279512.FP.FTS.B,

16.74%,

9/22/26

14,604

14,822

APP-17112160.FP.FTS.B,

12.24%,

9/25/26

24,475

24,950

APP-17112272.FP.FTS.B,

14.24%,

9/25/26

22,079

22,522

APP-17457461.FP.FTS.B,

16.74%,

9/27/26

13,759

13,998

APP-16637316.FP.FTS.B,

18.24%,

9/27/26

17,104

17,407

APP-09994260.FP.FTS.B,

17.49%,

9/28/26

28,022

28,455

APP-10843011.FP.FTS.B,

21.49%,

10/20/26

19,497

7,190

APP-10590417.FP.FTS.B,

17.99%,

10/23/26

..........................

18,521

18,567

APP-10618590.FP.FTS.B,

20.49%,

10/26/26

..........................

13,646

13,559

APP-11021919.FP.FTS.B,

17.99%,

11/03/26

15,799

15,728

APP-10582732.FP.FTS.B,

21.99%,

11/04/26

8,134

1,661

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

87

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-10609892.FP.FTS.B,

17.99%,

11/05/26

$

254

$

–

APP-11341867.FP.FTS.B,

14.99%,

11/20/26

22,272

22,464

APP-11400385.FP.FTS.B,

14.49%,

11/26/26

10,355

10,486

APP-11381442.FP.FTS.B,

20.49%,

11/26/26

22,028

22,094

APP-10850914.FP.FTS.B,

14.24%,

11/29/26

20,909

21,244

APP-10801509.FP.FTS.B,

19.49%,

11/29/26

24,823

3,426

APP-11744624.FP.FTS.B,

13.24%,

12/09/26

20,886

21,061

APP-11579549.FP.FTS.B,

13.49%,

12/15/26

40,949

41,377

APP-11695023.FP.FTS.B,

13.49%,

12/15/26

14,753

14,907

APP-11700609.FP.FTS.B,

19.99%,

12/15/26

44,471

44,485

APP-11737058.FP.FTS.B,

22.49%,

12/15/26

8,772

8,729

APP-11671786.FP.FTS.B,

22.49%,

12/16/26

7,973

7,939

APP-11736851.FP.FTS.B,

19.99%,

12/17/26

12,470

12,465

APP-11679563.FP.FTS.B,

17.99%,

12/18/26

26,780

26,950

APP-11693245.FP.FTS.B,

18.49%,

12/18/26

18,463

18,426

APP-11719573.FP.FTS.B,

19.99%,

12/18/26

11,588

11,561

APP-11665810.FP.FTS.B,

20.99%,

12/18/26

30,323

30,209

APP-11579432.FP.FTS.B,

14.99%,

12/19/26

14,171

14,318

APP-11022370.FP.FTS.B,

16.49%,

12/20/26

9,710

9,849

APP-11733566.FP.FTS.B,

19.24%,

12/20/26

19,024

18,936

APP-11740523.FP.FTS.B,

10.99%,

12/21/26

21,357

21,646

APP-11724221.FP.FTS.B,

11.24%,

12/21/26

43,462

44,051

APP-11443178.FP.FTS.B,

11.74%,

12/21/26

12,189

12,344

APP-11694985.FP.FTS.B,

12.99%,

12/21/26

12,038

12,189

APP-11695114.FP.FTS.B,

17.49%,

12/21/26

13,933

14,022

APP-11730592.FP.FTS.B,

17.99%,

12/21/26

37,299

37,448

APP-11723942.FP.FTS.B,

19.49%,

12/21/26

42,636

42,721

APP-11726144.FP.FTS.B,

20.49%,

12/21/26

27,685

27,674

APP-11553389.FP.FTS.B,

12.24%,

12/22/26

17,846

18,073

APP-11563018.FP.FTS.B,

18.99%,

12/22/26

7,993

7,911

APP-11731905.FP.FTS.B,

18.99%,

12/22/26

17,824

17,903

APP-11735206.FP.FTS.B,

19.49%,

12/22/26

19,280

19,329

APP-11730543.FP.FTS.B,

19.99%,

12/22/26

12,948

12,953

APP-11733931.FP.FTS.B,

19.99%,

12/22/26

14,988

1,604

APP-11401848.FP.FTS.B,

15.49%,

1/05/27

11,501

11,485

APP-12116526.FP.FTS.B,

18.99%,

1/05/27

13,370

13,271

APP-11146646.FP.FTS.B,

12.74%,

1/07/27

28,443

28,768

APP-11411446.FP.FTS.B,

17.99%,

1/09/27

44,817

45,292

APP-11208788.FP.FTS.B,

20.99%,

1/09/27

15,275

15,084

APP-11397497.FP.FTS.B,

11.99%,

1/10/27

20,784

21,121

APP-11410185.FP.FTS.B,

22.49%,

1/10/27

26,440

26,212

APP-11413059.FP.FTS.B,

13.74%,

1/11/27

11,588

11,737

APP-11946615.FP.FTS.B,

16.49%,

1/11/27

19,925

20,074

APP-12090452.FP.FTS.B,

16.99%,

1/15/27

17,861

17,868

APP-12139980.FP.FTS.B,

19.99%,

1/15/27

6,745

6,728

APP-12032875.FP.FTS.B,

11.24%,

1/16/27

22,269

22,496

APP-12094650.FP.FTS.B,

18.99%,

1/19/27

7,197

7,210

APP-12073890.FP.FTS.B,

10.99%,

1/20/27

19,382

19,622

APP-12213292.FP.FTS.B,

12.99%,

1/20/27

12,598

12,741

APP-12132313.FP.FTS.B,

11.24%,

1/21/27

11,466

11,610

APP-12137436.FP.FTS.B,

16.99%,

1/21/27

26,753

26,800

APP-12173162.FP.FTS.B,

17.49%,

1/21/27

15,400

15,460

APP-12138638.FP.FTS.B,

19.99%,

1/21/27

1

1

APP-11798808.FP.FTS.B,

10.99%,

1/22/27

17,650

17,878

APP-12172519.FP.FTS.B,

11.24%,

1/22/27

13,235

13,406

APP-12154405.FP.FTS.B,

14.49%,

1/22/27

13,359

13,495

APP-12161019.FP.FTS.B,

20.49%,

1/22/27

9,523

9,494

APP-12122672.FP.FTS.B,

22.99%,

1/22/27

14,533

14,443

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12169743.FP.FTS.B,

24.24%,

1/22/27

$

27,280

$

27,080

APP-12186510.FP.FTS.B,

9.74%,

1/23/27

.

36,827

37,323

APP-12107351.FP.FTS.B,

16.49%,

1/23/27

19,701

19,770

APP-12089965.FP.FTS.B,

8.99%,

1/25/27

.

30,688

31,119

APP-12105986.FP.FTS.B,

10.99%,

1/25/27

30,333

30,758

APP-11732587.FP.FTS.B,

23.49%,

1/25/27

9,050

9,038

APP-12209707.FP.FTS.B,

25.49%,

1/25/27

10,156

10,124

APP-11595106.FP.FTS.B,

13.49%,

1/26/27

12,435

12,607

APP-11579435.FP.FTS.B,

15.49%,

1/28/27

17,221

17,348

APP-11694310.FP.FTS.B,

16.74%,

1/28/27

40,101

40,648

APP-11739118.FP.FTS.B,

16.99%,

1/28/27

14,233

14,321

APP-11595260.FP.FTS.B,

18.99%,

1/29/27

13,299

13,389

APP-11588109.FP.FTS.B,

20.49%,

1/30/27

22,513

22,622

APP-11697560.FP.FTS.B,

12.49%,

1/31/27

36,253

36,724

APP-12414657.FP.FTS.B,

10.99%,

2/01/27

32,444

32,775

APP-12462065.FP.FTS.B,

17.74%,

2/01/27

35,420

34,971

APP-12459489.FP.FTS.B,

18.24%,

2/01/27

36,328

36,106

APP-11711469.FP.FTS.B,

19.99%,

2/01/27

15,034

14,928

APP-11705115.FP.FTS.B,

21.49%,

2/01/27

45,755

45,225

APP-11709913.FP.FTS.B,

21.49%,

2/02/27

45,988

45,690

APP-12408607.FP.FTS.B,

18.49%,

2/03/27

14,838

14,651

APP-11732543.FP.FTS.B,

20.99%,

2/03/27

13,472

13,296

APP-11694211.FP.FTS.B,

11.99%,

2/04/27

44,841

45,531

APP-11724908.FP.FTS.B,

12.74%,

2/04/27

37,244

37,707

APP-11709701.FP.FTS.B,

16.49%,

2/04/27

13,653

13,794

APP-11712504.FP.FTS.B,

17.99%,

2/04/27

9,074

9,177

APP-11725393.FP.FTS.B,

17.99%,

2/04/27

45,370

45,266

APP-11731565.FP.FTS.B,

18.99%,

2/04/27

45,511

45,545

APP-11695149.FP.FTS.B,

19.49%,

2/04/27

19,805

19,698

APP-11732774.FP.FTS.B,

19.49%,

2/04/27

10,940

10,880

APP-11694359.FP.FTS.B,

19.99%,

2/04/27

10,346

10,327

APP-11660434.FP.FTS.B,

20.49%,

2/04/27

26,318

26,180

APP-11694079.FP.FTS.B,

10.99%,

2/05/27

19,537

19,810

APP-11722179.FP.FTS.B,

11.99%,

2/05/27

24,919

25,274

APP-11740935.FP.FTS.B,

13.99%,

2/05/27

44,805

45,394

APP-11608429.FP.FTS.B,

17.49%,

2/05/27

36,260

36,683

APP-11744076.FP.FTS.B,

17.49%,

2/05/27

20,884

20,939

APP-09759707.FP.FTS.B,

18.99%,

2/05/27

6,831

6,840

APP-11741297.FP.FTS.B,

19.24%,

2/05/27

19,142

18,915

APP-11724087.FP.FTS.B,

19.99%,

2/05/27

9,136

9,093

APP-11742772.FP.FTS.B,

19.99%,

2/05/27

14,513

14,444

APP-11742867.FP.FTS.B,

23.24%,

2/05/27

18,451

18,219

APP-12337990.FP.FTS.B,

16.49%,

2/07/27

7,289

7,363

APP-11738196.FP.FTS.B,

21.99%,

2/15/27

10,141

10,138

APP-12029572.FP.FTS.B,

16.99%,

2/24/27

17,125

17,180

APP-12033253.FP.FTS.B,

17.99%,

2/24/27

12,897

12,889

APP-12159528.FP.FTS.B,

18.99%,

2/28/27

13,574

13,629

APP-12050224.FP.FTS.B,

11.74%,

3/01/27

38,264

38,744

APP-12156019.FP.FTS.B,

13.24%,

3/01/27

28,450

28,744

APP-12168636.FP.FTS.B,

13.24%,

3/01/27

18,084

18,276

APP-12210481.FP.FTS.B,

15.49%,

3/01/27

22,776

22,729

APP-12171147.FP.FTS.B,

16.24%,

3/01/27

28,429

8,827

APP-12208752.FP.FTS.B,

16.49%,

3/01/27

20,906

5,909

APP-12211243.FP.FTS.B,

17.24%,

3/01/27

33,096

33,029

APP-12107891.FP.FTS.B,

17.99%,

3/01/27

14,461

14,331

APP-12175594.FP.FTS.B,

18.99%,

3/01/27

12,848

12,788

APP-12208717.FP.FTS.B,

21.74%,

3/01/27

23,027

22,677

APP-12150597.FP.FTS.B,

25.49%,

3/01/27

9,819

9,647

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12176496.FP.FTS.B,

18.49%,

3/02/27

$

19,946

$

19,863

APP-12158633.FP.FTS.B,

23.24%,

3/02/27

18,575

18,262

APP-12005996.FP.FTS.B,

15.49%,

3/03/27

10,929

10,909

APP-12185324.FP.FTS.B,

19.99%,

3/04/27

12,169

12,035

APP-11708192.FP.FTS.B,

25.49%,

3/04/27

10,496

10,373

APP-12105218.FP.FTS.B,

10.99%,

3/05/27

22,656

22,992

APP-12101962.FP.FTS.B,

13.49%,

3/05/27

13,787

6,959

APP-12214905.FP.FTS.B,

16.49%,

3/05/27

10,965

11,081

APP-12159801.FP.FTS.B,

16.99%,

3/05/27

25,411

25,419

APP-12123398.FP.FTS.B,

19.99%,

3/05/27

18,464

18,256

APP-12164096.FP.FTS.B,

21.49%,

3/05/27

13,293

13,115

APP-12133804.FP.FTS.B,

10.99%,

3/06/27

19,796

20,065

APP-12168034.FP.FTS.B,

18.99%,

3/06/27

14,463

14,424

APP-12172482.FP.FTS.B,

20.49%,

3/06/27

26,153

26,162

APP-12050159.FP.FTS.B,

13.24%,

3/07/27

31,521

31,933

APP-12124756.FP.FTS.B,

13.24%,

3/07/27

3,274

3,269

APP-12032991.FP.FTS.B,

14.49%,

3/07/27

21,372

21,604

APP-12171245.FP.FTS.B,

16.99%,

3/07/27

27,760

5,524

APP-12125835.FP.FTS.B,

19.99%,

3/07/27

13,072

13,052

APP-12168830.FP.FTS.B,

22.49%,

3/07/27

9,568

9,463

APP-12140862.FP.FTS.B,

8.99%,

3/08/27

.

23,394

23,775

APP-12164888.FP.FTS.B,

8.99%,

3/08/27

.

30,412

30,828

APP-12105970.FP.FTS.B,

10.99%,

3/08/27

20,252

20,543

APP-12155604.FP.FTS.B,

11.24%,

3/08/27

14,222

14,427

APP-12097459.FP.FTS.B,

13.24%,

3/08/27

22,684

22,980

APP-12106008.FP.FTS.B,

13.49%,

3/08/27

14,338

14,530

APP-12050743.FP.FTS.B,

14.99%,

3/08/27

16,032

16,208

APP-12150738.FP.FTS.B,

16.74%,

3/08/27

39,682

40,122

APP-12167178.FP.FTS.B,

17.49%,

3/08/27

23,310

23,329

APP-12188890.FP.FTS.B,

20.49%,

3/08/27

17,402

17,254

APP-12432804.FP.FTS.B,

13.24%,

3/09/27

33,080

33,448

APP-12366828.FP.FTS.B,

16.99%,

3/09/27

14,691

14,819

APP-12427802.FP.FTS.B,

18.24%,

3/09/27

46,511

15,017

APP-12427999.FP.FTS.B,

18.99%,

3/09/27

23,863

23,816

APP-12176276.FP.FTS.B,

19.99%,

3/09/27

17,693

17,655

APP-11965580.FP.FTS.B,

20.49%,

3/09/27

25,472

25,271

APP-11508449.FP.FTS.B,

8.49%,

3/10/27

.

27,646

27,993

APP-12216897.FP.FTS.B,

10.99%,

3/10/27

35,851

36,304

APP-12448900.FP.FTS.B,

13.24%,

3/10/27

28,477

28,798

APP-12450922.FP.FTS.B,

15.24%,

3/10/27

32,992

33,004

APP-12451319.FP.FTS.B,

17.49%,

3/10/27

10,939

10,886

APP-12203395.FP.FTS.B,

22.49%,

3/10/27

10,299

10,230

APP-12199670.FP.FTS.B,

10.99%,

3/11/27

30,312

30,685

APP-12459432.FP.FTS.B,

13.24%,

3/11/27

22,637

22,902

APP-12464629.FP.FTS.B,

16.49%,

3/11/27

13,677

13,840

APP-12459441.FP.FTS.B,

17.49%,

3/11/27

15,505

15,518

APP-12210087.FP.FTS.B,

18.74%,

3/11/27

46,020

46,050

APP-12212610.FP.FTS.B,

18.99%,

3/11/27

8,843

8,873

APP-12459768.FP.FTS.B,

19.74%,

3/11/27

31,690

31,570

APP-12071137.FP.FTS.B,

19.99%,

3/11/27

25,205

25,147

APP-12460903.FP.FTS.B,

10.99%,

3/15/27

35,902

36,408

APP-12467297.FP.FTS.B,

13.24%,

3/15/27

28,506

28,877

APP-12442169.FP.FTS.B,

14.49%,

3/15/27

19,052

19,264

APP-12291770.FP.FTS.B,

16.49%,

3/15/27

9,198

9,196

APP-12420649.FP.FTS.B,

16.74%,

3/15/27

38,972

39,420

APP-12422367.FP.FTS.B,

18.49%,

3/15/27

10,933

10,942

APP-12379303.FP.FTS.B,

13.24%,

3/16/27

21,834

22,126

APP-12345397.FP.FTS.B,

19.74%,

3/16/27

36,803

36,612

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12196952.FP.FTS.B,

19.99%,

3/16/27

$

14,538

$

14,463

APP-12407602.FP.FTS.B,

19.99%,

3/16/27

16,572

16,549

APP-12408935.FP.FTS.B,

19.99%,

3/17/27

12,898

12,839

APP-12433554.FP.FTS.B,

25.49%,

3/17/27

9,338

9,273

APP-12462116.FP.FTS.B,

17.49%,

3/18/27

26,565

26,680

APP-11948900.FP.FTS.B,

17.74%,

3/18/27

40,322

40,499

APP-12418630.FP.FTS.B,

17.99%,

3/18/27

19,258

19,174

APP-12433361.FP.FTS.B,

18.49%,

3/18/27

17,263

17,190

APP-12461150.FP.FTS.B,

18.49%,

3/18/27

16,536

16,465

APP-12421799.FP.FTS.B,

19.74%,

3/18/27

27,686

27,650

APP-12244962.FP.FTS.B,

19.99%,

3/18/27

9,219

9,217

APP-12463831.FP.FTS.B,

19.99%,

3/18/27

9,176

9,197

APP-12357813.FP.FTS.B,

10.99%,

3/20/27

28,783

29,230

APP-12238970.FP.FTS.B,

11.24%,

3/20/27

11,707

11,887

APP-12287686.FP.FTS.B,

11.24%,

3/20/27

21,612

21,915

APP-12422648.FP.FTS.B,

13.24%,

3/20/27

20,975

21,285

APP-12380981.FP.FTS.B,

13.74%,

3/20/27

9,926

10,084

APP-12392789.FP.FTS.B,

18.99%,

3/20/27

16,572

16,629

APP-12230901.FP.FTS.B,

20.24%,

3/20/27

46,160

46,205

APP-12412709.FP.FTS.B,

20.24%,

3/20/27

43,757

43,801

APP-12424835.FP.FTS.B,

23.99%,

3/20/27

30,313

30,162

APP-12459776.FP.FTS.B,

10.99%,

3/21/27

30,394

30,874

APP-12287335.FP.FTS.B,

13.24%,

3/21/27

19,081

19,364

APP-12402614.FP.FTS.B,

13.74%,

3/21/27

23,929

24,305

APP-12450320.FP.FTS.B,

19.99%,

3/21/27

12,932

12,904

APP-12415203.FP.FTS.B,

21.24%,

3/21/27

22,085

21,990

APP-12176796.FP.FTS.B,

8.99%,

3/22/27

.

24,729

25,065

APP-12345892.FP.FTS.B,

13.49%,

3/22/27

14,647

14,866

APP-11904597.FP.FTS.B,

14.74%,

3/22/27

28,886

29,044

APP-12345261.FP.FTS.B,

15.49%,

3/22/27

22,370

22,485

APP-12443158.FP.FTS.B,

17.49%,

3/22/27

11,015

11,030

APP-12453912.FP.FTS.B,

19.74%,

3/22/27

39,033

4,055

APP-12463880.FP.FTS.B,

19.74%,

3/22/27

39,055

4,054

APP-12402250.FP.FTS.B,

19.99%,

3/22/27

23,733

23,758

APP-12446716.FP.FTS.B,

22.49%,

3/22/27

8,561

8,554

APP-12270745.FP.FTS.B,

17.74%,

3/23/27

35,281

35,350

APP-12429877.FP.FTS.B,

19.74%,

3/23/27

27,722

27,793

APP-12435676.FP.FTS.B,

20.49%,

3/23/27

37,050

36,951

APP-12414131.FP.FTS.B,

10.99%,

3/24/27

19,095

19,418

APP-12420863.FP.FTS.B,

17.49%,

3/24/27

17,589

17,717

APP-12463499.FP.FTS.B,

17.49%,

3/24/27

21,263

21,387

APP-12468743.FP.FTS.B,

18.24%,

3/24/27

29,471

29,630

APP-12468934.FP.FTS.B,

19.99%,

3/24/27

9,273

9,329

APP-12408200.FP.FTS.B,

21.74%,

3/24/27

24,368

24,297

APP-12468566.FP.FTS.B,

19.74%,

3/25/27

28,918

29,121

APP-11872544.FP.FTS.B,

19.99%,

3/25/27

12,689

12,691

APP-12171005.FP.FTS.B,

23.99%,

4/08/27

29,615

29,275

APP-12185506.FP.FTS.B,

25.49%,

4/09/27

9,762

6,247

APP-14835801.FP.FTS.B,

11.24%,

6/05/27

28,850

29,186

APP-15016056.FP.FTS.B,

19.24%,

6/06/27

33,412

33,369

APP-14953646.FP.FTS.B,

24.24%,

6/06/27

39,114

38,710

APP-15030908.FP.FTS.B,

16.49%,

6/12/27

16,615

5,132

APP-15007182.FP.FTS.B,

16.99%,

7/11/27

10,983

11,095

APP-15105817.FP.FTS.B,

11.74%,

7/15/27

20,909

21,223

APP-15110260.FP.FTS.B,

13.99%,

7/15/27

30,505

30,934

APP-14523455.FP.FTS.B,

17.24%,

7/15/27

37,755

37,950

APP-15113452.FP.FTS.B,

18.49%,

7/15/27

12,368

12,451

APP-15103060.FP.FTS.B,

19.99%,

7/15/27

15,165

15,244

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

89

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-15042778.FP.FTS.B,

20.99%,

7/15/27

$

21,698

$

21,773

APP-15066730.FP.FTS.B,

20.99%,

7/15/27

13,846

13,855

APP-15072603.FP.FTS.B,

21.24%,

7/15/27

46,104

46,133

APP-15031339.FP.FTS.B,

24.74%,

7/15/27

18,060

18,109

APP-15871573.FP.FTS.B,

10.99%,

7/20/27

31,872

32,284

APP-14544639.FP.FTS.B,

11.99%,

7/21/27

14,291

14,534

APP-16662334.FP.FTS.B,

15.24%,

7/26/27

25,044

25,391

APP-15072881.FP.FTS.B,

17.49%,

7/26/27

14,446

14,706

APP-15066733.FP.FTS.B,

18.99%,

7/26/27

13,625

13,718

APP-15119411.FP.FTS.B,

9.74%,

7/28/27

.

22,355

22,768

APP-15112623.FP.FTS.B,

13.74%,

7/28/27

8,801

8,909

APP-15122204.FP.FTS.B,

20.74%,

7/28/27

11,629

11,714

APP-15116487.FP.FTS.B,

21.49%,

7/28/27

16,542

16,688

APP-14371097.FP.FTS.B,

14.74%,

7/29/27

48,005

48,952

APP-15602293.FP.FTS.B,

15.49%,

7/30/27

14,989

15,234

APP-16465567.FP.FTS.B,

15.49%,

7/30/27

14,478

14,702

APP-16645516.FP.FTS.B,

10.99%,

7/31/27

19,994

20,329

APP-16640475.FP.FTS.B,

12.74%,

8/02/27

17,439

17,702

APP-16637899.FP.FTS.B,

15.49%,

8/02/27

18,343

18,603

APP-17319474.FP.FTS.B,

16.49%,

8/07/27

48,730

49,283

APP-17245315.FP.FTS.B,

17.74%,

8/09/27

10,273

10,328

APP-16283011.FP.FTS.B,

11.74%,

8/10/27

48,683

49,357

APP-17385444.FP.FTS.B,

15.24%,

8/12/27

24,406

24,725

APP-17439705.FP.FTS.B,

15.24%,

8/12/27

37,737

38,231

APP-15106325.FP.FTS.B,

23.24%,

8/28/27

18,481

18,687

APP-15098807.FP.FTS.B,

26.99%,

8/28/27

11,700

12,140

APP-15124536.FP.FTS.B,

22.99%,

8/29/27

11,000

2,407

APP-16637910.FP.FTS.B,

16.24%,

8/31/27

17,422

17,698

APP-16679044.FP.FTS.B,

8.99%,

9/01/27

.

13,157

13,332

APP-16632155.FP.FTS.B,

11.49%,

9/01/27

17,059

17,301

APP-16448250.FP.FTS.B,

13.49%,

9/01/27

6,832

6,921

APP-16676570.FP.FTS.B,

15.24%,

9/01/27

20,519

20,614

APP-16595714.FP.FTS.B,

16.24%,

9/01/27

19,185

19,453

APP-16714770.FP.FTS.B,

14.49%,

9/02/27

48,852

49,587

APP-16709500.FP.FTS.B,

15.49%,

9/02/27

47,688

48,378

APP-16718578.FP.FTS.B,

15.74%,

9/02/27

10,756

10,917

APP-16852920.FP.FTS.B,

10.99%,

9/04/27

37,949

38,508

APP-16640455.FP.FTS.B,

10.99%,

9/05/27

21,988

22,332

APP-16682911.FP.FTS.B,

14.49%,

9/05/27

16,989

17,249

APP-16800634.FP.FTS.B,

15.99%,

9/10/27

48,029

48,843

APP-16335596.FP.FTS.B,

10.99%,

9/12/27

26,036

26,508

APP-16627732.FP.FTS.B,

12.99%,

9/12/27

24,492

24,948

APP-16399010.FP.FTS.B,

15.24%,

9/12/27

20,666

21,044

APP-15052242.FP.FTS.B,

11.74%,

9/13/27

49,006

50,314

APP-16664397.FP.FTS.B,

12.99%,

9/13/27

24,508

24,973

APP-17484422.FP.FTS.B,

15.24%,

9/13/27

21,585

21,877

APP-10624729.FP.FTS.B,

15.74%,

9/13/27

26,415

26,929

APP-17458875.FP.FTS.B,

16.49%,

9/13/27

4,887

4,955

APP-16677695.FP.FTS.B,

12.99%,

9/14/27

26,471

26,983

APP-16617425.FP.FTS.B,

9.49%,

9/15/27

.

20,570

20,933

APP-16687847.FP.FTS.B,

9.49%,

9/15/27

.

19,543

19,906

APP-17011228.FP.FTS.B,

14.74%,

9/15/27

49,188

50,119

APP-16720658.FP.FTS.B,

15.24%,

9/15/27

38,310

38,999

APP-16686496.FP.FTS.B,

15.74%,

9/15/27

9,861

10,065

APP-17027051.FP.FTS.B,

14.49%,

9/16/27

13,943

14,195

APP-16657112.FP.FTS.B,

15.24%,

9/16/27

21,784

22,218

APP-17010091.FP.FTS.B,

15.49%,

9/18/27

39,330

40,129

APP-17488419.FP.FTS.B,

16.49%,

9/20/27

5,715

5,814

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-16637461.FP.FTS.B,

18.49%,

9/20/27

$

18,671

$

18,980

APP-17511251.FP.FTS.B,

17.99%,

9/21/27

22,589

22,974

APP-17497296.FP.FTS.B,

17.74%,

9/23/27

12,778

12,965

APP-17082038.FP.FTS.B,

12.49%,

9/26/27

30,073

30,668

APP-17385910.FP.FTS.B,

15.24%,

9/26/27

37,322

38,061

APP-17490395.FP.FTS.B,

15.24%,

9/26/27

32,411

33,053

APP-17458413.FP.FTS.B,

17.74%,

9/26/27

10,719

10,934

APP-17115062.FP.FTS.B,

17.99%,

9/26/27

19,204

19,515

APP-17461708.FP.FTS.B,

12.49%,

9/27/27

31,043

31,668

APP-17239533.FP.FTS.B,

13.74%,

9/27/27

19,623

20,023

APP-17504832.FP.FTS.B,

13.74%,

9/27/27

21,219

21,677

APP-17102136.FP.FTS.B,

14.24%,

9/27/27

48,574

49,523

APP-17485387.FP.FTS.B,

15.24%,

9/27/27

36,080

36,810

10,073,868

LendingClub

Corp.

-

LCX

163452323.LC.FTS.B,

6.46%,

12/17/22

...

608

607

163655887.LC.FTS.B,

8.81%,

12/23/22

...

2,422

2,421

163868384.LC.FTS.B,

23.05%,

12/27/22

..

753

762

163869594.LC.FTS.B,

25.65%,

12/27/22

..

1,926

1,919

163871880.LC.FTS.B,

25.65%,

12/27/22

..

1,833

1,855

163925247.LC.FTS.B,

25.65%,

12/27/22

..

1,272

1,281

163306459.LC.FTS.B,

8.81%,

12/29/22

...

2,861

2,852

164015868.LC.FTS.B,

23.05%,

12/30/22

..

335

335

163941621.LC.FTS.B,

Zero

Cpn,

12/31/22

7,810

4,127

163637444.LC.FTS.B,

20.55%,

12/31/22

..

2,694

2,693

164071817.LC.FTS.B,

10.33%,

1/03/23

...

478

476

162484042.LC.FTS.B,

23.05%,

1/03/23

...

116

115

164643957.LC.FTS.B,

6.46%,

1/10/23

...

281

280

164734842.LC.FTS.B,

6.46%,

1/14/23

...

3,638

3,625

164753318.LC.FTS.B,

7.56%,

1/14/23

...

1,383

1,381

164807045.LC.FTS.B,

11.71%,

1/14/23

...

1,945

236

164808805.LC.FTS.B,

13.08%,

1/14/23

...

1,188

1,182

162683524.LC.FTS.B,

23.05%,

1/15/23

...

3,989

3,991

165032371.LC.FTS.B,

Zero

Cpn,

1/21/23

.

9,686

4,455

164689412.LC.FTS.B,

11.71%,

1/21/23

...

779

778

165466706.LC.FTS.B,

7.56%,

1/24/23

...

1,166

1,163

165386603.LC.FTS.B,

8.19%,

1/24/23

...

3,720

3,714

165504889.LC.FTS.B,

8.81%,

1/24/23

...

281

281

165073250.LC.FTS.B,

12.4%,

1/24/23

...

1,970

1,963

163911666.LC.FTS.B,

15.24%,

1/24/23

...

3,795

3,790

165529419.LC.FTS.B,

16.95%,

1/24/23

...

1,224

257

165216714.LC.FTS.B,

17.74%,

1/24/23

...

4,259

4,222

165116341.LC.FTS.B,

6.46%,

1/27/23

....

949

948

165397059.LC.FTS.B,

17.74%,

1/27/23

...

1,049

1,053

165575241.LC.FTS.B,

17.74%,

1/27/23

...

1,865

1,873

164685625.LC.FTS.B,

10.33%,

1/31/23

...

3,052

3,038

166123497.LC.FTS.B,

8.81%,

2/05/23

...

2,740

2,728

166505020.LC.FTS.B,

8.19%,

2/11/23

....

3,942

3,927

164964075.LC.FTS.B,

8.81%,

2/13/23

...

311

309

166669255.LC.FTS.B,

15.24%,

2/14/23

...

490

483

166191657.LC.FTS.B,

7.02%,

2/16/23

...

4,954

4,929

166966308.LC.FTS.B,

16.12%,

2/19/23

...

340

336

166195099.LC.FTS.B,

7.56%,

2/20/23

...

4,896

4,061

166496776.LC.FTS.B,

7.56%,

2/25/23

...

4,952

4,928

166744387.LC.FTS.B,

16.12%,

2/25/23

...

4,230

4,160

167114304.LC.FTS.B,

17.74%,

2/28/23

...

1,389

1,392

167520510.LC.FTS.B,

23.05%,

3/02/23

...

4,691

4,647

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

LendingClub

Corp.

-

LCX

(continued)

168159441.LC.FTS.B,

8.81%,

3/11/23

....

$

3,102

$

3,041

168351728.LC.FTS.B,

14.3%,

3/16/23

...

1,760

1,729

165899098.LC.FTS.B,

17.74%,

4/10/23

...

3,578

625

164077353.LC.FTS.B,

10%,

4/30/23

.....

5,307

5,294

167126995.LC.FTS.B,

23.05%,

5/02/23

...

8,474

8,035

167907245.LC.FTS.B,

6.46%,

5/15/23

...

4,203

4,106

163866777.LC.FTS.B,

14.3%,

6/24/23

...

3,467

3,463

159198648.LC.FTS.B,

17.74%,

9/25/24

...

7,299

7,155

158981937.LC.FTS.B,

16.12%,

9/26/24

...

7,195

7,069

161888275.LC.FTS.B,

15.24%,

11/14/24

..

7,643

7,380

162030908.LC.FTS.B,

12.4%,

11/19/24

...

7,879

7,073

162266279.LC.FTS.B,

11.02%,

11/22/24

..

14,517

13,993

161858763.LC.FTS.B,

14.3%,

11/29/24

...

2,584

2,495

162318190.LC.FTS.B,

13.08%,

12/13/24

..

2,774

2,459

163115691.LC.FTS.B,

13.08%,

12/13/24

..

19,519

18,804

163517783.LC.FTS.B,

13.08%,

12/18/24

..

12,326

11,134

163658787.LC.FTS.B,

10.33%,

12/23/24

..

4,911

4,504

163479653.LC.FTS.B,

20.55%,

12/30/24

..

6,642

6,371

163615560.LC.FTS.B,

20.55%,

12/30/24

..

8,631

8,311

163919650.LC.FTS.B,

20.55%,

12/30/24

..

3,510

3,380

163989384.LC.FTS.B,

23.05%,

12/30/24

..

11,801

11,360

164050345.LC.FTS.B,

13.08%,

12/31/24

..

15,908

15,237

164510336.LC.FTS.B,

13.08%,

1/15/25

...

15,983

14,701

164586812.LC.FTS.B,

8.19%,

1/27/25

...

6,952

6,487

166081454.LC.FTS.B,

8.19%,

2/07/25

...

20,700

20,150

162966512.LC.FTS.B,

11.02%,

2/12/25

...

11,864

10,488

166603986.LC.FTS.B,

10.33%,

2/15/25

...

11,152

10,629

166880211.LC.FTS.B,

8.19%,

2/18/25

....

10,281

9,406

163292439.LC.FTS.B,

8.19%,

2/23/25

...

8,556

7,719

167015464.LC.FTS.B,

8.19%,

2/24/25

...

1,714

1,612

166833583.LC.FTS.B,

13.08%,

2/24/25

...

14,549

13,157

167466589.LC.FTS.B,

8.19%,

2/27/25

...

6,727

6,249

166039716.LC.FTS.B,

10.33%,

2/28/25

...

20,885

19,983

164031282.LC.FTS.B,

12.4%,

2/28/25

...

22,166

21,159

164067189.LC.FTS.B,

13.08%,

2/28/25

...

20,295

19,357

165441115.LC.FTS.B,

8.81%,

3/24/25

....

8,333

7,529

168296354.LC.FTS.B,

13.08%,

5/13/25

...

12,012

10,815

165291472.LC.FTS.B,

14.3%,

9/21/25

...

19,992

17,856

168006688.LC.FTS.B,

8.19%,

11/21/25

...

15,653

14,041

161875960.LC.FTS.B,

14.3%,

11/14/32

...

1,187

1,190

455,119

LendingClub

Corp.

-

LCX

PM

169579201.LC.FTS.B,

10.81%,

9/14/23

...

10,254

10,033

170457540.LC.FTS.B,

10.81%,

9/16/23

...

1,702

1,667

170462708.LC.FTS.B,

10.81%,

9/17/23

...

6,809

6,645

170309569.LC.FTS.B,

19.12%,

9/17/23

...

2,210

2,135

170617520.LC.FTS.B,

10.81%,

9/22/23

...

6,469

6,238

170507906.LC.FTS.B,

10.81%,

9/23/23

...

2,043

1,989

170767991.LC.FTS.B,

15.4%,

9/23/23

...

711

699

170641460.LC.FTS.B,

14.02%,

9/24/23

...

3,019

2,924

170374076.LC.FTS.B,

18.24%,

9/25/23

...

1,830

1,797

170680534.LC.FTS.B,

Zero

Cpn,

9/28/23

.

4,719

455

170726414.LC.FTS.B,

9.56%,

9/28/23

...

4,036

3,931

170377461.LC.FTS.B,

10.81%,

9/28/23

...

5,788

5,671

170702407.LC.FTS.B,

10.81%,

9/28/23

...

3,745

3,617

170157478.LC.FTS.B,

8.46%,

9/29/23

...

5,160

4,953

170737567.LC.FTS.B,

9.56%,

9/29/23

...

365

353

Description

Principal

Amount

Value

LendingClub

Corp.

-

LCX

PM

(continued)

170808772.LC.FTS.B,

10.81%,

9/29/23

...

$

9,944

$

9,668

170736018.LC.FTS.B,

14.71%,

9/29/23

...

9,640

9,311

170929457.LC.FTS.B,

14.02%,

9/30/23

...

457

443

170837848.LC.FTS.B,

9.56%,

10/01/23

...

10,967

10,635

170013981.LC.FTS.B,

10.81%,

10/01/23

..

5,131

821

170705708.LC.FTS.B,

9.56%,

10/05/23

...

5,483

5,227

170268845.LC.FTS.B,

10.19%,

10/06/23

..

5,532

5,309

170930834.LC.FTS.B,

10.19%,

10/06/23

..

9,192

8,856

170985931.LC.FTS.B,

10.81%,

10/06/23

..

12,829

2,074

171220560.LC.FTS.B,

8.46%,

10/14/23

...

10,854

10,539

171032133.LC.FTS.B,

10.81%,

10/14/23

..

739

718

170963456.LC.FTS.B,

19.95%,

10/14/23

..

8,015

7,837

171252541.LC.FTS.B,

10.19%,

10/15/23

..

551

538

171215486.LC.FTS.B,

10.81%,

10/15/23

..

1,849

1,782

171271973.LC.FTS.B,

19.12%,

10/15/23

..

3,982

3,896

171218548.LC.FTS.B,

9.56%,

10/20/23

...

4,021

3,887

171361625.LC.FTS.B,

10.19%,

10/20/23

..

3,652

3,554

171055998.LC.FTS.B,

14.02%,

10/20/23

..

6,472

6,242

171428113.LC.FTS.B,

18.24%,

10/20/23

..

6,718

6,471

171178790.LC.FTS.B,

8.46%,

10/21/23

...

5,455

5,223

171245584.LC.FTS.B,

8.46%,

10/22/23

...

1,990

1,936

171373758.LC.FTS.B,

10.19%,

10/22/23

..

11,030

10,708

171444548.LC.FTS.B,

10.81%,

10/22/23

..

12,041

9,417

170652695.LC.FTS.B,

14.02%,

10/24/23

..

1,908

1,846

170976689.LC.FTS.B,

8.46%,

10/28/23

...

4,884

4,741

171446797.LC.FTS.B,

9.56%,

10/28/23

...

5,483

5,212

171666793.LC.FTS.B,

18.24%,

10/28/23

..

3,406

3,272

171357136.LC.FTS.B,

9.02%,

10/31/23

...

3,942

3,765

171974686.LC.FTS.B,

10.81%,

11/17/23

..

2,792

2,692

172045506.LC.FTS.B,

10.81%,

11/17/23

..

9,909

9,511

172080082.LC.FTS.B,

9.02%,

11/18/23

...

9,814

9,529

172099990.LC.FTS.B,

16.08%,

11/19/23

..

836

816

172294502.LC.FTS.B,

8.46%,

11/24/23

...

3,906

3,792

171941466.LC.FTS.B,

10.81%,

11/24/23

..

4,786

4,522

172262310.LC.FTS.B,

9.56%,

12/04/23

...

5,077

4,909

173236004.LC.FTS.B,

19.12%,

12/23/23

..

4,575

4,487

173214358.LC.FTS.B,

19.12%,

12/28/23

..

4,575

4,494

170814981.LC.FTS.B,

10.81%,

12/29/23

..

8,945

8,008

173241001.LC.FTS.B,

17.3%,

12/29/23

...

1,821

1,790

173377840.LC.FTS.B,

19.12%,

12/29/23

..

1,946

1,913

173362025.LC.FTS.B,

20.74%,

12/29/23

..

3,692

3,629

173352354.LC.FTS.B,

15.4%,

12/30/23

...

2,413

2,366

173536070.LC.FTS.B,

16.08%,

1/05/24

...

1,188

1,160

173391094.LC.FTS.B,

17.3%,

1/05/24

...

1,439

1,398

173509997.LC.FTS.B,

10.81%,

1/06/24

...

2,281

2,187

173417195.LC.FTS.B,

14.71%,

1/06/24

...

7,056

6,861

172997854.LC.FTS.B,

19.12%,

1/08/24

...

1,459

1,419

173544565.LC.FTS.B,

19.12%,

1/08/24

...

4,865

4,719

173451209.LC.FTS.B,

18.24%,

1/09/24

...

15,777

15,067

173800712.LC.FTS.B,

8.24%,

1/19/24

...

5,714

5,557

173898269.LC.FTS.B,

16.99%,

1/19/24

...

6,319

6,248

173997873.LC.FTS.B,

17.49%,

1/20/24

...

5,286

5,216

173925637.LC.FTS.B,

19.12%,

1/20/24

...

2,598

2,035

173397544.LC.FTS.B,

20.74%,

1/20/24

...

1,772

1,730

173912279.LC.FTS.B,

9.99%,

1/21/24

...

5,891

5,599

173996422.LC.FTS.B,

13.19%,

1/21/24

...

837

826

172932879.LC.FTS.B,

15.4%,

1/21/24

...

8,531

8,080

174033162.LC.FTS.B,

16.49%,

1/21/24

...

1,192

1,180

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

91

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

LendingClub

Corp.

-

LCX

PM

(continued)

174050191.LC.FTS.B,

16.99%,

1/22/24

...

$

2,394

$

2,358

173826580.LC.FTS.B,

16.99%,

1/24/24

...

8,685

8,467

174172795.LC.FTS.B,

15.99%,

1/27/24

...

3,313

3,243

174195278.LC.FTS.B,

16.49%,

1/27/24

...

2,861

2,834

174192330.LC.FTS.B,

20.74%,

1/27/24

...

7,891

7,786

174098270.LC.FTS.B,

6.74%,

2/01/24

...

9,388

9,037

174115077.LC.FTS.B,

8.49%,

2/01/24

....

14,276

13,834

174204894.LC.FTS.B,

12.34%,

2/01/24

...

7,351

7,077

174276782.LC.FTS.B,

17.19%,

2/01/24

...

507

499

174033886.LC.FTS.B,

12.49%,

2/05/24

...

12,526

12,286

174134025.LC.FTS.B,

16.99%,

2/05/24

...

10,191

10,021

170877107.LC.FTS.B,

17.3%,

3/02/24

...

6,792

6,399

170431322.LC.FTS.B,

18.24%,

9/14/25

...

3,444

3,315

170592201.LC.FTS.B,

14.02%,

9/16/25

...

13,312

12,724

170055181.LC.FTS.B,

16.08%,

9/16/25

...

10,157

9,829

170639161.LC.FTS.B,

19.12%,

9/18/25

...

6,936

6,686

169850794.LC.FTS.B,

16.08%,

9/22/25

...

10,156

9,646

170786159.LC.FTS.B,

14.02%,

9/25/25

...

15,974

14,916

170163928.LC.FTS.B,

15.4%,

9/25/25

...

6,766

6,560

170812112.LC.FTS.B,

14.02%,

9/29/25

...

13,618

12,847

170252312.LC.FTS.B,

16.08%,

9/30/25

...

671

668

170992474.LC.FTS.B,

17.3%,

10/02/25

...

6,987

6,689

171032242.LC.FTS.B,

19.12%,

10/02/25

..

10,625

10,169

170941274.LC.FTS.B,

16.08%,

10/05/25

..

20,764

19,576

171264911.LC.FTS.B,

19.12%,

10/14/25

..

10,625

10,204

171461721.LC.FTS.B,

16.08%,

10/20/25

..

7,635

7,378

170983832.LC.FTS.B,

20.74%,

10/20/25

..

18,563

17,694

171322854.LC.FTS.B,

16.08%,

10/22/25

..

17,303

16,513

172014503.LC.FTS.B,

14.02%,

11/17/25

..

14,907

13,965

172156822.LC.FTS.B,

14.02%,

11/24/25

..

6,961

6,276

172665217.LC.FTS.B,

15.4%,

12/04/25

...

8,911

3,119

172752552.LC.FTS.B,

16.08%,

12/10/25

..

8,660

8,386

173203429.LC.FTS.B,

15.4%,

12/23/25

...

24,335

23,505

173295643.LC.FTS.B,

19.12%,

12/28/25

..

8,845

8,564

172820246.LC.FTS.B,

15.4%,

12/30/25

...

20,517

19,937

172843470.LC.FTS.B,

16.08%,

1/06/26

...

13,251

12,893

173301532.LC.FTS.B,

17.3%,

1/06/26

...

22,267

21,098

173496629.LC.FTS.B,

16.08%,

1/14/26

...

20,402

18,744

172611713.LC.FTS.B,

19.12%,

1/14/26

...

12,115

11,644

173772624.LC.FTS.B,

14.44%,

1/15/26

...

3,640

3,507

173580706.LC.FTS.B,

17.3%,

1/15/26

...

17,358

16,694

173816609.LC.FTS.B,

19.44%,

1/15/26

...

3,763

3,666

173303101.LC.FTS.B,

19.95%,

1/15/26

...

11,506

11,061

173493292.LC.FTS.B,

19.95%,

1/15/26

...

10,984

10,559

173821408.LC.FTS.B,

21.49%,

1/19/26

...

11,893

11,709

173896730.LC.FTS.B,

23.99%,

1/19/26

...

7,739

7,616

173933933.LC.FTS.B,

13.49%,

1/20/26

...

14,462

13,699

173875674.LC.FTS.B,

14.74%,

1/20/26

...

26,261

24,328

173856403.LC.FTS.B,

14.99%,

1/20/26

...

17,538

16,185

173270899.LC.FTS.B,

15.4%,

1/20/26

...

29,649

27,942

173854798.LC.FTS.B,

21.49%,

1/20/26

...

7,658

7,502

173998821.LC.FTS.B,

21.49%,

1/20/26

...

7,623

7,508

173871807.LC.FTS.B,

21.99%,

1/20/26

...

9,229

9,073

174067801.LC.FTS.B,

15.24%,

1/22/26

...

10,980

10,817

174045948.LC.FTS.B,

17.44%,

1/22/26

...

14,116

13,902

174087634.LC.FTS.B,

23.99%,

1/22/26

...

11,608

11,440

172757520.LC.FTS.B,

19.12%,

1/24/26

...

8,724

8,428

173785381.LC.FTS.B,

16.74%,

1/25/26

...

11,891

11,707

Description

Principal

Amount

Value

LendingClub

Corp.

-

LCX

PM

(continued)

173956639.LC.FTS.B,

18.19%,

1/25/26

...

$

4,950

$

4,826

173841383.LC.FTS.B,

21.49%,

1/25/26

...

23,024

22,658

173813936.LC.FTS.B,

19.74%,

1/27/26

...

18,098

17,799

174031108.LC.FTS.B,

21.99%,

1/27/26

...

26,114

25,776

173737758.LC.FTS.B,

9.59%,

1/28/26

...

14,816

14,054

173910442.LC.FTS.B,

17.24%,

1/28/26

...

14,920

14,691

173430770.LC.FTS.B,

13.33%,

2/01/26

...

29,664

27,887

174278232.LC.FTS.B,

23.99%,

2/01/26

...

23,501

22,984

1,104,179

Prosper

Funding

LLC

1473148.PS.FTS.B,

13.99%,

11/12/23

....

589

584

1484667.PS.FTS.B,

12.74%,

11/17/23

....

1,621

1,619

1478692.PS.FTS.B,

18.99%,

11/24/23

....

2,431

2,415

1475141.PS.FTS.B,

23.2%,

11/25/23

....

1,321

1,323

1501929.PS.FTS.B,

14.19%,

12/22/23

...

3,957

3,909

1491946.PS.FTS.B,

15.49%,

12/22/23

...

1,111

1,102

1579196.PS.FTS.B,

25.75%,

6/29/24

....

4,716

4,750

1602993.PS.FTS.B,

8.7%,

7/23/24

......

17,505

2,155

1602999.PS.FTS.B,

14.24%,

7/23/24

....

5,393

5,230

1609512.PS.FTS.B,

16%,

8/05/24

.......

6,000

5,764

1603345.PS.FTS.B,

12.8%,

8/06/24

.....

1,864

1,805

1603735.PS.FTS.B,

14.7%,

8/06/24

.....

7,947

7,638

1603741.PS.FTS.B,

16.6%,

8/06/24

.....

5,015

4,819

1610577.PS.FTS.B,

19.8%,

8/06/24

.....

4,439

4,286

1603033.PS.FTS.B,

24.6%,

8/07/24

.....

5,567

5,405

1611408.PS.FTS.B,

15.4%,

8/09/24

.....

6,646

6,395

1604533.PS.FTS.B,

17.1%,

8/09/24

.....

6,703

6,506

1611363.PS.FTS.B,

18.24%,

8/09/24

....

8,089

7,783

1610856.PS.FTS.B,

18.3%,

8/09/24

.....

6,782

6,559

1602188.PS.FTS.B,

14.29%,

8/10/24

....

6,642

–

1602197.PS.FTS.B,

18.41%,

8/10/24

....

3,317

3,193

1602614.PS.FTS.B,

19.8%,

8/10/24

.....

7,315

1,803

1613184.PS.FTS.B,

15.6%,

8/11/24

.....

6,653

6,406

1604249.PS.FTS.B,

13.4%,

8/13/24

.....

3,618

3,498

1610184.PS.FTS.B,

13.4%,

8/15/24

.....

8,598

8,294

1613274.PS.FTS.B,

14.39%,

8/16/24

....

16,383

2,065

1618425.PS.FTS.B,

19.8%,

8/20/24

.....

13,585

13,262

1608881.PS.FTS.B,

14.7%,

8/23/24

.....

1,987

1,922

1618983.PS.FTS.B,

19.8%,

8/23/24

.....

4,551

4,434

1609535.PS.FTS.B,

26.21%,

8/24/24

....

7,000

6,879

1614016.PS.FTS.B,

14.89%,

8/25/24

....

2,198

2,160

1610579.PS.FTS.B,

15%,

8/25/24

.......

3,316

3,211

1620933.PS.FTS.B,

15.7%,

8/25/24

.....

6,467

6,262

1620627.PS.FTS.B,

16.9%,

8/25/24

.....

7,367

7,120

1621098.PS.FTS.B,

17.5%,

8/25/24

.....

1,396

1,371

1615387.PS.FTS.B,

15.1%,

8/27/24

.....

3,448

3,341

1622424.PS.FTS.B,

16.1%,

8/27/24

.....

2,772

2,686

1617541.PS.FTS.B,

19.3%,

8/31/24

.....

9,223

405

1623215.PS.FTS.B,

24.81%,

9/20/24

....

5,376

5,255

1634217.PS.FTS.B,

24.51%,

9/21/24

....

7,470

6,395

1623656.PS.FTS.B,

25.71%,

9/21/24

....

7,225

7,093

1628356.PS.FTS.B,

11.6%,

9/22/24

.....

1,695

1,641

1635087.PS.FTS.B,

12.3%,

9/22/24

.....

6,802

6,586

1635063.PS.FTS.B,

14.56%,

9/22/24

....

7,846

7,596

1624643.PS.FTS.B,

15.12%,

9/22/24

....

2,622

2,531

1635060.PS.FTS.B,

16.64%,

9/22/24

....

10,414

10,051

1624631.PS.FTS.B,

17.8%,

9/22/24

.....

12,929

2,133

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1624646.PS.FTS.B,

18.4%,

9/22/24

.....

$

2,100

$

2,046

1624622.PS.FTS.B,

18.41%,

9/22/24

....

11,160

10,771

1628338.PS.FTS.B,

18.41%,

9/22/24

....

6,955

6,713

1624811.PS.FTS.B,

24.09%,

9/22/24

....

2,512

2,467

1635348.PS.FTS.B,

26.3%,

9/22/24

.....

1,449

1,423

1635891.PS.FTS.B,

13.7%,

9/23/24

.....

1,523

197

1635768.PS.FTS.B,

14.89%,

9/23/24

....

6,771

6,539

1629058.PS.FTS.B,

15.7%,

9/23/24

.....

1,728

1,669

1635762.PS.FTS.B,

17.96%,

9/23/24

....

4,692

3,919

1625948.PS.FTS.B,

11.6%,

9/24/24

.....

6,780

6,567

1626509.PS.FTS.B,

12.3%,

9/24/24

.....

7,483

7,248

1636260.PS.FTS.B,

12.76%,

9/24/24

....

1,363

1,321

1636335.PS.FTS.B,

13%,

9/24/24

.......

10,238

9,917

1636458.PS.FTS.B,

13.8%,

9/24/24

.....

3,083

2,986

1636257.PS.FTS.B,

14.56%,

9/24/24

....

11,113

–

1636308.PS.FTS.B,

14.56%,

9/24/24

....

2,063

1,998

1626602.PS.FTS.B,

16.1%,

9/24/24

.....

3,166

3,061

1625990.PS.FTS.B,

16.28%,

9/24/24

....

24,259

23,433

1625708.PS.FTS.B,

17.8%,

9/24/24

.....

8,376

8,169

1629244.PS.FTS.B,

17.96%,

9/24/24

....

6,775

6,544

1636317.PS.FTS.B,

18.2%,

9/24/24

.....

2,797

2,728

1636947.PS.FTS.B,

20.34%,

9/24/24

....

1,412

1,377

1634199.PS.FTS.B,

22.9%,

9/25/24

.....

7,166

7,005

1630390.PS.FTS.B,

11.6%,

9/27/24

.....

7,043

6,827

1630750.PS.FTS.B,

11.7%,

9/27/24

.....

8,304

8,052

1637526.PS.FTS.B,

12.3%,

9/27/24

.....

10,598

10,273

1630264.PS.FTS.B,

13.3%,

9/27/24

.....

2,827

2,741

1626884.PS.FTS.B,

15%,

9/27/24

.......

5,719

5,531

1637235.PS.FTS.B,

15.1%,

9/27/24

.....

3,576

3,458

1626683.PS.FTS.B,

15.4%,

9/27/24

.....

4,315

4,240

1637193.PS.FTS.B,

15.4%,

9/27/24

.....

14,928

14,448

1630384.PS.FTS.B,

16%,

9/27/24

.......

7,174

6,938

1630447.PS.FTS.B,

16%,

9/27/24

.......

2,872

2,777

1637214.PS.FTS.B,

16.39%,

9/27/24

....

4,825

4,665

1630396.PS.FTS.B,

16.43%,

9/27/24

....

13,738

13,285

1630414.PS.FTS.B,

16.43%,

9/27/24

....

1,439

1,391

1630381.PS.FTS.B,

20.8%,

9/27/24

.....

6,592

6,439

1627679.PS.FTS.B,

11.7%,

9/28/24

.....

3,523

3,454

1630936.PS.FTS.B,

12%,

9/28/24

.......

5,926

5,812

1631188.PS.FTS.B,

13.36%,

9/28/24

....

7,453

7,316

1630918.PS.FTS.B,

13.8%,

9/28/24

.....

5,689

5,587

1630933.PS.FTS.B,

13.81%,

9/28/24

....

10,668

10,477

1627928.PS.FTS.B,

14.7%,

9/28/24

.....

4,098

3,965

1627706.PS.FTS.B,

15.1%,

9/28/24

.....

1,430

1,403

1627796.PS.FTS.B,

15.4%,

9/28/24

.....

7,161

7,027

1628048.PS.FTS.B,

15.4%,

9/28/24

.....

5,042

4,950

1630837.PS.FTS.B,

15.4%,

9/28/24

.....

3,597

3,524

1638096.PS.FTS.B,

16.1%,

9/28/24

.....

3,649

3,568

1638078.PS.FTS.B,

18.11%,

9/28/24

....

8,693

8,548

1627961.PS.FTS.B,

19.3%,

9/28/24

.....

1,456

1,447

1631467.PS.FTS.B,

20.46%,

9/28/24

....

10,021

9,970

1638306.PS.FTS.B,

21.56%,

9/28/24

....

4,095

4,075

1639245.PS.FTS.B,

11.6%,

9/29/24

.....

3,897

3,826

1628921.PS.FTS.B,

13.7%,

9/30/24

.....

14,216

13,967

1639584.PS.FTS.B,

14.49%,

9/30/24

....

7,246

7,153

1635648.PS.FTS.B,

17.54%,

9/30/24

....

10,988

10,647

1627514.PS.FTS.B,

13.5%,

10/02/24

....

7,154

6,933

1642194.PS.FTS.B,

19.5%,

10/05/24

....

13,481

12,974

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1636828.PS.FTS.B,

16.1%,

10/07/24

....

$

1,347

$

1,319

1630822.PS.FTS.B,

13.86%,

10/11/24

....

11,448

11,044

1638108.PS.FTS.B,

16.5%,

10/25/24

....

7,221

7,053

1655337.PS.FTS.B,

12%,

10/27/24

......

5,869

5,660

1655328.PS.FTS.B,

15.4%,

10/27/24

....

2,225

2,148

1648597.PS.FTS.B,

15.5%,

10/27/24

....

7,467

7,201

1655466.PS.FTS.B,

17.8%,

10/27/24

....

11,229

10,938

1648606.PS.FTS.B,

18.11%,

10/27/24

....

2,249

2,171

1656180.PS.FTS.B,

10.8%,

10/28/24

....

6,552

6,415

1656192.PS.FTS.B,

10.97%,

10/28/24

...

3,629

3,559

1649488.PS.FTS.B,

11.7%,

10/28/24

....

8,038

7,876

1646303.PS.FTS.B,

11.89%,

10/28/24

....

10,969

10,750

1656015.PS.FTS.B,

12.3%,

10/28/24

....

7,325

7,181

1649524.PS.FTS.B,

14.39%,

10/28/24

...

1,477

1,446

1649797.PS.FTS.B,

17.05%,

10/28/24

...

10,077

9,886

1649812.PS.FTS.B,

24.09%,

10/28/24

...

1,533

1,537

1656462.PS.FTS.B,

27.62%,

10/28/24

...

11,641

11,705

1647104.PS.FTS.B,

10.8%,

10/29/24

....

3,638

3,563

1647374.PS.FTS.B,

13.13%,

10/29/24

...

5,145

5,033

1650016.PS.FTS.B,

13.5%,

10/29/24

....

14,721

14,405

1650442.PS.FTS.B,

16.57%,

10/29/24

...

11,269

11,008

1656681.PS.FTS.B,

17%,

10/29/24

......

1,531

1,504

1650046.PS.FTS.B,

19.41%,

10/29/24

...

17,207

17,065

1657236.PS.FTS.B,

22.6%,

10/29/24

....

347

141

1657803.PS.FTS.B,

13.13%,

11/01/24

....

7,713

7,364

1648730.PS.FTS.B,

17%,

11/02/24

......

8,950

8,579

1651990.PS.FTS.B,

18.41%,

11/02/24

....

18,765

17,905

1651379.PS.FTS.B,

10.8%,

11/05/24

....

11,643

11,217

1654657.PS.FTS.B,

12.3%,

11/05/24

....

18,304

17,633

1661403.PS.FTS.B,

14.11%,

11/05/24

....

18,437

17,761

1651385.PS.FTS.B,

14.6%,

11/05/24

....

3,446

–

1635077.PS.FTS.B,

20.57%,

11/05/24

....

11,523

11,072

1651904.PS.FTS.B,

13.81%,

11/08/24

....

7,366

7,101

1658215.PS.FTS.B,

16%,

11/08/24

......

6,400

6,128

1653476.PS.FTS.B,

10.8%,

11/09/24

....

2,183

2,105

1665852.PS.FTS.B,

11.79%,

11/09/24

....

8,768

8,455

1652624.PS.FTS.B,

12.3%,

11/09/24

....

2,929

2,824

1653332.PS.FTS.B,

12.79%,

11/09/24

....

14,672

14,130

1652882.PS.FTS.B,

13.4%,

11/09/24

....

4,412

4,255

1652855.PS.FTS.B,

13.41%,

11/09/24

....

7,425

7,106

1659070.PS.FTS.B,

13.7%,

11/09/24

....

7,363

7,051

1659052.PS.FTS.B,

15.29%,

11/09/24

....

2,964

2,838

1653434.PS.FTS.B,

15.4%,

11/09/24

....

1,885

1,809

1659220.PS.FTS.B,

16.6%,

11/09/24

....

7,465

7,164

1652864.PS.FTS.B,

17%,

11/09/24

......

18,646

17,941

1659274.PS.FTS.B,

19.5%,

11/09/24

....

10,542

10,141

1665651.PS.FTS.B,

19.6%,

11/09/24

....

11,299

10,869

1652858.PS.FTS.B,

20.24%,

11/09/24

....

2,265

2,179

1654004.PS.FTS.B,

15.29%,

11/10/24

....

3,705

3,549

1654961.PS.FTS.B,

11.88%,

11/12/24

....

10,964

10,581

1657065.PS.FTS.B,

15.29%,

11/12/24

....

8,200

1,127

1654955.PS.FTS.B,

15.5%,

11/12/24

....

7,302

7,001

1660819.PS.FTS.B,

17%,

11/12/24

......

2,238

2,156

1661158.PS.FTS.B,

17%,

11/12/24

......

1,492

1,438

1652873.PS.FTS.B,

19.6%,

11/14/24

....

7,898

4,652

1662559.PS.FTS.B,

13.1%,

11/15/24

....

7,345

7,050

1486265.PS.FTS.B,

19.99%,

11/16/24

....

7,942

7,785

1658144.PS.FTS.B,

14.49%,

11/17/24

....

22,051

21,553

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

93

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1672080.PS.FTS.B,

18.41%,

11/19/24

....

$

8,055

$

6,646

1611393.PS.FTS.B,

17%,

11/20/24

......

4,946

632

1665015.PS.FTS.B,

12.15%,

11/22/24

....

19,109

15,734

1503354.PS.FTS.B,

20.74%,

11/24/24

....

3,661

3,090

1680283.PS.FTS.B,

11.07%,

12/16/24

....

3,395

3,281

1674119.PS.FTS.B,

11.6%,

12/16/24

.....

7,559

7,306

1674128.PS.FTS.B,

12.3%,

12/16/24

....

1,930

1,866

1687134.PS.FTS.B,

12.6%,

12/16/24

....

5,311

5,096

1686729.PS.FTS.B,

13.36%,

12/16/24

...

11,413

11,030

1687119.PS.FTS.B,

13.5%,

12/16/24

....

11,418

10,956

1680238.PS.FTS.B,

13.81%,

12/16/24

...

19,052

18,413

1673705.PS.FTS.B,

16%,

12/16/24

......

7,681

7,369

1686747.PS.FTS.B,

16.5%,

12/16/24

....

4,365

4,235

1686726.PS.FTS.B,

18.41%,

12/16/24

...

19,365

18,578

1674134.PS.FTS.B,

19.5%,

12/16/24

....

1,555

1,498

1680268.PS.FTS.B,

19.6%,

12/16/24

....

8,018

6,700

1680277.PS.FTS.B,

19.6%,

12/16/24

....

7,778

7,494

1680457.PS.FTS.B,

13.1%,

12/17/24

....

11,921

9,829

1674263.PS.FTS.B,

18.9%,

12/17/24

....

991

958

1675928.PS.FTS.B,

10.97%,

12/21/24

...

7,825

7,580

1689480.PS.FTS.B,

13.7%,

12/21/24

....

5,333

5,127

1689501.PS.FTS.B,

15.9%,

12/21/24

....

7,678

7,381

1676387.PS.FTS.B,

16.2%,

12/21/24

....

7,686

7,428

1676435.PS.FTS.B,

16.93%,

12/21/24

...

9,633

9,260

1674137.PS.FTS.B,

18.2%,

12/21/24

....

1,554

1,494

1689111.PS.FTS.B,

23.4%,

12/21/24

.....

5,514

5,356

1677272.PS.FTS.B,

11.6%,

12/22/24

....

9,449

9,146

1676915.PS.FTS.B,

12.3%,

12/22/24

....

7,579

7,336

1689882.PS.FTS.B,

15.29%,

12/22/24

...

4,214

4,053

1683052.PS.FTS.B,

16.2%,

12/22/24

....

1,537

1,486

1683121.PS.FTS.B,

16.8%,

12/22/24

....

19,257

18,519

1689870.PS.FTS.B,

18.09%,

12/22/24

...

4,641

4,486

1690275.PS.FTS.B,

21.5%,

12/22/24

....

7,045

6,810

1683241.PS.FTS.B,

22.6%,

12/22/24

....

3,142

3,055

1678466.PS.FTS.B,

11.4%,

12/24/24

....

6,060

5,874

1685272.PS.FTS.B,

16.7%,

12/28/24

....

17,892

17,344

1681405.PS.FTS.B,

16.9%,

12/28/24

....

12,115

11,656

1692336.PS.FTS.B,

21.8%,

12/28/24

....

7,668

7,581

1686151.PS.FTS.B,

14.6%,

12/29/24

....

1,578

1,543

1679818.PS.FTS.B,

17.8%,

12/30/24

....

12,872

12,584

1693752.PS.FTS.B,

23.9%,

12/30/24

....

4,061

4,050

1686607.PS.FTS.B,

26.09%,

12/30/24

...

2,452

2,487

1694922.PS.FTS.B,

24.11%,

1/03/25

....

2,436

2,331

1695360.PS.FTS.B,

13.3%,

1/04/25

.....

3,928

3,787

1683092.PS.FTS.B,

24.4%,

1/04/25

.....

4,063

3,891

1695489.PS.FTS.B,

25.4%,

1/04/25

.....

7,833

7,481

1684433.PS.FTS.B,

24.4%,

1/06/25

.....

3,964

3,799

1697064.PS.FTS.B,

24.4%,

1/06/25

.....

1,598

1,532

1684775.PS.FTS.B,

24.11%,

1/07/25

....

5,684

5,454

1680806.PS.FTS.B,

24.4%,

1/08/25

.....

2,897

2,813

1687799.PS.FTS.B,

13.41%,

1/12/25

....

12,339

11,946

1694614.PS.FTS.B,

11.4%,

1/13/25

.....

3,123

3,018

1688987.PS.FTS.B,

12%,

1/13/25

.......

7,040

6,803

1694584.PS.FTS.B,

12.2%,

1/13/25

.....

15,655

15,128

1701780.PS.FTS.B,

12.3%,

1/13/25

.....

11,745

11,350

1688570.PS.FTS.B,

13.87%,

1/13/25

....

4,722

4,525

1701390.PS.FTS.B,

14.89%,

1/13/25

....

6,530

3,642

1701399.PS.FTS.B,

16%,

1/13/25

.......

5,547

5,314

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1688558.PS.FTS.B,

16.43%,

1/13/25

....

$

2,380

$

2,281

1701372.PS.FTS.B,

16.5%,

1/13/25

.....

4,449

203

1701342.PS.FTS.B,

17.7%,

1/13/25

.....

19,915

19,129

1694587.PS.FTS.B,

19.6%,

1/13/25

.....

8,013

7,695

1701789.PS.FTS.B,

22.5%,

1/13/25

.....

2,164

544

1694602.PS.FTS.B,

23.3%,

1/13/25

.....

8,101

7,805

1701807.PS.FTS.B,

24.09%,

1/13/25

....

1,624

1,565

1688981.PS.FTS.B,

24.5%,

1/13/25

.....

10,568

10,181

1689359.PS.FTS.B,

12.3%,

1/14/25

.....

3,931

3,805

1689344.PS.FTS.B,

13.9%,

1/14/25

.....

7,871

7,545

1695688.PS.FTS.B,

13.96%,

1/14/25

....

5,117

4,946

1702149.PS.FTS.B,

15%,

1/14/25

.......

7,899

7,571

1695340.PS.FTS.B,

15.7%,

1/14/25

.....

7,916

7,588

1689338.PS.FTS.B,

16.02%,

1/14/25

....

13,471

12,948

1689368.PS.FTS.B,

16.2%,

1/14/25

.....

3,964

3,810

1695364.PS.FTS.B,

16.8%,

1/14/25

.....

3,972

3,807

1695355.PS.FTS.B,

18.4%,

1/14/25

.....

3,992

3,836

1695982.PS.FTS.B,

25.4%,

1/14/25

.....

6,113

5,892

1684772.PS.FTS.B,

24.4%,

1/15/25

.....

4,103

3,926

1702809.PS.FTS.B,

14.89%,

1/18/25

....

19,740

18,951

1690361.PS.FTS.B,

18.5%,

1/18/25

.....

3,194

3,076

1696480.PS.FTS.B,

18.8%,

1/18/25

.....

3,997

3,849

1697491.PS.FTS.B,

16.7%,

1/19/25

.....

3,971

3,827

1692497.PS.FTS.B,

17.2%,

1/19/25

.....

5,164

4,977

1704390.PS.FTS.B,

17.8%,

1/19/25

.....

1,594

1,536

1692221.PS.FTS.B,

23%,

1/19/25

.......

5,641

5,455

1691657.PS.FTS.B,

25.11%,

1/19/25

....

4,602

–

1699183.PS.FTS.B,

13.05%,

1/20/25

....

27,472

26,397

1706151.PS.FTS.B,

23.13%,

1/20/25

....

2,511

–

1694027.PS.FTS.B,

13.42%,

1/24/25

....

15,717

15,232

1700809.PS.FTS.B,

22.6%,

1/24/25

.....

4,042

3,923

1696034.PS.FTS.B,

13.5%,

1/25/25

.....

1,586

1,527

1709424.PS.FTS.B,

23.4%,

1/26/25

.....

1,633

1,583

1705071.PS.FTS.B,

18.7%,

2/01/25

.....

4,143

3,984

1706926.PS.FTS.B,

19.8%,

2/01/25

.....

4,949

4,717

1706807.PS.FTS.B,

17.8%,

2/11/25

.....

3,282

3,146

1714708.PS.FTS.B,

10.67%,

2/15/25

....

11,256

10,896

1715170.PS.FTS.B,

10.8%,

2/15/25

.....

2,413

2,336

1708031.PS.FTS.B,

12.9%,

2/15/25

.....

6,231

6,031

1708067.PS.FTS.B,

13%,

2/15/25

.......

8,095

7,835

1708037.PS.FTS.B,

13.36%,

2/15/25

....

3,241

3,137

1715161.PS.FTS.B,

14.11%,

2/15/25

....

2,463

2,389

1708070.PS.FTS.B,

14.2%,

2/15/25

.....

8,115

7,785

1708871.PS.FTS.B,

14.49%,

2/15/25

....

8,129

7,798

1715155.PS.FTS.B,

14.63%,

2/15/25

....

7,102

339

1708448.PS.FTS.B,

15.86%,

2/15/25

....

12,240

11,742

1721421.PS.FTS.B,

16.3%,

2/15/25

.....

15,186

14,577

1715173.PS.FTS.B,

16.6%,

2/15/25

.....

3,324

3,190

1721052.PS.FTS.B,

16.8%,

2/15/25

.....

2,863

2,747

1715167.PS.FTS.B,

18.6%,

2/15/25

.....

2,756

106

1708055.PS.FTS.B,

20.25%,

2/15/25

....

19,736

18,928

1708457.PS.FTS.B,

22.6%,

2/15/25

.....

5,401

5,198

1708904.PS.FTS.B,

23.4%,

2/15/25

.....

4,163

4,007

1708478.PS.FTS.B,

24.34%,

2/15/25

....

3,980

3,828

1708040.PS.FTS.B,

26.46%,

2/15/25

....

3,356

3,229

1716160.PS.FTS.B,

11.55%,

2/16/25

....

8,061

7,805

1715854.PS.FTS.B,

13.2%,

2/16/25

.....

5,589

5,364

1716226.PS.FTS.B,

13.9%,

2/16/25

.....

6,844

6,569

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1722384.PS.FTS.B,

15.1%,

2/16/25

.....

$

6,199

$

821

1716088.PS.FTS.B,

17.8%,

2/16/25

.....

4,102

3,943

1709597.PS.FTS.B,

18.5%,

2/16/25

.....

4,932

4,740

1715845.PS.FTS.B,

19.83%,

2/16/25

....

8,137

7,809

1722438.PS.FTS.B,

21.5%,

2/16/25

.....

2,373

2,280

1709591.PS.FTS.B,

22.6%,

2/16/25

.....

12,463

12,004

1723593.PS.FTS.B,

22.6%,

2/18/25

.....

12,463

12,020

1723899.PS.FTS.B,

22.6%,

2/18/25

.....

5,945

5,723

1717273.PS.FTS.B,

10.8%,

2/20/25

.....

9,546

7,869

1722492.PS.FTS.B,

16.64%,

2/20/25

....

8,196

7,875

1724859.PS.FTS.B,

11.4%,

2/22/25

.....

7,443

7,221

1724148.PS.FTS.B,

12.3%,

2/22/25

.....

7,271

7,050

1718062.PS.FTS.B,

20.4%,

2/22/25

.....

1,652

1,593

1713806.PS.FTS.B,

10.07%,

2/23/25

....

32,104

31,456

1712954.PS.FTS.B,

12.4%,

2/23/25

.....

3,232

3,135

1713725.PS.FTS.B,

13.9%,

2/23/25

.....

7,281

7,007

1721427.PS.FTS.B,

17.96%,

2/24/25

....

14,431

13,861

1715152.PS.FTS.B,

21%,

2/28/25

.......

8,581

8,401

1708484.PS.FTS.B,

22.6%,

2/28/25

.....

3,451

3,383

1710380.PS.FTS.B,

23.59%,

2/28/25

....

2,766

2,720

1730775.PS.FTS.B,

16.3%,

3/03/25

.....

1,696

1,618

1740433.PS.FTS.B,

8.6%,

3/23/25

......

1,749

1,739

1748893.PS.FTS.B,

21.5%,

4/05/25

.....

2,674

2,557

1683602.PS.FTS.B,

23.4%,

7/05/25

.....

2,000

1,905

1638183.PS.FTS.B,

17.71%,

8/28/25

....

10,588

10,406

1632058.PS.FTS.B,

12.9%,

8/29/25

.....

4,452

2,496

1651787.PS.FTS.B,

14.89%,

10/08/25

...

9,105

4,766

1696479.PS.FTS.B,

25.4%,

11/16/25

....

6,960

4,057

1681039.PS.FTS.B,

14.49%,

11/20/25

....

6,507

3,627

1489833.PS.FTS.B,

16.99%,

11/30/25

....

7,261

7,087

1689362.PS.FTS.B,

13.77%,

12/14/25

...

30,098

16,163

1485878.PS.FTS.B,

11.99%,

12/17/25

....

11,204

11,062

1706328.PS.FTS.B,

24.4%,

12/21/25

....

5,196

3,270

1592846.PS.FTS.B,

15.9%,

7/23/26

.....

6,551

6,272

1599437.PS.FTS.B,

16.5%,

8/05/26

.....

29,193

27,740

1599440.PS.FTS.B,

26.4%,

8/05/26

.....

1,735

1,675

1599782.PS.FTS.B,

29.08%,

8/05/26

....

3,504

3,381

1603753.PS.FTS.B,

13.4%,

8/06/26

.....

1,879

1,854

1600460.PS.FTS.B,

15.2%,

8/06/26

.....

12,439

11,825

1603750.PS.FTS.B,

15.9%,

8/06/26

.....

6,655

6,326

1600466.PS.FTS.B,

18.73%,

8/06/26

....

12,632

12,006

1603759.PS.FTS.B,

20.59%,

8/06/26

....

8,486

8,083

1604551.PS.FTS.B,

13.74%,

8/09/26

....

19,565

18,840

1611384.PS.FTS.B,

13.88%,

8/09/26

....

8,243

7,929

1611387.PS.FTS.B,

19.33%,

8/09/26

....

7,598

7,250

1611390.PS.FTS.B,

22.8%,

8/09/26

.....

1,712

1,658

1611810.PS.FTS.B,

13%,

8/10/26

.......

2,052

1,975

1606042.PS.FTS.B,

14.74%,

8/10/26

....

13,253

12,751

1611513.PS.FTS.B,

15.68%,

8/10/26

....

16,621

15,991

1611807.PS.FTS.B,

19.33%,

8/10/26

....

12,664

12,090

1612131.PS.FTS.B,

19.48%,

8/10/26

....

6,336

6,049

1602347.PS.FTS.B,

20.3%,

8/10/26

.....

1,695

1,618

1612149.PS.FTS.B,

20.7%,

8/10/26

.....

5,094

4,862

1612140.PS.FTS.B,

23.74%,

8/10/26

....

5,585

5,328

1605592.PS.FTS.B,

24%,

8/10/26

.......

1,802

479

1606183.PS.FTS.B,

12.6%,

8/11/26

.....

12,291

11,828

1606453.PS.FTS.B,

14.89%,

8/11/26

....

7,039

6,704

1606945.PS.FTS.B,

12.5%,

8/12/26

.....

6,637

817

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1607296.PS.FTS.B,

13.3%,

8/12/26

.....

$

4,932

$

4,748

1606891.PS.FTS.B,

16.3%,

8/12/26

.....

6,665

6,356

1603532.PS.FTS.B,

20.5%,

8/12/26

.....

8,942

8,545

1601273.PS.FTS.B,

12.6%,

8/14/26

.....

12,312

11,843

1602449.PS.FTS.B,

25%,

8/15/26

.......

1,729

1,675

1611798.PS.FTS.B,

25.74%,

8/15/26

....

8,698

8,429

1609519.PS.FTS.B,

15%,

8/17/26

.......

6,628

6,326

1611322.PS.FTS.B,

12.5%,

8/19/26

.....

28,664

27,630

1618149.PS.FTS.B,

13.7%,

8/19/26

.....

9,060

8,735

1604576.PS.FTS.B,

18.3%,

8/19/26

.....

8,433

8,066

1611805.PS.FTS.B,

16.18%,

8/20/26

....

24,570

23,475

1611804.PS.FTS.B,

18%,

8/22/26

.......

21,137

20,190

1619901.PS.FTS.B,

13.5%,

8/24/26

.....

9,874

9,529

1620930.PS.FTS.B,

15.8%,

8/25/26

.....

8,315

7,959

1615105.PS.FTS.B,

12.7%,

8/26/26

.....

15,575

15,038

1621938.PS.FTS.B,

14.39%,

8/26/26

....

6,610

6,381

1615738.PS.FTS.B,

13.3%,

8/27/26

.....

3,343

3,229

1612100.PS.FTS.B,

16.3%,

8/27/26

.....

8,465

8,108

1615246.PS.FTS.B,

16.64%,

8/27/26

....

10,172

9,743

1615636.PS.FTS.B,

12.5%,

8/30/26

.....

12,510

12,219

1612853.PS.FTS.B,

13%,

8/30/26

.......

33,389

32,642

1617610.PS.FTS.B,

15.29%,

9/11/26

....

11,458

10,979

1622321.PS.FTS.B,

19.23%,

9/17/26

....

2,568

2,462

1634619.PS.FTS.B,

19%,

9/21/26

.......

8,551

8,216

1624628.PS.FTS.B,

12.9%,

9/22/26

.....

20,851

20,114

1625300.PS.FTS.B,

11.79%,

9/23/26

....

5,810

5,606

1625246.PS.FTS.B,

12.5%,

9/23/26

.....

7,909

7,632

1626002.PS.FTS.B,

11.7%,

9/24/26

.....

20,741

20,018

1630114.PS.FTS.B,

11.7%,

9/24/26

......

7,467

7,207

1630111.PS.FTS.B,

13.03%,

9/24/26

.....

13,769

13,289

1629628.PS.FTS.B,

14.31%,

9/24/26

....

10,069

9,636

1637205.PS.FTS.B,

11.7%,

9/27/26

.....

8,858

8,555

1630660.PS.FTS.B,

11.79%,

9/27/26

....

5,913

5,774

1637199.PS.FTS.B,

12.4%,

9/27/26

.....

13,537

13,074

1637250.PS.FTS.B,

13.4%,

9/27/26

.....

5,962

5,761

1626827.PS.FTS.B,

14.2%,

9/27/26

.....

23,007

22,041

1626860.PS.FTS.B,

15%,

9/27/26

.......

5,556

5,322

1631629.PS.FTS.B,

11.7%,

9/28/26

.....

3,903

3,774

1631647.PS.FTS.B,

12.7%,

9/28/26

.....

12,594

12,306

1638105.PS.FTS.B,

13.4%,

9/28/26

.....

5,521

5,398

1628072.PS.FTS.B,

14.53%,

9/28/26

....

17,149

16,781

1627559.PS.FTS.B,

14.89%,

9/28/26

....

14,525

14,106

1627979.PS.FTS.B,

15.29%,

9/28/26

....

29,950

29,096

1638453.PS.FTS.B,

16.1%,

9/28/26

.....

12,875

12,516

1631731.PS.FTS.B,

16.8%,

9/28/26

.....

13,125

12,443

1631380.PS.FTS.B,

18.13%,

9/28/26

....

30,268

29,470

1639041.PS.FTS.B,

11.7%,

9/29/26

.....

12,654

12,356

1627703.PS.FTS.B,

13.41%,

9/30/26

....

5,101

4,945

1626833.PS.FTS.B,

14.7%,

10/01/26

....

12,834

12,281

1469063.PS.FTS.B,

19.24%,

10/12/26

...

9,887

9,534

1646769.PS.FTS.B,

11.79%,

10/13/26

....

10,972

10,567

1648282.PS.FTS.B,

14%,

10/26/26

......

12,772

12,225

1648288.PS.FTS.B,

14.96%,

10/26/26

...

10,683

10,225

1654998.PS.FTS.B,

18.33%,

10/26/26

...

2,293

2,249

1645235.PS.FTS.B,

9.81%,

10/27/26

....

5,342

333

1645223.PS.FTS.B,

10.5%,

10/27/26

....

7,683

7,423

1645646.PS.FTS.B,

10.8%,

10/27/26

....

12,819

12,386

1648582.PS.FTS.B,

10.9%,

10/27/26

....

8,557

8,345

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

95

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1645232.PS.FTS.B,

11.2%,

10/27/26

....

$

10,008

$

9,673

1645661.PS.FTS.B,

11.7%,

10/27/26

....

302

301

1645649.PS.FTS.B,

12.7%,

10/27/26

....

6,025

5,822

1645652.PS.FTS.B,

12.7%,

10/27/26

....

5,595

5,406

1655325.PS.FTS.B,

13.08%,

10/27/26

...

17,497

16,907

1645655.PS.FTS.B,

13.95%,

10/27/26

...

5,188

4,967

1648945.PS.FTS.B,

14.29%,

10/27/26

...

30,300

29,011

1648588.PS.FTS.B,

14.39%,

10/27/26

...

12,990

12,438

1648621.PS.FTS.B,

15.29%,

10/27/26

...

30,407

29,113

1655580.PS.FTS.B,

21%,

10/27/26

......

12,396

12,107

1655331.PS.FTS.B,

28%,

10/27/26

......

13,555

13,222

1646309.PS.FTS.B,

9.62%,

10/28/26

....

13,208

12,877

1649515.PS.FTS.B,

10.5%,

10/28/26

....

17,072

16,657

1649809.PS.FTS.B,

11.1%,

10/28/26

....

5,168

5,030

1649791.PS.FTS.B,

15.1%,

10/28/26

....

21,705

21,072

1646312.PS.FTS.B,

15.29%,

10/28/26

...

7,819

7,592

1646066.PS.FTS.B,

16.18%,

10/28/26

...

13,072

12,702

1645916.PS.FTS.B,

16.3%,

10/28/26

....

5,594

5,367

1646072.PS.FTS.B,

28.23%,

10/28/26

...

10,800

10,843

1650307.PS.FTS.B,

10.08%,

10/29/26

...

11,079

10,808

1646960.PS.FTS.B,

10.5%,

10/29/26

....

17,499

17,077

1647161.PS.FTS.B,

10.5%,

10/29/26

....

5,975

5,831

1657278.PS.FTS.B,

10.5%,

10/29/26

....

6,739

6,577

1650655.PS.FTS.B,

10.71%,

10/29/26

...

7,204

7,052

1646819.PS.FTS.B,

11.2%,

10/29/26

....

3,424

3,343

1650901.PS.FTS.B,

11.2%,

10/29/26

....

13,265

12,953

1650547.PS.FTS.B,

13.7%,

10/29/26

....

10,207

9,902

1650847.PS.FTS.B,

13.93%,

10/29/26

...

6,917

6,769

1647071.PS.FTS.B,

14.38%,

10/29/26

...

17,320

16,957

1650865.PS.FTS.B,

15.18%,

10/29/26

...

8,684

8,508

1646828.PS.FTS.B,

15.29%,

10/29/26

...

18,244

17,721

1647101.PS.FTS.B,

18.48%,

10/29/26

...

24,751

–

1656183.PS.FTS.B,

14.38%,

10/31/26

...

6,502

6,294

1655343.PS.FTS.B,

16.65%,

10/31/26

...

11,690

11,203

1648990.PS.FTS.B,

18.33%,

10/31/26

...

14,923

14,268

1647098.PS.FTS.B,

11.55%,

11/01/26

....

25,680

24,837

1649806.PS.FTS.B,

12.33%,

11/01/26

....

12,909

12,362

1651774.PS.FTS.B,

11.89%,

11/02/26

....

7,291

7,009

1648793.PS.FTS.B,

26.43%,

11/02/26

....

8,990

8,597

1646054.PS.FTS.B,

15.1%,

11/03/26

....

2,902

2,779

1650023.PS.FTS.B,

14.79%,

11/04/26

....

9,535

9,275

1661388.PS.FTS.B,

11.55%,

11/05/26

....

3,427

3,297

1650968.PS.FTS.B,

16.33%,

11/05/26

....

15,686

14,895

1654723.PS.FTS.B,

18.6%,

11/05/26

....

7,464

7,072

1648496.PS.FTS.B,

19%,

11/07/26

......

4,408

4,160

1651754.PS.FTS.B,

10.5%,

11/08/26

....

17,067

16,430

1658080.PS.FTS.B,

14.63%,

11/08/26

....

12,995

12,355

1651784.PS.FTS.B,

16.18%,

11/08/26

....

21,775

20,700

1664766.PS.FTS.B,

18.33%,

11/08/26

....

21,933

20,816

1652300.PS.FTS.B,

21.18%,

11/08/26

....

12,719

12,063

1666515.PS.FTS.B,

11.2%,

11/09/26

.....

20,534

19,773

1665864.PS.FTS.B,

11.97%,

11/09/26

....

7,293

7,023

1666449.PS.FTS.B,

14.6%,

11/09/26

....

9,962

9,474

1658839.PS.FTS.B,

14.68%,

11/09/26

....

12,997

12,515

1658842.PS.FTS.B,

17%,

11/09/26

......

10,918

10,370

1653086.PS.FTS.B,

18.2%,

11/09/26

....

11,031

10,453

1659079.PS.FTS.B,

19%,

11/09/26

......

5,275

5,009

1658812.PS.FTS.B,

21.9%,

11/09/26

....

2,524

2,420

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1665660.PS.FTS.B,

27.4%,

11/09/26

....

$

6,310

$

6,060

1654196.PS.FTS.B,

11.6%,

11/10/26

.....

17,137

16,506

1667148.PS.FTS.B,

11.6%,

11/10/26

.....

7,712

7,427

1654037.PS.FTS.B,

12.32%,

11/10/26

....

31,922

1,588

1660714.PS.FTS.B,

13.6%,

11/10/26

....

8,632

8,213

1651394.PS.FTS.B,

15.29%,

11/10/26

....

17,411

16,539

1654735.PS.FTS.B,

18.25%,

11/10/26

....

21,989

20,790

1660333.PS.FTS.B,

21.18%,

11/10/26

....

3,541

3,363

1654187.PS.FTS.B,

22.5%,

11/10/26

....

13,352

12,791

1655069.PS.FTS.B,

11.6%,

11/12/26

.....

683

679

1667997.PS.FTS.B,

11.79%,

11/12/26

....

7,717

7,436

1655114.PS.FTS.B,

12.32%,

11/12/26

....

10,310

9,934

1660804.PS.FTS.B,

14.68%,

11/12/26

....

29,018

27,992

1667757.PS.FTS.B,

18.25%,

11/12/26

....

11,402

10,845

1667178.PS.FTS.B,

13.3%,

11/15/26

....

8,642

8,225

1661914.PS.FTS.B,

13.5%,

11/15/26

....

21,572

20,562

1661875.PS.FTS.B,

18.33%,

11/15/26

....

13,160

12,536

1661797.PS.FTS.B,

21%,

11/15/26

......

1,770

1,709

1669413.PS.FTS.B,

24.09%,

11/15/26

....

8,092

7,779

1657538.PS.FTS.B,

21.3%,

11/16/26

....

1,792

1,725

1658339.PS.FTS.B,

16%,

11/17/26

......

6,529

6,228

1656447.PS.FTS.B,

14.38%,

11/27/26

....

19,339

18,720

1664327.PS.FTS.B,

13.5%,

11/30/26

....

3,505

3,400

1687146.PS.FTS.B,

11.43%,

12/16/26

....

10,442

10,081

1687128.PS.FTS.B,

12.3%,

12/16/26

....

8,727

8,426

1674095.PS.FTS.B,

12.5%,

12/16/26

....

19,872

19,189

1680286.PS.FTS.B,

12.5%,

12/16/26

....

8,733

8,431

1687125.PS.FTS.B,

13.4%,

12/16/26

....

8,759

8,457

1674104.PS.FTS.B,

13.77%,

12/16/26

...

14,847

14,161

1680241.PS.FTS.B,

14.38%,

12/16/26

...

21,949

21,192

1680235.PS.FTS.B,

14.41%,

12/16/26

...

30,757

29,696

1674101.PS.FTS.B,

14.53%,

12/16/26

...

15,716

15,174

1673708.PS.FTS.B,

14.7%,

12/16/26

....

7,916

7,551

1687113.PS.FTS.B,

15.18%,

12/16/26

....

14,536

13,864

1680250.PS.FTS.B,

15.84%,

12/16/26

...

902

878

1673690.PS.FTS.B,

16.1%,

12/16/26

....

30,923

29,492

1687140.PS.FTS.B,

16.7%,

12/16/26

....

13,992

–

1679824.PS.FTS.B,

18.2%,

12/16/26

....

8,778

8,348

1680301.PS.FTS.B,

18.5%,

12/16/26

....

4,450

4,233

1674113.PS.FTS.B,

24%,

12/16/26

......

9,038

8,697

1673699.PS.FTS.B,

26.43%,

12/16/26

...

13,643

13,122

1680406.PS.FTS.B,

18.33%,

12/17/26

...

22,238

21,168

1675265.PS.FTS.B,

10.5%,

12/20/26

....

19,948

19,277

1681297.PS.FTS.B,

13.3%,

12/20/26

....

25,174

24,329

1681006.PS.FTS.B,

15.29%,

12/20/26

...

20,269

19,360

1675340.PS.FTS.B,

16%,

12/20/26

......

11,924

11,371

1688076.PS.FTS.B,

16.4%,

12/20/26

....

13,265

12,670

1682455.PS.FTS.B,

11.43%,

12/21/26

....

26,104

25,232

1673711.PS.FTS.B,

12.6%,

12/21/26

....

3,938

3,808

1688964.PS.FTS.B,

13.93%,

12/21/26

...

13,161

12,722

1689036.PS.FTS.B,

14.6%,

12/21/26

....

17,586

16,804

1689054.PS.FTS.B,

14.89%,

12/21/26

...

13,202

12,615

1676534.PS.FTS.B,

15.29%,

12/21/26

...

13,219

12,631

1676819.PS.FTS.B,

14.68%,

12/22/26

...

28,145

27,212

1674110.PS.FTS.B,

14.7%,

12/22/26

....

30,870

29,468

1690116.PS.FTS.B,

23.11%,

12/22/26

....

13,525

13,067

1677269.PS.FTS.B,

25.9%,

12/22/26

....

5,450

5,263

1683589.PS.FTS.B,

10.5%,

12/23/26

....

10,408

10,065

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1690638.PS.FTS.B,

11.1%,

12/23/26

....

$

8,257

$

7,985

1687137.PS.FTS.B,

28.08%,

12/23/26

...

13,887

13,705

1680116.PS.FTS.B,

14%,

12/29/26

......

24,047

23,336

1674146.PS.FTS.B,

18.78%,

12/31/26

...

9,098

8,639

1674290.PS.FTS.B,

21.09%,

12/31/26

...

7,689

7,382

1686735.PS.FTS.B,

25.27%,

12/31/26

...

13,927

13,309

1675466.PS.FTS.B,

19%,

1/01/27

.......

7,411

4,342

1694608.PS.FTS.B,

10.62%,

1/13/27

....

8,627

8,337

1701387.PS.FTS.B,

11.1%,

1/13/27

.....

7,061

6,821

1688549.PS.FTS.B,

11.55%,

1/13/27

....

13,257

12,807

1694572.PS.FTS.B,

11.6%,

1/13/27

.....

19,270

18,616

1695022.PS.FTS.B,

11.7%,

1/13/27

.....

13,155

12,710

1688996.PS.FTS.B,

11.79%,

1/13/27

....

21,669

20,934

1688534.PS.FTS.B,

12.9%,

1/13/27

.....

22,185

21,432

1694605.PS.FTS.B,

15.2%,

1/13/27

.....

1,876

1,789

1695031.PS.FTS.B,

15.5%,

1/13/27

.....

8,941

8,525

1701783.PS.FTS.B,

15.5%,

1/13/27

.....

13,411

12,788

1688990.PS.FTS.B,

17.82%,

1/13/27

....

26,993

25,736

1694623.PS.FTS.B,

18.5%,

1/13/27

.....

6,310

5,986

1701375.PS.FTS.B,

21.69%,

1/13/27

....

9,101

8,696

1694593.PS.FTS.B,

23.4%,

1/13/27

.....

9,126

8,741

1701396.PS.FTS.B,

27.4%,

1/13/27

.....

4,640

4,432

1702062.PS.FTS.B,

11.79%,

1/14/27

....

7,976

7,721

1702152.PS.FTS.B,

12.87%,

1/14/27

....

5,324

5,144

1695343.PS.FTS.B,

12.9%,

1/14/27

.....

4,792

4,630

1702167.PS.FTS.B,

13.1%,

1/14/27

.....

6,437

6,222

1702287.PS.FTS.B,

15.29%,

1/14/27

....

8,935

8,523

1689365.PS.FTS.B,

15.8%,

1/14/27

.....

17,896

17,071

1702137.PS.FTS.B,

16.2%,

1/14/27

.....

5,823

5,554

1702161.PS.FTS.B,

18.13%,

1/14/27

....

3,602

3,435

1689329.PS.FTS.B,

18.4%,

1/14/27

.....

8,831

8,383

1689347.PS.FTS.B,

19%,

1/14/27

.......

7,221

6,854

1695361.PS.FTS.B,

26.13%,

1/14/27

....

13,775

13,196

1690325.PS.FTS.B,

16.28%,

1/18/27

....

5,376

5,135

1690286.PS.FTS.B,

18.4%,

1/18/27

.....

21,177

20,146

1703139.PS.FTS.B,

25.9%,

1/18/27

.....

1,836

1,763

1704984.PS.FTS.B,

10.29%,

1/19/27

....

11,445

11,072

1704465.PS.FTS.B,

10.5%,

1/19/27

.....

15,857

15,341

1692188.PS.FTS.B,

11.2%,

1/19/27

.....

22,009

21,294

1691687.PS.FTS.B,

12.7%,

1/19/27

.....

26,606

25,739

1692281.PS.FTS.B,

16.5%,

1/19/27

.....

31,379

29,985

1704129.PS.FTS.B,

21.18%,

1/19/27

....

9,233

7,638

1692593.PS.FTS.B,

10.5%,

1/20/27

.....

17,619

17,049

1698709.PS.FTS.B,

15.2%,

1/20/27

.....

13,400

12,810

1686133.PS.FTS.B,

10.44%,

1/22/27

....

10,643

10,336

1700548.PS.FTS.B,

25.9%,

1/24/27

.....

5,045

4,864

1695725.PS.FTS.B,

16.1%,

1/25/27

.....

20,329

19,417

1708451.PS.FTS.B,

10.26%,

2/15/27

....

9,032

8,792

1715146.PS.FTS.B,

10.5%,

2/15/27

.....

22,361

21,649

1715164.PS.FTS.B,

11.1%,

2/15/27

.....

4,927

4,770

1721439.PS.FTS.B,

12%,

2/15/27

.......

2,694

2,608

1721037.PS.FTS.B,

12.24%,

2/15/27

....

9,436

9,018

1715149.PS.FTS.B,

12.62%,

2/15/27

....

22,488

21,771

1708763.PS.FTS.B,

15.62%,

2/15/27

....

20,847

19,921

1715143.PS.FTS.B,

16.33%,

2/15/27

....

18,159

17,352

1708907.PS.FTS.B,

18.13%,

2/15/27

....

13,678

13,069

1708901.PS.FTS.B,

18.33%,

2/15/27

....

18,246

17,326

1720974.PS.FTS.B,

18.4%,

2/15/27

.....

17,792

16,895

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1708466.PS.FTS.B,

18.6%,

2/15/27

.....

$

5,934

$

5,634

1708103.PS.FTS.B,

18.78%,

2/15/27

....

2,120

2,010

1721007.PS.FTS.B,

22%,

2/15/27

.......

11,038

10,567

1708913.PS.FTS.B,

25.2%,

2/15/27

.....

10,995

10,514

1715353.PS.FTS.B,

25.9%,

2/15/27

.....

1,854

1,774

1709507.PS.FTS.B,

13.5%,

2/16/27

.....

7,213

6,896

1709207.PS.FTS.B,

16%,

2/16/27

.......

9,980

9,484

1722171.PS.FTS.B,

18.78%,

2/16/27

....

6,849

6,507

1709498.PS.FTS.B,

25.9%,

2/16/27

.....

9,272

8,876

1722801.PS.FTS.B,

23.31%,

2/17/27

....

4,151

3,978

1718479.PS.FTS.B,

11.1%,

2/22/27

.....

8,063

7,819

1724556.PS.FTS.B,

17.38%,

2/22/27

....

5,873

5,598

1726185.PS.FTS.B,

10.5%,

2/23/27

.....

13,417

13,013

1719415.PS.FTS.B,

10.8%,

2/23/27

.....

10,653

10,332

1719667.PS.FTS.B,

12.5%,

2/23/27

.....

13,488

13,083

1721913.PS.FTS.B,

16.8%,

2/24/27

.....

32,775

7,548

1739157.PS.FTS.B,

11.5%,

3/18/27

.....

36,464

35,483

1749003.PS.FTS.B,

19.3%,

3/31/27

.....

6,564

6,317

1749006.PS.FTS.B,

19.53%,

3/31/27

....

10,318

9,931

1749429.PS.FTS.B,

25.9%,

3/31/27

.....

5,687

5,494

1613553.PS.FTS.B,

19.78%,

6/15/27

....

11,953

9,869

1605754.PS.FTS.B,

28.4%,

7/10/27

.....

4,520

2,147

1636737.PS.FTS.B,

11.61%,

8/24/27

....

12,632

4,768

5,061,451

Upgrade,

Inc.

24442762.UG.FTS.B,

25.26%,

11/30/22

..

1,294

253

24877097.UG.FTS.B,

25.26%,

12/02/22

..

1,316

1,328

24848052.UG.FTS.B,

25.26%,

12/03/22

..

309

311

24951581.UG.FTS.B,

24.29%,

12/04/22

..

1,147

1,151

24954573.UG.FTS.B,

25.26%,

12/04/22

..

770

772

24798549.UG.FTS.B,

25.26%,

12/05/22

..

271

272

25022405.UG.FTS.B,

25.26%,

12/06/22

..

509

511

24993587.UG.FTS.B,

30.51%,

12/06/22

..

494

498

24914243.UG.FTS.B,

22.34%,

12/10/22

..

373

375

25074574.UG.FTS.B,

25.26%,

12/12/22

..

309

312

25176694.UG.FTS.B,

22.34%,

12/16/22

..

1,191

1,199

25234063.UG.FTS.B,

23.3%,

12/16/22

...

91

91

25240151.UG.FTS.B,

25.26%,

12/17/22

..

387

390

25356190.UG.FTS.B,

30.51%,

12/18/22

..

207

210

25357782.UG.FTS.B,

18.46%,

12/19/22

..

213

215

25027206.UG.FTS.B,

25.26%,

12/19/22

..

367

371

25368629.UG.FTS.B,

25.26%,

12/19/22

..

387

390

25167367.UG.FTS.B,

25.26%,

12/20/22

..

649

657

25381046.UG.FTS.B,

25.26%,

12/20/22

..

152

154

25740670.UG.FTS.B,

24.29%,

12/21/22

..

964

974

24565516.UG.FTS.B,

24.99%,

12/23/22

..

293

296

25414391.UG.FTS.B,

25.26%,

12/23/22

..

228

230

25513053.UG.FTS.B,

24.29%,

12/24/22

..

5,153

860

25111074.UG.FTS.B,

25.26%,

12/26/22

..

3,925

3,955

25532956.UG.FTS.B,

25.26%,

12/26/22

..

211

214

25313096.UG.FTS.B,

30.51%,

12/26/22

..

165

168

25532301.UG.FTS.B,

24.29%,

12/30/22

..

229

231

25652617.UG.FTS.B,

24.99%,

12/30/22

..

232

235

25593308.UG.FTS.B,

25.26%,

12/30/22

..

1,157

1,174

25071555.UG.FTS.B,

24.29%,

12/31/22

..

1,228

1,239

25388007.UG.FTS.B,

25.26%,

12/31/22

..

838

848

25732418.UG.FTS.B,

25.26%,

1/03/23

...

1,148

1,156

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

97

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

(continued)

25530119.UG.FTS.B,

27.21%,

1/03/23

...

$

302

$

305

25610435.UG.FTS.B,

21.38%,

1/06/23

...

1,146

1,151

25828184.UG.FTS.B,

25.26%,

1/06/23

...

786

793

25177120.UG.FTS.B,

25.26%,

1/07/23

...

1,722

1,737

25738288.UG.FTS.B,

24.99%,

1/08/23

...

802

364

25689167.UG.FTS.B,

25.26%,

1/08/23

...

1,522

716

25821264.UG.FTS.B,

18.46%,

1/09/23

...

318

319

25845990.UG.FTS.B,

24.99%,

1/10/23

...

518

521

25568356.UG.FTS.B,

25.26%,

1/14/23

...

238

241

25836913.UG.FTS.B,

25.26%,

1/14/23

...

459

464

25679286.UG.FTS.B,

25.26%,

1/15/23

...

230

232

25712783.UG.FTS.B,

25.26%,

1/17/23

...

600

606

25774309.UG.FTS.B,

25.26%,

1/21/23

...

4,588

353

25709144.UG.FTS.B,

25.26%,

2/03/23

...

1,466

1,478

23712149.UG.FTS.B,

29.69%,

11/06/24

..

14,861

15,709

24548048.UG.FTS.B,

28.99%,

11/20/24

..

25,090

26,132

24415650.UG.FTS.B,

26.77%,

11/22/24

..

8,833

9,265

24697398.UG.FTS.B,

26.77%,

11/25/24

..

10,110

10,637

24468287.UG.FTS.B,

29.69%,

11/26/24

..

20,459

20,894

24511278.UG.FTS.B,

29.69%,

12/01/24

..

21,135

21,147

24606347.UG.FTS.B,

30.17%,

12/03/24

..

13,402

1,093

24391908.UG.FTS.B,

29.69%,

12/06/24

..

8,743

9,192

25051261.UG.FTS.B,

29.69%,

12/09/24

..

10,942

11,371

24755237.UG.FTS.B,

29.69%,

12/10/24

..

7,336

7,758

24464775.UG.FTS.B,

26.77%,

12/19/24

..

13,463

14,059

24618663.UG.FTS.B,

29.69%,

12/21/24

..

15,757

16,668

25533971.UG.FTS.B,

29.69%,

12/26/24

..

7,241

7,679

25752944.UG.FTS.B,

26.77%,

1/03/25

...

10,304

8,553

25721348.UG.FTS.B,

28.99%,

1/06/25

...

16,249

13,990

25684301.UG.FTS.B,

29.69%,

1/06/25

...

9,603

9,930

25284171.UG.FTS.B,

27.74%,

1/14/25

...

12,712

13,262

25595802.UG.FTS.B,

28.99%,

1/22/25

...

13,448

13,143

24177030.UG.FTS.B,

30.51%,

11/05/27

..

42

42

24198170.UG.FTS.B,

23.3%,

11/07/27

...

373

374

24230934.UG.FTS.B,

24.29%,

11/07/27

..

193

193

24181857.UG.FTS.B,

24.29%,

11/08/27

..

5

5

24265315.UG.FTS.B,

25.26%,

11/08/27

..

117

118

24375634.UG.FTS.B,

25.26%,

11/12/27

..

297

298

24408286.UG.FTS.B,

24.99%,

11/14/27

..

195

196

24307805.UG.FTS.B,

30.51%,

11/14/27

..

152

153

24197514.UG.FTS.B,

24.99%,

11/15/27

..

195

196

24408986.UG.FTS.B,

25.26%,

11/16/27

..

414

415

24551925.UG.FTS.B,

27.21%,

11/18/27

..

240

241

24508053.UG.FTS.B,

22.34%,

11/20/27

..

3,753

747

24598646.UG.FTS.B,

25.26%,

11/20/27

..

215

217

24633524.UG.FTS.B,

25.26%,

11/21/27

..

117

118

24545726.UG.FTS.B,

24.99%,

11/23/27

..

2,883

2,922

24759733.UG.FTS.B,

22.34%,

11/26/27

..

80

81

24787776.UG.FTS.B,

25.26%,

11/26/27

..

274

276

267,394

Upgrade,

Inc.

-

Card

991645302.UG.FTS.B,

28.98%,

12/23/22

.

8

8

991762468.UG.FTS.B,

29.49%,

2/20/23

..

14

13

991763034.UG.FTS.B,

29.49%,

6/20/23

..

34

30

991534887.UG.FTS.B,

Zero

Cpn,

1/18/24

.

776

54

991543207.UG.FTS.B,

Zero

Cpn,

1/18/24

.

192

14

991584575.UG.FTS.B,

Zero

Cpn,

1/18/24

.

100

7

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991639272.UG.FTS.B,

Zero

Cpn,

1/18/24

.

$

149

$

10

991546368.UG.FTS.B,

28.48%,

1/18/24

..

120

122

991552729.UG.FTS.B,

28.48%,

1/18/24

..

683

689

991592691.UG.FTS.B,

28.48%,

1/18/24

..

66

67

991622139.UG.FTS.B,

28.48%,

1/18/24

..

635

649

991732331.UG.FTS.B,

28.48%,

1/18/24

..

73

19

991535064.UG.FTS.B,

29.45%,

1/18/24

..

869

–

991535077.UG.FTS.B,

29.46%,

1/18/24

..

90

92

991751743.UG.FTS.B,

29.47%,

1/18/24

..

258

261

991607820.UG.FTS.B,

29.48%,

1/18/24

..

9

9

991536585.UG.FTS.B,

29.49%,

1/18/24

..

158

162

991539593.UG.FTS.B,

29.49%,

1/18/24

..

722

184

991541856.UG.FTS.B,

29.49%,

1/18/24

..

74

21

991545264.UG.FTS.B,

29.49%,

1/18/24

..

–

–

991546280.UG.FTS.B,

29.49%,

1/18/24

..

68

67

991546337.UG.FTS.B,

29.49%,

1/18/24

..

122

125

991552817.UG.FTS.B,

29.49%,

1/18/24

..

166

164

991556797.UG.FTS.B,

29.49%,

1/18/24

..

20

20

991587612.UG.FTS.B,

29.49%,

1/18/24

..

202

204

991629208.UG.FTS.B,

29.49%,

1/18/24

..

136

139

991692863.UG.FTS.B,

29.49%,

1/18/24

..

30

31

991709913.UG.FTS.B,

29.49%,

1/18/24

..

9

9

991727329.UG.FTS.B,

29.49%,

1/18/24

..

236

237

991767003.UG.FTS.B,

29.49%,

1/18/24

..

14

14

991769780.UG.FTS.B,

29.49%,

1/18/24

..

108

108

991770423.UG.FTS.B,

29.49%,

1/18/24

..

6

6

991755795.UG.FTS.B,

Zero

Cpn,

1/19/24

.

314

22

991546995.UG.FTS.B,

19.99%,

1/19/24

..

151

152

991781416.UG.FTS.B,

20.96%,

1/19/24

..

1,204

1,206

991545922.UG.FTS.B,

25.45%,

1/19/24

..

83

83

991546826.UG.FTS.B,

28.48%,

1/19/24

..

73

75

991765474.UG.FTS.B,

28.48%,

1/19/24

..

91

92

991781301.UG.FTS.B,

28.48%,

1/19/24

..

134

133

991783894.UG.FTS.B,

28.48%,

1/19/24

..

175

24

991782715.UG.FTS.B,

28.98%,

1/19/24

..

98

99

991769837.UG.FTS.B,

29.46%,

1/19/24

..

91

92

991586601.UG.FTS.B,

29.48%,

1/19/24

..

125

126

991644301.UG.FTS.B,

29.48%,

1/19/24

..

89

90

991689540.UG.FTS.B,

29.48%,

1/19/24

..

183

183

991746052.UG.FTS.B,

29.48%,

1/19/24

..

276

279

991759026.UG.FTS.B,

29.48%,

1/19/24

..

170

172

991765371.UG.FTS.B,

29.48%,

1/19/24

..

68

68

991542914.UG.FTS.B,

29.49%,

1/19/24

..

151

155

991543898.UG.FTS.B,

29.49%,

1/19/24

..

184

185

991546985.UG.FTS.B,

29.49%,

1/19/24

..

91

93

991547308.UG.FTS.B,

29.49%,

1/19/24

..

55

55

991547551.UG.FTS.B,

29.49%,

1/19/24

..

554

560

991548186.UG.FTS.B,

29.49%,

1/19/24

..

149

151

991548469.UG.FTS.B,

29.49%,

1/19/24

..

552

571

991551487.UG.FTS.B,

29.49%,

1/19/24

..

68

67

991592161.UG.FTS.B,

29.49%,

1/19/24

..

–

–

991596747.UG.FTS.B,

29.49%,

1/19/24

..

11

11

991598993.UG.FTS.B,

29.49%,

1/19/24

..

82

84

991623047.UG.FTS.B,

29.49%,

1/19/24

..

218

223

991662782.UG.FTS.B,

29.49%,

1/19/24

..

5

5

991671486.UG.FTS.B,

29.49%,

1/19/24

..

241

243

991680832.UG.FTS.B,

29.49%,

1/19/24

..

104

105

991684437.UG.FTS.B,

29.49%,

1/19/24

..

53

53

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991697701.UG.FTS.B,

29.49%,

1/19/24

..

$

118

$

119

991700048.UG.FTS.B,

29.49%,

1/19/24

..

165

(7)

991712782.UG.FTS.B,

29.49%,

1/19/24

..

447

445

991713760.UG.FTS.B,

29.49%,

1/19/24

..

57

5

991716976.UG.FTS.B,

29.49%,

1/19/24

..

255

257

991733265.UG.FTS.B,

29.49%,

1/19/24

..

102

102

991733667.UG.FTS.B,

29.49%,

1/19/24

..

25

25

991738510.UG.FTS.B,

29.49%,

1/19/24

..

31

31

991756258.UG.FTS.B,

29.49%,

1/19/24

..

41

41

991760642.UG.FTS.B,

29.49%,

1/19/24

..

120

121

991765089.UG.FTS.B,

29.49%,

1/19/24

..

125

125

991765438.UG.FTS.B,

29.49%,

1/19/24

..

71

56

991767462.UG.FTS.B,

29.49%,

1/19/24

..

68

69

991768418.UG.FTS.B,

29.49%,

1/19/24

..

47

48

991769206.UG.FTS.B,

29.49%,

1/19/24

..

54

54

991775481.UG.FTS.B,

29.49%,

1/19/24

..

28

25

991776397.UG.FTS.B,

29.49%,

1/19/24

..

27

26

991778932.UG.FTS.B,

29.49%,

1/19/24

..

–

–

991782126.UG.FTS.B,

29.49%,

1/19/24

..

179

181

991545436.UG.FTS.B,

Zero

Cpn,

1/20/24

.

617

43

991545746.UG.FTS.B,

Zero

Cpn,

1/20/24

.

225

16

991546417.UG.FTS.B,

Zero

Cpn,

1/20/24

.

295

20

991546653.UG.FTS.B,

Zero

Cpn,

1/20/24

.

119

8

991547138.UG.FTS.B,

Zero

Cpn,

1/20/24

.

56

4

991560733.UG.FTS.B,

Zero

Cpn,

1/20/24

.

196

14

991572060.UG.FTS.B,

Zero

Cpn,

1/20/24

.

39

3

991592194.UG.FTS.B,

Zero

Cpn,

1/20/24

.

151

11

991593821.UG.FTS.B,

Zero

Cpn,

1/20/24

.

252

18

991709857.UG.FTS.B,

Zero

Cpn,

1/20/24

.

101

7

991782434.UG.FTS.B,

19.3%,

1/20/24

...

799

803

991758585.UG.FTS.B,

19.96%,

1/20/24

..

16

3

991544475.UG.FTS.B,

19.99%,

1/20/24

..

5

5

991546567.UG.FTS.B,

19.99%,

1/20/24

..

67

69

991552412.UG.FTS.B,

19.99%,

1/20/24

..

11

11

991555516.UG.FTS.B,

19.99%,

1/20/24

..

22

22

991556030.UG.FTS.B,

19.99%,

1/20/24

..

2

2

991556410.UG.FTS.B,

19.99%,

1/20/24

..

34

35

991558368.UG.FTS.B,

19.99%,

1/20/24

..

707

724

991564841.UG.FTS.B,

19.99%,

1/20/24

..

7

7

991572409.UG.FTS.B,

19.99%,

1/20/24

..

366

370

991574011.UG.FTS.B,

19.99%,

1/20/24

..

16

16

991583492.UG.FTS.B,

19.99%,

1/20/24

..

57

58

991591617.UG.FTS.B,

19.99%,

1/20/24

..

63

64

991597422.UG.FTS.B,

19.99%,

1/20/24

..

110

110

991721579.UG.FTS.B,

25.44%,

1/20/24

..

15

15

991563444.UG.FTS.B,

25.45%,

1/20/24

..

150

151

991582394.UG.FTS.B,

25.45%,

1/20/24

..

594

588

991734079.UG.FTS.B,

25.45%,

1/20/24

..

54

54

991754836.UG.FTS.B,

25.45%,

1/20/24

..

50

50

991768790.UG.FTS.B,

25.45%,

1/20/24

..

103

(4)

991573254.UG.FTS.B,

26.44%,

1/20/24

..

159

159

991739704.UG.FTS.B,

26.44%,

1/20/24

..

71

70

991770500.UG.FTS.B,

26.44%,

1/20/24

..

13

13

991608654.UG.FTS.B,

27.95%,

1/20/24

..

5

5

991610954.UG.FTS.B,

27.95%,

1/20/24

..

88

89

991544405.UG.FTS.B,

28.48%,

1/20/24

..

80

81

991544745.UG.FTS.B,

28.48%,

1/20/24

..

110

9

991546473.UG.FTS.B,

28.48%,

1/20/24

..

50

51

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991549025.UG.FTS.B,

28.48%,

1/20/24

..

$

206

$

211

991554027.UG.FTS.B,

28.48%,

1/20/24

..

242

246

991554902.UG.FTS.B,

28.48%,

1/20/24

..

65

67

991559316.UG.FTS.B,

28.48%,

1/20/24

..

91

93

991561971.UG.FTS.B,

28.48%,

1/20/24

..

14

14

991568589.UG.FTS.B,

28.48%,

1/20/24

..

123

126

991569197.UG.FTS.B,

28.48%,

1/20/24

..

126

127

991571005.UG.FTS.B,

28.48%,

1/20/24

..

–

–

991583384.UG.FTS.B,

28.48%,

1/20/24

..

69

70

991589155.UG.FTS.B,

28.48%,

1/20/24

..

26

26

991590348.UG.FTS.B,

28.48%,

1/20/24

..

97

99

991596321.UG.FTS.B,

28.48%,

1/20/24

..

59

9

991612639.UG.FTS.B,

28.48%,

1/20/24

..

130

132

991613294.UG.FTS.B,

28.48%,

1/20/24

..

27

27

991615418.UG.FTS.B,

28.48%,

1/20/24

..

97

98

991617196.UG.FTS.B,

28.48%,

1/20/24

..

7

7

991617650.UG.FTS.B,

28.48%,

1/20/24

..

278

284

991622252.UG.FTS.B,

28.48%,

1/20/24

..

124

125

991625056.UG.FTS.B,

28.48%,

1/20/24

..

125

128

991644127.UG.FTS.B,

28.48%,

1/20/24

..

195

200

991659625.UG.FTS.B,

28.48%,

1/20/24

..

532

545

991679918.UG.FTS.B,

28.48%,

1/20/24

..

98

98

991691451.UG.FTS.B,

28.48%,

1/20/24

..

103

106

991704363.UG.FTS.B,

28.48%,

1/20/24

..

137

137

991708292.UG.FTS.B,

28.48%,

1/20/24

..

209

212

991738025.UG.FTS.B,

28.48%,

1/20/24

..

–

–

991754575.UG.FTS.B,

28.48%,

1/20/24

..

256

259

991756843.UG.FTS.B,

28.48%,

1/20/24

..

63

64

991782424.UG.FTS.B,

28.48%,

1/20/24

..

137

139

991553626.UG.FTS.B,

29.45%,

1/20/24

..

126

127

991545055.UG.FTS.B,

29.46%,

1/20/24

..

173

176

991563815.UG.FTS.B,

29.46%,

1/20/24

..

41

42

991568266.UG.FTS.B,

29.46%,

1/20/24

..

–

–

991585330.UG.FTS.B,

29.46%,

1/20/24

..

16

16

991596840.UG.FTS.B,

29.46%,

1/20/24

..

41

41

991678744.UG.FTS.B,

29.46%,

1/20/24

..

69

70

991561413.UG.FTS.B,

29.47%,

1/20/24

..

52

53

991573077.UG.FTS.B,

29.47%,

1/20/24

..

29

29

991576227.UG.FTS.B,

29.47%,

1/20/24

..

140

141

991615137.UG.FTS.B,

29.47%,

1/20/24

..

814

114

991650318.UG.FTS.B,

29.47%,

1/20/24

..

48

48

991546096.UG.FTS.B,

29.48%,

1/20/24

..

157

157

991547890.UG.FTS.B,

29.48%,

1/20/24

..

390

399

991550388.UG.FTS.B,

29.48%,

1/20/24

..

963

981

991563118.UG.FTS.B,

29.48%,

1/20/24

..

45

45

991564117.UG.FTS.B,

29.48%,

1/20/24

..

68

70

991564976.UG.FTS.B,

29.48%,

1/20/24

..

50

51

991573314.UG.FTS.B,

29.48%,

1/20/24

..

241

246

991593773.UG.FTS.B,

29.48%,

1/20/24

..

58

59

991612779.UG.FTS.B,

29.48%,

1/20/24

..

152

153

991615405.UG.FTS.B,

29.48%,

1/20/24

..

56

56

991630832.UG.FTS.B,

29.48%,

1/20/24

..

14

14

991637112.UG.FTS.B,

29.48%,

1/20/24

..

482

491

991642133.UG.FTS.B,

29.48%,

1/20/24

..

2

2

991658933.UG.FTS.B,

29.48%,

1/20/24

..

10

10

991666791.UG.FTS.B,

29.48%,

1/20/24

..

128

127

991690864.UG.FTS.B,

29.48%,

1/20/24

..

588

598

991698237.UG.FTS.B,

29.48%,

1/20/24

..

118

17

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

99

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991712564.UG.FTS.B,

29.48%,

1/20/24

..

$

294

$

298

991723500.UG.FTS.B,

29.48%,

1/20/24

..

96

97

991760060.UG.FTS.B,

29.48%,

1/20/24

..

7

7

991768269.UG.FTS.B,

29.48%,

1/20/24

..

–

–

991775284.UG.FTS.B,

29.48%,

1/20/24

..

473

34

991544517.UG.FTS.B,

29.49%,

1/20/24

..

117

119

991544913.UG.FTS.B,

29.49%,

1/20/24

..

267

21

991545295.UG.FTS.B,

29.49%,

1/20/24

..

424

64

991545502.UG.FTS.B,

29.49%,

1/20/24

..

314

321

991545540.UG.FTS.B,

29.49%,

1/20/24

..

14

14

991545628.UG.FTS.B,

29.49%,

1/20/24

..

26

26

991545797.UG.FTS.B,

29.49%,

1/20/24

..

15

15

991546518.UG.FTS.B,

29.49%,

1/20/24

..

79

80

991546552.UG.FTS.B,

29.49%,

1/20/24

..

396

404

991546601.UG.FTS.B,

29.49%,

1/20/24

..

96

98

991546665.UG.FTS.B,

29.49%,

1/20/24

..

58

58

991546843.UG.FTS.B,

29.49%,

1/20/24

..

72

10

991547068.UG.FTS.B,

29.49%,

1/20/24

..

140

143

991547698.UG.FTS.B,

29.49%,

1/20/24

..

25

25

991547820.UG.FTS.B,

29.49%,

1/20/24

..

8

8

991547826.UG.FTS.B,

29.49%,

1/20/24

..

251

254

991548078.UG.FTS.B,

29.49%,

1/20/24

..

27

27

991548176.UG.FTS.B,

29.49%,

1/20/24

..

64

64

991548275.UG.FTS.B,

29.49%,

1/20/24

..

243

239

991548490.UG.FTS.B,

29.49%,

1/20/24

..

221

226

991548883.UG.FTS.B,

29.49%,

1/20/24

..

778

111

991549381.UG.FTS.B,

29.49%,

1/20/24

..

242

246

991550861.UG.FTS.B,

29.49%,

1/20/24

..

364

27

991551681.UG.FTS.B,

29.49%,

1/20/24

..

66

66

991551861.UG.FTS.B,

29.49%,

1/20/24

..

11

11

991552461.UG.FTS.B,

29.49%,

1/20/24

..

138

140

991552510.UG.FTS.B,

29.49%,

1/20/24

..

62

4

991552688.UG.FTS.B,

29.49%,

1/20/24

..

48

49

991552719.UG.FTS.B,

29.49%,

1/20/24

..

–

–

991553257.UG.FTS.B,

29.49%,

1/20/24

..

685

698

991553851.UG.FTS.B,

29.49%,

1/20/24

..

8

8

991554296.UG.FTS.B,

29.49%,

1/20/24

..

29

28

991555945.UG.FTS.B,

29.49%,

1/20/24

..

86

88

991556087.UG.FTS.B,

29.49%,

1/20/24

..

68

70

991556675.UG.FTS.B,

29.49%,

1/20/24

..

59

48

991557821.UG.FTS.B,

29.49%,

1/20/24

..

140

143

991557990.UG.FTS.B,

29.49%,

1/20/24

..

44

45

991558974.UG.FTS.B,

29.49%,

1/20/24

..

70

70

991559051.UG.FTS.B,

29.49%,

1/20/24

..

101

103

991559980.UG.FTS.B,

29.49%,

1/20/24

..

36

36

991560944.UG.FTS.B,

29.49%,

1/20/24

..

75

6

991561556.UG.FTS.B,

29.49%,

1/20/24

..

20

20

991561851.UG.FTS.B,

29.49%,

1/20/24

..

17

17

991561923.UG.FTS.B,

29.49%,

1/20/24

..

220

225

991562972.UG.FTS.B,

29.49%,

1/20/24

..

597

611

991564235.UG.FTS.B,

29.49%,

1/20/24

..

32

33

991564550.UG.FTS.B,

29.49%,

1/20/24

..

71

(1)

991565486.UG.FTS.B,

29.49%,

1/20/24

..

141

140

991567858.UG.FTS.B,

29.49%,

1/20/24

..

495

487

991569020.UG.FTS.B,

29.49%,

1/20/24

..

82

81

991569555.UG.FTS.B,

29.49%,

1/20/24

..

239

35

991569938.UG.FTS.B,

29.49%,

1/20/24

..

69

71

991572399.UG.FTS.B,

29.49%,

1/20/24

..

19

19

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991572520.UG.FTS.B,

29.49%,

1/20/24

..

$

89

$

91

991572954.UG.FTS.B,

29.49%,

1/20/24

..

569

583

991573325.UG.FTS.B,

29.49%,

1/20/24

..

48

49

991575505.UG.FTS.B,

29.49%,

1/20/24

..

783

789

991575740.UG.FTS.B,

29.49%,

1/20/24

..

56

57

991575903.UG.FTS.B,

29.49%,

1/20/24

..

530

542

991576674.UG.FTS.B,

29.49%,

1/20/24

..

66

68

991577203.UG.FTS.B,

29.49%,

1/20/24

..

48

(5)

991577337.UG.FTS.B,

29.49%,

1/20/24

..

20

20

991578709.UG.FTS.B,

29.49%,

1/20/24

..

62

61

991579389.UG.FTS.B,

29.49%,

1/20/24

..

165

168

991579802.UG.FTS.B,

29.49%,

1/20/24

..

170

174

991579854.UG.FTS.B,

29.49%,

1/20/24

..

103

105

991583578.UG.FTS.B,

29.49%,

1/20/24

..

41

41

991585183.UG.FTS.B,

29.49%,

1/20/24

..

63

64

991585222.UG.FTS.B,

29.49%,

1/20/24

..

39

39

991585361.UG.FTS.B,

29.49%,

1/20/24

..

156

159

991586778.UG.FTS.B,

29.49%,

1/20/24

..

7

7

991586788.UG.FTS.B,

29.49%,

1/20/24

..

26

26

991587497.UG.FTS.B,

29.49%,

1/20/24

..

762

780

991588116.UG.FTS.B,

29.49%,

1/20/24

..

13

13

991588825.UG.FTS.B,

29.49%,

1/20/24

..

111

113

991588849.UG.FTS.B,

29.49%,

1/20/24

..

294

300

991589138.UG.FTS.B,

29.49%,

1/20/24

..

49

50

991591243.UG.FTS.B,

29.49%,

1/20/24

..

133

132

991592314.UG.FTS.B,

29.49%,

1/20/24

..

22

22

991592580.UG.FTS.B,

29.49%,

1/20/24

..

20

19

991593009.UG.FTS.B,

29.49%,

1/20/24

..

83

85

991593482.UG.FTS.B,

29.49%,

1/20/24

..

99

101

991595921.UG.FTS.B,

29.49%,

1/20/24

..

79

80

991597626.UG.FTS.B,

29.49%,

1/20/24

..

815

628

991597653.UG.FTS.B,

29.49%,

1/20/24

..

173

176

991598266.UG.FTS.B,

29.49%,

1/20/24

..

237

242

991598468.UG.FTS.B,

29.49%,

1/20/24

..

56

57

991598552.UG.FTS.B,

29.49%,

1/20/24

..

129

131

991600264.UG.FTS.B,

29.49%,

1/20/24

..

498

376

991601031.UG.FTS.B,

29.49%,

1/20/24

..

304

44

991601123.UG.FTS.B,

29.49%,

1/20/24

..

380

(8)

991601688.UG.FTS.B,

29.49%,

1/20/24

..

212

216

991603595.UG.FTS.B,

29.49%,

1/20/24

..

143

146

991604353.UG.FTS.B,

29.49%,

1/20/24

..

24

24

991608039.UG.FTS.B,

29.49%,

1/20/24

..

31

30

991608834.UG.FTS.B,

29.49%,

1/20/24

..

174

179

991610831.UG.FTS.B,

29.49%,

1/20/24

..

86

88

991611241.UG.FTS.B,

29.49%,

1/20/24

..

156

160

991612399.UG.FTS.B,

29.49%,

1/20/24

..

291

297

991612448.UG.FTS.B,

29.49%,

1/20/24

..

122

125

991612790.UG.FTS.B,

29.49%,

1/20/24

..

89

91

991616120.UG.FTS.B,

29.49%,

1/20/24

..

15

15

991617558.UG.FTS.B,

29.49%,

1/20/24

..

418

428

991620017.UG.FTS.B,

29.49%,

1/20/24

..

72

(1)

991620427.UG.FTS.B,

29.49%,

1/20/24

..

6

6

991621373.UG.FTS.B,

29.49%,

1/20/24

..

64

64

991622812.UG.FTS.B,

29.49%,

1/20/24

..

37

38

991623752.UG.FTS.B,

29.49%,

1/20/24

..

3

3

991624921.UG.FTS.B,

29.49%,

1/20/24

..

38

38

991628891.UG.FTS.B,

29.49%,

1/20/24

..

29

30

991629452.UG.FTS.B,

29.49%,

1/20/24

..

355

363

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991630097.UG.FTS.B,

29.49%,

1/20/24

..

$

125

$

128

991630651.UG.FTS.B,

29.49%,

1/20/24

..

13

13

991631733.UG.FTS.B,

29.49%,

1/20/24

..

353

51

991631740.UG.FTS.B,

29.49%,

1/20/24

..

328

330

991633536.UG.FTS.B,

29.49%,

1/20/24

..

40

41

991634055.UG.FTS.B,

29.49%,

1/20/24

..

227

232

991638534.UG.FTS.B,

29.49%,

1/20/24

..

67

5

991638792.UG.FTS.B,

29.49%,

1/20/24

..

39

39

991638936.UG.FTS.B,

29.49%,

1/20/24

..

86

88

991642104.UG.FTS.B,

29.49%,

1/20/24

..

83

85

991642333.UG.FTS.B,

29.49%,

1/20/24

..

75

76

991644578.UG.FTS.B,

29.49%,

1/20/24

..

577

579

991645038.UG.FTS.B,

29.49%,

1/20/24

..

30

30

991647492.UG.FTS.B,

29.49%,

1/20/24

..

8

8

991648571.UG.FTS.B,

29.49%,

1/20/24

..

72

74

991651171.UG.FTS.B,

29.49%,

1/20/24

..

66

68

991655398.UG.FTS.B,

29.49%,

1/20/24

..

336

(13)

991662686.UG.FTS.B,

29.49%,

1/20/24

..

193

197

991664444.UG.FTS.B,

29.49%,

1/20/24

..

70

71

991665332.UG.FTS.B,

29.49%,

1/20/24

..

278

284

991667531.UG.FTS.B,

29.49%,

1/20/24

..

299

302

991673351.UG.FTS.B,

29.49%,

1/20/24

..

36

36

991673779.UG.FTS.B,

29.49%,

1/20/24

..

121

18

991674489.UG.FTS.B,

29.49%,

1/20/24

..

382

390

991677407.UG.FTS.B,

29.49%,

1/20/24

..

113

113

991678827.UG.FTS.B,

29.49%,

1/20/24

..

245

247

991682318.UG.FTS.B,

29.49%,

1/20/24

..

148

144

991683321.UG.FTS.B,

29.49%,

1/20/24

..

692

708

991685152.UG.FTS.B,

29.49%,

1/20/24

..

32

32

991689170.UG.FTS.B,

29.49%,

1/20/24

..

34

34

991691631.UG.FTS.B,

29.49%,

1/20/24

..

498

503

991691915.UG.FTS.B,

29.49%,

1/20/24

..

2

2

991695616.UG.FTS.B,

29.49%,

1/20/24

..

–

–

991695976.UG.FTS.B,

29.49%,

1/20/24

..

94

95

991697236.UG.FTS.B,

29.49%,

1/20/24

..

277

282

991697324.UG.FTS.B,

29.49%,

1/20/24

..

32

32

991701454.UG.FTS.B,

29.49%,

1/20/24

..

112

112

991706145.UG.FTS.B,

29.49%,

1/20/24

..

114

115

991708222.UG.FTS.B,

29.49%,

1/20/24

..

33

33

991709888.UG.FTS.B,

29.49%,

1/20/24

..

123

124

991711876.UG.FTS.B,

29.49%,

1/20/24

..

42

43

991713015.UG.FTS.B,

29.49%,

1/20/24

..

63

63

991715260.UG.FTS.B,

29.49%,

1/20/24

..

29

2

991717301.UG.FTS.B,

29.49%,

1/20/24

..

253

257

991719630.UG.FTS.B,

29.49%,

1/20/24

..

164

165

991720995.UG.FTS.B,

29.49%,

1/20/24

..

53

53

991721227.UG.FTS.B,

29.49%,

1/20/24

..

69

70

991730813.UG.FTS.B,

29.49%,

1/20/24

..

138

139

991734314.UG.FTS.B,

29.49%,

1/20/24

..

314

317

991734330.UG.FTS.B,

29.49%,

1/20/24

..

64

64

991734632.UG.FTS.B,

29.49%,

1/20/24

..

77

77

991734917.UG.FTS.B,

29.49%,

1/20/24

..

13

13

991739160.UG.FTS.B,

29.49%,

1/20/24

..

37

37

991740784.UG.FTS.B,

29.49%,

1/20/24

..

206

208

991741702.UG.FTS.B,

29.49%,

1/20/24

..

138

135

991748931.UG.FTS.B,

29.49%,

1/20/24

..

110

110

991750028.UG.FTS.B,

29.49%,

1/20/24

..

138

139

991753534.UG.FTS.B,

29.49%,

1/20/24

..

55

4

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991757872.UG.FTS.B,

29.49%,

1/20/24

..

$

56

$

56

991761410.UG.FTS.B,

29.49%,

1/20/24

..

66

66

991763039.UG.FTS.B,

29.49%,

1/20/24

..

220

221

991764702.UG.FTS.B,

29.49%,

1/20/24

..

22

22

991765334.UG.FTS.B,

29.49%,

1/20/24

..

75

76

991769883.UG.FTS.B,

29.49%,

1/20/24

..

–

–

991782660.UG.FTS.B,

29.49%,

1/20/24

..

69

69

991784506.UG.FTS.B,

29.49%,

1/20/24

..

84

12

991790198.UG.FTS.B,

29.49%,

1/20/24

..

120

121

991674358.UG.FTS.B,

Zero

Cpn,

1/21/24

.

420

30

991699892.UG.FTS.B,

Zero

Cpn,

1/21/24

.

99

7

991731721.UG.FTS.B,

Zero

Cpn,

1/21/24

.

888

62

991742379.UG.FTS.B,

18.47%,

1/21/24

..

16

16

991750733.UG.FTS.B,

19.99%,

1/21/24

..

–

–

991692614.UG.FTS.B,

20.47%,

1/21/24

..

25

25

991782326.UG.FTS.B,

20.96%,

1/21/24

..

3

3

991729600.UG.FTS.B,

21.48%,

1/21/24

..

168

168

991767885.UG.FTS.B,

21.48%,

1/21/24

..

64

65

991741170.UG.FTS.B,

22.45%,

1/21/24

..

81

81

991709231.UG.FTS.B,

23.45%,

1/21/24

..

110

110

991788297.UG.FTS.B,

23.45%,

1/21/24

..

4

4

991669352.UG.FTS.B,

26.49%,

1/21/24

..

84

22

991677773.UG.FTS.B,

28.48%,

1/21/24

..

77

78

991693706.UG.FTS.B,

28.48%,

1/21/24

..

157

160

991693767.UG.FTS.B,

28.48%,

1/21/24

..

62

64

991705146.UG.FTS.B,

28.48%,

1/21/24

..

–

–

991711024.UG.FTS.B,

28.48%,

1/21/24

..

150

149

991723171.UG.FTS.B,

28.48%,

1/21/24

..

206

208

991723414.UG.FTS.B,

28.48%,

1/21/24

..

325

329

991730921.UG.FTS.B,

28.48%,

1/21/24

..

342

347

991731530.UG.FTS.B,

28.48%,

1/21/24

..

342

347

991784545.UG.FTS.B,

28.48%,

1/21/24

..

90

91

991702778.UG.FTS.B,

29.48%,

1/21/24

..

113

116

991703577.UG.FTS.B,

29.48%,

1/21/24

..

457

468

991709023.UG.FTS.B,

29.48%,

1/21/24

..

117

119

991738870.UG.FTS.B,

29.48%,

1/21/24

..

21

21

991751249.UG.FTS.B,

29.48%,

1/21/24

..

6

6

991756563.UG.FTS.B,

29.48%,

1/21/24

..

130

18

991633202.UG.FTS.B,

29.49%,

1/21/24

..

110

113

991663489.UG.FTS.B,

29.49%,

1/21/24

..

113

114

991664100.UG.FTS.B,

29.49%,

1/21/24

..

24

25

991668162.UG.FTS.B,

29.49%,

1/21/24

..

26

27

991668483.UG.FTS.B,

29.49%,

1/21/24

..

21

19

991669590.UG.FTS.B,

29.49%,

1/21/24

..

64

65

991670212.UG.FTS.B,

29.49%,

1/21/24

..

58

60

991670452.UG.FTS.B,

29.49%,

1/21/24

..

231

34

991672118.UG.FTS.B,

29.49%,

1/21/24

..

312

22

991672853.UG.FTS.B,

29.49%,

1/21/24

..

32

32

991673090.UG.FTS.B,

29.49%,

1/21/24

..

26

26

991677244.UG.FTS.B,

29.49%,

1/21/24

..

175

179

991680867.UG.FTS.B,

29.49%,

1/21/24

..

140

143

991680983.UG.FTS.B,

29.49%,

1/21/24

..

82

84

991683221.UG.FTS.B,

29.49%,

1/21/24

..

152

23

991687038.UG.FTS.B,

29.49%,

1/21/24

..

20

20

991688837.UG.FTS.B,

29.49%,

1/21/24

..

415

425

991689800.UG.FTS.B,

29.49%,

1/21/24

..

111

114

991691567.UG.FTS.B,

29.49%,

1/21/24

..

253

199

991693634.UG.FTS.B,

29.49%,

1/21/24

..

90

92

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

101

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991694165.UG.FTS.B,

29.49%,

1/21/24

..

$

–

$

–

991694645.UG.FTS.B,

29.49%,

1/21/24

..

176

181

991695164.UG.FTS.B,

29.49%,

1/21/24

..

186

186

991695945.UG.FTS.B,

29.49%,

1/21/24

..

20

20

991696264.UG.FTS.B,

29.49%,

1/21/24

..

220

225

991701379.UG.FTS.B,

29.49%,

1/21/24

..

68

10

991702123.UG.FTS.B,

29.49%,

1/21/24

..

383

28

991703953.UG.FTS.B,

29.49%,

1/21/24

..

136

139

991704641.UG.FTS.B,

29.49%,

1/21/24

..

233

233

991705635.UG.FTS.B,

29.49%,

1/21/24

..

147

148

991706927.UG.FTS.B,

29.49%,

1/21/24

..

88

89

991711423.UG.FTS.B,

29.49%,

1/21/24

..

486

492

991713176.UG.FTS.B,

29.49%,

1/21/24

..

3

3

991716207.UG.FTS.B,

29.49%,

1/21/24

..

113

114

991717827.UG.FTS.B,

29.49%,

1/21/24

..

299

299

991717854.UG.FTS.B,

29.49%,

1/21/24

..

90

91

991718420.UG.FTS.B,

29.49%,

1/21/24

..

171

43

991721760.UG.FTS.B,

29.49%,

1/21/24

..

352

353

991727146.UG.FTS.B,

29.49%,

1/21/24

..

119

17

991727684.UG.FTS.B,

29.49%,

1/21/24

..

17

17

991730534.UG.FTS.B,

29.49%,

1/21/24

..

103

104

991732216.UG.FTS.B,

29.49%,

1/21/24

..

58

58

991733904.UG.FTS.B,

29.49%,

1/21/24

..

354

26

991737559.UG.FTS.B,

29.49%,

1/21/24

..

180

182

991740725.UG.FTS.B,

29.49%,

1/21/24

..

310

314

991741282.UG.FTS.B,

29.49%,

1/21/24

..

18

3

991741497.UG.FTS.B,

29.49%,

1/21/24

..

221

223

991743085.UG.FTS.B,

29.49%,

1/21/24

..

90

91

991743560.UG.FTS.B,

29.49%,

1/21/24

..

59

61

991744629.UG.FTS.B,

29.49%,

1/21/24

..

69

69

991745718.UG.FTS.B,

29.49%,

1/21/24

..

77

74

991747055.UG.FTS.B,

29.49%,

1/21/24

..

203

205

991747057.UG.FTS.B,

29.49%,

1/21/24

..

30

30

991747988.UG.FTS.B,

29.49%,

1/21/24

..

43

43

991749903.UG.FTS.B,

29.49%,

1/21/24

..

681

689

991751438.UG.FTS.B,

29.49%,

1/21/24

..

24

24

991752947.UG.FTS.B,

29.49%,

1/21/24

..

66

67

991753846.UG.FTS.B,

29.49%,

1/21/24

..

130

131

991761541.UG.FTS.B,

29.49%,

1/21/24

..

137

138

991764924.UG.FTS.B,

29.49%,

1/21/24

..

200

152

991773483.UG.FTS.B,

29.49%,

1/21/24

..

92

93

991777657.UG.FTS.B,

29.49%,

1/21/24

..

42

42

991782683.UG.FTS.B,

29.49%,

1/21/24

..

549

556

991783245.UG.FTS.B,

29.49%,

1/21/24

..

52

53

991792435.UG.FTS.B,

29.49%,

1/21/24

..

1,029

1,042

991797353.UG.FTS.B,

29.49%,

1/21/24

..

25

25

991784913.UG.FTS.B,

Zero

Cpn,

1/22/24

.

100

7

991709002.UG.FTS.B,

15%,

1/22/24

.....

40

41

991706603.UG.FTS.B,

15.47%,

1/22/24

..

9

9

991651259.UG.FTS.B,

18.71%,

1/22/24

..

101

102

991651374.UG.FTS.B,

18.71%,

1/22/24

..

51

51

991739678.UG.FTS.B,

18.71%,

1/22/24

..

194

195

991769793.UG.FTS.B,

18.71%,

1/22/24

..

1

1

991660263.UG.FTS.B,

19.3%,

1/22/24

...

220

223

991635081.UG.FTS.B,

19.96%,

1/22/24

..

269

272

991650062.UG.FTS.B,

19.99%,

1/22/24

..

14

14

991626851.UG.FTS.B,

20.47%,

1/22/24

..

–

–

991712989.UG.FTS.B,

20.47%,

1/22/24

..

193

194

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991775322.UG.FTS.B,

20.47%,

1/22/24

..

$

100

$

101

991783332.UG.FTS.B,

20.47%,

1/22/24

..

334

335

991663050.UG.FTS.B,

20.96%,

1/22/24

..

389

390

991774181.UG.FTS.B,

20.96%,

1/22/24

..

161

161

991780816.UG.FTS.B,

20.96%,

1/22/24

..

80

80

991651393.UG.FTS.B,

21.48%,

1/22/24

..

284

287

991654213.UG.FTS.B,

21.48%,

1/22/24

..

328

329

991705819.UG.FTS.B,

21.48%,

1/22/24

..

288

(13)

991721409.UG.FTS.B,

21.48%,

1/22/24

..

46

46

991756912.UG.FTS.B,

21.48%,

1/22/24

..

2

2

991765596.UG.FTS.B,

22.47%,

1/22/24

..

60

61

991779844.UG.FTS.B,

22.47%,

1/22/24

..

48

7

991699664.UG.FTS.B,

25.45%,

1/22/24

..

61

62

991631012.UG.FTS.B,

28.48%,

1/22/24

..

121

123

991642188.UG.FTS.B,

28.48%,

1/22/24

..

146

149

991645563.UG.FTS.B,

28.48%,

1/22/24

..

384

394

991662739.UG.FTS.B,

28.48%,

1/22/24

..

154

158

991668823.UG.FTS.B,

28.48%,

1/22/24

..

211

16

991672489.UG.FTS.B,

28.48%,

1/22/24

..

24

24

991684285.UG.FTS.B,

28.48%,

1/22/24

..

23

24

991725934.UG.FTS.B,

28.48%,

1/22/24

..

87

88

991637365.UG.FTS.B,

29.48%,

1/22/24

..

94

95

991639954.UG.FTS.B,

29.48%,

1/22/24

..

127

131

991649089.UG.FTS.B,

29.49%,

1/22/24

..

856

878

991650586.UG.FTS.B,

29.49%,

1/22/24

..

23

23

991659080.UG.FTS.B,

29.49%,

1/22/24

..

–

–

991660122.UG.FTS.B,

29.49%,

1/22/24

..

67

68

991660601.UG.FTS.B,

29.49%,

1/22/24

..

61

61

991672504.UG.FTS.B,

29.49%,

1/22/24

..

1,179

1,202

991684648.UG.FTS.B,

29.49%,

1/22/24

..

123

124

991688463.UG.FTS.B,

29.49%,

1/22/24

..

7

7

991692165.UG.FTS.B,

29.49%,

1/22/24

..

36

36

991696271.UG.FTS.B,

29.49%,

1/22/24

..

492

497

991709431.UG.FTS.B,

29.49%,

1/22/24

..

38

38

991709501.UG.FTS.B,

29.49%,

1/22/24

..

26

5

991722363.UG.FTS.B,

29.49%,

1/22/24

..

104

106

991722481.UG.FTS.B,

29.49%,

1/22/24

..

110

111

991723437.UG.FTS.B,

29.49%,

1/22/24

..

89

90

991734177.UG.FTS.B,

29.49%,

1/22/24

..

107

108

991753916.UG.FTS.B,

29.49%,

1/22/24

..

392

394

991765647.UG.FTS.B,

29.49%,

1/22/24

..

228

230

991766286.UG.FTS.B,

29.49%,

1/22/24

..

19

19

991772721.UG.FTS.B,

29.49%,

1/22/24

..

1,445

1,458

991778279.UG.FTS.B,

29.49%,

1/22/24

..

4

4

991786882.UG.FTS.B,

29.49%,

1/22/24

..

28

2

991788968.UG.FTS.B,

29.49%,

1/22/24

..

292

218

991796239.UG.FTS.B,

29.49%,

1/22/24

..

401

30

991808260.UG.FTS.B,

29.49%,

1/22/24

..

37

37

991683741.UG.FTS.B,

Zero

Cpn,

1/23/24

.

29

2

991676903.UG.FTS.B,

18.47%,

1/23/24

..

74

74

991685683.UG.FTS.B,

18.47%,

1/23/24

..

115

116

991774569.UG.FTS.B,

18.47%,

1/23/24

..

76

77

991629162.UG.FTS.B,

19.3%,

1/23/24

...

3

3

991642674.UG.FTS.B,

19.3%,

1/23/24

...

70

70

991643208.UG.FTS.B,

19.3%,

1/23/24

...

162

163

991784139.UG.FTS.B,

19.3%,

1/23/24

...

1,629

1,637

991785256.UG.FTS.B,

19.3%,

1/23/24

...

92

93

991810762.UG.FTS.B,

19.96%,

1/23/24

..

667

670

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991646006.UG.FTS.B,

20.47%,

1/23/24

..

$

89

$

90

991772621.UG.FTS.B,

20.96%,

1/23/24

..

134

134

991802095.UG.FTS.B,

20.96%,

1/23/24

..

609

610

991651727.UG.FTS.B,

21.48%,

1/23/24

..

69

69

991730828.UG.FTS.B,

22.47%,

1/23/24

..

301

41

991668916.UG.FTS.B,

23.45%,

1/23/24

..

8

8

991678989.UG.FTS.B,

23.45%,

1/23/24

..

148

147

991764966.UG.FTS.B,

23.45%,

1/23/24

..

69

69

991805841.UG.FTS.B,

24.45%,

1/23/24

..

98

98

991663622.UG.FTS.B,

25.45%,

1/23/24

..

108

108

991637815.UG.FTS.B,

26.44%,

1/23/24

..

728

726

991725080.UG.FTS.B,

27.95%,

1/23/24

..

24

24

991767100.UG.FTS.B,

27.99%,

1/23/24

..

49

49

991818118.UG.FTS.B,

27.99%,

1/23/24

..

44

44

991631116.UG.FTS.B,

28.48%,

1/23/24

..

115

116

991686637.UG.FTS.B,

28.48%,

1/23/24

..

242

241

991692289.UG.FTS.B,

28.48%,

1/23/24

..

59

60

991710024.UG.FTS.B,

28.48%,

1/23/24

..

252

256

991710331.UG.FTS.B,

28.48%,

1/23/24

..

30

30

991730901.UG.FTS.B,

28.48%,

1/23/24

..

923

132

991743333.UG.FTS.B,

28.48%,

1/23/24

..

40

40

991761044.UG.FTS.B,

28.48%,

1/23/24

..

22

22

991798676.UG.FTS.B,

28.48%,

1/23/24

..

89

90

991635388.UG.FTS.B,

29.48%,

1/23/24

..

478

487

991661160.UG.FTS.B,

29.48%,

1/23/24

..

82

83

991661629.UG.FTS.B,

29.48%,

1/23/24

..

16

16

991678696.UG.FTS.B,

29.48%,

1/23/24

..

165

168

991789898.UG.FTS.B,

29.48%,

1/23/24

..

29

26

991807034.UG.FTS.B,

29.48%,

1/23/24

..

138

(2)

991809474.UG.FTS.B,

29.48%,

1/23/24

..

141

141

991631438.UG.FTS.B,

29.49%,

1/23/24

..

27

27

991634459.UG.FTS.B,

29.49%,

1/23/24

..

349

355

991637143.UG.FTS.B,

29.49%,

1/23/24

..

144

147

991653477.UG.FTS.B,

29.49%,

1/23/24

..

109

110

991655971.UG.FTS.B,

29.49%,

1/23/24

..

121

124

991660994.UG.FTS.B,

29.49%,

1/23/24

..

54

54

991661636.UG.FTS.B,

29.49%,

1/23/24

..

53

54

991662802.UG.FTS.B,

29.49%,

1/23/24

..

1,134

1,144

991662886.UG.FTS.B,

29.49%,

1/23/24

..

36

36

991669440.UG.FTS.B,

29.49%,

1/23/24

..

23

23

991675288.UG.FTS.B,

29.49%,

1/23/24

..

209

212

991681725.UG.FTS.B,

29.49%,

1/23/24

..

68

70

991682766.UG.FTS.B,

29.49%,

1/23/24

..

271

74

991701176.UG.FTS.B,

29.49%,

1/23/24

..

84

86

991702141.UG.FTS.B,

29.49%,

1/23/24

..

30

30

991714113.UG.FTS.B,

29.49%,

1/23/24

..

25

25

991714944.UG.FTS.B,

29.49%,

1/23/24

..

109

82

991724292.UG.FTS.B,

29.49%,

1/23/24

..

311

312

991731407.UG.FTS.B,

29.49%,

1/23/24

..

1,382

1,418

991731683.UG.FTS.B,

29.49%,

1/23/24

..

553

567

991732340.UG.FTS.B,

29.49%,

1/23/24

..

106

105

991744187.UG.FTS.B,

29.49%,

1/23/24

..

135

136

991752739.UG.FTS.B,

29.49%,

1/23/24

..

13

13

991759990.UG.FTS.B,

29.49%,

1/23/24

..

53

54

991761841.UG.FTS.B,

29.49%,

1/23/24

..

28

28

991762601.UG.FTS.B,

29.49%,

1/23/24

..

18

18

991763609.UG.FTS.B,

29.49%,

1/23/24

..

29

(1)

991766725.UG.FTS.B,

29.49%,

1/23/24

..

32

32

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991771610.UG.FTS.B,

29.49%,

1/23/24

..

$

253

$

257

991777333.UG.FTS.B,

29.49%,

1/23/24

..

140

21

991805214.UG.FTS.B,

29.49%,

1/23/24

..

21

21

991809214.UG.FTS.B,

29.49%,

1/23/24

..

163

47

991666537.UG.FTS.B,

Zero

Cpn,

1/24/24

.

42

3

991694352.UG.FTS.B,

Zero

Cpn,

1/24/24

.

70

5

991784784.UG.FTS.B,

Zero

Cpn,

1/24/24

.

153

11

991661331.UG.FTS.B,

16.49%,

1/24/24

..

98

99

991633382.UG.FTS.B,

17.49%,

1/24/24

..

262

261

991697456.UG.FTS.B,

18.71%,

1/24/24

..

67

19

991719938.UG.FTS.B,

18.71%,

1/24/24

..

156

158

991671413.UG.FTS.B,

19.99%,

1/24/24

..

24

25

991758673.UG.FTS.B,

19.99%,

1/24/24

..

248

252

991678748.UG.FTS.B,

20.47%,

1/24/24

..

142

143

991675015.UG.FTS.B,

21.48%,

1/24/24

..

677

683

991693039.UG.FTS.B,

22.47%,

1/24/24

..

189

191

991676936.UG.FTS.B,

27.99%,

1/24/24

..

18

18

991655876.UG.FTS.B,

28.48%,

1/24/24

..

272

24

991679024.UG.FTS.B,

28.48%,

1/24/24

..

352

357

991683577.UG.FTS.B,

28.48%,

1/24/24

..

12

13

991758587.UG.FTS.B,

28.48%,

1/24/24

..

10

10

991803895.UG.FTS.B,

28.48%,

1/24/24

..

125

(4)

991804850.UG.FTS.B,

28.48%,

1/24/24

..

88

89

991595875.UG.FTS.B,

29.48%,

1/24/24

..

198

201

991636673.UG.FTS.B,

29.48%,

1/24/24

..

22

22

991795779.UG.FTS.B,

29.48%,

1/24/24

..

77

79

991575830.UG.FTS.B,

29.49%,

1/24/24

..

731

718

991576816.UG.FTS.B,

29.49%,

1/24/24

..

325

256

991578487.UG.FTS.B,

29.49%,

1/24/24

..

35

35

991591790.UG.FTS.B,

29.49%,

1/24/24

..

335

339

991591971.UG.FTS.B,

29.49%,

1/24/24

..

303

310

991597915.UG.FTS.B,

29.49%,

1/24/24

..

70

71

991628575.UG.FTS.B,

29.49%,

1/24/24

..

58

5

991636430.UG.FTS.B,

29.49%,

1/24/24

..

48

49

991638903.UG.FTS.B,

29.49%,

1/24/24

..

–

–

991648828.UG.FTS.B,

29.49%,

1/24/24

..

90

90

991650075.UG.FTS.B,

29.49%,

1/24/24

..

473

466

991656328.UG.FTS.B,

29.49%,

1/24/24

..

139

143

991661397.UG.FTS.B,

29.49%,

1/24/24

..

86

8

991664182.UG.FTS.B,

29.49%,

1/24/24

..

82

7

991665767.UG.FTS.B,

29.49%,

1/24/24

..

83

85

991668476.UG.FTS.B,

29.49%,

1/24/24

..

120

120

991677221.UG.FTS.B,

29.49%,

1/24/24

..

33

33

991677415.UG.FTS.B,

29.49%,

1/24/24

..

44

4

991685775.UG.FTS.B,

29.49%,

1/24/24

..

90

92

991686888.UG.FTS.B,

29.49%,

1/24/24

..

141

143

991688167.UG.FTS.B,

29.49%,

1/24/24

..

117

115

991697780.UG.FTS.B,

29.49%,

1/24/24

..

44

44

991700002.UG.FTS.B,

29.49%,

1/24/24

..

–

–

991711786.UG.FTS.B,

29.49%,

1/24/24

..

940

234

991719521.UG.FTS.B,

29.49%,

1/24/24

..

154

155

991720702.UG.FTS.B,

29.49%,

1/24/24

..

381

54

991729920.UG.FTS.B,

29.49%,

1/24/24

..

63

62

991739712.UG.FTS.B,

29.49%,

1/24/24

..

68

70

991746557.UG.FTS.B,

29.49%,

1/24/24

..

202

205

991762599.UG.FTS.B,

29.49%,

1/24/24

..

32

32

991764921.UG.FTS.B,

29.49%,

1/24/24

..

24

24

991767615.UG.FTS.B,

29.49%,

1/24/24

..

466

68

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

103

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991768107.UG.FTS.B,

29.49%,

1/24/24

..

$

115

$

114

991775830.UG.FTS.B,

29.49%,

1/24/24

..

106

107

991784482.UG.FTS.B,

29.49%,

1/24/24

..

106

109

991790063.UG.FTS.B,

29.49%,

1/24/24

..

37

38

991790699.UG.FTS.B,

29.49%,

1/24/24

..

99

99

991806718.UG.FTS.B,

29.49%,

1/24/24

..

23

23

991812021.UG.FTS.B,

29.49%,

1/24/24

..

85

7

991824433.UG.FTS.B,

29.49%,

1/24/24

..

12

12

991700376.UG.FTS.B,

29.98%,

1/24/24

..

–

–

991628742.UG.FTS.B,

15.47%,

1/25/24

..

–

–

991657024.UG.FTS.B,

15.47%,

1/25/24

..

25

25

991690086.UG.FTS.B,

16.49%,

1/25/24

..

117

117

991702421.UG.FTS.B,

16.49%,

1/25/24

..

76

77

991642537.UG.FTS.B,

18.47%,

1/25/24

..

96

97

991658713.UG.FTS.B,

18.47%,

1/25/24

..

105

105

991790759.UG.FTS.B,

18.47%,

1/25/24

..

60

60

991642255.UG.FTS.B,

18.71%,

1/25/24

..

128

130

991712687.UG.FTS.B,

19.3%,

1/25/24

...

117

117

991799549.UG.FTS.B,

19.3%,

1/25/24

...

43

44

991749971.UG.FTS.B,

19.96%,

1/25/24

..

33

33

991809710.UG.FTS.B,

19.99%,

1/25/24

..

26

26

991638927.UG.FTS.B,

20.96%,

1/25/24

..

139

141

991794499.UG.FTS.B,

20.96%,

1/25/24

..

12

12

991629183.UG.FTS.B,

21.48%,

1/25/24

..

14

14

991639306.UG.FTS.B,

21.48%,

1/25/24

..

63

63

991661968.UG.FTS.B,

21.48%,

1/25/24

..

250

252

991644518.UG.FTS.B,

22.47%,

1/25/24

..

95

95

991653049.UG.FTS.B,

22.47%,

1/25/24

..

210

212

991665257.UG.FTS.B,

22.47%,

1/25/24

..

79

79

991666345.UG.FTS.B,

22.47%,

1/25/24

..

1,264

1,256

991675457.UG.FTS.B,

22.47%,

1/25/24

..

95

96

991628803.UG.FTS.B,

25.44%,

1/25/24

..

137

137

991652053.UG.FTS.B,

26.44%,

1/25/24

..

80

80

991741033.UG.FTS.B,

26.44%,

1/25/24

..

279

278

991729257.UG.FTS.B,

27.99%,

1/25/24

..

197

199

991787523.UG.FTS.B,

27.99%,

1/25/24

..

63

18

991631472.UG.FTS.B,

28.48%,

1/25/24

..

139

143

991651856.UG.FTS.B,

28.48%,

1/25/24

..

223

223

991668456.UG.FTS.B,

28.48%,

1/25/24

..

79

81

991686175.UG.FTS.B,

28.48%,

1/25/24

..

109

112

991710726.UG.FTS.B,

28.48%,

1/25/24

..

105

108

991766143.UG.FTS.B,

28.48%,

1/25/24

..

260

264

991808037.UG.FTS.B,

28.48%,

1/25/24

..

129

130

991808857.UG.FTS.B,

28.48%,

1/25/24

..

120

122

991606137.UG.FTS.B,

29.48%,

1/25/24

..

63

65

991616807.UG.FTS.B,

29.48%,

1/25/24

..

123

126

991677136.UG.FTS.B,

29.48%,

1/25/24

..

56

57

991585669.UG.FTS.B,

29.49%,

1/25/24

..

215

214

991589305.UG.FTS.B,

29.49%,

1/25/24

..

168

169

991590828.UG.FTS.B,

29.49%,

1/25/24

..

177

182

991591385.UG.FTS.B,

29.49%,

1/25/24

..

31

31

991599013.UG.FTS.B,

29.49%,

1/25/24

..

129

132

991604373.UG.FTS.B,

29.49%,

1/25/24

..

134

138

991608552.UG.FTS.B,

29.49%,

1/25/24

..

58

58

991613759.UG.FTS.B,

29.49%,

1/25/24

..

29

30

991619556.UG.FTS.B,

29.49%,

1/25/24

..

61

63

991630323.UG.FTS.B,

29.49%,

1/25/24

..

97

98

991633345.UG.FTS.B,

29.49%,

1/25/24

..

200

206

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991633451.UG.FTS.B,

29.49%,

1/25/24

..

$

207

$

213

991633646.UG.FTS.B,

29.49%,

1/25/24

..

79

81

991641518.UG.FTS.B,

29.49%,

1/25/24

..

62

61

991644394.UG.FTS.B,

29.49%,

1/25/24

..

15

15

991644473.UG.FTS.B,

29.49%,

1/25/24

..

16

16

991649590.UG.FTS.B,

29.49%,

1/25/24

..

66

68

991651927.UG.FTS.B,

29.49%,

1/25/24

..

146

(5)

991654938.UG.FTS.B,

29.49%,

1/25/24

..

697

716

991656780.UG.FTS.B,

29.49%,

1/25/24

..

–

–

991663576.UG.FTS.B,

29.49%,

1/25/24

..

787

797

991671286.UG.FTS.B,

29.49%,

1/25/24

..

454

446

991674159.UG.FTS.B,

29.49%,

1/25/24

..

162

13

991679898.UG.FTS.B,

29.49%,

1/25/24

..

147

150

991679977.UG.FTS.B,

29.49%,

1/25/24

..

17

17

991686544.UG.FTS.B,

29.49%,

1/25/24

..

66

65

991686636.UG.FTS.B,

29.49%,

1/25/24

..

98

101

991700265.UG.FTS.B,

29.49%,

1/25/24

..

58

60

991700545.UG.FTS.B,

29.49%,

1/25/24

..

–

–

991700798.UG.FTS.B,

29.49%,

1/25/24

..

76

77

991701563.UG.FTS.B,

29.49%,

1/25/24

..

258

264

991706569.UG.FTS.B,

29.49%,

1/25/24

..

4

4

991714482.UG.FTS.B,

29.49%,

1/25/24

..

148

149

991720724.UG.FTS.B,

29.49%,

1/25/24

..

307

45

991721326.UG.FTS.B,

29.49%,

1/25/24

..

261

265

991726761.UG.FTS.B,

29.49%,

1/25/24

..

367

373

991729432.UG.FTS.B,

29.49%,

1/25/24

..

294

293

991731430.UG.FTS.B,

29.49%,

1/25/24

..

102

105

991732382.UG.FTS.B,

29.49%,

1/25/24

..

104

106

991742074.UG.FTS.B,

29.49%,

1/25/24

..

105

106

991742486.UG.FTS.B,

29.49%,

1/25/24

..

113

28

991749150.UG.FTS.B,

29.49%,

1/25/24

..

207

212

991751813.UG.FTS.B,

29.49%,

1/25/24

..

248

250

991751821.UG.FTS.B,

29.49%,

1/25/24

..

133

(5)

991758703.UG.FTS.B,

29.49%,

1/25/24

..

142

144

991761336.UG.FTS.B,

29.49%,

1/25/24

..

88

89

991766815.UG.FTS.B,

29.49%,

1/25/24

..

127

128

991769017.UG.FTS.B,

29.49%,

1/25/24

..

125

126

991769275.UG.FTS.B,

29.49%,

1/25/24

..

8

4

991771771.UG.FTS.B,

29.49%,

1/25/24

..

76

77

991771821.UG.FTS.B,

29.49%,

1/25/24

..

483

37

991783583.UG.FTS.B,

29.49%,

1/25/24

..

138

139

991786634.UG.FTS.B,

29.49%,

1/25/24

..

249

252

991786828.UG.FTS.B,

29.49%,

1/25/24

..

53

53

991791507.UG.FTS.B,

29.49%,

1/25/24

..

81

12

991795056.UG.FTS.B,

29.49%,

1/25/24

..

121

123

991803621.UG.FTS.B,

29.49%,

1/25/24

..

165

166

991806034.UG.FTS.B,

29.49%,

1/25/24

..

56

57

991808090.UG.FTS.B,

29.49%,

1/25/24

..

36

3

991814291.UG.FTS.B,

29.49%,

1/25/24

..

23

4

991816232.UG.FTS.B,

29.49%,

1/25/24

..

65

66

991817482.UG.FTS.B,

29.49%,

1/25/24

..

11

11

991819217.UG.FTS.B,

29.49%,

1/25/24

..

20

20

991820253.UG.FTS.B,

29.49%,

1/25/24

..

66

67

991823201.UG.FTS.B,

29.49%,

1/25/24

..

189

186

991828617.UG.FTS.B,

29.49%,

1/25/24

..

61

62

991831119.UG.FTS.B,

29.49%,

1/25/24

..

44

44

991686043.UG.FTS.B,

29.99%,

1/25/24

..

82

8

991693788.UG.FTS.B,

Zero

Cpn,

1/26/24

.

825

58

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991761224.UG.FTS.B,

Zero

Cpn,

1/26/24

.

$

50

$

4

991782500.UG.FTS.B,

Zero

Cpn,

1/26/24

.

56

4

991792014.UG.FTS.B,

Zero

Cpn,

1/26/24

.

49

3

991820058.UG.FTS.B,

Zero

Cpn,

1/26/24

.

119

8

991834987.UG.FTS.B,

Zero

Cpn,

1/26/24

.

254

18

991810154.UG.FTS.B,

15.47%,

1/26/24

..

287

289

991593609.UG.FTS.B,

16.49%,

1/26/24

..

126

127

991784174.UG.FTS.B,

16.49%,

1/26/24

..

174

176

991828622.UG.FTS.B,

16.49%,

1/26/24

..

144

145

991727853.UG.FTS.B,

18.47%,

1/26/24

..

16

16

991651717.UG.FTS.B,

19.3%,

1/26/24

...

533

539

991732138.UG.FTS.B,

19.3%,

1/26/24

...

18

18

991633662.UG.FTS.B,

19.96%,

1/26/24

..

90

90

991636818.UG.FTS.B,

19.96%,

1/26/24

..

62

62

991643141.UG.FTS.B,

19.96%,

1/26/24

..

542

539

991671753.UG.FTS.B,

19.96%,

1/26/24

..

165

167

991737882.UG.FTS.B,

19.96%,

1/26/24

..

24

24

991759419.UG.FTS.B,

19.96%,

1/26/24

..

109

109

991590508.UG.FTS.B,

19.99%,

1/26/24

..

88

90

991671345.UG.FTS.B,

19.99%,

1/26/24

..

270

274

991679320.UG.FTS.B,

21.48%,

1/26/24

..

168

169

991749734.UG.FTS.B,

21.48%,

1/26/24

..

68

68

991633594.UG.FTS.B,

24.45%,

1/26/24

..

11

12

991690882.UG.FTS.B,

25.45%,

1/26/24

..

136

(4)

991620819.UG.FTS.B,

28.48%,

1/26/24

..

35

35

991650272.UG.FTS.B,

28.48%,

1/26/24

..

77

79

991660260.UG.FTS.B,

28.48%,

1/26/24

..

396

404

991661075.UG.FTS.B,

28.48%,

1/26/24

..

488

497

991699559.UG.FTS.B,

28.48%,

1/26/24

..

128

129

991700697.UG.FTS.B,

28.48%,

1/26/24

..

116

118

991706943.UG.FTS.B,

28.48%,

1/26/24

..

242

243

991719423.UG.FTS.B,

28.48%,

1/26/24

..

275

279

991725862.UG.FTS.B,

28.48%,

1/26/24

..

121

17

991728173.UG.FTS.B,

28.48%,

1/26/24

..

75

77

991737277.UG.FTS.B,

28.48%,

1/26/24

..

121

9

991740916.UG.FTS.B,

28.48%,

1/26/24

..

382

55

991742866.UG.FTS.B,

28.48%,

1/26/24

..

60

(2)

991795847.UG.FTS.B,

28.48%,

1/26/24

..

28

29

991801021.UG.FTS.B,

28.48%,

1/26/24

..

102

104

991826702.UG.FTS.B,

28.48%,

1/26/24

..

187

191

991834361.UG.FTS.B,

28.48%,

1/26/24

..

82

83

991651287.UG.FTS.B,

29.46%,

1/26/24

..

–

–

991620639.UG.FTS.B,

29.48%,

1/26/24

..

599

86

991681325.UG.FTS.B,

29.48%,

1/26/24

..

46

47

991717920.UG.FTS.B,

29.48%,

1/26/24

..

849

872

991731025.UG.FTS.B,

29.48%,

1/26/24

..

–

–

991775037.UG.FTS.B,

29.48%,

1/26/24

..

43

44

991589333.UG.FTS.B,

29.49%,

1/26/24

..

102

104

991591784.UG.FTS.B,

29.49%,

1/26/24

..

1,161

327

991592956.UG.FTS.B,

29.49%,

1/26/24

..

73

75

991595654.UG.FTS.B,

29.49%,

1/26/24

..

63

64

991598750.UG.FTS.B,

29.49%,

1/26/24

..

330

327

991599536.UG.FTS.B,

29.49%,

1/26/24

..

453

465

991606139.UG.FTS.B,

29.49%,

1/26/24

..

160

159

991618299.UG.FTS.B,

29.49%,

1/26/24

..

138

141

991622450.UG.FTS.B,

29.49%,

1/26/24

..

48

49

991629683.UG.FTS.B,

29.49%,

1/26/24

..

246

253

991633238.UG.FTS.B,

29.49%,

1/26/24

..

–

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991633373.UG.FTS.B,

29.49%,

1/26/24

..

$

306

$

310

991633572.UG.FTS.B,

29.49%,

1/26/24

..

71

73

991633631.UG.FTS.B,

29.49%,

1/26/24

..

88

89

991636176.UG.FTS.B,

29.49%,

1/26/24

..

350

343

991636182.UG.FTS.B,

29.49%,

1/26/24

..

254

252

991638287.UG.FTS.B,

29.49%,

1/26/24

..

154

157

991640279.UG.FTS.B,

29.49%,

1/26/24

..

39

14

991640433.UG.FTS.B,

29.49%,

1/26/24

..

53

54

991642017.UG.FTS.B,

29.49%,

1/26/24

..

83

84

991642061.UG.FTS.B,

29.49%,

1/26/24

..

128

131

991648245.UG.FTS.B,

29.49%,

1/26/24

..

143

146

991649659.UG.FTS.B,

29.49%,

1/26/24

..

118

119

991650388.UG.FTS.B,

29.49%,

1/26/24

..

39

40

991654092.UG.FTS.B,

29.49%,

1/26/24

..

76

63

991655891.UG.FTS.B,

29.49%,

1/26/24

..

58

9

991656430.UG.FTS.B,

29.49%,

1/26/24

..

1,395

1,432

991658296.UG.FTS.B,

29.49%,

1/26/24

..

243

249

991664323.UG.FTS.B,

29.49%,

1/26/24

..

16

16

991666721.UG.FTS.B,

29.49%,

1/26/24

..

334

111

991668513.UG.FTS.B,

29.49%,

1/26/24

..

65

66

991676577.UG.FTS.B,

29.49%,

1/26/24

..

1,276

1,274

991683106.UG.FTS.B,

29.49%,

1/26/24

..

188

192

991692922.UG.FTS.B,

29.49%,

1/26/24

..

490

500

991694879.UG.FTS.B,

29.49%,

1/26/24

..

33

34

991698192.UG.FTS.B,

29.49%,

1/26/24

..

88

90

991700118.UG.FTS.B,

29.49%,

1/26/24

..

21

21

991713721.UG.FTS.B,

29.49%,

1/26/24

..

108

111

991724129.UG.FTS.B,

29.49%,

1/26/24

..

27

27

991725699.UG.FTS.B,

29.49%,

1/26/24

..

656

662

991739566.UG.FTS.B,

29.49%,

1/26/24

..

761

776

991744088.UG.FTS.B,

29.49%,

1/26/24

..

64

65

991752959.UG.FTS.B,

29.49%,

1/26/24

..

78

80

991764433.UG.FTS.B,

29.49%,

1/26/24

..

79

80

991781162.UG.FTS.B,

29.49%,

1/26/24

..

108

109

991783352.UG.FTS.B,

29.49%,

1/26/24

..

14

14

991783361.UG.FTS.B,

29.49%,

1/26/24

..

138

140

991784306.UG.FTS.B,

29.49%,

1/26/24

..

62

63

991785847.UG.FTS.B,

29.49%,

1/26/24

..

13

1

991786723.UG.FTS.B,

29.49%,

1/26/24

..

119

121

991787533.UG.FTS.B,

29.49%,

1/26/24

..

69

70

991789983.UG.FTS.B,

29.49%,

1/26/24

..

29

29

991795277.UG.FTS.B,

29.49%,

1/26/24

..

73

74

991798511.UG.FTS.B,

29.49%,

1/26/24

..

31

32

991798804.UG.FTS.B,

29.49%,

1/26/24

..

66

67

991799361.UG.FTS.B,

29.49%,

1/26/24

..

35

35

991800458.UG.FTS.B,

29.49%,

1/26/24

..

53

54

991809910.UG.FTS.B,

29.49%,

1/26/24

..

263

(9)

991810101.UG.FTS.B,

29.49%,

1/26/24

..

4

4

991816323.UG.FTS.B,

29.49%,

1/26/24

..

70

70

991816344.UG.FTS.B,

29.49%,

1/26/24

..

16

16

991819010.UG.FTS.B,

29.49%,

1/26/24

..

106

107

991821437.UG.FTS.B,

29.49%,

1/26/24

..

188

27

991823297.UG.FTS.B,

29.49%,

1/26/24

..

58

58

991828909.UG.FTS.B,

29.49%,

1/26/24

..

37

38

991836284.UG.FTS.B,

29.49%,

1/26/24

..

549

557

991836489.UG.FTS.B,

29.49%,

1/26/24

..

207

31

991595105.UG.FTS.B,

Zero

Cpn,

1/27/24

.

382

26

991596137.UG.FTS.B,

Zero

Cpn,

1/27/24

.

84

6

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

105

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991616667.UG.FTS.B,

Zero

Cpn,

1/27/24

.

$

78

$

6

991616968.UG.FTS.B,

Zero

Cpn,

1/27/24

.

35

3

991624123.UG.FTS.B,

Zero

Cpn,

1/27/24

.

99

7

991659976.UG.FTS.B,

Zero

Cpn,

1/27/24

.

200

14

991691365.UG.FTS.B,

Zero

Cpn,

1/27/24

.

733

51

991842241.UG.FTS.B,

15.47%,

1/27/24

..

61

62

991706691.UG.FTS.B,

17.49%,

1/27/24

..

139

140

991606775.UG.FTS.B,

18.47%,

1/27/24

..

589

443

991601696.UG.FTS.B,

18.71%,

1/27/24

..

90

90

991697130.UG.FTS.B,

19.3%,

1/27/24

...

132

132

991609765.UG.FTS.B,

27.99%,

1/27/24

..

227

233

991601477.UG.FTS.B,

28.48%,

1/27/24

..

63

65

991621935.UG.FTS.B,

28.48%,

1/27/24

..

114

115

991626927.UG.FTS.B,

28.48%,

1/27/24

..

55

56

991633792.UG.FTS.B,

28.48%,

1/27/24

..

306

307

991638924.UG.FTS.B,

28.48%,

1/27/24

..

41

41

991661576.UG.FTS.B,

28.48%,

1/27/24

..

154

157

991664071.UG.FTS.B,

28.48%,

1/27/24

..

303

311

991673408.UG.FTS.B,

28.48%,

1/27/24

..

–

–

991686984.UG.FTS.B,

28.48%,

1/27/24

..

168

170

991694419.UG.FTS.B,

28.48%,

1/27/24

..

8

8

991698388.UG.FTS.B,

28.48%,

1/27/24

..

75

77

991711799.UG.FTS.B,

28.48%,

1/27/24

..

193

196

991712181.UG.FTS.B,

28.48%,

1/27/24

..

7

–

991723489.UG.FTS.B,

28.48%,

1/27/24

..

154

156

991728658.UG.FTS.B,

28.48%,

1/27/24

..

145

149

991741153.UG.FTS.B,

28.48%,

1/27/24

..

518

532

991782222.UG.FTS.B,

28.48%,

1/27/24

..

28

28

991801395.UG.FTS.B,

28.48%,

1/27/24

..

150

151

991605017.UG.FTS.B,

29.48%,

1/27/24

..

63

63

991611712.UG.FTS.B,

29.48%,

1/27/24

..

111

9

991614264.UG.FTS.B,

29.48%,

1/27/24

..

154

154

991624670.UG.FTS.B,

29.48%,

1/27/24

..

120

123

991629975.UG.FTS.B,

29.48%,

1/27/24

..

77

58

991638057.UG.FTS.B,

29.48%,

1/27/24

..

48

49

991659454.UG.FTS.B,

29.48%,

1/27/24

..

13

13

991699163.UG.FTS.B,

29.48%,

1/27/24

..

329

337

991775532.UG.FTS.B,

29.48%,

1/27/24

..

241

245

991783452.UG.FTS.B,

29.48%,

1/27/24

..

75

11

991783483.UG.FTS.B,

29.48%,

1/27/24

..

221

220

991594915.UG.FTS.B,

29.49%,

1/27/24

..

106

109

991595329.UG.FTS.B,

29.49%,

1/27/24

..

20

19

991595594.UG.FTS.B,

29.49%,

1/27/24

..

193

196

991595863.UG.FTS.B,

29.49%,

1/27/24

..

342

347

991596029.UG.FTS.B,

29.49%,

1/27/24

..

749

114

991596373.UG.FTS.B,

29.49%,

1/27/24

..

124

127

991598172.UG.FTS.B,

29.49%,

1/27/24

..

69

10

991598421.UG.FTS.B,

29.49%,

1/27/24

..

73

75

991599198.UG.FTS.B,

29.49%,

1/27/24

..

648

52

991599797.UG.FTS.B,

29.49%,

1/27/24

..

128

130

991601187.UG.FTS.B,

29.49%,

1/27/24

..

1,627

133

991602939.UG.FTS.B,

29.49%,

1/27/24

..

102

105

991602960.UG.FTS.B,

29.49%,

1/27/24

..

101

104

991604657.UG.FTS.B,

29.49%,

1/27/24

..

23

23

991604986.UG.FTS.B,

29.49%,

1/27/24

..

69

71

991605049.UG.FTS.B,

29.49%,

1/27/24

..

104

107

991605352.UG.FTS.B,

29.49%,

1/27/24

..

281

279

991605361.UG.FTS.B,

29.49%,

1/27/24

..

70

72

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991608430.UG.FTS.B,

29.49%,

1/27/24

..

$

–

$

–

991608728.UG.FTS.B,

29.49%,

1/27/24

..

12

12

991609433.UG.FTS.B,

29.49%,

1/27/24

..

30

30

991610027.UG.FTS.B,

29.49%,

1/27/24

..

70

72

991610884.UG.FTS.B,

29.49%,

1/27/24

..

74

75

991612751.UG.FTS.B,

29.49%,

1/27/24

..

268

275

991613209.UG.FTS.B,

29.49%,

1/27/24

..

14

14

991616984.UG.FTS.B,

29.49%,

1/27/24

..

48

49

991621060.UG.FTS.B,

29.49%,

1/27/24

..

14

15

991621387.UG.FTS.B,

29.49%,

1/27/24

..

96

99

991621529.UG.FTS.B,

29.49%,

1/27/24

..

28

2

991627130.UG.FTS.B,

29.49%,

1/27/24

..

283

291

991628054.UG.FTS.B,

29.49%,

1/27/24

..

9

9

991630132.UG.FTS.B,

29.49%,

1/27/24

..

84

13

991630928.UG.FTS.B,

29.49%,

1/27/24

..

78

61

991630940.UG.FTS.B,

29.49%,

1/27/24

..

79

79

991634012.UG.FTS.B,

29.49%,

1/27/24

..

74

75

991637485.UG.FTS.B,

29.49%,

1/27/24

..

60

61

991641800.UG.FTS.B,

29.49%,

1/27/24

..

31

32

991645179.UG.FTS.B,

29.49%,

1/27/24

..

119

10

991646296.UG.FTS.B,

29.49%,

1/27/24

..

128

129

991648501.UG.FTS.B,

29.49%,

1/27/24

..

40

41

991649457.UG.FTS.B,

29.49%,

1/27/24

..

91

92

991649973.UG.FTS.B,

29.49%,

1/27/24

..

123

127

991651122.UG.FTS.B,

29.49%,

1/27/24

..

153

154

991653265.UG.FTS.B,

29.49%,

1/27/24

..

1,363

1,400

991653611.UG.FTS.B,

29.49%,

1/27/24

..

47

40

991656551.UG.FTS.B,

29.49%,

1/27/24

..

349

359

991658001.UG.FTS.B,

29.49%,

1/27/24

..

279

287

991659877.UG.FTS.B,

29.49%,

1/27/24

..

27

27

991662634.UG.FTS.B,

29.49%,

1/27/24

..

226

233

991664036.UG.FTS.B,

29.49%,

1/27/24

..

224

226

991668164.UG.FTS.B,

29.49%,

1/27/24

..

26

26

991670004.UG.FTS.B,

29.49%,

1/27/24

..

477

72

991670151.UG.FTS.B,

29.49%,

1/27/24

..

457

467

991671543.UG.FTS.B,

29.49%,

1/27/24

..

190

15

991674709.UG.FTS.B,

29.49%,

1/27/24

..

221

222

991675889.UG.FTS.B,

29.49%,

1/27/24

..

118

121

991676459.UG.FTS.B,

29.49%,

1/27/24

..

112

113

991680326.UG.FTS.B,

29.49%,

1/27/24

..

508

522

991680852.UG.FTS.B,

29.49%,

1/27/24

..

82

7

991681757.UG.FTS.B,

29.49%,

1/27/24

..

22

23

991682200.UG.FTS.B,

29.49%,

1/27/24

..

174

179

991683102.UG.FTS.B,

29.49%,

1/27/24

..

125

128

991685436.UG.FTS.B,

29.49%,

1/27/24

..

22

22

991687929.UG.FTS.B,

29.49%,

1/27/24

..

124

126

991688013.UG.FTS.B,

29.49%,

1/27/24

..

33

(1)

991688029.UG.FTS.B,

29.49%,

1/27/24

..

302

310

991688831.UG.FTS.B,

29.49%,

1/27/24

..

25

25

991691583.UG.FTS.B,

29.49%,

1/27/24

..

174

179

991692773.UG.FTS.B,

29.49%,

1/27/24

..

4

4

991693486.UG.FTS.B,

29.49%,

1/27/24

..

81

83

991695109.UG.FTS.B,

29.49%,

1/27/24

..

53

54

991695966.UG.FTS.B,

29.49%,

1/27/24

..

331

324

991698229.UG.FTS.B,

29.49%,

1/27/24

..

102

104

991700069.UG.FTS.B,

29.49%,

1/27/24

..

1

1

991701338.UG.FTS.B,

29.49%,

1/27/24

..

80

80

991704857.UG.FTS.B,

29.49%,

1/27/24

..

332

341

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991711124.UG.FTS.B,

29.49%,

1/27/24

..

$

87

$

89

991715767.UG.FTS.B,

29.49%,

1/27/24

..

117

120

991717234.UG.FTS.B,

29.49%,

1/27/24

..

145

148

991718168.UG.FTS.B,

29.49%,

1/27/24

..

33

33

991718270.UG.FTS.B,

29.49%,

1/27/24

..

11

12

991720808.UG.FTS.B,

29.49%,

1/27/24

..

258

265

991725524.UG.FTS.B,

29.49%,

1/27/24

..

13

13

991727581.UG.FTS.B,

29.49%,

1/27/24

..

61

9

991738263.UG.FTS.B,

29.49%,

1/27/24

..

23

23

991739164.UG.FTS.B,

29.49%,

1/27/24

..

695

711

991739656.UG.FTS.B,

29.49%,

1/27/24

..

761

776

991740040.UG.FTS.B,

29.49%,

1/27/24

..

544

559

991741014.UG.FTS.B,

29.49%,

1/27/24

..

346

356

991742873.UG.FTS.B,

29.49%,

1/27/24

..

30

30

991748403.UG.FTS.B,

29.49%,

1/27/24

..

87

89

991750772.UG.FTS.B,

29.49%,

1/27/24

..

144

146

991763575.UG.FTS.B,

29.49%,

1/27/24

..

92

93

991766023.UG.FTS.B,

29.49%,

1/27/24

..

88

90

991766758.UG.FTS.B,

29.49%,

1/27/24

..

–

–

991769140.UG.FTS.B,

29.49%,

1/27/24

..

101

102

991773350.UG.FTS.B,

29.49%,

1/27/24

..

471

473

991773994.UG.FTS.B,

29.49%,

1/27/24

..

92

93

991791557.UG.FTS.B,

29.49%,

1/27/24

..

74

75

991792738.UG.FTS.B,

29.49%,

1/27/24

..

69

70

991793121.UG.FTS.B,

29.49%,

1/27/24

..

138

140

991800070.UG.FTS.B,

29.49%,

1/27/24

..

37

38

991800781.UG.FTS.B,

29.49%,

1/27/24

..

16

17

991801330.UG.FTS.B,

29.49%,

1/27/24

..

103

105

991802537.UG.FTS.B,

29.49%,

1/27/24

..

50

51

991803320.UG.FTS.B,

29.49%,

1/27/24

..

75

6

991803812.UG.FTS.B,

29.49%,

1/27/24

..

47

48

991807698.UG.FTS.B,

29.49%,

1/27/24

..

93

94

991809457.UG.FTS.B,

29.49%,

1/27/24

..

494

502

991811048.UG.FTS.B,

29.49%,

1/27/24

..

171

173

991815602.UG.FTS.B,

29.49%,

1/27/24

..

84

85

991821267.UG.FTS.B,

29.49%,

1/27/24

..

31

32

991828639.UG.FTS.B,

29.49%,

1/27/24

..

3

3

991831813.UG.FTS.B,

29.49%,

1/27/24

..

74

75

991617189.UG.FTS.B,

16.49%,

1/28/24

..

94

95

991791227.UG.FTS.B,

16.49%,

1/28/24

..

80

3

991604496.UG.FTS.B,

17.49%,

1/28/24

..

80

81

991605888.UG.FTS.B,

17.49%,

1/28/24

..

288

3

991681664.UG.FTS.B,

15.47%,

1/29/24

..

118

120

991827557.UG.FTS.B,

15.47%,

1/29/24

..

201

203

991638160.UG.FTS.B,

19.96%,

1/29/24

..

232

235

991851931.UG.FTS.B,

15.47%,

1/30/24

..

289

292

991677257.UG.FTS.B,

17.49%,

1/30/24

..

75

77

991754447.UG.FTS.B,

17.49%,

1/30/24

..

271

275

991633973.UG.FTS.B,

19.3%,

1/30/24

...

126

127

991632138.UG.FTS.B,

19.96%,

1/30/24

..

177

40

991695974.UG.FTS.B,

21.47%,

1/30/24

..

211

211

991688841.UG.FTS.B,

22.47%,

1/30/24

..

287

290

991668213.UG.FTS.B,

24.45%,

1/30/24

..

95

96

991800664.UG.FTS.B,

14.48%,

1/31/24

..

15

15

991692740.UG.FTS.B,

15.47%,

1/31/24

..

328

333

991857512.UG.FTS.B,

15.47%,

1/31/24

..

10

11

991820637.UG.FTS.B,

15.49%,

1/31/24

..

2

2

991631266.UG.FTS.B,

16.49%,

1/31/24

..

599

608

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991635849.UG.FTS.B,

16.49%,

1/31/24

..

$

136

$

138

991642956.UG.FTS.B,

16.49%,

1/31/24

..

131

133

991658433.UG.FTS.B,

16.49%,

1/31/24

..

617

626

991677334.UG.FTS.B,

16.49%,

1/31/24

..

389

395

991705318.UG.FTS.B,

16.49%,

1/31/24

..

65

66

991741610.UG.FTS.B,

16.49%,

1/31/24

..

9

9

991747537.UG.FTS.B,

17.47%,

1/31/24

..

120

121

991759068.UG.FTS.B,

17.47%,

1/31/24

..

2,554

214

991637676.UG.FTS.B,

17.49%,

1/31/24

..

93

94

991637719.UG.FTS.B,

17.49%,

1/31/24

..

90

91

991639187.UG.FTS.B,

17.49%,

1/31/24

..

280

68

991642846.UG.FTS.B,

17.49%,

1/31/24

..

77

79

991654338.UG.FTS.B,

17.49%,

1/31/24

..

6

6

991748407.UG.FTS.B,

17.49%,

1/31/24

..

–

–

991780300.UG.FTS.B,

17.49%,

1/31/24

..

156

158

991835711.UG.FTS.B,

17.49%,

1/31/24

..

531

537

991856913.UG.FTS.B,

17.49%,

1/31/24

..

19

19

991869281.UG.FTS.B,

17.49%,

1/31/24

..

212

214

991798159.UG.FTS.B,

17.71%,

1/31/24

..

17

17

991655263.UG.FTS.B,

18.47%,

1/31/24

..

505

36

991676080.UG.FTS.B,

18.47%,

1/31/24

..

14

14

991661216.UG.FTS.B,

19.3%,

1/31/24

...

272

274

991686127.UG.FTS.B,

19.3%,

1/31/24

...

154

155

991687417.UG.FTS.B,

19.3%,

1/31/24

...

161

163

991628348.UG.FTS.B,

19.96%,

1/31/24

..

200

203

991642331.UG.FTS.B,

19.96%,

1/31/24

..

50

50

991651260.UG.FTS.B,

19.96%,

1/31/24

..

39

40

991672930.UG.FTS.B,

19.96%,

1/31/24

..

77

78

991681323.UG.FTS.B,

19.96%,

1/31/24

..

125

127

991710638.UG.FTS.B,

19.96%,

1/31/24

..

102

19

991713238.UG.FTS.B,

19.96%,

1/31/24

..

47

47

991650296.UG.FTS.B,

20.47%,

1/31/24

..

585

592

991668477.UG.FTS.B,

20.47%,

1/31/24

..

19

19

991702014.UG.FTS.B,

20.47%,

1/31/24

..

75

75

991653552.UG.FTS.B,

21.48%,

1/31/24

..

69

69

991696310.UG.FTS.B,

21.48%,

1/31/24

..

52

52

991705966.UG.FTS.B,

21.48%,

1/31/24

..

105

106

991643834.UG.FTS.B,

22.45%,

1/31/24

..

83

84

991707815.UG.FTS.B,

22.47%,

1/31/24

..

38

39

991710192.UG.FTS.B,

22.47%,

1/31/24

..

39

39

991678923.UG.FTS.B,

23.45%,

1/31/24

..

374

373

991633530.UG.FTS.B,

25.45%,

1/31/24

..

93

(1)

991708387.UG.FTS.B,

Zero

Cpn,

2/01/24

.

145

10

991726930.UG.FTS.B,

15%,

2/01/24

.....

90

90

991764182.UG.FTS.B,

15.47%,

2/01/24

..

242

244

991713586.UG.FTS.B,

16.49%,

2/01/24

..

245

14

991724946.UG.FTS.B,

16.49%,

2/01/24

..

1,405

1,417

991807161.UG.FTS.B,

16.49%,

2/01/24

..

97

97

991668233.UG.FTS.B,

17.49%,

2/01/24

..

73

74

991669770.UG.FTS.B,

17.49%,

2/01/24

..

931

938

991677316.UG.FTS.B,

17.49%,

2/01/24

..

134

134

991721077.UG.FTS.B,

17.49%,

2/01/24

..

177

178

991785085.UG.FTS.B,

17.49%,

2/01/24

..

75

75

991869528.UG.FTS.B,

17.49%,

2/01/24

..

88

88

991667665.UG.FTS.B,

14.47%,

2/02/24

..

962

112

991678784.UG.FTS.B,

14.48%,

2/02/24

..

7

7

991722113.UG.FTS.B,

15.49%,

2/02/24

..

352

355

991668499.UG.FTS.B,

16.49%,

2/02/24

..

159

158

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

107

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991684166.UG.FTS.B,

16.49%,

2/02/24

..

$

77

$

78

991682132.UG.FTS.B,

17.47%,

2/02/24

..

142

143

991688897.UG.FTS.B,

17.49%,

2/02/24

..

413

415

991733262.UG.FTS.B,

17.49%,

2/02/24

..

130

131

991734120.UG.FTS.B,

17.49%,

2/02/24

..

155

156

991656661.UG.FTS.B,

17.71%,

2/02/24

..

1,122

277

991711117.UG.FTS.B,

Zero

Cpn,

2/03/24

.

228

16

991741241.UG.FTS.B,

Zero

Cpn,

2/03/24

.

105

7

991910992.UG.FTS.B,

Zero

Cpn,

2/03/24

.

35

3

991681257.UG.FTS.B,

17.49%,

2/03/24

..

114

114

991865832.UG.FTS.B,

17.49%,

2/03/24

..

45

44

991729281.UG.FTS.B,

18.71%,

2/03/24

..

517

117

991695999.UG.FTS.B,

19.96%,

2/03/24

..

552

555

991693730.UG.FTS.B,

19.99%,

2/03/24

..

208

211

991695190.UG.FTS.B,

22.47%,

2/03/24

..

289

289

991891498.UG.FTS.B,

22.47%,

2/03/24

..

76

76

991693378.UG.FTS.B,

23.44%,

2/03/24

..

133

133

991702806.UG.FTS.B,

23.45%,

2/03/24

..

314

309

991912006.UG.FTS.B,

27.99%,

2/03/24

..

100

100

991680261.UG.FTS.B,

28.48%,

2/03/24

..

246

246

991690009.UG.FTS.B,

28.48%,

2/03/24

..

263

267

991901928.UG.FTS.B,

28.48%,

2/03/24

..

43

43

991904640.UG.FTS.B,

28.48%,

2/03/24

..

176

177

991910482.UG.FTS.B,

28.48%,

2/03/24

..

6

6

991704230.UG.FTS.B,

29.48%,

2/03/24

..

293

298

991705815.UG.FTS.B,

29.48%,

2/03/24

..

299

302

991900344.UG.FTS.B,

29.48%,

2/03/24

..

27

27

991659972.UG.FTS.B,

29.49%,

2/03/24

..

739

721

991678302.UG.FTS.B,

29.49%,

2/03/24

..

61

60

991680860.UG.FTS.B,

29.49%,

2/03/24

..

13

13

991687586.UG.FTS.B,

29.49%,

2/03/24

..

89

91

991689928.UG.FTS.B,

29.49%,

2/03/24

..

88

89

991693809.UG.FTS.B,

29.49%,

2/03/24

..

87

70

991702908.UG.FTS.B,

29.49%,

2/03/24

..

125

(6)

991705235.UG.FTS.B,

29.49%,

2/03/24

..

7

7

991713394.UG.FTS.B,

29.49%,

2/03/24

..

158

160

991714413.UG.FTS.B,

29.49%,

2/03/24

..

32

32

991723826.UG.FTS.B,

29.49%,

2/03/24

..

30

30

991726593.UG.FTS.B,

29.49%,

2/03/24

..

45

45

991733227.UG.FTS.B,

29.49%,

2/03/24

..

958

972

991738598.UG.FTS.B,

29.49%,

2/03/24

..

44

(2)

991763674.UG.FTS.B,

29.49%,

2/03/24

..

32

32

991778703.UG.FTS.B,

29.49%,

2/03/24

..

107

105

991785226.UG.FTS.B,

29.49%,

2/03/24

..

110

108

991795299.UG.FTS.B,

29.49%,

2/03/24

..

192

193

991815788.UG.FTS.B,

29.49%,

2/03/24

..

100

100

991830693.UG.FTS.B,

29.49%,

2/03/24

..

–

–

991836116.UG.FTS.B,

29.49%,

2/03/24

..

367

48

991861447.UG.FTS.B,

29.49%,

2/03/24

..

64

65

991909011.UG.FTS.B,

29.49%,

2/03/24

..

2

–

991909246.UG.FTS.B,

29.49%,

2/03/24

..

215

215

991919081.UG.FTS.B,

Zero

Cpn,

2/04/24

.

30

2

991844970.UG.FTS.B,

15%,

2/04/24

.....

961

969

991776059.UG.FTS.B,

15.47%,

2/04/24

..

69

70

991854905.UG.FTS.B,

15.47%,

2/04/24

..

280

283

991686911.UG.FTS.B,

18.47%,

2/04/24

..

82

83

991685554.UG.FTS.B,

18.71%,

2/04/24

..

90

91

991768122.UG.FTS.B,

22.47%,

2/04/24

..

45

45

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991726743.UG.FTS.B,

23.45%,

2/04/24

..

$

46

$

46

991856429.UG.FTS.B,

27.99%,

2/04/24

..

152

36

991702673.UG.FTS.B,

28.48%,

2/04/24

..

129

130

991742407.UG.FTS.B,

28.48%,

2/04/24

..

158

159

991875683.UG.FTS.B,

28.48%,

2/04/24

..

111

112

991924972.UG.FTS.B,

28.48%,

2/04/24

..

4

2

991688068.UG.FTS.B,

29.48%,

2/04/24

..

348

46

991711305.UG.FTS.B,

29.48%,

2/04/24

..

118

120

991737606.UG.FTS.B,

29.48%,

2/04/24

..

168

170

991842330.UG.FTS.B,

29.48%,

2/04/24

..

153

(1)

991892456.UG.FTS.B,

29.48%,

2/04/24

..

17

17

991700800.UG.FTS.B,

29.49%,

2/04/24

..

366

89

991700803.UG.FTS.B,

29.49%,

2/04/24

..

154

(8)

991700847.UG.FTS.B,

29.49%,

2/04/24

..

1,060

(51)

991702984.UG.FTS.B,

29.49%,

2/04/24

..

89

89

991706472.UG.FTS.B,

29.49%,

2/04/24

..

67

67

991715507.UG.FTS.B,

29.49%,

2/04/24

..

35

35

991726705.UG.FTS.B,

29.49%,

2/04/24

..

64

63

991728226.UG.FTS.B,

29.49%,

2/04/24

..

1,399

1,416

991741875.UG.FTS.B,

29.49%,

2/04/24

..

205

207

991756664.UG.FTS.B,

29.49%,

2/04/24

..

124

125

991764301.UG.FTS.B,

29.49%,

2/04/24

..

92

92

991788801.UG.FTS.B,

29.49%,

2/04/24

..

144

145

991790411.UG.FTS.B,

29.49%,

2/04/24

..

61

60

991796108.UG.FTS.B,

29.49%,

2/04/24

..

38

38

991804405.UG.FTS.B,

29.49%,

2/04/24

..

86

86

991813259.UG.FTS.B,

29.49%,

2/04/24

..

518

526

991829699.UG.FTS.B,

29.49%,

2/04/24

..

49

49

991858925.UG.FTS.B,

29.49%,

2/04/24

..

186

24

991880139.UG.FTS.B,

29.49%,

2/04/24

..

98

98

991883553.UG.FTS.B,

29.49%,

2/04/24

..

1

1

991888221.UG.FTS.B,

29.49%,

2/04/24

..

14

14

991894355.UG.FTS.B,

29.49%,

2/04/24

..

123

124

991902885.UG.FTS.B,

29.49%,

2/04/24

..

–

–

991909049.UG.FTS.B,

29.49%,

2/04/24

..

74

74

991910876.UG.FTS.B,

29.49%,

2/04/24

..

381

104

991911528.UG.FTS.B,

29.49%,

2/04/24

..

247

247

991911662.UG.FTS.B,

29.49%,

2/04/24

..

17

8

991912074.UG.FTS.B,

29.49%,

2/04/24

..

32

32

991917056.UG.FTS.B,

29.49%,

2/04/24

..

296

295

991919941.UG.FTS.B,

29.49%,

2/04/24

..

5

5

991921603.UG.FTS.B,

29.49%,

2/04/24

..

27

27

991922017.UG.FTS.B,

29.49%,

2/04/24

..

2

2

991695845.UG.FTS.B,

Zero

Cpn,

2/05/24

.

(4)

(4)

991729824.UG.FTS.B,

Zero

Cpn,

2/05/24

.

277

19

991719169.UG.FTS.B,

18.71%,

2/05/24

..

95

15

991772760.UG.FTS.B,

18.71%,

2/05/24

..

278

19

991711452.UG.FTS.B,

19.96%,

2/05/24

..

154

155

991876008.UG.FTS.B,

19.96%,

2/05/24

..

24

23

991693126.UG.FTS.B,

19.99%,

2/05/24

..

98

100

991768477.UG.FTS.B,

19.99%,

2/05/24

..

26

26

991815229.UG.FTS.B,

19.99%,

2/05/24

..

36

36

991818135.UG.FTS.B,

19.99%,

2/05/24

..

20

20

991910371.UG.FTS.B,

19.99%,

2/05/24

..

2

2

991896939.UG.FTS.B,

20.47%,

2/05/24

..

673

671

991779478.UG.FTS.B,

21.48%,

2/05/24

..

296

297

991827138.UG.FTS.B,

21.48%,

2/05/24

..

79

79

991854090.UG.FTS.B,

21.48%,

2/05/24

..

164

165

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991776899.UG.FTS.B,

22.47%,

2/05/24

..

$

76

$

77

991698945.UG.FTS.B,

23.45%,

2/05/24

..

195

195

991725398.UG.FTS.B,

23.45%,

2/05/24

..

62

62

991938019.UG.FTS.B,

23.45%,

2/05/24

..

143

142

991700243.UG.FTS.B,

25.45%,

2/05/24

..

165

42

991866679.UG.FTS.B,

26.44%,

2/05/24

..

76

75

991679881.UG.FTS.B,

28.48%,

2/05/24

..

–

–

991697533.UG.FTS.B,

28.48%,

2/05/24

..

12

12

991712635.UG.FTS.B,

28.48%,

2/05/24

..

276

278

991735405.UG.FTS.B,

28.48%,

2/05/24

..

39

39

991738161.UG.FTS.B,

28.48%,

2/05/24

..

197

200

991739512.UG.FTS.B,

28.48%,

2/05/24

..

114

115

991744316.UG.FTS.B,

28.48%,

2/05/24

..

203

206

991751198.UG.FTS.B,

28.48%,

2/05/24

..

253

257

991756677.UG.FTS.B,

28.48%,

2/05/24

..

–

–

991756833.UG.FTS.B,

28.48%,

2/05/24

..

61

62

991766340.UG.FTS.B,

28.48%,

2/05/24

..

469

478

991773527.UG.FTS.B,

28.48%,

2/05/24

..

11

10

991780618.UG.FTS.B,

28.48%,

2/05/24

..

79

80

991783723.UG.FTS.B,

28.48%,

2/05/24

..

90

(4)

991785400.UG.FTS.B,

28.48%,

2/05/24

..

99

100

991818664.UG.FTS.B,

28.48%,

2/05/24

..

825

825

991819563.UG.FTS.B,

28.48%,

2/05/24

..

76

77

991829882.UG.FTS.B,

28.48%,

2/05/24

..

14

14

991835745.UG.FTS.B,

28.48%,

2/05/24

..

128

129

991837209.UG.FTS.B,

28.48%,

2/05/24

..

79

11

991845532.UG.FTS.B,

28.48%,

2/05/24

..

286

127

991852618.UG.FTS.B,

28.48%,

2/05/24

..

66

66

991874473.UG.FTS.B,

28.48%,

2/05/24

..

34

34

991886671.UG.FTS.B,

28.48%,

2/05/24

..

46

46

991898117.UG.FTS.B,

28.48%,

2/05/24

..

123

124

991901004.UG.FTS.B,

28.48%,

2/05/24

..

77

5

991916369.UG.FTS.B,

28.48%,

2/05/24

..

143

144

991919905.UG.FTS.B,

28.48%,

2/05/24

..

515

144

991805200.UG.FTS.B,

29.46%,

2/05/24

..

91

92

991697955.UG.FTS.B,

29.48%,

2/05/24

..

331

335

991700432.UG.FTS.B,

29.48%,

2/05/24

..

26

26

991701867.UG.FTS.B,

29.48%,

2/05/24

..

70

71

991702648.UG.FTS.B,

29.48%,

2/05/24

..

19

19

991714933.UG.FTS.B,

29.48%,

2/05/24

..

97

98

991716572.UG.FTS.B,

29.48%,

2/05/24

..

71

72

991725591.UG.FTS.B,

29.48%,

2/05/24

..

–

–

991733077.UG.FTS.B,

29.48%,

2/05/24

..

29

(1)

991747028.UG.FTS.B,

29.48%,

2/05/24

..

–

–

991755146.UG.FTS.B,

29.48%,

2/05/24

..

173

176

991768220.UG.FTS.B,

29.48%,

2/05/24

..

27

27

991779730.UG.FTS.B,

29.48%,

2/05/24

..

43

43

991781448.UG.FTS.B,

29.48%,

2/05/24

..

96

97

991792826.UG.FTS.B,

29.48%,

2/05/24

..

241

(12)

991797219.UG.FTS.B,

29.48%,

2/05/24

..

582

590

991799948.UG.FTS.B,

29.48%,

2/05/24

..

17

17

991833863.UG.FTS.B,

29.48%,

2/05/24

..

146

149

991838320.UG.FTS.B,

29.48%,

2/05/24

..

60

61

991854737.UG.FTS.B,

29.48%,

2/05/24

..

657

663

991864151.UG.FTS.B,

29.48%,

2/05/24

..

960

66

991898289.UG.FTS.B,

29.48%,

2/05/24

..

72

72

991914626.UG.FTS.B,

29.48%,

2/05/24

..

33

33

991679707.UG.FTS.B,

29.49%,

2/05/24

..

256

256

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991681844.UG.FTS.B,

29.49%,

2/05/24

..

$

742

$

748

991692055.UG.FTS.B,

29.49%,

2/05/24

..

255

249

991693089.UG.FTS.B,

29.49%,

2/05/24

..

117

117

991693783.UG.FTS.B,

29.49%,

2/05/24

..

57

57

991696162.UG.FTS.B,

29.49%,

2/05/24

..

92

93

991696616.UG.FTS.B,

29.49%,

2/05/24

..

223

225

991696879.UG.FTS.B,

29.49%,

2/05/24

..

486

126

991697144.UG.FTS.B,

29.49%,

2/05/24

..

75

75

991700056.UG.FTS.B,

29.49%,

2/05/24

..

599

(28)

991701473.UG.FTS.B,

29.49%,

2/05/24

..

242

246

991704518.UG.FTS.B,

29.49%,

2/05/24

..

52

52

991705344.UG.FTS.B,

29.49%,

2/05/24

..

56

56

991705462.UG.FTS.B,

29.49%,

2/05/24

..

221

221

991705465.UG.FTS.B,

29.49%,

2/05/24

..

82

83

991706846.UG.FTS.B,

29.49%,

2/05/24

..

149

152

991708749.UG.FTS.B,

29.49%,

2/05/24

..

22

22

991709555.UG.FTS.B,

29.49%,

2/05/24

..

18

18

991711063.UG.FTS.B,

29.49%,

2/05/24

..

98

98

991711180.UG.FTS.B,

29.49%,

2/05/24

..

–

–

991711397.UG.FTS.B,

29.49%,

2/05/24

..

368

373

991712546.UG.FTS.B,

29.49%,

2/05/24

..

76

78

991713288.UG.FTS.B,

29.49%,

2/05/24

..

54

55

991713498.UG.FTS.B,

29.49%,

2/05/24

..

69

69

991714141.UG.FTS.B,

29.49%,

2/05/24

..

20

20

991716267.UG.FTS.B,

29.49%,

2/05/24

..

82

83

991716734.UG.FTS.B,

29.49%,

2/05/24

..

142

141

991718017.UG.FTS.B,

29.49%,

2/05/24

..

92

94

991722519.UG.FTS.B,

29.49%,

2/05/24

..

–

–

991723083.UG.FTS.B,

29.49%,

2/05/24

..

147

150

991723420.UG.FTS.B,

29.49%,

2/05/24

..

73

74

991724092.UG.FTS.B,

29.49%,

2/05/24

..

53

53

991726322.UG.FTS.B,

29.49%,

2/05/24

..

38

38

991729272.UG.FTS.B,

29.49%,

2/05/24

..

45

45

991729702.UG.FTS.B,

29.49%,

2/05/24

..

26

25

991730567.UG.FTS.B,

29.49%,

2/05/24

..

84

36

991730878.UG.FTS.B,

29.49%,

2/05/24

..

242

244

991731157.UG.FTS.B,

29.49%,

2/05/24

..

155

10

991733469.UG.FTS.B,

29.49%,

2/05/24

..

18

17

991733625.UG.FTS.B,

29.49%,

2/05/24

..

11

10

991737989.UG.FTS.B,

29.49%,

2/05/24

..

57

58

991739387.UG.FTS.B,

29.49%,

2/05/24

..

553

562

991741149.UG.FTS.B,

29.49%,

2/05/24

..

170

168

991741214.UG.FTS.B,

29.49%,

2/05/24

..

31

31

991741933.UG.FTS.B,

29.49%,

2/05/24

..

41

40

991742642.UG.FTS.B,

29.49%,

2/05/24

..

–

–

991744990.UG.FTS.B,

29.49%,

2/05/24

..

70

70

991750870.UG.FTS.B,

29.49%,

2/05/24

..

10

10

991751346.UG.FTS.B,

29.49%,

2/05/24

..

109

106

991752632.UG.FTS.B,

29.49%,

2/05/24

..

112

111

991757403.UG.FTS.B,

29.49%,

2/05/24

..

–

–

991757885.UG.FTS.B,

29.49%,

2/05/24

..

461

461

991757963.UG.FTS.B,

29.49%,

2/05/24

..

5

5

991760562.UG.FTS.B,

29.49%,

2/05/24

..

8

8

991760937.UG.FTS.B,

29.49%,

2/05/24

..

10

10

991762562.UG.FTS.B,

29.49%,

2/05/24

..

100

6

991762619.UG.FTS.B,

29.49%,

2/05/24

..

31

31

991763866.UG.FTS.B,

29.49%,

2/05/24

..

63

19

991773526.UG.FTS.B,

29.49%,

2/05/24

..

294

299

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

109

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991773707.UG.FTS.B,

29.49%,

2/05/24

..

$

281

$

282

991777302.UG.FTS.B,

29.49%,

2/05/24

..

109

109

991779496.UG.FTS.B,

29.49%,

2/05/24

..

302

305

991779729.UG.FTS.B,

29.49%,

2/05/24

..

117

116

991783484.UG.FTS.B,

29.49%,

2/05/24

..

195

198

991785049.UG.FTS.B,

29.49%,

2/05/24

..

96

98

991786506.UG.FTS.B,

29.49%,

2/05/24

..

181

183

991786889.UG.FTS.B,

29.49%,

2/05/24

..

9

9

991787648.UG.FTS.B,

29.49%,

2/05/24

..

432

438

991788922.UG.FTS.B,

29.49%,

2/05/24

..

492

500

991790437.UG.FTS.B,

29.49%,

2/05/24

..

17

17

991791302.UG.FTS.B,

29.49%,

2/05/24

..

28

28

991795706.UG.FTS.B,

29.49%,

2/05/24

..

61

61

991796027.UG.FTS.B,

29.49%,

2/05/24

..

137

139

991799165.UG.FTS.B,

29.49%,

2/05/24

..

78

79

991801405.UG.FTS.B,

29.49%,

2/05/24

..

297

72

991805403.UG.FTS.B,

29.49%,

2/05/24

..

19

19

991805836.UG.FTS.B,

29.49%,

2/05/24

..

17

16

991807322.UG.FTS.B,

29.49%,

2/05/24

..

22

22

991810461.UG.FTS.B,

29.49%,

2/05/24

..

139

141

991815117.UG.FTS.B,

29.49%,

2/05/24

..

47

46

991816327.UG.FTS.B,

29.49%,

2/05/24

..

758

755

991816825.UG.FTS.B,

29.49%,

2/05/24

..

14

14

991825274.UG.FTS.B,

29.49%,

2/05/24

..

31

30

991827164.UG.FTS.B,

29.49%,

2/05/24

..

37

37

991827302.UG.FTS.B,

29.49%,

2/05/24

..

125

126

991831270.UG.FTS.B,

29.49%,

2/05/24

..

180

179

991833796.UG.FTS.B,

29.49%,

2/05/24

..

110

111

991835834.UG.FTS.B,

29.49%,

2/05/24

..

83

6

991837619.UG.FTS.B,

29.49%,

2/05/24

..

20

20

991839857.UG.FTS.B,

29.49%,

2/05/24

..

13

13

991847475.UG.FTS.B,

29.49%,

2/05/24

..

35

3

991848440.UG.FTS.B,

29.49%,

2/05/24

..

29

2

991850514.UG.FTS.B,

29.49%,

2/05/24

..

99

98

991850797.UG.FTS.B,

29.49%,

2/05/24

..

19

19

991852272.UG.FTS.B,

29.49%,

2/05/24

..

57

57

991857846.UG.FTS.B,

29.49%,

2/05/24

..

5

5

991858745.UG.FTS.B,

29.49%,

2/05/24

..

229

233

991858849.UG.FTS.B,

29.49%,

2/05/24

..

35

34

991858897.UG.FTS.B,

29.49%,

2/05/24

..

41

41

991862959.UG.FTS.B,

29.49%,

2/05/24

..

365

371

991875810.UG.FTS.B,

29.49%,

2/05/24

..

145

145

991879388.UG.FTS.B,

29.49%,

2/05/24

..

66

66

991884438.UG.FTS.B,

29.49%,

2/05/24

..

8

8

991889487.UG.FTS.B,

29.49%,

2/05/24

..

77

76

991890862.UG.FTS.B,

29.49%,

2/05/24

..

12

12

991898184.UG.FTS.B,

29.49%,

2/05/24

..

40

39

991899976.UG.FTS.B,

29.49%,

2/05/24

..

111

111

991900410.UG.FTS.B,

29.49%,

2/05/24

..

23

23

991901626.UG.FTS.B,

29.49%,

2/05/24

..

188

185

991905879.UG.FTS.B,

29.49%,

2/05/24

..

90

89

991908519.UG.FTS.B,

29.49%,

2/05/24

..

73

73

991911294.UG.FTS.B,

29.49%,

2/05/24

..

66

66

991912151.UG.FTS.B,

29.49%,

2/05/24

..

243

241

991916372.UG.FTS.B,

29.49%,

2/05/24

..

–

–

991932864.UG.FTS.B,

29.49%,

2/05/24

..

55

56

991932898.UG.FTS.B,

29.49%,

2/05/24

..

527

524

991936900.UG.FTS.B,

29.49%,

2/05/24

..

72

72

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991710659.UG.FTS.B,

Zero

Cpn,

2/06/24

.

$

66

$

5

991713658.UG.FTS.B,

Zero

Cpn,

2/06/24

.

183

13

991795177.UG.FTS.B,

Zero

Cpn,

2/06/24

.

95

7

991908552.UG.FTS.B,

Zero

Cpn,

2/06/24

.

269

19

991923870.UG.FTS.B,

Zero

Cpn,

2/06/24

.

300

21

991766242.UG.FTS.B,

18.47%,

2/06/24

..

135

134

991702860.UG.FTS.B,

18.71%,

2/06/24

..

151

11

991812725.UG.FTS.B,

18.71%,

2/06/24

..

–

–

991894070.UG.FTS.B,

19.96%,

2/06/24

..

198

198

991928651.UG.FTS.B,

19.96%,

2/06/24

..

531

530

991750813.UG.FTS.B,

19.99%,

2/06/24

..

96

98

991911467.UG.FTS.B,

19.99%,

2/06/24

..

51

52

991719716.UG.FTS.B,

20.47%,

2/06/24

..

316

317

991740030.UG.FTS.B,

20.47%,

2/06/24

..

62

62

991829360.UG.FTS.B,

20.47%,

2/06/24

..

11

11

991718257.UG.FTS.B,

20.96%,

2/06/24

..

126

126

991721853.UG.FTS.B,

20.96%,

2/06/24

..

28

28

991809389.UG.FTS.B,

20.96%,

2/06/24

..

301

302

991714545.UG.FTS.B,

21.48%,

2/06/24

..

149

148

991747919.UG.FTS.B,

21.48%,

2/06/24

..

74

74

991764160.UG.FTS.B,

21.48%,

2/06/24

..

126

126

991803770.UG.FTS.B,

21.48%,

2/06/24

..

44

(1)

991896635.UG.FTS.B,

21.48%,

2/06/24

..

399

396

991704625.UG.FTS.B,

22.47%,

2/06/24

..

8

8

991770409.UG.FTS.B,

22.47%,

2/06/24

..

196

14

991818161.UG.FTS.B,

22.47%,

2/06/24

..

572

39

991858801.UG.FTS.B,

22.47%,

2/06/24

..

91

12

991713027.UG.FTS.B,

23.45%,

2/06/24

..

285

284

991734865.UG.FTS.B,

25.45%,

2/06/24

..

113

113

991690169.UG.FTS.B,

28.48%,

2/06/24

..

978

990

991700308.UG.FTS.B,

28.48%,

2/06/24

..

34

13

991702392.UG.FTS.B,

28.48%,

2/06/24

..

140

142

991704340.UG.FTS.B,

28.48%,

2/06/24

..

294

298

991705248.UG.FTS.B,

28.48%,

2/06/24

..

9

9

991709748.UG.FTS.B,

28.48%,

2/06/24

..

23

23

991711318.UG.FTS.B,

28.48%,

2/06/24

..

109

8

991716848.UG.FTS.B,

28.48%,

2/06/24

..

134

136

991724225.UG.FTS.B,

28.48%,

2/06/24

..

33

33

991726042.UG.FTS.B,

28.48%,

2/06/24

..

13

13

991730449.UG.FTS.B,

28.48%,

2/06/24

..

147

150

991738872.UG.FTS.B,

28.48%,

2/06/24

..

40

40

991740055.UG.FTS.B,

28.48%,

2/06/24

..

515

524

991741244.UG.FTS.B,

28.48%,

2/06/24

..

134

32

991766960.UG.FTS.B,

28.48%,

2/06/24

..

26

26

991780645.UG.FTS.B,

28.48%,

2/06/24

..

273

278

991785489.UG.FTS.B,

28.48%,

2/06/24

..

489

497

991803786.UG.FTS.B,

28.48%,

2/06/24

..

110

112

991827686.UG.FTS.B,

28.48%,

2/06/24

..

172

42

991831344.UG.FTS.B,

28.48%,

2/06/24

..

44

44

991833476.UG.FTS.B,

28.48%,

2/06/24

..

1,094

1,113

991853055.UG.FTS.B,

28.48%,

2/06/24

..

172

174

991853534.UG.FTS.B,

28.48%,

2/06/24

..

145

148

991896815.UG.FTS.B,

28.48%,

2/06/24

..

209

208

991699505.UG.FTS.B,

29.48%,

2/06/24

..

18

18

991704767.UG.FTS.B,

29.48%,

2/06/24

..

322

326

991711309.UG.FTS.B,

29.48%,

2/06/24

..

38

37

991725659.UG.FTS.B,

29.48%,

2/06/24

..

50

50

991726043.UG.FTS.B,

29.48%,

2/06/24

..

63

(4)

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991739555.UG.FTS.B,

29.48%,

2/06/24

..

$

69

$

68

991772431.UG.FTS.B,

29.48%,

2/06/24

..

1,279

171

991781765.UG.FTS.B,

29.48%,

2/06/24

..

27

27

991819053.UG.FTS.B,

29.48%,

2/06/24

..

72

74

991832143.UG.FTS.B,

29.48%,

2/06/24

..

114

114

991835222.UG.FTS.B,

29.48%,

2/06/24

..

585

591

991894999.UG.FTS.B,

29.48%,

2/06/24

..

509

511

991914678.UG.FTS.B,

29.48%,

2/06/24

..

187

187

991928677.UG.FTS.B,

29.48%,

2/06/24

..

145

145

991698911.UG.FTS.B,

29.49%,

2/06/24

..

112

114

991700169.UG.FTS.B,

29.49%,

2/06/24

..

169

172

991700219.UG.FTS.B,

29.49%,

2/06/24

..

30

30

991700772.UG.FTS.B,

29.49%,

2/06/24

..

222

66

991701271.UG.FTS.B,

29.49%,

2/06/24

..

145

147

991702835.UG.FTS.B,

29.49%,

2/06/24

..

173

176

991703003.UG.FTS.B,

29.49%,

2/06/24

..

46

15

991703043.UG.FTS.B,

29.49%,

2/06/24

..

57

58

991703094.UG.FTS.B,

29.49%,

2/06/24

..

44

44

991703613.UG.FTS.B,

29.49%,

2/06/24

..

32

31

991704372.UG.FTS.B,

29.49%,

2/06/24

..

96

98

991705673.UG.FTS.B,

29.49%,

2/06/24

..

29

28

991706376.UG.FTS.B,

29.49%,

2/06/24

..

114

115

991706434.UG.FTS.B,

29.49%,

2/06/24

..

256

260

991706794.UG.FTS.B,

29.49%,

2/06/24

..

87

87

991707306.UG.FTS.B,

29.49%,

2/06/24

..

669

680

991708729.UG.FTS.B,

29.49%,

2/06/24

..

14

14

991709169.UG.FTS.B,

29.49%,

2/06/24

..

85

86

991710056.UG.FTS.B,

29.49%,

2/06/24

..

10

10

991711265.UG.FTS.B,

29.49%,

2/06/24

..

162

164

991711897.UG.FTS.B,

29.49%,

2/06/24

..

68

69

991713731.UG.FTS.B,

29.49%,

2/06/24

..

71

72

991714822.UG.FTS.B,

29.49%,

2/06/24

..

119

118

991717524.UG.FTS.B,

29.49%,

2/06/24

..

172

175

991718539.UG.FTS.B,

29.49%,

2/06/24

..

68

69

991722299.UG.FTS.B,

29.49%,

2/06/24

..

120

8

991723140.UG.FTS.B,

29.49%,

2/06/24

..

232

187

991723291.UG.FTS.B,

29.49%,

2/06/24

..

5

5

991723907.UG.FTS.B,

29.49%,

2/06/24

..

239

238

991725101.UG.FTS.B,

29.49%,

2/06/24

..

39

39

991726361.UG.FTS.B,

29.49%,

2/06/24

..

589

150

991727080.UG.FTS.B,

29.49%,

2/06/24

..

37

37

991730343.UG.FTS.B,

29.49%,

2/06/24

..

185

188

991731423.UG.FTS.B,

29.49%,

2/06/24

..

98

98

991732799.UG.FTS.B,

29.49%,

2/06/24

..

161

160

991734017.UG.FTS.B,

29.49%,

2/06/24

..

51

50

991734953.UG.FTS.B,

29.49%,

2/06/24

..

187

187

991735402.UG.FTS.B,

29.49%,

2/06/24

..

82

83

991735997.UG.FTS.B,

29.49%,

2/06/24

..

103

101

991736969.UG.FTS.B,

29.49%,

2/06/24

..

129

129

991738288.UG.FTS.B,

29.49%,

2/06/24

..

141

142

991738514.UG.FTS.B,

29.49%,

2/06/24

..

155

157

991738581.UG.FTS.B,

29.49%,

2/06/24

..

128

35

991739473.UG.FTS.B,

29.49%,

2/06/24

..

89

90

991741909.UG.FTS.B,

29.49%,

2/06/24

..

42

42

991743596.UG.FTS.B,

29.49%,

2/06/24

..

32

28

991750749.UG.FTS.B,

29.49%,

2/06/24

..

321

316

991754427.UG.FTS.B,

29.49%,

2/06/24

..

111

109

991754554.UG.FTS.B,

29.49%,

2/06/24

..

126

127

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991756004.UG.FTS.B,

29.49%,

2/06/24

..

$

200

$

16

991756713.UG.FTS.B,

29.49%,

2/06/24

..

705

717

991760581.UG.FTS.B,

29.49%,

2/06/24

..

329

331

991762718.UG.FTS.B,

29.49%,

2/06/24

..

129

131

991763838.UG.FTS.B,

29.49%,

2/06/24

..

17

17

991766178.UG.FTS.B,

29.49%,

2/06/24

..

31

31

991766882.UG.FTS.B,

29.49%,

2/06/24

..

164

166

991767912.UG.FTS.B,

29.49%,

2/06/24

..

135

137

991769363.UG.FTS.B,

29.49%,

2/06/24

..

68

69

991775218.UG.FTS.B,

29.49%,

2/06/24

..

221

224

991780601.UG.FTS.B,

29.49%,

2/06/24

..

102

103

991791590.UG.FTS.B,

29.49%,

2/06/24

..

100

102

991792802.UG.FTS.B,

29.49%,

2/06/24

..

587

597

991797851.UG.FTS.B,

29.49%,

2/06/24

..

43

43

991800867.UG.FTS.B,

29.49%,

2/06/24

..

16

15

991800876.UG.FTS.B,

29.49%,

2/06/24

..

8

8

991802395.UG.FTS.B,

29.49%,

2/06/24

..

158

160

991802450.UG.FTS.B,

29.49%,

2/06/24

..

151

152

991802472.UG.FTS.B,

29.49%,

2/06/24

..

18

17

991803366.UG.FTS.B,

29.49%,

2/06/24

..

127

128

991804272.UG.FTS.B,

29.49%,

2/06/24

..

59

60

991807744.UG.FTS.B,

29.49%,

2/06/24

..

65

17

991811603.UG.FTS.B,

29.49%,

2/06/24

..

77

78

991811852.UG.FTS.B,

29.49%,

2/06/24

..

5

5

991812453.UG.FTS.B,

29.49%,

2/06/24

..

106

107

991815771.UG.FTS.B,

29.49%,

2/06/24

..

37

38

991824369.UG.FTS.B,

29.49%,

2/06/24

..

70

70

991834896.UG.FTS.B,

29.49%,

2/06/24

..

78

11

991845179.UG.FTS.B,

29.49%,

2/06/24

..

146

149

991847495.UG.FTS.B,

29.49%,

2/06/24

..

45

3

991847730.UG.FTS.B,

29.49%,

2/06/24

..

25

25

991848888.UG.FTS.B,

29.49%,

2/06/24

..

107

108

991854055.UG.FTS.B,

29.49%,

2/06/24

..

730

740

991854221.UG.FTS.B,

29.49%,

2/06/24

..

730

742

991863148.UG.FTS.B,

29.49%,

2/06/24

..

149

36

991863263.UG.FTS.B,

29.49%,

2/06/24

..

1,574

405

991863348.UG.FTS.B,

29.49%,

2/06/24

..

219

223

991864157.UG.FTS.B,

29.49%,

2/06/24

..

170

170

991864784.UG.FTS.B,

29.49%,

2/06/24

..

129

127

991864872.UG.FTS.B,

29.49%,

2/06/24

..

13

13

991865672.UG.FTS.B,

29.49%,

2/06/24

..

256

260

991867936.UG.FTS.B,

29.49%,

2/06/24

..

36

36

991876619.UG.FTS.B,

29.49%,

2/06/24

..

11

11

991877592.UG.FTS.B,

29.49%,

2/06/24

..

682

683

991879365.UG.FTS.B,

29.49%,

2/06/24

..

206

207

991879983.UG.FTS.B,

29.49%,

2/06/24

..

29

2

991894974.UG.FTS.B,

29.49%,

2/06/24

..

434

432

991902326.UG.FTS.B,

29.49%,

2/06/24

..

34

34

991903049.UG.FTS.B,

29.49%,

2/06/24

..

55

56

991903768.UG.FTS.B,

29.49%,

2/06/24

..

1,691

1,687

991908232.UG.FTS.B,

29.49%,

2/06/24

..

73

73

991908563.UG.FTS.B,

29.49%,

2/06/24

..

69

68

991913163.UG.FTS.B,

29.49%,

2/06/24

..

84

84

991916003.UG.FTS.B,

29.49%,

2/06/24

..

262

261

991917005.UG.FTS.B,

29.49%,

2/06/24

..

107

107

991919051.UG.FTS.B,

29.49%,

2/06/24

..

29

29

991920035.UG.FTS.B,

29.49%,

2/06/24

..

81

81

991921170.UG.FTS.B,

29.49%,

2/06/24

..

–

–

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

111

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991922749.UG.FTS.B,

29.49%,

2/06/24

..

$

33

$

5

991925585.UG.FTS.B,

29.49%,

2/06/24

..

217

217

991932100.UG.FTS.B,

29.49%,

2/06/24

..

27

27

991933341.UG.FTS.B,

29.49%,

2/06/24

..

62

61

991936718.UG.FTS.B,

29.49%,

2/06/24

..

5

5

991710918.UG.FTS.B,

Zero

Cpn,

2/07/24

.

56

4

991714627.UG.FTS.B,

Zero

Cpn,

2/07/24

.

252

18

991724085.UG.FTS.B,

Zero

Cpn,

2/07/24

.

212

15

991729127.UG.FTS.B,

Zero

Cpn,

2/07/24

.

354

25

991750233.UG.FTS.B,

Zero

Cpn,

2/07/24

.

241

17

991755183.UG.FTS.B,

Zero

Cpn,

2/07/24

.

94

7

991779526.UG.FTS.B,

Zero

Cpn,

2/07/24

.

88

6

991819883.UG.FTS.B,

Zero

Cpn,

2/07/24

.

511

36

991828058.UG.FTS.B,

Zero

Cpn,

2/07/24

.

18

1

991866154.UG.FTS.B,

Zero

Cpn,

2/07/24

.

92

6

991886611.UG.FTS.B,

Zero

Cpn,

2/07/24

.

110

8

991907860.UG.FTS.B,

Zero

Cpn,

2/07/24

.

135

9

991928006.UG.FTS.B,

Zero

Cpn,

2/07/24

.

90

6

991952896.UG.FTS.B,

17.49%,

2/07/24

..

700

702

991726829.UG.FTS.B,

18.47%,

2/07/24

..

183

184

991908299.UG.FTS.B,

18.47%,

2/07/24

..

71

71

991712054.UG.FTS.B,

18.48%,

2/07/24

..

11

11

991747268.UG.FTS.B,

19.96%,

2/07/24

..

136

136

991753959.UG.FTS.B,

19.99%,

2/07/24

..

32

32

991759455.UG.FTS.B,

19.99%,

2/07/24

..

262

260

991706118.UG.FTS.B,

20.47%,

2/07/24

..

14

14

991746536.UG.FTS.B,

20.47%,

2/07/24

..

349

349

991722216.UG.FTS.B,

20.96%,

2/07/24

..

140

139

991749666.UG.FTS.B,

20.96%,

2/07/24

..

121

121

991810606.UG.FTS.B,

20.96%,

2/07/24

..

1,716

1,724

991766296.UG.FTS.B,

21.48%,

2/07/24

..

225

16

991728476.UG.FTS.B,

22.45%,

2/07/24

..

233

230

991788399.UG.FTS.B,

22.45%,

2/07/24

..

99

99

991705944.UG.FTS.B,

22.47%,

2/07/24

..

472

470

991765791.UG.FTS.B,

22.47%,

2/07/24

..

141

141

991805714.UG.FTS.B,

22.47%,

2/07/24

..

73

73

991824365.UG.FTS.B,

22.47%,

2/07/24

..

120

120

991731634.UG.FTS.B,

23.45%,

2/07/24

..

126

125

991897674.UG.FTS.B,

23.45%,

2/07/24

..

44

3

991937198.UG.FTS.B,

24.45%,

2/07/24

..

334

332

991731317.UG.FTS.B,

25.45%,

2/07/24

..

11

11

991790087.UG.FTS.B,

25.45%,

2/07/24

..

–

–

991795146.UG.FTS.B,

25.45%,

2/07/24

..

18

7

991742610.UG.FTS.B,

26.44%,

2/07/24

..

21

21

991938133.UG.FTS.B,

27.99%,

2/07/24

..

54

54

991706634.UG.FTS.B,

28.48%,

2/07/24

..

529

533

991710705.UG.FTS.B,

28.48%,

2/07/24

..

21

21

991714808.UG.FTS.B,

28.48%,

2/07/24

..

64

9

991731295.UG.FTS.B,

28.48%,

2/07/24

..

–

–

991731457.UG.FTS.B,

28.48%,

2/07/24

..

405

28

991741108.UG.FTS.B,

28.48%,

2/07/24

..

515

520

991758069.UG.FTS.B,

28.48%,

2/07/24

..

415

414

991759844.UG.FTS.B,

28.48%,

2/07/24

..

81

(2)

991764700.UG.FTS.B,

28.48%,

2/07/24

..

81

83

991778355.UG.FTS.B,

28.48%,

2/07/24

..

23

23

991799124.UG.FTS.B,

28.48%,

2/07/24

..

31

31

991803011.UG.FTS.B,

28.48%,

2/07/24

..

109

111

991815918.UG.FTS.B,

28.48%,

2/07/24

..

175

176

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991818712.UG.FTS.B,

28.48%,

2/07/24

..

$

313

$

314

991822357.UG.FTS.B,

28.48%,

2/07/24

..

20

9

991850407.UG.FTS.B,

28.48%,

2/07/24

..

50

51

991860532.UG.FTS.B,

28.48%,

2/07/24

..

87

87

991917220.UG.FTS.B,

28.48%,

2/07/24

..

152

152

991930736.UG.FTS.B,

28.48%,

2/07/24

..

25

25

991707024.UG.FTS.B,

29.48%,

2/07/24

..

26

26

991709711.UG.FTS.B,

29.48%,

2/07/24

..

269

272

991711547.UG.FTS.B,

29.48%,

2/07/24

..

89

91

991715983.UG.FTS.B,

29.48%,

2/07/24

..

64

64

991717577.UG.FTS.B,

29.48%,

2/07/24

..

58

58

991728869.UG.FTS.B,

29.48%,

2/07/24

..

84

85

991731888.UG.FTS.B,

29.48%,

2/07/24

..

34

34

991734282.UG.FTS.B,

29.48%,

2/07/24

..

26

26

991736572.UG.FTS.B,

29.48%,

2/07/24

..

171

173

991742699.UG.FTS.B,

29.48%,

2/07/24

..

309

20

991751889.UG.FTS.B,

29.48%,

2/07/24

..

66

68

991758401.UG.FTS.B,

29.48%,

2/07/24

..

14

14

991760237.UG.FTS.B,

29.48%,

2/07/24

..

230

234

991761553.UG.FTS.B,

29.48%,

2/07/24

..

55

55

991769139.UG.FTS.B,

29.48%,

2/07/24

..

143

(7)

991797551.UG.FTS.B,

29.48%,

2/07/24

..

202

205

991803460.UG.FTS.B,

29.48%,

2/07/24

..

207

211

991810928.UG.FTS.B,

29.48%,

2/07/24

..

733

741

991813154.UG.FTS.B,

29.48%,

2/07/24

..

261

265

991840368.UG.FTS.B,

29.48%,

2/07/24

..

153

20

991705242.UG.FTS.B,

29.49%,

2/07/24

..

380

385

991705831.UG.FTS.B,

29.49%,

2/07/24

..

–

–

991705840.UG.FTS.B,

29.49%,

2/07/24

..

177

179

991707631.UG.FTS.B,

29.49%,

2/07/24

..

105

107

991709347.UG.FTS.B,

29.49%,

2/07/24

..

29

29

991709436.UG.FTS.B,

29.49%,

2/07/24

..

21

21

991711441.UG.FTS.B,

29.49%,

2/07/24

..

53

53

991711765.UG.FTS.B,

29.49%,

2/07/24

..

390

394

991712265.UG.FTS.B,

29.49%,

2/07/24

..

104

105

991712289.UG.FTS.B,

29.49%,

2/07/24

..

109

111

991712442.UG.FTS.B,

29.49%,

2/07/24

..

155

155

991712942.UG.FTS.B,

29.49%,

2/07/24

..

117

117

991713532.UG.FTS.B,

29.49%,

2/07/24

..

16

15

991714110.UG.FTS.B,

29.49%,

2/07/24

..

132

134

991714291.UG.FTS.B,

29.49%,

2/07/24

..

18

17

991714530.UG.FTS.B,

29.49%,

2/07/24

..

120

122

991717559.UG.FTS.B,

29.49%,

2/07/24

..

47

47

991720763.UG.FTS.B,

29.49%,

2/07/24

..

185

188

991721981.UG.FTS.B,

29.49%,

2/07/24

..

111

113

991722386.UG.FTS.B,

29.49%,

2/07/24

..

133

32

991724940.UG.FTS.B,

29.49%,

2/07/24

..

358

49

991726634.UG.FTS.B,

29.49%,

2/07/24

..

235

236

991726842.UG.FTS.B,

29.49%,

2/07/24

..

85

86

991729154.UG.FTS.B,

29.49%,

2/07/24

..

456

463

991729259.UG.FTS.B,

29.49%,

2/07/24

..

222

224

991729859.UG.FTS.B,

29.49%,

2/07/24

..

291

291

991731671.UG.FTS.B,

29.49%,

2/07/24

..

30

30

991732502.UG.FTS.B,

29.49%,

2/07/24

..

153

40

991734122.UG.FTS.B,

29.49%,

2/07/24

..

3

3

991734419.UG.FTS.B,

29.49%,

2/07/24

..

103

105

991735481.UG.FTS.B,

29.49%,

2/07/24

..

3

3

991736007.UG.FTS.B,

29.49%,

2/07/24

..

146

39

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991736235.UG.FTS.B,

29.49%,

2/07/24

..

$

3

$

3

991736257.UG.FTS.B,

29.49%,

2/07/24

..

127

128

991742022.UG.FTS.B,

29.49%,

2/07/24

..

163

166

991745483.UG.FTS.B,

29.49%,

2/07/24

..

513

130

991746695.UG.FTS.B,

29.49%,

2/07/24

..

64

64

991747730.UG.FTS.B,

29.49%,

2/07/24

..

40

39

991750279.UG.FTS.B,

29.49%,

2/07/24

..

17

17

991752944.UG.FTS.B,

29.49%,

2/07/24

..

14

14

991756174.UG.FTS.B,

29.49%,

2/07/24

..

265

68

991757757.UG.FTS.B,

29.49%,

2/07/24

..

76

77

991758864.UG.FTS.B,

29.49%,

2/07/24

..

136

135

991760583.UG.FTS.B,

29.49%,

2/07/24

..

121

120

991762212.UG.FTS.B,

29.49%,

2/07/24

..

488

480

991767246.UG.FTS.B,

29.49%,

2/07/24

..

106

108

991768735.UG.FTS.B,

29.49%,

2/07/24

..

960

956

991772407.UG.FTS.B,

29.49%,

2/07/24

..

65

66

991775214.UG.FTS.B,

29.49%,

2/07/24

..

6

6

991780524.UG.FTS.B,

29.49%,

2/07/24

..

116

117

991781431.UG.FTS.B,

29.49%,

2/07/24

..

28

28

991781548.UG.FTS.B,

29.49%,

2/07/24

..

640

647

991782258.UG.FTS.B,

29.49%,

2/07/24

..

1,095

1,102

991782377.UG.FTS.B,

29.49%,

2/07/24

..

88

(4)

991786276.UG.FTS.B,

29.49%,

2/07/24

..

361

363

991787046.UG.FTS.B,

29.49%,

2/07/24

..

50

51

991788484.UG.FTS.B,

29.49%,

2/07/24

..

44

44

991794751.UG.FTS.B,

29.49%,

2/07/24

..

214

57

991795789.UG.FTS.B,

29.49%,

2/07/24

..

134

136

991799311.UG.FTS.B,

29.49%,

2/07/24

..

11

11

991802071.UG.FTS.B,

29.49%,

2/07/24

..

184

187

991804746.UG.FTS.B,

29.49%,

2/07/24

..

53

53

991805956.UG.FTS.B,

29.49%,

2/07/24

..

3

3

991814041.UG.FTS.B,

29.49%,

2/07/24

..

39

40

991814879.UG.FTS.B,

29.49%,

2/07/24

..

18

18

991817194.UG.FTS.B,

29.49%,

2/07/24

..

83

84

991817987.UG.FTS.B,

29.49%,

2/07/24

..

73

74

991822013.UG.FTS.B,

29.49%,

2/07/24

..

127

128

991823863.UG.FTS.B,

29.49%,

2/07/24

..

14

14

991833748.UG.FTS.B,

29.49%,

2/07/24

..

1,302

400

991835130.UG.FTS.B,

29.49%,

2/07/24

..

110

111

991838231.UG.FTS.B,

29.49%,

2/07/24

..

55

55

991838362.UG.FTS.B,

29.49%,

2/07/24

..

129

130

991840310.UG.FTS.B,

29.49%,

2/07/24

..

160

160

991842041.UG.FTS.B,

29.49%,

2/07/24

..

88

90

991844653.UG.FTS.B,

29.49%,

2/07/24

..

371

376

991845454.UG.FTS.B,

29.49%,

2/07/24

..

527

535

991846751.UG.FTS.B,

29.49%,

2/07/24

..

25

25

991847296.UG.FTS.B,

29.49%,

2/07/24

..

361

360

991849970.UG.FTS.B,

29.49%,

2/07/24

..

63

18

991850440.UG.FTS.B,

29.49%,

2/07/24

..

160

162

991852247.UG.FTS.B,

29.49%,

2/07/24

..

598

598

991852683.UG.FTS.B,

29.49%,

2/07/24

..

128

130

991852938.UG.FTS.B,

29.49%,

2/07/24

..

5

5

991858699.UG.FTS.B,

29.49%,

2/07/24

..

43

3

991860170.UG.FTS.B,

29.49%,

2/07/24

..

295

300

991860524.UG.FTS.B,

29.49%,

2/07/24

..

348

348

991874547.UG.FTS.B,

29.49%,

2/07/24

..

58

16

991878603.UG.FTS.B,

29.49%,

2/07/24

..

16

8

991881568.UG.FTS.B,

29.49%,

2/07/24

..

225

228

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991883582.UG.FTS.B,

29.49%,

2/07/24

..

$

22

$

22

991884351.UG.FTS.B,

29.49%,

2/07/24

..

64

4

991889120.UG.FTS.B,

29.49%,

2/07/24

..

227

228

991895135.UG.FTS.B,

29.49%,

2/07/24

..

101

101

991895535.UG.FTS.B,

29.49%,

2/07/24

..

237

17

991897062.UG.FTS.B,

29.49%,

2/07/24

..

40

40

991916558.UG.FTS.B,

29.49%,

2/07/24

..

21

21

991918742.UG.FTS.B,

29.49%,

2/07/24

..

109

109

991918817.UG.FTS.B,

29.49%,

2/07/24

..

104

103

991920447.UG.FTS.B,

29.49%,

2/07/24

..

60

61

991920714.UG.FTS.B,

29.49%,

2/07/24

..

107

107

991888412.UG.FTS.B,

14.48%,

2/09/24

..

84

21

991786830.UG.FTS.B,

15.47%,

2/09/24

..

16

16

991734323.UG.FTS.B,

16.49%,

2/09/24

..

166

168

991550358.UG.FTS.B,

29.49%,

3/17/24

..

740

586

991817049.UG.FTS.B,

29.49%,

3/24/24

..

495

497

991826545.UG.FTS.B,

28.98%,

8/23/24

..

19

19

991654240.UG.FTS.B,

29.49%,

8/24/24

..

78

60

991762808.UG.FTS.B,

29.49%,

11/07/24

.

91

66

991487037.UG.FTS.B,

14.98%,

1/13/25

..

1,452

1,479

991499314.UG.FTS.B,

16.99%,

1/14/25

..

345

352

991508732.UG.FTS.B,

16.99%,

1/15/25

..

1,441

1,472

991512643.UG.FTS.B,

16.99%,

1/15/25

..

1,765

363

991514741.UG.FTS.B,

17.99%,

1/15/25

..

3,705

3,777

991515511.UG.FTS.B,

16.99%,

1/16/25

..

153

156

991636748.UG.FTS.B,

Zero

Cpn,

1/18/25

.

865

59

991534259.UG.FTS.B,

19.99%,

1/18/25

..

2,180

2,256

991540248.UG.FTS.B,

19.99%,

1/18/25

..

73

73

991542919.UG.FTS.B,

19.99%,

1/18/25

..

451

468

991543349.UG.FTS.B,

19.99%,

1/18/25

..

1,061

1,102

991569157.UG.FTS.B,

19.99%,

1/18/25

..

160

19

991596625.UG.FTS.B,

19.99%,

1/18/25

..

285

61

991613831.UG.FTS.B,

19.99%,

1/18/25

..

328

341

991670994.UG.FTS.B,

19.99%,

1/18/25

..

7

7

991738583.UG.FTS.B,

19.99%,

1/18/25

..

142

146

991741235.UG.FTS.B,

19.99%,

1/18/25

..

58

59

991745136.UG.FTS.B,

19.99%,

1/18/25

..

75

4

991535930.UG.FTS.B,

27.95%,

1/18/25

..

1,689

1,754

991541397.UG.FTS.B,

27.95%,

1/18/25

..

248

252

991553396.UG.FTS.B,

27.99%,

1/18/25

..

174

176

991537321.UG.FTS.B,

28.98%,

1/18/25

..

156

155

991541578.UG.FTS.B,

28.98%,

1/18/25

..

71

73

991541730.UG.FTS.B,

28.98%,

1/18/25

..

1,022

1,038

991547864.UG.FTS.B,

28.98%,

1/18/25

..

653

677

991548072.UG.FTS.B,

28.98%,

1/18/25

..

882

218

991563160.UG.FTS.B,

28.98%,

1/18/25

..

94

22

991564531.UG.FTS.B,

28.98%,

1/18/25

..

319

317

991571658.UG.FTS.B,

28.98%,

1/18/25

..

165

169

991578090.UG.FTS.B,

28.98%,

1/18/25

..

–

–

991586801.UG.FTS.B,

28.98%,

1/18/25

..

213

218

991592026.UG.FTS.B,

28.98%,

1/18/25

..

180

186

991605601.UG.FTS.B,

28.98%,

1/18/25

..

63

62

991625562.UG.FTS.B,

28.98%,

1/18/25

..

91

64

991633024.UG.FTS.B,

28.98%,

1/18/25

..

88

87

991643127.UG.FTS.B,

28.98%,

1/18/25

..

167

171

991643598.UG.FTS.B,

28.98%,

1/18/25

..

147

146

991644065.UG.FTS.B,

28.98%,

1/18/25

..

619

627

991646974.UG.FTS.B,

28.98%,

1/18/25

..

184

189

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

113

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991660042.UG.FTS.B,

28.98%,

1/18/25

..

$

182

$

23

991662279.UG.FTS.B,

28.98%,

1/18/25

..

110

113

991669237.UG.FTS.B,

28.98%,

1/18/25

..

77

80

991734107.UG.FTS.B,

28.98%,

1/18/25

..

55

56

991767339.UG.FTS.B,

28.98%,

1/18/25

..

39

39

991770623.UG.FTS.B,

28.98%,

1/18/25

..

729

746

991640372.UG.FTS.B,

29.45%,

1/18/25

..

547

560

991766780.UG.FTS.B,

29.45%,

1/18/25

..

143

146

991534976.UG.FTS.B,

29.46%,

1/18/25

..

1,248

164

991554221.UG.FTS.B,

29.46%,

1/18/25

..

2,517

2,575

991629920.UG.FTS.B,

29.46%,

1/18/25

..

91

12

991670069.UG.FTS.B,

29.46%,

1/18/25

..

518

538

991567035.UG.FTS.B,

29.48%,

1/18/25

..

536

557

991534713.UG.FTS.B,

29.49%,

1/18/25

..

356

369

991535459.UG.FTS.B,

29.49%,

1/18/25

..

225

235

991535708.UG.FTS.B,

29.49%,

1/18/25

..

120

122

991536072.UG.FTS.B,

29.49%,

1/18/25

..

420

413

991536876.UG.FTS.B,

29.49%,

1/18/25

..

263

269

991536929.UG.FTS.B,

29.49%,

1/18/25

..

1,267

1,288

991537021.UG.FTS.B,

29.49%,

1/18/25

..

166

173

991538752.UG.FTS.B,

29.49%,

1/18/25

..

21

9

991540546.UG.FTS.B,

29.49%,

1/18/25

..

97

100

991540582.UG.FTS.B,

29.49%,

1/18/25

..

1,460

1,466

991541260.UG.FTS.B,

29.49%,

1/18/25

..

105

8

991542221.UG.FTS.B,

29.49%,

1/18/25

..

235

244

991542253.UG.FTS.B,

29.49%,

1/18/25

..

329

76

991543638.UG.FTS.B,

29.49%,

1/18/25

..

131

134

991543705.UG.FTS.B,

29.49%,

1/18/25

..

40

6

991544799.UG.FTS.B,

29.49%,

1/18/25

..

229

234

991545277.UG.FTS.B,

29.49%,

1/18/25

..

344

358

991545704.UG.FTS.B,

29.49%,

1/18/25

..

151

150

991556476.UG.FTS.B,

29.49%,

1/18/25

..

707

(29)

991560367.UG.FTS.B,

29.49%,

1/18/25

..

489

502

991563121.UG.FTS.B,

29.49%,

1/18/25

..

1,024

133

991563278.UG.FTS.B,

29.49%,

1/18/25

..

198

206

991575618.UG.FTS.B,

29.49%,

1/18/25

..

58

57

991576670.UG.FTS.B,

29.49%,

1/18/25

..

–

–

991577286.UG.FTS.B,

29.49%,

1/18/25

..

543

565

991580004.UG.FTS.B,

29.49%,

1/18/25

..

106

110

991584589.UG.FTS.B,

29.49%,

1/18/25

..

209

208

991608770.UG.FTS.B,

29.49%,

1/18/25

..

209

47

991612123.UG.FTS.B,

29.49%,

1/18/25

..

14

14

991620966.UG.FTS.B,

29.49%,

1/18/25

..

373

370

991624817.UG.FTS.B,

29.49%,

1/18/25

..

212

214

991637270.UG.FTS.B,

29.49%,

1/18/25

..

72

74

991641889.UG.FTS.B,

29.49%,

1/18/25

..

204

212

991692788.UG.FTS.B,

29.49%,

1/18/25

..

68

70

991705157.UG.FTS.B,

29.49%,

1/18/25

..

115

115

991757664.UG.FTS.B,

29.49%,

1/18/25

..

41

41

991765962.UG.FTS.B,

29.49%,

1/18/25

..

86

89

991766828.UG.FTS.B,

29.49%,

1/18/25

..

156

158

991768700.UG.FTS.B,

29.49%,

1/18/25

..

220

223

991768927.UG.FTS.B,

29.49%,

1/18/25

..

34

34

991770051.UG.FTS.B,

29.49%,

1/18/25

..

41

3

991771306.UG.FTS.B,

29.49%,

1/18/25

..

351

359

991613322.UG.FTS.B,

29.99%,

1/18/25

..

203

211

991577932.UG.FTS.B,

Zero

Cpn,

1/19/25

.

412

29

991631516.UG.FTS.B,

Zero

Cpn,

1/19/25

.

293

20

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991645837.UG.FTS,

Zero

Cpn,

1/19/25

..

$

147

$

10

991765926.UG.FTS.B,

Zero

Cpn,

1/19/25

.

60

4

991774110.UG.FTS.B,

Zero

Cpn,

1/19/25

.

173

12

991775067.UG.FTS.B,

Zero

Cpn,

1/19/25

.

182

13

991664635.UG.FTS.B,

18.97%,

1/19/25

..

–

–

991713909.UG.FTS.B,

18.97%,

1/19/25

..

257

255

991547598.UG.FTS.B,

19.99%,

1/19/25

..

139

144

991553350.UG.FTS.B,

19.99%,

1/19/25

..

75

77

991556775.UG.FTS.B,

19.99%,

1/19/25

..

116

119

991558621.UG.FTS.B,

19.99%,

1/19/25

..

186

123

991593524.UG.FTS.B,

19.99%,

1/19/25

..

128

133

991610154.UG.FTS.B,

19.99%,

1/19/25

..

662

685

991615796.UG.FTS.B,

19.99%,

1/19/25

..

199

206

991617879.UG.FTS.B,

19.99%,

1/19/25

..

1,274

1,323

991640553.UG.FTS.B,

19.99%,

1/19/25

..

700

717

991650417.UG.FTS.B,

19.99%,

1/19/25

..

240

246

991706987.UG.FTS.B,

19.99%,

1/19/25

..

729

747

991713026.UG.FTS.B,

19.99%,

1/19/25

..

250

257

991713921.UG.FTS.B,

19.99%,

1/19/25

..

–

–

991720021.UG.FTS.B,

19.99%,

1/19/25

..

1,216

1,247

991729446.UG.FTS.B,

19.99%,

1/19/25

..

301

308

991764139.UG.FTS.B,

19.99%,

1/19/25

..

61

62

991766471.UG.FTS.B,

19.99%,

1/19/25

..

240

185

991698886.UG.FTS.B,

21.46%,

1/19/25

..

221

218

991690575.UG.FTS.B,

25.95%,

1/19/25

..

460

460

991777867.UG.FTS.B,

25.95%,

1/19/25

..

76

76

991775187.UG.FTS.B,

26.94%,

1/19/25

..

629

(19)

991570838.UG.FTS.B,

27.99%,

1/19/25

..

235

244

991779529.UG.FTS.B,

27.99%,

1/19/25

..

337

345

991544331.UG.FTS.B,

28.98%,

1/19/25

..

594

608

991547565.UG.FTS.B,

28.98%,

1/19/25

..

153

155

991556346.UG.FTS.B,

28.98%,

1/19/25

..

209

217

991580652.UG.FTS.B,

28.98%,

1/19/25

..

100

103

991581396.UG.FTS.B,

28.98%,

1/19/25

..

826

857

991652010.UG.FTS.B,

28.98%,

1/19/25

..

318

325

991655625.UG.FTS.B,

28.98%,

1/19/25

..

241

30

991669072.UG.FTS.B,

28.98%,

1/19/25

..

246

249

991669843.UG.FTS.B,

28.98%,

1/19/25

..

133

135

991680250.UG.FTS.B,

28.98%,

1/19/25

..

410

410

991681134.UG.FTS.B,

28.98%,

1/19/25

..

138

142

991684419.UG.FTS.B,

28.98%,

1/19/25

..

656

672

991688747.UG.FTS.B,

28.98%,

1/19/25

..

102

105

991689404.UG.FTS.B,

28.98%,

1/19/25

..

166

169

991694508.UG.FTS.B,

28.98%,

1/19/25

..

274

281

991694833.UG.FTS.B,

28.98%,

1/19/25

..

76

75

991698089.UG.FTS.B,

28.98%,

1/19/25

..

145

142

991707908.UG.FTS.B,

28.98%,

1/19/25

..

167

170

991729327.UG.FTS.B,

28.98%,

1/19/25

..

119

122

991734745.UG.FTS.B,

28.98%,

1/19/25

..

406

415

991738232.UG.FTS.B,

28.98%,

1/19/25

..

39

40

991746200.UG.FTS.B,

28.98%,

1/19/25

..

445

456

991746728.UG.FTS.B,

28.98%,

1/19/25

..

96

99

991747421.UG.FTS.B,

28.98%,

1/19/25

..

63

64

991747495.UG.FTS.B,

28.98%,

1/19/25

..

22

22

991748030.UG.FTS.B,

28.98%,

1/19/25

..

132

135

991750526.UG.FTS.B,

28.98%,

1/19/25

..

577

590

991760907.UG.FTS.B,

28.98%,

1/19/25

..

261

267

991762526.UG.FTS.B,

28.98%,

1/19/25

..

418

427

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991764374.UG.FTS.B,

28.98%,

1/19/25

..

$

19

$

17

991770244.UG.FTS.B,

28.98%,

1/19/25

..

553

567

991771984.UG.FTS.B,

28.98%,

1/19/25

..

655

670

991775019.UG.FTS.B,

28.98%,

1/19/25

..

420

431

991778450.UG.FTS.B,

28.98%,

1/19/25

..

72

74

991783038.UG.FTS.B,

28.98%,

1/19/25

..

485

497

991783620.UG.FTS.B,

28.98%,

1/19/25

..

327

335

991784176.UG.FTS.B,

28.98%,

1/19/25

..

304

310

991616379.UG.FTS.B,

29.45%,

1/19/25

..

233

233

991541493.UG.FTS.B,

29.46%,

1/19/25

..

49

48

991543182.UG.FTS.B,

29.46%,

1/19/25

..

1,135

758

991546906.UG.FTS.B,

29.46%,

1/19/25

..

–

–

991547157.UG.FTS.B,

29.46%,

1/19/25

..

711

719

991550875.UG.FTS.B,

29.47%,

1/19/25

..

1,675

1,741

991767247.UG.FTS.B,

29.47%,

1/19/25

..

514

526

991551878.UG.FTS.B,

29.48%,

1/19/25

..

882

887

991681269.UG.FTS.B,

29.48%,

1/19/25

..

192

196

991542015.UG.FTS.B,

29.49%,

1/19/25

..

343

355

991543258.UG.FTS.B,

29.49%,

1/19/25

..

561

567

991545568.UG.FTS.B,

29.49%,

1/19/25

..

1,265

1,312

991547193.UG.FTS.B,

29.49%,

1/19/25

..

165

(7)

991547832.UG.FTS.B,

29.49%,

1/19/25

..

232

237

991548296.UG.FTS.B,

29.49%,

1/19/25

..

206

(5)

991553192.UG.FTS.B,

29.49%,

1/19/25

..

–

–

991553195.UG.FTS.B,

29.49%,

1/19/25

..

37

32

991556769.UG.FTS.B,

29.49%,

1/19/25

..

149

154

991557306.UG.FTS.B,

29.49%,

1/19/25

..

754

786

991559196.UG.FTS.B,

29.49%,

1/19/25

..

2,336

1,547

991563658.UG.FTS.B,

29.49%,

1/19/25

..

956

978

991567374.UG.FTS.B,

29.49%,

1/19/25

..

68

69

991567620.UG.FTS.B,

29.49%,

1/19/25

..

299

303

991569855.UG.FTS.B,

29.49%,

1/19/25

..

63

63

991571908.UG.FTS.B,

29.49%,

1/19/25

..

145

148

991572593.UG.FTS.B,

29.49%,

1/19/25

..

531

535

991575387.UG.FTS.B,

29.49%,

1/19/25

..

213

222

991579317.UG.FTS.B,

29.49%,

1/19/25

..

162

166

991587154.UG.FTS.B,

29.49%,

1/19/25

..

207

210

991587244.UG.FTS.B,

29.49%,

1/19/25

..

164

170

991589283.UG.FTS.B,

29.49%,

1/19/25

..

661

687

991589395.UG.FTS.B,

29.49%,

1/19/25

..

460

460

991590614.UG.FTS.B,

29.49%,

1/19/25

..

235

243

991616062.UG.FTS.B,

29.49%,

1/19/25

..

348

345

991624460.UG.FTS.B,

29.49%,

1/19/25

..

196

26

991647737.UG.FTS.B,

29.49%,

1/19/25

..

126

129

991663931.UG.FTS.B,

29.49%,

1/19/25

..

21

21

991666296.UG.FTS.B,

29.49%,

1/19/25

..

192

197

991668851.UG.FTS.B,

29.49%,

1/19/25

..

104

108

991669943.UG.FTS.B,

29.49%,

1/19/25

..

16

16

991676239.UG.FTS.B,

29.49%,

1/19/25

..

880

901

991684554.UG.FTS.B,

29.49%,

1/19/25

..

31

31

991688411.UG.FTS.B,

29.49%,

1/19/25

..

141

95

991698039.UG.FTS.B,

29.49%,

1/19/25

..

199

203

991700162.UG.FTS.B,

29.49%,

1/19/25

..

131

130

991710813.UG.FTS.B,

29.49%,

1/19/25

..

75

77

991719174.UG.FTS.B,

29.49%,

1/19/25

..

1,475

1,496

991721177.UG.FTS.B,

29.49%,

1/19/25

..

81

80

991721350.UG.FTS.B,

29.49%,

1/19/25

..

2,051

2,095

991732729.UG.FTS.B,

29.49%,

1/19/25

..

341

342

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991741346.UG.FTS.B,

29.49%,

1/19/25

..

$

79

$

82

991742324.UG.FTS.B,

29.49%,

1/19/25

..

17

17

991755764.UG.FTS.B,

29.49%,

1/19/25

..

44

45

991764318.UG.FTS.B,

29.49%,

1/19/25

..

76

78

991766229.UG.FTS.B,

29.49%,

1/19/25

..

178

182

991767220.UG.FTS.B,

29.49%,

1/19/25

..

43

43

991769796.UG.FTS.B,

29.49%,

1/19/25

..

127

130

991771466.UG.FTS.B,

29.49%,

1/19/25

..

163

167

991771666.UG.FTS.B,

29.49%,

1/19/25

..

420

426

991772043.UG.FTS.B,

29.49%,

1/19/25

..

93

97

991772473.UG.FTS.B,

29.49%,

1/19/25

..

–

–

991773161.UG.FTS.B,

29.49%,

1/19/25

..

410

419

991773734.UG.FTS.B,

29.49%,

1/19/25

..

48

49

991773773.UG.FTS.B,

29.49%,

1/19/25

..

327

335

991776470.UG.FTS.B,

29.49%,

1/19/25

..

11

11

991780141.UG.FTS.B,

29.49%,

1/19/25

..

57

58

991782580.UG.FTS.B,

29.49%,

1/19/25

..

98

100

991783428.UG.FTS.B,

29.49%,

1/19/25

..

1,722

1,761

991783464.UG.FTS.B,

29.49%,

1/19/25

..

1,575

1,230

991546098.UG.FTS.B,

Zero

Cpn,

1/20/25

.

831

58

991546205.UG.FTS.B,

Zero

Cpn,

1/20/25

.

287

20

991547018.UG.FTS.B,

Zero

Cpn,

1/20/25

.

163

12

991548849.UG.FTS.B,

Zero

Cpn,

1/20/25

.

141

10

991549440.UG.FTS.B,

Zero

Cpn,

1/20/25

.

469

32

991553785.UG.FTS.B,

Zero

Cpn,

1/20/25

.

248

18

991556570.UG.FTS.B,

Zero

Cpn,

1/20/25

.

493

34

991571963.UG.FTS.B,

Zero

Cpn,

1/20/25

.

130

9

991575245.UG.FTS.B,

Zero

Cpn,

1/20/25

.

401

28

991588371.UG.FTS.B,

Zero

Cpn,

1/20/25

.

566

39

991598017.UG.FTS.B,

Zero

Cpn,

1/20/25

.

448

31

991600110.UG.FTS.B,

Zero

Cpn,

1/20/25

.

933

65

991607039.UG.FTS.B,

Zero

Cpn,

1/20/25

.

32

2

991642455.UG.FTS.B,

Zero

Cpn,

1/20/25

.

110

8

991654599.UG.FTS.B,

Zero

Cpn,

1/20/25

.

68

5

991663116.UG.FTS.B,

Zero

Cpn,

1/20/25

.

68

5

991674402.UG.FTS.B,

Zero

Cpn,

1/20/25

.

930

65

991713510.UG.FTS.B,

Zero

Cpn,

1/20/25

.

352

25

991739576.UG.FTS.B,

Zero

Cpn,

1/20/25

.

925

64

991749486.UG.FTS.B,

Zero

Cpn,

1/20/25

.

243

17

991758753.UG.FTS.B,

Zero

Cpn,

1/20/25

.

107

7

991771072.UG.FTS.B,

Zero

Cpn,

1/20/25

.

288

20

991772041.UG.FTS.B,

Zero

Cpn,

1/20/25

.

368

25

991787423.UG.FTS.B,

14.98%,

1/20/25

..

525

526

991564814.UG.FTS.B,

16.99%,

1/20/25

..

72

71

991546373.UG.FTS.B,

19.99%,

1/20/25

..

55

55

991546444.UG.FTS.B,

19.99%,

1/20/25

..

15

15

991550110.UG.FTS.B,

19.99%,

1/20/25

..

324

337

991550463.UG.FTS.B,

19.99%,

1/20/25

..

1,622

1,686

991551168.UG.FTS.B,

19.99%,

1/20/25

..

1,924

1,991

991553870.UG.FTS.B,

19.99%,

1/20/25

..

42

43

991556459.UG.FTS.B,

19.99%,

1/20/25

..

491

35

991558664.UG.FTS.B,

19.99%,

1/20/25

..

378

387

991560098.UG.FTS.B,

19.99%,

1/20/25

..

180

185

991561880.UG.FTS.B,

19.99%,

1/20/25

..

23

23

991563863.UG.FTS.B,

19.99%,

1/20/25

..

335

343

991567021.UG.FTS.B,

19.99%,

1/20/25

..

444

461

991569516.UG.FTS.B,

19.99%,

1/20/25

..

930

965

991571519.UG.FTS.B,

19.99%,

1/20/25

..

42

41

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

115

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991575551.UG.FTS.B,

19.99%,

1/20/25

..

$

1,093

$

1,135

991575610.UG.FTS.B,

19.99%,

1/20/25

..

2,173

2,118

991575708.UG.FTS.B,

19.99%,

1/20/25

..

171

173

991579043.UG.FTS.B,

19.99%,

1/20/25

..

1,551

1,512

991579154.UG.FTS.B,

19.99%,

1/20/25

..

164

171

991579762.UG.FTS.B,

19.99%,

1/20/25

..

266

276

991580041.UG.FTS.B,

19.99%,

1/20/25

..

372

375

991580804.UG.FTS.B,

19.99%,

1/20/25

..

101

101

991580969.UG.FTS.B,

19.99%,

1/20/25

..

1,144

1,179

991586791.UG.FTS.B,

19.99%,

1/20/25

..

258

268

991589726.UG.FTS.B,

19.99%,

1/20/25

..

56

57

991591112.UG.FTS.B,

19.99%,

1/20/25

..

315

322

991592818.UG.FTS.B,

19.99%,

1/20/25

..

37

37

991601962.UG.FTS.B,

19.99%,

1/20/25

..

1,116

1,124

991604556.UG.FTS.B,

19.99%,

1/20/25

..

324

23

991611311.UG.FTS.B,

19.99%,

1/20/25

..

50

50

991612039.UG.FTS.B,

19.99%,

1/20/25

..

148

151

991613122.UG.FTS.B,

19.99%,

1/20/25

..

219

228

991615000.UG.FTS.B,

19.99%,

1/20/25

..

425

442

991626332.UG.FTS.B,

19.99%,

1/20/25

..

471

488

991627626.UG.FTS.B,

19.99%,

1/20/25

..

54

54

991633379.UG.FTS.B,

19.99%,

1/20/25

..

60

49

991635746.UG.FTS.B,

19.99%,

1/20/25

..

439

439

991642370.UG.FTS.B,

19.99%,

1/20/25

..

267

278

991643091.UG.FTS.B,

19.99%,

1/20/25

..

4

4

991646361.UG.FTS.B,

19.99%,

1/20/25

..

249

256

991648690.UG.FTS.B,

19.99%,

1/20/25

..

109

112

991650312.UG.FTS.B,

19.99%,

1/20/25

..

280

286

991666023.UG.FTS.B,

19.99%,

1/20/25

..

203

209

991674508.UG.FTS.B,

19.99%,

1/20/25

..

18

18

991676336.UG.FTS.B,

19.99%,

1/20/25

..

146

149

991679884.UG.FTS.B,

19.99%,

1/20/25

..

–

–

991699684.UG.FTS.B,

19.99%,

1/20/25

..

140

144

991737545.UG.FTS.B,

19.99%,

1/20/25

..

351

361

991751909.UG.FTS.B,

19.99%,

1/20/25

..

160

164

991756492.UG.FTS.B,

19.99%,

1/20/25

..

53

54

991700996.UG.FTS.B,

23.95%,

1/20/25

..

320

40

991674160.UG.FTS.B,

25.95%,

1/20/25

..

219

149

991717340.UG.FTS.B,

25.95%,

1/20/25

..

183

183

991545216.UG.FTS.B,

26.94%,

1/20/25

..

124

123

991552205.UG.FTS.B,

26.94%,

1/20/25

..

89

65

991557467.UG.FTS.B,

26.94%,

1/20/25

..

105

14

991696729.UG.FTS.B,

26.94%,

1/20/25

..

357

353

991548836.UG.FTS.B,

27.95%,

1/20/25

..

1

1

991693406.UG.FTS.B,

27.95%,

1/20/25

..

1,167

1,188

991743185.UG.FTS.B,

27.95%,

1/20/25

..

19

20

991552965.UG.FTS.B,

27.99%,

1/20/25

..

183

190

991567052.UG.FTS.B,

27.99%,

1/20/25

..

91

95

991626627.UG.FTS.B,

27.99%,

1/20/25

..

186

40

991633013.UG.FTS.B,

27.99%,

1/20/25

..

–

–

991646119.UG.FTS.B,

27.99%,

1/20/25

..

428

(13)

991653855.UG.FTS.B,

27.99%,

1/20/25

..

264

273

991682363.UG.FTS.B,

27.99%,

1/20/25

..

1,913

1,975

991723012.UG.FTS.B,

27.99%,

1/20/25

..

410

420

991744999.UG.FTS.B,

27.99%,

1/20/25

..

9

9

991544408.UG.FTS.B,

28.98%,

1/20/25

..

112

116

991544416.UG.FTS.B,

28.98%,

1/20/25

..

992

993

991544778.UG.FTS.B,

28.98%,

1/20/25

..

64

65

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991545880.UG.FTS.B,

28.98%,

1/20/25

..

$

88

$

91

991545892.UG.FTS.B,

28.98%,

1/20/25

..

121

121

991546136.UG.FTS.B,

28.98%,

1/20/25

..

86

86

991546636.UG.FTS.B,

28.98%,

1/20/25

..

104

108

991547172.UG.FTS.B,

28.98%,

1/20/25

..

2,339

2,429

991547409.UG.FTS.B,

28.98%,

1/20/25

..

93

97

991547592.UG.FTS.B,

28.98%,

1/20/25

..

5,180

356

991547593.UG.FTS.B,

28.98%,

1/20/25

..

294

305

991547613.UG.FTS.B,

28.98%,

1/20/25

..

–

–

991547777.UG.FTS.B,

28.98%,

1/20/25

..

215

217

991550332.UG.FTS.B,

28.98%,

1/20/25

..

199

206

991551896.UG.FTS.B,

28.98%,

1/20/25

..

173

12

991552067.UG.FTS.B,

28.98%,

1/20/25

..

68

70

991552315.UG.FTS.B,

28.98%,

1/20/25

..

1,250

1,298

991552893.UG.FTS.B,

28.98%,

1/20/25

..

492

508

991553649.UG.FTS.B,

28.98%,

1/20/25

..

1,257

1,305

991554237.UG.FTS.B,

28.98%,

1/20/25

..

89

92

991554385.UG.FTS.B,

28.98%,

1/20/25

..

318

330

991555935.UG.FTS.B,

28.98%,

1/20/25

..

203

2

991555984.UG.FTS.B,

28.98%,

1/20/25

..

31

31

991556261.UG.FTS.B,

28.98%,

1/20/25

..

933

955

991556547.UG.FTS.B,

28.98%,

1/20/25

..

135

141

991557051.UG.FTS.B,

28.98%,

1/20/25

..

191

198

991557666.UG.FTS.B,

28.98%,

1/20/25

..

1,257

1,282

991557793.UG.FTS.B,

28.98%,

1/20/25

..

401

410

991557809.UG.FTS.B,

28.98%,

1/20/25

..

109

113

991558124.UG.FTS.B,

28.98%,

1/20/25

..

25

25

991558482.UG.FTS.B,

28.98%,

1/20/25

..

1,654

1,717

991558522.UG.FTS.B,

28.98%,

1/20/25

..

167

174

991559055.UG.FTS.B,

28.98%,

1/20/25

..

3,734

3,767

991559725.UG.FTS.B,

28.98%,

1/20/25

..

711

738

991560150.UG.FTS.B,

28.98%,

1/20/25

..

106

109

991561317.UG.FTS.B,

28.98%,

1/20/25

..

13

13

991561334.UG.FTS.B,

28.98%,

1/20/25

..

445

462

991561686.UG.FTS.B,

28.98%,

1/20/25

..

217

213

991562380.UG.FTS.B,

28.98%,

1/20/25

..

209

217

991563837.UG.FTS.B,

28.98%,

1/20/25

..

668

693

991563880.UG.FTS.B,

28.98%,

1/20/25

..

92

90

991564330.UG.FTS.B,

28.98%,

1/20/25

..

120

125

991564566.UG.FTS.B,

28.98%,

1/20/25

..

75

77

991565562.UG.FTS.B,

28.98%,

1/20/25

..

895

916

991566285.UG.FTS.B,

28.98%,

1/20/25

..

246

256

991567188.UG.FTS.B,

28.98%,

1/20/25

..

102

7

991567575.UG.FTS.B,

28.98%,

1/20/25

..

101

68

991568378.UG.FTS.B,

28.98%,

1/20/25

..

310

317

991568849.UG.FTS.B,

28.98%,

1/20/25

..

155

161

991568936.UG.FTS.B,

28.98%,

1/20/25

..

293

304

991569159.UG.FTS.B,

28.98%,

1/20/25

..

71

72

991570565.UG.FTS.B,

28.98%,

1/20/25

..

127

131

991571433.UG.FTS.B,

28.98%,

1/20/25

..

171

177

991572088.UG.FTS.B,

28.98%,

1/20/25

..

521

541

991572223.UG.FTS.B,

28.98%,

1/20/25

..

1,176

1,221

991572292.UG.FTS.B,

28.98%,

1/20/25

..

68

70

991572711.UG.FTS.B,

28.98%,

1/20/25

..

–

–

991572818.UG.FTS.B,

28.98%,

1/20/25

..

30

30

991575019.UG.FTS.B,

28.98%,

1/20/25

..

501

520

991575102.UG.FTS.B,

28.98%,

1/20/25

..

1,231

1,279

991575747.UG.FTS.B,

28.98%,

1/20/25

..

69

69

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991576855.UG.FTS.B,

28.98%,

1/20/25

..

$

2,027

$

2,077

991578462.UG.FTS.B,

28.98%,

1/20/25

..

49

50

991578599.UG.FTS.B,

28.98%,

1/20/25

..

4

4

991579033.UG.FTS.B,

28.98%,

1/20/25

..

188

195

991580332.UG.FTS.B,

28.98%,

1/20/25

..

444

457

991580751.UG.FTS.B,

28.98%,

1/20/25

..

324

326

991581464.UG.FTS.B,

28.98%,

1/20/25

..

655

680

991581893.UG.FTS.B,

28.98%,

1/20/25

..

334

347

991582316.UG.FTS.B,

28.98%,

1/20/25

..

582

604

991583116.UG.FTS.B,

28.98%,

1/20/25

..

325

337

991583574.UG.FTS.B,

28.98%,

1/20/25

..

164

164

991584117.UG.FTS.B,

28.98%,

1/20/25

..

654

668

991586736.UG.FTS.B,

28.98%,

1/20/25

..

160

159

991588111.UG.FTS.B,

28.98%,

1/20/25

..

177

180

991589534.UG.FTS.B,

28.98%,

1/20/25

..

498

517

991589805.UG.FTS.B,

28.98%,

1/20/25

..

59

60

991590552.UG.FTS.B,

28.98%,

1/20/25

..

378

393

991591207.UG.FTS.B,

28.98%,

1/20/25

..

84

86

991591623.UG.FTS.B,

28.98%,

1/20/25

..

97

99

991592663.UG.FTS.B,

28.98%,

1/20/25

..

157

163

991593515.UG.FTS.B,

28.98%,

1/20/25

..

628

633

991593668.UG.FTS.B,

28.98%,

1/20/25

..

233

235

991593747.UG.FTS.B,

28.98%,

1/20/25

..

25

25

991594115.UG.FTS.B,

28.98%,

1/20/25

..

930

966

991594754.UG.FTS.B,

28.98%,

1/20/25

..

534

554

991594803.UG.FTS.B,

28.98%,

1/20/25

..

258

264

991598284.UG.FTS.B,

28.98%,

1/20/25

..

217

223

991598888.UG.FTS.B,

28.98%,

1/20/25

..

10

10

991599195.UG.FTS.B,

28.98%,

1/20/25

..

981

69

991601320.UG.FTS.B,

28.98%,

1/20/25

..

832

864

991602419.UG.FTS.B,

28.98%,

1/20/25

..

578

600

991602891.UG.FTS.B,

28.98%,

1/20/25

..

101

105

991603544.UG.FTS.B,

28.98%,

1/20/25

..

–

–

991603854.UG.FTS.B,

28.98%,

1/20/25

..

343

356

991604383.UG.FTS.B,

28.98%,

1/20/25

..

23

23

991604545.UG.FTS.B,

28.98%,

1/20/25

..

234

241

991604665.UG.FTS.B,

28.98%,

1/20/25

..

199

206

991606337.UG.FTS.B,

28.98%,

1/20/25

..

121

121

991608131.UG.FTS.B,

28.98%,

1/20/25

..

186

193

991608902.UG.FTS.B,

28.98%,

1/20/25

..

832

854

991609515.UG.FTS.B,

28.98%,

1/20/25

..

416

432

991609600.UG.FTS.B,

28.98%,

1/20/25

..

1,298

187

991610945.UG.FTS.B,

28.98%,

1/20/25

..

15

15

991612372.UG.FTS.B,

28.98%,

1/20/25

..

10

10

991613998.UG.FTS.B,

28.98%,

1/20/25

..

500

519

991616232.UG.FTS.B,

28.98%,

1/20/25

..

149

153

991617276.UG.FTS.B,

28.98%,

1/20/25

..

5,438

5,643

991617883.UG.FTS.B,

28.98%,

1/20/25

..

1,246

1,293

991620442.UG.FTS.B,

28.98%,

1/20/25

..

–

–

991621078.UG.FTS.B,

28.98%,

1/20/25

..

258

259

991624075.UG.FTS.B,

28.98%,

1/20/25

..

4

4

991625260.UG.FTS.B,

28.98%,

1/20/25

..

123

126

991628122.UG.FTS.B,

28.98%,

1/20/25

..

101

105

991628873.UG.FTS.B,

28.98%,

1/20/25

..

267

277

991629144.UG.FTS.B,

28.98%,

1/20/25

..

582

601

991630278.UG.FTS.B,

28.98%,

1/20/25

..

249

17

991631399.UG.FTS.B,

28.98%,

1/20/25

..

1,285

1,297

991631946.UG.FTS.B,

28.98%,

1/20/25

..

169

175

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991632637.UG.FTS.B,

28.98%,

1/20/25

..

$

48

$

49

991633593.UG.FTS.B,

28.98%,

1/20/25

..

61

62

991634045.UG.FTS.B,

28.98%,

1/20/25

..

148

153

991634258.UG.FTS.B,

28.98%,

1/20/25

..

658

682

991636177.UG.FTS.B,

28.98%,

1/20/25

..

48

49

991636767.UG.FTS.B,

28.98%,

1/20/25

..

7

7

991636848.UG.FTS.B,

28.98%,

1/20/25

..

148

148

991637075.UG.FTS.B,

28.98%,

1/20/25

..

–

–

991638060.UG.FTS.B,

28.98%,

1/20/25

..

66

65

991639978.UG.FTS.B,

28.98%,

1/20/25

..

171

176

991643294.UG.FTS.B,

28.98%,

1/20/25

..

167

171

991644226.UG.FTS.B,

28.98%,

1/20/25

..

40

41

991645700.UG.FTS.B,

28.98%,

1/20/25

..

1,134

1,151

991646775.UG.FTS.B,

28.98%,

1/20/25

..

96

7

991652664.UG.FTS.B,

28.98%,

1/20/25

..

53

53

991652792.UG.FTS.B,

28.98%,

1/20/25

..

71

72

991653273.UG.FTS.B,

28.98%,

1/20/25

..

147

150

991655177.UG.FTS.B,

28.98%,

1/20/25

..

683

709

991655284.UG.FTS.B,

28.98%,

1/20/25

..

74

76

991657177.UG.FTS.B,

28.98%,

1/20/25

..

2,566

2,627

991657299.UG.FTS.B,

28.98%,

1/20/25

..

3,311

3,437

991658226.UG.FTS.B,

28.98%,

1/20/25

..

828

850

991658495.UG.FTS.B,

28.98%,

1/20/25

..

189

2

991661646.UG.FTS.B,

28.98%,

1/20/25

..

360

363

991662576.UG.FTS.B,

28.98%,

1/20/25

..

399

409

991664351.UG.FTS.B,

28.98%,

1/20/25

..

246

251

991665002.UG.FTS.B,

28.98%,

1/20/25

..

1,037

1,076

991666441.UG.FTS.B,

28.98%,

1/20/25

..

414

429

991668194.UG.FTS.B,

28.98%,

1/20/25

..

499

517

991672473.UG.FTS.B,

28.98%,

1/20/25

..

275

284

991674562.UG.FTS.B,

28.98%,

1/20/25

..

637

44

991678497.UG.FTS.B,

28.98%,

1/20/25

..

97

101

991681420.UG.FTS.B,

28.98%,

1/20/25

..

54

53

991681601.UG.FTS.B,

28.98%,

1/20/25

..

338

348

991683543.UG.FTS.B,

28.98%,

1/20/25

..

1,668

1,675

991683658.UG.FTS.B,

28.98%,

1/20/25

..

70

72

991683859.UG.FTS.B,

28.98%,

1/20/25

..

21

3

991684690.UG.FTS.B,

28.98%,

1/20/25

..

321

332

991685455.UG.FTS.B,

28.98%,

1/20/25

..

204

211

991685698.UG.FTS.B,

28.98%,

1/20/25

..

651

46

991686339.UG.FTS.B,

28.98%,

1/20/25

..

200

205

991688152.UG.FTS.B,

28.98%,

1/20/25

..

164

170

991688819.UG.FTS.B,

28.98%,

1/20/25

..

354

363

991691824.UG.FTS.B,

28.98%,

1/20/25

..

124

129

991695244.UG.FTS.B,

28.98%,

1/20/25

..

62

63

991699863.UG.FTS.B,

28.98%,

1/20/25

..

22

22

991700400.UG.FTS.B,

28.98%,

1/20/25

..

11

11

991703498.UG.FTS.B,

28.98%,

1/20/25

..

243

249

991704987.UG.FTS.B,

28.98%,

1/20/25

..

83

86

991708940.UG.FTS.B,

28.98%,

1/20/25

..

66

68

991709725.UG.FTS.B,

28.98%,

1/20/25

..

81

84

991711174.UG.FTS.B,

28.98%,

1/20/25

..

85

87

991714721.UG.FTS.B,

28.98%,

1/20/25

..

30

31

991715023.UG.FTS.B,

28.98%,

1/20/25

..

114

117

991719591.UG.FTS.B,

28.98%,

1/20/25

..

411

421

991720648.UG.FTS.B,

28.98%,

1/20/25

..

658

674

991721888.UG.FTS.B,

28.98%,

1/20/25

..

955

66

991727362.UG.FTS.B,

28.98%,

1/20/25

..

196

201

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

117

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991731657.UG.FTS.B,

28.98%,

1/20/25

..

$

492

$

504

991731747.UG.FTS.B,

28.98%,

1/20/25

..

658

674

991734822.UG.FTS.B,

28.98%,

1/20/25

..

17

17

991736469.UG.FTS.B,

28.98%,

1/20/25

..

56

56

991737941.UG.FTS.B,

28.98%,

1/20/25

..

80

83

991740124.UG.FTS.B,

28.98%,

1/20/25

..

123

126

991740572.UG.FTS.B,

28.98%,

1/20/25

..

206

(9)

991743913.UG.FTS.B,

28.98%,

1/20/25

..

67

68

991744428.UG.FTS.B,

28.98%,

1/20/25

..

13

13

991745775.UG.FTS.B,

28.98%,

1/20/25

..

163

163

991746760.UG.FTS.B,

28.98%,

1/20/25

..

56

56

991750085.UG.FTS.B,

28.98%,

1/20/25

..

96

100

991752117.UG.FTS.B,

28.98%,

1/20/25

..

212

217

991760438.UG.FTS.B,

28.98%,

1/20/25

..

91

94

991764409.UG.FTS.B,

28.98%,

1/20/25

..

–

–

991766308.UG.FTS.B,

28.98%,

1/20/25

..

37

37

991772528.UG.FTS.B,

28.98%,

1/20/25

..

230

234

991773470.UG.FTS.B,

28.98%,

1/20/25

..

96

99

991773598.UG.FTS.B,

28.98%,

1/20/25

..

173

172

991773610.UG.FTS.B,

28.98%,

1/20/25

..

1,228

1,258

991773912.UG.FTS.B,

28.98%,

1/20/25

..

188

192

991775579.UG.FTS.B,

28.98%,

1/20/25

..

164

168

991775768.UG.FTS.B,

28.98%,

1/20/25

..

122

84

991784171.UG.FTS.B,

28.98%,

1/20/25

..

414

423

991544384.UG.FTS.B,

29.45%,

1/20/25

..

31

31

991544892.UG.FTS.B,

29.45%,

1/20/25

..

799

830

991546469.UG.FTS.B,

29.45%,

1/20/25

..

298

310

991590390.UG.FTS.B,

29.45%,

1/20/25

..

131

136

991598067.UG.FTS.B,

29.45%,

1/20/25

..

67

4

991658510.UG.FTS.B,

29.45%,

1/20/25

..

128

128

991661056.UG.FTS.B,

29.45%,

1/20/25

..

–

–

991703938.UG.FTS.B,

29.45%,

1/20/25

..

28

28

991708297.UG.FTS.B,

29.45%,

1/20/25

..

38

39

991749201.UG.FTS.B,

29.45%,

1/20/25

..

777

797

991760144.UG.FTS.B,

29.45%,

1/20/25

..

42

42

991546140.UG.FTS.B,

29.46%,

1/20/25

..

431

442

991552999.UG.FTS.B,

29.46%,

1/20/25

..

93

95

991554451.UG.FTS.B,

29.46%,

1/20/25

..

669

695

991556638.UG.FTS.B,

29.46%,

1/20/25

..

21

21

991556833.UG.FTS.B,

29.46%,

1/20/25

..

368

373

991558641.UG.FTS.B,

29.46%,

1/20/25

..

1,371

1,417

991572725.UG.FTS.B,

29.46%,

1/20/25

..

111

114

991577119.UG.FTS.B,

29.46%,

1/20/25

..

139

19

991588559.UG.FTS.B,

29.46%,

1/20/25

..

73

75

991607542.UG.FTS.B,

29.46%,

1/20/25

..

874

907

991638849.UG.FTS.B,

29.46%,

1/20/25

..

280

290

991649368.UG.FTS.B,

29.46%,

1/20/25

..

80

82

991666110.UG.FTS.B,

29.46%,

1/20/25

..

110

110

991715745.UG.FTS.B,

29.46%,

1/20/25

..

165

22

991559050.UG.FTS.B,

29.47%,

1/20/25

..

783

809

991561124.UG.FTS.B,

29.47%,

1/20/25

..

1,012

1,006

991570910.UG.FTS.B,

29.47%,

1/20/25

..

130

133

991584353.UG.FTS.B,

29.47%,

1/20/25

..

322

334

991584440.UG.FTS.B,

29.47%,

1/20/25

..

240

245

991649992.UG.FTS.B,

29.47%,

1/20/25

..

20

20

991658968.UG.FTS.B,

29.47%,

1/20/25

..

169

176

991702923.UG.FTS.B,

29.47%,

1/20/25

..

286

297

991544542.UG.FTS.B,

29.48%,

1/20/25

..

793

825

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991544991.UG.FTS.B,

29.48%,

1/20/25

..

$

302

$

290

991545016.UG.FTS.B,

29.48%,

1/20/25

..

637

663

991545229.UG.FTS.B,

29.48%,

1/20/25

..

154

152

991546168.UG.FTS.B,

29.48%,

1/20/25

..

242

251

991547692.UG.FTS.B,

29.48%,

1/20/25

..

97

101

991551664.UG.FTS.B,

29.48%,

1/20/25

..

75

74

991555928.UG.FTS.B,

29.48%,

1/20/25

..

238

244

991556918.UG.FTS.B,

29.48%,

1/20/25

..

35

35

991567953.UG.FTS.B,

29.48%,

1/20/25

..

142

97

991581207.UG.FTS.B,

29.48%,

1/20/25

..

99

(4)

991620084.UG.FTS.B,

29.48%,

1/20/25

..

298

46

991622988.UG.FTS.B,

29.48%,

1/20/25

..

121

125

991638325.UG.FTS.B,

29.48%,

1/20/25

..

2,726

2,699

991674255.UG.FTS.B,

29.48%,

1/20/25

..

1,321

1,374

991723769.UG.FTS.B,

29.48%,

1/20/25

..

61

62

991758718.UG.FTS.B,

29.48%,

1/20/25

..

101

101

991768186.UG.FTS.B,

29.48%,

1/20/25

..

325

323

991544296.UG.FTS.B,

29.49%,

1/20/25

..

279

20

991544466.UG.FTS.B,

29.49%,

1/20/25

..

304

314

991544749.UG.FTS.B,

29.49%,

1/20/25

..

708

723

991544865.UG.FTS.B,

29.49%,

1/20/25

..

286

286

991544945.UG.FTS.B,

29.49%,

1/20/25

..

370

385

991545269.UG.FTS.B,

29.49%,

1/20/25

..

1,845

1,917

991545817.UG.FTS.B,

29.49%,

1/20/25

..

74

74

991545907.UG.FTS.B,

29.49%,

1/20/25

..

224

16

991546088.UG.FTS.B,

29.49%,

1/20/25

..

5

5

991546174.UG.FTS.B,

29.49%,

1/20/25

..

1,518

1,563

991546669.UG.FTS.B,

29.49%,

1/20/25

..

163

162

991547049.UG.FTS.B,

29.49%,

1/20/25

..

164

171

991547329.UG.FTS.B,

29.49%,

1/20/25

..

120

125

991547440.UG.FTS.B,

29.49%,

1/20/25

..

162

165

991547641.UG.FTS.B,

29.49%,

1/20/25

..

160

163

991547872.UG.FTS.B,

29.49%,

1/20/25

..

620

636

991547930.UG.FTS.B,

29.49%,

1/20/25

..

63

64

991548160.UG.FTS.B,

29.49%,

1/20/25

..

42

41

991548200.UG.FTS.B,

29.49%,

1/20/25

..

505

505

991549454.UG.FTS.B,

29.49%,

1/20/25

..

587

610

991549497.UG.FTS.B,

29.49%,

1/20/25

..

40

40

991551039.UG.FTS.B,

29.49%,

1/20/25

..

2,301

2,396

991551322.UG.FTS.B,

29.49%,

1/20/25

..

48

40

991552397.UG.FTS.B,

29.49%,

1/20/25

..

166

173

991552851.UG.FTS.B,

29.49%,

1/20/25

..

84

6

991552919.UG.FTS.B,

29.49%,

1/20/25

..

140

10

991553040.UG.FTS.B,

29.49%,

1/20/25

..

11

11

991553132.UG.FTS.B,

29.49%,

1/20/25

..

168

172

991553203.UG.FTS.B,

29.49%,

1/20/25

..

14

14

991553377.UG.FTS.B,

29.49%,

1/20/25

..

277

20

991553440.UG.FTS.B,

29.49%,

1/20/25

..

35

6

991553841.UG.FTS.B,

29.49%,

1/20/25

..

126

128

991553912.UG.FTS.B,

29.49%,

1/20/25

..

107

111

991554242.UG.FTS.B,

29.49%,

1/20/25

..

160

166

991554925.UG.FTS.B,

29.49%,

1/20/25

..

20

20

991555165.UG.FTS.B,

29.49%,

1/20/25

..

182

190

991555378.UG.FTS.B,

29.49%,

1/20/25

..

114

115

991555653.UG.FTS.B,

29.49%,

1/20/25

..

2,216

2,303

991556119.UG.FTS.B,

29.49%,

1/20/25

..

98

13

991556192.UG.FTS.B,

29.49%,

1/20/25

..

14

14

991556819.UG.FTS.B,

29.49%,

1/20/25

..

221

228

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991556896.UG.FTS.B,

29.49%,

1/20/25

..

$

624

$

632

991557327.UG.FTS.B,

29.49%,

1/20/25

..

837

871

991557621.UG.FTS.B,

29.49%,

1/20/25

..

890

877

991557786.UG.FTS.B,

29.49%,

1/20/25

..

1,442

1,492

991559618.UG.FTS.B,

29.49%,

1/20/25

..

51

52

991559863.UG.FTS.B,

29.49%,

1/20/25

..

293

304

991560412.UG.FTS.B,

29.49%,

1/20/25

..

980

69

991561412.UG.FTS.B,

29.49%,

1/20/25

..

1,047

1,087

991561854.UG.FTS.B,

29.49%,

1/20/25

..

55

56

991562352.UG.FTS.B,

29.49%,

1/20/25

..

73

75

991562399.UG.FTS.B,

29.49%,

1/20/25

..

106

107

991562787.UG.FTS.B,

29.49%,

1/20/25

..

2,045

2,113

991562985.UG.FTS.B,

29.49%,

1/20/25

..

286

298

991563323.UG.FTS.B,

29.49%,

1/20/25

..

27

27

991563493.UG.FTS.B,

29.49%,

1/20/25

..

185

24

991563554.UG.FTS.B,

29.49%,

1/20/25

..

73

74

991563558.UG.FTS.B,

29.49%,

1/20/25

..

40

41

991564043.UG.FTS.B,

29.49%,

1/20/25

..

55

54

991564059.UG.FTS.B,

29.49%,

1/20/25

..

675

695

991564184.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991564267.UG.FTS.B,

29.49%,

1/20/25

..

443

(21)

991565422.UG.FTS.B,

29.49%,

1/20/25

..

110

115

991565868.UG.FTS.B,

29.49%,

1/20/25

..

470

488

991567540.UG.FTS.B,

29.49%,

1/20/25

..

161

168

991568535.UG.FTS.B,

29.49%,

1/20/25

..

577

599

991568889.UG.FTS.B,

29.49%,

1/20/25

..

7

7

991568891.UG.FTS.B,

29.49%,

1/20/25

..

36

36

991569010.UG.FTS.B,

29.49%,

1/20/25

..

44

44

991569026.UG.FTS.B,

29.49%,

1/20/25

..

53

54

991569591.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991570132.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991570228.UG.FTS.B,

29.49%,

1/20/25

..

148

154

991570854.UG.FTS.B,

29.49%,

1/20/25

..

194

199

991571176.UG.FTS.B,

29.49%,

1/20/25

..

128

133

991571596.UG.FTS.B,

29.49%,

1/20/25

..

6

6

991572440.UG.FTS.B,

29.49%,

1/20/25

..

134

131

991573331.UG.FTS.B,

29.49%,

1/20/25

..

105

105

991573625.UG.FTS.B,

29.49%,

1/20/25

..

422

437

991574790.UG.FTS.B,

29.49%,

1/20/25

..

879

115

991575006.UG.FTS.B,

29.49%,

1/20/25

..

108

111

991575963.UG.FTS.B,

29.49%,

1/20/25

..

147

151

991576324.UG.FTS.B,

29.49%,

1/20/25

..

2,541

2,639

991576385.UG.FTS.B,

29.49%,

1/20/25

..

224

31

991576865.UG.FTS.B,

29.49%,

1/20/25

..

35

35

991577211.UG.FTS.B,

29.49%,

1/20/25

..

214

216

991577516.UG.FTS.B,

29.49%,

1/20/25

..

184

184

991577542.UG.FTS.B,

29.49%,

1/20/25

..

69

71

991578455.UG.FTS.B,

29.49%,

1/20/25

..

485

505

991578944.UG.FTS.B,

29.49%,

1/20/25

..

178

185

991579988.UG.FTS.B,

29.49%,

1/20/25

..

154

157

991581013.UG.FTS.B,

29.49%,

1/20/25

..

36

36

991581102.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991581619.UG.FTS.B,

29.49%,

1/20/25

..

91

67

991581659.UG.FTS.B,

29.49%,

1/20/25

..

836

871

991582174.UG.FTS.B,

29.49%,

1/20/25

..

141

145

991582980.UG.FTS.B,

29.49%,

1/20/25

..

200

207

991583081.UG.FTS.B,

29.49%,

1/20/25

..

126

129

991583340.UG.FTS.B,

29.49%,

1/20/25

..

134

140

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991583430.UG.FTS.B,

29.49%,

1/20/25

..

$

321

$

334

991583502.UG.FTS.B,

29.49%,

1/20/25

..

42

42

991584191.UG.FTS.B,

29.49%,

1/20/25

..

1,101

1,142

991584247.UG.FTS.B,

29.49%,

1/20/25

..

651

679

991584881.UG.FTS.B,

29.49%,

1/20/25

..

162

167

991585152.UG.FTS.B,

29.49%,

1/20/25

..

108

77

991585266.UG.FTS.B,

29.49%,

1/20/25

..

31

31

991585812.UG.FTS.B,

29.49%,

1/20/25

..

81

61

991586560.UG.FTS.B,

29.49%,

1/20/25

..

151

103

991586964.UG.FTS.B,

29.49%,

1/20/25

..

159

165

991587665.UG.FTS.B,

29.49%,

1/20/25

..

106

103

991587677.UG.FTS.B,

29.49%,

1/20/25

..

694

707

991588325.UG.FTS.B,

29.49%,

1/20/25

..

195

199

991588365.UG.FTS.B,

29.49%,

1/20/25

..

966

86

991590187.UG.FTS.B,

29.49%,

1/20/25

..

14

14

991590941.UG.FTS.B,

29.49%,

1/20/25

..

47

47

991591604.UG.FTS.B,

29.49%,

1/20/25

..

4

4

991591834.UG.FTS.B,

29.49%,

1/20/25

..

180

187

991592214.UG.FTS.B,

29.49%,

1/20/25

..

220

223

991592285.UG.FTS.B,

29.49%,

1/20/25

..

179

185

991592560.UG.FTS.B,

29.49%,

1/20/25

..

210

218

991592747.UG.FTS.B,

29.49%,

1/20/25

..

80

(3)

991593701.UG.FTS.B,

29.49%,

1/20/25

..

29

29

991593970.UG.FTS.B,

29.49%,

1/20/25

..

1,018

1,058

991595841.UG.FTS.B,

29.49%,

1/20/25

..

150

155

991596754.UG.FTS.B,

29.49%,

1/20/25

..

168

166

991596930.UG.FTS.B,

29.49%,

1/20/25

..

127

128

991597280.UG.FTS.B,

29.49%,

1/20/25

..

6

6

991598360.UG.FTS.B,

29.49%,

1/20/25

..

192

200

991598583.UG.FTS.B,

29.49%,

1/20/25

..

104

107

991598790.UG.FTS.B,

29.49%,

1/20/25

..

265

265

991600631.UG.FTS.B,

29.49%,

1/20/25

..

257

266

991601559.UG.FTS.B,

29.49%,

1/20/25

..

417

433

991601943.UG.FTS.B,

29.49%,

1/20/25

..

33

33

991603035.UG.FTS.B,

29.49%,

1/20/25

..

288

289

991604392.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991604598.UG.FTS.B,

29.49%,

1/20/25

..

45

4

991605838.UG.FTS.B,

29.49%,

1/20/25

..

19

18

991605866.UG.FTS.B,

29.49%,

1/20/25

..

370

384

991605989.UG.FTS.B,

29.49%,

1/20/25

..

1

1

991606116.UG.FTS.B,

29.49%,

1/20/25

..

185

(7)

991606376.UG.FTS.B,

29.49%,

1/20/25

..

19

19

991606518.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991606975.UG.FTS.B,

29.49%,

1/20/25

..

125

126

991607008.UG.FTS.B,

29.49%,

1/20/25

..

223

219

991608556.UG.FTS.B,

29.49%,

1/20/25

..

69

6

991609620.UG.FTS.B,

29.49%,

1/20/25

..

458

(18)

991610063.UG.FTS.B,

29.49%,

1/20/25

..

500

520

991611813.UG.FTS.B,

29.49%,

1/20/25

..

13

13

991612642.UG.FTS.B,

29.49%,

1/20/25

..

64

66

991612971.UG.FTS.B,

29.49%,

1/20/25

..

137

143

991613184.UG.FTS.B,

29.49%,

1/20/25

..

1

1

991614076.UG.FTS.B,

29.49%,

1/20/25

..

1,078

1,119

991614750.UG.FTS.B,

29.49%,

1/20/25

..

280

(6)

991615755.UG.FTS.B,

29.49%,

1/20/25

..

166

172

991616553.UG.FTS.B,

29.49%,

1/20/25

..

117

122

991617017.UG.FTS.B,

29.49%,

1/20/25

..

24

25

991617166.UG.FTS.B,

29.49%,

1/20/25

..

504

506

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

119

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991617238.UG.FTS.B,

29.49%,

1/20/25

..

$

399

$

416

991617328.UG.FTS.B,

29.49%,

1/20/25

..

2,080

2,161

991617793.UG.FTS.B,

29.49%,

1/20/25

..

200

208

991619887.UG.FTS.B,

29.49%,

1/20/25

..

168

170

991620217.UG.FTS.B,

29.49%,

1/20/25

..

92

95

991620724.UG.FTS.B,

29.49%,

1/20/25

..

675

(32)

991620842.UG.FTS.B,

29.49%,

1/20/25

..

473

486

991621352.UG.FTS.B,

29.49%,

1/20/25

..

367

382

991621428.UG.FTS.B,

29.49%,

1/20/25

..

15

15

991624706.UG.FTS.B,

29.49%,

1/20/25

..

302

314

991624810.UG.FTS.B,

29.49%,

1/20/25

..

298

308

991625388.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991625976.UG.FTS.B,

29.49%,

1/20/25

..

172

178

991626310.UG.FTS.B,

29.49%,

1/20/25

..

238

236

991628720.UG.FTS.B,

29.49%,

1/20/25

..

75

77

991629054.UG.FTS.B,

29.49%,

1/20/25

..

134

139

991629363.UG.FTS.B,

29.49%,

1/20/25

..

77

5

991629958.UG.FTS.B,

29.49%,

1/20/25

..

16

16

991631113.UG.FTS.B,

29.49%,

1/20/25

..

144

150

991632109.UG.FTS.B,

29.49%,

1/20/25

..

155

(5)

991632522.UG.FTS.B,

29.49%,

1/20/25

..

55

56

991633281.UG.FTS.B,

29.49%,

1/20/25

..

157

163

991639454.UG.FTS.B,

29.49%,

1/20/25

..

48

48

991644250.UG.FTS.B,

29.49%,

1/20/25

..

73

75

991646997.UG.FTS.B,

29.49%,

1/20/25

..

11

11

991648065.UG.FTS.B,

29.49%,

1/20/25

..

197

204

991654187.UG.FTS.B,

29.49%,

1/20/25

..

199

202

991654619.UG.FTS.B,

29.49%,

1/20/25

..

869

897

991654755.UG.FTS.B,

29.49%,

1/20/25

..

231

232

991655092.UG.FTS.B,

29.49%,

1/20/25

..

748

771

991655877.UG.FTS.B,

29.49%,

1/20/25

..

108

112

991656048.UG.FTS.B,

29.49%,

1/20/25

..

281

291

991656357.UG.FTS.B,

29.49%,

1/20/25

..

554

567

991656434.UG.FTS.B,

29.49%,

1/20/25

..

426

435

991657357.UG.FTS.B,

29.49%,

1/20/25

..

1,575

1,641

991658873.UG.FTS.B,

29.49%,

1/20/25

..

19

19

991659587.UG.FTS.B,

29.49%,

1/20/25

..

181

184

991660055.UG.FTS.B,

29.49%,

1/20/25

..

24

24

991660718.UG.FTS.B,

29.49%,

1/20/25

..

363

240

991662133.UG.FTS.B,

29.49%,

1/20/25

..

31

31

991663176.UG.FTS.B,

29.49%,

1/20/25

..

115

118

991663567.UG.FTS.B,

29.49%,

1/20/25

..

200

199

991666604.UG.FTS.B,

29.49%,

1/20/25

..

828

860

991668579.UG.FTS.B,

29.49%,

1/20/25

..

167

12

991668949.UG.FTS.B,

29.49%,

1/20/25

..

73

76

991670103.UG.FTS.B,

29.49%,

1/20/25

..

835

867

991672222.UG.FTS.B,

29.49%,

1/20/25

..

412

427

991672277.UG.FTS.B,

29.49%,

1/20/25

..

56

57

991676079.UG.FTS.B,

29.49%,

1/20/25

..

338

352

991678111.UG.FTS.B,

29.49%,

1/20/25

..

421

423

991679088.UG.FTS.B,

29.49%,

1/20/25

..

563

577

991681019.UG.FTS.B,

29.49%,

1/20/25

..

1,237

1,284

991682846.UG.FTS.B,

29.49%,

1/20/25

..

164

170

991686039.UG.FTS.B,

29.49%,

1/20/25

..

313

322

991689785.UG.FTS.B,

29.49%,

1/20/25

..

122

122

991690090.UG.FTS.B,

29.49%,

1/20/25

..

215

219

991691908.UG.FTS.B,

29.49%,

1/20/25

..

661

687

991692117.UG.FTS.B,

29.49%,

1/20/25

..

117

(6)

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991692295.UG.FTS.B,

29.49%,

1/20/25

..

$

145

$

143

991692468.UG.FTS.B,

29.49%,

1/20/25

..

180

184

991692717.UG.FTS.B,

29.49%,

1/20/25

..

104

108

991693352.UG.FTS.B,

29.49%,

1/20/25

..

73

75

991693696.UG.FTS.B,

29.49%,

1/20/25

..

295

300

991696161.UG.FTS.B,

29.49%,

1/20/25

..

252

261

991698984.UG.FTS.B,

29.49%,

1/20/25

..

27

27

991702622.UG.FTS.B,

29.49%,

1/20/25

..

114

118

991704174.UG.FTS.B,

29.49%,

1/20/25

..

101

103

991704331.UG.FTS.B,

29.49%,

1/20/25

..

102

106

991704554.UG.FTS.B,

29.49%,

1/20/25

..

117

120

991705000.UG.FTS.B,

29.49%,

1/20/25

..

36

36

991706369.UG.FTS.B,

29.49%,

1/20/25

..

104

107

991706803.UG.FTS.B,

29.49%,

1/20/25

..

83

80

991708117.UG.FTS.B,

29.49%,

1/20/25

..

1,492

1,528

991709703.UG.FTS.B,

29.49%,

1/20/25

..

128

131

991710790.UG.FTS.B,

29.49%,

1/20/25

..

324

328

991712356.UG.FTS.B,

29.49%,

1/20/25

..

721

732

991714458.UG.FTS.B,

29.49%,

1/20/25

..

293

300

991715213.UG.FTS.B,

29.49%,

1/20/25

..

91

94

991715284.UG.FTS.B,

29.49%,

1/20/25

..

8

8

991716502.UG.FTS.B,

29.49%,

1/20/25

..

971

994

991716698.UG.FTS.B,

29.49%,

1/20/25

..

230

235

991717405.UG.FTS.B,

29.49%,

1/20/25

..

374

382

991717440.UG.FTS.B,

29.49%,

1/20/25

..

27

27

991718671.UG.FTS.B,

29.49%,

1/20/25

..

250

256

991718693.UG.FTS.B,

29.49%,

1/20/25

..

165

169

991718755.UG.FTS.B,

29.49%,

1/20/25

..

123

126

991720466.UG.FTS.B,

29.49%,

1/20/25

..

213

28

991724082.UG.FTS.B,

29.49%,

1/20/25

..

140

143

991724668.UG.FTS.B,

29.49%,

1/20/25

..

98

101

991724684.UG.FTS.B,

29.49%,

1/20/25

..

90

93

991726588.UG.FTS.B,

29.49%,

1/20/25

..

31

31

991726589.UG.FTS.B,

29.49%,

1/20/25

..

106

107

991729024.UG.FTS.B,

29.49%,

1/20/25

..

175

179

991729282.UG.FTS.B,

29.49%,

1/20/25

..

405

28

991729967.UG.FTS.B,

29.49%,

1/20/25

..

401

30

991730560.UG.FTS.B,

29.49%,

1/20/25

..

59

59

991731119.UG.FTS.B,

29.49%,

1/20/25

..

2,173

2,223

991731378.UG.FTS.B,

29.49%,

1/20/25

..

99

101

991731411.UG.FTS.B,

29.49%,

1/20/25

..

604

612

991731675.UG.FTS.B,

29.49%,

1/20/25

..

93

97

991733097.UG.FTS.B,

29.49%,

1/20/25

..

100

102

991733527.UG.FTS.B,

29.49%,

1/20/25

..

128

131

991734979.UG.FTS.B,

29.49%,

1/20/25

..

182

177

991735905.UG.FTS.B,

29.49%,

1/20/25

..

124

9

991736419.UG.FTS.B,

29.49%,

1/20/25

..

102

104

991737012.UG.FTS.B,

29.49%,

1/20/25

..

196

201

991740285.UG.FTS.B,

29.49%,

1/20/25

..

510

37

991740302.UG.FTS.B,

29.49%,

1/20/25

..

178

182

991740432.UG.FTS.B,

29.49%,

1/20/25

..

302

308

991742409.UG.FTS.B,

29.49%,

1/20/25

..

48

49

991742496.UG.FTS.B,

29.49%,

1/20/25

..

90

94

991743758.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991744616.UG.FTS.B,

29.49%,

1/20/25

..

69

71

991745338.UG.FTS.B,

29.49%,

1/20/25

..

123

126

991746498.UG.FTS.B,

29.49%,

1/20/25

..

106

109

991749746.UG.FTS.B,

29.49%,

1/20/25

..

822

833

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991753458.UG.FTS.B,

29.49%,

1/20/25

..

$

196

$

200

991754938.UG.FTS.B,

29.49%,

1/20/25

..

138

141

991758540.UG.FTS.B,

29.49%,

1/20/25

..

135

139

991760132.UG.FTS.B,

29.49%,

1/20/25

..

55

56

991766510.UG.FTS.B,

29.49%,

1/20/25

..

102

105

991766938.UG.FTS.B,

29.49%,

1/20/25

..

221

226

991769449.UG.FTS.B,

29.49%,

1/20/25

..

21

21

991769491.UG.FTS.B,

29.49%,

1/20/25

..

181

(7)

991770982.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991771215.UG.FTS.B,

29.49%,

1/20/25

..

175

179

991771844.UG.FTS.B,

29.49%,

1/20/25

..

115

117

991772146.UG.FTS.B,

29.49%,

1/20/25

..

100

103

991772216.UG.FTS.B,

29.49%,

1/20/25

..

172

22

991772619.UG.FTS.B,

29.49%,

1/20/25

..

–

–

991772908.UG.FTS.B,

29.49%,

1/20/25

..

656

671

991775501.UG.FTS.B,

29.49%,

1/20/25

..

311

313

991779911.UG.FTS.B,

29.49%,

1/20/25

..

23

23

991782254.UG.FTS.B,

29.49%,

1/20/25

..

1,261

1,294

991783396.UG.FTS.B,

29.49%,

1/20/25

..

410

419

991783888.UG.FTS.B,

29.49%,

1/20/25

..

77

80

991712502.UG.FTS.B,

Zero

Cpn,

1/21/25

.

139

10

991742798.UG.FTS.B,

Zero

Cpn,

1/21/25

.

77

5

991783537.UG.FTS.B,

Zero

Cpn,

1/21/25

.

184

13

991679126.UG.FTS.B,

14.98%,

1/21/25

..

253

256

991713284.UG.FTS.B,

15.97%,

1/21/25

..

119

118

991771238.UG.FTS.B,

16.99%,

1/21/25

..

674

684

991655053.UG.FTS.B,

17.99%,

1/21/25

..

6,793

6,932

991793260.UG.FTS.B,

17.99%,

1/21/25

..

7,943

8,054

991697530.UG.FTS.B,

18.97%,

1/21/25

..

10

10

991749616.UG.FTS.B,

18.97%,

1/21/25

..

1,992

2,016

991764938.UG.FTS.B,

18.97%,

1/21/25

..

216

219

991749978.UG.FTS.B,

19.8%,

1/21/25

...

276

279

991780817.UG.FTS.B,

19.8%,

1/21/25

...

288

290

991699882.UG.FTS.B,

19.99%,

1/21/25

..

129

132

991716662.UG.FTS.B,

19.99%,

1/21/25

..

332

340

991722265.UG.FTS.B,

19.99%,

1/21/25

..

1,366

1,388

991757989.UG.FTS.B,

19.99%,

1/21/25

..

189

193

991761939.UG.FTS.B,

19.99%,

1/21/25

..

24

24

991700316.UG.FTS.B,

20.46%,

1/21/25

..

101

103

991762170.UG.FTS.B,

20.46%,

1/21/25

..

908

911

991653165.UG.FTS.B,

20.97%,

1/21/25

..

3,665

3,702

991676203.UG.FTS.B,

21.46%,

1/21/25

..

235

17

991697508.UG.FTS.B,

21.46%,

1/21/25

..

87

88

991700341.UG.FTS.B,

21.46%,

1/21/25

..

251

254

991756734.UG.FTS.B,

21.46%,

1/21/25

..

70

71

991757729.UG.FTS.B,

21.46%,

1/21/25

..

21

21

991739544.UG.FTS.B,

21.97%,

1/21/25

..

403

405

991658893.UG.FTS.B,

21.98%,

1/21/25

..

556

559

991660381.UG.FTS.B,

21.98%,

1/21/25

..

277

9

991707819.UG.FTS.B,

21.98%,

1/21/25

..

1

1

991715801.UG.FTS.B,

21.98%,

1/21/25

..

88

(1)

991720329.UG.FTS.B,

21.98%,

1/21/25

..

2

2

991737499.UG.FTS.B,

21.98%,

1/21/25

..

332

333

991673663.UG.FTS.B,

22.97%,

1/21/25

..

810

808

991776759.UG.FTS.B,

26.94%,

1/21/25

..

30

2

991703323.UG.FTS.B,

27.99%,

1/21/25

..

1,259

1,292

991728532.UG.FTS.B,

27.99%,

1/21/25

..

636

642

991741785.UG.FTS.B,

27.99%,

1/21/25

..

199

204

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991758747.UG.FTS.B,

27.99%,

1/21/25

..

$

89

$

(4)

991642567.UG.FTS.B,

28.98%,

1/21/25

..

385

395

991662823.UG.FTS.B,

28.98%,

1/21/25

..

282

285

991664049.UG.FTS.B,

28.98%,

1/21/25

..

76

76

991665576.UG.FTS.B,

28.98%,

1/21/25

..

579

602

991665938.UG.FTS.B,

28.98%,

1/21/25

..

237

243

991665964.UG.FTS.B,

28.98%,

1/21/25

..

117

8

991669520.UG.FTS.B,

28.98%,

1/21/25

..

32

32

991670622.UG.FTS.B,

28.98%,

1/21/25

..

440

449

991671300.UG.FTS.B,

28.98%,

1/21/25

..

325

333

991672054.UG.FTS.B,

28.98%,

1/21/25

..

–

–

991672619.UG.FTS.B,

28.98%,

1/21/25

..

12

12

991675079.UG.FTS.B,

28.98%,

1/21/25

..

741

760

991678858.UG.FTS.B,

28.98%,

1/21/25

..

160

167

991680869.UG.FTS.B,

28.98%,

1/21/25

..

15

15

991680977.UG.FTS.B,

28.98%,

1/21/25

..

995

1,014

991681791.UG.FTS.B,

28.98%,

1/21/25

..

825

857

991682680.UG.FTS.B,

28.98%,

1/21/25

..

288

299

991683019.UG.FTS.B,

28.98%,

1/21/25

..

331

344

991684086.UG.FTS.B,

28.98%,

1/21/25

..

28

28

991686463.UG.FTS.B,

28.98%,

1/21/25

..

528

548

991687816.UG.FTS.B,

28.98%,

1/21/25

..

495

515

991687989.UG.FTS.B,

28.98%,

1/21/25

..

18

18

991694207.UG.FTS.B,

28.98%,

1/21/25

..

180

185

991694819.UG.FTS.B,

28.98%,

1/21/25

..

757

776

991695760.UG.FTS.B,

28.98%,

1/21/25

..

–

–

991698062.UG.FTS.B,

28.98%,

1/21/25

..

164

171

991698321.UG.FTS.B,

28.98%,

1/21/25

..

36

31

991700702.UG.FTS.B,

28.98%,

1/21/25

..

1,565

206

991700940.UG.FTS.B,

28.98%,

1/21/25

..

167

169

991701470.UG.FTS.B,

28.98%,

1/21/25

..

379

389

991704902.UG.FTS.B,

28.98%,

1/21/25

..

51

51

991705041.UG.FTS.B,

28.98%,

1/21/25

..

165

169

991705300.UG.FTS.B,

28.98%,

1/21/25

..

440

443

991705981.UG.FTS.B,

28.98%,

1/21/25

..

30

30

991706808.UG.FTS.B,

28.98%,

1/21/25

..

586

577

991708246.UG.FTS.B,

28.98%,

1/21/25

..

164

165

991715240.UG.FTS.B,

28.98%,

1/21/25

..

147

151

991716289.UG.FTS.B,

28.98%,

1/21/25

..

1,001

1,026

991719757.UG.FTS.B,

28.98%,

1/21/25

..

133

10

991720924.UG.FTS.B,

28.98%,

1/21/25

..

121

122

991725073.UG.FTS.B,

28.98%,

1/21/25

..

113

116

991728243.UG.FTS.B,

28.98%,

1/21/25

..

9

9

991728724.UG.FTS.B,

28.98%,

1/21/25

..

–

–

991733515.UG.FTS.B,

28.98%,

1/21/25

..

117

120

991736947.UG.FTS.B,

28.98%,

1/21/25

..

29

30

991737585.UG.FTS.B,

28.98%,

1/21/25

..

326

333

991740411.UG.FTS.B,

28.98%,

1/21/25

..

111

114

991740862.UG.FTS.B,

28.98%,

1/21/25

..

205

211

991741623.UG.FTS.B,

28.98%,

1/21/25

..

420

426

991744527.UG.FTS.B,

28.98%,

1/21/25

..

21

21

991749837.UG.FTS.B,

28.98%,

1/21/25

..

3,302

3,386

991756054.UG.FTS.B,

28.98%,

1/21/25

..

925

932

991761552.UG.FTS.B,

28.98%,

1/21/25

..

100

103

991761801.UG.FTS.B,

28.98%,

1/21/25

..

176

179

991767899.UG.FTS.B,

28.98%,

1/21/25

..

207

209

991770039.UG.FTS.B,

28.98%,

1/21/25

..

360

369

991784133.UG.FTS.B,

28.98%,

1/21/25

..

504

515

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

121

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991788631.UG.FTS.B,

28.98%,

1/21/25

..

$

90

$

69

991638900.UG.FTS.B,

29.47%,

1/21/25

..

59

60

991642900.UG.FTS.B,

29.49%,

1/21/25

..

128

128

991663276.UG.FTS.B,

29.49%,

1/21/25

..

34

35

991663912.UG.FTS.B,

29.49%,

1/21/25

..

37

37

991664093.UG.FTS.B,

29.49%,

1/21/25

..

698

727

991664305.UG.FTS.B,

29.49%,

1/21/25

..

256

19

991665032.UG.FTS.B,

29.49%,

1/21/25

..

178

24

991665122.UG.FTS.B,

29.49%,

1/21/25

..

920

953

991666036.UG.FTS.B,

29.49%,

1/21/25

..

603

622

991666720.UG.FTS.B,

29.49%,

1/21/25

..

121

125

991669205.UG.FTS.B,

29.49%,

1/21/25

..

167

174

991670006.UG.FTS.B,

29.49%,

1/21/25

..

86

89

991670187.UG.FTS.B,

29.49%,

1/21/25

..

192

15

991672196.UG.FTS.B,

29.49%,

1/21/25

..

94

98

991674869.UG.FTS.B,

29.49%,

1/21/25

..

44

44

991678184.UG.FTS.B,

29.49%,

1/21/25

..

51

51

991678591.UG.FTS.B,

29.49%,

1/21/25

..

178

179

991681470.UG.FTS.B,

29.49%,

1/21/25

..

54

55

991681529.UG.FTS.B,

29.49%,

1/21/25

..

58

9

991683560.UG.FTS.B,

29.49%,

1/21/25

..

122

127

991684294.UG.FTS.B,

29.49%,

1/21/25

..

248

252

991685142.UG.FTS.B,

29.49%,

1/21/25

..

43

44

991687042.UG.FTS.B,

29.49%,

1/21/25

..

293

292

991688094.UG.FTS.B,

29.49%,

1/21/25

..

1,120

1,168

991689406.UG.FTS.B,

29.49%,

1/21/25

..

19

19

991689751.UG.FTS.B,

29.49%,

1/21/25

..

265

275

991690545.UG.FTS.B,

29.49%,

1/21/25

..

32

31

991690832.UG.FTS.B,

29.49%,

1/21/25

..

124

129

991691552.UG.FTS.B,

29.49%,

1/21/25

..

148

154

991691912.UG.FTS.B,

29.49%,

1/21/25

..

217

223

991693012.UG.FTS.B,

29.49%,

1/21/25

..

228

228

991694190.UG.FTS.B,

29.49%,

1/21/25

..

230

240

991695343.UG.FTS.B,

29.49%,

1/21/25

..

17

17

991695921.UG.FTS.B,

29.49%,

1/21/25

..

826

860

991699221.UG.FTS.B,

29.49%,

1/21/25

..

–

–

991699877.UG.FTS.B,

29.49%,

1/21/25

..

230

236

991700813.UG.FTS.B,

29.49%,

1/21/25

..

339

348

991701385.UG.FTS.B,

29.49%,

1/21/25

..

5

5

991706026.UG.FTS.B,

29.49%,

1/21/25

..

128

127

991709042.UG.FTS.B,

29.49%,

1/21/25

..

290

296

991710343.UG.FTS.B,

29.49%,

1/21/25

..

517

530

991711411.UG.FTS.B,

29.49%,

1/21/25

..

57

58

991712669.UG.FTS.B,

29.49%,

1/21/25

..

120

119

991713287.UG.FTS.B,

29.49%,

1/21/25

..

332

335

991714196.UG.FTS.B,

29.49%,

1/21/25

..

65

65

991715882.UG.FTS.B,

29.49%,

1/21/25

..

1,350

1,384

991716170.UG.FTS.B,

29.49%,

1/21/25

..

70

72

991717859.UG.FTS.B,

29.49%,

1/21/25

..

412

422

991717914.UG.FTS.B,

29.49%,

1/21/25

..

446

457

991718350.UG.FTS.B,

29.49%,

1/21/25

..

247

253

991719451.UG.FTS.B,

29.49%,

1/21/25

..

330

343

991720068.UG.FTS.B,

29.49%,

1/21/25

..

2,011

2,057

991721576.UG.FTS.B,

29.49%,

1/21/25

..

75

77

991721973.UG.FTS.B,

29.49%,

1/21/25

..

116

119

991722825.UG.FTS.B,

29.49%,

1/21/25

..

577

592

991723176.UG.FTS.B,

29.49%,

1/21/25

..

247

253

991728056.UG.FTS.B,

29.49%,

1/21/25

..

205

44

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991728328.UG.FTS.B,

29.49%,

1/21/25

..

$

164

$

12

991731609.UG.FTS.B,

29.49%,

1/21/25

..

99

101

991731739.UG.FTS.B,

29.49%,

1/21/25

..

194

135

991732982.UG.FTS.B,

29.49%,

1/21/25

..

48

48

991736128.UG.FTS.B,

29.49%,

1/21/25

..

73

73

991738527.UG.FTS.B,

29.49%,

1/21/25

..

64

18

991738714.UG.FTS.B,

29.49%,

1/21/25

..

348

46

991740248.UG.FTS.B,

29.49%,

1/21/25

..

288

295

991740528.UG.FTS.B,

29.49%,

1/21/25

..

2,249

2,290

991740944.UG.FTS.B,

29.49%,

1/21/25

..

222

226

991741010.UG.FTS.B,

29.49%,

1/21/25

..

144

148

991742356.UG.FTS.B,

29.49%,

1/21/25

..

15

15

991743923.UG.FTS.B,

29.49%,

1/21/25

..

599

80

991743959.UG.FTS.B,

29.49%,

1/21/25

..

356

47

991746026.UG.FTS.B,

29.49%,

1/21/25

..

202

206

991749631.UG.FTS.B,

29.49%,

1/21/25

..

156

156

991750066.UG.FTS.B,

29.49%,

1/21/25

..

329

337

991750973.UG.FTS.B,

29.49%,

1/21/25

..

21

21

991751329.UG.FTS.B,

29.49%,

1/21/25

..

13

13

991751558.UG.FTS.B,

29.49%,

1/21/25

..

3,043

3,115

991753629.UG.FTS.B,

29.49%,

1/21/25

..

–

–

991755245.UG.FTS.B,

29.49%,

1/21/25

..

33

30

991755790.UG.FTS.B,

29.49%,

1/21/25

..

80

80

991757964.UG.FTS.B,

29.49%,

1/21/25

..

240

246

991758072.UG.FTS.B,

29.49%,

1/21/25

..

14

14

991758421.UG.FTS.B,

29.49%,

1/21/25

..

152

156

991759963.UG.FTS.B,

29.49%,

1/21/25

..

35

32

991759964.UG.FTS.B,

29.49%,

1/21/25

..

81

20

991761177.UG.FTS.B,

29.49%,

1/21/25

..

104

107

991761241.UG.FTS.B,

29.49%,

1/21/25

..

61

62

991763850.UG.FTS.B,

29.49%,

1/21/25

..

28

28

991765747.UG.FTS.B,

29.49%,

1/21/25

..

48

49

991771877.UG.FTS.B,

29.49%,

1/21/25

..

1,147

80

991773308.UG.FTS.B,

29.49%,

1/21/25

..

89

89

991773655.UG.FTS.B,

29.49%,

1/21/25

..

246

252

991774166.UG.FTS.B,

29.49%,

1/21/25

..

72

74

991774631.UG.FTS.B,

29.49%,

1/21/25

..

308

315

991776264.UG.FTS.B,

29.49%,

1/21/25

..

289

288

991777444.UG.FTS.B,

29.49%,

1/21/25

..

122

124

991777636.UG.FTS.B,

29.49%,

1/21/25

..

133

136

991779204.UG.FTS.B,

29.49%,

1/21/25

..

117

8

991784118.UG.FTS.B,

29.49%,

1/21/25

..

500

512

991784986.UG.FTS.B,

29.49%,

1/21/25

..

159

163

991785876.UG.FTS.B,

29.49%,

1/21/25

..

336

344

991786017.UG.FTS.B,

29.49%,

1/21/25

..

533

546

991792227.UG.FTS.B,

29.49%,

1/21/25

..

450

(17)

991632487.UG.FTS.B,

Zero

Cpn,

1/22/25

.

160

11

991655490.UG.FTS.B,

Zero

Cpn,

1/22/25

.

1,817

125

991683198.UG.FTS.B,

14.98%,

1/22/25

..

75

75

991718275.UG.FTS.B,

14.98%,

1/22/25

..

1,580

1,613

991737948.UG.FTS.B,

14.98%,

1/22/25

..

525

532

991790203.UG.FTS.B,

14.98%,

1/22/25

..

147

150

991756518.UG.FTS.B,

15%,

1/22/25

.....

212

215

991690554.UG.FTS.B,

15.97%,

1/22/25

..

1,625

1,655

991754215.UG.FTS.B,

15.97%,

1/22/25

..

185

188

991801345.UG.FTS.B,

15.97%,

1/22/25

..

841

97

991720895.UG.FTS.B,

16.99%,

1/22/25

..

4,077

4,161

991775455.UG.FTS.B,

16.99%,

1/22/25

..

1,110

1,127

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991802447.UG.FTS.B,

16.99%,

1/22/25

..

$

3,975

$

4,034

991698551.UG.FTS.B,

17.99%,

1/22/25

..

515

526

991737072.UG.FTS.B,

17.99%,

1/22/25

..

594

602

991737115.UG.FTS.B,

17.99%,

1/22/25

..

558

566

991634646.UG.FTS.B,

18.97%,

1/22/25

..

402

410

991687893.UG.FTS.B,

18.97%,

1/22/25

..

788

798

991707935.UG.FTS.B,

18.97%,

1/22/25

..

379

384

991718040.UG.FTS.B,

18.97%,

1/22/25

..

243

248

991647527.UG.FTS.B,

19.21%,

1/22/25

..

1

1

991685413.UG.FTS.B,

19.21%,

1/22/25

..

170

173

991691716.UG.FTS.B,

19.21%,

1/22/25

..

2,004

2,043

991705742.UG.FTS.B,

19.21%,

1/22/25

..

1,395

1,421

991719610.UG.FTS.B,

19.21%,

1/22/25

..

1,668

1,698

991789966.UG.FTS.B,

19.8%,

1/22/25

...

228

230

991643928.UG.FTS.B,

19.97%,

1/22/25

..

126

128

991683557.UG.FTS.B,

19.99%,

1/22/25

..

2,415

2,513

991699543.UG.FTS.B,

19.99%,

1/22/25

..

54

53

991756568.UG.FTS.B,

19.99%,

1/22/25

..

206

211

991788027.UG.FTS.B,

19.99%,

1/22/25

..

208

214

991798308.UG.FTS.B,

19.99%,

1/22/25

..

37

37

991662768.UG.FTS.B,

20.97%,

1/22/25

..

112

111

991725447.UG.FTS.B,

20.97%,

1/22/25

..

61

61

991656133.UG.FTS.B,

21.46%,

1/22/25

..

400

406

991695092.UG.FTS.B,

21.46%,

1/22/25

..

352

347

991754484.UG.FTS.B,

21.46%,

1/22/25

..

144

145

991637211.UG.FTS.B,

21.97%,

1/22/25

..

182

184

991678173.UG.FTS.B,

21.98%,

1/22/25

..

103

101

991710476.UG.FTS.B,

21.98%,

1/22/25

..

20

20

991682011.UG.FTS.B,

22.97%,

1/22/25

..

136

135

991801534.UG.FTS.B,

22.97%,

1/22/25

..

120

120

991671050.UG.FTS.B,

23.95%,

1/22/25

..

118

15

991672498.UG.FTS.B,

23.95%,

1/22/25

..

139

141

991676913.UG.FTS.B,

23.95%,

1/22/25

..

1,630

1,651

991629369.UG.FTS.B,

26.94%,

1/22/25

..

99

100

991652030.UG.FTS.B,

26.94%,

1/22/25

..

144

145

991664671.UG.FTS.B,

26.94%,

1/22/25

..

140

139

991701628.UG.FTS.B,

27.99%,

1/22/25

..

5

5

991629638.UG.FTS.B,

28.98%,

1/22/25

..

211

220

991632809.UG.FTS.B,

28.98%,

1/22/25

..

129

128

991638269.UG.FTS.B,

28.98%,

1/22/25

..

8

8

991653648.UG.FTS.B,

28.98%,

1/22/25

..

57

59

991654067.UG.FTS.B,

28.98%,

1/22/25

..

926

953

991655233.UG.FTS.B,

28.98%,

1/22/25

..

229

237

991655297.UG.FTS.B,

28.98%,

1/22/25

..

158

160

991655916.UG.FTS.B,

28.98%,

1/22/25

..

189

195

991657460.UG.FTS.B,

28.98%,

1/22/25

..

417

434

991662231.UG.FTS.B,

28.98%,

1/22/25

..

107

110

991662724.UG.FTS.B,

28.98%,

1/22/25

..

37

38

991678788.UG.FTS.B,

28.98%,

1/22/25

..

258

259

991683610.UG.FTS.B,

28.98%,

1/22/25

..

119

124

991694072.UG.FTS.B,

28.98%,

1/22/25

..

688

715

991698065.UG.FTS.B,

28.98%,

1/22/25

..

370

374

991701337.UG.FTS.B,

28.98%,

1/22/25

..

–

–

991711153.UG.FTS.B,

28.98%,

1/22/25

..

50

51

991718046.UG.FTS.B,

28.98%,

1/22/25

..

162

162

991720046.UG.FTS.B,

28.98%,

1/22/25

..

13

13

991722351.UG.FTS.B,

28.98%,

1/22/25

..

824

856

991723958.UG.FTS.B,

28.98%,

1/22/25

..

50

50

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991758512.UG.FTS.B,

28.98%,

1/22/25

..

$

64

$

(2)

991763204.UG.FTS.B,

28.98%,

1/22/25

..

632

648

991766379.UG.FTS.B,

28.98%,

1/22/25

..

19

19

991783308.UG.FTS.B,

28.98%,

1/22/25

..

191

191

991802680.UG.FTS.B,

28.98%,

1/22/25

..

144

98

991628550.UG.FTS.B,

29.49%,

1/22/25

..

83

86

991634061.UG.FTS.B,

29.49%,

1/22/25

..

211

219

991634393.UG.FTS.B,

29.49%,

1/22/25

..

2,798

2,869

991636661.UG.FTS.B,

29.49%,

1/22/25

..

2,258

2,356

991642369.UG.FTS.B,

29.49%,

1/22/25

..

10

2

991642874.UG.FTS.B,

29.49%,

1/22/25

..

86

89

991644780.UG.FTS.B,

29.49%,

1/22/25

..

9

9

991644808.UG.FTS.B,

29.49%,

1/22/25

..

73

75

991646259.UG.FTS.B,

29.49%,

1/22/25

..

594

619

991650009.UG.FTS.B,

29.49%,

1/22/25

..

34

34

991653804.UG.FTS.B,

29.49%,

1/22/25

..

436

454

991658593.UG.FTS.B,

29.49%,

1/22/25

..

153

156

991663564.UG.FTS.B,

29.49%,

1/22/25

..

1,262

1,304

991671251.UG.FTS.B,

29.49%,

1/22/25

..

13

13

991672394.UG.FTS.B,

29.49%,

1/22/25

..

89

93

991678636.UG.FTS.B,

29.49%,

1/22/25

..

114

117

991679933.UG.FTS.B,

29.49%,

1/22/25

..

29

29

991682094.UG.FTS.B,

29.49%,

1/22/25

..

660

689

991688247.UG.FTS.B,

29.49%,

1/22/25

..

124

129

991710294.UG.FTS.B,

29.49%,

1/22/25

..

75

77

991713706.UG.FTS.B,

29.49%,

1/22/25

..

118

121

991718289.UG.FTS.B,

29.49%,

1/22/25

..

1,031

1,064

991718290.UG.FTS.B,

29.49%,

1/22/25

..

156

160

991720578.UG.FTS.B,

29.49%,

1/22/25

..

238

246

991736296.UG.FTS.B,

29.49%,

1/22/25

..

109

112

991746532.UG.FTS.B,

29.49%,

1/22/25

..

1,210

1,241

991747337.UG.FTS.B,

29.49%,

1/22/25

..

39

39

991749787.UG.FTS.B,

29.49%,

1/22/25

..

288

294

991751645.UG.FTS.B,

29.49%,

1/22/25

..

98

100

991752337.UG.FTS.B,

29.49%,

1/22/25

..

298

306

991752883.UG.FTS.B,

29.49%,

1/22/25

..

44

7

991755018.UG.FTS.B,

29.49%,

1/22/25

..

175

179

991758600.UG.FTS.B,

29.49%,

1/22/25

..

14

14

991758788.UG.FTS.B,

29.49%,

1/22/25

..

268

275

991765455.UG.FTS.B,

29.49%,

1/22/25

..

286

294

991773156.UG.FTS.B,

29.49%,

1/22/25

..

467

474

991774923.UG.FTS.B,

29.49%,

1/22/25

..

140

(7)

991779420.UG.FTS.B,

29.49%,

1/22/25

..

264

262

991783625.UG.FTS.B,

29.49%,

1/22/25

..

116

119

991784478.UG.FTS.B,

29.49%,

1/22/25

..

12

12

991787661.UG.FTS.B,

29.49%,

1/22/25

..

37

37

991792431.UG.FTS.B,

29.49%,

1/22/25

..

842

837

991794136.UG.FTS.B,

29.49%,

1/22/25

..

56

47

991798587.UG.FTS.B,

29.49%,

1/22/25

..

23

23

991802876.UG.FTS.B,

29.49%,

1/22/25

..

409

419

991806840.UG.FTS.B,

29.49%,

1/22/25

..

–

–

991808836.UG.FTS.B,

29.49%,

1/22/25

..

18

18

991778465.UG.FTS.B,

29.99%,

1/22/25

..

18

19

991634115.UG.FTS.B,

Zero

Cpn,

1/23/25

.

281

19

991646303.UG.FTS.B,

Zero

Cpn,

1/23/25

.

207

14

991666998.UG.FTS.B,

Zero

Cpn,

1/23/25

.

195

14

991667673.UG.FTS.B,

Zero

Cpn,

1/23/25

.

135

9

991681904.UG.FTS.B,

Zero

Cpn,

1/23/25

.

782

55

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

123

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991684915.UG.FTS.B,

Zero

Cpn,

1/23/25

.

$

179

$

12

991713650.UG.FTS.B,

Zero

Cpn,

1/23/25

.

1,368

93

991725741.UG.FTS.B,

Zero

Cpn,

1/23/25

.

182

13

991781006.UG.FTS.B,

Zero

Cpn,

1/23/25

.

49

3

991636779.UG.FTS.B,

14.98%,

1/23/25

..

124

126

991673294.UG.FTS.B,

14.98%,

1/23/25

..

4,432

4,438

991685301.UG.FTS.B,

14.98%,

1/23/25

..

1,112

1,135

991810697.UG.FTS.B,

14.98%,

1/23/25

..

1,180

1,197

991640768.UG.FTS.B,

15%,

1/23/25

.....

291

295

991669666.UG.FTS.B,

15.97%,

1/23/25

..

183

187

991720270.UG.FTS.B,

16.99%,

1/23/25

..

695

708

991724639.UG.FTS.B,

17.99%,

1/23/25

..

29

29

991806652.UG.FTS.B,

17.99%,

1/23/25

..

309

311

991713762.UG.FTS.B,

18.21%,

1/23/25

..

191

191

991807503.UG.FTS.B,

18.21%,

1/23/25

..

21

21

991629464.UG.FTS.B,

18.97%,

1/23/25

..

97

98

991634874.UG.FTS.B,

18.97%,

1/23/25

..

1,575

1,605

991637138.UG.FTS.B,

18.97%,

1/23/25

..

545

555

991652563.UG.FTS.B,

18.97%,

1/23/25

..

1,487

1,516

991654901.UG.FTS.B,

18.97%,

1/23/25

..

8,039

8,199

991665228.UG.FTS.B,

18.97%,

1/23/25

..

328

329

991732049.UG.FTS.B,

18.97%,

1/23/25

..

1,315

1,332

991655628.UG.FTS.B,

19.21%,

1/23/25

..

391

398

991700455.UG.FTS.B,

19.21%,

1/23/25

..

349

347

991720395.UG.FTS.B,

19.21%,

1/23/25

..

481

490

991723070.UG.FTS.B,

19.21%,

1/23/25

..

1,602

1,633

991801084.UG.FTS.B,

19.21%,

1/23/25

..

770

776

991658233.UG.FTS.B,

19.8%,

1/23/25

...

806

821

991772614.UG.FTS.B,

19.8%,

1/23/25

...

2,880

2,911

991792267.UG.FTS.B,

19.8%,

1/23/25

...

1,885

147

991793572.UG.FTS.B,

19.8%,

1/23/25

...

1,599

1,615

991817217.UG.FTS.B,

19.8%,

1/23/25

...

48

49

991632705.UG.FTS.B,

19.99%,

1/23/25

..

2,180

2,269

991655150.UG.FTS.B,

19.99%,

1/23/25

..

695

716

991671970.UG.FTS.B,

19.99%,

1/23/25

..

291

303

991679224.UG.FTS.B,

19.99%,

1/23/25

..

237

241

991811950.UG.FTS.B,

19.99%,

1/23/25

..

141

142

991665786.UG.FTS.B,

20.46%,

1/23/25

..

238

243

991701667.UG.FTS.B,

20.46%,

1/23/25

..

156

158

991718868.UG.FTS.B,

20.46%,

1/23/25

..

270

274

991722899.UG.FTS.B,

20.46%,

1/23/25

..

241

245

991735353.UG.FTS.B,

20.97%,

1/23/25

..

13

13

991705904.UG.FTS.B,

20.98%,

1/23/25

..

87

88

991638426.UG.FTS.B,

21.46%,

1/23/25

..

1,280

94

991653986.UG.FTS.B,

21.46%,

1/23/25

..

255

252

991661446.UG.FTS.B,

21.46%,

1/23/25

..

107

8

991677495.UG.FTS.B,

21.46%,

1/23/25

..

151

153

991688517.UG.FTS.B,

21.46%,

1/23/25

..

385

(3)

991693269.UG.FTS.B,

21.46%,

1/23/25

..

118

9

991700214.UG.FTS.B,

21.46%,

1/23/25

..

262

266

991710233.UG.FTS.B,

21.46%,

1/23/25

..

525

533

991745840.UG.FTS.B,

21.46%,

1/23/25

..

516

519

991760990.UG.FTS.B,

21.46%,

1/23/25

..

29

29

991666562.UG.FTS.B,

21.97%,

1/23/25

..

324

329

991639095.UG.FTS.B,

21.98%,

1/23/25

..

185

187

991641726.UG.FTS.B,

21.98%,

1/23/25

..

899

897

991759715.UG.FTS.B,

21.98%,

1/23/25

..

485

488

991786528.UG.FTS.B,

21.98%,

1/23/25

..

147

148

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991644696.UG.FTS.B,

23.95%,

1/23/25

..

$

121

$

121

991784495.UG.FTS.B,

25.98%,

1/23/25

..

155

157

991666003.UG.FTS.B,

26.94%,

1/23/25

..

150

12

991693097.UG.FTS.B,

26.94%,

1/23/25

..

446

446

991629548.UG.FTS.B,

28.98%,

1/23/25

..

353

357

991635693.UG.FTS.B,

28.98%,

1/23/25

..

170

176

991636074.UG.FTS.B,

28.98%,

1/23/25

..

700

725

991636843.UG.FTS.B,

28.98%,

1/23/25

..

445

456

991644625.UG.FTS.B,

28.98%,

1/23/25

..

176

183

991644719.UG.FTS.B,

28.98%,

1/23/25

..

766

786

991655367.UG.FTS.B,

28.98%,

1/23/25

..

155

154

991656845.UG.FTS.B,

28.98%,

1/23/25

..

165

172

991662149.UG.FTS.B,

28.98%,

1/23/25

..

348

353

991665357.UG.FTS.B,

28.98%,

1/23/25

..

1,824

1,877

991665490.UG.FTS.B,

28.98%,

1/23/25

..

414

431

991667605.UG.FTS.B,

28.98%,

1/23/25

..

556

579

991667998.UG.FTS.B,

28.98%,

1/23/25

..

1,223

1,207

991671053.UG.FTS.B,

28.98%,

1/23/25

..

17

17

991671248.UG.FTS.B,

28.98%,

1/23/25

..

155

161

991671791.UG.FTS.B,

28.98%,

1/23/25

..

268

269

991675411.UG.FTS.B,

28.98%,

1/23/25

..

707

723

991677694.UG.FTS.B,

28.98%,

1/23/25

..

554

555

991679075.UG.FTS.B,

28.98%,

1/23/25

..

65

67

991693174.UG.FTS.B,

28.98%,

1/23/25

..

207

215

991693333.UG.FTS.B,

28.98%,

1/23/25

..

236

243

991695544.UG.FTS.B,

28.98%,

1/23/25

..

195

203

991696216.UG.FTS.B,

28.98%,

1/23/25

..

20

20

991700691.UG.FTS.B,

28.98%,

1/23/25

..

52

53

991714226.UG.FTS.B,

28.98%,

1/23/25

..

143

146

991719766.UG.FTS.B,

28.98%,

1/23/25

..

414

429

991720618.UG.FTS.B,

28.98%,

1/23/25

..

103

107

991725624.UG.FTS.B,

28.98%,

1/23/25

..

118

9

991734227.UG.FTS.B,

28.98%,

1/23/25

..

224

227

991736765.UG.FTS.B,

28.98%,

1/23/25

..

161

161

991739642.UG.FTS.B,

28.98%,

1/23/25

..

80

82

991740876.UG.FTS.B,

28.98%,

1/23/25

..

3,767

3,843

991743895.UG.FTS.B,

28.98%,

1/23/25

..

257

264

991755793.UG.FTS.B,

28.98%,

1/23/25

..

218

220

991760215.UG.FTS.B,

28.98%,

1/23/25

..

88

12

991764530.UG.FTS.B,

28.98%,

1/23/25

..

129

126

991768579.UG.FTS.B,

28.98%,

1/23/25

..

31

31

991768584.UG.FTS.B,

28.98%,

1/23/25

..

44

45

991772947.UG.FTS.B,

28.98%,

1/23/25

..

819

840

991774877.UG.FTS.B,

28.98%,

1/23/25

..

156

160

991779183.UG.FTS.B,

28.98%,

1/23/25

..

747

745

991782023.UG.FTS.B,

28.98%,

1/23/25

..

404

414

991782508.UG.FTS.B,

28.98%,

1/23/25

..

246

252

991785616.UG.FTS.B,

28.98%,

1/23/25

..

46

47

991795129.UG.FTS.B,

28.98%,

1/23/25

..

11

11

991807448.UG.FTS.B,

28.98%,

1/23/25

..

304

312

991807581.UG.FTS.B,

28.98%,

1/23/25

..

89

7

991787803.UG.FTS.B,

29.46%,

1/23/25

..

78

78

991798404.UG.FTS.B,

29.47%,

1/23/25

..

51

5

991632479.UG.FTS.B,

29.49%,

1/23/25

..

681

698

991635514.UG.FTS.B,

29.49%,

1/23/25

..

3,243

3,368

991635734.UG.FTS.B,

29.49%,

1/23/25

..

320

43

991640354.UG.FTS.B,

29.49%,

1/23/25

..

343

357

991640844.UG.FTS.B,

29.49%,

1/23/25

..

70

72

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991643437.UG.FTS.B,

29.49%,

1/23/25

..

$

145

$

151

991646401.UG.FTS.B,

29.49%,

1/23/25

..

44

46

991648051.UG.FTS.B,

29.49%,

1/23/25

..

423

441

991649488.UG.FTS.B,

29.49%,

1/23/25

..

240

250

991650076.UG.FTS.B,

29.49%,

1/23/25

..

59

60

991651099.UG.FTS.B,

29.49%,

1/23/25

..

113

116

991652096.UG.FTS.B,

29.49%,

1/23/25

..

–

–

991655169.UG.FTS.B,

29.49%,

1/23/25

..

166

174

991659040.UG.FTS.B,

29.49%,

1/23/25

..

63

64

991659984.UG.FTS.B,

29.49%,

1/23/25

..

33

34

991660204.UG.FTS.B,

29.49%,

1/23/25

..

118

121

991661550.UG.FTS.B,

29.49%,

1/23/25

..

93

94

991662010.UG.FTS.B,

29.49%,

1/23/25

..

196

204

991662703.UG.FTS.B,

29.49%,

1/23/25

..

57

57

991664752.UG.FTS.B,

29.49%,

1/23/25

..

1,236

1,268

991664791.UG.FTS.B,

29.49%,

1/23/25

..

191

198

991669123.UG.FTS.B,

29.49%,

1/23/25

..

384

(15)

991669828.UG.FTS.B,

29.49%,

1/23/25

..

253

263

991670618.UG.FTS.B,

29.49%,

1/23/25

..

284

295

991672381.UG.FTS.B,

29.49%,

1/23/25

..

441

456

991672472.UG.FTS.B,

29.49%,

1/23/25

..

152

158

991674428.UG.FTS.B,

29.49%,

1/23/25

..

1,155

1,203

991678185.UG.FTS.B,

29.49%,

1/23/25

..

86

89

991678811.UG.FTS.B,

29.49%,

1/23/25

..

518

539

991680942.UG.FTS.B,

29.49%,

1/23/25

..

440

59

991682804.UG.FTS.B,

29.49%,

1/23/25

..

332

328

991684286.UG.FTS.B,

29.49%,

1/23/25

..

10

10

991684319.UG.FTS.B,

29.49%,

1/23/25

..

79

82

991685294.UG.FTS.B,

29.49%,

1/23/25

..

323

323

991685999.UG.FTS.B,

29.49%,

1/23/25

..

62

64

991686992.UG.FTS.B,

29.49%,

1/23/25

..

5

5

991688415.UG.FTS.B,

29.49%,

1/23/25

..

524

539

991688858.UG.FTS.B,

29.49%,

1/23/25

..

165

168

991692660.UG.FTS.B,

29.49%,

1/23/25

..

3

3

991693141.UG.FTS.B,

29.49%,

1/23/25

..

66

68

991694241.UG.FTS.B,

29.49%,

1/23/25

..

120

121

991700061.UG.FTS.B,

29.49%,

1/23/25

..

27

28

991705948.UG.FTS.B,

29.49%,

1/23/25

..

87

91

991710464.UG.FTS.B,

29.49%,

1/23/25

..

119

121

991718098.UG.FTS.B,

29.49%,

1/23/25

..

212

47

991727898.UG.FTS.B,

29.49%,

1/23/25

..

128

131

991731138.UG.FTS.B,

29.49%,

1/23/25

..

75

74

991740952.UG.FTS.B,

29.49%,

1/23/25

..

181

185

991749836.UG.FTS.B,

29.49%,

1/23/25

..

1,721

229

991758368.UG.FTS.B,

29.49%,

1/23/25

..

314

322

991759014.UG.FTS.B,

29.49%,

1/23/25

..

129

132

991762640.UG.FTS.B,

29.49%,

1/23/25

..

131

134

991762816.UG.FTS.B,

29.49%,

1/23/25

..

105

107

991763398.UG.FTS.B,

29.49%,

1/23/25

..

106

109

991764778.UG.FTS.B,

29.49%,

1/23/25

..

138

142

991764948.UG.FTS.B,

29.49%,

1/23/25

..

61

62

991766961.UG.FTS.B,

29.49%,

1/23/25

..

–

–

991768207.UG.FTS.B,

29.49%,

1/23/25

..

13

13

991768574.UG.FTS.B,

29.49%,

1/23/25

..

35

35

991773008.UG.FTS.B,

29.49%,

1/23/25

..

133

10

991779628.UG.FTS.B,

29.49%,

1/23/25

..

39

40

991781870.UG.FTS.B,

29.49%,

1/23/25

..

306

312

991782329.UG.FTS.B,

29.49%,

1/23/25

..

124

16

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991787630.UG.FTS.B,

29.49%,

1/23/25

..

$

84

$

87

991791018.UG.FTS.B,

29.49%,

1/23/25

..

88

88

991792329.UG.FTS.B,

29.49%,

1/23/25

..

368

377

991792570.UG.FTS.B,

29.49%,

1/23/25

..

431

59

991792684.UG.FTS.B,

29.49%,

1/23/25

..

874

880

991795103.UG.FTS.B,

29.49%,

1/23/25

..

58

60

991798958.UG.FTS.B,

29.49%,

1/23/25

..

572

575

991816343.UG.FTS.B,

29.49%,

1/23/25

..

131

133

991816545.UG.FTS.B,

29.49%,

1/23/25

..

142

145

991817291.UG.FTS.B,

29.49%,

1/23/25

..

291

292

991759330.UG.FTS.B,

Zero

Cpn,

1/24/25

.

80

6

991783823.UG.FTS.B,

Zero

Cpn,

1/24/25

.

1,883

129

991656882.UG.FTS.B,

14.98%,

1/24/25

..

335

342

991755553.UG.FTS.B,

14.98%,

1/24/25

..

305

310

991648853.UG.FTS.B,

15%,

1/24/25

.....

4,023

4,077

991708919.UG.FTS.B,

15%,

1/24/25

.....

27

27

991800979.UG.FTS.B,

15.97%,

1/24/25

..

5,532

5,619

991636992.UG.FTS.B,

16.99%,

1/24/25

..

100

100

991638528.UG.FTS.B,

16.99%,

1/24/25

..

409

49

991642911.UG.FTS.B,

16.99%,

1/24/25

..

314

22

991708759.UG.FTS.B,

17.99%,

1/24/25

..

1,791

1,828

991734778.UG.FTS.B,

17.99%,

1/24/25

..

119

121

991746840.UG.FTS.B,

17.99%,

1/24/25

..

1,361

1,379

991799064.UG.FTS.B,

17.99%,

1/24/25

..

783

504

991690303.UG.FTS.B,

18.97%,

1/24/25

..

642

655

991699954.UG.FTS.B,

18.97%,

1/24/25

..

111

113

991702242.UG.FTS.B,

18.97%,

1/24/25

..

52

53

991708811.UG.FTS.B,

18.97%,

1/24/25

..

777

781

991704768.UG.FTS.B,

19.21%,

1/24/25

..

653

658

991656757.UG.FTS.B,

19.46%,

1/24/25

..

3,364

3,334

991632438.UG.FTS.B,

19.8%,

1/24/25

...

1,494

1,491

991697824.UG.FTS.B,

19.8%,

1/24/25

...

102

102

991806310.UG.FTS.B,

19.97%,

1/24/25

..

462

3

991576025.UG.FTS.B,

19.99%,

1/24/25

..

153

157

991581472.UG.FTS.B,

19.99%,

1/24/25

..

112

(1)

991585928.UG.FTS.B,

19.99%,

1/24/25

..

12

12

991598140.UG.FTS.B,

19.99%,

1/24/25

..

98

101

991608248.UG.FTS.B,

19.99%,

1/24/25

..

76

79

991629457.UG.FTS.B,

19.99%,

1/24/25

..

554

572

991642292.UG.FTS.B,

19.99%,

1/24/25

..

166

170

991650113.UG.FTS.B,

19.99%,

1/24/25

..

2,204

2,234

991651074.UG.FTS.B,

19.99%,

1/24/25

..

55

56

991653352.UG.FTS.B,

19.99%,

1/24/25

..

131

137

991799920.UG.FTS.B,

19.99%,

1/24/25

..

1,713

1,756

991805172.UG.FTS.B,

19.99%,

1/24/25

..

96

100

991805637.UG.FTS.B,

19.99%,

1/24/25

..

211

217

991807354.UG.FTS.B,

19.99%,

1/24/25

..

87

88

991813869.UG.FTS.B,

19.99%,

1/24/25

..

90

90

991722377.UG.FTS.B,

20.46%,

1/24/25

..

2,414

2,457

991745755.UG.FTS.B,

20.46%,

1/24/25

..

378

375

991781421.UG.FTS.B,

20.46%,

1/24/25

..

302

306

991786433.UG.FTS.B,

20.46%,

1/24/25

..

143

144

991699313.UG.FTS.B,

20.97%,

1/24/25

..

519

524

991631506.UG.FTS.B,

21.46%,

1/24/25

..

276

280

991749758.UG.FTS.B,

21.46%,

1/24/25

..

4,800

4,830

991786125.UG.FTS.B,

21.46%,

1/24/25

..

156

157

991806077.UG.FTS.B,

21.97%,

1/24/25

..

104

104

991691604.UG.FTS.B,

21.98%,

1/24/25

..

405

411

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

125

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991722423.UG.FTS.B,

21.98%,

1/24/25

..

$

3,638

$

3,695

991748280.UG.FTS.B,

21.98%,

1/24/25

..

89

90

991801295.UG.FTS.B,

21.98%,

1/24/25

..

804

809

991717329.UG.FTS.B,

22.97%,

1/24/25

..

1,993

2,022

991706518.UG.FTS.B,

24.95%,

1/24/25

..

1,101

1,114

991644078.UG.FTS.B,

25.95%,

1/24/25

..

645

648

991700887.UG.FTS.B,

25.95%,

1/24/25

..

163

164

991780248.UG.FTS.B,

27.95%,

1/24/25

..

90

92

991680442.UG.FTS.B,

27.99%,

1/24/25

..

33

34

991575802.UG.FTS.B,

28.98%,

1/24/25

..

920

905

991577230.UG.FTS.B,

28.98%,

1/24/25

..

167

174

991577662.UG.FTS.B,

28.98%,

1/24/25

..

286

294

991578086.UG.FTS.B,

28.98%,

1/24/25

..

160

12

991578656.UG.FTS.B,

28.98%,

1/24/25

..

858

874

991583017.UG.FTS.B,

28.98%,

1/24/25

..

358

371

991586355.UG.FTS.B,

28.98%,

1/24/25

..

52

52

991592816.UG.FTS.B,

28.98%,

1/24/25

..

17

17

991595786.UG.FTS.B,

28.98%,

1/24/25

..

82

83

991628863.UG.FTS.B,

28.98%,

1/24/25

..

716

742

991629929.UG.FTS.B,

28.98%,

1/24/25

..

35

35

991634826.UG.FTS.B,

28.98%,

1/24/25

..

624

650

991639159.UG.FTS.B,

28.98%,

1/24/25

..

96

99

991640485.UG.FTS.B,

28.98%,

1/24/25

..

1,247

1,284

991640929.UG.FTS.B,

28.98%,

1/24/25

..

31

31

991644552.UG.FTS.B,

28.98%,

1/24/25

..

21

21

991645339.UG.FTS.B,

28.98%,

1/24/25

..

495

492

991649512.UG.FTS.B,

28.98%,

1/24/25

..

177

(4)

991651901.UG.FTS.B,

28.98%,

1/24/25

..

688

716

991659856.UG.FTS.B,

28.98%,

1/24/25

..

121

126

991662614.UG.FTS.B,

28.98%,

1/24/25

..

69

6

991664144.UG.FTS.B,

28.98%,

1/24/25

..

51

52

991665878.UG.FTS.B,

28.98%,

1/24/25

..

365

380

991667154.UG.FTS.B,

28.98%,

1/24/25

..

497

490

991669337.UG.FTS.B,

28.98%,

1/24/25

..

50

50

991670648.UG.FTS.B,

28.98%,

1/24/25

..

129

132

991671947.UG.FTS.B,

28.98%,

1/24/25

..

459

478

991673929.UG.FTS.B,

28.98%,

1/24/25

..

332

345

991677444.UG.FTS.B,

28.98%,

1/24/25

..

14

14

991681258.UG.FTS.B,

28.98%,

1/24/25

..

1,153

1,177

991685641.UG.FTS.B,

28.98%,

1/24/25

..

315

318

991688160.UG.FTS.B,

28.98%,

1/24/25

..

2,509

2,566

991689399.UG.FTS.B,

28.98%,

1/24/25

..

143

147

991692103.UG.FTS.B,

28.98%,

1/24/25

..

497

517

991703547.UG.FTS.B,

28.98%,

1/24/25

..

338

(15)

991713017.UG.FTS.B,

28.98%,

1/24/25

..

184

192

991724136.UG.FTS.B,

28.98%,

1/24/25

..

131

137

991725698.UG.FTS.B,

28.98%,

1/24/25

..

277

280

991733516.UG.FTS.B,

28.98%,

1/24/25

..

336

344

991738430.UG.FTS.B,

28.98%,

1/24/25

..

326

43

991754851.UG.FTS.B,

28.98%,

1/24/25

..

105

107

991762575.UG.FTS.B,

28.98%,

1/24/25

..

658

675

991776412.UG.FTS.B,

28.98%,

1/24/25

..

853

872

991777910.UG.FTS.B,

28.98%,

1/24/25

..

226

232

991780022.UG.FTS.B,

28.98%,

1/24/25

..

249

255

991780591.UG.FTS.B,

28.98%,

1/24/25

..

198

193

991781561.UG.FTS.B,

28.98%,

1/24/25

..

–

–

991781585.UG.FTS.B,

28.98%,

1/24/25

..

70

72

991781826.UG.FTS.B,

28.98%,

1/24/25

..

516

521

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991783185.UG.FTS.B,

28.98%,

1/24/25

..

$

115

$

118

991783742.UG.FTS.B,

28.98%,

1/24/25

..

802

821

991785319.UG.FTS.B,

28.98%,

1/24/25

..

546

560

991789793.UG.FTS.B,

28.98%,

1/24/25

..

1,276

1,309

991789906.UG.FTS.B,

28.98%,

1/24/25

..

210

216

991791199.UG.FTS.B,

28.98%,

1/24/25

..

267

274

991791520.UG.FTS.B,

28.98%,

1/24/25

..

86

90

991795762.UG.FTS.B,

28.98%,

1/24/25

..

125

16

991797202.UG.FTS.B,

28.98%,

1/24/25

..

–

–

991808380.UG.FTS.B,

28.98%,

1/24/25

..

127

17

991814864.UG.FTS.B,

28.98%,

1/24/25

..

70

72

991817525.UG.FTS.B,

28.98%,

1/24/25

..

5

5

991821037.UG.FTS.B,

28.98%,

1/24/25

..

322

330

991576301.UG.FTS.B,

29.49%,

1/24/25

..

2,441

2,545

991577400.UG.FTS.B,

29.49%,

1/24/25

..

570

584

991577993.UG.FTS.B,

29.49%,

1/24/25

..

705

(19)

991579123.UG.FTS.B,

29.49%,

1/24/25

..

190

198

991580987.UG.FTS.B,

29.49%,

1/24/25

..

801

826

991581435.UG.FTS.B,

29.49%,

1/24/25

..

273

284

991585851.UG.FTS.B,

29.49%,

1/24/25

..

276

288

991589214.UG.FTS.B,

29.49%,

1/24/25

..

711

737

991598092.UG.FTS.B,

29.49%,

1/24/25

..

136

140

991598173.UG.FTS.B,

29.49%,

1/24/25

..

368

383

991612456.UG.FTS.B,

29.49%,

1/24/25

..

231

223

991623495.UG.FTS.B,

29.49%,

1/24/25

..

60

9

991630195.UG.FTS.B,

29.49%,

1/24/25

..

151

102

991631439.UG.FTS.B,

29.49%,

1/24/25

..

22

22

991633359.UG.FTS.B,

29.49%,

1/24/25

..

607

622

991635775.UG.FTS.B,

29.49%,

1/24/25

..

270

282

991636237.UG.FTS.B,

29.49%,

1/24/25

..

7

7

991637080.UG.FTS.B,

29.49%,

1/24/25

..

111

116

991638944.UG.FTS.B,

29.49%,

1/24/25

..

41

41

991644916.UG.FTS.B,

29.49%,

1/24/25

..

233

242

991645022.UG.FTS.B,

29.49%,

1/24/25

..

102

106

991646526.UG.FTS.B,

29.49%,

1/24/25

..

555

570

991648884.UG.FTS.B,

29.49%,

1/24/25

..

146

149

991650579.UG.FTS.B,

29.49%,

1/24/25

..

526

550

991651346.UG.FTS.B,

29.49%,

1/24/25

..

13

13

991654006.UG.FTS.B,

29.49%,

1/24/25

..

142

146

991654015.UG.FTS.B,

29.49%,

1/24/25

..

37

32

991658417.UG.FTS.B,

29.49%,

1/24/25

..

149

146

991658664.UG.FTS.B,

29.49%,

1/24/25

..

185

192

991658973.UG.FTS.B,

29.49%,

1/24/25

..

350

365

991660665.UG.FTS.B,

29.49%,

1/24/25

..

410

412

991661860.UG.FTS.B,

29.49%,

1/24/25

..

103

103

991662002.UG.FTS.B,

29.49%,

1/24/25

..

487

506

991663979.UG.FTS.B,

29.49%,

1/24/25

..

91

(3)

991670699.UG.FTS.B,

29.49%,

1/24/25

..

57

57

991671992.UG.FTS.B,

29.49%,

1/24/25

..

747

779

991675138.UG.FTS.B,

29.49%,

1/24/25

..

200

28

991678769.UG.FTS.B,

29.49%,

1/24/25

..

10

10

991679391.UG.FTS.B,

29.49%,

1/24/25

..

15

15

991679445.UG.FTS.B,

29.49%,

1/24/25

..

127

133

991680577.UG.FTS.B,

29.49%,

1/24/25

..

47

47

991682018.UG.FTS.B,

29.49%,

1/24/25

..

46

7

991682353.UG.FTS.B,

29.49%,

1/24/25

..

981

73

991684181.UG.FTS.B,

29.49%,

1/24/25

..

715

745

991685612.UG.FTS.B,

29.49%,

1/24/25

..

311

320

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991692375.UG.FTS.B,

29.49%,

1/24/25

..

$

25

$

25

991692427.UG.FTS.B,

29.49%,

1/24/25

..

373

369

991692536.UG.FTS.B,

29.49%,

1/24/25

..

318

331

991694080.UG.FTS.B,

29.49%,

1/24/25

..

80

82

991697044.UG.FTS.B,

29.49%,

1/24/25

..

262

273

991700205.UG.FTS.B,

29.49%,

1/24/25

..

393

403

991706610.UG.FTS.B,

29.49%,

1/24/25

..

13

13

991709442.UG.FTS.B,

29.49%,

1/24/25

..

161

163

991714607.UG.FTS.B,

29.49%,

1/24/25

..

297

286

991714756.UG.FTS.B,

29.49%,

1/24/25

..

54

55

991714762.UG.FTS.B,

29.49%,

1/24/25

..

126

128

991715066.UG.FTS.B,

29.49%,

1/24/25

..

120

117

991723894.UG.FTS.B,

29.49%,

1/24/25

..

277

288

991726881.UG.FTS.B,

29.49%,

1/24/25

..

223

229

991727546.UG.FTS.B,

29.49%,

1/24/25

..

65

67

991732404.UG.FTS.B,

29.49%,

1/24/25

..

20

21

991735728.UG.FTS.B,

29.49%,

1/24/25

..

–

–

991736234.UG.FTS.B,

29.49%,

1/24/25

..

360

360

991736519.UG.FTS.B,

29.49%,

1/24/25

..

164

168

991738330.UG.FTS.B,

29.49%,

1/24/25

..

106

110

991741387.UG.FTS.B,

29.49%,

1/24/25

..

198

203

991742301.UG.FTS.B,

29.49%,

1/24/25

..

31

31

991742733.UG.FTS.B,

29.49%,

1/24/25

..

77

5

991742865.UG.FTS.B,

29.49%,

1/24/25

..

588

603

991746950.UG.FTS.B,

29.49%,

1/24/25

..

179

184

991758058.UG.FTS.B,

29.49%,

1/24/25

..

817

838

991759873.UG.FTS.B,

29.49%,

1/24/25

..

29

30

991768368.UG.FTS.B,

29.49%,

1/24/25

..

70

6

991774946.UG.FTS.B,

29.49%,

1/24/25

..

823

844

991776695.UG.FTS.B,

29.49%,

1/24/25

..

155

159

991779451.UG.FTS.B,

29.49%,

1/24/25

..

20

20

991781667.UG.FTS.B,

29.49%,

1/24/25

..

89

93

991782230.UG.FTS.B,

29.49%,

1/24/25

..

138

141

991784434.UG.FTS.B,

29.49%,

1/24/25

..

40

40

991784942.UG.FTS.B,

29.49%,

1/24/25

..

71

5

991788566.UG.FTS.B,

29.49%,

1/24/25

..

106

109

991788656.UG.FTS.B,

29.49%,

1/24/25

..

33

6

991797472.UG.FTS.B,

29.49%,

1/24/25

..

11

11

991799040.UG.FTS.B,

29.49%,

1/24/25

..

189

194

991802616.UG.FTS.B,

29.49%,

1/24/25

..

180

12

991803911.UG.FTS.B,

29.49%,

1/24/25

..

229

32

991804458.UG.FTS.B,

29.49%,

1/24/25

..

–

–

991804599.UG.FTS.B,

29.49%,

1/24/25

..

30

30

991807220.UG.FTS.B,

29.49%,

1/24/25

..

53

54

991817555.UG.FTS.B,

29.49%,

1/24/25

..

12

12

991818233.UG.FTS.B,

29.49%,

1/24/25

..

110

112

991821225.UG.FTS.B,

29.49%,

1/24/25

..

–

–

991823070.UG.FTS.B,

29.49%,

1/24/25

..

924

942

991744460.UG.FTS.B,

29.99%,

1/24/25

..

121

(5)

991604576.UG.FTS.B,

Zero

Cpn,

1/25/25

.

95

7

991680840.UG.FTS.B,

Zero

Cpn,

1/25/25

.

68

5

991716330.UG.FTS.B,

Zero

Cpn,

1/25/25

.

812

56

991746419.UG.FTS.B,

Zero

Cpn,

1/25/25

.

295

20

991801025.UG.FTS.B,

Zero

Cpn,

1/25/25

.

115

8

991829201.UG.FTS.B,

Zero

Cpn,

1/25/25

.

2,297

158

991663336.UG.FTS.B,

14.97%,

1/25/25

..

910

104

991722200.UG.FTS.B,

14.98%,

1/25/25

..

316

323

991785631.UG.FTS.B,

14.98%,

1/25/25

..

–

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991685938.UG.FTS.B,

15.97%,

1/25/25

..

$

127

$

130

991691336.UG.FTS.B,

15.97%,

1/25/25

..

14,764

15,084

991719427.UG.FTS.B,

15.97%,

1/25/25

..

298

304

991706579.UG.FTS.B,

16.99%,

1/25/25

..

116

117

991708991.UG.FTS.B,

17.99%,

1/25/25

..

902

905

991730945.UG.FTS.B,

17.99%,

1/25/25

..

38

38

991658411.UG.FTS.B,

18.97%,

1/25/25

..

730

742

991749481.UG.FTS.B,

18.97%,

1/25/25

..

626

634

991639650.UG.FTS.B,

19.21%,

1/25/25

..

2,647

2,631

991648674.UG.FTS.B,

19.21%,

1/25/25

..

–

–

991667139.UG.FTS.B,

19.21%,

1/25/25

..

393

400

991690379.UG.FTS.B,

19.21%,

1/25/25

..

353

353

991783060.UG.FTS.B,

19.21%,

1/25/25

..

400

404

991811906.UG.FTS.B,

19.46%,

1/25/25

..

137

138

991771874.UG.FTS.B,

19.8%,

1/25/25

...

200

202

991583020.UG.FTS.B,

19.99%,

1/25/25

..

199

206

991596563.UG.FTS.B,

19.99%,

1/25/25

..

256

264

991598409.UG.FTS.B,

19.99%,

1/25/25

..

755

786

991639145.UG.FTS.B,

19.99%,

1/25/25

..

192

24

991639253.UG.FTS.B,

19.99%,

1/25/25

..

70

71

991647962.UG.FTS.B,

19.99%,

1/25/25

..

285

292

991655538.UG.FTS.B,

19.99%,

1/25/25

..

299

298

991660509.UG.FTS.B,

19.99%,

1/25/25

..

188

15

991671306.UG.FTS.B,

19.99%,

1/25/25

..

125

130

991730145.UG.FTS.B,

19.99%,

1/25/25

..

884

920

991733405.UG.FTS.B,

19.99%,

1/25/25

..

129

16

991751611.UG.FTS.B,

19.99%,

1/25/25

..

190

195

991754276.UG.FTS.B,

19.99%,

1/25/25

..

347

355

991768443.UG.FTS.B,

19.99%,

1/25/25

..

21

21

991810011.UG.FTS.B,

19.99%,

1/25/25

..

640

657

991811163.UG.FTS.B,

19.99%,

1/25/25

..

2,172

2,239

991647666.UG.FTS.B,

20.46%,

1/25/25

..

6,243

6,306

991701511.UG.FTS.B,

20.46%,

1/25/25

..

1,284

1,297

991735068.UG.FTS.B,

20.97%,

1/25/25

..

470

474

991659246.UG.FTS.B,

21.46%,

1/25/25

..

129

129

991693560.UG.FTS.B,

21.46%,

1/25/25

..

720

726

991697266.UG.FTS.B,

21.46%,

1/25/25

..

242

245

991702030.UG.FTS.B,

21.46%,

1/25/25

..

1,792

1,819

991709381.UG.FTS.B,

21.46%,

1/25/25

..

116

115

991667459.UG.FTS.B,

21.98%,

1/25/25

..

–

–

991699663.UG.FTS.B,

21.98%,

1/25/25

..

119

121

991721907.UG.FTS.B,

21.98%,

1/25/25

..

971

986

991773306.UG.FTS.B,

21.98%,

1/25/25

..

510

513

991781998.UG.FTS.B,

21.98%,

1/25/25

..

166

167

991643275.UG.FTS.B,

22.97%,

1/25/25

..

1,921

1,949

991717168.UG.FTS.B,

22.97%,

1/25/25

..

–

–

991728109.UG.FTS.B,

22.97%,

1/25/25

..

296

296

991696083.UG.FTS.B,

23.95%,

1/25/25

..

447

453

991589474.UG.FTS.B,

27.99%,

1/25/25

..

419

419

991650195.UG.FTS.B,

27.99%,

1/25/25

..

216

16

991676736.UG.FTS.B,

27.99%,

1/25/25

..

74

76

991691761.UG.FTS.B,

27.99%,

1/25/25

..

865

115

991824491.UG.FTS.B,

27.99%,

1/25/25

..

1,613

1,649

991585948.UG.FTS.B,

28.98%,

1/25/25

..

980

1,005

991585964.UG.FTS.B,

28.98%,

1/25/25

..

607

632

991586398.UG.FTS.B,

28.98%,

1/25/25

..

2,263

2,215

991586821.UG.FTS.B,

28.98%,

1/25/25

..

3,133

(108)

991588444.UG.FTS.B,

28.98%,

1/25/25

..

256

266

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

127

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991590950.UG.FTS.B,

28.98%,

1/25/25

..

$

678

$

697

991591061.UG.FTS.B,

28.98%,

1/25/25

..

61

63

991596420.UG.FTS.B,

28.98%,

1/25/25

..

508

522

991597262.UG.FTS.B,

28.98%,

1/25/25

..

276

283

991606681.UG.FTS.B,

28.98%,

1/25/25

..

51

51

991610850.UG.FTS.B,

28.98%,

1/25/25

..

298

22

991628889.UG.FTS.B,

28.98%,

1/25/25

..

24

25

991629059.UG.FTS.B,

28.98%,

1/25/25

..

16

16

991629093.UG.FTS.B,

28.98%,

1/25/25

..

424

441

991630315.UG.FTS.B,

28.98%,

1/25/25

..

346

78

991632477.UG.FTS.B,

28.98%,

1/25/25

..

127

131

991636211.UG.FTS.B,

28.98%,

1/25/25

..

981

980

991639961.UG.FTS.B,

28.98%,

1/25/25

..

22

22

991640090.UG.FTS.B,

28.98%,

1/25/25

..

5

5

991643813.UG.FTS.B,

28.98%,

1/25/25

..

300

41

991645264.UG.FTS.B,

28.98%,

1/25/25

..

133

138

991645484.UG.FTS.B,

28.98%,

1/25/25

..

10

10

991646347.UG.FTS.B,

28.98%,

1/25/25

..

380

385

991649479.UG.FTS.B,

28.98%,

1/25/25

..

957

71

991652825.UG.FTS.B,

28.98%,

1/25/25

..

47

47

991654044.UG.FTS.B,

28.98%,

1/25/25

..

30

2

991654157.UG.FTS.B,

28.98%,

1/25/25

..

81

84

991655910.UG.FTS.B,

28.98%,

1/25/25

..

179

182

991662696.UG.FTS.B,

28.98%,

1/25/25

..

67

10

991663409.UG.FTS.B,

28.98%,

1/25/25

..

31

31

991664838.UG.FTS.B,

28.98%,

1/25/25

..

125

130

991665672.UG.FTS.B,

28.98%,

1/25/25

..

818

834

991666507.UG.FTS.B,

28.98%,

1/25/25

..

200

208

991674166.UG.FTS.B,

28.98%,

1/25/25

..

428

36

991680531.UG.FTS.B,

28.98%,

1/25/25

..

20

20

991680544.UG.FTS.B,

28.98%,

1/25/25

..

13

13

991681316.UG.FTS.B,

28.98%,

1/25/25

..

63

63

991684431.UG.FTS.B,

28.98%,

1/25/25

..

351

365

991687378.UG.FTS.B,

28.98%,

1/25/25

..

189

194

991700245.UG.FTS.B,

28.98%,

1/25/25

..

715

(25)

991700250.UG.FTS.B,

28.98%,

1/25/25

..

322

330

991702318.UG.FTS.B,

28.98%,

1/25/25

..

123

127

991703212.UG.FTS.B,

28.98%,

1/25/25

..

21

21

991707057.UG.FTS.B,

28.98%,

1/25/25

..

29

29

991708850.UG.FTS.B,

28.98%,

1/25/25

..

276

273

991711013.UG.FTS.B,

28.98%,

1/25/25

..

382

384

991711440.UG.FTS.B,

28.98%,

1/25/25

..

71

73

991713337.UG.FTS.B,

28.98%,

1/25/25

..

51

51

991717265.UG.FTS.B,

28.98%,

1/25/25

..

107

105

991721843.UG.FTS.B,

28.98%,

1/25/25

..

3,900

(222)

991739770.UG.FTS.B,

28.98%,

1/25/25

..

172

172

991744587.UG.FTS.B,

28.98%,

1/25/25

..

195

14

991751144.UG.FTS.B,

28.98%,

1/25/25

..

267

273

991759069.UG.FTS.B,

28.98%,

1/25/25

..

208

210

991760796.UG.FTS.B,

28.98%,

1/25/25

..

1,334

(46)

991762497.UG.FTS.B,

28.98%,

1/25/25

..

88

91

991764057.UG.FTS.B,

28.98%,

1/25/25

..

73

75

991767844.UG.FTS.B,

28.98%,

1/25/25

..

140

143

991776835.UG.FTS.B,

28.98%,

1/25/25

..

162

167

991782171.UG.FTS.B,

28.98%,

1/25/25

..

38

38

991782809.UG.FTS.B,

28.98%,

1/25/25

..

237

243

991783323.UG.FTS.B,

28.98%,

1/25/25

..

445

451

991789094.UG.FTS.B,

28.98%,

1/25/25

..

124

127

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991790856.UG.FTS.B,

28.98%,

1/25/25

..

$

759

$

779

991791903.UG.FTS.B,

28.98%,

1/25/25

..

208

(7)

991801847.UG.FTS.B,

28.98%,

1/25/25

..

169

174

991804347.UG.FTS.B,

28.98%,

1/25/25

..

280

273

991804771.UG.FTS.B,

28.98%,

1/25/25

..

486

495

991805979.UG.FTS.B,

28.98%,

1/25/25

..

20

20

991811893.UG.FTS.B,

28.98%,

1/25/25

..

36

37

991813711.UG.FTS.B,

28.98%,

1/25/25

..

1,218

1,249

991816486.UG.FTS.B,

28.98%,

1/25/25

..

353

362

991826324.UG.FTS.B,

28.98%,

1/25/25

..

405

404

991829842.UG.FTS.B,

28.98%,

1/25/25

..

–

–

991832332.UG.FTS.B,

28.98%,

1/25/25

..

205

210

991583030.UG.FTS.B,

29.49%,

1/25/25

..

620

629

991583154.UG.FTS.B,

29.49%,

1/25/25

..

615

641

991583347.UG.FTS.B,

29.49%,

1/25/25

..

218

229

991583696.UG.FTS.B,

29.49%,

1/25/25

..

167

171

991584343.UG.FTS.B,

29.49%,

1/25/25

..

1,931

1,980

991584718.UG.FTS.B,

29.49%,

1/25/25

..

1,189

1,217

991584908.UG.FTS.B,

29.49%,

1/25/25

..

2,169

2,251

991584971.UG.FTS.B,

29.49%,

1/25/25

..

165

12

991586459.UG.FTS.B,

29.49%,

1/25/25

..

18

18

991586667.UG.FTS.B,

29.49%,

1/25/25

..

170

176

991586992.UG.FTS.B,

29.49%,

1/25/25

..

100

104

991588105.UG.FTS.B,

29.49%,

1/25/25

..

658

156

991588166.UG.FTS.B,

29.49%,

1/25/25

..

297

310

991588873.UG.FTS.B,

29.49%,

1/25/25

..

371

381

991591035.UG.FTS.B,

29.49%,

1/25/25

..

688

55

991591360.UG.FTS.B,

29.49%,

1/25/25

..

667

695

991592156.UG.FTS.B,

29.49%,

1/25/25

..

99

99

991592411.UG.FTS.B,

29.49%,

1/25/25

..

64

64

991592874.UG.FTS.B,

29.49%,

1/25/25

..

536

37

991595877.UG.FTS.B,

29.49%,

1/25/25

..

196

204

991595953.UG.FTS.B,

29.49%,

1/25/25

..

835

870

991597092.UG.FTS.B,

29.49%,

1/25/25

..

215

213

991598369.UG.FTS.B,

29.49%,

1/25/25

..

187

191

991598825.UG.FTS.B,

29.49%,

1/25/25

..

831

64

991604309.UG.FTS.B,

29.49%,

1/25/25

..

103

106

991611906.UG.FTS.B,

29.49%,

1/25/25

..

365

380

991617012.UG.FTS.B,

29.49%,

1/25/25

..

269

280

991625116.UG.FTS.B,

29.49%,

1/25/25

..

973

1,008

991630215.UG.FTS.B,

29.49%,

1/25/25

..

17

17

991633564.UG.FTS.B,

29.49%,

1/25/25

..

31

31

991634734.UG.FTS.B,

29.49%,

1/25/25

..

107

79

991635396.UG.FTS.B,

29.49%,

1/25/25

..

171

178

991637663.UG.FTS.B,

29.49%,

1/25/25

..

84

84

991638246.UG.FTS.B,

29.49%,

1/25/25

..

139

144

991638937.UG.FTS.B,

29.49%,

1/25/25

..

67

69

991639720.UG.FTS.B,

29.49%,

1/25/25

..

1,278

1,258

991640031.UG.FTS.B,

29.49%,

1/25/25

..

25

25

991640216.UG.FTS.B,

29.49%,

1/25/25

..

547

360

991640235.UG.FTS.B,

29.49%,

1/25/25

..

2,480

2,543

991640515.UG.FTS.B,

29.49%,

1/25/25

..

43

44

991641283.UG.FTS.B,

29.49%,

1/25/25

..

47

47

991641385.UG.FTS.B,

29.49%,

1/25/25

..

970

1,011

991641968.UG.FTS.B,

29.49%,

1/25/25

..

155

161

991642393.UG.FTS.B,

29.49%,

1/25/25

..

39

39

991642638.UG.FTS.B,

29.49%,

1/25/25

..

170

12

991642788.UG.FTS.B,

29.49%,

1/25/25

..

120

125

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991643136.UG.FTS.B,

29.49%,

1/25/25

..

$

418

$

427

991645077.UG.FTS.B,

29.49%,

1/25/25

..

55

56

991645432.UG.FTS.B,

29.49%,

1/25/25

..

99

103

991645478.UG.FTS.B,

29.49%,

1/25/25

..

12

12

991647792.UG.FTS.B,

29.49%,

1/25/25

..

107

112

991651364.UG.FTS.B,

29.49%,

1/25/25

..

22

2

991653933.UG.FTS.B,

29.49%,

1/25/25

..

26

26

991655935.UG.FTS.B,

29.49%,

1/25/25

..

1,024

996

991656796.UG.FTS.B,

29.49%,

1/25/25

..

377

85

991659437.UG.FTS.B,

29.49%,

1/25/25

..

138

144

991659953.UG.FTS.B,

29.49%,

1/25/25

..

82

6

991660574.UG.FTS.B,

29.49%,

1/25/25

..

47

48

991663552.UG.FTS.B,

29.49%,

1/25/25

..

170

177

991666619.UG.FTS.B,

29.49%,

1/25/25

..

20

20

991670639.UG.FTS.B,

29.49%,

1/25/25

..

532

547

991670995.UG.FTS.B,

29.49%,

1/25/25

..

143

149

991675825.UG.FTS.B,

29.49%,

1/25/25

..

62

5

991676449.UG.FTS.B,

29.49%,

1/25/25

..

417

434

991679229.UG.FTS.B,

29.49%,

1/25/25

..

117

121

991679419.UG.FTS.B,

29.49%,

1/25/25

..

477

497

991681203.UG.FTS.B,

29.49%,

1/25/25

..

888

919

991684401.UG.FTS.B,

29.49%,

1/25/25

..

48

49

991684610.UG.FTS.B,

29.49%,

1/25/25

..

212

142

991686520.UG.FTS.B,

29.49%,

1/25/25

..

400

413

991693307.UG.FTS.B,

29.49%,

1/25/25

..

256

267

991694763.UG.FTS.B,

29.49%,

1/25/25

..

902

69

991695356.UG.FTS.B,

29.49%,

1/25/25

..

128

128

991697889.UG.FTS.B,

29.49%,

1/25/25

..

244

255

991699956.UG.FTS.B,

29.49%,

1/25/25

..

106

75

991700008.UG.FTS.B,

29.49%,

1/25/25

..

10

10

991700911.UG.FTS.B,

29.49%,

1/25/25

..

31

32

991703126.UG.FTS.B,

29.49%,

1/25/25

..

324

24

991703545.UG.FTS.B,

29.49%,

1/25/25

..

293

298

991705543.UG.FTS.B,

29.49%,

1/25/25

..

426

430

991706117.UG.FTS.B,

29.49%,

1/25/25

..

133

138

991706527.UG.FTS.B,

29.49%,

1/25/25

..

94

94

991706986.UG.FTS.B,

29.49%,

1/25/25

..

13

13

991708160.UG.FTS.B,

29.49%,

1/25/25

..

–

–

991714470.UG.FTS.B,

29.49%,

1/25/25

..

431

442

991716801.UG.FTS.B,

29.49%,

1/25/25

..

173

175

991717980.UG.FTS.B,

29.49%,

1/25/25

..

297

309

991718230.UG.FTS.B,

29.49%,

1/25/25

..

46

46

991719114.UG.FTS.B,

29.49%,

1/25/25

..

97

96

991719643.UG.FTS.B,

29.49%,

1/25/25

..

150

105

991721073.UG.FTS.B,

29.49%,

1/25/25

..

282

292

991722230.UG.FTS.B,

29.49%,

1/25/25

..

127

127

991727305.UG.FTS.B,

29.49%,

1/25/25

..

826

860

991727344.UG.FTS.B,

29.49%,

1/25/25

..

166

166

991729230.UG.FTS.B,

29.49%,

1/25/25

..

1,285

1,289

991730081.UG.FTS.B,

29.49%,

1/25/25

..

496

516

991730401.UG.FTS.B,

29.49%,

1/25/25

..

63

65

991732943.UG.FTS.B,

29.49%,

1/25/25

..

175

179

991733186.UG.FTS.B,

29.49%,

1/25/25

..

515

495

991734934.UG.FTS.B,

29.49%,

1/25/25

..

275

276

991735215.UG.FTS.B,

29.49%,

1/25/25

..

147

21

991737501.UG.FTS.B,

29.49%,

1/25/25

..

208

217

991742587.UG.FTS.B,

29.49%,

1/25/25

..

69

70

991742823.UG.FTS.B,

29.49%,

1/25/25

..

390

400

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991750890.UG.FTS.B,

29.49%,

1/25/25

..

$

224

$

229

991754317.UG.FTS.B,

29.49%,

1/25/25

..

43

(1)

991756609.UG.FTS.B,

29.49%,

1/25/25

..

587

601

991758553.UG.FTS.B,

29.49%,

1/25/25

..

192

196

991759900.UG.FTS.B,

29.49%,

1/25/25

..

242

248

991762455.UG.FTS.B,

29.49%,

1/25/25

..

1,428

1,459

991764053.UG.FTS.B,

29.49%,

1/25/25

..

190

191

991765575.UG.FTS.B,

29.49%,

1/25/25

..

–

–

991768411.UG.FTS.B,

29.49%,

1/25/25

..

29

29

991772741.UG.FTS.B,

29.49%,

1/25/25

..

43

44

991773006.UG.FTS.B,

29.49%,

1/25/25

..

502

510

991777926.UG.FTS.B,

29.49%,

1/25/25

..

103

105

991778023.UG.FTS.B,

29.49%,

1/25/25

..

114

(4)

991779723.UG.FTS.B,

29.49%,

1/25/25

..

65

67

991781861.UG.FTS.B,

29.49%,

1/25/25

..

740

759

991783032.UG.FTS.B,

29.49%,

1/25/25

..

139

140

991783087.UG.FTS.B,

29.49%,

1/25/25

..

362

371

991783334.UG.FTS.B,

29.49%,

1/25/25

..

81

6

991783420.UG.FTS.B,

29.49%,

1/25/25

..

111

114

991783815.UG.FTS.B,

29.49%,

1/25/25

..

164

168

991784811.UG.FTS.B,

29.49%,

1/25/25

..

–

–

991787734.UG.FTS.B,

29.49%,

1/25/25

..

535

549

991788573.UG.FTS.B,

29.49%,

1/25/25

..

206

211

991789248.UG.FTS.B,

29.49%,

1/25/25

..

155

159

991789795.UG.FTS.B,

29.49%,

1/25/25

..

355

363

991790746.UG.FTS.B,

29.49%,

1/25/25

..

113

116

991792282.UG.FTS.B,

29.49%,

1/25/25

..

422

431

991795623.UG.FTS.B,

29.49%,

1/25/25

..

36

6

991796444.UG.FTS.B,

29.49%,

1/25/25

..

68

(2)

991798150.UG.FTS.B,

29.49%,

1/25/25

..

749

766

991798152.UG.FTS.B,

29.49%,

1/25/25

..

51

52

991800376.UG.FTS.B,

29.49%,

1/25/25

..

549

(16)

991801570.UG.FTS.B,

29.49%,

1/25/25

..

906

72

991803714.UG.FTS.B,

29.49%,

1/25/25

..

156

160

991809008.UG.FTS.B,

29.49%,

1/25/25

..

63

63

991811394.UG.FTS.B,

29.49%,

1/25/25

..

166

(9)

991812847.UG.FTS.B,

29.49%,

1/25/25

..

82

85

991813221.UG.FTS.B,

29.49%,

1/25/25

..

146

141

991813928.UG.FTS.B,

29.49%,

1/25/25

..

165

36

991814046.UG.FTS.B,

29.49%,

1/25/25

..

27

27

991819908.UG.FTS.B,

29.49%,

1/25/25

..

163

166

991822276.UG.FTS.B,

29.49%,

1/25/25

..

216

221

991824971.UG.FTS.B,

29.49%,

1/25/25

..

20

20

991831947.UG.FTS.B,

29.49%,

1/25/25

..

92

66

991764505.UG.FTS.B,

29.99%,

1/25/25

..

23

23

991611773.UG.FTS.B,

Zero

Cpn,

1/26/25

.

175

12

991666502.UG.FTS.B,

Zero

Cpn,

1/26/25

.

564

39

991671099.UG.FTS.B,

Zero

Cpn,

1/26/25

.

352

24

991674155.UG.FTS.B,

Zero

Cpn,

1/26/25

.

183

13

991696562.UG.FTS.B,

Zero

Cpn,

1/26/25

.

50

4

991727706.UG.FTS.B,

Zero

Cpn,

1/26/25

.

41

3

991757929.UG.FTS.B,

Zero

Cpn,

1/26/25

.

63

4

991705574.UG.FTS.B,

14.98%,

1/26/25

..

620

633

991763100.UG.FTS.B,

15%,

1/26/25

.....

22

22

991588990.UG.FTS.B,

16.99%,

1/26/25

..

1,884

1,920

991739565.UG.FTS.B,

16.99%,

1/26/25

..

5,572

5,690

991631242.UG.FTS.B,

17.99%,

1/26/25

..

529

539

991635395.UG.FTS.B,

17.99%,

1/26/25

..

643

655

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

129

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991730063.UG.FTS.B,

17.99%,

1/26/25

..

$

3,196

$

3,262

991806807.UG.FTS.B,

17.99%,

1/26/25

..

505

512

991630337.UG.FTS.B,

18.97%,

1/26/25

..

108

13

991639126.UG.FTS.B,

18.97%,

1/26/25

..

173

176

991792817.UG.FTS.B,

18.97%,

1/26/25

..

871

561

991629418.UG.FTS.B,

19.21%,

1/26/25

..

839

62

991638998.UG.FTS.B,

19.21%,

1/26/25

..

44

44

991706919.UG.FTS.B,

19.21%,

1/26/25

..

109

111

991791869.UG.FTS.B,

19.21%,

1/26/25

..

254

31

991693301.UG.FTS.B,

19.8%,

1/26/25

...

194

198

991594697.UG.FTS.B,

19.99%,

1/26/25

..

324

337

991623713.UG.FTS.B,

19.99%,

1/26/25

..

803

809

991664112.UG.FTS.B,

19.99%,

1/26/25

..

860

881

991666842.UG.FTS.B,

19.99%,

1/26/25

..

627

631

991684874.UG.FTS.B,

19.99%,

1/26/25

..

131

134

991687274.UG.FTS.B,

19.99%,

1/26/25

..

234

240

991712940.UG.FTS.B,

19.99%,

1/26/25

..

10

10

991725855.UG.FTS.B,

19.99%,

1/26/25

..

349

355

991726295.UG.FTS.B,

19.99%,

1/26/25

..

532

534

991747371.UG.FTS.B,

19.99%,

1/26/25

..

244

253

991753153.UG.FTS.B,

19.99%,

1/26/25

..

66

67

991815429.UG.FTS.B,

19.99%,

1/26/25

..

823

103

991818136.UG.FTS.B,

19.99%,

1/26/25

..

159

163

991722451.UG.FTS.B,

20.46%,

1/26/25

..

765

779

991691649.UG.FTS.B,

20.97%,

1/26/25

..

607

604

991689234.UG.FTS.B,

21.46%,

1/26/25

..

192

195

991804044.UG.FTS.B,

21.46%,

1/26/25

..

50

50

991683377.UG.FTS.B,

21.97%,

1/26/25

..

189

192

991690970.UG.FTS.B,

21.98%,

1/26/25

..

1,217

1,236

991718023.UG.FTS.B,

22.97%,

1/26/25

..

475

474

991792398.UG.FTS.B,

22.97%,

1/26/25

..

158

159

991634009.UG.FTS.B,

23.95%,

1/26/25

..

126

126

991661911.UG.FTS.B,

23.95%,

1/26/25

..

724

719

991671848.UG.FTS.B,

23.95%,

1/26/25

..

13

13

991719060.UG.FTS.B,

23.95%,

1/26/25

..

2,849

2,887

991812444.UG.FTS.B,

23.95%,

1/26/25

..

679

681

991662693.UG.FTS.B,

24.95%,

1/26/25

..

72

73

991655277.UG.FTS.B,

25.95%,

1/26/25

..

194

196

991702170.UG.FTS.B,

26.94%,

1/26/25

..

202

196

991637426.UG.FTS.B,

27.99%,

1/26/25

..

42

43

991644445.UG.FTS.B,

27.99%,

1/26/25

..

112

116

991662668.UG.FTS.B,

27.99%,

1/26/25

..

315

43

991665705.UG.FTS.B,

27.99%,

1/26/25

..

136

142

991799474.UG.FTS.B,

27.99%,

1/26/25

..

472

35

991589081.UG.FTS.B,

28.98%,

1/26/25

..

300

309

991592909.UG.FTS.B,

28.98%,

1/26/25

..

216

221

991593236.UG.FTS.B,

28.98%,

1/26/25

..

292

297

991593526.UG.FTS.B,

28.98%,

1/26/25

..

260

270

991593781.UG.FTS.B,

28.98%,

1/26/25

..

139

144

991594391.UG.FTS.B,

28.98%,

1/26/25

..

216

225

991598258.UG.FTS.B,

28.98%,

1/26/25

..

259

18

991602284.UG.FTS.B,

28.98%,

1/26/25

..

1,872

1,904

991604950.UG.FTS.B,

28.98%,

1/26/25

..

128

133

991607010.UG.FTS.B,

28.98%,

1/26/25

..

8

8

991611008.UG.FTS.B,

28.98%,

1/26/25

..

538

343

991611456.UG.FTS.B,

28.98%,

1/26/25

..

48

48

991618996.UG.FTS.B,

28.98%,

1/26/25

..

36

36

991629035.UG.FTS.B,

28.98%,

1/26/25

..

207

215

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991634636.UG.FTS.B,

28.98%,

1/26/25

..

$

437

$

455

991636455.UG.FTS.B,

28.98%,

1/26/25

..

91

93

991638710.UG.FTS.B,

28.98%,

1/26/25

..

233

35

991638977.UG.FTS.B,

28.98%,

1/26/25

..

287

294

991641894.UG.FTS.B,

28.98%,

1/26/25

..

143

146

991653899.UG.FTS.B,

28.98%,

1/26/25

..

111

116

991656180.UG.FTS.B,

28.98%,

1/26/25

..

249

260

991658925.UG.FTS.B,

28.98%,

1/26/25

..

152

155

991661348.UG.FTS.B,

28.98%,

1/26/25

..

1,222

1,271

991661921.UG.FTS.B,

28.98%,

1/26/25

..

87

86

991662390.UG.FTS.B,

28.98%,

1/26/25

..

198

205

991663523.UG.FTS.B,

28.98%,

1/26/25

..

14

14

991664416.UG.FTS.B,

28.98%,

1/26/25

..

321

328

991668688.UG.FTS.B,

28.98%,

1/26/25

..

558

581

991676711.UG.FTS.B,

28.98%,

1/26/25

..

513

502

991678461.UG.FTS.B,

28.98%,

1/26/25

..

165

170

991682612.UG.FTS.B,

28.98%,

1/26/25

..

151

150

991685049.UG.FTS.B,

28.98%,

1/26/25

..

84

87

991686492.UG.FTS.B,

28.98%,

1/26/25

..

27

27

991688671.UG.FTS.B,

28.98%,

1/26/25

..

240

247

991698131.UG.FTS.B,

28.98%,

1/26/25

..

448

449

991701049.UG.FTS.B,

28.98%,

1/26/25

..

351

(11)

991701435.UG.FTS.B,

28.98%,

1/26/25

..

277

288

991702578.UG.FTS.B,

28.98%,

1/26/25

..

32

32

991703821.UG.FTS.B,

28.98%,

1/26/25

..

205

213

991711212.UG.FTS.B,

28.98%,

1/26/25

..

87

90

991716060.UG.FTS.B,

28.98%,

1/26/25

..

1,013

76

991718057.UG.FTS.B,

28.98%,

1/26/25

..

989

653

991743995.UG.FTS.B,

28.98%,

1/26/25

..

210

215

991745922.UG.FTS.B,

28.98%,

1/26/25

..

108

108

991747643.UG.FTS.B,

28.98%,

1/26/25

..

104

104

991748077.UG.FTS.B,

28.98%,

1/26/25

..

73

10

991750713.UG.FTS.B,

28.98%,

1/26/25

..

59

60

991753802.UG.FTS.B,

28.98%,

1/26/25

..

174

175

991759756.UG.FTS.B,

28.98%,

1/26/25

..

82

84

991764630.UG.FTS.B,

28.98%,

1/26/25

..

71

73

991774958.UG.FTS.B,

28.98%,

1/26/25

..

22

4

991778410.UG.FTS.B,

28.98%,

1/26/25

..

32

32

991781688.UG.FTS.B,

28.98%,

1/26/25

..

33

34

991788301.UG.FTS.B,

28.98%,

1/26/25

..

289

296

991788973.UG.FTS.B,

28.98%,

1/26/25

..

418

429

991804080.UG.FTS.B,

28.98%,

1/26/25

..

113

116

991808600.UG.FTS.B,

28.98%,

1/26/25

..

261

261

991808749.UG.FTS.B,

28.98%,

1/26/25

..

49

50

991817075.UG.FTS.B,

28.98%,

1/26/25

..

217

220

991818761.UG.FTS.B,

28.98%,

1/26/25

..

131

135

991820446.UG.FTS.B,

28.98%,

1/26/25

..

130

133

991822639.UG.FTS.B,

28.98%,

1/26/25

..

23

23

991823991.UG.FTS.B,

28.98%,

1/26/25

..

65

5

991826236.UG.FTS.B,

28.98%,

1/26/25

..

678

696

991828591.UG.FTS.B,

28.98%,

1/26/25

..

32

32

991828828.UG.FTS.B,

28.98%,

1/26/25

..

–

–

991831863.UG.FTS.B,

28.98%,

1/26/25

..

507

516

991833990.UG.FTS.B,

28.98%,

1/26/25

..

440

32

991834277.UG.FTS.B,

28.98%,

1/26/25

..

409

420

991834362.UG.FTS.B,

28.98%,

1/26/25

..

360

369

991834597.UG.FTS.B,

28.98%,

1/26/25

..

3,559

3,654

991603387.UG.FTS.B,

29.45%,

1/26/25

..

–

–

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991628939.UG.FTS.B,

29.45%,

1/26/25

..

$

11

$

11

991671164.UG.FTS.B,

29.45%,

1/26/25

..

17

17

991712881.UG.FTS.B,

29.46%,

1/26/25

..

645

671

991588896.UG.FTS.B,

29.49%,

1/26/25

..

532

73

991589080.UG.FTS.B,

29.49%,

1/26/25

..

478

494

991589676.UG.FTS.B,

29.49%,

1/26/25

..

1,014

1,050

991589741.UG.FTS.B,

29.49%,

1/26/25

..

90

94

991589757.UG.FTS.B,

29.49%,

1/26/25

..

294

295

991589763.UG.FTS.B,

29.49%,

1/26/25

..

189

197

991591083.UG.FTS.B,

29.49%,

1/26/25

..

336

46

991591418.UG.FTS.B,

29.49%,

1/26/25

..

354

366

991592122.UG.FTS.B,

29.49%,

1/26/25

..

378

395

991592192.UG.FTS.B,

29.49%,

1/26/25

..

188

196

991594647.UG.FTS.B,

29.49%,

1/26/25

..

132

101

991596813.UG.FTS.B,

29.49%,

1/26/25

..

26

27

991598816.UG.FTS.B,

29.49%,

1/26/25

..

163

167

991606181.UG.FTS.B,

29.49%,

1/26/25

..

288

300

991607097.UG.FTS.B,

29.49%,

1/26/25

..

368

385

991612147.UG.FTS.B,

29.49%,

1/26/25

..

108

112

991613744.UG.FTS.B,

29.49%,

1/26/25

..

200

206

991614201.UG.FTS.B,

29.49%,

1/26/25

..

34

35

991616010.UG.FTS.B,

29.49%,

1/26/25

..

1,403

1,461

991616526.UG.FTS.B,

29.49%,

1/26/25

..

202

211

991616810.UG.FTS.B,

29.49%,

1/26/25

..

435

445

991622618.UG.FTS.B,

29.49%,

1/26/25

..

200

205

991629066.UG.FTS.B,

29.49%,

1/26/25

..

35

3

991629685.UG.FTS.B,

29.49%,

1/26/25

..

65

5

991630176.UG.FTS.B,

29.49%,

1/26/25

..

76

76

991635627.UG.FTS.B,

29.49%,

1/26/25

..

193

133

991637203.UG.FTS.B,

29.49%,

1/26/25

..

224

234

991637588.UG.FTS.B,

29.49%,

1/26/25

..

429

425

991637756.UG.FTS.B,

29.49%,

1/26/25

..

1,292

1,317

991638709.UG.FTS.B,

29.49%,

1/26/25

..

174

180

991640409.UG.FTS.B,

29.49%,

1/26/25

..

128

131

991640808.UG.FTS.B,

29.49%,

1/26/25

..

394

410

991641553.UG.FTS.B,

29.49%,

1/26/25

..

153

159

991642753.UG.FTS.B,

29.49%,

1/26/25

..

57

(2)

991642902.UG.FTS.B,

29.49%,

1/26/25

..

6

6

991644594.UG.FTS.B,

29.49%,

1/26/25

..

375

391

991644850.UG.FTS.B,

29.49%,

1/26/25

..

349

47

991645076.UG.FTS.B,

29.49%,

1/26/25

..

29

30

991645315.UG.FTS.B,

29.49%,

1/26/25

..

99

101

991645424.UG.FTS.B,

29.49%,

1/26/25

..

154

161

991647827.UG.FTS.B,

29.49%,

1/26/25

..

147

101

991650260.UG.FTS.B,

29.49%,

1/26/25

..

1,014

1,057

991656366.UG.FTS.B,

29.49%,

1/26/25

..

380

266

991656936.UG.FTS.B,

29.49%,

1/26/25

..

168

167

991657417.UG.FTS.B,

29.49%,

1/26/25

..

2,384

2,380

991659414.UG.FTS.B,

29.49%,

1/26/25

..

122

121

991662234.UG.FTS.B,

29.49%,

1/26/25

..

136

142

991663167.UG.FTS.B,

29.49%,

1/26/25

..

36

35

991663623.UG.FTS.B,

29.49%,

1/26/25

..

144

151

991663670.UG.FTS.B,

29.49%,

1/26/25

..

113

8

991664371.UG.FTS.B,

29.49%,

1/26/25

..

392

398

991665870.UG.FTS.B,

29.49%,

1/26/25

..

112

113

991668133.UG.FTS.B,

29.49%,

1/26/25

..

126

129

991668328.UG.FTS.B,

29.49%,

1/26/25

..

121

125

991669892.UG.FTS.B,

29.49%,

1/26/25

..

109

110

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991670459.UG.FTS.B,

29.49%,

1/26/25

..

$

439

$

458

991673737.UG.FTS.B,

29.49%,

1/26/25

..

3,990

4,154

991674354.UG.FTS.B,

29.49%,

1/26/25

..

–

–

991674552.UG.FTS.B,

29.49%,

1/26/25

..

236

247

991676951.UG.FTS.B,

29.49%,

1/26/25

..

142

(4)

991677158.UG.FTS.B,

29.49%,

1/26/25

..

232

242

991678960.UG.FTS.B,

29.49%,

1/26/25

..

55

55

991679458.UG.FTS.B,

29.49%,

1/26/25

..

257

260

991680335.UG.FTS.B,

29.49%,

1/26/25

..

1,573

1,561

991682957.UG.FTS.B,

29.49%,

1/26/25

..

1,080

1,126

991683869.UG.FTS.B,

29.49%,

1/26/25

..

24

25

991686193.UG.FTS.B,

29.49%,

1/26/25

..

63

65

991686518.UG.FTS.B,

29.49%,

1/26/25

..

241

247

991686747.UG.FTS.B,

29.49%,

1/26/25

..

27

27

991686882.UG.FTS.B,

29.49%,

1/26/25

..

302

311

991688387.UG.FTS.B,

29.49%,

1/26/25

..

939

968

991695029.UG.FTS.B,

29.49%,

1/26/25

..

58

58

991695946.UG.FTS.B,

29.49%,

1/26/25

..

534

548

991698577.UG.FTS.B,

29.49%,

1/26/25

..

463

476

991703021.UG.FTS.B,

29.49%,

1/26/25

..

–

–

991704585.UG.FTS.B,

29.49%,

1/26/25

..

288

(3)

991707041.UG.FTS.B,

29.49%,

1/26/25

..

88

91

991710350.UG.FTS.B,

29.49%,

1/26/25

..

70

72

991710670.UG.FTS.B,

29.49%,

1/26/25

..

517

535

991711068.UG.FTS.B,

29.49%,

1/26/25

..

79

81

991714720.UG.FTS.B,

29.49%,

1/26/25

..

621

635

991722546.UG.FTS.B,

29.49%,

1/26/25

..

35

36

991727832.UG.FTS.B,

29.49%,

1/26/25

..

283

294

991731015.UG.FTS.B,

29.49%,

1/26/25

..

80

83

991742213.UG.FTS.B,

29.49%,

1/26/25

..

1,295

1,350

991742808.UG.FTS.B,

29.49%,

1/26/25

..

474

483

991744262.UG.FTS.B,

29.49%,

1/26/25

..

63

65

991748382.UG.FTS.B,

29.49%,

1/26/25

..

608

84

991749224.UG.FTS.B,

29.49%,

1/26/25

..

103

107

991756106.UG.FTS.B,

29.49%,

1/26/25

..

194

202

991766090.UG.FTS.B,

29.49%,

1/26/25

..

12

12

991772896.UG.FTS.B,

29.49%,

1/26/25

..

2,462

2,526

991775324.UG.FTS.B,

29.49%,

1/26/25

..

528

540

991777453.UG.FTS.B,

29.49%,

1/26/25

..

34

34

991779497.UG.FTS.B,

29.49%,

1/26/25

..

322

330

991782801.UG.FTS.B,

29.49%,

1/26/25

..

2,410

2,467

991783902.UG.FTS.B,

29.49%,

1/26/25

..

279

287

991784518.UG.FTS.B,

29.49%,

1/26/25

..

908

932

991791204.UG.FTS.B,

29.49%,

1/26/25

..

34

34

991791950.UG.FTS.B,

29.49%,

1/26/25

..

632

648

991793797.UG.FTS.B,

29.49%,

1/26/25

..

239

242

991798670.UG.FTS.B,

29.49%,

1/26/25

..

–

–

991801746.UG.FTS.B,

29.49%,

1/26/25

..

465

475

991804476.UG.FTS.B,

29.49%,

1/26/25

..

105

107

991806530.UG.FTS.B,

29.49%,

1/26/25

..

163

167

991817678.UG.FTS.B,

29.49%,

1/26/25

..

180

182

991820442.UG.FTS.B,

29.49%,

1/26/25

..

137

140

991823773.UG.FTS.B,

29.49%,

1/26/25

..

–

–

991825508.UG.FTS.B,

29.49%,

1/26/25

..

23

23

991826343.UG.FTS.B,

29.49%,

1/26/25

..

609

626

991827132.UG.FTS.B,

29.49%,

1/26/25

..

124

127

991829394.UG.FTS.B,

29.49%,

1/26/25

..

911

907

991832099.UG.FTS.B,

29.49%,

1/26/25

..

65

67

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

131

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991835725.UG.FTS.B,

29.49%,

1/26/25

..

$

1,392

$

1,429

991835985.UG.FTS.B,

29.49%,

1/26/25

..

1,311

1,345

991836703.UG.FTS.B,

29.49%,

1/26/25

..

90

91

991836743.UG.FTS.B,

29.49%,

1/26/25

..

88

12

991594818.UG.FTS.B,

Zero

Cpn,

1/27/25

.

211

15

991595486.UG.FTS.B,

Zero

Cpn,

1/27/25

.

1,452

100

991596178.UG.FTS.B,

Zero

Cpn,

1/27/25

.

1,176

81

991607365.UG.FTS.B,

Zero

Cpn,

1/27/25

.

673

47

991633180.UG.FTS.B,

Zero

Cpn,

1/27/25

.

65

5

991633389.UG.FTS.B,

Zero

Cpn,

1/27/25

.

311

21

991647805.UG.FTS.B,

Zero

Cpn,

1/27/25

.

83

6

991668952.UG.FTS.B,

Zero

Cpn,

1/27/25

.

159

11

991675189.UG.FTS.B,

Zero

Cpn,

1/27/25

.

82

6

991687469.UG.FTS.B,

Zero

Cpn,

1/27/25

.

590

40

991722603.UG.FTS.B,

Zero

Cpn,

1/27/25

.

302

21

991765894.UG.FTS.B,

Zero

Cpn,

1/27/25

.

83

6

991789576.UG.FTS.B,

Zero

Cpn,

1/27/25

.

96

7

991793422.UG.FTS.B,

Zero

Cpn,

1/27/25

.

175

12

991794872.UG.FTS.B,

Zero

Cpn,

1/27/25

.

–

–

991649409.UG.FTS.B,

14.98%,

1/27/25

..

–

–

991681455.UG.FTS.B,

15%,

1/27/25

.....

669

679

991594447.UG.FTS.B,

16.99%,

1/27/25

..

5,346

5,430

991653237.UG.FTS.B,

16.99%,

1/27/25

..

388

27

991653768.UG.FTS.B,

16.99%,

1/27/25

..

185

189

991594369.UG.FTS.B,

19.99%,

1/27/25

..

274

280

991595612.UG.FTS.B,

19.99%,

1/27/25

..

30

30

991603461.UG.FTS.B,

19.99%,

1/27/25

..

670

698

991604490.UG.FTS.B,

19.99%,

1/27/25

..

154

160

991604987.UG.FTS.B,

19.99%,

1/27/25

..

324

337

991606626.UG.FTS.B,

19.99%,

1/27/25

..

333

346

991606748.UG.FTS.B,

19.99%,

1/27/25

..

218

224

991607069.UG.FTS.B,

19.99%,

1/27/25

..

–

–

991610646.UG.FTS.B,

19.99%,

1/27/25

..

167

174

991613039.UG.FTS.B,

19.99%,

1/27/25

..

710

734

991613609.UG.FTS.B,

19.99%,

1/27/25

..

178

183

991616276.UG.FTS.B,

19.99%,

1/27/25

..

113

114

991622510.UG.FTS.B,

19.99%,

1/27/25

..

51

52

991629277.UG.FTS.B,

19.99%,

1/27/25

..

59

5

991634123.UG.FTS.B,

19.99%,

1/27/25

..

1,473

977

991639649.UG.FTS.B,

19.99%,

1/27/25

..

1,719

1,752

991653534.UG.FTS.B,

19.99%,

1/27/25

..

164

170

991656462.UG.FTS.B,

19.99%,

1/27/25

..

137

142

991665857.UG.FTS.B,

19.99%,

1/27/25

..

199

207

991670504.UG.FTS.B,

19.99%,

1/27/25

..

93

93

991679362.UG.FTS.B,

19.99%,

1/27/25

..

73

76

991687385.UG.FTS.B,

19.99%,

1/27/25

..

252

262

991734391.UG.FTS.B,

19.99%,

1/27/25

..

40

41

991740576.UG.FTS.B,

19.99%,

1/27/25

..

402

419

991742004.UG.FTS.B,

19.99%,

1/27/25

..

79

82

991787817.UG.FTS.B,

19.99%,

1/27/25

..

128

131

991790958.UG.FTS.B,

19.99%,

1/27/25

..

18

18

991836470.UG.FTS.B,

19.99%,

1/27/25

..

136

140

991611207.UG.FTS.B,

22.95%,

1/27/25

..

748

751

991666052.UG.FTS.B,

25.98%,

1/27/25

..

100

23

991599071.UG.FTS.B,

26.49%,

1/27/25

..

341

230

991593388.UG.FTS.B,

27.99%,

1/27/25

..

82

85

991598032.UG.FTS.B,

27.99%,

1/27/25

..

204

210

991612981.UG.FTS.B,

27.99%,

1/27/25

..

23

24

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991629247.UG.FTS.B,

27.99%,

1/27/25

..

$

185

$

190

991784579.UG.FTS.B,

27.99%,

1/27/25

..

58

59

991593683.UG.FTS.B,

28.98%,

1/27/25

..

7

7

991593724.UG.FTS.B,

28.98%,

1/27/25

..

332

331

991594281.UG.FTS.B,

28.98%,

1/27/25

..

301

301

991594298.UG.FTS.B,

28.98%,

1/27/25

..

154

154

991594312.UG.FTS.B,

28.98%,

1/27/25

..

554

554

991594933.UG.FTS.B,

28.98%,

1/27/25

..

1,354

1,397

991594966.UG.FTS.B,

28.98%,

1/27/25

..

58

60

991595331.UG.FTS.B,

28.98%,

1/27/25

..

70

70

991595661.UG.FTS.B,

28.98%,

1/27/25

..

37

38

991595696.UG.FTS.B,

28.98%,

1/27/25

..

76

78

991596135.UG.FTS.B,

28.98%,

1/27/25

..

57

59

991596423.UG.FTS.B,

28.98%,

1/27/25

..

1,060

1,080

991596472.UG.FTS.B,

28.98%,

1/27/25

..

355

368

991596874.UG.FTS.B,

28.98%,

1/27/25

..

207

214

991596979.UG.FTS.B,

28.98%,

1/27/25

..

784

807

991597253.UG.FTS.B,

28.98%,

1/27/25

..

53

54

991597711.UG.FTS.B,

28.98%,

1/27/25

..

158

164

991597724.UG.FTS.B,

28.98%,

1/27/25

..

41

41

991597802.UG.FTS.B,

28.98%,

1/27/25

..

–

–

991597854.UG.FTS.B,

28.98%,

1/27/25

..

427

56

991598054.UG.FTS.B,

28.98%,

1/27/25

..

366

366

991598602.UG.FTS.B,

28.98%,

1/27/25

..

172

179

991598783.UG.FTS.B,

28.98%,

1/27/25

..

1,094

1,101

991599313.UG.FTS.B,

28.98%,

1/27/25

..

429

446

991600295.UG.FTS.B,

28.98%,

1/27/25

..

167

174

991601203.UG.FTS.B,

28.98%,

1/27/25

..

2,152

2,241

991602564.UG.FTS.B,

28.98%,

1/27/25

..

73

76

991602821.UG.FTS.B,

28.98%,

1/27/25

..

1,521

1,482

991602932.UG.FTS.B,

28.98%,

1/27/25

..

314

315

991603572.UG.FTS.B,

28.98%,

1/27/25

..

1,479

1,533

991604001.UG.FTS.B,

28.98%,

1/27/25

..

218

227

991605311.UG.FTS.B,

28.98%,

1/27/25

..

97

101

991605868.UG.FTS.B,

28.98%,

1/27/25

..

308

321

991606158.UG.FTS.B,

28.98%,

1/27/25

..

145

149

991607306.UG.FTS.B,

28.98%,

1/27/25

..

96

100

991608665.UG.FTS.B,

28.98%,

1/27/25

..

537

560

991609082.UG.FTS.B,

28.98%,

1/27/25

..

182

40

991609616.UG.FTS.B,

28.98%,

1/27/25

..

322

335

991611663.UG.FTS.B,

28.98%,

1/27/25

..

320

329

991613097.UG.FTS.B,

28.98%,

1/27/25

..

175

183

991614181.UG.FTS.B,

28.98%,

1/27/25

..

241

241

991614332.UG.FTS.B,

28.98%,

1/27/25

..

–

–

991615144.UG.FTS.B,

28.98%,

1/27/25

..

174

181

991615331.UG.FTS.B,

28.98%,

1/27/25

..

172

23

991615612.UG.FTS.B,

28.98%,

1/27/25

..

122

8

991615892.UG.FTS.B,

28.98%,

1/27/25

..

612

638

991616336.UG.FTS.B,

28.98%,

1/27/25

..

171

(5)

991617077.UG.FTS.B,

28.98%,

1/27/25

..

244

251

991617118.UG.FTS.B,

28.98%,

1/27/25

..

297

300

991617463.UG.FTS.B,

28.98%,

1/27/25

..

350

348

991618978.UG.FTS.B,

28.98%,

1/27/25

..

230

236

991620210.UG.FTS.B,

28.98%,

1/27/25

..

154

160

991620222.UG.FTS.B,

28.98%,

1/27/25

..

108

110

991620928.UG.FTS.B,

28.98%,

1/27/25

..

96

100

991621129.UG.FTS.B,

28.98%,

1/27/25

..

541

563

991623327.UG.FTS.B,

28.98%,

1/27/25

..

47

48

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991623357.UG.FTS.B,

28.98%,

1/27/25

..

$

247

$

257

991623437.UG.FTS.B,

28.98%,

1/27/25

..

356

370

991624157.UG.FTS.B,

28.98%,

1/27/25

..

138

144

991627111.UG.FTS.B,

28.98%,

1/27/25

..

4,174

4,349

991628534.UG.FTS.B,

28.98%,

1/27/25

..

–

–

991630700.UG.FTS.B,

28.98%,

1/27/25

..

340

354

991631171.UG.FTS.B,

28.98%,

1/27/25

..

296

305

991631807.UG.FTS.B,

28.98%,

1/27/25

..

254

263

991632093.UG.FTS.B,

28.98%,

1/27/25

..

379

395

991632344.UG.FTS.B,

28.98%,

1/27/25

..

111

115

991633929.UG.FTS.B,

28.98%,

1/27/25

..

566

589

991634644.UG.FTS.B,

28.98%,

1/27/25

..

114

112

991635049.UG.FTS.B,

28.98%,

1/27/25

..

544

557

991635121.UG.FTS.B,

28.98%,

1/27/25

..

834

869

991635670.UG.FTS.B,

28.98%,

1/27/25

..

834

869

991636408.UG.FTS.B,

28.98%,

1/27/25

..

448

449

991637847.UG.FTS.B,

28.98%,

1/27/25

..

125

130

991639732.UG.FTS.B,

28.98%,

1/27/25

..

50

51

991643120.UG.FTS.B,

28.98%,

1/27/25

..

476

489

991643233.UG.FTS.B,

28.98%,

1/27/25

..

34

35

991643359.UG.FTS.B,

28.98%,

1/27/25

..

309

(18)

991644066.UG.FTS.B,

28.98%,

1/27/25

..

64

64

991645234.UG.FTS.B,

28.98%,

1/27/25

..

108

113

991645498.UG.FTS.B,

28.98%,

1/27/25

..

261

268

991645642.UG.FTS.B,

28.98%,

1/27/25

..

117

122

991646436.UG.FTS.B,

28.98%,

1/27/25

..

336

350

991649491.UG.FTS.B,

28.98%,

1/27/25

..

224

150

991651616.UG.FTS.B,

28.98%,

1/27/25

..

88

92

991652055.UG.FTS.B,

28.98%,

1/27/25

..

35

36

991653209.UG.FTS.B,

28.98%,

1/27/25

..

2,660

2,769

991653220.UG.FTS.B,

28.98%,

1/27/25

..

189

191

991654533.UG.FTS.B,

28.98%,

1/27/25

..

223

231

991654856.UG.FTS.B,

28.98%,

1/27/25

..

540

563

991657182.UG.FTS.B,

28.98%,

1/27/25

..

1,665

1,734

991658220.UG.FTS.B,

28.98%,

1/27/25

..

869

906

991659123.UG.FTS.B,

28.98%,

1/27/25

..

117

16

991659335.UG.FTS.B,

28.98%,

1/27/25

..

367

383

991660335.UG.FTS.B,

28.98%,

1/27/25

..

215

222

991663420.UG.FTS.B,

28.98%,

1/27/25

..

1,892

1,971

991664621.UG.FTS.B,

28.98%,

1/27/25

..

183

190

991664680.UG.FTS.B,

28.98%,

1/27/25

..

413

430

991666634.UG.FTS.B,

28.98%,

1/27/25

..

145

151

991670133.UG.FTS.B,

28.98%,

1/27/25

..

202

208

991671149.UG.FTS.B,

28.98%,

1/27/25

..

105

110

991672421.UG.FTS.B,

28.98%,

1/27/25

..

333

336

991672456.UG.FTS.B,

28.98%,

1/27/25

..

196

191

991672656.UG.FTS.B,

28.98%,

1/27/25

..

121

125

991679811.UG.FTS.B,

28.98%,

1/27/25

..

95

99

991681733.UG.FTS.B,

28.98%,

1/27/25

..

217

226

991684060.UG.FTS.B,

28.98%,

1/27/25

..

1,006

1,017

991684799.UG.FTS.B,

28.98%,

1/27/25

..

159

164

991684873.UG.FTS.B,

28.98%,

1/27/25

..

97

99

991686238.UG.FTS.B,

28.98%,

1/27/25

..

36

36

991687681.UG.FTS.B,

28.98%,

1/27/25

..

126

129

991688929.UG.FTS.B,

28.98%,

1/27/25

..

24

24

991691453.UG.FTS.B,

28.98%,

1/27/25

..

558

575

991693260.UG.FTS.B,

28.98%,

1/27/25

..

196

198

991693305.UG.FTS.B,

28.98%,

1/27/25

..

1,133

1,166

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991693530.UG.FTS.B,

28.98%,

1/27/25

..

$

158

$

165

991697703.UG.FTS.B,

28.98%,

1/27/25

..

19

19

991699112.UG.FTS.B,

28.98%,

1/27/25

..

125

130

991699849.UG.FTS.B,

28.98%,

1/27/25

..

43

7

991699852.UG.FTS.B,

28.98%,

1/27/25

..

272

283

991703924.UG.FTS.B,

28.98%,

1/27/25

..

27

27

991707195.UG.FTS.B,

28.98%,

1/27/25

..

72

73

991711538.UG.FTS.B,

28.98%,

1/27/25

..

49

50

991714759.UG.FTS.B,

28.98%,

1/27/25

..

141

147

991716555.UG.FTS.B,

28.98%,

1/27/25

..

67

69

991719023.UG.FTS.B,

28.98%,

1/27/25

..

433

448

991721854.UG.FTS.B,

28.98%,

1/27/25

..

394

404

991722576.UG.FTS.B,

28.98%,

1/27/25

..

70

72

991725390.UG.FTS.B,

28.98%,

1/27/25

..

82

83

991728459.UG.FTS.B,

28.98%,

1/27/25

..

–

–

991730761.UG.FTS.B,

28.98%,

1/27/25

..

144

150

991731267.UG.FTS.B,

28.98%,

1/27/25

..

139

19

991732352.UG.FTS.B,

28.98%,

1/27/25

..

53

54

991732403.UG.FTS.B,

28.98%,

1/27/25

..

18

18

991732810.UG.FTS.B,

28.98%,

1/27/25

..

56

57

991733750.UG.FTS.B,

28.98%,

1/27/25

..

12

12

991740609.UG.FTS.B,

28.98%,

1/27/25

..

227

230

991741558.UG.FTS.B,

28.98%,

1/27/25

..

58

58

991746915.UG.FTS.B,

28.98%,

1/27/25

..

375

385

991747891.UG.FTS.B,

28.98%,

1/27/25

..

138

143

991749644.UG.FTS.B,

28.98%,

1/27/25

..

22

22

991751444.UG.FTS.B,

28.98%,

1/27/25

..

34

35

991753884.UG.FTS.B,

28.98%,

1/27/25

..

46

4

991757043.UG.FTS.B,

28.98%,

1/27/25

..

338

345

991761556.UG.FTS.B,

28.98%,

1/27/25

..

81

84

991770756.UG.FTS.B,

28.98%,

1/27/25

..

420

430

991771149.UG.FTS.B,

28.98%,

1/27/25

..

24

24

991772210.UG.FTS.B,

28.98%,

1/27/25

..

3,293

3,383

991772279.UG.FTS.B,

28.98%,

1/27/25

..

850

870

991772315.UG.FTS.B,

28.98%,

1/27/25

..

824

846

991776277.UG.FTS.B,

28.98%,

1/27/25

..

28

28

991785235.UG.FTS.B,

28.98%,

1/27/25

..

393

403

991790040.UG.FTS.B,

28.98%,

1/27/25

..

125

129

991792181.UG.FTS.B,

28.98%,

1/27/25

..

2,163

2,210

991792500.UG.FTS.B,

28.98%,

1/27/25

..

205

211

991796141.UG.FTS.B,

28.98%,

1/27/25

..

74

76

991797980.UG.FTS.B,

28.98%,

1/27/25

..

42

36

991798281.UG.FTS.B,

28.98%,

1/27/25

..

66

10

991802009.UG.FTS.B,

28.98%,

1/27/25

..

325

26

991811211.UG.FTS.B,

28.98%,

1/27/25

..

236

243

991812993.UG.FTS.B,

28.98%,

1/27/25

..

451

453

991814953.UG.FTS.B,

28.98%,

1/27/25

..

90

12

991820015.UG.FTS.B,

28.98%,

1/27/25

..

393

402

991822961.UG.FTS.B,

28.98%,

1/27/25

..

311

318

991831848.UG.FTS.B,

28.98%,

1/27/25

..

59

9

991832201.UG.FTS.B,

28.98%,

1/27/25

..

2,186

2,231

991832387.UG.FTS.B,

28.98%,

1/27/25

..

818

840

991835142.UG.FTS.B,

28.98%,

1/27/25

..

1,477

1,477

991662323.UG.FTS.B,

29.47%,

1/27/25

..

40

41

991593828.UG.FTS.B,

29.49%,

1/27/25

..

289

295

991594192.UG.FTS.B,

29.49%,

1/27/25

..

301

313

991594952.UG.FTS.B,

29.49%,

1/27/25

..

1,165

1,213

991596209.UG.FTS.B,

29.49%,

1/27/25

..

1,101

1,152

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

133

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991596228.UG.FTS.B,

29.49%,

1/27/25

..

$

214

$

222

991596267.UG.FTS.B,

29.49%,

1/27/25

..

50

8

991596346.UG.FTS.B,

29.49%,

1/27/25

..

49

50

991596886.UG.FTS.B,

29.49%,

1/27/25

..

184

188

991596983.UG.FTS.B,

29.49%,

1/27/25

..

120

125

991597441.UG.FTS.B,

29.49%,

1/27/25

..

403

417

991597657.UG.FTS.B,

29.49%,

1/27/25

..

141

145

991598580.UG.FTS.B,

29.49%,

1/27/25

..

136

142

991598640.UG.FTS.B,

29.49%,

1/27/25

..

63

5

991598870.UG.FTS.B,

29.49%,

1/27/25

..

47

1

991598931.UG.FTS.B,

29.49%,

1/27/25

..

206

28

991600353.UG.FTS.B,

29.49%,

1/27/25

..

231

233

991600440.UG.FTS.B,

29.49%,

1/27/25

..

497

518

991600674.UG.FTS.B,

29.49%,

1/27/25

..

100

104

991601393.UG.FTS.B,

29.49%,

1/27/25

..

2,194

2,288

991601553.UG.FTS.B,

29.49%,

1/27/25

..

989

1,007

991601649.UG.FTS.B,

29.49%,

1/27/25

..

482

(50)

991602782.UG.FTS.B,

29.49%,

1/27/25

..

78

80

991602892.UG.FTS.B,

29.49%,

1/27/25

..

74

76

991603339.UG.FTS.B,

29.49%,

1/27/25

..

138

143

991603573.UG.FTS.B,

29.49%,

1/27/25

..

836

12

991604512.UG.FTS.B,

29.49%,

1/27/25

..

146

152

991604744.UG.FTS.B,

29.49%,

1/27/25

..

71

73

991604802.UG.FTS.B,

29.49%,

1/27/25

..

73

75

991605074.UG.FTS.B,

29.49%,

1/27/25

..

186

186

991605178.UG.FTS.B,

29.49%,

1/27/25

..

305

317

991605218.UG.FTS.B,

29.49%,

1/27/25

..

33

34

991605251.UG.FTS.B,

29.49%,

1/27/25

..

55

56

991605906.UG.FTS.B,

29.49%,

1/27/25

..

292

290

991606053.UG.FTS.B,

29.49%,

1/27/25

..

25

4

991606270.UG.FTS.B,

29.49%,

1/27/25

..

734

764

991606487.UG.FTS.B,

29.49%,

1/27/25

..

443

460

991606996.UG.FTS.B,

29.49%,

1/27/25

..

71

73

991607077.UG.FTS.B,

29.49%,

1/27/25

..

1,088

82

991607258.UG.FTS.B,

29.49%,

1/27/25

..

380

396

991608429.UG.FTS.B,

29.49%,

1/27/25

..

186

193

991608526.UG.FTS.B,

29.49%,

1/27/25

..

332

347

991609046.UG.FTS.B,

29.49%,

1/27/25

..

256

265

991609085.UG.FTS.B,

29.49%,

1/27/25

..

84

87

991609299.UG.FTS.B,

29.49%,

1/27/25

..

1,716

1,790

991609655.UG.FTS.B,

29.49%,

1/27/25

..

255

264

991611049.UG.FTS.B,

29.49%,

1/27/25

..

253

264

991611862.UG.FTS.B,

29.49%,

1/27/25

..

165

172

991613226.UG.FTS.B,

29.49%,

1/27/25

..

283

276

991613342.UG.FTS.B,

29.49%,

1/27/25

..

204

28

991613792.UG.FTS.B,

29.49%,

1/27/25

..

10

10

991613806.UG.FTS.B,

29.49%,

1/27/25

..

3,169

3,243

991613940.UG.FTS.B,

29.49%,

1/27/25

..

94

98

991614453.UG.FTS.B,

29.49%,

1/27/25

..

417

420

991614526.UG.FTS.B,

29.49%,

1/27/25

..

–

–

991614668.UG.FTS.B,

29.49%,

1/27/25

..

100

14

991614695.UG.FTS.B,

29.49%,

1/27/25

..

66

(2)

991614714.UG.FTS.B,

29.49%,

1/27/25

..

56

56

991615077.UG.FTS.B,

29.49%,

1/27/25

..

54

9

991615133.UG.FTS.B,

29.49%,

1/27/25

..

26

26

991615454.UG.FTS.B,

29.49%,

1/27/25

..

261

273

991615614.UG.FTS.B,

29.49%,

1/27/25

..

25

26

991616666.UG.FTS.B,

29.49%,

1/27/25

..

10

10

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991616915.UG.FTS.B,

29.49%,

1/27/25

..

$

214

$

220

991617030.UG.FTS.B,

29.49%,

1/27/25

..

107

(3)

991617119.UG.FTS.B,

29.49%,

1/27/25

..

867

905

991617295.UG.FTS.B,

29.49%,

1/27/25

..

923

957

991618276.UG.FTS.B,

29.49%,

1/27/25

..

828

116

991619030.UG.FTS.B,

29.49%,

1/27/25

..

166

170

991619817.UG.FTS.B,

29.49%,

1/27/25

..

639

666

991620641.UG.FTS.B,

29.49%,

1/27/25

..

165

171

991621900.UG.FTS.B,

29.49%,

1/27/25

..

291

40

991624512.UG.FTS.B,

29.49%,

1/27/25

..

140

145

991624910.UG.FTS.B,

29.49%,

1/27/25

..

97

101

991626868.UG.FTS.B,

29.49%,

1/27/25

..

127

130

991627621.UG.FTS.B,

29.49%,

1/27/25

..

116

121

991628233.UG.FTS.B,

29.49%,

1/27/25

..

62

63

991628707.UG.FTS.B,

29.49%,

1/27/25

..

849

884

991629351.UG.FTS.B,

29.49%,

1/27/25

..

17

17

991630575.UG.FTS.B,

29.49%,

1/27/25

..

255

(6)

991630944.UG.FTS.B,

29.49%,

1/27/25

..

85

87

991633038.UG.FTS.B,

29.49%,

1/27/25

..

1,071

1,101

991633884.UG.FTS.B,

29.49%,

1/27/25

..

567

45

991635104.UG.FTS.B,

29.49%,

1/27/25

..

133

130

991636506.UG.FTS.B,

29.49%,

1/27/25

..

1,088

1,124

991637021.UG.FTS.B,

29.49%,

1/27/25

..

668

678

991637168.UG.FTS.B,

29.49%,

1/27/25

..

139

144

991637194.UG.FTS.B,

29.49%,

1/27/25

..

14

14

991637328.UG.FTS.B,

29.49%,

1/27/25

..

194

200

991639078.UG.FTS.B,

29.49%,

1/27/25

..

13

13

991639949.UG.FTS.B,

29.49%,

1/27/25

..

–

–

991643691.UG.FTS.B,

29.49%,

1/27/25

..

228

225

991643756.UG.FTS.B,

29.49%,

1/27/25

..

39

(1)

991643995.UG.FTS.B,

29.49%,

1/27/25

..

385

403

991645667.UG.FTS.B,

29.49%,

1/27/25

..

151

157

991646515.UG.FTS.B,

29.49%,

1/27/25

..

19

20

991647854.UG.FTS.B,

29.49%,

1/27/25

..

129

134

991648775.UG.FTS.B,

29.49%,

1/27/25

..

2,436

2,540

991648967.UG.FTS.B,

29.49%,

1/27/25

..

126

129

991649572.UG.FTS.B,

29.49%,

1/27/25

..

81

82

991650190.UG.FTS.B,

29.49%,

1/27/25

..

300

210

991651629.UG.FTS.B,

29.49%,

1/27/25

..

113

117

991653371.UG.FTS.B,

29.49%,

1/27/25

..

259

271

991654331.UG.FTS.B,

29.49%,

1/27/25

..

322

335

991658758.UG.FTS.B,

29.49%,

1/27/25

..

92

96

991659287.UG.FTS.B,

29.49%,

1/27/25

..

237

18

991659586.UG.FTS.B,

29.49%,

1/27/25

..

31

32

991660024.UG.FTS.B,

29.49%,

1/27/25

..

67

69

991667522.UG.FTS.B,

29.49%,

1/27/25

..

3

3

991668002.UG.FTS.B,

29.49%,

1/27/25

..

195

15

991668359.UG.FTS.B,

29.49%,

1/27/25

..

442

448

991669942.UG.FTS.B,

29.49%,

1/27/25

..

61

63

991670220.UG.FTS.B,

29.49%,

1/27/25

..

60

62

991670777.UG.FTS.B,

29.49%,

1/27/25

..

–

–

991670891.UG.FTS.B,

29.49%,

1/27/25

..

31

31

991672322.UG.FTS.B,

29.49%,

1/27/25

..

243

251

991678623.UG.FTS.B,

29.49%,

1/27/25

..

84

87

991680945.UG.FTS.B,

29.49%,

1/27/25

..

286

289

991682834.UG.FTS.B,

29.49%,

1/27/25

..

248

258

991683132.UG.FTS.B,

29.49%,

1/27/25

..

1,081

1,129

991683393.UG.FTS.B,

29.49%,

1/27/25

..

914

633

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

134

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991687025.UG.FTS.B,

29.49%,

1/27/25

..

$

15

$

15

991687934.UG.FTS.B,

29.49%,

1/27/25

..

10

10

991688414.UG.FTS.B,

29.49%,

1/27/25

..

24

24

991688605.UG.FTS.B,

29.49%,

1/27/25

..

166

15

991689965.UG.FTS.B,

29.49%,

1/27/25

..

213

222

991690240.UG.FTS.B,

29.49%,

1/27/25

..

32

32

991691306.UG.FTS.B,

29.49%,

1/27/25

..

185

191

991691664.UG.FTS.B,

29.49%,

1/27/25

..

1,252

1,299

991692639.UG.FTS.B,

29.49%,

1/27/25

..

19

19

991695052.UG.FTS.B,

29.49%,

1/27/25

..

79

82

991695728.UG.FTS.B,

29.49%,

1/27/25

..

596

620

991696481.UG.FTS.B,

29.49%,

1/27/25

..

517

539

991696793.UG.FTS.B,

29.49%,

1/27/25

..

172

172

991698282.UG.FTS.B,

29.49%,

1/27/25

..

57

59

991698507.UG.FTS.B,

29.49%,

1/27/25

..

116

119

991701480.UG.FTS.B,

29.49%,

1/27/25

..

597

622

991702188.UG.FTS.B,

29.49%,

1/27/25

..

130

135

991703342.UG.FTS.B,

29.49%,

1/27/25

..

167

173

991705606.UG.FTS.B,

29.49%,

1/27/25

..

44

44

991705617.UG.FTS.B,

29.49%,

1/27/25

..

277

278

991709075.UG.FTS.B,

29.49%,

1/27/25

..

336

341

991709652.UG.FTS.B,

29.49%,

1/27/25

..

206

213

991710104.UG.FTS.B,

29.49%,

1/27/25

..

66

68

991710576.UG.FTS.B,

29.49%,

1/27/25

..

181

183

991712616.UG.FTS.B,

29.49%,

1/27/25

..

1,004

1,047

991715908.UG.FTS.B,

29.49%,

1/27/25

..

467

486

991716296.UG.FTS.B,

29.49%,

1/27/25

..

215

215

991717015.UG.FTS.B,

29.49%,

1/27/25

..

124

129

991717864.UG.FTS.B,

29.49%,

1/27/25

..

248

259

991717964.UG.FTS.B,

29.49%,

1/27/25

..

86

88

991718575.UG.FTS.B,

29.49%,

1/27/25

..

149

155

991718785.UG.FTS.B,

29.49%,

1/27/25

..

248

259

991720299.UG.FTS.B,

29.49%,

1/27/25

..

766

791

991726868.UG.FTS.B,

29.49%,

1/27/25

..

593

606

991727056.UG.FTS.B,

29.49%,

1/27/25

..

936

131

991728566.UG.FTS.B,

29.49%,

1/27/25

..

211

220

991729561.UG.FTS.B,

29.49%,

1/27/25

..

223

228

991729760.UG.FTS.B,

29.49%,

1/27/25

..

17

17

991730240.UG.FTS.B,

29.49%,

1/27/25

..

253

257

991731570.UG.FTS.B,

29.49%,

1/27/25

..

81

83

991731887.UG.FTS.B,

29.49%,

1/27/25

..

12

12

991732661.UG.FTS.B,

29.49%,

1/27/25

..

99

103

991737584.UG.FTS.B,

29.49%,

1/27/25

..

105

109

991740591.UG.FTS.B,

29.49%,

1/27/25

..

836

869

991742966.UG.FTS.B,

29.49%,

1/27/25

..

416

416

991743785.UG.FTS.B,

29.49%,

1/27/25

..

136

141

991747094.UG.FTS.B,

29.49%,

1/27/25

..

21

22

991747252.UG.FTS.B,

29.49%,

1/27/25

..

249

256

991749269.UG.FTS.B,

29.49%,

1/27/25

..

313

326

991749414.UG.FTS.B,

29.49%,

1/27/25

..

164

23

991749510.UG.FTS.B,

29.49%,

1/27/25

..

245

252

991750553.UG.FTS.B,

29.49%,

1/27/25

..

91

91

991752239.UG.FTS.B,

29.49%,

1/27/25

..

395

412

991752832.UG.FTS.B,

29.49%,

1/27/25

..

200

14

991753656.UG.FTS.B,

29.49%,

1/27/25

..

35

35

991754719.UG.FTS.B,

29.49%,

1/27/25

..

209

216

991754815.UG.FTS.B,

29.49%,

1/27/25

..

84

87

991756435.UG.FTS.B,

29.49%,

1/27/25

..

435

455

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991759684.UG.FTS.B,

29.49%,

1/27/25

..

$

1,214

$

1,247

991770465.UG.FTS.B,

29.49%,

1/27/25

..

103

108

991774020.UG.FTS.B,

29.49%,

1/27/25

..

412

423

991775557.UG.FTS.B,

29.49%,

1/27/25

..

527

535

991777410.UG.FTS.B,

29.49%,

1/27/25

..

55

45

991780499.UG.FTS.B,

29.49%,

1/27/25

..

405

416

991781410.UG.FTS.B,

29.49%,

1/27/25

..

107

109

991782255.UG.FTS.B,

29.49%,

1/27/25

..

35

35

991783368.UG.FTS.B,

29.49%,

1/27/25

..

21

22

991783887.UG.FTS.B,

29.49%,

1/27/25

..

158

161

991784000.UG.FTS.B,

29.49%,

1/27/25

..

189

195

991788344.UG.FTS.B,

29.49%,

1/27/25

..

83

21

991792296.UG.FTS.B,

29.49%,

1/27/25

..

820

842

991793218.UG.FTS.B,

29.49%,

1/27/25

..

76

76

991793271.UG.FTS.B,

29.49%,

1/27/25

..

247

253

991793324.UG.FTS.B,

29.49%,

1/27/25

..

160

164

991793360.UG.FTS.B,

29.49%,

1/27/25

..

421

433

991798454.UG.FTS.B,

29.49%,

1/27/25

..

43

43

991800672.UG.FTS.B,

29.49%,

1/27/25

..

118

121

991802443.UG.FTS.B,

29.49%,

1/27/25

..

328

336

991803603.UG.FTS.B,

29.49%,

1/27/25

..

728

731

991804585.UG.FTS.B,

29.49%,

1/27/25

..

70

(4)

991807085.UG.FTS.B,

29.49%,

1/27/25

..

54

55

991812381.UG.FTS.B,

29.49%,

1/27/25

..

135

138

991814263.UG.FTS.B,

29.49%,

1/27/25

..

9

9

991814678.UG.FTS.B,

29.49%,

1/27/25

..

114

117

991828600.UG.FTS.B,

29.49%,

1/27/25

..

96

98

991829288.UG.FTS.B,

29.49%,

1/27/25

..

–

–

991832224.UG.FTS.B,

29.49%,

1/27/25

..

64

66

991833226.UG.FTS.B,

29.49%,

1/27/25

..

2,460

2,525

991836282.UG.FTS.B,

29.49%,

1/27/25

..

4,260

4,312

991605066.UG.FTS.B,

Zero

Cpn,

1/28/25

.

875

61

991689747.UG.FTS.B,

14%,

1/28/25

.....

406

404

991603028.UG.FTS.B,

15%,

1/28/25

.....

252

252

991606397.UG.FTS.B,

15.97%,

1/28/25

..

499

510

991606845.UG.FTS.B,

15.97%,

1/28/25

..

74

74

991619717.UG.FTS.B,

15.97%,

1/28/25

..

312

319

991800530.UG.FTS.B,

15.97%,

1/28/25

..

605

615

991838313.UG.FTS.B,

15.97%,

1/28/25

..

1,504

1,530

991610101.UG.FTS.B,

16.99%,

1/28/25

..

1,766

1,809

991617374.UG.FTS.B,

16.99%,

1/28/25

..

2,808

2,870

991638172.UG.FTS.B,

16.99%,

1/28/25

..

219

17

991748718.UG.FTS.B,

16.99%,

1/28/25

..

1,733

134

991799999.UG.FTS.B,

16.99%,

1/28/25

..

100

102

991854471.UG.FTS.B,

16.99%,

1/28/25

..

6,716

6,825

991613370.UG.FTS.B,

17.99%,

1/28/25

..

283

289

991621866.UG.FTS.B,

17.99%,

1/28/25

..

130

132

991661885.UG.FTS.B,

17.99%,

1/28/25

..

11

11

991716911.UG.FTS.B,

17.99%,

1/28/25

..

439

446

991720766.UG.FTS.B,

17.99%,

1/28/25

..

800

818

991727531.UG.FTS.B,

17.99%,

1/28/25

..

149

151

991809155.UG.FTS.B,

17.99%,

1/28/25

..

810

822

991843689.UG.FTS.B,

17.99%,

1/28/25

..

5,563

5,649

991692051.UG.FTS.B,

20.46%,

1/28/25

..

424

429

991653436.UG.FTS.B,

20.97%,

1/28/25

..

614

617

991622578.UG.FTS.B,

22.97%,

1/28/25

..

195

193

991613877.UG.FTS.B,

Zero

Cpn,

1/29/25

.

608

42

991614133.UG.FTS.B,

14.98%,

1/29/25

..

627

635

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

135

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991621915.UG.FTS.B,

14.98%,

1/29/25

..

$

341

$

347

991647560.UG.FTS.B,

14.98%,

1/29/25

..

1,393

1,424

991671798.UG.FTS.B,

14.98%,

1/29/25

..

156

159

991864236.UG.FTS.B,

14.98%,

1/29/25

..

7,868

7,994

991669610.UG.FTS.B,

15.97%,

1/29/25

..

506

517

991716164.UG.FTS.B,

15.97%,

1/29/25

..

417

427

991717732.UG.FTS.B,

15.97%,

1/29/25

..

150

2

991733949.UG.FTS.B,

15.97%,

1/29/25

..

194

121

991811428.UG.FTS.B,

15.97%,

1/29/25

..

259

163

991670873.UG.FTS.B,

16.99%,

1/29/25

..

220

225

991748418.UG.FTS.B,

16.99%,

1/29/25

..

2,495

2,526

991632718.UG.FTS.B,

17.99%,

1/29/25

..

105

107

991669723.UG.FTS.B,

17.99%,

1/29/25

..

217

222

991688664.UG.FTS.B,

17.99%,

1/29/25

..

464

474

991842042.UG.FTS.B,

17.99%,

1/29/25

..

1,780

1,802

991619308.UG.FTS.B,

18.97%,

1/29/25

..

1,672

1,708

991654581.UG.FTS.B,

18.97%,

1/29/25

..

331

337

991667776.UG.FTS.B,

18.97%,

1/29/25

..

1,450

1,481

991623640.UG.FTS.B,

19.21%,

1/29/25

..

482

492

991628531.UG.FTS.B,

19.21%,

1/29/25

..

72

73

991667796.UG.FTS.B,

19.21%,

1/29/25

..

313

317

991612495.UG.FTS.B,

19.8%,

1/29/25

...

358

365

991629575.UG.FTS.B,

20.46%,

1/29/25

..

531

542

991682711.UG.FTS.B,

20.97%,

1/29/25

..

1,083

(3)

991612595.UG.FTS.B,

21.98%,

1/29/25

..

1,200

103

991631756.UG.FTS.B,

21.98%,

1/29/25

..

47

48

991666414.UG.FTS.B,

14.98%,

1/30/25

..

1,585

1,621

991681003.UG.FTS.B,

14.98%,

1/30/25

..

720

736

991748200.UG.FTS.B,

14.98%,

1/30/25

..

153

157

991633765.UG.FTS.B,

15%,

1/30/25

.....

1,111

1,136

991686296.UG.FTS.B,

15%,

1/30/25

.....

13

13

991871721.UG.FTS.B,

16.99%,

1/30/25

..

189

192

991624393.UG.FTS.B,

17.99%,

1/30/25

..

369

375

991710060.UG.FTS.B,

17.99%,

1/30/25

..

188

192

991775041.UG.FTS.B,

17.99%,

1/30/25

..

1,295

1,321

991783304.UG.FTS.B,

17.99%,

1/30/25

..

798

816

991788920.UG.FTS.B,

17.99%,

1/30/25

..

314

321

991627597.UG.FTS.B,

18.97%,

1/30/25

..

288

215

991673375.UG.FTS.B,

18.97%,

1/30/25

..

161

165

991651806.UG.FTS.B,

19.8%,

1/30/25

...

167

169

991685892.UG.FTS.B,

20.46%,

1/30/25

..

264

265

991659919.UG.FTS.B,

20.97%,

1/30/25

..

129

132

991706022.UG.FTS.B,

20.97%,

1/30/25

..

120

119

991619303.UG.FTS.B,

21.46%,

1/30/25

..

157

159

991625186.UG.FTS.B,

21.98%,

1/30/25

..

160

160

991666898.UG.FTS.B,

21.98%,

1/30/25

..

65

66

991620571.UG.FTS.B,

22.97%,

1/30/25

..

326

325

991667507.UG.FTS.B,

Zero

Cpn,

1/31/25

.

242

17

991706638.UG.FTS.B,

Zero

Cpn,

1/31/25

.

209

15

991684639.UG.FTS.B,

14.97%,

1/31/25

..

261

267

991832705.UG.FTS.B,

14.97%,

1/31/25

..

244

249

991685973.UG.FTS.B,

14.98%,

1/31/25

..

1,246

1,258

991718191.UG.FTS.B,

14.98%,

1/31/25

..

409

419

991726744.UG.FTS.B,

14.98%,

1/31/25

..

286

290

991831913.UG.FTS.B,

14.98%,

1/31/25

..

78

79

991851449.UG.FTS.B,

14.98%,

1/31/25

..

62

63

991646701.UG.FTS.B,

15%,

1/31/25

.....

657

668

991659852.UG.FTS.B,

15%,

1/31/25

.....

830

841

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991692599.UG.FTS.B,

15%,

1/31/25

.....

$

1,592

$

1,596

991805365.UG.FTS.B,

15%,

1/31/25

.....

301

303

991853717.UG.FTS.B,

15%,

1/31/25

.....

1,183

1,203

991863517.UG.FTS.B,

15%,

1/31/25

.....

297

298

991870576.UG.FTS.B,

15%,

1/31/25

.....

12

12

991638888.UG.FTS.B,

15.97%,

1/31/25

..

116

119

991649795.UG.FTS.B,

15.97%,

1/31/25

..

1

1

991653361.UG.FTS.B,

15.97%,

1/31/25

..

86

86

991666372.UG.FTS.B,

15.97%,

1/31/25

..

8,236

8,437

991746713.UG.FTS.B,

15.97%,

1/31/25

..

219

222

991754483.UG.FTS.B,

15.97%,

1/31/25

..

234

235

991755429.UG.FTS.B,

15.97%,

1/31/25

..

19

19

991757099.UG.FTS.B,

15.97%,

1/31/25

..

119

122

991809317.UG.FTS.B,

15.97%,

1/31/25

..

1,663

1,680

991815664.UG.FTS.B,

15.97%,

1/31/25

..

524

534

991852833.UG.FTS.B,

15.97%,

1/31/25

..

–

–

991711633.UG.FTS.B,

15.99%,

1/31/25

..

28

28

991740681.UG.FTS.B,

15.99%,

1/31/25

..

511

513

991638718.UG.FTS.B,

16.99%,

1/31/25

..

279

282

991642283.UG.FTS.B,

16.99%,

1/31/25

..

179

183

991662857.UG.FTS.B,

16.99%,

1/31/25

..

615

616

991704534.UG.FTS.B,

16.99%,

1/31/25

..

966

987

991753549.UG.FTS.B,

16.99%,

1/31/25

..

242

248

991757606.UG.FTS.B,

16.99%,

1/31/25

..

399

409

991762445.UG.FTS.B,

16.99%,

1/31/25

..

54

55

991814268.UG.FTS.B,

16.99%,

1/31/25

..

9

9

991836242.UG.FTS.B,

16.99%,

1/31/25

..

3,969

4,035

991856848.UG.FTS.B,

16.99%,

1/31/25

..

174

177

991675482.UG.FTS.B,

17.97%,

1/31/25

..

479

486

991636165.UG.FTS.B,

17.99%,

1/31/25

..

538

551

991640620.UG.FTS.B,

17.99%,

1/31/25

..

628

642

991642242.UG.FTS.B,

17.99%,

1/31/25

..

163

166

991646047.UG.FTS.B,

17.99%,

1/31/25

..

1,229

1,256

991649852.UG.FTS.B,

17.99%,

1/31/25

..

157

160

991659616.UG.FTS.B,

17.99%,

1/31/25

..

190

190

991664214.UG.FTS.B,

17.99%,

1/31/25

..

144

145

991682270.UG.FTS.B,

17.99%,

1/31/25

..

232

237

991696738.UG.FTS.B,

17.99%,

1/31/25

..

123

126

991698361.UG.FTS.B,

17.99%,

1/31/25

..

128

131

991709244.UG.FTS.B,

17.99%,

1/31/25

..

120

123

991711488.UG.FTS.B,

17.99%,

1/31/25

..

–

–

991712841.UG.FTS.B,

17.99%,

1/31/25

..

495

504

991713828.UG.FTS.B,

17.99%,

1/31/25

..

5,010

5,122

991743801.UG.FTS.B,

17.99%,

1/31/25

..

700

716

991748611.UG.FTS.B,

17.99%,

1/31/25

..

397

405

991754758.UG.FTS.B,

17.99%,

1/31/25

..

1,119

1,144

991759257.UG.FTS.B,

17.99%,

1/31/25

..

124

127

991772768.UG.FTS.B,

17.99%,

1/31/25

..

118

121

991822192.UG.FTS.B,

17.99%,

1/31/25

..

1,147

1,166

991635799.UG.FTS.B,

18.97%,

1/31/25

..

931

952

991641148.UG.FTS.B,

18.97%,

1/31/25

..

43

9

991646069.UG.FTS.B,

18.97%,

1/31/25

..

237

242

991693691.UG.FTS.B,

18.97%,

1/31/25

..

482

488

991702370.UG.FTS.B,

18.97%,

1/31/25

..

161

164

991704685.UG.FTS.B,

18.97%,

1/31/25

..

15

15

991705454.UG.FTS.B,

18.97%,

1/31/25

..

69

69

991639577.UG.FTS.B,

19.21%,

1/31/25

..

252

257

991642378.UG.FTS.B,

19.21%,

1/31/25

..

27

27

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

136

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991654842.UG.FTS.B,

19.21%,

1/31/25

..

$

221

$

226

991660673.UG.FTS.B,

19.21%,

1/31/25

..

1,019

1,041

991684344.UG.FTS.B,

19.21%,

1/31/25

..

346

353

991696599.UG.FTS.B,

19.21%,

1/31/25

..

171

174

991663410.UG.FTS.B,

19.8%,

1/31/25

...

3,151

3,167

991666877.UG.FTS.B,

19.8%,

1/31/25

...

87

11

991708296.UG.FTS.B,

19.8%,

1/31/25

...

316

323

991648537.UG.FTS.B,

20.97%,

1/31/25

..

188

192

991653526.UG.FTS.B,

20.97%,

1/31/25

..

371

378

991653644.UG.FTS.B,

20.97%,

1/31/25

..

–

–

991661887.UG.FTS.B,

20.97%,

1/31/25

..

213

217

991683502.UG.FTS.B,

20.97%,

1/31/25

..

453

462

991630777.UG.FTS.B,

21.46%,

1/31/25

..

429

435

991656715.UG.FTS.B,

21.46%,

1/31/25

..

2,515

2,564

991693835.UG.FTS.B,

21.46%,

1/31/25

..

752

766

991672382.UG.FTS.B,

21.97%,

1/31/25

..

5,979

6,036

991704918.UG.FTS.B,

21.98%,

1/31/25

..

339

45

991648500.UG.FTS.B,

23.95%,

1/31/25

..

499

498

991661661.UG.FTS.B,

23.95%,

1/31/25

..

237

241

991799359.UG.FTS.B,

14%,

2/01/25

.....

47

47

991883831.UG.FTS.B,

14%,

2/01/25

.....

209

208

991745640.UG.FTS.B,

14.97%,

2/01/25

..

468

475

991833353.UG.FTS.B,

14.98%,

2/01/25

..

624

633

991836618.UG.FTS.B,

15%,

2/01/25

.....

1,045

1,060

991680366.UG.FTS.B,

15.97%,

2/01/25

..

3,454

3,511

991656115.UG.FTS.B,

15.99%,

2/01/25

..

824

838

991666265.UG.FTS.B,

16.99%,

2/01/25

..

599

606

991722252.UG.FTS.B,

16.99%,

2/01/25

..

650

660

991668427.UG.FTS.B,

17.97%,

2/01/25

..

250

249

991761791.UG.FTS.B,

17.99%,

2/01/25

..

852

865

991657231.UG.FTS.B,

13.97%,

2/02/25

..

4,956

5,038

991655483.UG.FTS.B,

14%,

2/02/25

.....

9,788

9,935

991693291.UG.FTS.B,

14%,

2/02/25

.....

196

199

991724492.UG.FTS.B,

14%,

2/02/25

.....

112

114

991725692.UG.FTS.B,

14%,

2/02/25

.....

263

266

991771266.UG.FTS.B,

14%,

2/02/25

.....

177

180

991834440.UG.FTS.B,

14%,

2/02/25

.....

277

281

991651238.UG.FTS.B,

14.97%,

2/02/25

..

3

3

991687949.UG.FTS.B,

14.98%,

2/02/25

..

289

293

991658184.UG.FTS.B,

15%,

2/02/25

.....

3,863

3,925

991681442.UG.FTS.B,

15%,

2/02/25

.....

63

63

991670102.UG.FTS.B,

15.97%,

2/02/25

..

636

647

991670480.UG.FTS.B,

15.97%,

2/02/25

..

46

47

991712581.UG.FTS.B,

15.97%,

2/02/25

..

103

105

991760625.UG.FTS.B,

15.97%,

2/02/25

..

323

329

991763118.UG.FTS.B,

15.97%,

2/02/25

..

708

719

991783832.UG.FTS.B,

15.97%,

2/02/25

..

255

48

991848002.UG.FTS.B,

15.97%,

2/02/25

..

85

86

991884423.UG.FTS.B,

15.97%,

2/02/25

..

–

–

991655255.UG.FTS.B,

15.99%,

2/02/25

..

5,772

5,866

991849575.UG.FTS.B,

15.99%,

2/02/25

..

78

79

991650925.UG.FTS.B,

16.99%,

2/02/25

..

323

324

991666008.UG.FTS.B,

16.99%,

2/02/25

..

544

553

991676165.UG.FTS.B,

16.99%,

2/02/25

..

267

271

991679270.UG.FTS.B,

16.99%,

2/02/25

..

312

317

991689542.UG.FTS.B,

16.99%,

2/02/25

..

604

614

991781369.UG.FTS.B,

16.99%,

2/02/25

..

771

782

991793383.UG.FTS.B,

16.99%,

2/02/25

..

103

103

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991803768.UG.FTS.B,

16.99%,

2/02/25

..

$

365

$

368

991844255.UG.FTS.B,

16.99%,

2/02/25

..

43

42

991867793.UG.FTS.B,

16.99%,

2/02/25

..

25

25

991868233.UG.FTS.B,

16.99%,

2/02/25

..

3,161

3,191

991871017.UG.FTS.B,

16.99%,

2/02/25

..

1,307

1,320

991667408.UG.FTS.B,

17.97%,

2/02/25

..

166

169

991682242.UG.FTS.B,

17.97%,

2/02/25

..

371

377

991689544.UG.FTS.B,

17.97%,

2/02/25

..

139

141

991657130.UG.FTS.B,

17.99%,

2/02/25

..

88

88

991671206.UG.FTS.B,

17.99%,

2/02/25

..

787

190

991683457.UG.FTS.B,

17.99%,

2/02/25

..

20

20

991731323.UG.FTS.B,

17.99%,

2/02/25

..

341

346

991788137.UG.FTS.B,

17.99%,

2/02/25

..

340

345

991880297.UG.FTS.B,

17.99%,

2/02/25

..

404

407

991878726.UG.FTS.B,

14.98%,

2/03/25

..

554

559

991676136.UG.FTS.B,

16.99%,

2/03/25

..

50

50

991886549.UG.FTS.B,

16.99%,

2/03/25

..

81

82

991907914.UG.FTS.B,

17.99%,

2/03/25

..

164

165

991861030.UG.FTS.B,

19.21%,

2/03/25

..

20

20

991689885.UG.FTS.B,

19.99%,

2/03/25

..

700

722

991696135.UG.FTS.B,

19.99%,

2/03/25

..

28

28

991714434.UG.FTS.B,

19.99%,

2/03/25

..

420

432

991747696.UG.FTS.B,

19.99%,

2/03/25

..

447

320

991826636.UG.FTS.B,

19.99%,

2/03/25

..

706

712

991859515.UG.FTS.B,

19.99%,

2/03/25

..

285

289

991913936.UG.FTS.B,

21.46%,

2/03/25

..

46

45

991914992.UG.FTS.B,

21.97%,

2/03/25

..

67

67

991702146.UG.FTS.B,

21.98%,

2/03/25

..

316

316

991885990.UG.FTS.B,

21.98%,

2/03/25

..

147

97

991705607.UG.FTS.B,

23.95%,

2/03/25

..

417

411

991684537.UG.FTS.B,

27.99%,

2/03/25

..

175

180

991709780.UG.FTS.B,

27.99%,

2/03/25

..

223

230

991744807.UG.FTS.B,

27.99%,

2/03/25

..

213

220

991680701.UG.FTS.B,

28.98%,

2/03/25

..

275

266

991686623.UG.FTS.B,

28.98%,

2/03/25

..

2,848

2,938

991688155.UG.FTS.B,

28.98%,

2/03/25

..

402

414

991694975.UG.FTS.B,

28.98%,

2/03/25

..

1,897

1,953

991699673.UG.FTS.B,

28.98%,

2/03/25

..

215

219

991700745.UG.FTS.B,

28.98%,

2/03/25

..

4,376

4,435

991704352.UG.FTS.B,

28.98%,

2/03/25

..

410

423

991708472.UG.FTS.B,

28.98%,

2/03/25

..

84

86

991712501.UG.FTS.B,

28.98%,

2/03/25

..

156

161

991713626.UG.FTS.B,

28.98%,

2/03/25

..

213

219

991715244.UG.FTS.B,

28.98%,

2/03/25

..

189

23

991716236.UG.FTS.B,

28.98%,

2/03/25

..

126

130

991716314.UG.FTS.B,

28.98%,

2/03/25

..

215

212

991717783.UG.FTS.B,

28.98%,

2/03/25

..

45

45

991720594.UG.FTS.B,

28.98%,

2/03/25

..

478

488

991726591.UG.FTS.B,

28.98%,

2/03/25

..

223

226

991743871.UG.FTS.B,

28.98%,

2/03/25

..

280

287

991771151.UG.FTS.B,

28.98%,

2/03/25

..

555

564

991777700.UG.FTS.B,

28.98%,

2/03/25

..

898

912

991813632.UG.FTS.B,

28.98%,

2/03/25

..

–

–

991827774.UG.FTS.B,

28.98%,

2/03/25

..

62

63

991882827.UG.FTS.B,

28.98%,

2/03/25

..

197

200

991910619.UG.FTS.B,

28.98%,

2/03/25

..

482

489

991911258.UG.FTS.B,

28.98%,

2/03/25

..

104

105

991911288.UG.FTS.B,

28.98%,

2/03/25

..

83

85

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

137

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991911379.UG.FTS.B,

28.98%,

2/03/25

..

$

23

$

23

991915303.UG.FTS.B,

28.98%,

2/03/25

..

32

32

991916599.UG.FTS.B,

28.98%,

2/03/25

..

102

104

991675854.UG.FTS.B,

29.49%,

2/03/25

..

253

257

991676586.UG.FTS.B,

29.49%,

2/03/25

..

203

205

991678160.UG.FTS.B,

29.49%,

2/03/25

..

35

31

991678637.UG.FTS.B,

29.49%,

2/03/25

..

191

197

991679875.UG.FTS.B,

29.49%,

2/03/25

..

142

9

991689327.UG.FTS.B,

29.49%,

2/03/25

..

665

685

991703345.UG.FTS.B,

29.49%,

2/03/25

..

400

412

991711847.UG.FTS.B,

29.49%,

2/03/25

..

94

93

991712984.UG.FTS.B,

29.49%,

2/03/25

..

28

2

991722488.UG.FTS.B,

29.49%,

2/03/25

..

209

215

991742223.UG.FTS.B,

29.49%,

2/03/25

..

8

8

991747483.UG.FTS.B,

29.49%,

2/03/25

..

448

441

991756506.UG.FTS.B,

29.49%,

2/03/25

..

157

162

991763055.UG.FTS.B,

29.49%,

2/03/25

..

182

22

991769654.UG.FTS.B,

29.49%,

2/03/25

..

73

4

991770245.UG.FTS.B,

29.49%,

2/03/25

..

463

478

991795655.UG.FTS.B,

29.49%,

2/03/25

..

39

39

991803788.UG.FTS.B,

29.49%,

2/03/25

..

29

29

991805657.UG.FTS.B,

29.49%,

2/03/25

..

472

478

991821197.UG.FTS.B,

29.49%,

2/03/25

..

–

–

991852488.UG.FTS.B,

29.49%,

2/03/25

..

151

152

991864584.UG.FTS.B,

29.49%,

2/03/25

..

132

92

991883418.UG.FTS.B,

29.49%,

2/03/25

..

157

33

991891229.UG.FTS.B,

29.49%,

2/03/25

..

21

3

991902227.UG.FTS.B,

29.49%,

2/03/25

..

381

260

991909211.UG.FTS.B,

29.49%,

2/03/25

..

31

5

991909621.UG.FTS.B,

29.49%,

2/03/25

..

7

7

991912447.UG.FTS.B,

29.49%,

2/03/25

..

395

391

991912585.UG.FTS.B,

29.49%,

2/03/25

..

41

41

991916903.UG.FTS.B,

29.49%,

2/03/25

..

231

232

991917239.UG.FTS.B,

29.49%,

2/03/25

..

267

271

991917590.UG.FTS.B,

29.49%,

2/03/25

..

48

48

991754102.UG.FTS.B,

Zero

Cpn,

2/04/25

.

43

3

991781478.UG.FTS.B,

Zero

Cpn,

2/04/25

.

278

19

991784708.UG.FTS.B,

Zero

Cpn,

2/04/25

.

206

14

991878459.UG.FTS.B,

Zero

Cpn,

2/04/25

.

176

12

991889761.UG.FTS.B,

Zero

Cpn,

2/04/25

.

99

7

991914147.UG.FTS.B,

Zero

Cpn,

2/04/25

.

229

16

991694525.UG.FTS.B,

14.98%,

2/04/25

..

800

814

991775705.UG.FTS.B,

14.98%,

2/04/25

..

183

186

991871765.UG.FTS.B,

14.98%,

2/04/25

..

285

290

991692937.UG.FTS.B,

15%,

2/04/25

.....

114

115

991717885.UG.FTS.B,

15.97%,

2/04/25

..

1,111

1,130

991772223.UG.FTS.B,

15.97%,

2/04/25

..

1,230

1,252

991809306.UG.FTS.B,

15.97%,

2/04/25

..

283

288

991700340.UG.FTS.B,

16.99%,

2/04/25

..

270

273

991741062.UG.FTS.B,

16.99%,

2/04/25

..

307

308

991803848.UG.FTS.B,

16.99%,

2/04/25

..

575

585

991809198.UG.FTS.B,

16.99%,

2/04/25

..

529

538

991816473.UG.FTS.B,

16.99%,

2/04/25

..

1,091

1,088

991834171.UG.FTS.B,

16.99%,

2/04/25

..

8,196

8,336

991800894.UG.FTS.B,

17.97%,

2/04/25

..

824

91

991761530.UG.FTS.B,

17.99%,

2/04/25

..

401

408

991752793.UG.FTS.B,

18.97%,

2/04/25

..

447

447

991729245.UG.FTS.B,

19.8%,

2/04/25

...

134

136

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991685630.UG.FTS.B,

19.99%,

2/04/25

..

$

444

$

452

991732723.UG.FTS.B,

19.99%,

2/04/25

..

990

70

991744504.UG.FTS.B,

19.99%,

2/04/25

..

157

159

991889300.UG.FTS.B,

19.99%,

2/04/25

..

159

160

991913677.UG.FTS.B,

19.99%,

2/04/25

..

184

187

991919104.UG.FTS.B,

19.99%,

2/04/25

..

362

365

991703863.UG.FTS.B,

20.46%,

2/04/25

..

377

375

991915319.UG.FTS.B,

20.46%,

2/04/25

..

175

175

991697789.UG.FTS.B,

20.97%,

2/04/25

..

820

829

991687138.UG.FTS.B,

21.46%,

2/04/25

..

12

12

991925637.UG.FTS.B,

21.46%,

2/04/25

..

46

46

991712275.UG.FTS.B,

22.97%,

2/04/25

..

446

444

991918054.UG.FTS.B,

22.97%,

2/04/25

..

1,659

1,656

991695448.UG.FTS.B,

25.95%,

2/04/25

..

296

196

991724012.UG.FTS.B,

27.99%,

2/04/25

..

221

227

991911625.UG.FTS.B,

27.99%,

2/04/25

..

1,493

316

991689281.UG.FTS.B,

28.98%,

2/04/25

..

4

4

991696574.UG.FTS.B,

28.98%,

2/04/25

..

147

151

991697057.UG.FTS.B,

28.98%,

2/04/25

..

178

176

991700907.UG.FTS.B,

28.98%,

2/04/25

..

210

216

991704302.UG.FTS.B,

28.98%,

2/04/25

..

189

(20)

991713631.UG.FTS.B,

28.98%,

2/04/25

..

120

(6)

991714612.UG.FTS.B,

28.98%,

2/04/25

..

–

–

991714817.UG.FTS.B,

28.98%,

2/04/25

..

152

156

991714934.UG.FTS.B,

28.98%,

2/04/25

..

261

256

991735164.UG.FTS.B,

28.98%,

2/04/25

..

1,429

85

991736129.UG.FTS.B,

28.98%,

2/04/25

..

112

25

991738402.UG.FTS.B,

28.98%,

2/04/25

..

89

66

991738710.UG.FTS.B,

28.98%,

2/04/25

..

221

228

991765630.UG.FTS.B,

28.98%,

2/04/25

..

68

69

991777966.UG.FTS.B,

28.98%,

2/04/25

..

59

(2)

991786787.UG.FTS.B,

28.98%,

2/04/25

..

170

172

991805373.UG.FTS.B,

28.98%,

2/04/25

..

127

129

991808487.UG.FTS.B,

28.98%,

2/04/25

..

99

98

991812064.UG.FTS.B,

28.98%,

2/04/25

..

9

9

991824710.UG.FTS.B,

28.98%,

2/04/25

..

729

740

991836806.UG.FTS.B,

28.98%,

2/04/25

..

124

126

991867830.UG.FTS.B,

28.98%,

2/04/25

..

40

40

991876641.UG.FTS.B,

28.98%,

2/04/25

..

59

58

991900572.UG.FTS.B,

28.98%,

2/04/25

..

110

111

991911859.UG.FTS.B,

28.98%,

2/04/25

..

108

110

991916161.UG.FTS.B,

28.98%,

2/04/25

..

7

7

991922928.UG.FTS.B,

28.98%,

2/04/25

..

202

205

991926669.UG.FTS.B,

28.98%,

2/04/25

..

77

78

991684601.UG.FTS.B,

29.49%,

2/04/25

..

30

30

991685240.UG.FTS.B,

29.49%,

2/04/25

..

1,477

90

991685368.UG.FTS.B,

29.49%,

2/04/25

..

248

(12)

991686694.UG.FTS.B,

29.49%,

2/04/25

..

189

193

991686783.UG.FTS.B,

29.49%,

2/04/25

..

93

96

991686979.UG.FTS.B,

29.49%,

2/04/25

..

695

714

991687371.UG.FTS.B,

29.49%,

2/04/25

..

133

132

991687443.UG.FTS.B,

29.49%,

2/04/25

..

27

27

991693725.UG.FTS.B,

29.49%,

2/04/25

..

380

391

991694653.UG.FTS.B,

29.49%,

2/04/25

..

545

555

991700247.UG.FTS.B,

29.49%,

2/04/25

..

226

229

991700295.UG.FTS.B,

29.49%,

2/04/25

..

459

473

991700897.UG.FTS.B,

29.49%,

2/04/25

..

50

50

991707526.UG.FTS.B,

29.49%,

2/04/25

..

639

615

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

138

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991708261.UG.FTS.B,

29.49%,

2/04/25

..

$

699

$

720

991708603.UG.FTS.B,

29.49%,

2/04/25

..

290

299

991709190.UG.FTS.B,

29.49%,

2/04/25

..

89

91

991713833.UG.FTS.B,

29.49%,

2/04/25

..

710

720

991714621.UG.FTS.B,

29.49%,

2/04/25

..

173

(9)

991717127.UG.FTS.B,

29.49%,

2/04/25

..

182

187

991717208.UG.FTS.B,

29.49%,

2/04/25

..

430

444

991737055.UG.FTS.B,

29.49%,

2/04/25

..

739

749

991738154.UG.FTS.B,

29.49%,

2/04/25

..

133

131

991746074.UG.FTS.B,

29.49%,

2/04/25

..

1,171

257

991756930.UG.FTS.B,

29.49%,

2/04/25

..

393

88

991758431.UG.FTS.B,

29.49%,

2/04/25

..

110

26

991758842.UG.FTS.B,

29.49%,

2/04/25

..

477

483

991763162.UG.FTS.B,

29.49%,

2/04/25

..

102

105

991763796.UG.FTS.B,

29.49%,

2/04/25

..

147

148

991767029.UG.FTS.B,

29.49%,

2/04/25

..

59

16

991769405.UG.FTS.B,

29.49%,

2/04/25

..

35

35

991774935.UG.FTS.B,

29.49%,

2/04/25

..

1,175

1,210

991786330.UG.FTS.B,

29.49%,

2/04/25

..

1,113

1,132

991786752.UG.FTS.B,

29.49%,

2/04/25

..

117

121

991788127.UG.FTS.B,

29.49%,

2/04/25

..

3,149

199

991807327.UG.FTS.B,

29.49%,

2/04/25

..

229

231

991808732.UG.FTS.B,

29.49%,

2/04/25

..

128

131

991813794.UG.FTS.B,

29.49%,

2/04/25

..

113

111

991839430.UG.FTS.B,

29.49%,

2/04/25

..

194

196

991847043.UG.FTS.B,

29.49%,

2/04/25

..

717

718

991847289.UG.FTS.B,

29.49%,

2/04/25

..

114

116

991848466.UG.FTS.B,

29.49%,

2/04/25

..

85

86

991849560.UG.FTS.B,

29.49%,

2/04/25

..

95

98

991867247.UG.FTS.B,

29.49%,

2/04/25

..

160

157

991876144.UG.FTS.B,

29.49%,

2/04/25

..

123

125

991878368.UG.FTS.B,

29.49%,

2/04/25

..

206

207

991879607.UG.FTS.B,

29.49%,

2/04/25

..

233

235

991884671.UG.FTS.B,

29.49%,

2/04/25

..

78

19

991901138.UG.FTS.B,

29.49%,

2/04/25

..

287

191

991909249.UG.FTS.B,

29.49%,

2/04/25

..

131

133

991910520.UG.FTS.B,

29.49%,

2/04/25

..

217

(6)

991915109.UG.FTS.B,

29.49%,

2/04/25

..

6

6

991915193.UG.FTS.B,

29.49%,

2/04/25

..

100

101

991915888.UG.FTS.B,

29.49%,

2/04/25

..

244

246

991916695.UG.FTS.B,

29.49%,

2/04/25

..

98

70

991916727.UG.FTS.B,

29.49%,

2/04/25

..

64

64

991917180.UG.FTS.B,

29.49%,

2/04/25

..

202

205

991918511.UG.FTS.B,

29.49%,

2/04/25

..

2,023

2,040

991919432.UG.FTS.B,

29.49%,

2/04/25

..

22

22

991923655.UG.FTS.B,

29.49%,

2/04/25

..

33

33

991924956.UG.FTS.B,

29.49%,

2/04/25

..

–

–

991693710.UG.FTS.B,

Zero

Cpn,

2/05/25

.

1,843

127

991695648.UG.FTS.B,

Zero

Cpn,

2/05/25

.

201

14

991713972.UG.FTS.B,

Zero

Cpn,

2/05/25

.

339

23

991714620.UG.FTS.B,

Zero

Cpn,

2/05/25

.

382

26

991742001.UG.FTS.B,

Zero

Cpn,

2/05/25

.

90

6

991743763.UG.FTS.B,

Zero

Cpn,

2/05/25

.

217

15

991754505.UG.FTS.B,

Zero

Cpn,

2/05/25

.

73

5

991793437.UG.FTS.B,

Zero

Cpn,

2/05/25

.

571

40

991817091.UG.FTS.B,

Zero

Cpn,

2/05/25

.

64

4

991833938.UG.FTS.B,

Zero

Cpn,

2/05/25

.

118

8

991923291.UG.FTS.B,

Zero

Cpn,

2/05/25

.

64

5

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991712920.UG.FTS.B,

18.97%,

2/05/25

..

$

–

$

–

991720650.UG.FTS.B,

18.97%,

2/05/25

..

1,705

1,097

991717423.UG.FTS.B,

19.21%,

2/05/25

..

60

61

991788298.UG.FTS.B,

19.21%,

2/05/25

..

213

213

991861184.UG.FTS.B,

19.21%,

2/05/25

..

197

200

991721206.UG.FTS.B,

19.8%,

2/05/25

...

11

11

991682958.UG.FTS.B,

19.99%,

2/05/25

..

1,247

1,246

991693229.UG.FTS.B,

19.99%,

2/05/25

..

93

96

991693967.UG.FTS.B,

19.99%,

2/05/25

..

238

245

991693994.UG.FTS.B,

19.99%,

2/05/25

..

122

126

991700959.UG.FTS.B,

19.99%,

2/05/25

..

31

28

991705785.UG.FTS.B,

19.99%,

2/05/25

..

4

4

991709370.UG.FTS.B,

19.99%,

2/05/25

..

91

91

991710161.UG.FTS.B,

19.99%,

2/05/25

..

86

87

991719379.UG.FTS.B,

19.99%,

2/05/25

..

239

239

991725525.UG.FTS.B,

19.99%,

2/05/25

..

368

370

991726938.UG.FTS.B,

19.99%,

2/05/25

..

118

122

991735635.UG.FTS.B,

19.99%,

2/05/25

..

119

123

991739604.UG.FTS.B,

19.99%,

2/05/25

..

1,346

1,386

991754294.UG.FTS.B,

19.99%,

2/05/25

..

839

852

991772904.UG.FTS.B,

19.99%,

2/05/25

..

174

179

991805088.UG.FTS.B,

19.99%,

2/05/25

..

–

–

991809104.UG.FTS.B,

19.99%,

2/05/25

..

–

–

991817784.UG.FTS.B,

19.99%,

2/05/25

..

158

160

991831360.UG.FTS.B,

19.99%,

2/05/25

..

794

819

991832671.UG.FTS.B,

19.99%,

2/05/25

..

240

241

991895791.UG.FTS.B,

19.99%,

2/05/25

..

66

67

991915152.UG.FTS.B,

19.99%,

2/05/25

..

413

409

991915773.UG.FTS.B,

19.99%,

2/05/25

..

39

39

991918916.UG.FTS.B,

19.99%,

2/05/25

..

53

53

991930448.UG.FTS.B,

19.99%,

2/05/25

..

21

21

991936396.UG.FTS.B,

19.99%,

2/05/25

..

9

9

991938588.UG.FTS.B,

19.99%,

2/05/25

..

–

–

991713079.UG.FTS.B,

20.46%,

2/05/25

..

521

528

991786575.UG.FTS.B,

20.46%,

2/05/25

..

–

–

991841527.UG.FTS.B,

20.46%,

2/05/25

..

581

576

991707903.UG.FTS.B,

20.97%,

2/05/25

..

130

131

991715134.UG.FTS.B,

20.97%,

2/05/25

..

271

274

991715412.UG.FTS.B,

20.97%,

2/05/25

..

279

282

991832676.UG.FTS.B,

20.97%,

2/05/25

..

10,374

10,497

991835755.UG.FTS.B,

20.97%,

2/05/25

..

485

487

991872851.UG.FTS.B,

20.98%,

2/05/25

..

348

348

991693565.UG.FTS.B,

21.46%,

2/05/25

..

177

175

991798372.UG.FTS.B,

21.46%,

2/05/25

..

475

100

991834692.UG.FTS.B,

21.46%,

2/05/25

..

998

1,006

991840414.UG.FTS.B,

21.46%,

2/05/25

..

406

401

991869250.UG.FTS.B,

21.46%,

2/05/25

..

1,663

1,660

991909294.UG.FTS.B,

21.46%,

2/05/25

..

31

31

991910043.UG.FTS.B,

21.46%,

2/05/25

..

1,508

1,505

991721018.UG.FTS.B,

21.98%,

2/05/25

..

761

158

991755283.UG.FTS.B,

21.98%,

2/05/25

..

193

192

991911356.UG.FTS.B,

21.98%,

2/05/25

..

187

187

991708641.UG.FTS.B,

22.97%,

2/05/25

..

695

701

991713571.UG.FTS.B,

22.97%,

2/05/25

..

1,055

1,046

991743501.UG.FTS.B,

22.97%,

2/05/25

..

547

552

991748087.UG.FTS.B,

22.97%,

2/05/25

..

16

16

991783388.UG.FTS.B,

22.97%,

2/05/25

..

419

422

991794589.UG.FTS.B,

22.97%,

2/05/25

..

155

156

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

139

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991924883.UG.FTS.B,

23.95%,

2/05/25

..

$

81

$

81

991703789.UG.FTS.B,

24.95%,

2/05/25

..

203

201

991804301.UG.FTS.B,

25.94%,

2/05/25

..

221

27

991707914.UG.FTS.B,

25.95%,

2/05/25

..

69

69

991743591.UG.FTS.B,

25.95%,

2/05/25

..

178

176

991755942.UG.FTS.B,

26.94%,

2/05/25

..

744

507

991737282.UG.FTS.B,

27.95%,

2/05/25

..

131

135

991693154.UG.FTS.B,

27.99%,

2/05/25

..

43

42

991696029.UG.FTS.B,

27.99%,

2/05/25

..

271

280

991705622.UG.FTS.B,

27.99%,

2/05/25

..

237

243

991706774.UG.FTS.B,

27.99%,

2/05/25

..

22

22

991717022.UG.FTS.B,

27.99%,

2/05/25

..

235

243

991747914.UG.FTS.B,

27.99%,

2/05/25

..

2,759

2,844

991750448.UG.FTS.B,

27.99%,

2/05/25

..

130

128

991806478.UG.FTS.B,

27.99%,

2/05/25

..

44

37

991936016.UG.FTS.B,

27.99%,

2/05/25

..

48

47

991675164.UG.FTS.B,

28.98%,

2/05/25

..

1,510

325

991677817.UG.FTS.B,

28.98%,

2/05/25

..

1,541

1,556

991680083.UG.FTS.B,

28.98%,

2/05/25

..

64

64

991683489.UG.FTS.B,

28.98%,

2/05/25

..

2,438

2,505

991693898.UG.FTS.B,

28.98%,

2/05/25

..

58

8

991694863.UG.FTS.B,

28.98%,

2/05/25

..

21

21

991695593.UG.FTS.B,

28.98%,

2/05/25

..

29

29

991696534.UG.FTS.B,

28.98%,

2/05/25

..

287

22

991700269.UG.FTS.B,

28.98%,

2/05/25

..

171

176

991702659.UG.FTS.B,

28.98%,

2/05/25

..

609

37

991702789.UG.FTS.B,

28.98%,

2/05/25

..

571

585

991702826.UG.FTS.B,

28.98%,

2/05/25

..

149

10

991704666.UG.FTS.B,

28.98%,

2/05/25

..

399

411

991704721.UG.FTS.B,

28.98%,

2/05/25

..

89

6

991705698.UG.FTS.B,

28.98%,

2/05/25

..

82

84

991705736.UG.FTS.B,

28.98%,

2/05/25

..

148

31

991706202.UG.FTS.B,

28.98%,

2/05/25

..

380

392

991706300.UG.FTS.B,

28.98%,

2/05/25

..

330

336

991706343.UG.FTS.B,

28.98%,

2/05/25

..

93

94

991706382.UG.FTS.B,

28.98%,

2/05/25

..

161

166

991706981.UG.FTS.B,

28.98%,

2/05/25

..

–

–

991707064.UG.FTS.B,

28.98%,

2/05/25

..

769

99

991708055.UG.FTS.B,

28.98%,

2/05/25

..

203

210

991708168.UG.FTS.B,

28.98%,

2/05/25

..

290

211

991708239.UG.FTS.B,

28.98%,

2/05/25

..

190

195

991708288.UG.FTS.B,

28.98%,

2/05/25

..

179

177

991708354.UG.FTS.B,

28.98%,

2/05/25

..

140

139

991708535.UG.FTS.B,

28.98%,

2/05/25

..

9

9

991709411.UG.FTS.B,

28.98%,

2/05/25

..

202

201

991710032.UG.FTS.B,

28.98%,

2/05/25

..

75

74

991710420.UG.FTS.B,

28.98%,

2/05/25

..

522

31

991710514.UG.FTS.B,

28.98%,

2/05/25

..

55

45

991710560.UG.FTS.B,

28.98%,

2/05/25

..

554

562

991711890.UG.FTS.B,

28.98%,

2/05/25

..

460

452

991712219.UG.FTS.B,

28.98%,

2/05/25

..

871

891

991712458.UG.FTS.B,

28.98%,

2/05/25

..

130

130

991714493.UG.FTS.B,

28.98%,

2/05/25

..

133

137

991715735.UG.FTS.B,

28.98%,

2/05/25

..

100

102

991716179.UG.FTS.B,

28.98%,

2/05/25

..

216

222

991717401.UG.FTS.B,

28.98%,

2/05/25

..

250

55

991718026.UG.FTS.B,

28.98%,

2/05/25

..

638

41

991718944.UG.FTS.B,

28.98%,

2/05/25

..

846

872

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991719300.UG.FTS.B,

28.98%,

2/05/25

..

$

91

$

(4)

991721024.UG.FTS.B,

28.98%,

2/05/25

..

764

788

991721186.UG.FTS.B,

28.98%,

2/05/25

..

936

(42)

991724571.UG.FTS.B,

28.98%,

2/05/25

..

189

195

991724730.UG.FTS.B,

28.98%,

2/05/25

..

814

840

991726806.UG.FTS.B,

28.98%,

2/05/25

..

141

144

991728132.UG.FTS.B,

28.98%,

2/05/25

..

796

803

991729522.UG.FTS.B,

28.98%,

2/05/25

..

59

60

991730611.UG.FTS.B,

28.98%,

2/05/25

..

854

881

991732989.UG.FTS.B,

28.98%,

2/05/25

..

346

357

991733966.UG.FTS.B,

28.98%,

2/05/25

..

92

11

991734130.UG.FTS.B,

28.98%,

2/05/25

..

74

76

991734853.UG.FTS.B,

28.98%,

2/05/25

..

124

127

991735560.UG.FTS.B,

28.98%,

2/05/25

..

112

116

991736771.UG.FTS.B,

28.98%,

2/05/25

..

231

235

991737214.UG.FTS.B,

28.98%,

2/05/25

..

197

203

991737532.UG.FTS.B,

28.98%,

2/05/25

..

1,765

1,802

991737652.UG.FTS.B,

28.98%,

2/05/25

..

400

412

991739073.UG.FTS.B,

28.98%,

2/05/25

..

253

254

991739154.UG.FTS.B,

28.98%,

2/05/25

..

2,821

2,910

991739980.UG.FTS.B,

28.98%,

2/05/25

..

342

352

991742979.UG.FTS.B,

28.98%,

2/05/25

..

99

102

991743526.UG.FTS.B,

28.98%,

2/05/25

..

271

280

991744726.UG.FTS.B,

28.98%,

2/05/25

..

293

290

991745601.UG.FTS.B,

28.98%,

2/05/25

..

320

328

991745801.UG.FTS.B,

28.98%,

2/05/25

..

20

(1)

991746873.UG.FTS.B,

28.98%,

2/05/25

..

204

209

991747299.UG.FTS.B,

28.98%,

2/05/25

..

92

93

991749552.UG.FTS.B,

28.98%,

2/05/25

..

310

201

991751338.UG.FTS.B,

28.98%,

2/05/25

..

36

35

991753087.UG.FTS.B,

28.98%,

2/05/25

..

39

39

991755981.UG.FTS.B,

28.98%,

2/05/25

..

274

283

991759228.UG.FTS.B,

28.98%,

2/05/25

..

63

17

991759687.UG.FTS.B,

28.98%,

2/05/25

..

293

302

991761917.UG.FTS.B,

28.98%,

2/05/25

..

194

200

991762144.UG.FTS.B,

28.98%,

2/05/25

..

190

193

991762262.UG.FTS.B,

28.98%,

2/05/25

..

157

45

991764086.UG.FTS.B,

28.98%,

2/05/25

..

81

83

991764922.UG.FTS.B,

28.98%,

2/05/25

..

155

160

991765246.UG.FTS.B,

28.98%,

2/05/25

..

–

–

991769018.UG.FTS.B,

28.98%,

2/05/25

..

322

332

991769355.UG.FTS.B,

28.98%,

2/05/25

..

7

7

991769429.UG.FTS.B,

28.98%,

2/05/25

..

99

102

991772451.UG.FTS.B,

28.98%,

2/05/25

..

1,022

1,053

991776821.UG.FTS.B,

28.98%,

2/05/25

..

112

115

991776933.UG.FTS.B,

28.98%,

2/05/25

..

304

309

991783383.UG.FTS.B,

28.98%,

2/05/25

..

1,942

(134)

991783771.UG.FTS.B,

28.98%,

2/05/25

..

1,059

1,093

991784786.UG.FTS.B,

28.98%,

2/05/25

..

60

60

991788735.UG.FTS.B,

28.98%,

2/05/25

..

454

468

991789109.UG.FTS.B,

28.98%,

2/05/25

..

307

304

991790367.UG.FTS.B,

28.98%,

2/05/25

..

1,294

1,317

991796763.UG.FTS.B,

28.98%,

2/05/25

..

64

62

991796983.UG.FTS.B,

28.98%,

2/05/25

..

19

19

991802238.UG.FTS.B,

28.98%,

2/05/25

..

131

130

991805668.UG.FTS.B,

28.98%,

2/05/25

..

124

127

991807068.UG.FTS.B,

28.98%,

2/05/25

..

401

411

991808450.UG.FTS.B,

28.98%,

2/05/25

..

144

149

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

140

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991810934.UG.FTS.B,

28.98%,

2/05/25

..

$

2,277

$

139

991811477.UG.FTS.B,

28.98%,

2/05/25

..

850

876

991813874.UG.FTS.B,

28.98%,

2/05/25

..

143

147

991815656.UG.FTS.B,

28.98%,

2/05/25

..

17

17

991819745.UG.FTS.B,

28.98%,

2/05/25

..

69

70

991819751.UG.FTS.B,

28.98%,

2/05/25

..

719

735

991820191.UG.FTS.B,

28.98%,

2/05/25

..

90

92

991829108.UG.FTS.B,

28.98%,

2/05/25

..

653

658

991833444.UG.FTS.B,

28.98%,

2/05/25

..

297

303

991836188.UG.FTS.B,

28.98%,

2/05/25

..

206

209

991836325.UG.FTS.B,

28.98%,

2/05/25

..

402

401

991836344.UG.FTS.B,

28.98%,

2/05/25

..

147

146

991837760.UG.FTS.B,

28.98%,

2/05/25

..

559

68

991842297.UG.FTS.B,

28.98%,

2/05/25

..

110

113

991842364.UG.FTS.B,

28.98%,

2/05/25

..

1,333

1,364

991844958.UG.FTS.B,

28.98%,

2/05/25

..

889

590

991851738.UG.FTS.B,

28.98%,

2/05/25

..

26

26

991853185.UG.FTS.B,

28.98%,

2/05/25

..

16

16

991853554.UG.FTS.B,

28.98%,

2/05/25

..

–

–

991853573.UG.FTS.B,

28.98%,

2/05/25

..

846

872

991853603.UG.FTS.B,

28.98%,

2/05/25

..

315

323

991855938.UG.FTS.B,

28.98%,

2/05/25

..

300

309

991857568.UG.FTS.B,

28.98%,

2/05/25

..

464

478

991857619.UG.FTS.B,

28.98%,

2/05/25

..

197

200

991863657.UG.FTS.B,

28.98%,

2/05/25

..

127

131

991865740.UG.FTS.B,

28.98%,

2/05/25

..

122

7

991868870.UG.FTS.B,

28.98%,

2/05/25

..

45

45

991884917.UG.FTS.B,

28.98%,

2/05/25

..

476

484

991886335.UG.FTS.B,

28.98%,

2/05/25

..

335

340

991889830.UG.FTS.B,

28.98%,

2/05/25

..

376

382

991893126.UG.FTS.B,

28.98%,

2/05/25

..

46

46

991894894.UG.FTS.B,

28.98%,

2/05/25

..

1,518

1,541

991897007.UG.FTS.B,

28.98%,

2/05/25

..

136

137

991900228.UG.FTS.B,

28.98%,

2/05/25

..

54

53

991900834.UG.FTS.B,

28.98%,

2/05/25

..

22

22

991901365.UG.FTS.B,

28.98%,

2/05/25

..

839

851

991903733.UG.FTS.B,

28.98%,

2/05/25

..

41

41

991908584.UG.FTS.B,

28.98%,

2/05/25

..

105

107

991911562.UG.FTS.B,

28.98%,

2/05/25

..

355

88

991914304.UG.FTS.B,

28.98%,

2/05/25

..

135

137

991914967.UG.FTS.B,

28.98%,

2/05/25

..

1

1

991916809.UG.FTS.B,

28.98%,

2/05/25

..

73

73

991918327.UG.FTS.B,

28.98%,

2/05/25

..

80

19

991918392.UG.FTS.B,

28.98%,

2/05/25

..

138

(6)

991921265.UG.FTS.B,

28.98%,

2/05/25

..

109

110

991922743.UG.FTS.B,

28.98%,

2/05/25

..

90

93

991937493.UG.FTS.B,

28.98%,

2/05/25

..

752

763

991937565.UG.FTS.B,

28.98%,

2/05/25

..

188

185

991938119.UG.FTS.B,

28.98%,

2/05/25

..

1,512

1,535

991681542.UG.FTS.B,

29.45%,

2/05/25

..

110

110

991857451.UG.FTS.B,

29.45%,

2/05/25

..

36

36

991896785.UG.FTS.B,

29.47%,

2/05/25

..

4,087

4,062

991692669.UG.FTS.B,

29.48%,

2/05/25

..

600

618

991680433.UG.FTS.B,

29.49%,

2/05/25

..

254

255

991693084.UG.FTS.B,

29.49%,

2/05/25

..

108

111

991693368.UG.FTS.B,

29.49%,

2/05/25

..

15

15

991694002.UG.FTS.B,

29.49%,

2/05/25

..

45

45

991694063.UG.FTS.B,

29.49%,

2/05/25

..

19

19

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991694154.UG.FTS.B,

29.49%,

2/05/25

..

$

1,022

$

1,006

991694848.UG.FTS.B,

29.49%,

2/05/25

..

1,318

1,335

991695320.UG.FTS.B,

29.49%,

2/05/25

..

105

23

991695683.UG.FTS.B,

29.49%,

2/05/25

..

–

–

991695684.UG.FTS.B,

29.49%,

2/05/25

..

314

312

991696008.UG.FTS.B,

29.49%,

2/05/25

..

30

30

991696026.UG.FTS.B,

29.49%,

2/05/25

..

19

3

991696109.UG.FTS.B,

29.49%,

2/05/25

..

55

56

991696191.UG.FTS.B,

29.49%,

2/05/25

..

119

(3)

991697214.UG.FTS.B,

29.49%,

2/05/25

..

176

182

991697402.UG.FTS.B,

29.49%,

2/05/25

..

228

234

991698261.UG.FTS.B,

29.49%,

2/05/25

..

–

–

991699635.UG.FTS.B,

29.49%,

2/05/25

..

10

10

991700073.UG.FTS.B,

29.49%,

2/05/25

..

228

235

991700153.UG.FTS.B,

29.49%,

2/05/25

..

386

392

991700408.UG.FTS.B,

29.49%,

2/05/25

..

17

17

991700758.UG.FTS.B,

29.49%,

2/05/25

..

404

410

991701975.UG.FTS.B,

29.49%,

2/05/25

..

142

138

991702103.UG.FTS.B,

29.49%,

2/05/25

..

217

222

991702149.UG.FTS.B,

29.49%,

2/05/25

..

317

325

991702168.UG.FTS.B,

29.49%,

2/05/25

..

–

–

991702693.UG.FTS.B,

29.49%,

2/05/25

..

150

8

991702737.UG.FTS.B,

29.49%,

2/05/25

..

125

(6)

991703134.UG.FTS.B,

29.49%,

2/05/25

..

27

26

991703611.UG.FTS.B,

29.49%,

2/05/25

..

124

127

991704018.UG.FTS.B,

29.49%,

2/05/25

..

8

8

991704269.UG.FTS.B,

29.49%,

2/05/25

..

123

124

991704532.UG.FTS.B,

29.49%,

2/05/25

..

369

(20)

991704974.UG.FTS.B,

29.49%,

2/05/25

..

169

167

991705010.UG.FTS.B,

29.49%,

2/05/25

..

1,294

896

991705084.UG.FTS.B,

29.49%,

2/05/25

..

85

87

991705304.UG.FTS.B,

29.49%,

2/05/25

..

602

589

991706770.UG.FTS.B,

29.49%,

2/05/25

..

164

169

991707286.UG.FTS.B,

29.49%,

2/05/25

..

56

56

991707576.UG.FTS.B,

29.49%,

2/05/25

..

109

13

991707666.UG.FTS.B,

29.49%,

2/05/25

..

34

33

991707844.UG.FTS.B,

29.49%,

2/05/25

..

14

14

991708918.UG.FTS.B,

29.49%,

2/05/25

..

657

657

991709106.UG.FTS.B,

29.49%,

2/05/25

..

27

4

991709219.UG.FTS.B,

29.49%,

2/05/25

..

86

88

991709454.UG.FTS.B,

29.49%,

2/05/25

..

215

219

991710089.UG.FTS.B,

29.49%,

2/05/25

..

248

249

991710338.UG.FTS.B,

29.49%,

2/05/25

..

65

64

991710782.UG.FTS.B,

29.49%,

2/05/25

..

1,105

1,135

991711354.UG.FTS.B,

29.49%,

2/05/25

..

30

30

991711446.UG.FTS.B,

29.49%,

2/05/25

..

57

58

991712242.UG.FTS.B,

29.49%,

2/05/25

..

223

219

991713293.UG.FTS.B,

29.49%,

2/05/25

..

138

142

991713639.UG.FTS.B,

29.49%,

2/05/25

..

260

262

991713769.UG.FTS.B,

29.49%,

2/05/25

..

45

45

991714061.UG.FTS.B,

29.49%,

2/05/25

..

19

18

991714180.UG.FTS.B,

29.49%,

2/05/25

..

313

322

991714380.UG.FTS.B,

29.49%,

2/05/25

..

1,253

271

991714508.UG.FTS.B,

29.49%,

2/05/25

..

33

33

991714617.UG.FTS.B,

29.49%,

2/05/25

..

124

125

991715331.UG.FTS.B,

29.49%,

2/05/25

..

230

29

991715444.UG.FTS.B,

29.49%,

2/05/25

..

1,022

1,031

991715800.UG.FTS.B,

29.49%,

2/05/25

..

173

178

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

141

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991716657.UG.FTS.B,

29.49%,

2/05/25

..

$

52

$

53

991717220.UG.FTS.B,

29.49%,

2/05/25

..

25

24

991718850.UG.FTS.B,

29.49%,

2/05/25

..

737

731

991719235.UG.FTS.B,

29.49%,

2/05/25

..

308

297

991719314.UG.FTS.B,

29.49%,

2/05/25

..

16

15

991719551.UG.FTS.B,

29.49%,

2/05/25

..

256

264

991720302.UG.FTS.B,

29.49%,

2/05/25

..

1,842

231

991722607.UG.FTS.B,

29.49%,

2/05/25

..

49

15

991722812.UG.FTS.B,

29.49%,

2/05/25

..

249

257

991722885.UG.FTS.B,

29.49%,

2/05/25

..

385

250

991723913.UG.FTS.B,

29.49%,

2/05/25

..

73

74

991723921.UG.FTS.B,

29.49%,

2/05/25

..

115

25

991724744.UG.FTS.B,

29.49%,

2/05/25

..

18

18

991725533.UG.FTS.B,

29.49%,

2/05/25

..

231

28

991725800.UG.FTS.B,

29.49%,

2/05/25

..

272

278

991727032.UG.FTS.B,

29.49%,

2/05/25

..

166

171

991727200.UG.FTS.B,

29.49%,

2/05/25

..

238

235

991727290.UG.FTS.B,

29.49%,

2/05/25

..

34

34

991728298.UG.FTS.B,

29.49%,

2/05/25

..

104

107

991728509.UG.FTS.B,

29.49%,

2/05/25

..

84

86

991730414.UG.FTS.B,

29.49%,

2/05/25

..

724

722

991731697.UG.FTS.B,

29.49%,

2/05/25

..

234

51

991732282.UG.FTS.B,

29.49%,

2/05/25

..

149

154

991732719.UG.FTS.B,

29.49%,

2/05/25

..

241

236

991733288.UG.FTS.B,

29.49%,

2/05/25

..

8

8

991733824.UG.FTS.B,

29.49%,

2/05/25

..

1,686

1,737

991734685.UG.FTS.B,

29.49%,

2/05/25

..

103

102

991736873.UG.FTS.B,

29.49%,

2/05/25

..

484

491

991737308.UG.FTS.B,

29.49%,

2/05/25

..

447

451

991738913.UG.FTS.B,

29.49%,

2/05/25

..

38

33

991741465.UG.FTS.B,

29.49%,

2/05/25

..

118

117

991741813.UG.FTS.B,

29.49%,

2/05/25

..

101

104

991741984.UG.FTS.B,

29.49%,

2/05/25

..

316

324

991743811.UG.FTS.B,

29.49%,

2/05/25

..

103

23

991744524.UG.FTS.B,

29.49%,

2/05/25

..

205

208

991745068.UG.FTS.B,

29.49%,

2/05/25

..

6,012

6,202

991745294.UG.FTS.B,

29.49%,

2/05/25

..

149

153

991745434.UG.FTS.B,

29.49%,

2/05/25

..

58

59

991745495.UG.FTS.B,

29.49%,

2/05/25

..

78

79

991745604.UG.FTS.B,

29.49%,

2/05/25

..

87

37

991746165.UG.FTS.B,

29.49%,

2/05/25

..

250

258

991747447.UG.FTS.B,

29.49%,

2/05/25

..

657

678

991747772.UG.FTS.B,

29.49%,

2/05/25

..

57

56

991748176.UG.FTS.B,

29.49%,

2/05/25

..

116

118

991748448.UG.FTS.B,

29.49%,

2/05/25

..

1,224

1,244

991750763.UG.FTS.B,

29.49%,

2/05/25

..

335

345

991751122.UG.FTS.B,

29.49%,

2/05/25

..

318

326

991751856.UG.FTS.B,

29.49%,

2/05/25

..

61

62

991752282.UG.FTS.B,

29.49%,

2/05/25

..

314

303

991752383.UG.FTS.B,

29.49%,

2/05/25

..

169

175

991753004.UG.FTS.B,

29.49%,

2/05/25

..

296

303

991753604.UG.FTS.B,

29.49%,

2/05/25

..

287

295

991754108.UG.FTS.B,

29.49%,

2/05/25

..

145

149

991754738.UG.FTS.B,

29.49%,

2/05/25

..

1,449

(69)

991755735.UG.FTS.B,

29.49%,

2/05/25

..

649

636

991756003.UG.FTS.B,

29.49%,

2/05/25

..

282

34

991756132.UG.FTS.B,

29.49%,

2/05/25

..

161

165

991756904.UG.FTS.B,

29.49%,

2/05/25

..

54

55

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991757074.UG.FTS.B,

29.49%,

2/05/25

..

$

119

$

84

991757533.UG.FTS.B,

29.49%,

2/05/25

..

144

147

991761533.UG.FTS.B,

29.49%,

2/05/25

..

459

457

991767013.UG.FTS.B,

29.49%,

2/05/25

..

154

159

991768291.UG.FTS.B,

29.49%,

2/05/25

..

119

123

991769834.UG.FTS.B,

29.49%,

2/05/25

..

258

256

991770008.UG.FTS.B,

29.49%,

2/05/25

..

123

121

991770185.UG.FTS.B,

29.49%,

2/05/25

..

136

139

991770513.UG.FTS.B,

29.49%,

2/05/25

..

102

105

991770583.UG.FTS.B,

29.49%,

2/05/25

..

564

574

991775351.UG.FTS.B,

29.49%,

2/05/25

..

841

858

991777615.UG.FTS.B,

29.49%,

2/05/25

..

35

34

991779678.UG.FTS.B,

29.49%,

2/05/25

..

160

165

991781231.UG.FTS.B,

29.49%,

2/05/25

..

37

37

991781254.UG.FTS.B,

29.49%,

2/05/25

..

77

10

991781338.UG.FTS.B,

29.49%,

2/05/25

..

991

1,022

991781343.UG.FTS.B,

29.49%,

2/05/25

..

47

47

991783476.UG.FTS.B,

29.49%,

2/05/25

..

1,310

1,331

991783713.UG.FTS.B,

29.49%,

2/05/25

..

429

440

991786645.UG.FTS.B,

29.49%,

2/05/25

..

1,012

125

991788833.UG.FTS.B,

29.49%,

2/05/25

..

399

411

991790182.UG.FTS.B,

29.49%,

2/05/25

..

124

128

991792046.UG.FTS.B,

29.49%,

2/05/25

..

85

87

991792427.UG.FTS.B,

29.49%,

2/05/25

..

256

264

991794941.UG.FTS.B,

29.49%,

2/05/25

..

24

24

991795036.UG.FTS.B,

29.49%,

2/05/25

..

–

–

991795791.UG.FTS.B,

29.49%,

2/05/25

..

66

18

991796894.UG.FTS.B,

29.49%,

2/05/25

..

716

738

991798321.UG.FTS.B,

29.49%,

2/05/25

..

936

112

991800020.UG.FTS.B,

29.49%,

2/05/25

..

184

12

991805103.UG.FTS.B,

29.49%,

2/05/25

..

141

31

991805106.UG.FTS.B,

29.49%,

2/05/25

..

422

428

991810808.UG.FTS.B,

29.49%,

2/05/25

..

380

26

991811197.UG.FTS.B,

29.49%,

2/05/25

..

289

294

991811424.UG.FTS.B,

29.49%,

2/05/25

..

711

158

991812577.UG.FTS.B,

29.49%,

2/05/25

..

144

149

991812942.UG.FTS.B,

29.49%,

2/05/25

..

53

53

991814320.UG.FTS.B,

29.49%,

2/05/25

..

421

90

991814652.UG.FTS.B,

29.49%,

2/05/25

..

96

22

991814933.UG.FTS.B,

29.49%,

2/05/25

..

182

185

991815312.UG.FTS.B,

29.49%,

2/05/25

..

288

297

991815686.UG.FTS.B,

29.49%,

2/05/25

..

141

18

991816202.UG.FTS.B,

29.49%,

2/05/25

..

25

25

991819334.UG.FTS.B,

29.49%,

2/05/25

..

462

311

991819739.UG.FTS.B,

29.49%,

2/05/25

..

1,041

1,073

991819909.UG.FTS.B,

29.49%,

2/05/25

..

57

57

991820737.UG.FTS.B,

29.49%,

2/05/25

..

218

220

991820976.UG.FTS.B,

29.49%,

2/05/25

..

491

507

991822456.UG.FTS.B,

29.49%,

2/05/25

..

105

74

991823481.UG.FTS.B,

29.49%,

2/05/25

..

169

174

991826495.UG.FTS.B,

29.49%,

2/05/25

..

26

25

991826970.UG.FTS.B,

29.49%,

2/05/25

..

9

9

991827783.UG.FTS.B,

29.49%,

2/05/25

..

111

14

991831731.UG.FTS.B,

29.49%,

2/05/25

..

211

212

991834388.UG.FTS.B,

29.49%,

2/05/25

..

253

57

991834538.UG.FTS.B,

29.49%,

2/05/25

..

270

34

991839936.UG.FTS.B,

29.49%,

2/05/25

..

279

274

991841623.UG.FTS.B,

29.49%,

2/05/25

..

819

839

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

142

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991841707.UG.FTS.B,

29.49%,

2/05/25

..

$

8

$

4

991842723.UG.FTS.B,

29.49%,

2/05/25

..

150

155

991844850.UG.FTS.B,

29.49%,

2/05/25

..

126

130

991847860.UG.FTS.B,

29.49%,

2/05/25

..

172

174

991850751.UG.FTS.B,

29.49%,

2/05/25

..

242

250

991853314.UG.FTS.B,

29.49%,

2/05/25

..

144

145

991857355.UG.FTS.B,

29.49%,

2/05/25

..

121

124

991857557.UG.FTS.B,

29.49%,

2/05/25

..

71

9

991857915.UG.FTS.B,

29.49%,

2/05/25

..

462

447

991860099.UG.FTS.B,

29.49%,

2/05/25

..

17

17

991862214.UG.FTS.B,

29.49%,

2/05/25

..

57

57

991865694.UG.FTS.B,

29.49%,

2/05/25

..

189

13

991871757.UG.FTS.B,

29.49%,

2/05/25

..

13

13

991872236.UG.FTS.B,

29.49%,

2/05/25

..

258

251

991872516.UG.FTS.B,

29.49%,

2/05/25

..

30

30

991872591.UG.FTS.B,

29.49%,

2/05/25

..

9

1

991875302.UG.FTS.B,

29.49%,

2/05/25

..

128

28

991883714.UG.FTS.B,

29.49%,

2/05/25

..

16

16

991884966.UG.FTS.B,

29.49%,

2/05/25

..

273

276

991887195.UG.FTS.B,

29.49%,

2/05/25

..

97

24

991891596.UG.FTS.B,

29.49%,

2/05/25

..

49

50

991896775.UG.FTS.B,

29.49%,

2/05/25

..

122

124

991898315.UG.FTS.B,

29.49%,

2/05/25

..

260

56

991900261.UG.FTS.B,

29.49%,

2/05/25

..

190

192

991902380.UG.FTS.B,

29.49%,

2/05/25

..

41

41

991902591.UG.FTS.B,

29.49%,

2/05/25

..

380

370

991904220.UG.FTS.B,

29.49%,

2/05/25

..

5

5

991906894.UG.FTS.B,

29.49%,

2/05/25

..

–

–

991907892.UG.FTS.B,

29.49%,

2/05/25

..

14

14

991908115.UG.FTS.B,

29.49%,

2/05/25

..

73

74

991908155.UG.FTS.B,

29.49%,

2/05/25

..

287

289

991908665.UG.FTS.B,

29.49%,

2/05/25

..

295

298

991909242.UG.FTS.B,

29.49%,

2/05/25

..

42

(2)

991917308.UG.FTS.B,

29.49%,

2/05/25

..

272

33

991917746.UG.FTS.B,

29.49%,

2/05/25

..

135

135

991919187.UG.FTS.B,

29.49%,

2/05/25

..

227

229

991920123.UG.FTS.B,

29.49%,

2/05/25

..

30

30

991921228.UG.FTS.B,

29.49%,

2/05/25

..

77

79

991923888.UG.FTS.B,

29.49%,

2/05/25

..

14

14

991924046.UG.FTS.B,

29.49%,

2/05/25

..

7

7

991925238.UG.FTS.B,

29.49%,

2/05/25

..

12

12

991925421.UG.FTS.B,

29.49%,

2/05/25

..

85

13

991927325.UG.FTS.B,

29.49%,

2/05/25

..

20

19

991929728.UG.FTS.B,

29.49%,

2/05/25

..

655

661

991931394.UG.FTS.B,

29.49%,

2/05/25

..

–

–

991934337.UG.FTS.B,

29.49%,

2/05/25

..

65

66

991936527.UG.FTS.B,

29.49%,

2/05/25

..

19

18

991937053.UG.FTS.B,

29.49%,

2/05/25

..

421

427

991938113.UG.FTS.B,

29.49%,

2/05/25

..

396

400

991692513.UG.FTS.B,

29.99%,

2/05/25

..

2,038

139

991699886.UG.FTS.B,

Zero

Cpn,

2/06/25

.

333

23

991705923.UG.FTS.B,

Zero

Cpn,

2/06/25

.

282

20

991708178.UG.FTS.B,

Zero

Cpn,

2/06/25

.

528

36

991712710.UG.FTS.B,

Zero

Cpn,

2/06/25

.

452

31

991716026.UG.FTS.B,

Zero

Cpn,

2/06/25

.

45

3

991716642.UG.FTS.B,

Zero

Cpn,

2/06/25

.

75

5

991719099.UG.FTS.B,

Zero

Cpn,

2/06/25

.

1,320

91

991722251.UG.FTS.B,

Zero

Cpn,

2/06/25

.

479

33

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991728154.UG.FTS.B,

Zero

Cpn,

2/06/25

.

$

167

$

12

991729001.UG.FTS.B,

Zero

Cpn,

2/06/25

.

98

7

991749163.UG.FTS.B,

Zero

Cpn,

2/06/25

.

110

8

991793041.UG.FTS.B,

Zero

Cpn,

2/06/25

.

51

4

991842608.UG.FTS.B,

Zero

Cpn,

2/06/25

.

197

14

991895260.UG.FTS.B,

Zero

Cpn,

2/06/25

.

566

39

991822957.UG.FTS.B,

14%,

2/06/25

.....

574

41

991945741.UG.FTS.B,

15.97%,

2/06/25

..

477

482

991941061.UG.FTS.B,

17.99%,

2/06/25

..

408

412

991700171.UG.FTS.B,

18.97%,

2/06/25

..

598

607

991705387.UG.FTS.B,

18.97%,

2/06/25

..

3,610

405

991710536.UG.FTS.B,

18.97%,

2/06/25

..

735

747

991789990.UG.FTS.B,

18.97%,

2/06/25

..

700

711

991810503.UG.FTS.B,

18.97%,

2/06/25

..

1,275

820

991873192.UG.FTS.B,

18.97%,

2/06/25

..

133

135

991699734.UG.FTS.B,

19.21%,

2/06/25

..

295

300

991716319.UG.FTS.B,

19.21%,

2/06/25

..

568

577

991786750.UG.FTS.B,

19.21%,

2/06/25

..

217

220

991820502.UG.FTS.B,

19.21%,

2/06/25

..

9

8

991883800.UG.FTS.B,

19.21%,

2/06/25

..

1,190

1,198

991701533.UG.FTS.B,

19.8%,

2/06/25

...

331

336

991710752.UG.FTS.B,

19.8%,

2/06/25

...

451

457

991721799.UG.FTS.B,

19.8%,

2/06/25

...

1,258

82

991723663.UG.FTS.B,

19.8%,

2/06/25

...

965

622

991724397.UG.FTS.B,

19.8%,

2/06/25

...

130

8

991724990.UG.FTS.B,

19.8%,

2/06/25

...

152

152

991725148.UG.FTS.B,

19.8%,

2/06/25

...

84

85

991689655.UG.FTS.B,

19.99%,

2/06/25

..

393

390

991698898.UG.FTS.B,

19.99%,

2/06/25

..

1,538

1,536

991701760.UG.FTS.B,

19.99%,

2/06/25

..

73

74

991711306.UG.FTS.B,

19.99%,

2/06/25

..

97

99

991725114.UG.FTS.B,

19.99%,

2/06/25

..

424

86

991725688.UG.FTS.B,

19.99%,

2/06/25

..

51

52

991742036.UG.FTS.B,

19.99%,

2/06/25

..

719

(6)

991748014.UG.FTS.B,

19.99%,

2/06/25

..

77

76

991752021.UG.FTS.B,

19.99%,

2/06/25

..

359

371

991755348.UG.FTS.B,

19.99%,

2/06/25

..

124

128

991767533.UG.FTS.B,

19.99%,

2/06/25

..

100

102

991802156.UG.FTS.B,

19.99%,

2/06/25

..

831

853

991853035.UG.FTS.B,

19.99%,

2/06/25

..

416

419

991919722.UG.FTS.B,

19.99%,

2/06/25

..

48

48

991710953.UG.FTS.B,

20.46%,

2/06/25

..

170

11

991712370.UG.FTS.B,

20.46%,

2/06/25

..

138

140

991714002.UG.FTS.B,

20.46%,

2/06/25

..

865

876

991721249.UG.FTS.B,

20.46%,

2/06/25

..

209

211

991754233.UG.FTS.B,

20.46%,

2/06/25

..

203

205

991801256.UG.FTS.B,

20.46%,

2/06/25

..

498

505

991829259.UG.FTS.B,

20.46%,

2/06/25

..

215

218

991863415.UG.FTS.B,

20.46%,

2/06/25

..

910

922

991718934.UG.FTS.B,

20.97%,

2/06/25

..

219

219

991699332.UG.FTS.B,

21.46%,

2/06/25

..

1,116

1,126

991714495.UG.FTS.B,

21.46%,

2/06/25

..

119

82

991746397.UG.FTS.B,

21.46%,

2/06/25

..

43

43

991751167.UG.FTS.B,

21.46%,

2/06/25

..

36

36

991820455.UG.FTS.B,

21.46%,

2/06/25

..

404

408

991860678.UG.FTS.B,

21.46%,

2/06/25

..

127

126

991907835.UG.FTS.B,

21.46%,

2/06/25

..

393

26

991907895.UG.FTS.B,

21.97%,

2/06/25

..

5,699

5,675

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

143

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991726288.UG.FTS.B,

21.98%,

2/06/25

..

$

215

$

217

991741410.UG.FTS.B,

21.98%,

2/06/25

..

355

352

991792953.UG.FTS.B,

21.98%,

2/06/25

..

4,182

4,218

991807809.UG.FTS.B,

21.98%,

2/06/25

..

3,055

3,022

991845918.UG.FTS.B,

21.98%,

2/06/25

..

397

395

991869067.UG.FTS.B,

21.98%,

2/06/25

..

847

855

991922957.UG.FTS.B,

21.98%,

2/06/25

..

237

233

991713412.UG.FTS.B,

22.97%,

2/06/25

..

53

53

991730286.UG.FTS.B,

22.97%,

2/06/25

..

4,197

4,228

991768595.UG.FTS.B,

22.97%,

2/06/25

..

79

79

991871370.UG.FTS.B,

22.97%,

2/06/25

..

6,871

6,930

991927310.UG.FTS.B,

22.97%,

2/06/25

..

62

62

991740335.UG.FTS.B,

23.95%,

2/06/25

..

1,171

139

991769602.UG.FTS.B,

23.95%,

2/06/25

..

1,226

1,233

991773651.UG.FTS.B,

23.95%,

2/06/25

..

648

133

991793223.UG.FTS.B,

23.95%,

2/06/25

..

669

670

991916415.UG.FTS.B,

23.95%,

2/06/25

..

35

30

991936216.UG.FTS.B,

23.95%,

2/06/25

..

60

59

991892879.UG.FTS.B,

25.94%,

2/06/25

..

53

53

991733615.UG.FTS.B,

27.95%,

2/06/25

..

1,271

1,290

991690190.UG.FTS.B,

27.99%,

2/06/25

..

2,640

567

991714465.UG.FTS.B,

27.99%,

2/06/25

..

14

14

991759445.UG.FTS.B,

27.99%,

2/06/25

..

282

291

991830443.UG.FTS.B,

27.99%,

2/06/25

..

14

13

991851167.UG.FTS.B,

27.99%,

2/06/25

..

77

78

991691439.UG.FTS.B,

28.98%,

2/06/25

..

1,005

1,008

991691947.UG.FTS.B,

28.98%,

2/06/25

..

1,916

1,958

991699864.UG.FTS.B,

28.98%,

2/06/25

..

2,202

2,271

991699874.UG.FTS.B,

28.98%,

2/06/25

..

15

14

991700105.UG.FTS.B,

28.98%,

2/06/25

..

118

122

991700313.UG.FTS.B,

28.98%,

2/06/25

..

125

126

991700622.UG.FTS.B,

28.98%,

2/06/25

..

212

219

991701200.UG.FTS.B,

28.98%,

2/06/25

..

109

113

991701698.UG.FTS.B,

28.98%,

2/06/25

..

187

188

991702034.UG.FTS.B,

28.98%,

2/06/25

..

–

–

991702178.UG.FTS.B,

28.98%,

2/06/25

..

116

119

991702303.UG.FTS.B,

28.98%,

2/06/25

..

57

56

991703127.UG.FTS.B,

28.98%,

2/06/25

..

599

411

991703634.UG.FTS.B,

28.98%,

2/06/25

..

332

336

991704099.UG.FTS.B,

28.98%,

2/06/25

..

280

71

991705083.UG.FTS.B,

28.98%,

2/06/25

..

125

(4)

991705630.UG.FTS.B,

28.98%,

2/06/25

..

16

16

991705947.UG.FTS.B,

28.98%,

2/06/25

..

47

40

991706049.UG.FTS.B,

28.98%,

2/06/25

..

181

182

991706891.UG.FTS.B,

28.98%,

2/06/25

..

99

102

991707488.UG.FTS.B,

28.98%,

2/06/25

..

367

364

991707490.UG.FTS.B,

28.98%,

2/06/25

..

307

317

991707890.UG.FTS.B,

28.98%,

2/06/25

..

98

12

991708571.UG.FTS.B,

28.98%,

2/06/25

..

275

284

991709000.UG.FTS.B,

28.98%,

2/06/25

..

219

225

991709010.UG.FTS.B,

28.98%,

2/06/25

..

547

561

991709238.UG.FTS.B,

28.98%,

2/06/25

..

190

196

991710098.UG.FTS.B,

28.98%,

2/06/25

..

133

134

991710180.UG.FTS.B,

28.98%,

2/06/25

..

62

61

991710683.UG.FTS.B,

28.98%,

2/06/25

..

10

10

991711651.UG.FTS.B,

28.98%,

2/06/25

..

140

145

991711745.UG.FTS.B,

28.98%,

2/06/25

..

181

186

991712375.UG.FTS.B,

28.98%,

2/06/25

..

268

270

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991712875.UG.FTS.B,

28.98%,

2/06/25

..

$

90

$

93

991713622.UG.FTS.B,

28.98%,

2/06/25

..

291

36

991715031.UG.FTS.B,

28.98%,

2/06/25

..

63

64

991716099.UG.FTS.B,

28.98%,

2/06/25

..

29

28

991716198.UG.FTS.B,

28.98%,

2/06/25

..

47

47

991716238.UG.FTS.B,

28.98%,

2/06/25

..

211

45

991717052.UG.FTS.B,

28.98%,

2/06/25

..

538

555

991718507.UG.FTS.B,

28.98%,

2/06/25

..

257

55

991718999.UG.FTS.B,

28.98%,

2/06/25

..

232

231

991720359.UG.FTS.B,

28.98%,

2/06/25

..

121

124

991724096.UG.FTS.B,

28.98%,

2/06/25

..

203

210

991725784.UG.FTS.B,

28.98%,

2/06/25

..

180

186

991725860.UG.FTS.B,

28.98%,

2/06/25

..

97

100

991726688.UG.FTS.B,

28.98%,

2/06/25

..

106

109

991728916.UG.FTS.B,

28.98%,

2/06/25

..

179

178

991729192.UG.FTS.B,

28.98%,

2/06/25

..

711

733

991729721.UG.FTS.B,

28.98%,

2/06/25

..

430

437

991731064.UG.FTS.B,

28.98%,

2/06/25

..

66

66

991731987.UG.FTS.B,

28.98%,

2/06/25

..

340

342

991732224.UG.FTS.B,

28.98%,

2/06/25

..

260

257

991733686.UG.FTS.B,

28.98%,

2/06/25

..

201

206

991734751.UG.FTS.B,

28.98%,

2/06/25

..

1,114

1,132

991734815.UG.FTS.B,

28.98%,

2/06/25

..

252

260

991735985.UG.FTS.B,

28.98%,

2/06/25

..

1,947

2,008

991736387.UG.FTS.B,

28.98%,

2/06/25

..

112

111

991736995.UG.FTS.B,

28.98%,

2/06/25

..

–

–

991737065.UG.FTS.B,

28.98%,

2/06/25

..

8

8

991737546.UG.FTS.B,

28.98%,

2/06/25

..

502

514

991738225.UG.FTS.B,

28.98%,

2/06/25

..

207

42

991739880.UG.FTS.B,

28.98%,

2/06/25

..

171

177

991740410.UG.FTS.B,

28.98%,

2/06/25

..

–

–

991743323.UG.FTS.B,

28.98%,

2/06/25

..

147

152

991743445.UG.FTS.B,

28.98%,

2/06/25

..

246

30

991745127.UG.FTS.B,

28.98%,

2/06/25

..

6

6

991746697.UG.FTS.B,

28.98%,

2/06/25

..

1,165

1,202

991748713.UG.FTS.B,

28.98%,

2/06/25

..

1,360

1,363

991749171.UG.FTS.B,

28.98%,

2/06/25

..

1,373

1,402

991750190.UG.FTS.B,

28.98%,

2/06/25

..

800

790

991750900.UG.FTS.B,

28.98%,

2/06/25

..

49

40

991751750.UG.FTS.B,

28.98%,

2/06/25

..

242

239

991752424.UG.FTS.B,

28.98%,

2/06/25

..

142

146

991753935.UG.FTS.B,

28.98%,

2/06/25

..

617

629

991755479.UG.FTS.B,

28.98%,

2/06/25

..

356

368

991756671.UG.FTS.B,

28.98%,

2/06/25

..

1,553

330

991756884.UG.FTS.B,

28.98%,

2/06/25

..

302

311

991757545.UG.FTS.B,

28.98%,

2/06/25

..

195

41

991758045.UG.FTS.B,

28.98%,

2/06/25

..

709

732

991760146.UG.FTS.B,

28.98%,

2/06/25

..

5

5

991760751.UG.FTS.B,

28.98%,

2/06/25

..

9

8

991762162.UG.FTS.B,

28.98%,

2/06/25

..

278

285

991763442.UG.FTS.B,

28.98%,

2/06/25

..

31

31

991765700.UG.FTS.B,

28.98%,

2/06/25

..

143

18

991766105.UG.FTS.B,

28.98%,

2/06/25

..

477

491

991766305.UG.FTS.B,

28.98%,

2/06/25

..

465

479

991766721.UG.FTS.B,

28.98%,

2/06/25

..

1,132

1,167

991770800.UG.FTS.B,

28.98%,

2/06/25

..

137

141

991773209.UG.FTS.B,

28.98%,

2/06/25

..

257

264

991773450.UG.FTS.B,

28.98%,

2/06/25

..

562

561

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

144

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991773829.UG.FTS.B,

28.98%,

2/06/25

..

$

106

$

108

991776146.UG.FTS.B,

28.98%,

2/06/25

..

233

240

991777528.UG.FTS.B,

28.98%,

2/06/25

..

1,173

1,210

991779405.UG.FTS.B,

28.98%,

2/06/25

..

121

124

991780600.UG.FTS.B,

28.98%,

2/06/25

..

–

–

991787120.UG.FTS.B,

28.98%,

2/06/25

..

7

7

991787293.UG.FTS.B,

28.98%,

2/06/25

..

135

137

991790950.UG.FTS.B,

28.98%,

2/06/25

..

968

982

991794977.UG.FTS.B,

28.98%,

2/06/25

..

93

95

991795976.UG.FTS.B,

28.98%,

2/06/25

..

114

72

991805892.UG.FTS.B,

28.98%,

2/06/25

..

281

16

991811061.UG.FTS.B,

28.98%,

2/06/25

..

1,365

84

991813823.UG.FTS.B,

28.98%,

2/06/25

..

174

179

991815125.UG.FTS.B,

28.98%,

2/06/25

..

1,326

1,323

991815323.UG.FTS.B,

28.98%,

2/06/25

..

105

108

991815975.UG.FTS.B,

28.98%,

2/06/25

..

499

514

991817047.UG.FTS.B,

28.98%,

2/06/25

..

783

807

991817713.UG.FTS.B,

28.98%,

2/06/25

..

827

847

991820156.UG.FTS.B,

28.98%,

2/06/25

..

870

897

991823294.UG.FTS.B,

28.98%,

2/06/25

..

297

303

991823324.UG.FTS.B,

28.98%,

2/06/25

..

1,509

1,517

991826493.UG.FTS.B,

28.98%,

2/06/25

..

112

114

991826871.UG.FTS.B,

28.98%,

2/06/25

..

26

26

991832318.UG.FTS.B,

28.98%,

2/06/25

..

111

114

991832752.UG.FTS.B,

28.98%,

2/06/25

..

636

656

991834196.UG.FTS.B,

28.98%,

2/06/25

..

172

176

991836050.UG.FTS.B,

28.98%,

2/06/25

..

254

262

991836125.UG.FTS.B,

28.98%,

2/06/25

..

809

835

991837625.UG.FTS.B,

28.98%,

2/06/25

..

159

159

991842664.UG.FTS.B,

28.98%,

2/06/25

..

166

171

991850883.UG.FTS.B,

28.98%,

2/06/25

..

422

435

991851940.UG.FTS.B,

28.98%,

2/06/25

..

22

22

991852569.UG.FTS.B,

28.98%,

2/06/25

..

82

83

991854897.UG.FTS.B,

28.98%,

2/06/25

..

628

135

991855239.UG.FTS.B,

28.98%,

2/06/25

..

684

158

991857509.UG.FTS.B,

28.98%,

2/06/25

..

200

(10)

991861556.UG.FTS.B,

28.98%,

2/06/25

..

181

184

991862138.UG.FTS.B,

28.98%,

2/06/25

..

5

5

991862866.UG.FTS.B,

28.98%,

2/06/25

..

3,355

3,407

991863321.UG.FTS.B,

28.98%,

2/06/25

..

254

262

991867036.UG.FTS.B,

28.98%,

2/06/25

..

57

57

991867184.UG.FTS.B,

28.98%,

2/06/25

..

120

124

991868227.UG.FTS.B,

28.98%,

2/06/25

..

727

750

991868577.UG.FTS.B,

28.98%,

2/06/25

..

235

243

991871855.UG.FTS.B,

28.98%,

2/06/25

..

117

120

991878519.UG.FTS.B,

28.98%,

2/06/25

..

68

70

991893183.UG.FTS.B,

28.98%,

2/06/25

..

21

9

991896380.UG.FTS.B,

28.98%,

2/06/25

..

6,320

6,381

991908332.UG.FTS.B,

28.98%,

2/06/25

..

41

41

991910683.UG.FTS.B,

28.98%,

2/06/25

..

76

78

991912584.UG.FTS.B,

28.98%,

2/06/25

..

421

427

991914850.UG.FTS.B,

28.98%,

2/06/25

..

235

28

991917174.UG.FTS.B,

28.98%,

2/06/25

..

210

214

991917185.UG.FTS.B,

28.98%,

2/06/25

..

194

196

991919417.UG.FTS.B,

28.98%,

2/06/25

..

140

141

991926157.UG.FTS.B,

28.98%,

2/06/25

..

227

230

991930551.UG.FTS.B,

28.98%,

2/06/25

..

378

383

991934063.UG.FTS.B,

28.98%,

2/06/25

..

87

90

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991704035.UG.FTS.B,

29.45%,

2/06/25

..

$

278

$

283

991848757.UG.FTS.B,

29.45%,

2/06/25

..

2,771

2,825

991712510.UG.FTS.B,

29.47%,

2/06/25

..

304

314

991830702.UG.FTS.B,

29.48%,

2/06/25

..

154

159

991690486.UG.FTS.B,

29.49%,

2/06/25

..

1,249

313

991690939.UG.FTS.B,

29.49%,

2/06/25

..

1,288

1,330

991699172.UG.FTS.B,

29.49%,

2/06/25

..

675

85

991699796.UG.FTS.B,

29.49%,

2/06/25

..

113

78

991700095.UG.FTS.B,

29.49%,

2/06/25

..

219

210

991700916.UG.FTS.B,

29.49%,

2/06/25

..

1,395

1,439

991700980.UG.FTS.B,

29.49%,

2/06/25

..

539

541

991701070.UG.FTS.B,

29.49%,

2/06/25

..

97

100

991701366.UG.FTS.B,

29.49%,

2/06/25

..

660

680

991701414.UG.FTS.B,

29.49%,

2/06/25

..

847

874

991702235.UG.FTS.B,

29.49%,

2/06/25

..

46

47

991702911.UG.FTS.B,

29.49%,

2/06/25

..

438

26

991703608.UG.FTS.B,

29.49%,

2/06/25

..

476

484

991704096.UG.FTS.B,

29.49%,

2/06/25

..

260

264

991704419.UG.FTS.B,

29.49%,

2/06/25

..

290

300

991704540.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991704708.UG.FTS.B,

29.49%,

2/06/25

..

302

311

991705336.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991705352.UG.FTS.B,

29.49%,

2/06/25

..

130

134

991705729.UG.FTS.B,

29.49%,

2/06/25

..

190

(9)

991706683.UG.FTS.B,

29.49%,

2/06/25

..

97

98

991707371.UG.FTS.B,

29.49%,

2/06/25

..

11

11

991707381.UG.FTS.B,

29.49%,

2/06/25

..

301

304

991707856.UG.FTS.B,

29.49%,

2/06/25

..

223

222

991708109.UG.FTS.B,

29.49%,

2/06/25

..

180

186

991708283.UG.FTS.B,

29.49%,

2/06/25

..

101

104

991708927.UG.FTS.B,

29.49%,

2/06/25

..

211

215

991709014.UG.FTS.B,

29.49%,

2/06/25

..

212

15

991709403.UG.FTS.B,

29.49%,

2/06/25

..

263

271

991709656.UG.FTS.B,

29.49%,

2/06/25

..

633

647

991711919.UG.FTS.B,

29.49%,

2/06/25

..

190

23

991712333.UG.FTS.B,

29.49%,

2/06/25

..

148

147

991712745.UG.FTS.B,

29.49%,

2/06/25

..

132

136

991713234.UG.FTS.B,

29.49%,

2/06/25

..

32

2

991713273.UG.FTS.B,

29.49%,

2/06/25

..

1,827

1,839

991714038.UG.FTS.B,

29.49%,

2/06/25

..

476

491

991714501.UG.FTS.B,

29.49%,

2/06/25

..

5

5

991715228.UG.FTS.B,

29.49%,

2/06/25

..

224

156

991715596.UG.FTS.B,

29.49%,

2/06/25

..

1,318

1,335

991716208.UG.FTS.B,

29.49%,

2/06/25

..

341

21

991717099.UG.FTS.B,

29.49%,

2/06/25

..

71

72

991717494.UG.FTS.B,

29.49%,

2/06/25

..

58

58

991718002.UG.FTS.B,

29.49%,

2/06/25

..

172

177

991719310.UG.FTS.B,

29.49%,

2/06/25

..

522

36

991719419.UG.FTS.B,

29.49%,

2/06/25

..

343

354

991720196.UG.FTS.B,

29.49%,

2/06/25

..

138

9

991721139.UG.FTS.B,

29.49%,

2/06/25

..

257

265

991721483.UG.FTS.B,

29.49%,

2/06/25

..

79

81

991721909.UG.FTS.B,

29.49%,

2/06/25

..

95

13

991723599.UG.FTS.B,

29.49%,

2/06/25

..

103

106

991724717.UG.FTS.B,

29.49%,

2/06/25

..

213

13

991724986.UG.FTS.B,

29.49%,

2/06/25

..

36

36

991725507.UG.FTS.B,

29.49%,

2/06/25

..

331

341

991725736.UG.FTS.B,

29.49%,

2/06/25

..

95

98

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

145

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991725769.UG.FTS.B,

29.49%,

2/06/25

..

$

30

$

30

991728380.UG.FTS.B,

29.49%,

2/06/25

..

237

244

991728473.UG.FTS.B,

29.49%,

2/06/25

..

1,374

299

991729497.UG.FTS.B,

29.49%,

2/06/25

..

52

(2)

991729831.UG.FTS.B,

29.49%,

2/06/25

..

244

246

991730113.UG.FTS.B,

29.49%,

2/06/25

..

252

259

991730563.UG.FTS.B,

29.49%,

2/06/25

..

429

442

991731325.UG.FTS.B,

29.49%,

2/06/25

..

655

145

991731574.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991734435.UG.FTS.B,

29.49%,

2/06/25

..

140

145

991735284.UG.FTS.B,

29.49%,

2/06/25

..

196

202

991735384.UG.FTS.B,

29.49%,

2/06/25

..

390

400

991737002.UG.FTS.B,

29.49%,

2/06/25

..

82

84

991737780.UG.FTS.B,

29.49%,

2/06/25

..

79

78

991738035.UG.FTS.B,

29.49%,

2/06/25

..

106

110

991738990.UG.FTS.B,

29.49%,

2/06/25

..

778

755

991739099.UG.FTS.B,

29.49%,

2/06/25

..

89

14

991742896.UG.FTS.B,

29.49%,

2/06/25

..

457

472

991743392.UG.FTS.B,

29.49%,

2/06/25

..

199

203

991743460.UG.FTS.B,

29.49%,

2/06/25

..

35

35

991744630.UG.FTS.B,

29.49%,

2/06/25

..

68

69

991746112.UG.FTS.B,

29.49%,

2/06/25

..

614

633

991746825.UG.FTS.B,

29.49%,

2/06/25

..

117

8

991746952.UG.FTS.B,

29.49%,

2/06/25

..

346

355

991747607.UG.FTS.B,

29.49%,

2/06/25

..

177

182

991749942.UG.FTS.B,

29.49%,

2/06/25

..

427

441

991752731.UG.FTS.B,

29.49%,

2/06/25

..

104

108

991753304.UG.FTS.B,

29.49%,

2/06/25

..

164

162

991753936.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991754744.UG.FTS.B,

29.49%,

2/06/25

..

263

57

991755020.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991755326.UG.FTS.B,

29.49%,

2/06/25

..

67

68

991755928.UG.FTS.B,

29.49%,

2/06/25

..

250

256

991757142.UG.FTS.B,

29.49%,

2/06/25

..

208

205

991757240.UG.FTS.B,

29.49%,

2/06/25

..

21

20

991757332.UG.FTS.B,

29.49%,

2/06/25

..

96

94

991759741.UG.FTS.B,

29.49%,

2/06/25

..

326

334

991764353.UG.FTS.B,

29.49%,

2/06/25

..

43

43

991765175.UG.FTS.B,

29.49%,

2/06/25

..

191

24

991766972.UG.FTS.B,

29.49%,

2/06/25

..

89

91

991766995.UG.FTS.B,

29.49%,

2/06/25

..

50

49

991767120.UG.FTS.B,

29.49%,

2/06/25

..

98

96

991767625.UG.FTS.B,

29.49%,

2/06/25

..

46

15

991767728.UG.FTS.B,

29.49%,

2/06/25

..

196

202

991769688.UG.FTS.B,

29.49%,

2/06/25

..

384

396

991769928.UG.FTS.B,

29.49%,

2/06/25

..

353

358

991771068.UG.FTS.B,

29.49%,

2/06/25

..

123

127

991772651.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991774875.UG.FTS.B,

29.49%,

2/06/25

..

79

81

991775565.UG.FTS.B,

29.49%,

2/06/25

..

279

(13)

991775752.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991783769.UG.FTS.B,

29.49%,

2/06/25

..

6

6

991784966.UG.FTS.B,

29.49%,

2/06/25

..

49

49

991789710.UG.FTS.B,

29.49%,

2/06/25

..

372

368

991791088.UG.FTS.B,

29.49%,

2/06/25

..

54

16

991791167.UG.FTS.B,

29.49%,

2/06/25

..

92

21

991796673.UG.FTS.B,

29.49%,

2/06/25

..

311

312

991797405.UG.FTS.B,

29.49%,

2/06/25

..

124

128

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991798596.UG.FTS.B,

29.49%,

2/06/25

..

$

185

$

188

991800849.UG.FTS.B,

29.49%,

2/06/25

..

84

20

991801191.UG.FTS.B,

29.49%,

2/06/25

..

1,162

1,199

991803989.UG.FTS.B,

29.49%,

2/06/25

..

311

308

991804605.UG.FTS.B,

29.49%,

2/06/25

..

53

52

991806859.UG.FTS.B,

29.49%,

2/06/25

..

40

40

991812212.UG.FTS.B,

29.49%,

2/06/25

..

161

160

991812264.UG.FTS.B,

29.49%,

2/06/25

..

49

48

991812301.UG.FTS.B,

29.49%,

2/06/25

..

101

71

991812574.UG.FTS.B,

29.49%,

2/06/25

..

131

135

991815396.UG.FTS.B,

29.49%,

2/06/25

..

150

155

991815674.UG.FTS.B,

29.49%,

2/06/25

..

441

441

991816101.UG.FTS.B,

29.49%,

2/06/25

..

191

197

991818985.UG.FTS.B,

29.49%,

2/06/25

..

71

72

991820441.UG.FTS.B,

29.49%,

2/06/25

..

83

82

991821554.UG.FTS.B,

29.49%,

2/06/25

..

120

123

991825654.UG.FTS.B,

29.49%,

2/06/25

..

203

209

991826190.UG.FTS.B,

29.49%,

2/06/25

..

92

93

991826917.UG.FTS.B,

29.49%,

2/06/25

..

514

528

991830903.UG.FTS.B,

29.49%,

2/06/25

..

19

18

991834402.UG.FTS.B,

29.49%,

2/06/25

..

113

115

991834986.UG.FTS.B,

29.49%,

2/06/25

..

425

438

991835940.UG.FTS.B,

29.49%,

2/06/25

..

172

177

991836161.UG.FTS.B,

29.49%,

2/06/25

..

125

86

991836634.UG.FTS.B,

29.49%,

2/06/25

..

241

244

991838708.UG.FTS.B,

29.49%,

2/06/25

..

70

18

991844028.UG.FTS.B,

29.49%,

2/06/25

..

2,276

2,324

991848072.UG.FTS.B,

29.49%,

2/06/25

..

161

166

991848970.UG.FTS.B,

29.49%,

2/06/25

..

228

12

991849574.UG.FTS.B,

29.49%,

2/06/25

..

17

17

991850107.UG.FTS.B,

29.49%,

2/06/25

..

57

57

991852176.UG.FTS.B,

29.49%,

2/06/25

..

127

131

991854157.UG.FTS.B,

29.49%,

2/06/25

..

424

437

991855511.UG.FTS.B,

29.49%,

2/06/25

..

62

63

991860077.UG.FTS.B,

29.49%,

2/06/25

..

132

132

991862203.UG.FTS.B,

29.49%,

2/06/25

..

57

56

991862795.UG.FTS.B,

29.49%,

2/06/25

..

1,271

1,297

991863987.UG.FTS.B,

29.49%,

2/06/25

..

878

660

991865117.UG.FTS.B,

29.49%,

2/06/25

..

381

392

991865504.UG.FTS.B,

29.49%,

2/06/25

..

39

39

991865882.UG.FTS.B,

29.49%,

2/06/25

..

17

17

991869807.UG.FTS.B,

29.49%,

2/06/25

..

150

154

991869815.UG.FTS.B,

29.49%,

2/06/25

..

5

5

991870451.UG.FTS.B,

29.49%,

2/06/25

..

131

28

991871207.UG.FTS.B,

29.49%,

2/06/25

..

61

60

991873395.UG.FTS.B,

29.49%,

2/06/25

..

60

59

991873746.UG.FTS.B,

29.49%,

2/06/25

..

72

73

991874981.UG.FTS.B,

29.49%,

2/06/25

..

341

20

991875332.UG.FTS.B,

29.49%,

2/06/25

..

11

11

991877935.UG.FTS.B,

29.49%,

2/06/25

..

53

16

991886716.UG.FTS.B,

29.49%,

2/06/25

..

121

123

991887900.UG.FTS.B,

29.49%,

2/06/25

..

31

31

991896068.UG.FTS.B,

29.49%,

2/06/25

..

77

79

991899452.UG.FTS.B,

29.49%,

2/06/25

..

104

7

991904775.UG.FTS.B,

29.49%,

2/06/25

..

94

97

991907617.UG.FTS.B,

29.49%,

2/06/25

..

72

10

991908329.UG.FTS.B,

29.49%,

2/06/25

..

292

187

991908415.UG.FTS.B,

29.49%,

2/06/25

..

77

79

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

146

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991914065.UG.FTS.B,

29.49%,

2/06/25

..

$

165

$

167

991915931.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991919465.UG.FTS.B,

29.49%,

2/06/25

..

56

57

991921869.UG.FTS.B,

29.49%,

2/06/25

..

20

20

991922466.UG.FTS.B,

29.49%,

2/06/25

..

84

85

991928851.UG.FTS.B,

29.49%,

2/06/25

..

2,107

2,134

991930716.UG.FTS.B,

29.49%,

2/06/25

..

–

–

991933771.UG.FTS.B,

29.49%,

2/06/25

..

250

252

991934546.UG.FTS.B,

29.49%,

2/06/25

..

141

140

991938491.UG.FTS.B,

29.49%,

2/06/25

..

589

597

991705076.UG.FTS.B,

Zero

Cpn,

2/07/25

.

564

39

991707116.UG.FTS.B,

Zero

Cpn,

2/07/25

.

150

10

991709884.UG.FTS.B,

Zero

Cpn,

2/07/25

.

918

64

991718305.UG.FTS.B,

Zero

Cpn,

2/07/25

.

198

14

991720106.UG.FTS.B,

Zero

Cpn,

2/07/25

.

623

43

991721816.UG.FTS.B,

Zero

Cpn,

2/07/25

.

330

23

991734566.UG.FTS.B,

Zero

Cpn,

2/07/25

.

175

12

991741747.UG.FTS.B,

Zero

Cpn,

2/07/25

.

694

48

991792045.UG.FTS.B,

Zero

Cpn,

2/07/25

.

948

65

991831480.UG.FTS.B,

Zero

Cpn,

2/07/25

.

478

33

991924425.UG.FTS.B,

Zero

Cpn,

2/07/25

.

174

12

991736213.UG.FTS.B,

14.98%,

2/07/25

..

419

424

991738550.UG.FTS.B,

17.99%,

2/07/25

..

306

306

991860327.UG.FTS.B,

17.99%,

2/07/25

..

1,019

1,028

991875162.UG.FTS.B,

17.99%,

2/07/25

..

202

203

991884424.UG.FTS.B,

17.99%,

2/07/25

..

352

354

991933227.UG.FTS.B,

17.99%,

2/07/25

..

70

71

991827281.UG.FTS.B,

18.97%,

2/07/25

..

123

124

991905123.UG.FTS.B,

18.97%,

2/07/25

..

140

141

991708830.UG.FTS.B,

19.21%,

2/07/25

..

563

563

991727309.UG.FTS.B,

19.21%,

2/07/25

..

518

514

991748413.UG.FTS.B,

19.21%,

2/07/25

..

610

610

991783290.UG.FTS.B,

19.21%,

2/07/25

..

326

330

991818350.UG.FTS.B,

19.21%,

2/07/25

..

6

6

991874943.UG.FTS.B,

19.21%,

2/07/25

..

248

249

991924115.UG.FTS.B,

19.21%,

2/07/25

..

102

104

991834369.UG.FTS.B,

19.8%,

2/07/25

...

414

420

991733738.UG.FTS.B,

19.99%,

2/07/25

..

55

55

991740094.UG.FTS.B,

19.99%,

2/07/25

..

1

1

991744988.UG.FTS.B,

19.99%,

2/07/25

..

455

458

991783186.UG.FTS.B,

19.99%,

2/07/25

..

–

–

991808111.UG.FTS.B,

19.99%,

2/07/25

..

44

45

991810153.UG.FTS.B,

19.99%,

2/07/25

..

166

171

991821055.UG.FTS.B,

19.99%,

2/07/25

..

170

(1)

991856601.UG.FTS.B,

19.99%,

2/07/25

..

378

389

991902788.UG.FTS.B,

19.99%,

2/07/25

..

19

19

991929262.UG.FTS.B,

19.99%,

2/07/25

..

120

121

991929426.UG.FTS.B,

19.99%,

2/07/25

..

–

–

991929766.UG.FTS.B,

19.99%,

2/07/25

..

178

181

991770272.UG.FTS.B,

20.46%,

2/07/25

..

582

590

991868003.UG.FTS.B,

20.46%,

2/07/25

..

284

288

991714732.UG.FTS.B,

21.46%,

2/07/25

..

41

41

991758807.UG.FTS.B,

21.46%,

2/07/25

..

125

81

991922854.UG.FTS.B,

21.46%,

2/07/25

..

61

61

991711288.UG.FTS.B,

21.98%,

2/07/25

..

194

196

991715117.UG.FTS.B,

21.98%,

2/07/25

..

616

622

991724052.UG.FTS.B,

21.98%,

2/07/25

..

485

488

991794656.UG.FTS.B,

21.98%,

2/07/25

..

304

302

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991802598.UG.FTS.B,

21.98%,

2/07/25

..

$

2,199

$

2,229

991843735.UG.FTS.B,

21.98%,

2/07/25

..

500

505

991736467.UG.FTS.B,

22.97%,

2/07/25

..

411

415

991772252.UG.FTS.B,

23.95%,

2/07/25

..

1,683

1,694

991762975.UG.FTS.B,

25.95%,

2/07/25

..

429

431

991772013.UG.FTS.B,

26.94%,

2/07/25

..

254

255

991709714.UG.FTS.B,

27.99%,

2/07/25

..

82

84

991748191.UG.FTS.B,

27.99%,

2/07/25

..

230

238

991785599.UG.FTS.B,

27.99%,

2/07/25

..

541

536

991797259.UG.FTS.B,

27.99%,

2/07/25

..

8

8

991800353.UG.FTS.B,

27.99%,

2/07/25

..

98

101

991828120.UG.FTS.B,

27.99%,

2/07/25

..

27

27

991880949.UG.FTS.B,

27.99%,

2/07/25

..

80

82

991901076.UG.FTS.B,

27.99%,

2/07/25

..

373

371

991697103.UG.FTS.B,

28.98%,

2/07/25

..

448

457

991697441.UG.FTS.B,

28.98%,

2/07/25

..

167

163

991705668.UG.FTS.B,

28.98%,

2/07/25

..

22

22

991705793.UG.FTS.B,

28.98%,

2/07/25

..

520

524

991705973.UG.FTS.B,

28.98%,

2/07/25

..

205

212

991706644.UG.FTS.B,

28.98%,

2/07/25

..

19

19

991706813.UG.FTS.B,

28.98%,

2/07/25

..

468

482

991707358.UG.FTS.B,

28.98%,

2/07/25

..

122

126

991707661.UG.FTS.B,

28.98%,

2/07/25

..

135

135

991708677.UG.FTS.B,

28.98%,

2/07/25

..

967

977

991708937.UG.FTS.B,

28.98%,

2/07/25

..

222

226

991708989.UG.FTS.B,

28.98%,

2/07/25

..

278

276

991709240.UG.FTS.B,

28.98%,

2/07/25

..

53

53

991710256.UG.FTS.B,

28.98%,

2/07/25

..

68

51

991710379.UG.FTS.B,

28.98%,

2/07/25

..

276

285

991710718.UG.FTS.B,

28.98%,

2/07/25

..

125

128

991710868.UG.FTS.B,

28.98%,

2/07/25

..

171

173

991712303.UG.FTS.B,

28.98%,

2/07/25

..

186

192

991712542.UG.FTS.B,

28.98%,

2/07/25

..

88

90

991712781.UG.FTS.B,

28.98%,

2/07/25

..

165

171

991712922.UG.FTS.B,

28.98%,

2/07/25

..

140

144

991712958.UG.FTS.B,

28.98%,

2/07/25

..

204

44

991716650.UG.FTS.B,

28.98%,

2/07/25

..

83

85

991717771.UG.FTS.B,

28.98%,

2/07/25

..

306

311

991720672.UG.FTS.B,

28.98%,

2/07/25

..

4,288

4,425

991722674.UG.FTS.B,

28.98%,

2/07/25

..

149

32

991722877.UG.FTS.B,

28.98%,

2/07/25

..

172

177

991724076.UG.FTS.B,

28.98%,

2/07/25

..

103

106

991724273.UG.FTS.B,

28.98%,

2/07/25

..

1,414

1,457

991724529.UG.FTS.B,

28.98%,

2/07/25

..

1,601

1,651

991725039.UG.FTS.B,

28.98%,

2/07/25

..

374

46

991727635.UG.FTS.B,

28.98%,

2/07/25

..

271

280

991727947.UG.FTS.B,

28.98%,

2/07/25

..

498

(23)

991728955.UG.FTS.B,

28.98%,

2/07/25

..

379

381

991731435.UG.FTS.B,

28.98%,

2/07/25

..

214

221

991733369.UG.FTS.B,

28.98%,

2/07/25

..

26

25

991735485.UG.FTS.B,

28.98%,

2/07/25

..

154

159

991739386.UG.FTS.B,

28.98%,

2/07/25

..

345

354

991740286.UG.FTS.B,

28.98%,

2/07/25

..

856

883

991740991.UG.FTS.B,

28.98%,

2/07/25

..

646

654

991743968.UG.FTS.B,

28.98%,

2/07/25

..

489

505

991744414.UG.FTS.B,

28.98%,

2/07/25

..

159

164

991747615.UG.FTS.B,

28.98%,

2/07/25

..

599

618

991747846.UG.FTS.B,

28.98%,

2/07/25

..

36

36

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

147

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991751480.UG.FTS.B,

28.98%,

2/07/25

..

$

72

$

73

991753200.UG.FTS.B,

28.98%,

2/07/25

..

21

21

991755398.UG.FTS.B,

28.98%,

2/07/25

..

115

119

991755903.UG.FTS.B,

28.98%,

2/07/25

..

220

226

991755938.UG.FTS.B,

28.98%,

2/07/25

..

343

351

991757521.UG.FTS.B,

28.98%,

2/07/25

..

20

20

991758513.UG.FTS.B,

28.98%,

2/07/25

..

556

68

991760350.UG.FTS.B,

28.98%,

2/07/25

..

314

313

991762771.UG.FTS.B,

28.98%,

2/07/25

..

44

44

991764432.UG.FTS.B,

28.98%,

2/07/25

..

78

58

991765812.UG.FTS.B,

28.98%,

2/07/25

..

7

7

991771163.UG.FTS.B,

28.98%,

2/07/25

..

5

5

991772287.UG.FTS.B,

28.98%,

2/07/25

..

427

440

991773314.UG.FTS.B,

28.98%,

2/07/25

..

658

660

991774768.UG.FTS.B,

28.98%,

2/07/25

..

2,510

2,561

991782506.UG.FTS.B,

28.98%,

2/07/25

..

4,265

4,399

991783617.UG.FTS.B,

28.98%,

2/07/25

..

366

378

991784791.UG.FTS.B,

28.98%,

2/07/25

..

299

308

991792456.UG.FTS.B,

28.98%,

2/07/25

..

67

68

991793298.UG.FTS.B,

28.98%,

2/07/25

..

135

28

991794634.UG.FTS.B,

28.98%,

2/07/25

..

1,597

1,647

991795969.UG.FTS.B,

28.98%,

2/07/25

..

11

11

991796956.UG.FTS.B,

28.98%,

2/07/25

..

111

114

991799326.UG.FTS.B,

28.98%,

2/07/25

..

629

644

991799442.UG.FTS.B,

28.98%,

2/07/25

..

1,076

1,098

991800973.UG.FTS.B,

28.98%,

2/07/25

..

149

147

991801184.UG.FTS.B,

28.98%,

2/07/25

..

2,386

2,450

991801935.UG.FTS.B,

28.98%,

2/07/25

..

4,734

578

991803039.UG.FTS.B,

28.98%,

2/07/25

..

823

848

991803197.UG.FTS.B,

28.98%,

2/07/25

..

9

9

991805595.UG.FTS.B,

28.98%,

2/07/25

..

74

76

991806653.UG.FTS.B,

28.98%,

2/07/25

..

274

274

991807039.UG.FTS.B,

28.98%,

2/07/25

..

342

351

991807123.UG.FTS.B,

28.98%,

2/07/25

..

553

542

991809459.UG.FTS.B,

28.98%,

2/07/25

..

71

73

991810591.UG.FTS.B,

28.98%,

2/07/25

..

104

104

991811191.UG.FTS.B,

28.98%,

2/07/25

..

1,689

1,643

991814223.UG.FTS.B,

28.98%,

2/07/25

..

154

158

991818819.UG.FTS.B,

28.98%,

2/07/25

..

18

18

991823342.UG.FTS.B,

28.98%,

2/07/25

..

408

420

991830675.UG.FTS.B,

28.98%,

2/07/25

..

195

201

991835648.UG.FTS.B,

28.98%,

2/07/25

..

170

175

991836592.UG.FTS.B,

28.98%,

2/07/25

..

1,339

1,332

991838148.UG.FTS.B,

28.98%,

2/07/25

..

794

806

991838996.UG.FTS.B,

28.98%,

2/07/25

..

212

210

991840095.UG.FTS.B,

28.98%,

2/07/25

..

67

68

991843451.UG.FTS.B,

28.98%,

2/07/25

..

48

49

991847936.UG.FTS.B,

28.98%,

2/07/25

..

31

31

991849419.UG.FTS.B,

28.98%,

2/07/25

..

521

537

991852115.UG.FTS.B,

28.98%,

2/07/25

..

37

36

991852363.UG.FTS.B,

28.98%,

2/07/25

..

85

87

991854042.UG.FTS.B,

28.98%,

2/07/25

..

211

217

991854543.UG.FTS.B,

28.98%,

2/07/25

..

185

190

991863331.UG.FTS.B,

28.98%,

2/07/25

..

353

(16)

991864821.UG.FTS.B,

28.98%,

2/07/25

..

2

2

991875987.UG.FTS.B,

28.98%,

2/07/25

..

353

357

991876954.UG.FTS.B,

28.98%,

2/07/25

..

26

26

991882872.UG.FTS.B,

28.98%,

2/07/25

..

321

326

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991884000.UG.FTS.B,

28.98%,

2/07/25

..

$

1,086

$

1,064

991891982.UG.FTS.B,

28.98%,

2/07/25

..

8

8

991892302.UG.FTS.B,

28.98%,

2/07/25

..

75

76

991897778.UG.FTS.B,

28.98%,

2/07/25

..

561

358

991905767.UG.FTS.B,

28.98%,

2/07/25

..

214

218

991907273.UG.FTS.B,

28.98%,

2/07/25

..

422

429

991912825.UG.FTS.B,

28.98%,

2/07/25

..

–

–

991917980.UG.FTS.B,

28.98%,

2/07/25

..

115

8

991920069.UG.FTS.B,

28.98%,

2/07/25

..

144

147

991922521.UG.FTS.B,

28.98%,

2/07/25

..

9

9

991922608.UG.FTS.B,

28.98%,

2/07/25

..

261

260

991927729.UG.FTS.B,

28.98%,

2/07/25

..

842

856

991935487.UG.FTS.B,

28.98%,

2/07/25

..

124

126

991937488.UG.FTS.B,

28.98%,

2/07/25

..

737

737

991727371.UG.FTS.B,

29.46%,

2/07/25

..

137

141

991705149.UG.FTS.B,

29.47%,

2/07/25

..

22

1

991872197.UG.FTS.B,

29.47%,

2/07/25

..

167

11

991709575.UG.FTS.B,

29.48%,

2/07/25

..

302

312

991745671.UG.FTS.B,

29.48%,

2/07/25

..

41

41

991693038.UG.FTS.B,

29.49%,

2/07/25

..

2,276

2,340

991695755.UG.FTS.B,

29.49%,

2/07/25

..

187

189

991705451.UG.FTS.B,

29.49%,

2/07/25

..

301

300

991705974.UG.FTS.B,

29.49%,

2/07/25

..

749

744

991705983.UG.FTS.B,

29.49%,

2/07/25

..

139

143

991706407.UG.FTS.B,

29.49%,

2/07/25

..

306

214

991707049.UG.FTS.B,

29.49%,

2/07/25

..

199

205

991707186.UG.FTS.B,

29.49%,

2/07/25

..

334

336

991707394.UG.FTS.B,

29.49%,

2/07/25

..

712

523

991707574.UG.FTS.B,

29.49%,

2/07/25

..

126

124

991708039.UG.FTS.B,

29.49%,

2/07/25

..

446

461

991708832.UG.FTS.B,

29.49%,

2/07/25

..

152

19

991709327.UG.FTS.B,

29.49%,

2/07/25

..

385

24

991709591.UG.FTS.B,

29.49%,

2/07/25

..

36

13

991709608.UG.FTS.B,

29.49%,

2/07/25

..

275

277

991709721.UG.FTS.B,

29.49%,

2/07/25

..

102

(4)

991709722.UG.FTS.B,

29.49%,

2/07/25

..

623

629

991710141.UG.FTS.B,

29.49%,

2/07/25

..

46

46

991710253.UG.FTS.B,

29.49%,

2/07/25

..

41

41

991710655.UG.FTS.B,

29.49%,

2/07/25

..

1,795

379

991710674.UG.FTS.B,

29.49%,

2/07/25

..

64

52

991710835.UG.FTS.B,

29.49%,

2/07/25

..

187

191

991711259.UG.FTS.B,

29.49%,

2/07/25

..

174

180

991711386.UG.FTS.B,

29.49%,

2/07/25

..

153

34

991712449.UG.FTS.B,

29.49%,

2/07/25

..

180

185

991712587.UG.FTS.B,

29.49%,

2/07/25

..

606

613

991712867.UG.FTS.B,

29.49%,

2/07/25

..

319

309

991712892.UG.FTS.B,

29.49%,

2/07/25

..

545

537

991713180.UG.FTS.B,

29.49%,

2/07/25

..

1,888

1,940

991713198.UG.FTS.B,

29.49%,

2/07/25

..

64

65

991713851.UG.FTS.B,

29.49%,

2/07/25

..

110

112

991714825.UG.FTS.B,

29.49%,

2/07/25

..

81

82

991715086.UG.FTS.B,

29.49%,

2/07/25

..

144

148

991716025.UG.FTS.B,

29.49%,

2/07/25

..

517

65

991716358.UG.FTS.B,

29.49%,

2/07/25

..

122

120

991717217.UG.FTS.B,

29.49%,

2/07/25

..

45

44

991717280.UG.FTS.B,

29.49%,

2/07/25

..

239

(6)

991717543.UG.FTS.B,

29.49%,

2/07/25

..

179

184

991717657.UG.FTS.B,

29.49%,

2/07/25

..

2,040

441

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

148

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991718167.UG.FTS.B,

29.49%,

2/07/25

..

$

129

$

133

991718456.UG.FTS.B,

29.49%,

2/07/25

..

366

81

991719583.UG.FTS.B,

29.49%,

2/07/25

..

687

709

991720150.UG.FTS.B,

29.49%,

2/07/25

..

486

486

991720898.UG.FTS.B,

29.49%,

2/07/25

..

236

236

991721040.UG.FTS.B,

29.49%,

2/07/25

..

129

133

991721496.UG.FTS.B,

29.49%,

2/07/25

..

116

120

991723502.UG.FTS.B,

29.49%,

2/07/25

..

58

8

991723604.UG.FTS.B,

29.49%,

2/07/25

..

368

370

991726856.UG.FTS.B,

29.49%,

2/07/25

..

65

66

991728336.UG.FTS.B,

29.49%,

2/07/25

..

78

79

991728768.UG.FTS.B,

29.49%,

2/07/25

..

25

25

991728920.UG.FTS.B,

29.49%,

2/07/25

..

75

(3)

991729210.UG.FTS.B,

29.49%,

2/07/25

..

793

811

991729366.UG.FTS.B,

29.49%,

2/07/25

..

66

67

991729425.UG.FTS.B,

29.49%,

2/07/25

..

24

23

991729445.UG.FTS.B,

29.49%,

2/07/25

..

94

97

991729754.UG.FTS.B,

29.49%,

2/07/25

..

1,218

1,233

991729898.UG.FTS.B,

29.49%,

2/07/25

..

90

92

991730072.UG.FTS.B,

29.49%,

2/07/25

..

1,271

1,310

991730120.UG.FTS.B,

29.49%,

2/07/25

..

11

11

991730418.UG.FTS.B,

29.49%,

2/07/25

..

1,479

1,520

991731024.UG.FTS.B,

29.49%,

2/07/25

..

151

10

991732638.UG.FTS.B,

29.49%,

2/07/25

..

15

15

991733135.UG.FTS.B,

29.49%,

2/07/25

..

3,723

3,800

991733378.UG.FTS.B,

29.49%,

2/07/25

..

756

764

991733725.UG.FTS.B,

29.49%,

2/07/25

..

40

40

991734115.UG.FTS.B,

29.49%,

2/07/25

..

183

40

991734242.UG.FTS.B,

29.49%,

2/07/25

..

240

244

991734487.UG.FTS.B,

29.49%,

2/07/25

..

313

322

991734975.UG.FTS.B,

29.49%,

2/07/25

..

92

94

991735394.UG.FTS.B,

29.49%,

2/07/25

..

18

18

991735546.UG.FTS.B,

29.49%,

2/07/25

..

11

6

991735633.UG.FTS.B,

29.49%,

2/07/25

..

7

7

991735751.UG.FTS.B,

29.49%,

2/07/25

..

141

146

991735777.UG.FTS.B,

29.49%,

2/07/25

..

54

54

991735915.UG.FTS.B,

29.49%,

2/07/25

..

327

337

991736815.UG.FTS.B,

29.49%,

2/07/25

..

1,389

1,427

991736857.UG.FTS.B,

29.49%,

2/07/25

..

1,443

1,488

991737147.UG.FTS.B,

29.49%,

2/07/25

..

92

94

991737666.UG.FTS.B,

29.49%,

2/07/25

..

266

263

991738244.UG.FTS.B,

29.49%,

2/07/25

..

540

540

991738742.UG.FTS.B,

29.49%,

2/07/25

..

75

76

991740733.UG.FTS.B,

29.49%,

2/07/25

..

–

–

991741355.UG.FTS.B,

29.49%,

2/07/25

..

78

80

991743733.UG.FTS.B,

29.49%,

2/07/25

..

86

87

991744573.UG.FTS.B,

29.49%,

2/07/25

..

22

22

991745513.UG.FTS.B,

29.49%,

2/07/25

..

317

304

991745593.UG.FTS.B,

29.49%,

2/07/25

..

574

558

991745877.UG.FTS.B,

29.49%,

2/07/25

..

314

324

991746220.UG.FTS.B,

29.49%,

2/07/25

..

291

300

991747234.UG.FTS.B,

29.49%,

2/07/25

..

50

(2)

991747662.UG.FTS.B,

29.49%,

2/07/25

..

372

23

991747860.UG.FTS.B,

29.49%,

2/07/25

..

63

63

991748947.UG.FTS.B,

29.49%,

2/07/25

..

11

11

991749700.UG.FTS.B,

29.49%,

2/07/25

..

74

75

991751851.UG.FTS.B,

29.49%,

2/07/25

..

72

73

991754591.UG.FTS.B,

29.49%,

2/07/25

..

135

30

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991755174.UG.FTS.B,

29.49%,

2/07/25

..

$

183

$

189

991759359.UG.FTS.B,

29.49%,

2/07/25

..

634

653

991759641.UG.FTS.B,

29.49%,

2/07/25

..

174

179

991759993.UG.FTS.B,

29.49%,

2/07/25

..

250

258

991760081.UG.FTS.B,

29.49%,

2/07/25

..

165

170

991761633.UG.FTS.B,

29.49%,

2/07/25

..

140

144

991762218.UG.FTS.B,

29.49%,

2/07/25

..

206

207

991763762.UG.FTS.B,

29.49%,

2/07/25

..

85

87

991765277.UG.FTS.B,

29.49%,

2/07/25

..

31

31

991765430.UG.FTS.B,

29.49%,

2/07/25

..

20

20

991766156.UG.FTS.B,

29.49%,

2/07/25

..

50

18

991766666.UG.FTS.B,

29.49%,

2/07/25

..

46

45

991767510.UG.FTS.B,

29.49%,

2/07/25

..

20

19

991767771.UG.FTS.B,

29.49%,

2/07/25

..

576

595

991770508.UG.FTS.B,

29.49%,

2/07/25

..

351

44

991770714.UG.FTS.B,

29.49%,

2/07/25

..

166

170

991770778.UG.FTS.B,

29.49%,

2/07/25

..

79

81

991771123.UG.FTS.B,

29.49%,

2/07/25

..

242

31

991771328.UG.FTS.B,

29.49%,

2/07/25

..

200

45

991771961.UG.FTS.B,

29.49%,

2/07/25

..

171

176

991773370.UG.FTS.B,

29.49%,

2/07/25

..

230

15

991773390.UG.FTS.B,

29.49%,

2/07/25

..

4,301

4,414

991774019.UG.FTS.B,

29.49%,

2/07/25

..

44

44

991774573.UG.FTS.B,

29.49%,

2/07/25

..

55

54

991777257.UG.FTS.B,

29.49%,

2/07/25

..

153

157

991778724.UG.FTS.B,

29.49%,

2/07/25

..

203

205

991778729.UG.FTS.B,

29.49%,

2/07/25

..

89

91

991778741.UG.FTS.B,

29.49%,

2/07/25

..

582

577

991782212.UG.FTS.B,

29.49%,

2/07/25

..

389

397

991783819.UG.FTS.B,

29.49%,

2/07/25

..

344

353

991784149.UG.FTS.B,

29.49%,

2/07/25

..

668

(40)

991784501.UG.FTS.B,

29.49%,

2/07/25

..

97

100

991787156.UG.FTS.B,

29.49%,

2/07/25

..

63

64

991787510.UG.FTS.B,

29.49%,

2/07/25

..

184

41

991787617.UG.FTS.B,

29.49%,

2/07/25

..

99

103

991788685.UG.FTS.B,

29.49%,

2/07/25

..

818

616

991789088.UG.FTS.B,

29.49%,

2/07/25

..

279

(7)

991790908.UG.FTS.B,

29.49%,

2/07/25

..

721

744

991791306.UG.FTS.B,

29.49%,

2/07/25

..

151

146

991791504.UG.FTS.B,

29.49%,

2/07/25

..

108

14

991792140.UG.FTS.B,

29.49%,

2/07/25

..

18

18

991792553.UG.FTS.B,

29.49%,

2/07/25

..

319

322

991794594.UG.FTS.B,

29.49%,

2/07/25

..

80

80

991795473.UG.FTS.B,

29.49%,

2/07/25

..

593

611

991795942.UG.FTS.B,

29.49%,

2/07/25

..

16

16

991796624.UG.FTS.B,

29.49%,

2/07/25

..

664

43

991799844.UG.FTS.B,

29.49%,

2/07/25

..

82

84

991805572.UG.FTS.B,

29.49%,

2/07/25

..

29

29

991807111.UG.FTS.B,

29.49%,

2/07/25

..

162

155

991808521.UG.FTS.B,

29.49%,

2/07/25

..

596

614

991809177.UG.FTS.B,

29.49%,

2/07/25

..

328

330

991809318.UG.FTS.B,

29.49%,

2/07/25

..

146

149

991809911.UG.FTS.B,

29.49%,

2/07/25

..

33

33

991810854.UG.FTS.B,

29.49%,

2/07/25

..

837

103

991813864.UG.FTS.B,

29.49%,

2/07/25

..

71

72

991814673.UG.FTS.B,

29.49%,

2/07/25

..

–

–

991815263.UG.FTS.B,

29.49%,

2/07/25

..

347

358

991815974.UG.FTS.B,

29.49%,

2/07/25

..

123

27

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

149

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991818057.UG.FTS.B,

29.49%,

2/07/25

..

$

179

$

179

991819733.UG.FTS.B,

29.49%,

2/07/25

..

54

54

991822050.UG.FTS.B,

29.49%,

2/07/25

..

22

22

991826734.UG.FTS.B,

29.49%,

2/07/25

..

30

30

991827340.UG.FTS.B,

29.49%,

2/07/25

..

1,194

1,224

991832087.UG.FTS.B,

29.49%,

2/07/25

..

136

140

991833579.UG.FTS.B,

29.49%,

2/07/25

..

142

(3)

991834751.UG.FTS.B,

29.49%,

2/07/25

..

66

67

991835035.UG.FTS.B,

29.49%,

2/07/25

..

1

1

991835670.UG.FTS.B,

29.49%,

2/07/25

..

171

175

991836016.UG.FTS.B,

29.49%,

2/07/25

..

3,719

831

991836017.UG.FTS.B,

29.49%,

2/07/25

..

120

15

991837440.UG.FTS.B,

29.49%,

2/07/25

..

791

805

991841270.UG.FTS.B,

29.49%,

2/07/25

..

44

3

991842138.UG.FTS.B,

29.49%,

2/07/25

..

221

226

991842816.UG.FTS.B,

29.49%,

2/07/25

..

210

217

991843151.UG.FTS.B,

29.49%,

2/07/25

..

815

840

991843726.UG.FTS.B,

29.49%,

2/07/25

..

636

656

991843750.UG.FTS.B,

29.49%,

2/07/25

..

74

75

991846574.UG.FTS.B,

29.49%,

2/07/25

..

35

35

991848358.UG.FTS.B,

29.49%,

2/07/25

..

297

304

991848794.UG.FTS.B,

29.49%,

2/07/25

..

70

71

991852183.UG.FTS.B,

29.49%,

2/07/25

..

38

37

991852313.UG.FTS.B,

29.49%,

2/07/25

..

12

12

991852346.UG.FTS.B,

29.49%,

2/07/25

..

212

219

991852677.UG.FTS.B,

29.49%,

2/07/25

..

97

(5)

991853938.UG.FTS.B,

29.49%,

2/07/25

..

2,546

2,626

991857024.UG.FTS.B,

29.49%,

2/07/25

..

250

252

991858094.UG.FTS.B,

29.49%,

2/07/25

..

254

262

991860322.UG.FTS.B,

29.49%,

2/07/25

..

159

163

991868612.UG.FTS.B,

29.49%,

2/07/25

..

287

296

991868656.UG.FTS.B,

29.49%,

2/07/25

..

204

(10)

991880489.UG.FTS.B,

29.49%,

2/07/25

..

120

122

991883200.UG.FTS.B,

29.49%,

2/07/25

..

582

600

991885580.UG.FTS.B,

29.49%,

2/07/25

..

28

28

991887494.UG.FTS.B,

29.49%,

2/07/25

..

114

116

991887497.UG.FTS.B,

29.49%,

2/07/25

..

935

949

991889105.UG.FTS.B,

29.49%,

2/07/25

..

24

24

991889654.UG.FTS.B,

29.49%,

2/07/25

..

33

33

991895165.UG.FTS.B,

29.49%,

2/07/25

..

–

–

991895721.UG.FTS.B,

29.49%,

2/07/25

..

230

222

991902084.UG.FTS.B,

29.49%,

2/07/25

..

12

12

991905008.UG.FTS.B,

29.49%,

2/07/25

..

21

20

991906662.UG.FTS.B,

29.49%,

2/07/25

..

36

6

991906939.UG.FTS.B,

29.49%,

2/07/25

..

1,098

1,109

991908268.UG.FTS.B,

29.49%,

2/07/25

..

169

171

991910701.UG.FTS.B,

29.49%,

2/07/25

..

20

20

991910987.UG.FTS.B,

29.49%,

2/07/25

..

3

3

991912493.UG.FTS.B,

29.49%,

2/07/25

..

905

916

991913870.UG.FTS.B,

29.49%,

2/07/25

..

1,671

1,672

991914240.UG.FTS.B,

29.49%,

2/07/25

..

400

397

991918574.UG.FTS.B,

29.49%,

2/07/25

..

363

367

991918681.UG.FTS.B,

29.49%,

2/07/25

..

435

441

991918743.UG.FTS.B,

29.49%,

2/07/25

..

762

748

991921344.UG.FTS.B,

29.49%,

2/07/25

..

25

25

991924576.UG.FTS.B,

29.49%,

2/07/25

..

231

233

991924888.UG.FTS.B,

29.49%,

2/07/25

..

160

35

991925769.UG.FTS.B,

29.49%,

2/07/25

..

5

5

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991927085.UG.FTS.B,

29.49%,

2/07/25

..

$

170

$

172

991928759.UG.FTS.B,

29.49%,

2/07/25

..

72

71

991930808.UG.FTS.B,

29.49%,

2/07/25

..

745

743

991740615.UG.FTS.B,

29.99%,

2/07/25

..

146

94

991714655.UG.FTS.B,

Zero

Cpn,

2/08/25

.

6,824

483

991782534.UG.FTS.B,

14.97%,

2/08/25

..

875

891

991783643.UG.FTS.B,

14.98%,

2/08/25

..

1,634

1,662

991895441.UG.FTS.B,

14.98%,

2/08/25

..

911

569

991946691.UG.FTS.B,

14.98%,

2/08/25

..

76

76

991711757.UG.FTS.B,

15.97%,

2/08/25

..

512

522

991729261.UG.FTS.B,

15.97%,

2/08/25

..

36

36

991802379.UG.FTS.B,

15.97%,

2/08/25

..

410

418

991834646.UG.FTS.B,

15.97%,

2/08/25

..

2,211

2,252

991855467.UG.FTS.B,

15.97%,

2/08/25

..

23

24

991904951.UG.FTS.B,

15.97%,

2/08/25

..

282

285

991908489.UG.FTS.B,

15.97%,

2/08/25

..

408

415

991917251.UG.FTS.B,

15.97%,

2/08/25

..

326

330

991723142.UG.FTS.B,

16.99%,

2/08/25

..

449

31

991771363.UG.FTS.B,

16.99%,

2/08/25

..

2,061

2,098

991784207.UG.FTS.B,

16.99%,

2/08/25

..

247

252

991894055.UG.FTS.B,

16.99%,

2/08/25

..

247

251

991905481.UG.FTS.B,

16.99%,

2/08/25

..

167

169

991721411.UG.FTS.B,

17.99%,

2/08/25

..

826

840

991726915.UG.FTS.B,

17.99%,

2/08/25

..

39

3

991731306.UG.FTS.B,

17.99%,

2/08/25

..

12,828

13,050

991746485.UG.FTS.B,

17.99%,

2/08/25

..

62

62

991868983.UG.FTS.B,

17.99%,

2/08/25

..

337

342

991717470.UG.FTS.B,

19.21%,

2/08/25

..

378

381

991723395.UG.FTS.B,

19.21%,

2/08/25

..

167

169

991715823.UG.FTS.B,

19.8%,

2/08/25

...

115

114

991729717.UG.FTS.B,

19.8%,

2/08/25

...

46

47

991716580.UG.FTS.B,

20.46%,

2/08/25

..

530

537

991724960.UG.FTS.B,

20.46%,

2/08/25

..

297

298

991726248.UG.FTS.B,

21.46%,

2/08/25

..

165

167

991716805.UG.FTS.B,

22.97%,

2/08/25

..

397

401

991752542.UG.FTS.B,

25.95%,

2/08/25

..

544

66

991809543.UG.FTS.B,

14.98%,

2/09/25

..

268

272

991724869.UG.FTS.B,

15%,

2/09/25

.....

1,050

1,069

991746108.UG.FTS.B,

15%,

2/09/25

.....

344

349

991746306.UG.FTS.B,

15%,

2/09/25

.....

1,121

1,124

991862382.UG.FTS.B,

15%,

2/09/25

.....

123

126

991908452.UG.FTS.B,

15%,

2/09/25

.....

2,442

2,485

991929779.UG.FTS.B,

15%,

2/09/25

.....

74

75

991749134.UG.FTS.B,

15.97%,

2/09/25

..

4,116

4,193

991755733.UG.FTS.B,

15.97%,

2/09/25

..

20

21

991781627.UG.FTS.B,

15.97%,

2/09/25

..

451

459

991719973.UG.FTS.B,

16.99%,

2/09/25

..

248

253

991721989.UG.FTS.B,

16.99%,

2/09/25

..

496

505

991778289.UG.FTS.B,

16.99%,

2/09/25

..

947

964

991783787.UG.FTS.B,

16.99%,

2/09/25

..

824

839

991784826.UG.FTS.B,

16.99%,

2/09/25

..

866

875

991863273.UG.FTS.B,

16.99%,

2/09/25

..

1,231

1,254

991741247.UG.FTS.B,

17.97%,

2/09/25

..

834

847

991724932.UG.FTS.B,

17.99%,

2/09/25

..

63

63

991732999.UG.FTS.B,

17.99%,

2/09/25

..

106

105

991764270.UG.FTS.B,

17.99%,

2/09/25

..

425

432

991785523.UG.FTS.B,

17.99%,

2/09/25

..

164

167

991806884.UG.FTS.B,

17.99%,

2/09/25

..

184

187

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

150

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991830380.UG.FTS.B,

17.99%,

2/09/25

..

$

203

$

23

991867276.UG.FTS.B,

17.99%,

2/09/25

..

216

218

991547229.UG.FTS.B,

29.49%,

3/15/25

..

422

313

991693195.UG.FTS.B,

29.49%,

3/22/25

..

–

–

991762048.UG.FTS.B,

18.97%,

4/06/25

..

170

111

991732334.UG.FTS.B,

29.49%,

4/07/25

..

217

(9)

991658250.UG.FTS.B,

16.99%,

1/20/27

..

2,107

2,135

991607046.UG.FTS.B,

21.99%,

1/20/27

..

4,137

4,220

991630410.UG.FTS.B,

22.36%,

1/26/27

..

996

1,024

991784156.UG.FTS.B,

22.36%,

1/26/27

..

779

802

991624255.UG.FTS.B,

16.99%,

1/28/27

..

261

270

991611832.UG.FTS.B,

16.99%,

1/29/27

..

1,281

1,313

991624113.UG.FTS.B,

17.99%,

1/29/27

..

610

611

991610886.UG.FTS.B,

18.98%,

1/29/27

..

2,231

2,309

991664785.UG.FTS.B,

18.98%,

1/29/27

..

300

310

991859032.UG.FTS.B,

16.99%,

1/31/27

..

26

26

991678457.UG.FTS.B,

19.99%,

1/31/27

..

492

509

991663324.UG.FTS.B,

22.36%,

1/31/27

..

170

175

991676761.UG.FTS.B,

16.99%,

2/02/27

..

1,197

1,186

991721939.UG.FTS.B,

16.99%,

2/02/27

..

1,283

1,317

991734117.UG.FTS.B,

17.99%,

2/02/27

..

460

468

991734377.UG.FTS.B,

17.99%,

2/02/27

..

79

80

991684567.UG.FTS.B,

15.99%,

2/03/27

..

498

510

991894965.UG.FTS.B,

16.99%,

2/03/27

..

5,447

5,541

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

..

66

65

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

..

7

5

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

..

4

4

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

..

16

16

991567877.UG.FTS.B,

Zero

Cpn,

3/17/27

.

–

–

991732498.UG.FTS.B,

29.49%,

3/18/27

..

–

–

991750559.UG.FTS.B,

21.48%,

3/19/27

..

–

–

991779985.UG.FTS.B,

28.98%,

3/19/27

..

–

–

991697928.UG.FTS.B,

28.98%,

3/23/27

..

–

–

991715184.UG.FTS.B,

19.99%,

3/24/27

..

–

–

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

–

991733536.UG.FTS.B,

29.49%,

4/05/27

..

–

–

991758534.UG.FTS.B,

29.49%,

4/05/27

..

–

–

991870524.UG.FTS.B,

29.49%,

4/06/27

..

–

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

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

..

–

–

991561540.UG.FTS.B,

28.98%,

4/17/27

..

–

–

991785018.UG.FTS.B,

28.98%,

4/17/27

..

–

–

991619761.UG.FTS.B,

29.49%,

4/17/27

..

–

–

991732828.UG.FTS.B,

29.49%,

4/17/27

..

–

–

991763282.UG.FTS.B,

29.49%,

4/17/27

..

–

–

991745741.UG.FTS.B,

29.49%,

4/18/27

..

–

–

991633395.UG.FTS.B,

29.49%,

4/21/27

..

–

–

991662195.UG.FTS.B,

Zero

Cpn,

4/22/27

.

–

–

991795777.UG.FTS.B,

23.95%,

4/22/27

..

–

–

991698521.UG.FTS.B,

29.49%,

4/22/27

..

–

–

991824667.UG.FTS.B,

29.49%,

4/22/27

..

–

–

991630177.UG.FTS.B,

29.49%,

4/24/27

..

–

–

991717432.UG.FTS.B,

29.49%,

4/24/27

..

–

–

991789231.UG.FTS.B,

29.49%,

4/24/27

..

–

–

991919428.UG.FTS.B,

Zero

Cpn,

5/05/27

.

–

–

991738536.UG.FTS.B,

21.48%,

5/05/27

..

–

–

991850769.UG.FTS.B,

28.48%,

5/05/27

..

–

–

991806750.UG.FTS.B,

28.98%,

5/05/27

..

–

–

991741449.UG.FTS.B,

29.49%,

5/05/27

..

–

–

991781803.UG.FTS.B,

29.49%,

5/05/27

..

–

–

991793748.UG.FTS.B,

29.49%,

5/05/27

..

–

–

991706318.UG.FTS.B,

28.98%,

5/06/27

..

–

–

991924386.UG.FTS.B,

29.49%,

5/06/27

..

–

–

991932599.UG.FTS.B,

29.49%,

5/06/27

..

3

3

991751093.UG.FTS.B,

29.49%,

5/07/27

..

–

–

991767072.UG.FTS.B,

29.49%,

5/07/27

..

–

–

991770671.UG.FTS.B,

29.49%,

5/07/27

..

–

–

991779626.UG.FTS.B,

29.49%,

5/07/27

..

–

–

991554163.UG.FTS.B,

29.47%,

5/17/27

..

–

–

991659030.UG.FTS.B,

Zero

Cpn,

5/18/27

.

–

–

991688544.UG.FTS.B,

29.49%,

5/18/27

..

–

–

991667684.UG.FTS.B,

29.49%,

5/19/27

..

–

–

991695824.UG.FTS.B,

29.49%,

5/23/27

..

–

–

991597405.UG.FTS.B,

29.49%,

5/24/27

..

–

–

991698730.UG.FTS.B,

Zero

Cpn,

5/29/27

.

–

–

991644537.UG.FTS.B,

18.71%,

5/30/27

..

–

–

991908977.UG.FTS.B,

Zero

Cpn,

6/04/27

.

10

1

991709552.UG.FTS.B,

28.98%,

6/04/27

..

–

–

991878692.UG.FTS.B,

29.49%,

6/04/27

..

–

–

991706592.UG.FTS.B,

28.98%,

6/05/27

..

–

–

991717197.UG.FTS.B,

29.49%,

6/05/27

..

–

–

991703738.UG.FTS.B,

27.95%,

6/06/27

..

–

–

991885361.UG.FTS.B,

28.98%,

6/06/27

..

–

–

991868697.UG.FTS.B,

29.49%,

6/06/27

..

–

–

991909030.UG.FTS.B,

29.49%,

6/06/27

..

–

–

991809194.UG.FTS.B,

29.49%,

6/07/27

..

–

–

991875316.UG.FTS.B,

29.49%,

6/07/27

..

–

–

991649143.UG.FTS.B,

28.98%,

6/17/27

..

–

–

991752444.UG.FTS.B,

28.98%,

6/19/27

..

–

–

991797212.UG.FTS.B,

Zero

Cpn,

6/21/27

.

2

–

991680516.UG.FTS.B,

29.49%,

6/21/27

..

10

–

991661586.UG.FTS.B,

29.49%,

6/22/27

..

–

–

991741524.UG.FTS.B,

23.95%,

6/23/27

..

8

1

991796318.UG.FTS.B,

28.48%,

6/24/27

..

2

2

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

151

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991596778.UG.FTS.B,

28.98%,

6/24/27

..

$

–

$

–

991605901.UG.FTS.B,

29.49%,

6/24/27

..

–

–

991614149.UG.FTS.B,

29.49%,

6/24/27

..

–

–

991885330.UG.FTS.B,

Zero

Cpn,

7/05/27

.

(4)

(4)

991788436.UG.FTS.B,

29.49%,

7/05/27

..

–

–

991924009.UG.FTS.B,

29.49%,

7/06/27

..

–

–

991707047.UG.FTS.B,

29.49%,

7/07/27

..

–

–

991710309.UG.FTS.B,

29.49%,

7/07/27

..

2

2

991798099.UG.FTS.B,

29.49%,

7/07/27

..

–

–

991870198.UG.FTS.B,

29.49%,

7/07/27

..

–

–

991875785.UG.FTS.B,

29.49%,

7/07/27

..

–

–

991723700.UG.FTS.B,

28.48%,

7/17/27

..

–

–

991653674.UG.FTS.B,

Zero

Cpn,

7/21/27

.

7

1

991791542.UG.FTS.B,

28.48%,

7/21/27

..

–

–

991637028.UG.FTS.B,

29.49%,

7/21/27

..

–

–

991764023.UG.FTS.B,

29.49%,

7/21/27

..

2

–

991747700.UG.FTS.B,

16.99%,

7/27/27

..

–

–

991902514.UG.FTS.B,

28.48%,

8/03/27

..

18

1

991816597.UG.FTS.B,

28.98%,

8/05/27

..

–

–

991763730.UG.FTS.B,

29.49%,

8/05/27

..

1

–

991790422.UG.FTS.B,

29.49%,

8/05/27

..

–

–

991817172.UG.FTS.B,

29.49%,

8/05/27

..

–

–

991924889.UG.FTS.B,

Zero

Cpn,

8/06/27

.

10

1

991921415.UG.FTS.B,

25.95%,

8/06/27

..

–

–

991742510.UG.FTS.B,

28.48%,

8/06/27

..

–

–

991769774.UG.FTS.B,

28.98%,

8/06/27

..

–

–

991702425.UG.FTS.B,

29.49%,

8/06/27

..

3

–

991753589.UG.FTS.B,

Zero

Cpn,

8/07/27

.

15

1

991738948.UG.FTS.B,

29.49%,

8/07/27

..

1

–

991745332.UG.FTS.B,

29.49%,

8/07/27

..

–

–

991788681.UG.FTS.B,

29.49%,

8/07/27

..

–

–

991799243.UG.FTS.B,

29.49%,

8/07/27

..

–

–

991580712.UG.FTS.B,

29.49%,

8/17/27

..

–

–

991709088.UG.FTS.B,

29.49%,

8/17/27

..

–

–

991781479.UG.FTS.B,

29.49%,

8/18/27

..

5

–

991796436.UG.FTS.B,

29.49%,

8/20/27

..

8

–

991807699.UG.FTS.B,

29.49%,

8/20/27

..

4

–

991741186.UG.FTS.B,

21.98%,

8/21/27

..

–

–

991679560.UG.FTS.B,

Zero

Cpn,

8/22/27

.

10

1

991756247.UG.FTS.B,

29.49%,

8/22/27

..

–

–

991758211.UG.FTS.B,

28.98%,

8/23/27

..

6

–

991700115.UG.FTS.B,

29.49%,

8/23/27

..

14

3

991595101.UG.FTS.B,

Zero

Cpn,

8/24/27

.

11

1

991750294.UG.FTS.B,

29.48%,

8/24/27

..

–

–

991643172.UG.FTS.B,

29.49%,

8/24/27

..

6

–

991716229.UG.FTS.B,

29.49%,

9/03/27

..

–

–

991753799.UG.FTS.B,

29.49%,

9/05/27

..

–

–

991887118.UG.FTS.B,

29.49%,

9/05/27

..

1

–

991892017.UG.FTS.B,

29.49%,

9/05/27

..

–

–

991729743.UG.FTS.B,

28.48%,

9/06/27

..

–

–

991715996.UG.FTS.B,

28.98%,

9/06/27

..

2

–

991742233.UG.FTS.B,

28.98%,

9/06/27

..

9

4

991751600.UG.FTS.B,

19.99%,

9/07/27

..

–

–

991857497.UG.FTS.B,

29.49%,

9/07/27

..

–

–

991662152.UG.FTS.B,

29.49%,

9/16/27

..

–

–

991687748.UG.FTS.B,

28.98%,

9/17/27

..

–

–

991554000.UG.FTS.B,

29.49%,

9/17/27

..

4

1

991563089.UG.FTS.B,

29.49%,

9/17/27

..

–

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991698513.UG.FTS.B,

29.49%,

9/17/27

..

$

–

$

–

991705848.UG.FTS.B,

29.49%,

9/17/27

..

–

–

991703503.UG.FTS.B,

Zero

Cpn,

9/19/27

.

7

1

991713002.UG.FTS.B,

Zero

Cpn,

9/19/27

.

15

1

991681193.UG.FTS.B,

29.49%,

9/19/27

..

–

–

991717633.UG.FTS.B,

29.46%,

9/20/27

..

–

–

991777722.UG.FTS.B,

29.49%,

9/20/27

..

–

–

991778091.UG.FTS.B,

29.49%,

9/20/27

..

–

–

991778351.UG.FTS.B,

29.49%,

9/20/27

..

7

–

991743723.UG.FTS.B,

29.49%,

9/21/27

..

–

–

991629535.UG.FTS.B,

27.99%,

9/23/27

..

18

17

991653296.UG.FTS.B,

29.49%,

9/23/27

..

8

1

991789913.UG.FTS.B,

29.49%,

9/23/27

..

–

–

991822268.UG.FTS.B,

29.49%,

9/23/27

..

–

–

991632886.UG.FTS.B,

28.48%,

9/24/27

..

–

–

991660396.UG.FTS.B,

29.49%,

9/24/27

..

–

–

991675702.UG.FTS.B,

29.49%,

9/24/27

..

1

1

991747625.UG.FTS.B,

29.49%,

9/24/27

..

–

–

991814988.UG.FTS.B,

29.49%,

9/24/27

..

4

1

991727199.UG.FTS.B,

17.99%,

9/28/27

..

–

–

991922941.UG.FTS.B,

29.49%,

10/04/27

.

8

1

991713761.UG.FTS.B,

28.48%,

10/05/27

.

27

11

991732445.UG.FTS.B,

28.98%,

10/05/27

.

5

5

991717555.UG.FTS.B,

29.49%,

10/05/27

.

11

1

991912389.UG.FTS.B,

29.49%,

10/05/27

.

5

2

991709462.UG.FTS.B,

19.99%,

10/06/27

.

14

13

991883651.UG.FTS.B,

19.99%,

10/06/27

.

–

–

991833886.UG.FTS.B,

28.48%,

10/06/27

.

9

–

991716404.UG.FTS.B,

29.49%,

10/06/27

.

12

1

991796474.UG.FTS.B,

29.49%,

10/06/27

.

–

–

991858162.UG.FTS.B,

Zero

Cpn,

10/07/27

20

1

991867288.UG.FTS.B,

19.8%,

10/07/27

..

8

1

991748215.UG.FTS.B,

28.98%,

10/07/27

.

–

–

991817511.UG.FTS.B,

29.49%,

10/07/27

.

–

–

991752426.UG.FTS.B,

29.49%,

10/15/27

.

2

2

991754900.UG.FTS.B,

Zero

Cpn,

10/17/27

21

2

991648817.UG.FTS.B,

19.99%,

10/17/27

.

–

–

991630350.UG.FTS.B,

25.45%,

10/17/27

.

–

–

991594819.UG.FTS.B,

28.48%,

10/17/27

.

–

–

991643179.UG.FTS.B,

29.48%,

10/17/27

.

–

–

991545668.UG.FTS.B,

29.49%,

10/17/27

.

8

1

991564542.UG.FTS.B,

29.49%,

10/17/27

.

–

–

991668118.UG.FTS.B,

29.49%,

10/17/27

.

7

2

991681230.UG.FTS.B,

29.49%,

10/17/27

.

5

1

991689993.UG.FTS.B,

25.95%,

10/18/27

.

15

–

991692483.UG.FTS.B,

29.49%,

10/18/27

.

–

–

991781280.UG.FTS.B,

29.49%,

10/19/27

.

–

–

991672410.UG.FTS.B,

29.49%,

10/20/27

.

–

–

991812772.UG.FTS.B,

25.94%,

10/21/27

.

20

9

991731126.UG.FTS.B,

Zero

Cpn,

10/22/27

22

2

991660244.UG.FTS.B,

29.49%,

10/22/27

.

4

4

991823032.UG.FTS.B,

29.49%,

10/22/27

.

1

1

991741365.UG.FTS.B,

28.98%,

10/24/27

.

2

2

991829618.UG.FTS.B,

29.48%,

10/24/27

.

30

27

991729063.UG.FTS.B,

29.49%,

10/24/27

.

–

–

991776905.UG.FTS.B,

29.49%,

10/24/27

.

–

–

991874849.UG.FTS.B,

28.48%,

11/03/27

.

4

4

991760491.UG.FTS.B,

29.49%,

11/03/27

.

23

(1)

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

152

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991910436.UG.FTS.B,

29.49%,

11/03/27

.

$

1

$

1

991713871.UG.FTS.B,

16.99%,

11/04/27

.

5

3

991921668.UG.FTS.B,

29.49%,

11/04/27

.

2

2

991808770.UG.FTS.B,

Zero

Cpn,

11/05/27

25

2

991840614.UG.FTS.B,

19.99%,

11/05/27

.

–

–

991915604.UG.FTS.B,

19.99%,

11/05/27

.

15

13

991914493.UG.FTS.B,

20.96%,

11/05/27

.

2

2

991897083.UG.FTS.B,

28.98%,

11/05/27

.

3

3

991910714.UG.FTS.B,

28.98%,

11/05/27

.

–

–

991696894.UG.FTS.B,

29.49%,

11/05/27

.

3

3

991729131.UG.FTS.B,

29.49%,

11/05/27

.

1

1

991759609.UG.FTS.B,

29.49%,

11/05/27

.

3

3

991778245.UG.FTS.B,

29.49%,

11/05/27

.

2

2

991807620.UG.FTS.B,

29.49%,

11/05/27

.

2

2

991830265.UG.FTS.B,

29.49%,

11/05/27

.

1

1

991932077.UG.FTS.B,

29.49%,

11/05/27

.

–

–

991830029.UG.FTS.B,

28.98%,

11/06/27

.

4

4

991839546.UG.FTS.B,

28.98%,

11/06/27

.

4

4

991707173.UG.FTS.B,

29.49%,

11/06/27

.

2

2

991717801.UG.FTS.B,

29.49%,

11/06/27

.

2

2

991768785.UG.FTS.B,

29.49%,

11/06/27

.

4

4

991936500.UG.FTS.B,

29.49%,

11/06/27

.

4

3

991875028.UG.FTS.B,

19.97%,

11/07/27

.

2

2

991723256.UG.FTS.B,

29.49%,

11/07/27

.

2

2

991724007.UG.FTS.B,

29.49%,

11/07/27

.

12

2

991732059.UG.FTS.B,

29.49%,

11/07/27

.

3

3

991736846.UG.FTS.B,

29.49%,

11/07/27

.

3

3

991743169.UG.FTS.B,

29.49%,

11/07/27

.

19

(1)

991760619.UG.FTS.B,

29.49%,

11/07/27

.

15

1

991768200.UG.FTS.B,

29.49%,

11/07/27

.

1

1

991779533.UG.FTS.B,

29.49%,

11/07/27

.

4

4

991862617.UG.FTS.B,

29.49%,

11/07/27

.

1

1

991885250.UG.FTS.B,

29.49%,

11/07/27

.

–

–

991930298.UG.FTS.B,

29.49%,

11/07/27

.

–

–

991555993.UG.FTS.B,

28.98%,

11/16/27

.

2

2

991651773.UG.FTS.B,

29.49%,

11/16/27

.

6

6

991778366.UG.FTS.B,

29.49%,

11/16/27

.

–

–

991728725.UG.FTS.B,

18.47%,

11/17/27

.

3

3

991633465.UG.FTS.B,

19.99%,

11/17/27

.

3

3

991609514.UG.FTS.B,

26.44%,

11/17/27

.

–

–

991546401.UG.FTS.B,

26.94%,

11/17/27

.

4

4

991585893.UG.FTS.B,

28.48%,

11/17/27

.

4

4

991562097.UG.FTS.B,

28.98%,

11/17/27

.

30

(1)

991567739.UG.FTS.B,

28.98%,

11/17/27

.

4

4

991605120.UG.FTS.B,

28.98%,

11/17/27

.

3

3

991741386.UG.FTS.B,

28.98%,

11/17/27

.

9

9

991559899.UG.FTS.B,

29.48%,

11/17/27

.

5

5

991590320.UG.FTS.B,

29.48%,

11/17/27

.

2

2

991577951.UG.FTS.B,

29.49%,

11/17/27

.

–

–

991587720.UG.FTS.B,

29.49%,

11/17/27

.

3

3

991619508.UG.FTS.B,

29.49%,

11/17/27

.

–

–

991621515.UG.FTS.B,

29.49%,

11/17/27

.

–

–

991636984.UG.FTS.B,

29.49%,

11/17/27

.

1

1

991647202.UG.FTS.B,

29.49%,

11/17/27

.

17

1

991664280.UG.FTS.B,

29.49%,

11/17/27

.

5

5

991703172.UG.FTS.B,

29.49%,

11/17/27

.

4

4

991733962.UG.FTS.B,

29.49%,

11/17/27

.

3

3

991756970.UG.FTS.B,

29.98%,

11/17/27

.

–

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991757333.UG.FTS.B,

19.99%,

11/18/27

.

$

2

$

2

991671256.UG.FTS.B,

28.48%,

11/18/27

.

–

–

991782284.UG.FTS.B,

28.48%,

11/18/27

.

5

4

991664625.UG.FTS.B,

29.49%,

11/18/27

.

4

4

991662161.UG.FTS.B,

28.98%,

11/19/27

.

–

–

991709563.UG.FTS.B,

28.98%,

11/19/27

.

4

4

991764307.UG.FTS.B,

29.49%,

11/19/27

.

4

4

991765762.UG.FTS.B,

29.49%,

11/19/27

.

2

–

991804043.UG.FTS.B,

29.49%,

11/19/27

.

2

2

991634057.UG.FTS.B,

20.46%,

11/20/27

.

5

5

991701242.UG.FTS.B,

29.49%,

11/20/27

.

–

–

991707605.UG.FTS.B,

29.49%,

11/20/27

.

3

3

991675898.UG.FTS.B,

19.99%,

11/21/27

.

–

–

991575668.UG.FTS.B,

28.98%,

11/21/27

.

3

3

991766240.UG.FTS.B,

28.98%,

11/21/27

.

1

1

991734029.UG.FTS.B,

29.49%,

11/21/27

.

4

4

991786686.UG.FTS.B,

29.49%,

11/21/27

.

–

–

991787532.UG.FTS.B,

29.49%,

11/21/27

.

4

4

991822948.UG.FTS.B,

29.49%,

11/21/27

.

18

18

991669996.UG.FTS.B,

21.48%,

11/22/27

.

20

–

991647702.UG.FTS.B,

29.49%,

11/22/27

.

24

2

991684325.UG.FTS.B,

29.49%,

11/22/27

.

5

5

991752680.UG.FTS.B,

29.49%,

11/22/27

.

5

5

991797438.UG.FTS.B,

29.49%,

11/22/27

.

5

5

991828099.UG.FTS.B,

29.49%,

11/22/27

.

3

3

991831257.UG.FTS.B,

29.49%,

11/22/27

.

–

–

991650331.UG.FTS.B,

19.21%,

11/23/27

.

30

2

991590920.UG.FTS.B,

28.98%,

11/23/27

.

3

3

991594206.UG.FTS.B,

29.49%,

11/23/27

.

1

1

991629950.UG.FTS.B,

27.99%,

11/24/27

.

33

3

991615673.UG.FTS.B,

28.48%,

11/24/27

.

3

3

991639534.UG.FTS.B,

28.48%,

11/24/27

.

1

1

991641059.UG.FTS.B,

28.98%,

11/24/27

.

4

4

991646530.UG.FTS.B,

28.98%,

11/24/27

.

–

–

991660768.UG.FTS.B,

28.98%,

11/24/27

.

–

–

991761383.UG.FTS.B,

28.98%,

11/24/27

.

5

5

991596967.UG.FTS.B,

29.48%,

11/24/27

.

8

8

991595187.UG.FTS.B,

29.49%,

11/24/27

.

23

10

991597322.UG.FTS.B,

29.49%,

11/24/27

.

3

3

991606464.UG.FTS.B,

29.49%,

11/24/27

.

3

3

991703436.UG.FTS.B,

29.49%,

11/24/27

.

–

–

991828515.UG.FTS.B,

29.49%,

11/24/27

.

4

4

991810373.UG.FTS.B,

17.49%,

11/27/27

.

29

2

1,871,097

Upstart

Network,

Inc.

L1668275.UP.FTS.B,

5.93%,

9/14/24

....

2,109

2,090

L1708965.UP.FTS.B,

6.03%,

9/14/24

....

1,121

1,111

L1711338.UP.FTS.B,

7.31%,

9/14/24

.....

5,052

5,010

FW1711179.UP.FTS.B,

8.08%,

9/14/24

...

5,664

5,620

L1710504.UP.FTS.B,

8.16%,

9/14/24

....

3,481

1,940

L1710349.UP.FTS.B,

8.75%,

9/14/24

....

3,343

3,317

L1709609.UP.FTS.B,

9.38%,

9/14/24

....

4,014

3,983

L1710286.UP.FTS.B,

10.59%,

9/14/24

....

8,413

4,779

L1709477.UP.FTS.B,

10.67%,

9/14/24

....

2,336

138

L1709911.UP.FTS.B,

11.09%,

9/14/24

....

4,039

4,008

L1709151.UP.FTS.B,

12.24%,

9/14/24

....

12,241

12,150

L1709495.UP.FTS.B,

12.77%,

9/14/24

....

1,721

1,706

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

153

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L1711024.UP.FTS.B,

12.98%,

9/14/24

....

$

2,116

$

2,100

L1708601.UP.FTS.B,

13.04%,

9/14/24

....

4,779

4,743

L1709421.UP.FTS.B,

13.37%,

9/14/24

....

2,713

2,693

L1709684.UP.FTS.B,

13.76%,

9/14/24

....

1,367

1,357

FW1710146.UP.FTS.B,

13.91%,

9/14/24

..

2,056

2,044

L1709615.UP.FTS.B,

14.35%,

9/14/24

....

1,426

1,406

L1709128.UP.FTS.B,

16.69%,

9/14/24

....

694

690

L1710058.UP.FTS.B,

17.29%,

9/14/24

....

2,739

1,604

FW1708870.UP.FTS.B,

17.81%,

9/14/24

..

2,804

2,779

L1710277.UP.FTS.B,

18.02%,

9/14/24

....

10,509

10,416

L1711489.UP.FTS.B,

18.07%,

9/14/24

....

3,507

3,476

L1693265.UP.FTS.B,

18.16%,

9/14/24

....

1,049

1,042

L1708735.UP.FTS.B,

18.16%,

9/14/24

....

3,498

3,467

L1710205.UP.FTS.B,

18.33%,

9/14/24

....

3,498

3,476

L1712571.UP.FTS.B,

19.22%,

9/14/24

....

1,054

1,047

L1710755.UP.FTS.B,

19.46%,

9/14/24

....

3,517

3,495

L1711631.UP.FTS.B,

20.05%,

9/14/24

....

1,481

1,464

L1710054.UP.FTS.B,

20.94%,

9/14/24

....

21,236

21,103

L1701584.UP.FTS.B,

21.4%,

9/14/24

....

1,717

1,694

L1709086.UP.FTS.B,

21.87%,

9/14/24

....

4,982

4,914

L1709006.UP.FTS.B,

22.7%,

9/14/24

....

2,138

2,114

L1712071.UP.FTS.B,

22.99%,

9/14/24

....

1,572

1,554

L1711537.UP.FTS.B,

23.1%,

9/14/24

.....

1,286

1,278

L1711075.UP.FTS.B,

23.16%,

9/14/24

....

1,072

1,060

L1709547.UP.FTS.B,

23.36%,

9/14/24

....

4,725

4,659

L1706779.UP.FTS.B,

23.41%,

9/14/24

....

1,288

1,273

L1711142.UP.FTS.B,

23.72%,

9/14/24

....

782

773

L1709631.UP.FTS.B,

24.23%,

9/14/24

....

4,308

4,259

FW1709769.UP.FTS.B,

24.54%,

9/14/24

..

3,226

480

FW1710815.UP.FTS.B,

26.35%,

9/14/24

..

712

704

FW1710161.UP.FTS.B,

26.64%,

9/14/24

..

6,780

6,652

FW1709118.UP.FTS.B,

27.71%,

9/14/24

..

1,457

1,441

FW1709444.UP.FTS.B,

27.86%,

9/14/24

..

2,188

2,163

FW1710922.UP.FTS.B,

28.53%,

9/14/24

..

731

723

FW1710689.UP.FTS.B,

28.87%,

9/14/24

..

2,998

214

FW1710694.UP.FTS.B,

29.46%,

9/14/24

..

14,674

14,509

FW1710062.UP.FTS.B,

30.06%,

9/14/24

..

1,325

1,310

FW1711508.UP.FTS.B,

30.59%,

9/14/24

..

5,104

1,473

L1874342.UP.FTS.B,

5.92%,

10/18/24

....

10,590

10,499

L1873274.UP.FTS.B,

6.44%,

10/18/24

....

4,815

4,774

L1873054.UP.FTS.B,

6.73%,

10/18/24

....

12,053

11,950

L1874011.UP.FTS.B,

6.93%,

10/18/24

....

6,894

6,832

FW1874507.UP.FTS.B,

7.36%,

10/18/24

..

2,072

2,054

L1874340.UP.FTS.B,

7.48%,

10/18/24

....

10,990

10,892

L1873016.UP.FTS.B,

8.3%,

10/18/24

....

2,775

2,754

L1873058.UP.FTS.B,

8.3%,

10/18/24

....

3,453

3,426

L1873371.UP.FTS.B,

8.48%,

10/18/24

....

8,333

8,268

L1873862.UP.FTS.B,

8.52%,

10/18/24

....

1,390

1,378

L1873876.UP.FTS.B,

8.87%,

10/18/24

....

10,480

10,389

FW1874503.UP.FTS.B,

9.4%,

10/18/24

...

6,018

5,966

L1873457.UP.FTS.B,

9.58%,

10/18/24

....

698

692

L1873276.UP.FTS.B,

10.26%,

10/18/24

...

5,601

5,552

L1873969.UP.FTS.B,

10.92%,

10/18/24

...

702

696

L1873212.UP.FTS.B,

11.39%,

10/18/24

...

11,605

10,966

L1873534.UP.FTS.B,

11.86%,

10/18/24

...

211

201

L1872565.UP.FTS.B,

13.63%,

10/18/24

...

3,554

3,523

FW1873666.UP.FTS.B,

14.61%,

10/18/24

.

1,196

1,184

L1873890.UP.FTS.B,

14.95%,

10/18/24

...

1,573

1,562

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1873908.UP.FTS.B,

15.55%,

10/18/24

...

$

1,075

$

1,065

L1874133.UP.FTS.B,

16.04%,

10/18/24

...

3,577

3,552

L1873474.UP.FTS.B,

16.06%,

10/18/24

...

2,011

1,997

L1873316.UP.FTS.B,

16.33%,

10/18/24

...

2,371

2,355

L1873998.UP.FTS.B,

16.56%,

10/18/24

...

4,319

4,278

FW1873500.UP.FTS.B,

17.14%,

10/18/24

.

828

60

L1873175.UP.FTS.B,

17.39%,

10/18/24

...

1,473

1,393

FW1873590.UP.FTS.B,

17.67%,

10/18/24

.

6,727

6,369

FW1874334.UP.FTS.B,

18.25%,

10/18/24

.

6,162

6,105

L1873935.UP.FTS.B,

18.25%,

10/18/24

...

2,159

2,144

FW1874411.UP.FTS.B,

18.35%,

10/18/24

.

7,895

7,843

L1873189.UP.FTS.B,

18.36%,

10/18/24

...

4,351

4,311

L1869487.UP.FTS.B,

18.66%,

10/18/24

...

4,357

4,328

L1873369.UP.FTS.B,

18.74%,

10/18/24

...

10,908

10,808

L1874319.UP.FTS.B,

19.26%,

10/18/24

...

4,520

4,271

L1873329.UP.FTS.B,

19.32%,

10/18/24

...

2,184

2,170

L1874232.UP.FTS.B,

19.37%,

10/18/24

...

8,310

8,204

FW1859012.UP.FTS.B,

19.54%,

10/18/24

.

10,932

10,810

L1873978.UP.FTS.B,

20.05%,

10/18/24

...

826

27

L1873964.UP.FTS.B,

20.13%,

10/18/24

...

3,069

3,041

L1873264.UP.FTS.B,

20.49%,

10/18/24

...

1,317

1,299

L1873242.UP.FTS.B,

21.35%,

10/18/24

...

2,298

2,268

L1873872.UP.FTS.B,

21.59%,

10/18/24

...

1,173

1,165

L1872932.UP.FTS.B,

21.9%,

10/18/24

....

14,179

14,009

L1873288.UP.FTS.B,

21.91%,

10/18/24

...

4,433

322

L1871398.UP.FTS.B,

22.03%,

10/18/24

...

1,538

1,451

L1873912.UP.FTS.B,

22.05%,

10/18/24

...

3,529

1,015

L1873367.UP.FTS.B,

22.09%,

10/18/24

...

1,027

1,016

L1873736.UP.FTS.B,

22.12%,

10/18/24

...

7,365

7,265

L1873171.UP.FTS.B,

22.25%,

10/18/24

...

1,474

1,457

FW1873087.UP.FTS.B,

22.36%,

10/18/24

.

1,474

1,461

FW1872256.UP.FTS.B,

22.75%,

10/18/24

.

4,271

308

L1873179.UP.FTS.B,

22.76%,

10/18/24

...

1,514

1,431

L1874384.UP.FTS.B,

23.32%,

10/18/24

...

1,407

1,388

FW1873765.UP.FTS.B,

23.44%,

10/18/24

.

4,366

4,314

L1874136.UP.FTS.B,

23.45%,

10/18/24

...

2,317

2,287

L1874372.UP.FTS.B,

23.49%,

10/18/24

...

1,724

1,693

FW1873053.UP.FTS.B,

23.65%,

10/18/24

.

1,630

1,612

L1872590.UP.FTS.B,

23.91%,

10/18/24

...

2,186

2,160

FW1874061.UP.FTS.B,

24.44%,

10/18/24

.

743

735

L1873402.UP.FTS.B,

25.1%,

10/18/24

....

4,710

4,647

FW1874479.UP.FTS.B,

26.04%,

10/18/24

.

2,884

435

FW1873991.UP.FTS.B,

27.32%,

10/18/24

.

2,459

369

FW1866558.UP.FTS.B,

27.33%,

10/18/24

.

3,758

3,717

FW1874223.UP.FTS.B,

27.57%,

10/18/24

.

495

486

FW1873960.UP.FTS.B,

28.04%,

10/18/24

.

3,557

3,493

FW1873200.UP.FTS.B,

28.1%,

10/18/24

..

1,885

1,864

FW1870326.UP.FTS.B,

28.36%,

10/18/24

.

7,546

7,462

FW1874036.UP.FTS.B,

28.84%,

10/18/24

.

1,814

1,790

FW1873257.UP.FTS.B,

28.88%,

10/18/24

.

952

67

FW1873386.UP.FTS.B,

29.18%,

10/18/24

.

757

748

L2009164.UP.FTS.B,

7.47%,

11/09/24

....

7,176

7,112

L2007742.UP.FTS.B,

8.31%,

11/09/24

....

1,801

1,784

L2005982.UP.FTS.B,

8.37%,

11/09/24

....

5,763

5,712

L2009147.UP.FTS.B,

8.62%,

11/09/24

....

1,442

1,429

FW2006255.UP.FTS.B,

8.72%,

11/09/24

..

1,876

1,859

L2006066.UP.FTS.B,

9.09%,

11/09/24

....

723

716

L2006429.UP.FTS.B,

9.93%,

11/09/24

....

36,253

35,934

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

154

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2006357.UP.FTS.B,

10.1%,

11/09/24

....

$

949

$

937

FW2005536.UP.FTS.B,

10.27%,

11/09/24

.

2,904

2,879

L2009057.UP.FTS.B,

10.3%,

11/09/24

....

8,714

8,638

L2007334.UP.FTS.B,

10.62%,

11/09/24

...

3,636

3,605

FW2006816.UP.FTS.B,

10.79%,

11/09/24

.

5,999

5,940

L2007501.UP.FTS.B,

10.81%,

11/09/24

...

4,734

649

FW2008742.UP.FTS.B,

11.03%,

11/09/24

.

7,284

7,218

L2009390.UP.FTS.B,

11.11%,

11/09/24

...

4,954

4,910

L2007022.UP.FTS.B,

11.29%,

11/09/24

...

1,458

1,445

FW1975632.UP.FTS.B,

11.37%,

11/09/24

.

2,261

2,241

L2009109.UP.FTS.B,

11.99%,

11/09/24

...

3,644

3,612

L1980258.UP.FTS.B,

12.16%,

11/09/24

...

15,952

15,814

L2008566.UP.FTS.B,

13.59%,

11/09/24

...

736

729

L2008572.UP.FTS.B,

13.72%,

11/09/24

...

4,209

4,168

L2000304.UP.FTS.B,

13.97%,

11/09/24

...

3,022

2,995

L2008598.UP.FTS.B,

14.12%,

11/09/24

...

2,213

2,193

L2009526.UP.FTS.B,

14.46%,

11/09/24

...

3,343

242

L2009600.UP.FTS.B,

14.49%,

11/09/24

...

3,694

3,657

L2007591.UP.FTS.B,

14.78%,

11/09/24

...

1,829

1,813

FW2004099.UP.FTS.B,

15.18%,

11/09/24

.

2,222

2,200

L2007837.UP.FTS.B,

15.4%,

11/09/24

....

3,436

218

L2009870.UP.FTS.B,

15.75%,

11/09/24

...

2,227

2,207

L2005874.UP.FTS.B,

15.93%,

11/09/24

...

12,627

12,502

L1964575.UP.FTS.B,

16.42%,

11/09/24

...

1,489

1,474

L2006407.UP.FTS.B,

16.56%,

11/09/24

...

5,958

5,899

L2009557.UP.FTS.B,

16.56%,

11/09/24

...

4,467

4,423

L2010209.UP.FTS.B,

16.76%,

11/09/24

...

3,555

260

FW2006915.UP.FTS.B,

17.05%,

11/09/24

.

1,492

1,477

L2008387.UP.FTS.B,

17.08%,

11/09/24

...

3,507

3,472

FW2008245.UP.FTS.B,

17.41%,

11/09/24

.

3,735

3,698

L2009227.UP.FTS.B,

17.41%,

11/09/24

...

2,615

2,589

L2007287.UP.FTS.B,

17.58%,

11/09/24

...

8,970

8,882

FW2006977.UP.FTS.B,

17.62%,

11/09/24

.

3,738

3,701

FW2008456.UP.FTS.B,

17.88%,

11/09/24

.

6,000

5,908

L2008995.UP.FTS.B,

18.45%,

11/09/24

...

104

8

L2006019.UP.FTS.B,

18.67%,

11/09/24

...

2,252

2,229

L2006884.UP.FTS.B,

18.86%,

11/09/24

...

6,745

6,678

FW2008385.UP.FTS.B,

19.08%,

11/09/24

.

1,894

1,871

L2008991.UP.FTS.B,

19.31%,

11/09/24

...

7,545

7,454

FW2009194.UP.FTS.B,

19.65%,

11/09/24

.

2,260

2,238

L2007944.UP.FTS.B,

19.85%,

11/09/24

...

2,714

2,674

L2004937.UP.FTS.B,

19.9%,

11/09/24

....

4,989

4,932

L2007765.UP.FTS.B,

19.9%,

11/09/24

....

5,136

5,075

L2005921.UP.FTS.B,

19.92%,

11/09/24

...

3,322

1,941

L2009435.UP.FTS.B,

20.15%,

11/09/24

...

12,454

12,269

L2004417.UP.FTS.B,

20.16%,

11/09/24

...

2,269

2,242

FW2008873.UP.FTS.B,

20.22%,

11/09/24

.

1,626

1,596

L2008874.UP.FTS.B,

20.27%,

11/09/24

...

7,526

7,413

L2007505.UP.FTS.B,

20.32%,

11/09/24

...

2,417

2,394

L2006510.UP.FTS.B,

20.49%,

11/09/24

...

4,157

4,117

L2007014.UP.FTS.B,

20.64%,

11/09/24

...

3,546

3,505

L2005439.UP.FTS.B,

20.7%,

11/09/24

....

1,367

1,344

L2010279.UP.FTS.B,

20.87%,

11/09/24

...

3,095

3,041

L2008398.UP.FTS.B,

20.91%,

11/09/24

...

2,271

2,237

L2004915.UP.FTS.B,

21%,

11/09/24

.....

7,574

7,462

L2009328.UP.FTS.B,

21.06%,

11/09/24

...

1,287

1,275

FW2010100.UP.FTS.B,

21.34%,

11/09/24

.

3,770

3,713

L2009663.UP.FTS.B,

21.46%,

11/09/24

...

3,807

3,743

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2008515.UP.FTS.B,

21.79%,

11/09/24

...

$

6,834

$

6,733

L2006419.UP.FTS.B,

22.06%,

11/09/24

...

761

752

L2008922.UP.FTS.B,

22.21%,

11/09/24

...

1,521

1,499

L2009367.UP.FTS.B,

22.33%,

11/09/24

...

6,848

6,747

L2009655.UP.FTS.B,

22.54%,

11/09/24

...

3,045

3,000

L2010143.UP.FTS.B,

22.58%,

11/09/24

...

1,669

1,645

L2009735.UP.FTS.B,

22.61%,

11/09/24

...

4,019

3,956

L2004913.UP.FTS.B,

22.66%,

11/09/24

...

6,071

5,980

FW2003014.UP.FTS.B,

22.75%,

11/09/24

.

13,336

13,139

L2009465.UP.FTS.B,

22.87%,

11/09/24

...

4,199

612

L2006957.UP.FTS.B,

23.01%,

11/09/24

...

1,080

1,062

L2007564.UP.FTS.B,

23.08%,

11/09/24

...

4,733

4,655

L2008674.UP.FTS.B,

23.54%,

11/09/24

...

4,153

603

FW2008479.UP.FTS.B,

24.13%,

11/09/24

.

3,971

3,897

FW2007173.UP.FTS.B,

24.62%,

11/09/24

.

807

473

FW2009937.UP.FTS.B,

26.34%,

11/09/24

.

3,446

3,385

FW2005316.UP.FTS.B,

26.93%,

11/09/24

.

773

762

FW2007706.UP.FTS.B,

28.18%,

11/09/24

.

1,165

1,148

FW2008048.UP.FTS.B,

28.27%,

11/09/24

.

777

766

FW2008337.UP.FTS.B,

28.31%,

11/09/24

.

3,110

3,065

FW2009522.UP.FTS.B,

28.31%,

11/09/24

.

7,600

1,098

FW2008565.UP.FTS.B,

28.92%,

11/09/24

.

3,136

3,085

FW2004867.UP.FTS.B,

29.1%,

11/09/24

..

5,110

(32)

L2079356.UP.FTS.B,

6.34%,

11/19/24

....

14,251

14,131

L2077512.UP.FTS.B,

6.51%,

11/19/24

....

3,574

3,544

L2077314.UP.FTS.B,

7.63%,

11/19/24

....

4,309

4,273

L2079482.UP.FTS.B,

7.7%,

11/19/24

.....

4,669

4,633

FW2078418.UP.FTS.B,

7.82%,

11/19/24

..

35,916

35,635

L2077413.UP.FTS.B,

8.09%,

11/19/24

....

3,086

3,060

L2077593.UP.FTS.B,

8.69%,

11/19/24

....

3,607

3,579

L2077781.UP.FTS.B,

10.54%,

11/19/24

...

1,589

1,577

L2078215.UP.FTS.B,

10.8%,

11/19/24

....

5,385

5,344

L2077816.UP.FTS.B,

11%,

11/19/24

.....

874

867

L2077041.UP.FTS.B,

11.38%,

11/19/24

...

3,632

3,605

L2080776.UP.FTS.B,

11.71%,

11/19/24

...

6,995

6,943

FW2077955.UP.FTS.B,

11.92%,

11/19/24

.

1,893

1,875

L2078813.UP.FTS.B,

13.69%,

11/19/24

...

6,280

6,208

L2076941.UP.FTS.B,

13.71%,

11/19/24

...

7,377

7,306

L2078440.UP.FTS.B,

13.79%,

11/19/24

...

3,097

3,071

L2072646.UP.FTS.B,

15.11%,

11/19/24

...

2,221

2,205

L2077920.UP.FTS.B,

15.31%,

11/19/24

...

3,705

3,678

L2076486.UP.FTS.B,

15.67%,

11/19/24

...

2,003

1,989

L2076313.UP.FTS.B,

15.86%,

11/19/24

...

965

958

L2079064.UP.FTS.B,

15.95%,

11/19/24

...

3,547

3,516

FW2076817.UP.FTS.B,

16.69%,

11/19/24

.

1,117

1,109

L2077907.UP.FTS.B,

17.76%,

11/19/24

...

3,468

251

L2077340.UP.FTS.B,

17.78%,

11/19/24

...

5,985

5,942

L2076392.UP.FTS.B,

18.07%,

11/19/24

...

4,048

98

L2077616.UP.FTS.B,

18.56%,

11/19/24

...

4,630

4,382

FW2078600.UP.FTS.B,

18.83%,

11/19/24

.

751

746

L2080023.UP.FTS.B,

19.49%,

11/19/24

...

7,402

1,086

L2077669.UP.FTS.B,

19.72%,

11/19/24

...

709

703

FW2076493.UP.FTS.B,

20.14%,

11/19/24

.

1,887

1,874

L2070757.UP.FTS.B,

20.15%,

11/19/24

...

1,359

1,349

L2077506.UP.FTS.B,

20.58%,

11/19/24

...

4,484

4,431

L2077765.UP.FTS.B,

21.13%,

11/19/24

...

783

740

L2080270.UP.FTS.B,

21.47%,

11/19/24

...

3,034

3,013

FW2078088.UP.FTS.B,

22.1%,

11/19/24

..

1,521

1,503

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

155

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2077458.UP.FTS.B,

22.17%,

11/19/24

...

$

5,970

$

152

L2073213.UP.FTS.B,

22.2%,

11/19/24

....

875

63

FW2079771.UP.FTS.B,

22.21%,

11/19/24

.

3,803

3,776

L2068552.UP.FTS.B,

22.21%,

11/19/24

...

1,836

1,812

L2079118.UP.FTS.B,

22.29%,

11/19/24

...

7,607

7,522

L2077140.UP.FTS.B,

22.69%,

11/19/24

...

4,629

4,576

L2077284.UP.FTS.B,

22.9%,

11/19/24

....

5,723

5,646

L2077715.UP.FTS.B,

23.03%,

11/19/24

...

1,214

342

L2074944.UP.FTS.B,

23.05%,

11/19/24

...

3,419

3,373

L2076512.UP.FTS.B,

23.14%,

11/19/24

...

4,432

321

FW2076824.UP.FTS.B,

23.23%,

11/19/24

.

2,443

2,426

L2077061.UP.FTS.B,

23.44%,

11/19/24

...

2,763

805

FW2078990.UP.FTS.B,

23.53%,

11/19/24

.

3,546

3,351

FW2078899.UP.FTS.B,

24.04%,

11/19/24

.

5,174

5,107

FW2080736.UP.FTS.B,

25.04%,

11/19/24

.

1,487

1,463

L2076355.UP.FTS.B,

25.17%,

11/19/24

...

5,215

5,157

FW2080449.UP.FTS.B,

25.53%,

11/19/24

.

5,708

1,661

FW2073639.UP.FTS.B,

25.65%,

11/19/24

.

2,271

2,244

FW2077101.UP.FTS.B,

27.6%,

11/19/24

..

3,358

238

FW2077958.UP.FTS.B,

27.77%,

11/19/24

.

7,757

7,671

FW2077645.UP.FTS.B,

27.94%,

11/19/24

.

1,926

1,904

FW2077222.UP.FTS.B,

28.34%,

11/19/24

.

4,663

4,612

FW2080054.UP.FTS.B,

30.2%,

11/19/24

..

2,205

2,169

L2197817.UP.FTS.B,

6.54%,

12/07/24

....

4,449

4,407

L2197814.UP.FTS.B,

6.94%,

12/07/24

....

1,485

1,471

L2192487.UP.FTS.B,

8.02%,

12/07/24

....

14,916

14,768

FW2198636.UP.FTS.B,

11.41%,

12/07/24

.

3,777

3,738

FW2196231.UP.FTS.B,

11.5%,

12/07/24

..

9,068

8,974

L2196723.UP.FTS.B,

12.12%,

12/07/24

...

4,923

4,872

L2196919.UP.FTS.B,

12.98%,

12/07/24

...

2,603

1,463

L2199259.UP.FTS.B,

13.19%,

12/07/24

...

3,422

3,386

FW2199236.UP.FTS.B,

13.4%,

12/07/24

..

1,141

1,130

L2152837.UP.FTS.B,

14.7%,

12/07/24

....

6,104

1,648

FW2196253.UP.FTS.B,

15.31%,

12/07/24

.

1,223

331

L2199973.UP.FTS.B,

16.17%,

12/07/24

...

2,306

2,277

L2196295.UP.FTS.B,

16.26%,

12/07/24

...

4,146

4,094

L2197093.UP.FTS.B,

16.43%,

12/07/24

...

4,045

3,989

L2198109.UP.FTS.B,

16.63%,

12/07/24

...

770

760

L2197668.UP.FTS.B,

17.17%,

12/07/24

...

1,928

1,904

FW2197769.UP.FTS.B,

17.83%,

12/07/24

.

1,948

1,920

L2196102.UP.FTS.B,

17.88%,

12/07/24

...

8,694

5,051

L2186564.UP.FTS.B,

18.32%,

12/07/24

...

9,136

666

L2199581.UP.FTS.B,

19.33%,

12/07/24

...

1,399

1,381

FW2200254.UP.FTS.B,

19.34%,

12/07/24

.

1,554

1,535

FW2199717.UP.FTS.B,

20.13%,

12/07/24

.

3,896

3,827

L2195358.UP.FTS.B,

20.15%,

12/07/24

...

779

769

L2198118.UP.FTS.B,

20.43%,

12/07/24

...

1,560

1,540

L2198032.UP.FTS.B,

20.55%,

12/07/24

...

3,121

3,066

L2196647.UP.FTS.B,

21.51%,

12/07/24

...

4,716

4,649

L2199295.UP.FTS.B,

21.7%,

12/07/24

....

1,958

1,923

L2199073.UP.FTS.B,

21.87%,

12/07/24

...

1,959

1,935

L2195775.UP.FTS.B,

22.71%,

12/07/24

...

1,179

1,156

L2197271.UP.FTS.B,

22.76%,

12/07/24

...

7,285

4,360

FW2198017.UP.FTS.B,

23.08%,

12/07/24

.

2,361

2,319

L2196613.UP.FTS.B,

23.35%,

12/07/24

...

5,256

5,162

FW2195695.UP.FTS.B,

24.83%,

12/07/24

.

3,939

3,869

FW2195888.UP.FTS.B,

24.84%,

12/07/24

.

706

691

FW2199208.UP.FTS.B,

25.58%,

12/07/24

.

3,117

3,061

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2195724.UP.FTS.B,

27.53%,

12/07/24

.

$

2,312

$

166

FW2198393.UP.FTS.B,

27.56%,

12/07/24

.

2,874

2,823

L2201298.UP.FTS.B,

6.04%,

12/08/24

....

1,375

1,362

L2203520.UP.FTS.B,

6.61%,

12/08/24

....

13,647

13,521

FW2201265.UP.FTS.B,

7.44%,

12/08/24

..

5,209

5,159

L2200896.UP.FTS.B,

7.68%,

12/08/24

....

5,214

5,160

L2204703.UP.FTS.B,

8.41%,

12/08/24

....

76

75

L2150213.UP.FTS.B,

8.58%,

12/08/24

....

4,569

4,523

L2200163.UP.FTS.B,

8.73%,

12/08/24

....

5,609

5,556

L2204262.UP.FTS.B,

8.78%,

12/08/24

....

1,496

1,481

L2202574.UP.FTS.B,

9.1%,

12/08/24

....

5,617

5,564

FW2206887.UP.FTS.B,

9.22%,

12/08/24

..

7,492

7,422

L2202371.UP.FTS.B,

9.29%,

12/08/24

....

1,124

1,114

L2202647.UP.FTS.B,

9.47%,

12/08/24

....

2,523

2,498

L2206982.UP.FTS.B,

9.5%,

12/08/24

....

753

746

L2201633.UP.FTS.B,

10.05%,

12/08/24

...

7,290

7,222

L2202275.UP.FTS.B,

10.28%,

12/08/24

...

15,044

14,904

L2206909.UP.FTS.B,

11.8%,

12/08/24

....

2,269

2,246

L2205399.UP.FTS.B,

11.81%,

12/08/24

...

755

747

L2201373.UP.FTS.B,

12.48%,

12/08/24

...

2,275

2,253

L2201983.UP.FTS.B,

12.68%,

12/08/24

...

6,081

6,017

L2206888.UP.FTS.B,

12.72%,

12/08/24

...

6,072

6,014

L2202614.UP.FTS.B,

12.88%,

12/08/24

...

6,076

6,012

L2200458.UP.FTS.B,

12.89%,

12/08/24

...

4,705

4,656

L2200431.UP.FTS.B,

13.28%,

12/08/24

...

4,372

2,462

L2205143.UP.FTS.B,

13.35%,

12/08/24

...

2,282

2,260

L2202863.UP.FTS.B,

13.37%,

12/08/24

...

4,553

4,509

L2204453.UP.FTS.B,

13.74%,

12/08/24

...

2,286

2,264

L2204038.UP.FTS.B,

14.23%,

12/08/24

...

7,602

7,528

FW2200839.UP.FTS.B,

14.26%,

12/08/24

.

4,951

4,897

L2201794.UP.FTS.B,

14.37%,

12/08/24

...

6,491

6,415

L2204310.UP.FTS.B,

14.38%,

12/08/24

...

764

756

L2203131.UP.FTS.B,

15.07%,

12/08/24

...

2,917

2,874

FW2198905.UP.FTS.B,

15.38%,

12/08/24

.

3,832

3,787

L2192030.UP.FTS.B,

15.79%,

12/08/24

...

5,833

5,765

L2205721.UP.FTS.B,

15.97%,

12/08/24

...

5,325

389

L2202823.UP.FTS.B,

16.25%,

12/08/24

...

1,791

1,766

L2199002.UP.FTS.B,

16.29%,

12/08/24

...

1,845

1,824

L2201862.UP.FTS.B,

17%,

12/08/24

.....

3,854

3,809

L2204481.UP.FTS.B,

17.12%,

12/08/24

...

3,843

3,770

L2201197.UP.FTS.B,

17.52%,

12/08/24

...

5,072

371

L2200703.UP.FTS.B,

17.76%,

12/08/24

...

561

551

L2202850.UP.FTS.B,

17.99%,

12/08/24

...

1,464

1,445

L2202296.UP.FTS.B,

18.33%,

12/08/24

...

1,472

1,453

FW2201612.UP.FTS.B,

18.99%,

12/08/24

.

1,552

1,534

L2206681.UP.FTS.B,

19.32%,

12/08/24

...

2,880

2,841

L2204182.UP.FTS.B,

19.36%,

12/08/24

...

6,994

6,914

L2203811.UP.FTS.B,

19.85%,

12/08/24

...

2,348

2,317

L2201390.UP.FTS.B,

19.92%,

12/08/24

...

9,346

9,219

L2201524.UP.FTS.B,

19.94%,

12/08/24

...

4,674

4,587

FW2206245.UP.FTS.B,

20.03%,

12/08/24

.

1,173

1,157

L2203066.UP.FTS.B,

20.07%,

12/08/24

...

13,538

13,358

FW2201021.UP.FTS.B,

20.28%,

12/08/24

.

770

108

FW2201750.UP.FTS.B,

20.37%,

12/08/24

.

1,560

1,542

L2201072.UP.FTS.B,

20.37%,

12/08/24

...

2,729

2,698

L2202128.UP.FTS.B,

20.41%,

12/08/24

...

3,055

1,775

FW2205926.UP.FTS.B,

21.09%,

12/08/24

.

2,006

1,164

FW2203151.UP.FTS.B,

21.13%,

12/08/24

.

3,284

3,229

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

156

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2206755.UP.FTS.B,

21.25%,

12/08/24

...

$

1,330

$

1,314

L2192296.UP.FTS.B,

21.33%,

12/08/24

...

3,495

78

L2202392.UP.FTS.B,

21.41%,

12/08/24

...

3,521

3,463

L2206735.UP.FTS.B,

21.46%,

12/08/24

...

3,913

3,869

L2180897.UP.FTS.B,

21.81%,

12/08/24

...

6,264

6,160

FW2201886.UP.FTS.B,

21.86%,

12/08/24

.

1,426

1,406

L2203505.UP.FTS.B,

22.57%,

12/08/24

...

14,015

246

FW2206827.UP.FTS.B,

22.71%,

12/08/24

.

3,930

3,865

L2202398.UP.FTS.B,

23.19%,

12/08/24

...

5,510

5,419

FW2206155.UP.FTS.B,

23.2%,

12/08/24

..

1,469

1,441

L2200082.UP.FTS.B,

23.29%,

12/08/24

...

2,495

2,453

L2201277.UP.FTS.B,

23.37%,

12/08/24

...

2,617

2,570

FW2202263.UP.FTS.B,

23.94%,

12/08/24

.

1,197

1,176

FW2206719.UP.FTS.B,

24.2%,

12/08/24

..

9,433

9,276

L2202471.UP.FTS.B,

24.95%,

12/08/24

...

10,382

2,960

FW2176932.UP.FTS.B,

25.88%,

12/08/24

.

1,990

1,954

FW2202124.UP.FTS.B,

26.35%,

12/08/24

.

3,782

1,079

FW2203707.UP.FTS.B,

26.53%,

12/08/24

.

3,093

3,039

FW2201104.UP.FTS.B,

26.62%,

12/08/24

.

796

782

FW2201792.UP.FTS.B,

27.21%,

12/08/24

.

2,791

2,745

FW2201560.UP.FTS.B,

28.51%,

12/08/24

.

1,681

1,654

FW2204026.UP.FTS.B,

28.52%,

12/08/24

.

6,405

6,301

FW2205860.UP.FTS.B,

28.57%,

12/08/24

.

1,687

1,657

FW2202524.UP.FTS.B,

28.64%,

12/08/24

.

1,495

897

FW2201579.UP.FTS.B,

28.82%,

12/08/24

.

2,484

2,444

FW2201851.UP.FTS.B,

28.82%,

12/08/24

.

1,443

1,419

FW2205439.UP.FTS.B,

29.01%,

12/08/24

.

2,567

2,521

L2382768.UP.FTS.B,

5.08%,

1/11/25

.....

1,086

1,075

L2413126.UP.FTS.B,

5.21%,

1/11/25

.....

3,057

3,029

L2411924.UP.FTS.B,

5.26%,

1/11/25

.....

4,587

4,545

L2411777.UP.FTS.B,

5.56%,

1/11/25

.....

6,887

6,824

L2411090.UP.FTS.B,

5.74%,

1/11/25

.....

5,360

5,311

L2412107.UP.FTS.B,

6.11%,

1/11/25

.....

2,300

2,279

L2413813.UP.FTS.B,

6.18%,

1/11/25

.....

2,301

2,280

L2413053.UP.FTS.B,

6.21%,

1/11/25

.....

4,602

4,560

L2408176.UP.FTS.B,

6.75%,

1/11/25

.....

749

742

L2412917.UP.FTS.B,

6.87%,

1/11/25

.....

2,306

2,285

L2411645.UP.FTS.B,

6.95%,

1/11/25

.....

3,470

3,437

L2412167.UP.FTS.B,

7.12%,

1/11/25

.....

3,078

3,050

FW2409367.UP.FTS.B,

7.16%,

1/11/25

...

1,798

132

L2410776.UP.FTS.B,

7.38%,

1/11/25

.....

4,621

4,577

FW2411155.UP.FTS.B,

7.59%,

1/11/25

...

2,921

2,894

L2413637.UP.FTS.B,

7.76%,

1/11/25

.....

2,232

2,209

L2402281.UP.FTS.B,

7.89%,

1/11/25

.....

15,381

15,240

FW2408203.UP.FTS.B,

8.04%,

1/11/25

...

2,316

2,293

L2407274.UP.FTS.B,

8.11%,

1/11/25

.....

1,665

1,649

FW2413171.UP.FTS.B,

8.15%,

1/11/25

...

2,316

2,294

L2413751.UP.FTS.B,

8.33%,

1/11/25

.....

1,927

1,909

L2402983.UP.FTS.B,

8.56%,

1/11/25

.....

2,088

2,068

L2412008.UP.FTS.B,

8.58%,

1/11/25

.....

7,733

7,660

FW2408763.UP.FTS.B,

8.69%,

1/11/25

...

4,972

4,923

L2407827.UP.FTS.B,

8.84%,

1/11/25

.....

2,783

2,756

L2410161.UP.FTS.B,

9.06%,

1/11/25

.....

1,549

1,534

L2407027.UP.FTS.B,

9.18%,

1/11/25

.....

3,487

3,454

L2411609.UP.FTS.B,

9.19%,

1/11/25

.....

1,550

1,535

L2408028.UP.FTS.B,

9.2%,

1/11/25

......

2,703

2,677

L2405780.UP.FTS.B,

9.56%,

1/11/25

.....

1,764

966

FW2412135.UP.FTS.B,

10.19%,

1/11/25

..

1,553

1,538

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2413510.UP.FTS.B,

10.29%,

1/11/25

....

$

12,834

$

12,712

L2411555.UP.FTS.B,

10.32%,

1/11/25

....

3,500

3,467

L2408096.UP.FTS.B,

10.52%,

1/11/25

....

3,210

3,178

FW2412813.UP.FTS.B,

10.67%,

1/11/25

..

779

771

L2411669.UP.FTS.B,

10.84%,

1/11/25

....

1,559

1,543

FW2410432.UP.FTS.B,

10.89%,

1/11/25

..

3,897

3,858

L2411242.UP.FTS.B,

10.89%,

1/11/25

....

2,426

2,402

L2413320.UP.FTS.B,

11.28%,

1/11/25

....

15,607

15,460

L2405109.UP.FTS.B,

11.47%,

1/11/25

....

1,171

1,160

FW2412630.UP.FTS.B,

12.03%,

1/11/25

..

2,570

358

FW2409055.UP.FTS.B,

12.38%,

1/11/25

..

853

844

L2412366.UP.FTS.B,

12.6%,

1/11/25

.....

784

776

L2408103.UP.FTS.B,

12.61%,

1/11/25

....

1,959

1,940

FW2412082.UP.FTS.B,

12.62%,

1/11/25

..

4,119

4,075

L2410850.UP.FTS.B,

13.07%,

1/11/25

....

1,177

1,166

L2412558.UP.FTS.B,

13.17%,

1/11/25

....

1,178

1,166

L2410120.UP.FTS.B,

14.05%,

1/11/25

....

1,575

1,560

FW2412033.UP.FTS.B,

14.09%,

1/11/25

..

2,756

2,729

L2410413.UP.FTS.B,

14.16%,

1/11/25

....

11,816

11,669

L2409499.UP.FTS.B,

14.28%,

1/11/25

....

5,516

5,462

L2397480.UP.FTS.B,

15.09%,

1/11/25

....

6,655

6,580

L2408428.UP.FTS.B,

15.76%,

1/11/25

....

7,916

7,818

L2410798.UP.FTS.B,

15.99%,

1/11/25

....

7,924

7,825

FW2413230.UP.FTS.B,

16.04%,

1/11/25

..

5,230

5,165

FW2413492.UP.FTS.B,

16.11%,

1/11/25

..

1,184

1,169

FW2411395.UP.FTS.B,

16.37%,

1/11/25

..

2,378

2,349

L2407096.UP.FTS.B,

16.55%,

1/11/25

....

18,653

18,421

L2409614.UP.FTS.B,

17.29%,

1/11/25

....

4,853

4,793

L2411442.UP.FTS.B,

17.42%,

1/11/25

....

15,122

14,935

L2409234.UP.FTS.B,

17.51%,

1/11/25

....

2,388

2,359

L2407062.UP.FTS.B,

17.52%,

1/11/25

....

1,353

1,337

L2411946.UP.FTS.B,

17.59%,

1/11/25

....

6,928

6,842

L2405533.UP.FTS.B,

18.22%,

1/11/25

....

8,354

4,867

L2412453.UP.FTS.B,

19.73%,

1/11/25

....

25,389

25,038

L2412506.UP.FTS.B,

19.8%,

1/11/25

.....

7,537

7,443

L2407256.UP.FTS.B,

20.21%,

1/11/25

....

5,619

5,523

L2411253.UP.FTS.B,

20.46%,

1/11/25

....

1,607

1,587

FW2410096.UP.FTS.B,

20.55%,

1/11/25

..

868

124

L2413715.UP.FTS.B,

20.58%,

1/11/25

....

804

794

FW2407665.UP.FTS.B,

20.61%,

1/11/25

..

20,093

19,750

FW2388641.UP.FTS.B,

21.09%,

1/11/25

..

805

795

FW2411559.UP.FTS.B,

21.14%,

1/11/25

..

2,012

1,987

L2401534.UP.FTS.B,

21.34%,

1/11/25

....

9,655

9,535

L2413329.UP.FTS.B,

21.38%,

1/11/25

....

12,780

3,654

FW2410280.UP.FTS.B,

22.2%,

1/11/25

...

1,535

437

L2410058.UP.FTS.B,

22.27%,

1/11/25

....

8,600

8,492

L2411551.UP.FTS.B,

22.31%,

1/11/25

....

3,012

219

L2413428.UP.FTS.B,

23.28%,

1/11/25

....

1,053

1,035

L2407636.UP.FTS.B,

23.33%,

1/11/25

....

973

956

FW2411472.UP.FTS.B,

24.01%,

1/11/25

..

7,622

4,583

FW2408676.UP.FTS.B,

24.16%,

1/11/25

..

3,575

3,514

FW2411482.UP.FTS.B,

24.41%,

1/11/25

..

6,178

6,073

FW2410949.UP.FTS.B,

25.16%,

1/11/25

..

1,222

1,201

FW2408865.UP.FTS.B,

25.5%,

1/11/25

...

1,809

1,768

L2410557.UP.FTS.B,

26.28%,

1/11/25

....

2,043

2,008

FW2409120.UP.FTS.B,

26.65%,

1/11/25

..

4,089

4,020

FW2412539.UP.FTS.B,

27.71%,

1/11/25

..

4,102

4,031

FW2411088.UP.FTS.B,

28.45%,

1/11/25

..

1,644

1,616

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

157

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2412560.UP.FTS.B,

28.48%,

1/11/25

..

$

4,439

$

4,363

FW2412871.UP.FTS.B,

28.66%,

1/11/25

..

1,645

1,617

FW2410693.UP.FTS.B,

28.78%,

1/11/25

..

7,499

7,367

FW2413084.UP.FTS.B,

29.03%,

1/11/25

..

1,970

288

FW2412449.UP.FTS.B,

29.08%,

1/11/25

..

23,710

23,273

FW2408892.UP.FTS.B,

33.73%,

1/11/25

..

3,938

3,867

L2415563.UP.FTS.B,

5.17%,

1/12/25

....

5,732

5,681

L2415408.UP.FTS.B,

5.38%,

1/12/25

....

7,343

7,277

L2398487.UP.FTS.B,

5.43%,

1/12/25

....

26,775

26,540

L2418369.UP.FTS.B,

5.69%,

1/12/25

....

1,148

1,138

L2414426.UP.FTS.B,

5.8%,

1/12/25

.....

1,149

1,139

FW2419630.UP.FTS.B,

6.3%,

1/12/25

....

767

761

L2420304.UP.FTS.B,

6.48%,

1/12/25

....

1,925

1,908

L2419347.UP.FTS.B,

6.78%,

1/12/25

....

6,533

6,476

L2416428.UP.FTS.B,

6.81%,

1/12/25

....

1,537

1,524

FW2414692.UP.FTS.B,

6.84%,

1/12/25

...

1,537

1,524

L2418759.UP.FTS.B,

6.94%,

1/12/25

....

6,816

6,757

L2419328.UP.FTS.B,

7.52%,

1/12/25

....

5,393

5,347

L2415914.UP.FTS.B,

7.64%,

1/12/25

....

2,698

2,674

L2419517.UP.FTS.B,

7.68%,

1/12/25

....

5,105

699

FW2418816.UP.FTS.B,

7.73%,

1/12/25

...

4,627

4,585

L2419589.UP.FTS.B,

7.74%,

1/12/25

....

11,566

11,462

L2416890.UP.FTS.B,

7.78%,

1/12/25

....

4,858

4,815

FW2417431.UP.FTS.B,

7.8%,

1/12/25

....

9,177

671

L2419183.UP.FTS.B,

8%,

1/12/25

.......

2,470

2,449

FW2416518.UP.FTS.B,

8.11%,

1/12/25

...

3,860

3,826

L2417943.UP.FTS.B,

8.11%,

1/12/25

.....

3,860

3,826

L2414073.UP.FTS.B,

8.79%,

1/12/25

....

1,696

1,681

L2415019.UP.FTS.B,

8.85%,

1/12/25

....

1,548

1,534

L2416430.UP.FTS.B,

9.01%,

1/12/25

....

3,872

3,838

L2414074.UP.FTS.B,

9.04%,

1/12/25

....

11,618

11,515

FW2416507.UP.FTS.B,

9.11%,

1/12/25

...

3,719

3,686

L2417145.UP.FTS.B,

9.34%,

1/12/25

....

853

845

L2417687.UP.FTS.B,

9.43%,

1/12/25

....

830

820

L2415812.UP.FTS.B,

9.44%,

1/12/25

....

4,176

4,139

L2417726.UP.FTS.B,

9.57%,

1/12/25

....

3,881

3,846

L2414740.UP.FTS.B,

9.6%,

1/12/25

.....

1,241

319

FW2413836.UP.FTS.B,

10.39%,

1/12/25

..

1,938

1,920

L2396686.UP.FTS.B,

10.42%,

1/12/25

....

3,891

3,857

FW2419415.UP.FTS.B,

10.5%,

1/12/25

...

1,608

882

FW2416931.UP.FTS.B,

10.8%,

1/12/25

...

8,570

8,493

L2414847.UP.FTS.B,

11.02%,

1/12/25

....

8,577

8,499

L2414221.UP.FTS.B,

11.17%,

1/12/25

....

3,900

3,865

L2417964.UP.FTS.B,

11.38%,

1/12/25

....

4,643

341

FW2416547.UP.FTS.B,

11.39%,

1/12/25

..

2,264

2,244

L2420369.UP.FTS.B,

11.76%,

1/12/25

....

14,466

14,317

L2415059.UP.FTS.B,

12.06%,

1/12/25

....

1,322

72

L2413961.UP.FTS.B,

13.69%,

1/12/25

....

3,002

2,973

L2414544.UP.FTS.B,

14.43%,

1/12/25

....

1,972

1,955

L2411232.UP.FTS.B,

15.21%,

1/12/25

....

22,922

22,723

L2419075.UP.FTS.B,

17.01%,

1/12/25

....

1,590

1,572

L2418199.UP.FTS.B,

17.24%,

1/12/25

....

389

381

L2417700.UP.FTS.B,

17.92%,

1/12/25

....

3,189

3,153

FW2417716.UP.FTS.B,

18.03%,

1/12/25

..

1,991

1,969

FW2416853.UP.FTS.B,

18.35%,

1/12/25

..

5,579

5,517

L2418715.UP.FTS.B,

19.25%,

1/12/25

....

4,002

3,958

L2419498.UP.FTS.B,

19.45%,

1/12/25

....

8,247

4,796

L2417349.UP.FTS.B,

20.05%,

1/12/25

....

1,591

1,573

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2416638.UP.FTS.B,

22.19%,

1/12/25

..

$

8,075

$

7,951

L2417218.UP.FTS.B,

22.21%,

1/12/25

....

3,090

3,053

L2414519.UP.FTS.B,

22.88%,

1/12/25

....

2,670

2,629

L2418909.UP.FTS.B,

22.9%,

1/12/25

....

918

899

L2414032.UP.FTS.B,

23.21%,

1/12/25

....

2,245

2,220

L2352635.UP.FTS.B,

23.27%,

1/12/25

....

6,063

5,970

FW2414761.UP.FTS.B,

23.39%,

1/12/25

..

809

797

L2412538.UP.FTS.B,

23.48%,

1/12/25

....

3,266

3,212

FW2417500.UP.FTS.B,

23.65%,

1/12/25

..

1,602

1,577

FW2414957.UP.FTS.B,

23.71%,

1/12/25

..

9,666

9,559

FW2414041.UP.FTS.B,

23.78%,

1/12/25

..

3,245

3,195

FW2416686.UP.FTS.B,

24.84%,

1/12/25

..

1,966

1,934

FW2418415.UP.FTS.B,

26.15%,

1/12/25

..

12,144

11,954

FW2414169.UP.FTS.B,

26.75%,

1/12/25

..

5,167

368

FW2415083.UP.FTS.B,

27.47%,

1/12/25

..

4,938

4,857

FW2414437.UP.FTS.B,

27.76%,

1/12/25

..

2,461

2,424

FW2415206.UP.FTS.B,

28.53%,

1/12/25

..

8,928

1,331

FW2417255.UP.FTS.B,

33.33%,

1/12/25

..

2,600

183

FW2635737.UP.FTS.B,

5.82%,

2/15/25

...

2,873

2,705

L2636718.UP.FTS.B,

6.51%,

2/15/25

....

751

745

L2631679.UP.FTS.B,

6.61%,

2/15/25

....

3,967

3,932

L2632890.UP.FTS.B,

6.77%,

2/15/25

....

7,939

7,870

L2634175.UP.FTS.B,

6.95%,

2/15/25

....

7,158

7,096

L2634671.UP.FTS.B,

8.48%,

2/15/25

....

27,959

27,707

L2634533.UP.FTS.B,

8.5%,

2/15/25

.....

15,977

15,833

L2634613.UP.FTS.B,

8.55%,

2/15/25

....

5,590

5,540

L2633581.UP.FTS.B,

9.23%,

2/15/25

....

1,678

1,663

FW2634377.UP.FTS.B,

10%,

2/15/25

....

802

795

L2634177.UP.FTS.B,

15.21%,

2/15/25

....

1,792

1,770

L2636760.UP.FTS.B,

15.98%,

2/15/25

....

11,084

10,444

FW2634284.UP.FTS.B,

16.22%,

2/15/25

..

8,168

8,070

L2634751.UP.FTS.B,

16.31%,

2/15/25

....

1,552

1,538

L2631912.UP.FTS.B,

16.39%,

2/15/25

....

4,903

4,844

L2636882.UP.FTS.B,

16.54%,

2/15/25

....

4,497

4,443

L2632664.UP.FTS.B,

17.32%,

2/15/25

....

819

809

L2635618.UP.FTS.B,

17.92%,

2/15/25

....

3,114

451

L2633074.UP.FTS.B,

18.31%,

2/15/25

....

3,618

3,552

L2634161.UP.FTS.B,

18.39%,

2/15/25

....

3,451

3,409

L2631294.UP.FTS.B,

19.11%,

2/15/25

....

823

813

L2632627.UP.FTS.B,

20.79%,

2/15/25

....

8,270

8,136

L2634669.UP.FTS.B,

20.85%,

2/15/25

....

8,602

8,463

L2631763.UP.FTS.B,

20.93%,

2/15/25

....

7,191

7,104

FW2636107.UP.FTS.B,

21.14%,

2/15/25

..

8,159

8,005

FW2631365.UP.FTS.B,

21.86%,

2/15/25

..

5,390

5,303

FW2637244.UP.FTS.B,

22.65%,

2/15/25

..

831

818

L2635358.UP.FTS.B,

24.79%,

2/15/25

....

6,674

(26)

FW2633708.UP.FTS.B,

25.99%,

2/15/25

..

5,447

5,359

FW2631136.UP.FTS.B,

27.13%,

2/15/25

..

1,465

1,437

FW2631651.UP.FTS.B,

27.52%,

2/15/25

..

5,467

5,379

FW2635191.UP.FTS.B,

29%,

2/15/25

....

3,458

1,016

FW2634333.UP.FTS.B,

29.01%,

2/15/25

..

32,077

31,557

FW2631826.UP.FTS.B,

31.23%,

2/15/25

..

4,510

4,433

L2639657.UP.FTS.B,

5.92%,

2/16/25

....

1,189

1,179

L2639334.UP.FTS.B,

6.42%,

2/16/25

....

5,963

5,906

FW2638680.UP.FTS.B,

7.01%,

2/16/25

...

1,750

1,735

L2639360.UP.FTS.B,

7.14%,

2/16/25

....

9,399

9,309

L2643179.UP.FTS.B,

7.28%,

2/16/25

....

3,867

3,835

L2637484.UP.FTS.B,

7.65%,

2/16/25

....

3,426

3,399

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

158

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2639542.UP.FTS.B,

8.21%,

2/16/25

....

$

1,968

$

1,952

L2638987.UP.FTS.B,

9.25%,

2/16/25

....

1,863

1,846

L2642308.UP.FTS.B,

10.18%,

2/16/25

....

8,028

7,962

FW2644636.UP.FTS.B,

10.31%,

2/16/25

..

801

794

L2640736.UP.FTS.B,

10.49%,

2/16/25

....

1,205

1,195

FW2639791.UP.FTS.B,

11.24%,

2/16/25

..

4,027

3,993

FW2644605.UP.FTS.B,

13.5%,

2/16/25

...

8,106

8,040

FW2640049.UP.FTS.B,

13.66%,

2/16/25

..

8,679

8,609

FW2641858.UP.FTS.B,

14.06%,

2/16/25

..

4,433

4,384

FW2640344.UP.FTS.B,

14.17%,

2/16/25

..

2,059

1,944

L2644835.UP.FTS.B,

14.27%,

2/16/25

....

10,924

10,314

L2639914.UP.FTS.B,

14.3%,

2/16/25

....

5,687

5,625

L2573704.UP.FTS.B,

14.5%,

2/16/25

....

3,252

3,216

FW2642814.UP.FTS.B,

15.64%,

2/16/25

..

4,498

4,444

L2644825.UP.FTS.B,

15.86%,

2/16/25

....

1,404

1,379

FW2642902.UP.FTS.B,

16.38%,

2/16/25

..

7,526

548

L2640305.UP.FTS.B,

16.68%,

2/16/25

....

5,318

5,261

FW2644294.UP.FTS.B,

16.92%,

2/16/25

..

2,701

2,672

FW2639338.UP.FTS.B,

17.66%,

2/16/25

..

8,185

8,096

FW2639899.UP.FTS.B,

18.71%,

2/16/25

..

8,464

7,989

L2641019.UP.FTS.B,

18.97%,

2/16/25

....

12,345

12,214

L2639930.UP.FTS.B,

19.1%,

2/16/25

....

1,811

1,792

L2644145.UP.FTS.B,

19.28%,

2/16/25

....

2,135

2,015

L2637891.UP.FTS.B,

19.29%,

2/16/25

....

6,388

6,314

FW2639706.UP.FTS.B,

19.94%,

2/16/25

..

5,281

5,204

L2641952.UP.FTS.B,

19.98%,

2/16/25

....

3,631

3,593

L2641810.UP.FTS.B,

22.34%,

2/16/25

....

1,609

1,555

FW2643292.UP.FTS.B,

23.05%,

2/16/25

..

4,076

4,017

L2639553.UP.FTS.B,

23.86%,

2/16/25

....

9,336

9,202

FW2639697.UP.FTS.B,

24.32%,

2/16/25

..

1,419

1,399

FW2638912.UP.FTS.B,

24.71%,

2/16/25

..

2,005

1,976

FW2643827.UP.FTS.B,

25.41%,

2/16/25

..

4,184

4,125

FW2643384.UP.FTS.B,

26.02%,

2/16/25

..

3,485

3,430

L2627901.UP.FTS.B,

28.31%,

2/16/25

....

11,883

11,716

L2644671.UP.FTS.B,

5.08%,

2/17/25

....

7,903

7,838

L2645028.UP.FTS.B,

11.5%,

2/17/25

.....

2,821

2,798

FW2645054.UP.FTS.B,

11.7%,

2/17/25

...

6,164

6,109

L2604120.UP.FTS.B,

17.7%,

2/17/25

....

8,219

8,123

FW2645759.UP.FTS.B,

24.75%,

2/17/25

..

8,354

8,238

FW2645634.UP.FTS.B,

29.15%,

2/17/25

..

2,022

144

FW1873354.UP.FTS.B,

20.69%,

3/18/25

..

1,275

364

L1869314.UP.FTS.B,

21.8%,

3/18/25

....

4,261

4,006

FW1872890.UP.FTS.B,

24.47%,

3/18/25

..

847

834

L2006292.UP.FTS.B,

11.48%,

4/09/25

....

2,169

2,149

L2007212.UP.FTS.B,

15.12%,

4/09/25

....

5,326

3,075

L2006010.UP.FTS.B,

18.05%,

4/09/25

....

1,103

1,087

L2006605.UP.FTS.B,

21.13%,

4/09/25

....

9,250

669

L2009467.UP.FTS.B,

22.96%,

4/09/25

....

2,988

(20)

FW2008582.UP.FTS.B,

28.77%,

4/09/25

..

883

868

FW2078328.UP.FTS.B,

19.87%,

4/19/25

..

3,862

3,827

L2078933.UP.FTS.B,

22.16%,

4/19/25

....

10,161

9,609

L2197032.UP.FTS.B,

22.34%,

5/07/25

....

1,822

1,786

L2205597.UP.FTS.B,

19.53%,

5/08/25

....

1,864

511

L2204817.UP.FTS.B,

21.24%,

5/08/25

....

4,473

2,663

FW2201445.UP.FTS.B,

27.41%,

5/08/25

..

4,362

4,281

FW2408831.UP.FTS.B,

10.24%,

6/11/25

..

3,741

3,711

FW2412930.UP.FTS.B,

12.99%,

6/11/25

..

4,141

4,099

FW2410127.UP.FTS.B,

20.85%,

6/11/25

..

867

852

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2415625.UP.FTS.B,

8.97%,

6/12/25

....

$

2,604

$

2,580

FW2417137.UP.FTS.B,

28.46%,

6/12/25

..

8,436

8,300

FW2631536.UP.FTS.B,

18.63%,

7/15/25

..

1,096

1,032

FW2639247.UP.FTS.B,

27.74%,

7/16/25

..

6,673

6,290

FW1873996.UP.FTS.B,

28.24%,

8/18/25

..

4,446

4,188

FW1872459.UP.FTS.B,

28.31%,

8/18/25

..

748

739

FW2009505.UP.FTS.B,

26.53%,

9/09/25

..

2,465

2,421

FW2005459.UP.FTS.B,

26.79%,

9/09/25

..

827

812

L2195122.UP.FTS.B,

20.26%,

10/07/25

...

4,352

4,284

FW2418164.UP.FTS.B,

9.41%,

11/12/25

..

1,953

1,935

FW2414944.UP.FTS.B,

29.31%,

11/12/25

.

2,266

2,229

L1708948.UP.FTS.B,

7.47%,

9/14/26

....

7,323

7,266

L1709252.UP.FTS.B,

8.33%,

9/14/26

....

8,170

8,107

L1711804.UP.FTS.B,

9.08%,

9/14/26

.....

8,198

8,136

L1709773.UP.FTS.B,

9.1%,

9/14/26

.....

1,640

1,627

L1709466.UP.FTS.B,

9.12%,

9/14/26

....

9,014

8,945

L1711063.UP.FTS.B,

9.57%,

9/14/26

.....

11,504

11,416

L1711325.UP.FTS.B,

9.58%,

9/14/26

.....

13,969

13,863

L1710250.UP.FTS.B,

9.72%,

9/14/26

....

6,578

6,514

L1710722.UP.FTS.B,

9.73%,

9/14/26

....

16,447

16,321

L1709358.UP.FTS.B,

10.97%,

9/14/26

....

35,028

34,680

L1711260.UP.FTS.B,

11.26%,

9/14/26

....

1,659

1,642

L1709982.UP.FTS.B,

11.59%,

9/14/26

....

9,951

9,855

FW1711975.UP.FTS.B,

11.76%,

9/14/26

..

22,407

22,191

L1711112.UP.FTS.B,

12.03%,

9/14/26

....

16,619

16,451

FW1709227.UP.FTS.B,

12.04%,

9/14/26

..

1,403

1,386

L1711960.UP.FTS.B,

12.48%,

9/14/26

....

2,498

2,473

L1708544.UP.FTS.B,

12.57%,

9/14/26

....

3,320

3,288

L1709990.UP.FTS.B,

12.82%,

9/14/26

....

2,044

2,024

FW1709162.UP.FTS.B,

13.06%,

9/14/26

..

7,511

7,439

L1709442.UP.FTS.B,

13.19%,

9/14/26

....

41,753

41,351

L1712219.UP.FTS.B,

13.34%,

9/14/26

....

2,993

2,960

L1711120.UP.FTS.B,

13.48%,

9/14/26

....

5,351

5,300

L1711626.UP.FTS.B,

13.98%,

9/14/26

....

16,758

16,598

L1712525.UP.FTS.B,

14.32%,

9/14/26

....

3,387

867

L1705354.UP.FTS.B,

14.33%,

9/14/26

....

20,140

19,947

L1709686.UP.FTS.B,

14.5%,

9/14/26

....

16,795

16,635

L1712030.UP.FTS.B,

15.05%,

9/14/26

....

2,525

2,493

L1709833.UP.FTS.B,

15.27%,

9/14/26

....

10,109

9,980

FW1711888.UP.FTS.B,

15.29%,

9/14/26

..

8,425

8,317

L1711759.UP.FTS.B,

15.35%,

9/14/26

....

8,434

8,319

L1711137.UP.FTS.B,

15.58%,

9/14/26

....

2,719

197

FW1710596.UP.FTS.B,

15.85%,

9/14/26

..

4,222

4,168

L1710000.UP.FTS.B,

16.05%,

9/14/26

....

16,903

16,687

FW1711241.UP.FTS.B,

16.08%,

9/14/26

..

3,381

3,338

L1707201.UP.FTS.B,

16.24%,

9/14/26

....

12,687

12,525

L1708577.UP.FTS.B,

16.66%,

9/14/26

....

5,985

5,898

L1711658.UP.FTS.B,

16.72%,

9/14/26

....

2,574

1,437

L1710867.UP.FTS.B,

16.91%,

9/14/26

....

3,392

3,349

FW1709135.UP.FTS.B,

16.99%,

9/14/26

..

4,242

4,188

L1709613.UP.FTS.B,

17.03%,

9/14/26

....

2,546

2,513

L1711610.UP.FTS.B,

17.32%,

9/14/26

....

21,236

20,911

L1708807.UP.FTS.B,

17.72%,

9/14/26

....

8,508

8,399

L1711190.UP.FTS.B,

17.79%,

9/14/26

....

5,532

5,447

L1710981.UP.FTS.B,

17.81%,

9/14/26

....

8,584

8,448

L1710421.UP.FTS.B,

18.12%,

9/14/26

....

13,065

12,843

L1710484.UP.FTS.B,

18.16%,

9/14/26

....

7,015

1,939

FW1712049.UP.FTS.B,

18.25%,

9/14/26

..

4,604

4,534

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

159

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW1709424.UP.FTS.B,

18.79%,

9/14/26

..

$

12,816

$

12,653

FW1709134.UP.FTS.B,

18.89%,

9/14/26

..

8,549

8,418

L1710731.UP.FTS.B,

18.91%,

9/14/26

....

2,564

2,525

L1712201.UP.FTS.B,

18.94%,

9/14/26

....

2,134

2,101

L1709877.UP.FTS.B,

19.26%,

9/14/26

....

4,193

4,126

FW1711268.UP.FTS.B,

19.32%,

9/14/26

..

6,602

1,836

L1711904.UP.FTS.B,

19.49%,

9/14/26

....

17,056

16,932

L1711008.UP.FTS.B,

19.81%,

9/14/26

....

8,578

8,518

L1711215.UP.FTS.B,

19.91%,

9/14/26

....

5,158

5,115

L1709643.UP.FTS.B,

20.04%,

9/14/26

....

3,434

3,381

FW1709115.UP.FTS.B,

20.14%,

9/14/26

..

4,292

4,226

L1708842.UP.FTS.B,

20.24%,

9/14/26

....

6,744

6,691

L1712297.UP.FTS.B,

20.36%,

9/14/26

....

8,596

8,464

FW1712011.UP.FTS.B,

20.57%,

9/14/26

..

4,731

4,659

L1708429.UP.FTS.B,

20.63%,

9/14/26

....

2,581

2,563

L1710126.UP.FTS.B,

20.84%,

9/14/26

....

6,025

5,983

L1708585.UP.FTS.B,

20.86%,

9/14/26

....

25,813

25,631

L1711983.UP.FTS.B,

20.92%,

9/14/26

....

4,319

4,249

FW1711817.UP.FTS.B,

20.95%,

9/14/26

..

4,135

4,106

L1711180.UP.FTS.B,

21%,

9/14/26

......

20,690

20,514

L1711790.UP.FTS.B,

21.29%,

9/14/26

....

1,137

1,123

FW1708681.UP.FTS.B,

21.58%,

9/14/26

..

745

730

FW1712143.UP.FTS.B,

21.68%,

9/14/26

..

4,319

4,289

FW1704691.UP.FTS.B,

21.96%,

9/14/26

..

8,580

8,445

L1709159.UP.FTS.B,

22.01%,

9/14/26

....

13,282

7,616

L1707499.UP.FTS.B,

22.03%,

9/14/26

....

8,634

8,573

L1710829.UP.FTS.B,

22.11%,

9/14/26

....

4,326

4,270

L1709427.UP.FTS.B,

22.21%,

9/14/26

....

3,462

3,437

L1710706.UP.FTS.B,

22.62%,

9/14/26

....

2,670

2,651

L1711276.UP.FTS.B,

23.33%,

9/14/26

....

1,912

1,898

FW1708581.UP.FTS.B,

23.53%,

9/14/26

..

12,252

12,133

L1712099.UP.FTS.B,

23.67%,

9/14/26

....

1,914

1,901

L1704673.UP.FTS.B,

23.71%,

9/14/26

....

9,571

9,504

L1710184.UP.FTS.B,

24.03%,

9/14/26

....

1,562

1,538

L1709189.UP.FTS.B,

24.05%,

9/14/26

....

30,486

30,273

FW1709337.UP.FTS.B,

24.31%,

9/14/26

..

21,796

21,643

L1712413.UP.FTS.B,

24.71%,

9/14/26

....

1,135

1,121

L1709924.UP.FTS.B,

24.74%,

9/14/26

....

1,332

790

L1710379.UP.FTS.B,

24.83%,

9/14/26

....

1,135

1,127

L1710592.UP.FTS.B,

25.03%,

9/14/26

....

1,136

1,128

L1706788.UP.FTS.B,

25.12%,

9/14/26

....

1,574

1,563

FW1712236.UP.FTS.B,

25.24%,

9/14/26

..

7,219

4,290

L1710759.UP.FTS.B,

25.29%,

9/14/26

....

962

956

L1711889.UP.FTS.B,

25.29%,

9/14/26

....

3,057

217

L1712021.UP.FTS.B,

25.29%,

9/14/26

....

2,799

2,780

L1712197.UP.FTS.B,

25.34%,

9/14/26

....

282

278

L1710443.UP.FTS.B,

25.38%,

9/14/26

....

313

233

L1708413.UP.FTS.B,

25.44%,

9/14/26

....

1,192

12

L1709050.UP.FTS.B,

25.44%,

9/14/26

....

2,626

2,607

L1712014.UP.FTS.B,

25.46%,

9/14/26

....

1,488

1,478

FW1707014.UP.FTS.B,

25.47%,

9/14/26

..

12,538

263

L1710375.UP.FTS.B,

25.49%,

9/14/26

....

1,749

1,737

L1707815.UP.FTS.B,

25.5%,

9/14/26

....

6,203

6,156

L1682631.UP.FTS.B,

25.57%,

9/14/26

....

46,350

512

FW1712366.UP.FTS.B,

25.67%,

9/14/26

..

2,720

1,619

L1709036.UP.FTS.B,

25.69%,

9/14/26

....

6,169

911

L1711582.UP.FTS.B,

25.87%,

9/14/26

....

23,108

22,902

L1712466.UP.FTS.B,

25.9%,

9/14/26

....

2,837

16

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1709668.UP.FTS.B,

25.91%,

9/14/26

....

$

1,315

$

1,295

L1708800.UP.FTS.B,

25.93%,

9/14/26

....

4,208

4,179

L1711668.UP.FTS.B,

26.18%,

9/14/26

....

4,124

4,095

L1704675.UP.FTS.B,

26.55%,

9/14/26

....

5,967

1,740

L1708367.UP.FTS.B,

26.76%,

9/14/26

....

2,860

2,837

FW1711990.UP.FTS.B,

26.83%,

9/14/26

..

8,090

8,033

FW1711419.UP.FTS.B,

27.05%,

9/14/26

..

3,333

973

FW1712397.UP.FTS.B,

27.52%,

9/14/26

..

2,644

2,625

FW1711280.UP.FTS.B,

28.58%,

9/14/26

..

18,726

18,579

FW1712164.UP.FTS.B,

28.97%,

9/14/26

..

3,097

3,075

FW1712431.UP.FTS.B,

29.12%,

9/14/26

..

2,657

2,638

FW1711078.UP.FTS.B,

29.28%,

9/14/26

..

3,664

539

FW1701558.UP.FTS.B,

29.38%,

9/14/26

..

10,625

10,549

FW1708838.UP.FTS.B,

29.45%,

9/14/26

..

905

63

FW1711953.UP.FTS.B,

29.73%,

9/14/26

..

2,273

654

FW1711740.UP.FTS.B,

29.78%,

9/14/26

..

12,277

149

FW1709270.UP.FTS.B,

29.95%,

9/14/26

..

4,797

4,763

FW1711943.UP.FTS.B,

30.23%,

9/14/26

..

4,473

4,437

FW1711057.UP.FTS.B,

30.36%,

9/14/26

..

1,661

116

FW1709895.UP.FTS.B,

30.37%,

9/14/26

..

3,574

19

FW1709566.UP.FTS.B,

30.55%,

9/14/26

..

1,528

108

FW1708159.UP.FTS.B,

30.6%,

9/14/26

...

1,684

1,668

FW1710725.UP.FTS.B,

30.72%,

9/14/26

..

2,819

2,790

FW1712184.UP.FTS.B,

30.77%,

9/14/26

..

5,105

5,064

FW1708283.UP.FTS.B,

30.95%,

9/14/26

..

3,563

3,538

FW1709045.UP.FTS.B,

31.04%,

9/14/26

..

2,673

2,654

FW1711778.UP.FTS.B,

31.18%,

9/14/26

..

2,942

2,921

FW1709334.UP.FTS.B,

31.22%,

9/14/26

..

1,548

451

FW1709206.UP.FTS.B,

31.24%,

9/14/26

..

1,248

1,239

FW1709237.UP.FTS.B,

31.24%,

9/14/26

..

4,458

4,426

FW1687516.UP.FTS.B,

31.34%,

9/14/26

..

27,090

26,851

FW1712567.UP.FTS.B,

31.44%,

9/14/26

..

2,587

2,569

FW1711131.UP.FTS.B,

31.51%,

9/14/26

..

1,998

1,982

FW1708209.UP.FTS.B,

31.55%,

9/14/26

..

6,251

6,198

FW1708897.UP.FTS.B,

32.27%,

9/14/26

..

2,611

2,591

FW1709995.UP.FTS.B,

32.33%,

9/14/26

..

13,146

3,835

FW1705277.UP.FTS.B,

32.78%,

9/14/26

..

38,663

11,313

FW1707590.UP.FTS.B,

32.85%,

9/14/26

..

4,312

4,275

L1873953.UP.FTS.B,

6.89%,

10/18/26

....

41,279

40,975

FW1872946.UP.FTS.B,

7.02%,

10/18/26

..

5,375

5,335

FW1873265.UP.FTS.B,

7.52%,

10/18/26

..

2,486

2,468

L1873658.UP.FTS.B,

8.56%,

10/18/26

....

30,389

30,169

FW1873694.UP.FTS.B,

8.87%,

10/18/26

..

1,667

1,655

L1873576.UP.FTS.B,

10.5%,

10/18/26

....

9,006

8,461

L1871496.UP.FTS.B,

10.72%,

10/18/26

...

15,545

15,432

L1873797.UP.FTS.B,

10.87%,

10/18/26

...

4,192

4,154

L1874550.UP.FTS.B,

10.94%,

10/18/26

...

6,857

6,443

L1873178.UP.FTS.B,

11.12%,

10/18/26

...

6,649

6,588

L1873001.UP.FTS.B,

11.14%,

10/18/26

...

6,313

6,255

L1872155.UP.FTS.B,

11.36%,

10/18/26

...

1,659

1,642

L1873842.UP.FTS.B,

11.7%,

10/18/26

....

14,680

14,545

L1873090.UP.FTS.B,

11.9%,

10/18/26

....

1,267

1,254

L1873798.UP.FTS.B,

12.44%,

10/18/26

...

3,385

3,354

L1873392.UP.FTS.B,

12.58%,

10/18/26

...

10,838

10,739

L1874099.UP.FTS.B,

12.59%,

10/18/26

...

15,216

15,077

L1873896.UP.FTS.B,

12.61%,

10/18/26

...

4,658

4,613

L1873977.UP.FTS.B,

12.66%,

10/18/26

...

10,738

10,640

L1872876.UP.FTS.B,

13.07%,

10/18/26

...

2,121

2,102

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

160

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L1874284.UP.FTS.B,

13.39%,

10/18/26

...

$

6,795

$

6,734

L1873391.UP.FTS.B,

13.44%,

10/18/26

...

8,496

8,419

L1873434.UP.FTS.B,

13.54%,

10/18/26

...

2,541

2,518

FW1873975.UP.FTS.B,

13.55%,

10/18/26

.

5,525

5,475

L1862693.UP.FTS.B,

13.59%,

10/18/26

...

6,933

6,515

FW1874302.UP.FTS.B,

13.81%,

10/18/26

.

42,449

42,064

L1873174.UP.FTS.B,

13.86%,

10/18/26

...

13,983

13,839

L1874369.UP.FTS.B,

14.32%,

10/18/26

...

6,796

6,712

L1874287.UP.FTS.B,

14.37%,

10/18/26

...

13,645

13,517

FW1874328.UP.FTS.B,

14.8%,

10/18/26

..

8,542

8,431

L1860167.UP.FTS.B,

14.86%,

10/18/26

...

1,452

1,435

L1873885.UP.FTS.B,

15.48%,

10/18/26

...

16,271

16,119

L1874280.UP.FTS.B,

15.62%,

10/18/26

...

26,253

24,669

L1873194.UP.FTS.B,

15.66%,

10/18/26

...

2,174

2,154

L1873835.UP.FTS.B,

15.93%,

10/18/26

...

8,578

8,474

L1873166.UP.FTS.B,

16.01%,

10/18/26

...

17,162

16,942

L1872550.UP.FTS.B,

16.04%,

10/18/26

...

4,291

4,236

L1872814.UP.FTS.B,

16.38%,

10/18/26

...

12,853

12,695

L1874290.UP.FTS.B,

16.39%,

10/18/26

...

2,926

2,898

L1873320.UP.FTS.B,

16.64%,

10/18/26

...

1,720

1,699

L1873808.UP.FTS.B,

16.88%,

10/18/26

...

4,735

4,666

L1874262.UP.FTS.B,

17.04%,

10/18/26

...

5,598

5,523

L1873419.UP.FTS.B,

17.21%,

10/18/26

...

4,310

4,255

L1873707.UP.FTS.B,

17.21%,

10/18/26

...

10,346

10,214

L1874383.UP.FTS.B,

17.27%,

10/18/26

...

7,931

7,816

L1873745.UP.FTS.B,

17.46%,

10/18/26

...

8,624

8,499

FW1869707.UP.FTS.B,

17.52%,

10/18/26

.

12,944

12,756

FW1874259.UP.FTS.B,

17.55%,

10/18/26

.

28,222

27,862

FW1873390.UP.FTS.B,

17.6%,

10/18/26

..

10,358

10,207

L1873345.UP.FTS.B,

17.63%,

10/18/26

...

5,174

5,099

FW1874335.UP.FTS.B,

17.64%,

10/18/26

.

34,671

34,359

L1874163.UP.FTS.B,

17.64%,

10/18/26

...

6,026

5,938

FW1874438.UP.FTS.B,

18.01%,

10/18/26

.

5,815

5,576

L1868602.UP.FTS.B,

18.18%,

10/18/26

...

3,027

2,983

L1873867.UP.FTS.B,

18.28%,

10/18/26

...

15,154

1,095

L1872889.UP.FTS.B,

18.38%,

10/18/26

...

17,401

17,138

FW1873109.UP.FTS.B,

18.49%,

10/18/26

.

8,227

8,107

L1872957.UP.FTS.B,

18.56%,

10/18/26

...

11,159

10,992

L1874018.UP.FTS.B,

18.78%,

10/18/26

...

4,900

719

L1874471.UP.FTS.B,

18.86%,

10/18/26

...

1,198

1,178

L1872626.UP.FTS.B,

19.06%,

10/18/26

...

6,248

6,157

L1873648.UP.FTS.B,

19.32%,

10/18/26

...

3,910

3,849

L1873350.UP.FTS.B,

19.42%,

10/18/26

...

10,125

9,970

FW1874119.UP.FTS.B,

19.46%,

10/18/26

.

13,035

12,835

L1873155.UP.FTS.B,

19.56%,

10/18/26

...

2,871

2,827

L1873356.UP.FTS.B,

19.63%,

10/18/26

...

1,478

1,467

L1873176.UP.FTS.B,

19.77%,

10/18/26

...

13,050

12,949

FW1873722.UP.FTS.B,

19.81%,

10/18/26

.

6,090

6,002

L1872983.UP.FTS.B,

19.88%,

10/18/26

...

5,299

4,975

FW1873856.UP.FTS.B,

20.15%,

10/18/26

.

5,227

5,147

L1874118.UP.FTS.B,

20.23%,

10/18/26

...

30,309

4,581

L1873825.UP.FTS.B,

20.43%,

10/18/26

...

43,597

43,323

L1873221.UP.FTS.B,

20.79%,

10/18/26

...

1,746

1,719

L1873225.UP.FTS.B,

21.05%,

10/18/26

...

6,370

959

L1872967.UP.FTS.B,

21.07%,

10/18/26

...

5,665

5,629

L1866820.UP.FTS.B,

21.37%,

10/18/26

...

21,869

21,701

L1874536.UP.FTS.B,

21.47%,

10/18/26

...

4,788

4,499

L1870017.UP.FTS.B,

21.59%,

10/18/26

...

5,432

1,570

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1873820.UP.FTS.B,

21.93%,

10/18/26

...

$

2,980

$

2,957

L1872738.UP.FTS.B,

21.97%,

10/18/26

...

1,315

1,305

L1872849.UP.FTS.B,

21.97%,

10/18/26

...

2,080

2,046

L1873278.UP.FTS.B,

21.98%,

10/18/26

...

5,171

5,139

L1873489.UP.FTS.B,

22.12%,

10/18/26

...

13,155

13,054

L1872778.UP.FTS.B,

22.26%,

10/18/26

...

3,536

3,355

L1872381.UP.FTS.B,

22.4%,

10/18/26

....

2,194

2,181

L1872881.UP.FTS.B,

22.46%,

10/18/26

...

33,688

33,414

L1872904.UP.FTS.B,

22.48%,

10/18/26

...

4,390

4,356

L1873504.UP.FTS.B,

22.55%,

10/18/26

...

1,169

1,159

L1874352.UP.FTS.B,

22.6%,

10/18/26

....

28,722

28,542

L1874034.UP.FTS.B,

22.67%,

10/18/26

...

1,933

1,918

L1873496.UP.FTS.B,

22.72%,

10/18/26

...

14,631

13,872

FW1873464.UP.FTS.B,

22.91%,

10/18/26

.

2,638

2,621

L1873741.UP.FTS.B,

22.96%,

10/18/26

...

1,486

1,476

FW1873716.UP.FTS.B,

23.2%,

10/18/26

..

5,462

5,420

L1873047.UP.FTS.B,

23.35%,

10/18/26

...

4,793

343

L1874467.UP.FTS.B,

23.73%,

10/18/26

...

15,985

2,404

L1873651.UP.FTS.B,

23.74%,

10/18/26

...

7,833

7,783

L1873307.UP.FTS.B,

23.79%,

10/18/26

...

1,323

1,314

L1873349.UP.FTS.B,

23.8%,

10/18/26

....

1,697

1,683

L1872931.UP.FTS.B,

23.85%,

10/18/26

...

4,410

4,376

L1873067.UP.FTS.B,

23.95%,

10/18/26

...

9,611

686

L1873492.UP.FTS.B,

23.95%,

10/18/26

...

15,378

15,278

L1874063.UP.FTS.B,

24.01%,

10/18/26

...

6,177

6,138

L1873180.UP.FTS.B,

24.02%,

10/18/26

...

882

877

L1872601.UP.FTS.B,

24.04%,

10/18/26

...

4,414

4,380

L1838915.UP.FTS.B,

24.09%,

10/18/26

...

22,066

21,898

L1873408.UP.FTS.B,

24.34%,

10/18/26

...

2,650

2,630

L1874373.UP.FTS.B,

24.41%,

10/18/26

...

1,304

197

FW1873441.UP.FTS.B,

24.5%,

10/18/26

..

9,776

9,705

L1872511.UP.FTS.B,

24.58%,

10/18/26

...

6,910

492

L1873660.UP.FTS.B,

24.58%,

10/18/26

...

9,527

684

L1873696.UP.FTS.B,

24.62%,

10/18/26

...

4,075

1,189

L1870381.UP.FTS.B,

24.72%,

10/18/26

...

6,134

6,093

L1873373.UP.FTS.B,

24.83%,

10/18/26

...

4,427

4,393

L1868887.UP.FTS.B,

24.97%,

10/18/26

...

13,084

12,990

L1872882.UP.FTS.B,

24.99%,

10/18/26

...

2,213

2,199

L1873659.UP.FTS.B,

25.01%,

10/18/26

...

1,283

91

L1872784.UP.FTS.B,

25.04%,

10/18/26

...

5,755

5,711

L1874475.UP.FTS.B,

25.04%,

10/18/26

...

2,036

2,021

L1873877.UP.FTS.B,

25.05%,

10/18/26

...

3,988

3,957

L1874065.UP.FTS.B,

25.09%,

10/18/26

...

8,589

8,535

L1872998.UP.FTS.B,

25.1%,

10/18/26

....

886

872

FW1874269.UP.FTS.B,

25.11%,

10/18/26

.

4,427

4,400

L1873308.UP.FTS.B,

25.11%,

10/18/26

...

1,379

1,356

L1872896.UP.FTS.B,

25.12%,

10/18/26

...

13,823

13,109

L1873304.UP.FTS.B,

25.15%,

10/18/26

...

1,525

1,445

L1873657.UP.FTS.B,

25.16%,

10/18/26

...

7,251

6,870

FW1873516.UP.FTS.B,

25.23%,

10/18/26

.

13,353

13,256

L1872941.UP.FTS.B,

25.23%,

10/18/26

...

1,417

1,408

FW1872050.UP.FTS.B,

25.29%,

10/18/26

.

3,541

3,518

FW1873077.UP.FTS.B,

25.29%,

10/18/26

.

2,658

2,641

L1870436.UP.FTS.B,

25.29%,

10/18/26

...

2,481

2,465

L1872920.UP.FTS.B,

25.29%,

10/18/26

...

2,805

816

L1874211.UP.FTS.B,

25.29%,

10/18/26

...

917

138

L1873438.UP.FTS.B,

25.33%,

10/18/26

...

1,145

1,138

L1873627.UP.FTS.B,

25.33%,

10/18/26

...

850

843

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

161

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L1805232.UP.FTS.B,

25.36%,

10/18/26

...

$

4,874

$

4,837

L1872764.UP.FTS.B,

25.4%,

10/18/26

....

1,330

1,320

L1869327.UP.FTS.B,

25.42%,

10/18/26

...

2,660

2,640

L1872094.UP.FTS.B,

25.42%,

10/18/26

...

3,545

3,523

L1873079.UP.FTS.B,

25.43%,

10/18/26

...

1,257

1,246

L1873235.UP.FTS.B,

25.45%,

10/18/26

...

5,833

5,796

L1874416.UP.FTS.B,

25.46%,

10/18/26

...

26,531

26,362

L1873049.UP.FTS.B,

25.47%,

10/18/26

...

4,344

4,311

L1874151.UP.FTS.B,

25.48%,

10/18/26

...

975

969

L1873818.UP.FTS.B,

25.5%,

10/18/26

....

1,723

(13)

L1874395.UP.FTS.B,

25.5%,

10/18/26

....

7,322

2,142

FW1874455.UP.FTS.B,

25.58%,

10/18/26

.

13,763

2,068

L1873873.UP.FTS.B,

25.66%,

10/18/26

...

5,492

393

L1873528.UP.FTS.B,

25.71%,

10/18/26

...

6,565

6,524

L1874370.UP.FTS.B,

25.71%,

10/18/26

...

4,762

4,730

L1873151.UP.FTS.B,

25.86%,

10/18/26

...

1,962

1,943

L1874250.UP.FTS.B,

25.87%,

10/18/26

...

9,473

9,400

L1874041.UP.FTS.B,

26.01%,

10/18/26

...

6,646

6,598

FW1874338.UP.FTS.B,

26.12%,

10/18/26

.

8,990

8,524

L1870887.UP.FTS.B,

26.18%,

10/18/26

...

1,510

1,501

L1872603.UP.FTS.B,

26.26%,

10/18/26

...

5,637

1,643

L1874047.UP.FTS.B,

26.3%,

10/18/26

....

889

883

FW1872913.UP.FTS.B,

26.55%,

10/18/26

.

11,382

813

FW1873971.UP.FTS.B,

26.57%,

10/18/26

.

5,631

398

FW1874080.UP.FTS.B,

26.63%,

10/18/26

.

1,748

1,735

FW1873253.UP.FTS.B,

26.73%,

10/18/26

.

4,568

685

FW1874049.UP.FTS.B,

26.74%,

10/18/26

.

9,139

8,663

FW1872024.UP.FTS.B,

27.02%,

10/18/26

.

3,148

13

FW1874429.UP.FTS.B,

27.19%,

10/18/26

.

3,427

3,248

FW1873145.UP.FTS.B,

27.24%,

10/18/26

.

8,856

8,797

L1873149.UP.FTS.B,

27.32%,

10/18/26

...

5,575

845

FW1874152.UP.FTS.B,

27.49%,

10/18/26

.

9,116

2,663

FW1873640.UP.FTS.B,

27.67%,

10/18/26

.

31,605

29,958

FW1874252.UP.FTS.B,

27.67%,

10/18/26

.

7,140

7,095

FW1873344.UP.FTS.B,

27.72%,

10/18/26

.

12,496

12,419

FW1874126.UP.FTS.B,

27.94%,

10/18/26

.

4,406

4,374

FW1873866.UP.FTS.B,

28.25%,

10/18/26

.

886

880

FW1872622.UP.FTS.B,

28.59%,

10/18/26

.

2,676

2,658

FW1873950.UP.FTS.B,

28.68%,

10/18/26

.

2,014

1,909

FW1874206.UP.FTS.B,

28.74%,

10/18/26

.

2,473

175

FW1874321.UP.FTS.B,

28.99%,

10/18/26

.

1,434

1,423

FW1874251.UP.FTS.B,

29.26%,

10/18/26

.

4,484

4,451

FW1874208.UP.FTS.B,

29.47%,

10/18/26

.

3,140

3,121

FW1873452.UP.FTS.B,

29.54%,

10/18/26

.

5,863

5,771

FW1860558.UP.FTS.B,

29.76%,

10/18/26

.

5,260

4,992

FW1873160.UP.FTS.B,

30.04%,

10/18/26

.

2,028

2,012

FW1874215.UP.FTS.B,

30.05%,

10/18/26

.

15,816

15,718

FW1874445.UP.FTS.B,

30.14%,

10/18/26

.

3,596

3,569

FW1873788.UP.FTS.B,

30.2%,

10/18/26

..

4,589

4,354

FW1869470.UP.FTS.B,

30.44%,

10/18/26

.

1,907

135

FW1873268.UP.FTS.B,

30.52%,

10/18/26

.

1,620

1,608

FW1872558.UP.FTS.B,

30.55%,

10/18/26

.

1,170

1,163

FW1872779.UP.FTS.B,

30.59%,

10/18/26

.

1,793

1,736

FW1873577.UP.FTS.B,

30.59%,

10/18/26

.

5,400

5,367

FW1872937.UP.FTS.B,

30.6%,

10/18/26

..

3,587

3,564

FW1872183.UP.FTS.B,

30.61%,

10/18/26

.

910

863

FW1873256.UP.FTS.B,

30.68%,

10/18/26

.

1,669

250

FW1872032.UP.FTS.B,

30.69%,

10/18/26

.

1,209

84

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW1873026.UP.FTS.B,

30.69%,

10/18/26

.

$

619

$

610

FW1873917.UP.FTS.B,

30.73%,

10/18/26

.

1,170

1,163

FW1873110.UP.FTS.B,

30.82%,

10/18/26

.

3,783

3,759

FW1873983.UP.FTS.B,

30.83%,

10/18/26

.

2,073

2,057

FW1873629.UP.FTS.B,

30.84%,

10/18/26

.

3,263

(27)

FW1873543.UP.FTS.B,

30.85%,

10/18/26

.

5,849

5,800

FW1873168.UP.FTS.B,

30.88%,

10/18/26

.

3,333

3,308

FW1873196.UP.FTS.B,

30.96%,

10/18/26

.

7,115

(51)

FW1865333.UP.FTS.B,

31%,

10/18/26

...

2,759

811

FW1873018.UP.FTS.B,

31%,

10/18/26

...

991

985

FW1874190.UP.FTS.B,

31.02%,

10/18/26

.

17,062

16,941

FW1873583.UP.FTS.B,

31.05%,

10/18/26

.

1,172

1,163

FW1874435.UP.FTS.B,

31.05%,

10/18/26

.

1,622

1,610

FW1873245.UP.FTS.B,

31.06%,

10/18/26

.

1,262

1,252

FW1873234.UP.FTS.B,

31.11%,

10/18/26

.

3,952

3,927

FW1873980.UP.FTS.B,

31.12%,

10/18/26

.

2,195

2,179

FW1873675.UP.FTS.B,

31.14%,

10/18/26

.

20,227

20,031

FW1873932.UP.FTS.B,

31.15%,

10/18/26

.

3,132

926

FW1860483.UP.FTS.B,

31.16%,

10/18/26

.

5,292

793

FW1874112.UP.FTS.B,

31.18%,

10/18/26

.

4,418

4,385

FW1873036.UP.FTS.B,

31.2%,

10/18/26

..

2,886

2,864

FW1872735.UP.FTS.B,

31.24%,

10/18/26

.

7,471

519

FW1874120.UP.FTS.B,

31.52%,

10/18/26

.

3,448

3,399

FW1872966.UP.FTS.B,

31.83%,

10/18/26

.

4,154

4,128

FW1872975.UP.FTS.B,

32.03%,

10/18/26

.

2,801

2,780

FW2008579.UP.FTS.B,

5.93%,

11/09/26

..

41,882

41,657

L2010047.UP.FTS.B,

7.23%,

11/09/26

....

8,405

8,341

L2005604.UP.FTS.B,

7.24%,

11/09/26

....

20,220

20,067

L1947969.UP.FTS.B,

8.25%,

11/09/26

....

2,622

2,603

L2004931.UP.FTS.B,

8.92%,

11/09/26

....

16,115

15,996

FW2005584.UP.FTS.B,

8.98%,

11/09/26

..

13,574

13,474

L2009940.UP.FTS.B,

9.06%,

11/09/26

....

28,852

28,640

L2009771.UP.FTS.B,

9.73%,

11/09/26

....

4,254

4,212

L2010120.UP.FTS.B,

9.74%,

11/09/26

....

17,017

16,893

L1982018.UP.FTS.B,

9.85%,

11/09/26

....

4,256

4,225

L2005005.UP.FTS.B,

9.85%,

11/09/26

....

16,984

16,813

L2007402.UP.FTS.B,

10.3%,

11/09/26

....

8,517

8,456

L2008329.UP.FTS.B,

10.3%,

11/09/26

....

5,116

5,079

L2008701.UP.FTS.B,

10.48%,

11/09/26

...

5,809

5,749

L2009188.UP.FTS.B,

10.68%,

11/09/26

...

22,465

22,234

L2008677.UP.FTS.B,

10.77%,

11/09/26

...

8,523

8,438

L2009665.UP.FTS.B,

10.88%,

11/09/26

...

7,264

7,192

L2008105.UP.FTS.B,

10.89%,

11/09/26

...

23,064

22,767

L2006261.UP.FTS.B,

10.9%,

11/09/26

....

4,700

4,654

L2008894.UP.FTS.B,

11.02%,

11/09/26

...

5,130

5,080

L2009417.UP.FTS.B,

11.04%,

11/09/26

...

4,167

4,124

L2004983.UP.FTS.B,

11.09%,

11/09/26

...

20,893

20,740

L2010138.UP.FTS.B,

11.14%,

11/09/26

...

17,108

16,940

L2009190.UP.FTS.B,

11.31%,

11/09/26

...

17,014

16,845

FW2004999.UP.FTS.B,

11.35%,

11/09/26

.

6,961

3,663

L2006518.UP.FTS.B,

11.38%,

11/09/26

...

2,914

2,884

L1977043.UP.FTS.B,

11.43%,

11/09/26

...

4,624

4,579

FW2006974.UP.FTS.B,

11.44%,

11/09/26

.

10,704

10,599

FW2007489.UP.FTS.B,

11.63%,

11/09/26

.

6,034

5,974

L2005122.UP.FTS.B,

12.01%,

11/09/26

...

7,071

7,001

L2008088.UP.FTS.B,

12.1%,

11/09/26

....

9,014

8,926

L2007707.UP.FTS.B,

12.19%,

11/09/26

...

12,810

12,684

L2005904.UP.FTS.B,

12.3%,

11/09/26

....

2,234

2,218

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

162

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2006131.UP.FTS.B,

12.37%,

11/09/26

...

$

17,617

$

17,445

L1991534.UP.FTS.B,

12.48%,

11/09/26

...

5,590

5,530

L2005066.UP.FTS.B,

12.51%,

11/09/26

...

12,896

12,771

L2007649.UP.FTS.B,

12.88%,

11/09/26

...

8,610

8,526

FW2009636.UP.FTS.B,

13.06%,

11/09/26

.

5,169

5,119

L2009536.UP.FTS.B,

13.07%,

11/09/26

...

5,169

5,119

L2009639.UP.FTS.B,

13.58%,

11/09/26

...

12,947

12,823

L2009960.UP.FTS.B,

13.6%,

11/09/26

....

2,629

1,384

FW2004957.UP.FTS.B,

13.66%,

11/09/26

.

2,158

2,138

L2006397.UP.FTS.B,

13.66%,

11/09/26

...

8,634

8,551

L2008524.UP.FTS.B,

14.03%,

11/09/26

...

17,220

17,054

L2008113.UP.FTS.B,

14.06%,

11/09/26

...

18,589

18,411

L2009683.UP.FTS.B,

14.08%,

11/09/26

...

5,196

5,145

L2009362.UP.FTS.B,

14.1%,

11/09/26

....

4,324

4,282

FW2007197.UP.FTS.B,

14.12%,

11/09/26

.

1,730

1,713

FW2007818.UP.FTS.B,

14.38%,

11/09/26

.

23,963

1,739

L2008435.UP.FTS.B,

14.4%,

11/09/26

....

6,496

6,432

L2009234.UP.FTS.B,

14.43%,

11/09/26

...

12,986

12,862

L2004932.UP.FTS.B,

14.45%,

11/09/26

...

10,311

10,213

L2008618.UP.FTS.B,

14.73%,

11/09/26

...

5,200

5,150

L2009287.UP.FTS.B,

14.91%,

11/09/26

...

5,030

4,982

L2006623.UP.FTS.B,

15.18%,

11/09/26

...

9,602

9,468

FW2009310.UP.FTS.B,

15.19%,

11/09/26

.

4,210

4,168

L2004642.UP.FTS.B,

15.31%,

11/09/26

...

9,199

9,112

L2009277.UP.FTS.B,

15.37%,

11/09/26

...

8,550

8,431

L2008691.UP.FTS.B,

15.38%,

11/09/26

...

4,343

4,302

L2008772.UP.FTS.B,

15.55%,

11/09/26

...

8,691

8,573

L2008089.UP.FTS.B,

15.65%,

11/09/26

...

4,347

4,288

L2007900.UP.FTS.B,

15.91%,

11/09/26

...

2,611

2,575

L2009243.UP.FTS.B,

15.94%,

11/09/26

...

8,703

8,585

FW2006940.UP.FTS.B,

15.96%,

11/09/26

.

2,731

2,683

FW1985810.UP.FTS.B,

16.01%,

11/09/26

.

8,833

4,892

FW2006699.UP.FTS.B,

16.1%,

11/09/26

..

8,709

8,627

L2005019.UP.FTS.B,

16.29%,

11/09/26

...

9,588

9,453

L2009814.UP.FTS.B,

16.29%,

11/09/26

...

8,713

8,632

L2006713.UP.FTS.B,

16.47%,

11/09/26

...

10,463

10,365

L2009219.UP.FTS.B,

16.5%,

11/09/26

....

21,618

21,321

FW2010280.UP.FTS.B,

16.52%,

11/09/26

.

13,953

13,764

L2009783.UP.FTS.B,

16.53%,

11/09/26

...

1,269

1,257

FW2010216.UP.FTS.B,

16.55%,

11/09/26

.

7,845

7,772

L2009879.UP.FTS.B,

16.56%,

11/09/26

...

8,676

8,594

L2008001.UP.FTS.B,

16.67%,

11/09/26

...

13,087

12,965

L2009464.UP.FTS.B,

16.7%,

11/09/26

....

17,684

4,735

L2006903.UP.FTS.B,

16.71%,

11/09/26

...

6,977

6,883

FW2009372.UP.FTS.B,

16.77%,

11/09/26

.

13,091

12,915

L2010173.UP.FTS.B,

16.8%,

11/09/26

....

6,983

6,889

L2009631.UP.FTS.B,

16.91%,

11/09/26

...

6,082

5,999

L2005313.UP.FTS.B,

17.04%,

11/09/26

...

43,464

42,873

L2008272.UP.FTS.B,

17.06%,

11/09/26

...

17,473

17,238

L2008918.UP.FTS.B,

17.09%,

11/09/26

...

6,465

6,378

FW2008938.UP.FTS.B,

17.12%,

11/09/26

.

6,942

6,847

L2005207.UP.FTS.B,

17.16%,

11/09/26

...

10,487

10,345

L2007404.UP.FTS.B,

17.35%,

11/09/26

...

3,935

3,899

L2006868.UP.FTS.B,

17.53%,

11/09/26

...

14,937

2,092

FW2008501.UP.FTS.B,

17.65%,

11/09/26

.

9,340

673

FW2003971.UP.FTS.B,

17.71%,

11/09/26

.

24,077

23,754

L2005978.UP.FTS.B,

17.84%,

11/09/26

...

3,412

3,364

L2006918.UP.FTS.B,

18.03%,

11/09/26

...

29,448

28,964

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2008937.UP.FTS.B,

18.22%,

11/09/26

...

$

5,262

$

5,192

L2008467.UP.FTS.B,

18.23%,

11/09/26

...

8,773

8,656

L2009319.UP.FTS.B,

18.37%,

11/09/26

...

1,492

1,472

FW2005538.UP.FTS.B,

18.4%,

11/09/26

..

5,246

5,159

L2009332.UP.FTS.B,

18.58%,

11/09/26

...

2,191

2,155

FW2005908.UP.FTS.B,

18.71%,

11/09/26

.

3,953

3,888

L2006524.UP.FTS.B,

18.79%,

11/09/26

...

4,394

4,322

FW2009511.UP.FTS.B,

18.82%,

11/09/26

.

5,272

5,186

L2007568.UP.FTS.B,

18.85%,

11/09/26

...

2,672

1,481

L2006460.UP.FTS.B,

18.86%,

11/09/26

...

3,097

3,055

FW2002309.UP.FTS.B,

18.9%,

11/09/26

..

1,934

1,908

L2006384.UP.FTS.B,

18.95%,

11/09/26

...

9,524

9,393

L2004618.UP.FTS.B,

18.96%,

11/09/26

...

5,275

5,188

L2007966.UP.FTS.B,

18.98%,

11/09/26

...

1,758

1,730

L2007377.UP.FTS.B,

19.06%,

11/09/26

...

14,950

14,751

FW2009189.UP.FTS.B,

19.33%,

11/09/26

.

5,815

5,747

L2009757.UP.FTS.B,

19.37%,

11/09/26

...

36,970

36,366

L2005634.UP.FTS.B,

19.48%,

11/09/26

...

4,432

4,358

L2006942.UP.FTS.B,

19.57%,

11/09/26

...

14,021

993

L2010300.UP.FTS.B,

19.58%,

11/09/26

...

881

866

L2003306.UP.FTS.B,

19.59%,

11/09/26

...

20,349

20,079

FW2008197.UP.FTS.B,

19.77%,

11/09/26

.

17,865

10,544

L2008422.UP.FTS.B,

19.84%,

11/09/26

...

4,849

4,770

FW2006347.UP.FTS.B,

19.88%,

11/09/26

.

5,852

3,247

L2005543.UP.FTS.B,

19.91%,

11/09/26

...

2,204

156

L1983361.UP.FTS.B,

20.01%,

11/09/26

...

8,063

585

L2006201.UP.FTS.B,

20.05%,

11/09/26

...

22,271

21,904

L2007782.UP.FTS.B,

20.17%,

11/09/26

...

10,590

10,418

L2007099.UP.FTS.B,

20.26%,

11/09/26

...

29,453

29,184

L2009922.UP.FTS.B,

20.26%,

11/09/26

...

3,443

3,387

L2008551.UP.FTS.B,

20.27%,

11/09/26

...

19,068

18,898

FW2008378.UP.FTS.B,

20.35%,

11/09/26

.

717

706

L2008219.UP.FTS.B,

20.5%,

11/09/26

....

1,601

1,572

L2009017.UP.FTS.B,

20.52%,

11/09/26

...

6,133

1,658

L2009434.UP.FTS.B,

20.62%,

11/09/26

...

1,768

1,739

L2006982.UP.FTS.B,

20.66%,

11/09/26

...

4,419

4,380

L2009697.UP.FTS.B,

20.69%,

11/09/26

...

4,420

4,348

FW2004995.UP.FTS.B,

21%,

11/09/26

...

5,132

5,049

FW2007433.UP.FTS.B,

21.02%,

11/09/26

.

6,636

6,578

FW2009325.UP.FTS.B,

21.04%,

11/09/26

.

5,664

5,572

FW2006513.UP.FTS.B,

21.09%,

11/09/26

.

1,773

1,743

FW2008076.UP.FTS.B,

21.13%,

11/09/26

.

2,213

2,177

L2005679.UP.FTS.B,

21.2%,

11/09/26

....

22,134

21,843

L2007766.UP.FTS.B,

21.29%,

11/09/26

...

3,289

236

L2009584.UP.FTS.B,

21.3%,

11/09/26

....

10,073

9,982

L2006375.UP.FTS.B,

21.38%,

11/09/26

...

3,553

3,518

L2008251.UP.FTS.B,

21.4%,

11/09/26

....

4,429

4,358

FW2004906.UP.FTS.B,

21.42%,

11/09/26

.

11,382

11,192

FW2006624.UP.FTS.B,

21.63%,

11/09/26

.

37,898

1,399

FW2008069.UP.FTS.B,

21.82%,

11/09/26

.

9,669

9,584

L2009406.UP.FTS.B,

21.82%,

11/09/26

...

4,081

4,045

L2009250.UP.FTS.B,

21.88%,

11/09/26

...

3,857

1,093

L2007361.UP.FTS.B,

21.89%,

11/09/26

...

3,777

3,731

L2008476.UP.FTS.B,

21.9%,

11/09/26

....

13,397

13,181

L2008942.UP.FTS.B,

21.92%,

11/09/26

...

3,001

857

L2004302.UP.FTS.B,

21.93%,

11/09/26

...

2,840

2,814

L2008042.UP.FTS.B,

22%,

11/09/26

.....

9,319

9,168

L2009653.UP.FTS.B,

22.08%,

11/09/26

...

883

869

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

163

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2005261.UP.FTS.B,

22.11%,

11/09/26

...

$

8,607

$

8,520

L2009041.UP.FTS.B,

22.15%,

11/09/26

...

8,836

5,246

FW2009886.UP.FTS.B,

22.16%,

11/09/26

.

3,552

3,494

L2009468.UP.FTS.B,

22.18%,

11/09/26

...

11,544

11,442

L2009034.UP.FTS.B,

22.22%,

11/09/26

...

6,201

6,146

FW2009198.UP.FTS.B,

22.28%,

11/09/26

.

900

532

L2005434.UP.FTS.B,

22.32%,

11/09/26

...

1,798

1,781

L2008599.UP.FTS.B,

22.35%,

11/09/26

...

1,777

1,748

L2004674.UP.FTS.B,

22.44%,

11/09/26

...

7,793

7,717

FW1986141.UP.FTS.B,

22.72%,

11/09/26

.

5,694

412

FW2009282.UP.FTS.B,

22.76%,

11/09/26

.

5,728

412

L2007307.UP.FTS.B,

22.83%,

11/09/26

...

4,270

4,225

L2008298.UP.FTS.B,

22.83%,

11/09/26

...

3,223

110

L2008480.UP.FTS.B,

22.94%,

11/09/26

...

13,351

13,234

L2009304.UP.FTS.B,

23.03%,

11/09/26

...

3,205

3,163

L2007937.UP.FTS.B,

23.09%,

11/09/26

...

13,357

13,142

L2007252.UP.FTS.B,

23.46%,

11/09/26

...

7,488

7,423

L2005478.UP.FTS.B,

23.62%,

11/09/26

...

16,053

15,913

L2004813.UP.FTS.B,

23.68%,

11/09/26

...

5,352

5,305

L2009454.UP.FTS.B,

23.92%,

11/09/26

...

6,696

6,638

FW2009613.UP.FTS.B,

23.97%,

11/09/26

.

11,574

11,471

FW2009403.UP.FTS.B,

24.22%,

11/09/26

.

6,208

6,151

L2007056.UP.FTS.B,

24.37%,

11/09/26

...

2,157

2,136

FW2009608.UP.FTS.B,

24.41%,

11/09/26

.

18,771

18,608

L2008806.UP.FTS.B,

24.53%,

11/09/26

...

6,845

4,055

L2006560.UP.FTS.B,

24.67%,

11/09/26

...

6,382

6,311

L2008130.UP.FTS.B,

24.71%,

11/09/26

...

1,159

1,140

L2008990.UP.FTS.B,

24.79%,

11/09/26

...

460

451

L2007154.UP.FTS.B,

24.83%,

11/09/26

...

3,822

3,787

L2009932.UP.FTS.B,

24.83%,

11/09/26

...

3,121

3,093

FW2005842.UP.FTS.B,

24.84%,

11/09/26

.

2,366

169

L2006617.UP.FTS.B,

24.88%,

11/09/26

...

1,290

92

L2008148.UP.FTS.B,

24.89%,

11/09/26

...

955

69

L2009896.UP.FTS.B,

24.89%,

11/09/26

...

2,685

2,662

L2010117.UP.FTS.B,

24.96%,

11/09/26

...

3,581

3,550

FW2006718.UP.FTS.B,

24.97%,

11/09/26

.

4,476

4,438

L2008954.UP.FTS.B,

24.98%,

11/09/26

...

2,865

206

FW2008266.UP.FTS.B,

25.01%,

11/09/26

.

5,372

5,326

L2008356.UP.FTS.B,

25.02%,

11/09/26

...

3,396

3,339

L2007001.UP.FTS.B,

25.04%,

11/09/26

...

1,343

1,322

L2009387.UP.FTS.B,

25.09%,

11/09/26

...

4,319

4,277

L2006100.UP.FTS.B,

25.1%,

11/09/26

....

3,311

3,258

L2009837.UP.FTS.B,

25.1%,

11/09/26

....

1,344

1,332

L2006519.UP.FTS.B,

25.11%,

11/09/26

...

1,971

1,954

L1992164.UP.FTS.B,

25.12%,

11/09/26

...

3,045

3,019

L2008646.UP.FTS.B,

25.12%,

11/09/26

...

1,164

1,154

L2008062.UP.FTS.B,

25.15%,

11/09/26

...

1,254

1,234

L2005357.UP.FTS.B,

25.2%,

11/09/26

....

4,479

4,441

L2008993.UP.FTS.B,

25.21%,

11/09/26

...

8,490

8,415

FW2006444.UP.FTS.B,

25.24%,

11/09/26

.

5,430

3,220

L2005412.UP.FTS.B,

25.25%,

11/09/26

...

2,313

664

L2009535.UP.FTS.B,

25.27%,

11/09/26

...

13,878

998

L2009909.UP.FTS.B,

25.28%,

11/09/26

...

3,798

551

L2009998.UP.FTS.B,

25.28%,

11/09/26

...

1,075

1,066

L2009595.UP.FTS.B,

25.31%,

11/09/26

...

3,854

3,792

L2006252.UP.FTS.B,

25.33%,

11/09/26

...

7,083

7,018

L2005350.UP.FTS.B,

25.34%,

11/09/26

...

761

(10)

L2007046.UP.FTS.B,

25.34%,

11/09/26

...

1,613

1,599

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2009941.UP.FTS.B,

25.35%,

11/09/26

.

$

7,466

$

7,398

L2009460.UP.FTS.B,

25.35%,

11/09/26

...

2,778

2,754

L2005437.UP.FTS.B,

25.37%,

11/09/26

...

896

889

L2007369.UP.FTS.B,

25.4%,

11/09/26

....

1,524

1,511

L2009364.UP.FTS.B,

25.41%,

11/09/26

...

4,508

4,465

L2009802.UP.FTS.B,

25.42%,

11/09/26

...

6,823

6,756

L2007026.UP.FTS.B,

25.44%,

11/09/26

...

1,614

1,600

L2008862.UP.FTS.B,

25.44%,

11/09/26

...

3,048

3,022

L1976857.UP.FTS.B,

25.45%,

11/09/26

...

7,172

7,110

L2008185.UP.FTS.B,

25.45%,

11/09/26

...

3,586

3,555

L2008393.UP.FTS.B,

25.47%,

11/09/26

...

9,610

9,516

L2005075.UP.FTS.B,

25.48%,

11/09/26

...

2,051

2,025

L2009842.UP.FTS.B,

25.48%,

11/09/26

...

2,746

2,716

L2007493.UP.FTS.B,

25.49%,

11/09/26

...

4,541

1,299

FW2005949.UP.FTS.B,

25.57%,

11/09/26

.

8,072

8,003

FW2009730.UP.FTS.B,

25.57%,

11/09/26

.

13,586

13,462

L2004971.UP.FTS.B,

25.6%,

11/09/26

....

8,946

8,867

L2005577.UP.FTS.B,

25.63%,

11/09/26

...

5,382

5,336

L2007383.UP.FTS.B,

25.64%,

11/09/26

...

3,498

3,468

L2009541.UP.FTS.B,

25.69%,

11/09/26

...

3,853

1,104

FW2007372.UP.FTS.B,

25.7%,

11/09/26

..

3,631

2,154

L2009877.UP.FTS.B,

25.76%,

11/09/26

...

6,704

3,972

L2009064.UP.FTS.B,

25.78%,

11/09/26

...

7,118

511

FW2006387.UP.FTS.B,

25.89%,

11/09/26

.

3,313

957

L2008285.UP.FTS.B,

25.92%,

11/09/26

...

5,027

4,984

FW2007502.UP.FTS.B,

25.93%,

11/09/26

.

9,297

1,348

L2006111.UP.FTS.B,

26.01%,

11/09/26

...

9,100

2,626

FW2009267.UP.FTS.B,

26.03%,

11/09/26

.

14,199

1,009

L2008078.UP.FTS.B,

26.04%,

11/09/26

...

4,363

4,321

L2007533.UP.FTS.B,

26.06%,

11/09/26

...

12,889

12,783

FW2007576.UP.FTS.B,

26.1%,

11/09/26

..

6,287

6,233

L2009167.UP.FTS.B,

26.14%,

11/09/26

...

8,983

8,906

L2005548.UP.FTS.B,

26.19%,

11/09/26

...

5,929

5,878

FW1993820.UP.FTS.B,

26.38%,

11/09/26

.

5,393

5,347

FW2006658.UP.FTS.B,

26.38%,

11/09/26

.

5,393

5,308

FW2006782.UP.FTS.B,

26.4%,

11/09/26

..

17,979

17,825

FW1997017.UP.FTS.B,

26.42%,

11/09/26

.

3,215

1,911

L2008324.UP.FTS.B,

26.43%,

11/09/26

...

4,981

720

L2008169.UP.FTS.B,

26.64%,

11/09/26

...

17,181

2,486

L1999796.UP.FTS.B,

26.73%,

11/09/26

...

4,235

4,167

L2007687.UP.FTS.B,

26.89%,

11/09/26

...

17,760

5,104

FW2008915.UP.FTS.B,

27.18%,

11/09/26

.

1,352

1,340

FW2008080.UP.FTS.B,

27.3%,

11/09/26

..

1,352

1,340

FW2009450.UP.FTS.B,

27.39%,

11/09/26

.

7,687

7,617

FW2008423.UP.FTS.B,

27.57%,

11/09/26

.

5,961

5,896

FW2007457.UP.FTS.B,

27.58%,

11/09/26

.

2,706

2,683

FW2007274.UP.FTS.B,

27.62%,

11/09/26

.

2,230

2,211

FW2009180.UP.FTS.B,

27.72%,

11/09/26

.

15,698

15,565

FW2007864.UP.FTS.B,

27.83%,

11/09/26

.

4,512

4,474

FW2006870.UP.FTS.B,

27.89%,

11/09/26

.

5,845

5,794

FW2005768.UP.FTS.B,

27.98%,

11/09/26

.

1,355

1,342

FW2008745.UP.FTS.B,

28.05%,

11/09/26

.

5,371

5,323

FW2009329.UP.FTS.B,

28.05%,

11/09/26

.

3,911

570

FW2008777.UP.FTS.B,

28.16%,

11/09/26

.

2,713

2,687

FW2005435.UP.FTS.B,

28.32%,

11/09/26

.

13,554

13,439

FW2006392.UP.FTS.B,

28.34%,

11/09/26

.

1,930

1,902

FW2008944.UP.FTS.B,

28.36%,

11/09/26

.

3,929

3,895

FW2005859.UP.FTS.B,

28.42%,

11/09/26

.

11,809

11,700

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

164

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2009975.UP.FTS.B,

28.52%,

11/09/26

.

$

942

$

929

FW2006618.UP.FTS.B,

28.54%,

11/09/26

.

4,147

4,104

FW2009953.UP.FTS.B,

28.59%,

11/09/26

.

4,069

4,035

FW2007255.UP.FTS.B,

28.65%,

11/09/26

.

5,418

5,372

FW2006396.UP.FTS.B,

28.95%,

11/09/26

.

905

898

FW2009473.UP.FTS.B,

29.09%,

11/09/26

.

5,433

5,387

FW2005194.UP.FTS.B,

29.14%,

11/09/26

.

5,470

5,420

FW2008122.UP.FTS.B,

29.26%,

11/09/26

.

877

862

FW2006599.UP.FTS.B,

29.3%,

11/09/26

..

5,037

2,999

FW2007779.UP.FTS.B,

29.31%,

11/09/26

.

4,511

4,472

FW2009478.UP.FTS.B,

29.32%,

11/09/26

.

1,321

93

FW2006016.UP.FTS.B,

29.35%,

11/09/26

.

2,879

205

FW2006841.UP.FTS.B,

29.42%,

11/09/26

.

3,806

3,774

FW2009538.UP.FTS.B,

29.42%,

11/09/26

.

2,809

2,786

FW2006288.UP.FTS.B,

29.51%,

11/09/26

.

25,206

1,771

FW2009687.UP.FTS.B,

29.61%,

11/09/26

.

5,448

5,397

FW2007420.UP.FTS.B,

29.73%,

11/09/26

.

1,744

1,727

FW2009107.UP.FTS.B,

29.81%,

11/09/26

.

3,286

3,257

FW2009414.UP.FTS.B,

30.01%,

11/09/26

.

11,072

10,980

FW2009044.UP.FTS.B,

30.03%,

11/09/26

.

2,894

203

FW2006189.UP.FTS.B,

30.04%,

11/09/26

.

3,022

2,984

FW2006892.UP.FTS.B,

30.2%,

11/09/26

..

7,413

2,149

FW2005344.UP.FTS.B,

30.24%,

11/09/26

.

3,856

556

FW2006342.UP.FTS.B,

30.28%,

11/09/26

.

2,803

2,779

FW2005675.UP.FTS.B,

30.41%,

11/09/26

.

1,579

1,558

FW2007884.UP.FTS.B,

30.51%,

11/09/26

.

2,726

2,704

FW2006157.UP.FTS.B,

30.64%,

11/09/26

.

2,054

1,222

FW2009221.UP.FTS.B,

30.79%,

11/09/26

.

12,213

12,099

FW2008923.UP.FTS.B,

30.84%,

11/09/26

.

2,638

2,616

FW2009706.UP.FTS.B,

30.84%,

11/09/26

.

1,464

873

FW2006156.UP.FTS.B,

30.87%,

11/09/26

.

1,364

1,353

FW2007936.UP.FTS.B,

30.89%,

11/09/26

.

3,730

3,699

FW2006359.UP.FTS.B,

30.96%,

11/09/26

.

1,859

1,841

FW2007277.UP.FTS.B,

30.98%,

11/09/26

.

1,012

604

FW1996714.UP.FTS.B,

30.99%,

11/09/26

.

911

902

FW2010168.UP.FTS.B,

30.99%,

11/09/26

.

10,827

757

FW1985263.UP.FTS.B,

31.02%,

11/09/26

.

1,456

1,444

FW2008799.UP.FTS.B,

31.02%,

11/09/26

.

1,092

1,083

FW2005025.UP.FTS.B,

31.15%,

11/09/26

.

6,744

6,681

FW2006312.UP.FTS.B,

31.16%,

11/09/26

.

1,334

93

FW2007426.UP.FTS.B,

31.18%,

11/09/26

.

2,243

1,340

FW2009028.UP.FTS.B,

31.18%,

11/09/26

.

2,248

325

FW2009431.UP.FTS.B,

31.19%,

11/09/26

.

1,730

1,716

FW2008461.UP.FTS.B,

31.23%,

11/09/26

.

1,841

538

FW2008432.UP.FTS.B,

31.3%,

11/09/26

..

4,008

3,975

FW2008400.UP.FTS.B,

31.31%,

11/09/26

.

3,077

3,050

FW2005541.UP.FTS.B,

31.38%,

11/09/26

.

7,223

7,159

FW2005395.UP.FTS.B,

31.42%,

11/09/26

.

14,389

1,004

FW2009323.UP.FTS.B,

31.47%,

11/09/26

.

5,449

5,403

FW2009592.UP.FTS.B,

31.5%,

11/09/26

..

2,863

2,826

FW2007089.UP.FTS.B,

31.52%,

11/09/26

.

6,832

6,776

FW2009331.UP.FTS.B,

31.54%,

11/09/26

.

4,624

2,761

FW2009736.UP.FTS.B,

31.9%,

11/09/26

..

7,314

517

L2077746.UP.FTS.B,

6%,

11/19/26

......

4,193

4,138

L2076380.UP.FTS.B,

7.8%,

11/19/26

.....

12,666

12,580

L2076555.UP.FTS.B,

9.38%,

11/19/26

....

5,948

5,908

FW2075880.UP.FTS.B,

9.48%,

11/19/26

..

12,325

12,243

FW2079511.UP.FTS.B,

9.94%,

11/19/26

..

5,629

5,292

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2077362.UP.FTS.B,

10.03%,

11/19/26

...

$

17,036

$

16,924

L2077278.UP.FTS.B,

10.24%,

11/19/26

...

1,820

1,807

L2079683.UP.FTS.B,

10.46%,

11/19/26

...

3,814

3,780

L2078817.UP.FTS.B,

10.96%,

11/19/26

...

39,323

38,983

L2077229.UP.FTS.B,

11.22%,

11/19/26

...

17,113

16,965

L2079790.UP.FTS.B,

11.54%,

11/19/26

...

7,282

7,219

L2078831.UP.FTS.B,

11.67%,

11/19/26

...

1,666

1,651

L2075431.UP.FTS.B,

11.87%,

11/19/26

...

19,728

19,559

L2077619.UP.FTS.B,

12.17%,

11/19/26

...

948

940

FW2079744.UP.FTS.B,

12.58%,

11/19/26

.

4,730

4,690

L2077342.UP.FTS.B,

12.81%,

11/19/26

...

3,443

3,414

L2069545.UP.FTS.B,

12.88%,

11/19/26

...

5,166

5,122

FW2076618.UP.FTS.B,

13.72%,

11/19/26

.

19,862

19,695

L2077586.UP.FTS.B,

13.74%,

11/19/26

...

4,749

4,709

L2079340.UP.FTS.B,

14.05%,

11/19/26

...

2,507

2,486

L2078387.UP.FTS.B,

14.26%,

11/19/26

...

2,423

2,402

L2080759.UP.FTS.B,

14.39%,

11/19/26

...

12,891

12,781

L2046091.UP.FTS.B,

14.56%,

11/19/26

...

1,907

151

FW2078825.UP.FTS.B,

14.72%,

11/19/26

.

18,199

18,048

L2079956.UP.FTS.B,

14.89%,

11/19/26

...

6,070

6,000

L2077934.UP.FTS.B,

15.05%,

11/19/26

...

6,507

6,453

L2079762.UP.FTS.B,

15.07%,

11/19/26

...

4,338

4,288

L2078364.UP.FTS.B,

15.16%,

11/19/26

...

5,208

5,148

L2080441.UP.FTS.B,

15.17%,

11/19/26

...

8,304

425

L2077585.UP.FTS.B,

15.3%,

11/19/26

....

6,983

324

L2080377.UP.FTS.B,

15.37%,

11/19/26

...

7,817

7,727

L2080290.UP.FTS.B,

15.38%,

11/19/26

...

5,969

275

L2078013.UP.FTS.B,

15.44%,

11/19/26

...

11,604

11,506

L2078145.UP.FTS.B,

15.54%,

11/19/26

...

2,104

2,085

FW2078232.UP.FTS.B,

15.58%,

11/19/26

.

21,797

21,604

L2076773.UP.FTS.B,

15.83%,

11/19/26

...

4,760

4,477

L2080905.UP.FTS.B,

15.91%,

11/19/26

...

13,766

13,637

L2078858.UP.FTS.B,

16.1%,

11/19/26

....

15,454

15,265

L2076549.UP.FTS.B,

16.3%,

11/19/26

....

2,112

2,094

L2077446.UP.FTS.B,

16.31%,

11/19/26

...

5,664

5,599

L2080949.UP.FTS.B,

16.51%,

11/19/26

...

6,407

6,321

L2077345.UP.FTS.B,

16.52%,

11/19/26

...

2,355

2,335

L2078556.UP.FTS.B,

16.55%,

11/19/26

...

4,170

4,118

L2077624.UP.FTS.B,

16.62%,

11/19/26

...

39,255

38,805

L2078462.UP.FTS.B,

16.62%,

11/19/26

...

6,930

6,855

L2077136.UP.FTS.B,

16.73%,

11/19/26

...

8,726

8,626

FW2080998.UP.FTS.B,

16.87%,

11/19/26

.

847

837

FW2078513.UP.FTS.B,

16.88%,

11/19/26

.

15,716

15,536

L2079147.UP.FTS.B,

16.93%,

11/19/26

...

14,814

14,644

L2076368.UP.FTS.B,

16.96%,

11/19/26

...

13,100

12,950

L2080104.UP.FTS.B,

16.97%,

11/19/26

...

43,404

42,894

L2080899.UP.FTS.B,

17.22%,

11/19/26

...

5,245

5,202

L2073789.UP.FTS.B,

17.39%,

11/19/26

...

2,624

2,594

L2078117.UP.FTS.B,

17.47%,

11/19/26

...

2,712

2,681

L2078785.UP.FTS.B,

17.53%,

11/19/26

...

8,750

8,628

L2079161.UP.FTS.B,

17.64%,

11/19/26

...

5,171

5,110

FW2077194.UP.FTS.B,

17.96%,

11/19/26

.

8,671

8,568

L2079526.UP.FTS.B,

17.98%,

11/19/26

...

3,330

3,303

FW2077428.UP.FTS.B,

18.23%,

11/19/26

.

8,770

8,649

L2078320.UP.FTS.B,

18.26%,

11/19/26

...

3,533

3,501

L2077316.UP.FTS.B,

18.51%,

11/19/26

...

6,145

6,060

L2078541.UP.FTS.B,

18.53%,

11/19/26

...

3,073

3,030

L2078767.UP.FTS.B,

18.54%,

11/19/26

...

878

868

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

165

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2080677.UP.FTS.B,

18.72%,

11/19/26

.

$

14,934

$

14,764

L2080184.UP.FTS.B,

19.05%,

11/19/26

...

4,806

4,776

FW2078252.UP.FTS.B,

19.1%,

11/19/26

..

1,617

1,591

L2079089.UP.FTS.B,

19.11%,

11/19/26

...

5,260

5,200

L2077889.UP.FTS.B,

19.41%,

11/19/26

...

6,515

6,425

L1966479.UP.FTS.B,

19.7%,

11/19/26

....

10,140

9,993

L2079136.UP.FTS.B,

19.7%,

11/19/26

....

14,540

14,454

FW2078808.UP.FTS.B,

19.87%,

11/19/26

.

22,041

21,737

L2077834.UP.FTS.B,

19.87%,

11/19/26

...

13,291

13,102

FW2076082.UP.FTS.B,

20.04%,

11/19/26

.

17,643

17,400

L2078706.UP.FTS.B,

20.11%,

11/19/26

...

7,059

6,961

L2080653.UP.FTS.B,

20.24%,

11/19/26

...

3,972

3,917

L2077864.UP.FTS.B,

20.33%,

11/19/26

...

19,425

19,158

L2076559.UP.FTS.B,

20.51%,

11/19/26

...

9,499

9,362

L2075161.UP.FTS.B,

20.64%,

11/19/26

...

30,934

30,587

L2079005.UP.FTS.B,

20.71%,

11/19/26

...

3,324

241

L2076267.UP.FTS.B,

20.73%,

11/19/26

...

13,145

12,959

L2077767.UP.FTS.B,

20.73%,

11/19/26

...

8,841

8,789

FW2079399.UP.FTS.B,

20.8%,

11/19/26

..

15,892

15,798

L2051484.UP.FTS.B,

21.26%,

11/19/26

...

1,771

1,747

L2078669.UP.FTS.B,

21.32%,

11/19/26

...

8,857

8,758

FW2080621.UP.FTS.B,

21.61%,

11/19/26

.

9,887

716

L2077511.UP.FTS.B,

21.66%,

11/19/26

...

4,069

3,860

L2076870.UP.FTS.B,

21.71%,

11/19/26

...

5,301

5,241

L2076557.UP.FTS.B,

21.86%,

11/19/26

...

22,111

20,982

FW2080860.UP.FTS.B,

21.93%,

11/19/26

.

17,545

17,430

L2080901.UP.FTS.B,

21.94%,

11/19/26

...

9,584

9,528

FW2076510.UP.FTS.B,

22.17%,

11/19/26

.

35,519

35,034

L2080597.UP.FTS.B,

22.59%,

11/19/26

...

1,956

1,945

L2078089.UP.FTS.B,

22.76%,

11/19/26

...

18,016

16,947

FW2080574.UP.FTS.B,

23.09%,

11/19/26

.

4,952

4,922

L2077002.UP.FTS.B,

23.1%,

11/19/26

....

9,048

2,626

FW2078029.UP.FTS.B,

23.15%,

11/19/26

.

4,186

4,162

FW2077484.UP.FTS.B,

23.29%,

11/19/26

.

13,365

13,289

L2078079.UP.FTS.B,

23.52%,

11/19/26

...

4,458

4,397

L2078431.UP.FTS.B,

23.7%,

11/19/26

....

2,651

2,634

L2076582.UP.FTS.B,

24.04%,

11/19/26

...

18,448

18,231

L2079001.UP.FTS.B,

24.08%,

11/19/26

...

13,891

13,795

L2077380.UP.FTS.B,

24.14%,

11/19/26

...

4,294

4,265

FW2076263.UP.FTS.B,

24.18%,

11/19/26

.

2,769

2,739

FW2047900.UP.FTS.B,

24.6%,

11/19/26

..

6,382

6,005

FW2079138.UP.FTS.B,

24.71%,

11/19/26

.

13,758

3,902

L2051923.UP.FTS.B,

24.73%,

11/19/26

...

1,667

1,653

L2077667.UP.FTS.B,

24.74%,

11/19/26

...

1,725

1,712

L2077386.UP.FTS.B,

24.97%,

11/19/26

...

1,039

74

FW2078855.UP.FTS.B,

25.07%,

11/19/26

.

4,478

4,453

L2075615.UP.FTS.B,

25.09%,

11/19/26

...

2,149

2,137

L2078549.UP.FTS.B,

25.1%,

11/19/26

....

896

884

FW2078837.UP.FTS.B,

25.18%,

11/19/26

.

2,329

2,298

L2077756.UP.FTS.B,

25.18%,

11/19/26

...

1,075

1,069

L2080819.UP.FTS.B,

25.23%,

11/19/26

...

1,523

1,515

L2080514.UP.FTS.B,

25.27%,

11/19/26

...

1,995

1,894

L2075929.UP.FTS.B,

25.33%,

11/19/26

...

2,415

2,382

L2055608.UP.FTS.B,

25.35%,

11/19/26

...

1,434

1,426

L2078857.UP.FTS.B,

25.44%,

11/19/26

...

1,524

1,515

L2078465.UP.FTS.B,

25.48%,

11/19/26

...

4,403

4,373

L2079168.UP.FTS.B,

25.49%,

11/19/26

...

9,773

9,718

L2079636.UP.FTS.B,

25.5%,

11/19/26

....

2,242

2,229

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2080879.UP.FTS.B,

25.51%,

11/19/26

...

$

3,766

$

3,745

FW2079109.UP.FTS.B,

25.53%,

11/19/26

.

5,381

5,350

FW2080532.UP.FTS.B,

25.55%,

11/19/26

.

18,506

17,423

FW2076607.UP.FTS.B,

25.56%,

11/19/26

.

18,149

17,236

FW2076520.UP.FTS.B,

25.58%,

11/19/26

.

990

975

L2080301.UP.FTS.B,

25.61%,

11/19/26

...

3,562

3,540

FW2078739.UP.FTS.B,

25.62%,

11/19/26

.

1,912

137

FW2077257.UP.FTS.B,

25.78%,

11/19/26

.

5,384

5,354

L2076428.UP.FTS.B,

25.82%,

11/19/26

...

7,630

7,240

L2076758.UP.FTS.B,

25.84%,

11/19/26

...

4,130

4,107

L2077747.UP.FTS.B,

25.84%,

11/19/26

...

6,462

6,426

FW2075811.UP.FTS.B,

25.85%,

11/19/26

.

987

974

L2076862.UP.FTS.B,

25.93%,

11/19/26

...

5,676

5,388

L2080433.UP.FTS.B,

25.97%,

11/19/26

...

2,155

2,126

L2075052.UP.FTS.B,

25.99%,

11/19/26

...

4,400

4,375

L2078570.UP.FTS.B,

26.02%,

11/19/26

...

14,062

166

FW2076721.UP.FTS.B,

26.13%,

11/19/26

.

6,889

2,015

FW2080275.UP.FTS.B,

26.15%,

11/19/26

.

3,144

3,126

L2076228.UP.FTS.B,

26.28%,

11/19/26

...

3,152

3,131

FW2057769.UP.FTS.B,

26.4%,

11/19/26

..

5,739

406

FW2078057.UP.FTS.B,

26.47%,

11/19/26

.

1,890

1,877

FW2079458.UP.FTS.B,

26.51%,

11/19/26

.

3,578

3,530

L2080156.UP.FTS.B,

26.56%,

11/19/26

...

2,698

2,683

L2077173.UP.FTS.B,

26.59%,

11/19/26

...

10,668

10,600

FW2076617.UP.FTS.B,

26.67%,

11/19/26

.

26,268

26,122

L2076223.UP.FTS.B,

26.74%,

11/19/26

...

9,390

9,329

FW2074690.UP.FTS.B,

26.87%,

11/19/26

.

6,296

6,260

FW2070515.UP.FTS.B,

26.89%,

11/19/26

.

4,051

4,028

L2075827.UP.FTS.B,

27%,

11/19/26

.....

8,374

8,327

FW2073062.UP.FTS.B,

27.11%,

11/19/26

.

13,510

13,435

FW2076319.UP.FTS.B,

27.45%,

11/19/26

.

3,606

3,586

FW2077691.UP.FTS.B,

28%,

11/19/26

...

7,223

7,183

FW2078778.UP.FTS.B,

28.26%,

11/19/26

.

9,034

8,985

FW2079210.UP.FTS.B,

28.66%,

11/19/26

.

4,612

4,587

FW2079921.UP.FTS.B,

29.67%,

11/19/26

.

2,722

2,708

FW2072591.UP.FTS.B,

29.87%,

11/19/26

.

2,812

2,797

FW2076316.UP.FTS.B,

29.92%,

11/19/26

.

4,444

1,310

FW2077221.UP.FTS.B,

29.97%,

11/19/26

.

858

832

FW2077632.UP.FTS.B,

30.15%,

11/19/26

.

9,079

9,030

FW2077700.UP.FTS.B,

30.18%,

11/19/26

.

7,261

7,222

FW2078856.UP.FTS.B,

30.22%,

11/19/26

.

1,827

1,736

FW2078927.UP.FTS.B,

30.32%,

11/19/26

.

5,800

410

FW2078425.UP.FTS.B,

30.41%,

11/19/26

.

3,710

259

FW2077874.UP.FTS.B,

30.42%,

11/19/26

.

6,541

6,506

FW2078643.UP.FTS.B,

30.58%,

11/19/26

.

1,302

1,279

FW2078839.UP.FTS.B,

30.61%,

11/19/26

.

919

873

FW2077363.UP.FTS.B,

30.77%,

11/19/26

.

4,599

1,361

FW2075779.UP.FTS.B,

30.81%,

11/19/26

.

1,386

1,365

FW2077993.UP.FTS.B,

30.84%,

11/19/26

.

2,544

2,530

FW2076598.UP.FTS.B,

31.11%,

11/19/26

.

910

905

FW2074352.UP.FTS.B,

31.13%,

11/19/26

.

1,001

996

FW2077684.UP.FTS.B,

31.19%,

11/19/26

.

2,121

149

FW2075287.UP.FTS.B,

31.46%,

11/19/26

.

7,635

7,561

FW2076836.UP.FTS.B,

31.47%,

11/19/26

.

6,939

6,895

FW2076209.UP.FTS.B,

31.48%,

11/19/26

.

2,919

2,900

FW2200360.UP.FTS.B,

6%,

12/07/26

....

676

667

L2198358.UP.FTS.B,

7.09%,

12/07/26

....

3,237

3,205

L2196810.UP.FTS.B,

7.42%,

12/07/26

....

5,147

5,106

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

166

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2195818.UP.FTS.B,

7.43%,

12/07/26

....

$

287

$

284

L2198501.UP.FTS.B,

8.94%,

12/07/26

....

3,450

3,423

L2195995.UP.FTS.B,

9.12%,

12/07/26

....

3,712

3,682

L2199695.UP.FTS.B,

9.66%,

12/07/26

....

5,189

5,148

L2199924.UP.FTS.B,

9.76%,

12/07/26

....

6,056

6,008

L2198890.UP.FTS.B,

10.21%,

12/07/26

...

1,300

1,290

FW2200013.UP.FTS.B,

10.26%,

12/07/26

.

12,133

12,000

L2199199.UP.FTS.B,

10.28%,

12/07/26

...

8,320

8,230

L2198751.UP.FTS.B,

10.42%,

12/07/26

...

6,937

6,861

L2199240.UP.FTS.B,

10.7%,

12/07/26

....

7,117

7,062

L2196100.UP.FTS.B,

10.99%,

12/07/26

...

1,390

1,379

FW2198003.UP.FTS.B,

11.06%,

12/07/26

.

8,030

2,019

L2193649.UP.FTS.B,

11.13%,

12/07/26

...

2,692

674

L2197856.UP.FTS.B,

11.23%,

12/07/26

...

4,696

4,644

L2197172.UP.FTS.B,

11.42%,

12/07/26

...

8,701

8,606

FW2195774.UP.FTS.B,

11.53%,

12/07/26

.

27,113

26,820

L2196592.UP.FTS.B,

11.62%,

12/07/26

...

4,702

4,651

L2197038.UP.FTS.B,

12.26%,

12/07/26

...

3,490

3,453

FW2199260.UP.FTS.B,

12.51%,

12/07/26

.

21,396

21,167

L2199654.UP.FTS.B,

12.66%,

12/07/26

...

5,118

5,062

L2200204.UP.FTS.B,

12.79%,

12/07/26

...

11,364

11,243

FW2198067.UP.FTS.B,

12.9%,

12/07/26

..

5,274

5,217

L2198086.UP.FTS.B,

13.28%,

12/07/26

...

8,757

8,662

L2200250.UP.FTS.B,

13.28%,

12/07/26

...

4,378

4,331

FW2197303.UP.FTS.B,

13.29%,

12/07/26

.

3,502

3,465

L2197068.UP.FTS.B,

13.32%,

12/07/26

...

8,757

8,663

L2197658.UP.FTS.B,

13.72%,

12/07/26

...

4,384

4,337

L2196150.UP.FTS.B,

13.9%,

12/07/26

....

10,879

10,761

FW2198165.UP.FTS.B,

14.07%,

12/07/26

.

1,229

1,216

FW2198593.UP.FTS.B,

14.12%,

12/07/26

.

5,268

5,211

L2197131.UP.FTS.B,

14.14%,

12/07/26

...

966

956

L2199997.UP.FTS.B,

14.15%,

12/07/26

...

3,249

3,214

L2196542.UP.FTS.B,

14.21%,

12/07/26

...

6,182

6,116

L2196035.UP.FTS.B,

14.38%,

12/07/26

...

4,747

4,695

L2196588.UP.FTS.B,

14.6%,

12/07/26

....

9,389

9,287

L2196864.UP.FTS.B,

14.96%,

12/07/26

...

6,162

6,097

L2195767.UP.FTS.B,

15.08%,

12/07/26

...

2,799

119

L2198350.UP.FTS.B,

15.19%,

12/07/26

...

856

847

L2196739.UP.FTS.B,

15.37%,

12/07/26

...

13,134

12,995

L2197260.UP.FTS.B,

15.37%,

12/07/26

...

2,380

2,354

L2197143.UP.FTS.B,

15.39%,

12/07/26

...

8,855

8,719

L2197650.UP.FTS.B,

15.41%,

12/07/26

...

6,612

6,542

L2196913.UP.FTS.B,

15.42%,

12/07/26

...

44,192

43,719

FW2199121.UP.FTS.B,

15.58%,

12/07/26

.

16,972

836

L2200040.UP.FTS.B,

15.69%,

12/07/26

...

107

106

FW2198673.UP.FTS.B,

15.71%,

12/07/26

.

18,162

10,065

L2199860.UP.FTS.B,

16.1%,

12/07/26

....

13,251

13,051

L2197234.UP.FTS.B,

16.24%,

12/07/26

...

17,681

9,301

L2199879.UP.FTS.B,

16.31%,

12/07/26

...

13,315

7,004

FW2197646.UP.FTS.B,

16.34%,

12/07/26

.

8,211

8,115

L2198446.UP.FTS.B,

16.58%,

12/07/26

...

43,951

43,287

L2199625.UP.FTS.B,

16.62%,

12/07/26

...

8,849

8,716

L2199675.UP.FTS.B,

16.72%,

12/07/26

...

13,476

7,446

L2198880.UP.FTS.B,

16.74%,

12/07/26

...

3,304

3,249

L2199844.UP.FTS.B,

16.94%,

12/07/26

...

8,749

8,654

L2198467.UP.FTS.B,

16.99%,

12/07/26

...

17,719

17,395

L2197174.UP.FTS.B,

17.08%,

12/07/26

...

13,286

13,086

L2195329.UP.FTS.B,

17.11%,

12/07/26

...

4,590

4,520

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2197380.UP.FTS.B,

17.12%,

12/07/26

.

$

2,659

$

2,619

L2198345.UP.FTS.B,

17.18%,

12/07/26

...

21,097

20,779

L2195192.UP.FTS.B,

17.22%,

12/07/26

...

2,926

2,881

L2199351.UP.FTS.B,

17.39%,

12/07/26

...

1,822

485

L2198376.UP.FTS.B,

17.42%,

12/07/26

...

19,522

19,155

L2197047.UP.FTS.B,

17.47%,

12/07/26

...

10,647

10,486

L2195638.UP.FTS.B,

17.49%,

12/07/26

...

8,874

8,740

L2194879.UP.FTS.B,

17.51%,

12/07/26

...

17,320

17,056

L2192178.UP.FTS.B,

17.53%,

12/07/26

...

6,655

6,555

FW2196193.UP.FTS.B,

17.59%,

12/07/26

.

22,191

21,856

L2199819.UP.FTS.B,

17.72%,

12/07/26

...

15,984

15,817

L2198685.UP.FTS.B,

17.77%,

12/07/26

...

2,592

2,551

L2199007.UP.FTS.B,

17.87%,

12/07/26

...

5,330

5,232

L2200255.UP.FTS.B,

17.89%,

12/07/26

...

7,164

7,032

L2200130.UP.FTS.B,

18.09%,

12/07/26

...

20,072

5,110

L2199726.UP.FTS.B,

18.1%,

12/07/26

....

5,333

5,253

L2195959.UP.FTS.B,

18.12%,

12/07/26

...

10,397

10,241

L2196210.UP.FTS.B,

18.42%,

12/07/26

...

15,029

4,119

L2200083.UP.FTS.B,

18.51%,

12/07/26

...

4,566

1,251

FW2198541.UP.FTS.B,

18.65%,

12/07/26

.

22,260

21,853

L2197391.UP.FTS.B,

18.77%,

12/07/26

...

1,913

1,879

L2196412.UP.FTS.B,

18.83%,

12/07/26

...

1,603

1,579

L2200053.UP.FTS.B,

18.87%,

12/07/26

...

8,910

8,747

L2199248.UP.FTS.B,

19.04%,

12/07/26

...

13,371

13,170

FW2199060.UP.FTS.B,

19.27%,

12/07/26

.

2,230

2,196

L2200120.UP.FTS.B,

19.52%,

12/07/26

...

9,697

9,518

L2196672.UP.FTS.B,

19.58%,

12/07/26

...

7,589

7,450

L2196821.UP.FTS.B,

19.59%,

12/07/26

...

5,806

5,697

L2199663.UP.FTS.B,

19.69%,

12/07/26

...

5,358

5,260

L2169437.UP.FTS.B,

19.73%,

12/07/26

...

8,932

8,769

FW2198520.UP.FTS.B,

20.07%,

12/07/26

.

8,896

8,732

L2199129.UP.FTS.B,

20.12%,

12/07/26

...

1,967

1,938

L2198874.UP.FTS.B,

20.19%,

12/07/26

...

3,578

3,524

L2199523.UP.FTS.B,

20.46%,

12/07/26

...

4,924

4,862

L2196447.UP.FTS.B,

20.62%,

12/07/26

...

5,822

5,733

L2196710.UP.FTS.B,

20.66%,

12/07/26

...

16,711

2,421

L2189118.UP.FTS.B,

20.67%,

12/07/26

...

2,687

2,638

L2197655.UP.FTS.B,

20.75%,

12/07/26

...

4,479

4,428

FW2197381.UP.FTS.B,

20.8%,

12/07/26

..

2,778

2,743

L2197561.UP.FTS.B,

20.81%,

12/07/26

...

4,480

4,428

FW2199633.UP.FTS.B,

20.94%,

12/07/26

.

7,289

7,199

L2196726.UP.FTS.B,

21.07%,

12/07/26

...

21,115

20,788

L2197425.UP.FTS.B,

21.37%,

12/07/26

...

9,692

701

L2196680.UP.FTS.B,

21.47%,

12/07/26

...

5,546

5,444

L2195675.UP.FTS.B,

21.55%,

12/07/26

...

1,451

1,434

L2197631.UP.FTS.B,

21.55%,

12/07/26

...

4,041

3,965

L2196825.UP.FTS.B,

21.8%,

12/07/26

....

5,845

5,771

FW2198237.UP.FTS.B,

21.87%,

12/07/26

.

4,493

4,442

L2196775.UP.FTS.B,

22.04%,

12/07/26

...

899

883

FW2199825.UP.FTS.B,

22.12%,

12/07/26

.

1,798

1,778

L2196730.UP.FTS.B,

22.21%,

12/07/26

...

15,741

15,560

L2191085.UP.FTS.B,

22.33%,

12/07/26

...

2,942

2,907

L2199874.UP.FTS.B,

22.34%,

12/07/26

...

7,380

7,287

L2192706.UP.FTS.B,

22.47%,

12/07/26

...

9,001

8,898

L2197670.UP.FTS.B,

22.54%,

12/07/26

...

3,474

3,429

L2196119.UP.FTS.B,

22.75%,

12/07/26

...

4,505

4,453

L2185222.UP.FTS.B,

23.13%,

12/07/26

...

5,172

5,102

FW2200346.UP.FTS.B,

23.2%,

12/07/26

..

9,019

8,916

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

167

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2196522.UP.FTS.B,

23.26%,

12/07/26

.

$

5,412

$

5,350

FW2199888.UP.FTS.B,

23.27%,

12/07/26

.

12,616

3,580

L2195799.UP.FTS.B,

23.37%,

12/07/26

...

10,369

10,210

FW2199894.UP.FTS.B,

23.38%,

12/07/26

.

7,219

7,136

L2198106.UP.FTS.B,

23.42%,

12/07/26

...

5,750

5,681

L2197006.UP.FTS.B,

23.53%,

12/07/26

...

4,816

703

FW2192438.UP.FTS.B,

23.66%,

12/07/26

.

10,836

10,712

L2197891.UP.FTS.B,

23.8%,

12/07/26

....

3,614

3,572

L2199092.UP.FTS.B,

23.9%,

12/07/26

....

5,489

1,556

L2198616.UP.FTS.B,

24.08%,

12/07/26

...

2,703

2,672

FW2195703.UP.FTS.B,

24.25%,

12/07/26

.

1,628

1,609

FW2196745.UP.FTS.B,

24.4%,

12/07/26

..

5,405

5,342

FW2200190.UP.FTS.B,

24.4%,

12/07/26

..

2,262

2,236

L2196637.UP.FTS.B,

24.42%,

12/07/26

...

13,482

13,327

L2200210.UP.FTS.B,

24.56%,

12/07/26

...

18,104

17,774

L2196899.UP.FTS.B,

24.65%,

12/07/26

...

5,251

5,191

L2197090.UP.FTS.B,

24.84%,

12/07/26

...

4,681

4,619

L2200145.UP.FTS.B,

24.91%,

12/07/26

...

906

896

L2197252.UP.FTS.B,

24.97%,

12/07/26

...

961

949

L2199777.UP.FTS.B,

24.98%,

12/07/26

...

941

67

L2196714.UP.FTS.B,

25.02%,

12/07/26

...

2,901

2,864

L2199551.UP.FTS.B,

25.05%,

12/07/26

...

1,903

1,868

L2199866.UP.FTS.B,

25.14%,

12/07/26

...

1,146

82

L2197866.UP.FTS.B,

25.16%,

12/07/26

...

5,025

48

L2195912.UP.FTS.B,

25.21%,

12/07/26

...

7,435

7,350

L2198146.UP.FTS.B,

25.25%,

12/07/26

...

1,904

1,882

L2196219.UP.FTS.B,

25.27%,

12/07/26

...

8,524

8,427

L2198919.UP.FTS.B,

25.27%,

12/07/26

...

2,000

23

L2198546.UP.FTS.B,

25.32%,

12/07/26

...

1,360

1,345

L2199586.UP.FTS.B,

25.33%,

12/07/26

...

1,011

998

L2199876.UP.FTS.B,

25.33%,

12/07/26

...

1,186

1,168

L2195664.UP.FTS.B,

25.4%,

12/07/26

....

612

599

L2199661.UP.FTS.B,

25.4%,

12/07/26

....

2,540

2,508

FW2200017.UP.FTS.B,

25.41%,

12/07/26

.

4,679

1,336

L2196685.UP.FTS.B,

25.41%,

12/07/26

...

5,607

5,542

L2198050.UP.FTS.B,

25.44%,

12/07/26

...

4,721

4,662

L2197183.UP.FTS.B,

25.46%,

12/07/26

...

1,542

1,525

L2197585.UP.FTS.B,

25.47%,

12/07/26

...

4,535

326

L2197844.UP.FTS.B,

25.47%,

12/07/26

...

5,120

3,034

L2198441.UP.FTS.B,

25.48%,

12/07/26

...

12,884

12,728

L2197791.UP.FTS.B,

25.56%,

12/07/26

...

3,329

29

FW2197368.UP.FTS.B,

25.58%,

12/07/26

.

9,075

8,971

L2199767.UP.FTS.B,

25.65%,

12/07/26

...

5,229

5,160

L2199814.UP.FTS.B,

25.68%,

12/07/26

...

5,447

5,384

FW2199624.UP.FTS.B,

25.75%,

12/07/26

.

8,984

8,874

L2193871.UP.FTS.B,

25.78%,

12/07/26

...

5,637

5,547

FW2199793.UP.FTS.B,

25.9%,

12/07/26

..

7,266

7,183

FW2199186.UP.FTS.B,

25.95%,

12/07/26

.

2,271

2,245

L2197375.UP.FTS.B,

26%,

12/07/26

.....

4,897

352

FW2196103.UP.FTS.B,

26.48%,

12/07/26

.

1,230

1,206

L2200350.UP.FTS.B,

26.67%,

12/07/26

...

5,278

5,218

FW2195369.UP.FTS.B,

26.79%,

12/07/26

.

2,737

196

FW2199332.UP.FTS.B,

26.82%,

12/07/26

.

2,225

2,198

FW2195998.UP.FTS.B,

26.86%,

12/07/26

.

16,279

16,077

FW2195253.UP.FTS.B,

27.11%,

12/07/26

.

6,013

5,944

FW2195958.UP.FTS.B,

27.48%,

12/07/26

.

3,010

2,975

FW2200008.UP.FTS.B,

27.66%,

12/07/26

.

6,269

6,194

FW2198590.UP.FTS.B,

27.74%,

12/07/26

.

4,470

636

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2199488.UP.FTS.B,

27.83%,

12/07/26

.

$

2,059

$

1,213

FW2198564.UP.FTS.B,

27.96%,

12/07/26

.

4,083

4,034

FW2195741.UP.FTS.B,

28.07%,

12/07/26

.

1,370

1,354

FW2198474.UP.FTS.B,

28.07%,

12/07/26

.

3,129

1,852

FW2200076.UP.FTS.B,

28.24%,

12/07/26

.

45,680

45,157

FW2198854.UP.FTS.B,

28.37%,

12/07/26

.

3,871

276

FW2200069.UP.FTS.B,

28.54%,

12/07/26

.

3,929

3,875

FW2200188.UP.FTS.B,

28.66%,

12/07/26

.

5,091

5,028

FW2126302.UP.FTS.B,

28.84%,

12/07/26

.

15,512

15,331

FW2198203.UP.FTS.B,

29.09%,

12/07/26

.

3,459

3,418

FW2198176.UP.FTS.B,

29.22%,

12/07/26

.

3,711

3,665

FW2196176.UP.FTS.B,

29.32%,

12/07/26

.

6,976

994

FW2195399.UP.FTS.B,

29.81%,

12/07/26

.

2,109

2,085

FW2198433.UP.FTS.B,

29.92%,

12/07/26

.

2,845

1,690

FW2198601.UP.FTS.B,

30.14%,

12/07/26

.

4,589

4,536

FW2199215.UP.FTS.B,

30.27%,

12/07/26

.

2,938

2,904

FW2197953.UP.FTS.B,

30.28%,

12/07/26

.

2,919

13

FW2195876.UP.FTS.B,

30.32%,

12/07/26

.

1,397

401

FW2198672.UP.FTS.B,

30.42%,

12/07/26

.

5,510

5,447

FW2196744.UP.FTS.B,

30.45%,

12/07/26

.

45,917

45,392

FW2198825.UP.FTS.B,

30.6%,

12/07/26

..

3,215

3,179

FW2199283.UP.FTS.B,

30.62%,

12/07/26

.

1,329

(22)

FW2197604.UP.FTS.B,

30.64%,

12/07/26

.

3,032

2,997

FW2198515.UP.FTS.B,

30.77%,

12/07/26

.

2,858

2,822

FW2199805.UP.FTS.B,

30.82%,

12/07/26

.

7,923

2,270

FW2198089.UP.FTS.B,

30.83%,

12/07/26

.

1,930

1,908

FW2197372.UP.FTS.B,

30.88%,

12/07/26

.

11,505

(115)

FW2195222.UP.FTS.B,

30.96%,

12/07/26

.

1,287

1,272

FW2197663.UP.FTS.B,

30.97%,

12/07/26

.

2,422

2,393

FW2198098.UP.FTS.B,

31%,

12/07/26

...

5,427

5,359

FW2196279.UP.FTS.B,

31.01%,

12/07/26

.

3,218

3,181

FW2198232.UP.FTS.B,

31.01%,

12/07/26

.

937

269

FW2170273.UP.FTS.B,

31.03%,

12/07/26

.

17,687

1,237

FW2198957.UP.FTS.B,

31.08%,

12/07/26

.

10,211

724

FW2197407.UP.FTS.B,

31.19%,

12/07/26

.

5,427

5,365

FW2196852.UP.FTS.B,

31.22%,

12/07/26

.

7,481

7,384

FW2198390.UP.FTS.B,

31.22%,

12/07/26

.

2,485

2,454

FW2200225.UP.FTS.B,

31.22%,

12/07/26

.

1,040

147

FW2197133.UP.FTS.B,

31.45%,

12/07/26

.

4,050

4,004

FW2195565.UP.FTS.B,

31.6%,

12/07/26

..

2,387

(42)

FW2200182.UP.FTS.B,

31.77%,

12/07/26

.

3,028

429

FW2198397.UP.FTS.B,

32.23%,

12/07/26

.

5,348

5,287

FW2199153.UP.FTS.B,

32.29%,

12/07/26

.

4,426

4,376

FW2199632.UP.FTS.B,

32.42%,

12/07/26

.

4,520

4,468

L2201511.UP.FTS.B,

5.03%,

12/08/26

....

10,180

10,123

L2201100.UP.FTS.B,

5.82%,

12/08/26

....

8,528

8,484

FW2201687.UP.FTS.B,

5.98%,

12/08/26

..

3,984

3,962

L2203382.UP.FTS.B,

6.5%,

12/08/26

....

8,550

8,505

L2203741.UP.FTS.B,

7.33%,

12/08/26

....

17,152

17,022

L2206413.UP.FTS.B,

7.44%,

12/08/26

....

7,722

7,663

L2201126.UP.FTS.B,

7.87%,

12/08/26

....

18,905

18,763

L2200918.UP.FTS.B,

8.74%,

12/08/26

....

3,707

3,679

L2203118.UP.FTS.B,

8.78%,

12/08/26

....

6,886

6,835

L2201288.UP.FTS.B,

9.13%,

12/08/26

....

2,849

2,828

L2206512.UP.FTS.B,

9.18%,

12/08/26

....

11,230

818

L2203530.UP.FTS.B,

9.65%,

12/08/26

....

17,870

17,733

L2197657.UP.FTS.B,

9.74%,

12/08/26

....

3,720

3,692

FW2202215.UP.FTS.B,

9.76%,

12/08/26

..

38,420

38,020

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

168

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2202140.UP.FTS.B,

10.05%,

12/08/26

...

$

3,285

$

3,252

L2202043.UP.FTS.B,

10.08%,

12/08/26

...

17,322

17,195

L2206922.UP.FTS.B,

10.23%,

12/08/26

...

16,323

16,170

L2205692.UP.FTS.B,

10.33%,

12/08/26

...

14,303

14,198

L2205203.UP.FTS.B,

10.54%,

12/08/26

...

16,816

16,637

L2203887.UP.FTS.B,

10.82%,

12/08/26

...

6,947

6,876

L2202359.UP.FTS.B,

10.96%,

12/08/26

...

3,127

3,105

L2205258.UP.FTS.B,

10.97%,

12/08/26

...

3,301

3,268

L2206221.UP.FTS.B,

10.99%,

12/08/26

...

2,688

674

L2202707.UP.FTS.B,

11.01%,

12/08/26

...

8,689

8,599

L2200873.UP.FTS.B,

11.09%,

12/08/26

...

7,822

7,743

L2205661.UP.FTS.B,

11.13%,

12/08/26

...

10,431

10,325

L2201926.UP.FTS.B,

11.2%,

12/08/26

....

1,739

1,726

FW2202691.UP.FTS.B,

11.21%,

12/08/26

.

2,608

2,590

L2204932.UP.FTS.B,

11.21%,

12/08/26

...

13,912

13,771

L2201522.UP.FTS.B,

11.25%,

12/08/26

...

17,392

17,216

L2200600.UP.FTS.B,

11.71%,

12/08/26

...

4,355

4,311

L2200051.UP.FTS.B,

11.78%,

12/08/26

...

9,234

9,142

L2204302.UP.FTS.B,

11.78%,

12/08/26

...

2,606

2,580

L2205067.UP.FTS.B,

11.79%,

12/08/26

...

10,455

10,349

FW2201210.UP.FTS.B,

12.48%,

12/08/26

.

1,746

1,729

L2201401.UP.FTS.B,

12.51%,

12/08/26

...

6,113

6,052

L2201130.UP.FTS.B,

12.56%,

12/08/26

...

4,630

4,581

L2201163.UP.FTS.B,

13.03%,

12/08/26

...

1,853

89

L2201683.UP.FTS.B,

13.05%,

12/08/26

...

2,625

2,599

L2201222.UP.FTS.B,

13.13%,

12/08/26

...

43,757

43,322

L2203910.UP.FTS.B,

13.18%,

12/08/26

...

10,066

9,964

L2202867.UP.FTS.B,

13.27%,

12/08/26

...

4,043

3,998

FW2206272.UP.FTS.B,

13.35%,

12/08/26

.

2,627

2,601

L2206693.UP.FTS.B,

13.43%,

12/08/26

...

3,070

3,039

L2206744.UP.FTS.B,

13.51%,

12/08/26

...

26,286

26,026

L2202159.UP.FTS.B,

13.54%,

12/08/26

...

21,908

21,755

L2206366.UP.FTS.B,

13.56%,

12/08/26

...

2,706

683

FW2201344.UP.FTS.B,

13.64%,

12/08/26

.

5,597

5,541

L2202534.UP.FTS.B,

13.68%,

12/08/26

...

13,151

13,021

L2203497.UP.FTS.B,

13.78%,

12/08/26

...

5,262

5,210

L2203117.UP.FTS.B,

13.79%,

12/08/26

...

7,542

7,468

FW2199867.UP.FTS.B,

13.82%,

12/08/26

.

13,242

13,111

L2203856.UP.FTS.B,

13.82%,

12/08/26

...

26,396

26,133

L2206839.UP.FTS.B,

13.97%,

12/08/26

...

8,925

4,691

L2200884.UP.FTS.B,

13.99%,

12/08/26

...

6,494

6,430

L2204734.UP.FTS.B,

13.99%,

12/08/26

...

3,238

3,206

L2189789.UP.FTS.B,

14.09%,

12/08/26

...

4,305

4,262

L2200815.UP.FTS.B,

14.17%,

12/08/26

...

2,190

2,168

L2201701.UP.FTS.B,

14.19%,

12/08/26

...

6,147

6,086

L2200543.UP.FTS.B,

14.23%,

12/08/26

...

4,391

4,348

FW2206534.UP.FTS.B,

14.38%,

12/08/26

.

2,810

2,783

FW2201365.UP.FTS.B,

14.41%,

12/08/26

.

12,742

12,617

L2200506.UP.FTS.B,

14.67%,

12/08/26

...

5,277

5,225

L2205095.UP.FTS.B,

14.72%,

12/08/26

...

2,380

2,348

L2205970.UP.FTS.B,

14.78%,

12/08/26

...

2,368

2,344

L2203172.UP.FTS.B,

14.86%,

12/08/26

...

8,801

8,714

FW2203636.UP.FTS.B,

14.99%,

12/08/26

.

4,402

4,359

L2206074.UP.FTS.B,

15.01%,

12/08/26

...

6,757

493

L2206751.UP.FTS.B,

15.19%,

12/08/26

...

12,090

11,971

L2201429.UP.FTS.B,

15.27%,

12/08/26

...

10,535

10,431

L2201509.UP.FTS.B,

15.29%,

12/08/26

...

6,285

6,219

L2203888.UP.FTS.B,

15.35%,

12/08/26

...

2,644

2,618

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2196904.UP.FTS.B,

15.38%,

12/08/26

...

$

5,289

$

5,238

L2202058.UP.FTS.B,

15.4%,

12/08/26

....

2,645

2,607

L2201650.UP.FTS.B,

15.45%,

12/08/26

...

3,527

3,492

L2205821.UP.FTS.B,

15.65%,

12/08/26

...

7,450

286

L2205307.UP.FTS.B,

15.66%,

12/08/26

...

1,771

1,746

L2206519.UP.FTS.B,

15.66%,

12/08/26

...

4,713

342

L2193881.UP.FTS.B,

15.75%,

12/08/26

...

3,883

3,828

L2200487.UP.FTS.B,

15.87%,

12/08/26

...

5,650

5,596

L2205432.UP.FTS.B,

15.94%,

12/08/26

...

21,929

21,617

L2205206.UP.FTS.B,

15.97%,

12/08/26

...

26,970

14,930

L2206448.UP.FTS.B,

16%,

12/08/26

.....

9,274

9,184

L2205436.UP.FTS.B,

16.02%,

12/08/26

...

24,975

24,621

L2195672.UP.FTS.B,

16.2%,

12/08/26

....

11,312

11,152

L2205672.UP.FTS.B,

16.4%,

12/08/26

....

22,144

21,928

L2202008.UP.FTS.B,

16.41%,

12/08/26

...

44,600

43,966

L2201272.UP.FTS.B,

16.5%,

12/08/26

....

4,405

4,362

L2202979.UP.FTS.B,

16.63%,

12/08/26

...

1,770

1,753

L2203269.UP.FTS.B,

16.66%,

12/08/26

...

3,983

3,927

L2203656.UP.FTS.B,

16.77%,

12/08/26

...

2,479

2,455

L2205448.UP.FTS.B,

16.81%,

12/08/26

...

9,297

9,137

L2205367.UP.FTS.B,

16.83%,

12/08/26

...

2,751

2,711

L2205691.UP.FTS.B,

16.93%,

12/08/26

...

42,518

41,901

L2206760.UP.FTS.B,

17.01%,

12/08/26

...

40,180

39,609

FW2204874.UP.FTS.B,

17.03%,

12/08/26

.

8,860

8,707

L2200739.UP.FTS.B,

17.06%,

12/08/26

...

2,393

2,359

L2200406.UP.FTS.B,

17.28%,

12/08/26

...

3,902

3,847

L2202818.UP.FTS.B,

17.33%,

12/08/26

...

8,134

8,056

L2201984.UP.FTS.B,

17.35%,

12/08/26

...

5,634

5,552

L2204275.UP.FTS.B,

17.48%,

12/08/26

...

4,953

4,883

L2203876.UP.FTS.B,

17.53%,

12/08/26

...

19,526

19,243

L2202653.UP.FTS.B,

17.59%,

12/08/26

...

11,006

10,851

L2203323.UP.FTS.B,

17.63%,

12/08/26

...

3,994

3,956

L2200549.UP.FTS.B,

17.67%,

12/08/26

...

3,827

278

L2200437.UP.FTS.B,

17.72%,

12/08/26

...

2,220

2,181

L2202435.UP.FTS.B,

17.87%,

12/08/26

...

4,442

4,365

L2206114.UP.FTS.B,

17.92%,

12/08/26

...

1,777

1,752

L2201870.UP.FTS.B,

17.98%,

12/08/26

...

2,666

2,620

L2201314.UP.FTS.B,

18.04%,

12/08/26

...

4,444

4,380

L2203381.UP.FTS.B,

18.04%,

12/08/26

...

9,332

9,201

L2202238.UP.FTS.B,

18.11%,

12/08/26

...

11,556

11,394

L2198222.UP.FTS.B,

18.15%,

12/08/26

...

3,225

3,169

L2200530.UP.FTS.B,

18.44%,

12/08/26

...

8,009

7,896

FW2200514.UP.FTS.B,

18.68%,

12/08/26

.

8,870

8,717

L2202092.UP.FTS.B,

18.74%,

12/08/26

...

4,681

142

L2202316.UP.FTS.B,

18.78%,

12/08/26

...

2,227

2,189

FW2201324.UP.FTS.B,

18.84%,

12/08/26

.

4,207

4,128

L2203614.UP.FTS.B,

18.9%,

12/08/26

....

13,396

13,162

FW2203630.UP.FTS.B,

18.91%,

12/08/26

.

8,888

8,734

L2201012.UP.FTS.B,

19.03%,

12/08/26

...

44,567

43,804

L2202526.UP.FTS.B,

19.03%,

12/08/26

...

8,914

8,830

FW2204149.UP.FTS.B,

19.13%,

12/08/26

.

4,575

2,618

FW2201703.UP.FTS.B,

19.15%,

12/08/26

.

3,114

3,060

L2171699.UP.FTS.B,

19.26%,

12/08/26

...

8,923

8,821

FW2201480.UP.FTS.B,

19.28%,

12/08/26

.

6,244

6,157

L2198227.UP.FTS.B,

19.34%,

12/08/26

...

1,766

1,741

FW2206855.UP.FTS.B,

19.38%,

12/08/26

.

4,461

4,419

L2204746.UP.FTS.B,

19.38%,

12/08/26

...

7,661

557

L2204805.UP.FTS.B,

19.42%,

12/08/26

...

9,548

9,385

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

169

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2200609.UP.FTS.B,

19.43%,

12/08/26

...

$

4,687

$

130

L2205829.UP.FTS.B,

19.56%,

12/08/26

...

9,589

696

L2203740.UP.FTS.B,

19.62%,

12/08/26

...

2,142

2,105

L2204012.UP.FTS.B,

19.62%,

12/08/26

...

2,870

772

L2200814.UP.FTS.B,

19.64%,

12/08/26

...

4,911

4,827

L2201833.UP.FTS.B,

19.78%,

12/08/26

...

4,463

4,387

L2200534.UP.FTS.B,

19.8%,

12/08/26

....

7,148

7,026

L2203346.UP.FTS.B,

19.86%,

12/08/26

...

5,719

5,639

L2203970.UP.FTS.B,

19.89%,

12/08/26

...

1,982

1,948

L2203336.UP.FTS.B,

19.94%,

12/08/26

...

2,935

2,884

FW2185665.UP.FTS.B,

20.17%,

12/08/26

.

13,382

13,195

L2200446.UP.FTS.B,

20.19%,

12/08/26

...

983

967

FW2202220.UP.FTS.B,

20.45%,

12/08/26

.

17,901

17,719

L2198053.UP.FTS.B,

20.47%,

12/08/26

...

3,488

961

L2200528.UP.FTS.B,

20.47%,

12/08/26

...

3,133

3,079

L2201790.UP.FTS.B,

20.6%,

12/08/26

....

2,507

2,463

L2204504.UP.FTS.B,

20.62%,

12/08/26

...

8,925

8,832

FW2201941.UP.FTS.B,

20.91%,

12/08/26

.

3,585

3,535

FW2201844.UP.FTS.B,

20.97%,

12/08/26

.

3,302

1,922

L2202584.UP.FTS.B,

20.98%,

12/08/26

...

6,721

6,606

FW2205623.UP.FTS.B,

21.01%,

12/08/26

.

9,861

9,761

FW2203254.UP.FTS.B,

21.1%,

12/08/26

..

6,357

3,631

L2203340.UP.FTS.B,

21.11%,

12/08/26

...

4,466

4,420

L2202911.UP.FTS.B,

21.13%,

12/08/26

...

5,703

5,603

L2197968.UP.FTS.B,

21.14%,

12/08/26

...

47

47

L2201499.UP.FTS.B,

21.34%,

12/08/26

...

9,870

9,770

L2203266.UP.FTS.B,

21.37%,

12/08/26

...

4,511

4,462

L2203685.UP.FTS.B,

21.52%,

12/08/26

...

3,142

3,110

L2207000.UP.FTS.B,

21.53%,

12/08/26

...

17,955

17,650

L2206634.UP.FTS.B,

21.58%,

12/08/26

...

1,975

1,955

L2200366.UP.FTS.B,

21.62%,

12/08/26

...

14,362

1,036

FW2206963.UP.FTS.B,

21.68%,

12/08/26

.

4,513

4,435

FW2201720.UP.FTS.B,

21.75%,

12/08/26

.

9,612

694

L2206461.UP.FTS.B,

21.8%,

12/08/26

....

3,257

473

FW2200309.UP.FTS.B,

21.86%,

12/08/26

.

3,227

3,194

FW2204080.UP.FTS.B,

22.08%,

12/08/26

.

6,680

6,606

L2200826.UP.FTS.B,

22.16%,

12/08/26

...

8,994

8,903

FW2205781.UP.FTS.B,

22.27%,

12/08/26

.

45,338

44,853

L2204816.UP.FTS.B,

22.27%,

12/08/26

...

8,670

8,514

FW2202543.UP.FTS.B,

22.46%,

12/08/26

.

1,710

1,681

L2200624.UP.FTS.B,

22.5%,

12/08/26

....

1,800

1,770

L2201593.UP.FTS.B,

22.58%,

12/08/26

...

9,004

8,913

L2204327.UP.FTS.B,

22.78%,

12/08/26

...

3,802

3,725

FW2202576.UP.FTS.B,

22.89%,

12/08/26

.

7,209

7,136

L2201275.UP.FTS.B,

22.92%,

12/08/26

...

3,472

3,431

L2203293.UP.FTS.B,

22.93%,

12/08/26

...

1,532

1,506

FW2203667.UP.FTS.B,

23.01%,

12/08/26

.

13,522

13,386

L2204605.UP.FTS.B,

23.02%,

12/08/26

...

4,507

4,462

L2202315.UP.FTS.B,

23.12%,

12/08/26

...

3,509

3,470

FW2201818.UP.FTS.B,

23.31%,

12/08/26

.

2,799

406

L2203120.UP.FTS.B,

23.47%,

12/08/26

...

4,718

66

L2201018.UP.FTS.B,

23.52%,

12/08/26

...

4,514

4,468

L2204624.UP.FTS.B,

23.54%,

12/08/26

...

18,055

17,873

L2203557.UP.FTS.B,

23.55%,

12/08/26

...

1,532

1,513

L2204118.UP.FTS.B,

23.56%,

12/08/26

...

15,431

15,264

L2200929.UP.FTS.B,

23.61%,

12/08/26

...

2,278

1,348

L2205223.UP.FTS.B,

23.62%,

12/08/26

...

4,532

4,483

L2200784.UP.FTS.B,

23.63%,

12/08/26

...

9,022

8,931

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2197277.UP.FTS.B,

23.68%,

12/08/26

...

$

5,870

$

5,811

L2197979.UP.FTS.B,

23.7%,

12/08/26

....

3,609

3,573

L2205882.UP.FTS.B,

23.83%,

12/08/26

...

2,710

2,673

L2204897.UP.FTS.B,

23.87%,

12/08/26

...

24,091

23,758

FW2200085.UP.FTS.B,

23.88%,

12/08/26

.

2,711

2,683

L2169986.UP.FTS.B,

24.03%,

12/08/26

...

13,558

13,422

FW2202739.UP.FTS.B,

24.09%,

12/08/26

.

2,170

2,148

L2205789.UP.FTS.B,

24.11%,

12/08/26

...

5,425

5,370

L2205964.UP.FTS.B,

24.11%,

12/08/26

...

2,531

2,506

L2200886.UP.FTS.B,

24.19%,

12/08/26

...

4,547

4,470

FW2200940.UP.FTS.B,

24.2%,

12/08/26

..

1,150

658

L2203589.UP.FTS.B,

24.35%,

12/08/26

...

4,469

4,421

L2201603.UP.FTS.B,

24.38%,

12/08/26

...

4,525

4,479

L2199578.UP.FTS.B,

24.39%,

12/08/26

...

1,448

1,423

FW2206202.UP.FTS.B,

24.48%,

12/08/26

.

1,908

136

L2204440.UP.FTS.B,

24.51%,

12/08/26

...

1,086

1,075

L2203333.UP.FTS.B,

24.53%,

12/08/26

...

2,534

2,509

L2200752.UP.FTS.B,

24.63%,

12/08/26

...

905

895

FW2202542.UP.FTS.B,

24.64%,

12/08/26

.

4,099

4,056

FW2200668.UP.FTS.B,

24.66%,

12/08/26

.

11,318

11,205

L2201796.UP.FTS.B,

24.67%,

12/08/26

...

9,453

1,383

L2205328.UP.FTS.B,

24.68%,

12/08/26

...

1,822

1,803

FW2198942.UP.FTS.B,

24.77%,

12/08/26

.

17,432

17,238

L2200911.UP.FTS.B,

24.82%,

12/08/26

...

4,313

4,261

L2205953.UP.FTS.B,

24.83%,

12/08/26

...

2,473

2,424

FW2200947.UP.FTS.B,

24.84%,

12/08/26

.

4,076

4,036

L2201876.UP.FTS.B,

24.84%,

12/08/26

...

996

987

L2204697.UP.FTS.B,

24.89%,

12/08/26

...

18,118

17,938

L2198801.UP.FTS.B,

24.91%,

12/08/26

...

2,718

2,691

L2200418.UP.FTS.B,

24.91%,

12/08/26

...

6,965

6,848

L2201388.UP.FTS.B,

24.93%,

12/08/26

...

2,676

2,648

L2201658.UP.FTS.B,

24.93%,

12/08/26

...

1,178

1,158

L2200868.UP.FTS.B,

24.96%,

12/08/26

...

2,428

2,399

L2205812.UP.FTS.B,

24.97%,

12/08/26

...

3,307

949

L2206379.UP.FTS.B,

24.97%,

12/08/26

...

5,852

5,774

L2201301.UP.FTS.B,

25.03%,

12/08/26

...

3,982

3,942

L2203217.UP.FTS.B,

25.16%,

12/08/26

...

997

987

L2202329.UP.FTS.B,

25.17%,

12/08/26

...

2,220

2,189

L2198735.UP.FTS.B,

25.18%,

12/08/26

...

6,464

6,395

L2203757.UP.FTS.B,

25.2%,

12/08/26

....

2,758

197

L2205039.UP.FTS.B,

25.2%,

12/08/26

....

3,117

3,065

L2202422.UP.FTS.B,

25.21%,

12/08/26

...

3,264

3,226

L2201763.UP.FTS.B,

25.22%,

12/08/26

...

6,280

6,194

L2203014.UP.FTS.B,

25.25%,

12/08/26

...

4,534

4,489

L2203187.UP.FTS.B,

25.25%,

12/08/26

...

3,537

3,501

L2203545.UP.FTS.B,

25.27%,

12/08/26

...

1,633

1,615

L2201547.UP.FTS.B,

25.28%,

12/08/26

...

2,268

2,243

L2205603.UP.FTS.B,

25.29%,

12/08/26

...

6,851

488

L2204236.UP.FTS.B,

25.3%,

12/08/26

....

5,560

5,497

L2205000.UP.FTS.B,

25.31%,

12/08/26

...

907

895

L2203159.UP.FTS.B,

25.32%,

12/08/26

...

13,373

13,169

L2202447.UP.FTS.B,

25.34%,

12/08/26

...

1,831

1,812

L2201267.UP.FTS.B,

25.35%,

12/08/26

...

1,091

1,079

L2207019.UP.FTS.B,

25.36%,

12/08/26

...

1,519

1,499

L2203473.UP.FTS.B,

25.37%,

12/08/26

...

2,001

1,967

L2206798.UP.FTS.B,

25.37%,

12/08/26

...

2,260

2,218

L2204385.UP.FTS.B,

25.38%,

12/08/26

...

1,089

1,078

L2204638.UP.FTS.B,

25.39%,

12/08/26

...

2,998

433

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

170

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2203646.UP.FTS.B,

25.41%,

12/08/26

...

$

1,030

$

145

L2204272.UP.FTS.B,

25.42%,

12/08/26

...

1,468

1,451

L2201606.UP.FTS.B,

25.43%,

12/08/26

...

2,449

2,425

L2200684.UP.FTS.B,

25.47%,

12/08/26

...

4,358

1,246

L2201578.UP.FTS.B,

25.47%,

12/08/26

...

19,896

1,431

L2200539.UP.FTS.B,

25.48%,

12/08/26

...

4,900

4,851

L2202562.UP.FTS.B,

25.48%,

12/08/26

...

1,178

85

L2200596.UP.FTS.B,

25.49%,

12/08/26

...

9,436

9,343

L2174737.UP.FTS.B,

25.5%,

12/08/26

....

7,044

502

L2202382.UP.FTS.B,

25.5%,

12/08/26

....

1,633

1,617

L2205914.UP.FTS.B,

25.51%,

12/08/26

...

2,075

149

L2204469.UP.FTS.B,

25.55%,

12/08/26

...

2,825

2,794

FW2205017.UP.FTS.B,

25.6%,

12/08/26

..

8,317

2,377

L2206619.UP.FTS.B,

25.63%,

12/08/26

...

6,808

6,740

FW2202148.UP.FTS.B,

25.64%,

12/08/26

.

2,296

1,362

L2201626.UP.FTS.B,

25.65%,

12/08/26

...

5,810

5,752

L2201840.UP.FTS.B,

25.74%,

12/08/26

...

31,189

2,220

FW2203682.UP.FTS.B,

25.75%,

12/08/26

.

1,515

8

FW2202207.UP.FTS.B,

25.82%,

12/08/26

.

9,708

9,611

L2206615.UP.FTS.B,

25.87%,

12/08/26

...

13,151

13,005

FW2201315.UP.FTS.B,

25.9%,

12/08/26

..

9,559

680

FW2202260.UP.FTS.B,

25.91%,

12/08/26

.

1,159

83

L2200110.UP.FTS.B,

25.93%,

12/08/26

...

6,814

6,740

L2205529.UP.FTS.B,

25.96%,

12/08/26

...

6,359

6,296

FW2202648.UP.FTS.B,

26.05%,

12/08/26

.

7,263

7,191

L2200501.UP.FTS.B,

26.06%,

12/08/26

...

1,999

1,979

FW2201661.UP.FTS.B,

26.35%,

12/08/26

.

13,640

13,505

FW2204619.UP.FTS.B,

26.36%,

12/08/26

.

2,273

2,251

L2200760.UP.FTS.B,

26.49%,

12/08/26

...

10,007

9,908

L2203179.UP.FTS.B,

26.54%,

12/08/26

...

3,639

3,603

L2206371.UP.FTS.B,

26.6%,

12/08/26

....

2,392

52

L2200890.UP.FTS.B,

26.66%,

12/08/26

...

4,247

623

L2203211.UP.FTS.B,

26.69%,

12/08/26

...

10,106

1,459

FW2205293.UP.FTS.B,

26.73%,

12/08/26

.

3,641

3,605

FW2205905.UP.FTS.B,

26.96%,

12/08/26

.

1,893

545

FW2205802.UP.FTS.B,

27%,

12/08/26

...

3,223

3,190

FW2205878.UP.FTS.B,

27.25%,

12/08/26

.

1,823

1,803

FW2200840.UP.FTS.B,

27.39%,

12/08/26

.

7,658

7,583

FW2205131.UP.FTS.B,

27.64%,

12/08/26

.

2,828

2,800

FW2202637.UP.FTS.B,

27.67%,

12/08/26

.

10,035

9,937

FW2204516.UP.FTS.B,

27.99%,

12/08/26

.

4,558

4,513

FW2205704.UP.FTS.B,

28.05%,

12/08/26

.

4,566

4,521

FW2206331.UP.FTS.B,

28.09%,

12/08/26

.

9,589

9,495

FW2206860.UP.FTS.B,

28.2%,

12/08/26

..

3,197

3,166

FW2205370.UP.FTS.B,

28.26%,

12/08/26

.

6,003

5,937

FW2200263.UP.FTS.B,

28.29%,

12/08/26

.

16,447

16,286

FW2202084.UP.FTS.B,

28.33%,

12/08/26

.

1,371

1,357

FW2206080.UP.FTS.B,

28.43%,

12/08/26

.

3,240

1,927

FW2205751.UP.FTS.B,

28.59%,

12/08/26

.

1,098

1,086

FW2199479.UP.FTS.B,

28.66%,

12/08/26

.

13,718

13,584

FW2196644.UP.FTS.B,

28.68%,

12/08/26

.

3,330

(19)

FW2202805.UP.FTS.B,

28.71%,

12/08/26

.

2,517

179

FW2202420.UP.FTS.B,

28.72%,

12/08/26

.

4,418

4,367

FW2203128.UP.FTS.B,

28.72%,

12/08/26

.

919

909

FW2200463.UP.FTS.B,

28.91%,

12/08/26

.

1,098

1,087

FW2206016.UP.FTS.B,

28.92%,

12/08/26

.

2,102

2,061

FW2201925.UP.FTS.B,

29.05%,

12/08/26

.

1,199

1,184

FW2200712.UP.FTS.B,

29.25%,

12/08/26

.

2,767

2,738

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2195267.UP.FTS.B,

29.27%,

12/08/26

.

$

6,777

$

6,711

FW2205727.UP.FTS.B,

29.33%,

12/08/26

.

10,097

9,990

FW2204212.UP.FTS.B,

29.48%,

12/08/26

.

14,935

14,790

FW2202312.UP.FTS.B,

29.54%,

12/08/26

.

6,720

472

FW2203404.UP.FTS.B,

29.65%,

12/08/26

.

1,767

1,748

FW2201641.UP.FTS.B,

29.67%,

12/08/26

.

7,517

7,444

FW2206862.UP.FTS.B,

29.87%,

12/08/26

.

4,402

4,360

FW2202455.UP.FTS.B,

29.91%,

12/08/26

.

2,887

(87)

FW2200914.UP.FTS.B,

29.96%,

12/08/26

.

15,874

15,633

FW2204135.UP.FTS.B,

30.05%,

12/08/26

.

4,803

337

FW2201513.UP.FTS.B,

30.22%,

12/08/26

.

1,560

1,545

FW2205595.UP.FTS.B,

30.3%,

12/08/26

..

4,035

283

FW2204427.UP.FTS.B,

30.34%,

12/08/26

.

7,345

7,274

FW2203423.UP.FTS.B,

30.49%,

12/08/26

.

918

909

FW2201341.UP.FTS.B,

30.5%,

12/08/26

..

9,505

1,362

FW2204255.UP.FTS.B,

30.54%,

12/08/26

.

1,470

1,455

FW2202866.UP.FTS.B,

30.6%,

12/08/26

..

1,011

1,001

FW2204565.UP.FTS.B,

30.62%,

12/08/26

.

5,239

(63)

FW2205951.UP.FTS.B,

30.74%,

12/08/26

.

47,339

6,768

FW2200422.UP.FTS.B,

30.75%,

12/08/26

.

6,433

6,371

FW2200654.UP.FTS.B,

30.75%,

12/08/26

.

3,280

25

FW2203485.UP.FTS.B,

30.82%,

12/08/26

.

1,505

105

FW2205386.UP.FTS.B,

30.87%,

12/08/26

.

8,986

8,889

FW2197539.UP.FTS.B,

30.89%,

12/08/26

.

5,572

3,321

FW2201735.UP.FTS.B,

30.95%,

12/08/26

.

1,103

1,093

FW2202156.UP.FTS.B,

31.02%,

12/08/26

.

1,154

27

FW2201142.UP.FTS.B,

31.05%,

12/08/26

.

920

911

FW2202624.UP.FTS.B,

31.06%,

12/08/26

.

2,174

310

FW2203290.UP.FTS.B,

31.07%,

12/08/26

.

1,288

1,275

FW2206683.UP.FTS.B,

31.07%,

12/08/26

.

1,916

1,896

FW2201843.UP.FTS.B,

31.08%,

12/08/26

.

1,563

1,548

FW2205002.UP.FTS.B,

31.08%,

12/08/26

.

2,851

2,824

FW2202334.UP.FTS.B,

31.12%,

12/08/26

.

3,492

247

FW2200524.UP.FTS.B,

31.14%,

12/08/26

.

6,279

6,208

FW2201347.UP.FTS.B,

31.17%,

12/08/26

.

2,358

2,333

FW2199311.UP.FTS.B,

31.18%,

12/08/26

.

1,288

1,275

FW2205181.UP.FTS.B,

31.19%,

12/08/26

.

1,932

1,913

FW2200444.UP.FTS.B,

31.21%,

12/08/26

.

3,606

3,569

FW2201322.UP.FTS.B,

31.21%,

12/08/26

.

2,627

184

FW2201772.UP.FTS.B,

31.27%,

12/08/26

.

5,060

5,012

FW2203252.UP.FTS.B,

31.37%,

12/08/26

.

3,420

484

FW2203711.UP.FTS.B,

31.37%,

12/08/26

.

8,835

8,749

FW2202425.UP.FTS.B,

31.38%,

12/08/26

.

3,221

3,190

FW2200697.UP.FTS.B,

31.46%,

12/08/26

.

3,203

3,170

FW2201710.UP.FTS.B,

31.5%,

12/08/26

..

4,731

675

FW2199126.UP.FTS.B,

31.54%,

12/08/26

.

5,708

5,653

FW2202345.UP.FTS.B,

31.56%,

12/08/26

.

4,041

282

FW2201498.UP.FTS.B,

31.9%,

12/08/26

..

5,805

5,749

FW2203562.UP.FTS.B,

32.34%,

12/08/26

.

5,534

5,480

FW2411209.UP.FTS.B,

5.24%,

1/11/27

...

17,321

17,231

L2411009.UP.FTS.B,

5.26%,

1/11/27

.....

30,313

30,157

FW2412321.UP.FTS.B,

5.36%,

1/11/27

...

43,320

43,097

L2408655.UP.FTS.B,

5.7%,

1/11/27

......

18,302

18,208

L2409091.UP.FTS.B,

5.78%,

1/11/27

.....

1,909

1,899

L2402399.UP.FTS.B,

6.09%,

1/11/27

.....

23,537

23,416

FW2408524.UP.FTS.B,

6.18%,

1/11/27

...

9,383

9,335

L2413519.UP.FTS.B,

6.19%,

1/11/27

.....

21,754

21,645

FW2411884.UP.FTS.B,

6.2%,

1/11/27

....

21,721

21,610

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

171

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2411685.UP.FTS.B,

7.25%,

1/11/27

.....

$

13,091

$

12,994

L2411160.UP.FTS.B,

7.26%,

1/11/27

.....

13,078

13,012

FW2406810.UP.FTS.B,

7.3%,

1/11/27

....

5,519

5,491

L2410292.UP.FTS.B,

7.3%,

1/11/27

......

3,655

3,628

L2411745.UP.FTS.B,

7.47%,

1/11/27

.....

6,108

6,062

L2408660.UP.FTS.B,

7.61%,

1/11/27

.....

6,023

5,978

L2412468.UP.FTS.B,

7.67%,

1/11/27

.....

38,987

9,424

L2412785.UP.FTS.B,

7.81%,

1/11/27

.....

1,747

1,734

L2412559.UP.FTS.B,

7.83%,

1/11/27

.....

4,193

4,159

L2408557.UP.FTS.B,

7.86%,

1/11/27

.....

4,368

4,336

L2407811.UP.FTS.B,

7.94%,

1/11/27

.....

6,992

6,940

L2412462.UP.FTS.B,

7.99%,

1/11/27

.....

3,059

3,036

L2412874.UP.FTS.B,

8.03%,

1/11/27

.....

5,970

5,924

L2413039.UP.FTS.B,

8.03%,

1/11/27

.....

13,111

13,014

L2412920.UP.FTS.B,

8.25%,

1/11/27

.....

13,120

13,023

FW2407114.UP.FTS.B,

8.36%,

1/11/27

...

11,342

828

L2412901.UP.FTS.B,

8.44%,

1/11/27

.....

13,359

6,781

L2410004.UP.FTS.B,

8.45%,

1/11/27

.....

8,403

8,340

L2410102.UP.FTS.B,

8.56%,

1/11/27

.....

3,065

3,042

L2410384.UP.FTS.B,

8.56%,

1/11/27

.....

18,913

18,773

FW2413850.UP.FTS.B,

8.58%,

1/11/27

...

9,370

9,301

L2413727.UP.FTS.B,

8.61%,

1/11/27

.....

3,766

3,738

L2409419.UP.FTS.B,

8.66%,

1/11/27

.....

8,759

8,694

L2412142.UP.FTS.B,

8.74%,

1/11/27

.....

14,806

14,696

FW2410081.UP.FTS.B,

8.78%,

1/11/27

...

15,772

15,655

L2413256.UP.FTS.B,

8.78%,

1/11/27

.....

15,772

15,655

FW2413835.UP.FTS.B,

8.81%,

1/11/27

...

9,948

2,410

FW2409381.UP.FTS.B,

8.85%,

1/11/27

...

3,944

3,915

L2407187.UP.FTS.B,

8.85%,

1/11/27

.....

4,374

4,341

L2413316.UP.FTS.B,

8.98%,

1/11/27

.....

10,532

10,454

FW2411415.UP.FTS.B,

9.04%,

1/11/27

...

6,027

5,982

FW2413111.UP.FTS.B,

9.07%,

1/11/27

...

6,995

6,943

FW2411385.UP.FTS.B,

9.23%,

1/11/27

...

7,897

7,839

L2405469.UP.FTS.B,

9.26%,

1/11/27

.....

6,948

6,896

L2411758.UP.FTS.B,

9.34%,

1/11/27

.....

992

517

FW2413046.UP.FTS.B,

9.47%,

1/11/27

...

6,300

6,251

L2408994.UP.FTS.B,

9.47%,

1/11/27

.....

6,602

6,553

L2410685.UP.FTS.B,

9.48%,

1/11/27

.....

7,905

7,847

L2408154.UP.FTS.B,

9.67%,

1/11/27

.....

13,365

1,774

L2412775.UP.FTS.B,

9.82%,

1/11/27

.....

21,821

21,598

FW2406985.UP.FTS.B,

9.83%,

1/11/27

...

2,637

2,618

L2412433.UP.FTS.B,

9.93%,

1/11/27

.....

7,475

7,399

L2404630.UP.FTS.B,

10.03%,

1/11/27

....

43,985

43,661

L2411759.UP.FTS.B,

10.11%,

1/11/27

....

19,292

19,149

L2411458.UP.FTS.B,

10.12%,

1/11/27

....

1,936

1,922

L2411928.UP.FTS.B,

10.18%,

1/11/27

....

4,400

4,356

L2408600.UP.FTS.B,

10.21%,

1/11/27

....

3,774

3,736

L2408318.UP.FTS.B,

10.27%,

1/11/27

....

3,521

3,486

FW2412294.UP.FTS.B,

10.3%,

1/11/27

...

4,738

346

L2412184.UP.FTS.B,

10.32%,

1/11/27

....

2,843

208

L2413945.UP.FTS.B,

10.53%,

1/11/27

....

19,382

19,186

L2411092.UP.FTS.B,

10.65%,

1/11/27

....

8,407

8,322

L2411539.UP.FTS.B,

10.75%,

1/11/27

....

5,304

5,250

L2411021.UP.FTS.B,

10.83%,

1/11/27

....

7,034

6,982

FW2412113.UP.FTS.B,

10.85%,

1/11/27

..

22,048

21,825

L2411940.UP.FTS.B,

10.86%,

1/11/27

....

1,940

1,921

L2409581.UP.FTS.B,

10.9%,

1/11/27

.....

9,355

533

L2411297.UP.FTS.B,

10.9%,

1/11/27

.....

7,850

7,771

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2413322.UP.FTS.B,

10.93%,

1/11/27

....

$

9,351

$

9,256

L2409346.UP.FTS.B,

10.95%,

1/11/27

....

13,233

13,099

L2413229.UP.FTS.B,

11.26%,

1/11/27

....

15,853

15,691

L2406699.UP.FTS.B,

11.27%,

1/11/27

....

4,212

234

L2407799.UP.FTS.B,

11.35%,

1/11/27

....

10,919

2,746

FW2413104.UP.FTS.B,

11.4%,

1/11/27

...

10,578

10,471

FW2409223.UP.FTS.B,

11.43%,

1/11/27

..

1,939

263

L2410182.UP.FTS.B,

11.47%,

1/11/27

....

13,220

13,097

L2411571.UP.FTS.B,

11.47%,

1/11/27

....

6,892

6,820

L2413044.UP.FTS.B,

11.78%,

1/11/27

....

7,075

7,004

L2410361.UP.FTS.B,

11.82%,

1/11/27

....

9,730

9,632

FW2408471.UP.FTS.B,

11.94%,

1/11/27

..

5,309

5,255

L2405206.UP.FTS.B,

12.1%,

1/11/27

.....

21,306

21,091

L2413627.UP.FTS.B,

12.33%,

1/11/27

....

27,497

6,939

L2370107.UP.FTS.B,

12.85%,

1/11/27

....

4,347

4,304

L2412100.UP.FTS.B,

13.07%,

1/11/27

....

5,804

5,746

L2409206.UP.FTS.B,

13.1%,

1/11/27

.....

3,547

3,511

L2413356.UP.FTS.B,

13.4%,

1/11/27

.....

7,625

551

L2411596.UP.FTS.B,

13.42%,

1/11/27

....

4,430

4,385

L2411372.UP.FTS.B,

13.45%,

1/11/27

....

5,333

5,279

FW2412293.UP.FTS.B,

13.57%,

1/11/27

..

4,690

4,643

FW2411936.UP.FTS.B,

13.61%,

1/11/27

..

6,799

6,730

FW2412839.UP.FTS.B,

13.8%,

1/11/27

...

9,535

9,439

FW2407206.UP.FTS.B,

13.82%,

1/11/27

..

5,339

5,285

FW2410061.UP.FTS.B,

13.89%,

1/11/27

..

17,799

17,620

L2412970.UP.FTS.B,

14.15%,

1/11/27

....

27,272

14,339

L2409821.UP.FTS.B,

14.42%,

1/11/27

....

4,813

4,765

L2410324.UP.FTS.B,

14.46%,

1/11/27

....

17,024

16,851

L2405215.UP.FTS.B,

14.48%,

1/11/27

....

25,852

25,579

L2408774.UP.FTS.B,

14.55%,

1/11/27

....

3,567

3,516

FW2412832.UP.FTS.B,

14.73%,

1/11/27

..

5,575

756

L2410681.UP.FTS.B,

14.74%,

1/11/27

....

2,230

2,208

L2408843.UP.FTS.B,

14.84%,

1/11/27

....

2,723

2,694

L2407539.UP.FTS.B,

14.97%,

1/11/27

....

10,808

5,670

L2412759.UP.FTS.B,

15.38%,

1/11/27

....

5,363

5,287

L2412202.UP.FTS.B,

15.67%,

1/11/27

....

5,367

5,313

FW2409433.UP.FTS.B,

15.77%,

1/11/27

..

22,369

22,146

L2410725.UP.FTS.B,

15.84%,

1/11/27

....

17,450

17,269

L2413295.UP.FTS.B,

15.96%,

1/11/27

....

5,829

5,744

L2408436.UP.FTS.B,

15.99%,

1/11/27

....

35,811

35,301

FW2412862.UP.FTS.B,

16.01%,

1/11/27

..

9,133

9,041

L2379748.UP.FTS.B,

16.06%,

1/11/27

....

3,940

3,884

L2410414.UP.FTS.B,

16.07%,

1/11/27

....

4,453

4,389

L2413878.UP.FTS.B,

16.28%,

1/11/27

....

9,873

9,774

L2413797.UP.FTS.B,

16.41%,

1/11/27

....

8,928

8,800

L2412207.UP.FTS.B,

16.44%,

1/11/27

....

1,699

66

L2406986.UP.FTS.B,

16.62%,

1/11/27

....

4,484

4,420

L2412621.UP.FTS.B,

16.62%,

1/11/27

....

3,587

3,536

L2407022.UP.FTS.B,

16.96%,

1/11/27

....

4,488

4,425

L2409264.UP.FTS.B,

16.99%,

1/11/27

....

8,978

8,850

FW2411635.UP.FTS.B,

17.05%,

1/11/27

..

4,579

4,500

FW2412497.UP.FTS.B,

17.05%,

1/11/27

..

8,979

8,851

L2412903.UP.FTS.B,

17.31%,

1/11/27

....

1,451

104

FW2407072.UP.FTS.B,

17.38%,

1/11/27

..

4,494

4,449

L2411840.UP.FTS.B,

17.48%,

1/11/27

....

25,804

25,548

FW2410259.UP.FTS.B,

17.51%,

1/11/27

..

8,794

8,693

L2406982.UP.FTS.B,

17.53%,

1/11/27

....

8,182

8,040

L2412808.UP.FTS.B,

17.54%,

1/11/27

....

8,991

8,863

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

172

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2410494.UP.FTS.B,

17.56%,

1/11/27

....

$

17,983

$

17,728

FW2411466.UP.FTS.B,

17.75%,

1/11/27

..

1,799

1,774

L2407285.UP.FTS.B,

17.96%,

1/11/27

....

4,501

4,423

FW2407640.UP.FTS.B,

18.05%,

1/11/27

..

9,904

9,805

FW2407472.UP.FTS.B,

18.08%,

1/11/27

..

23,410

23,178

L2410765.UP.FTS.B,

18.19%,

1/11/27

....

6,713

6,616

L2410306.UP.FTS.B,

18.23%,

1/11/27

....

6,305

6,243

FW2413451.UP.FTS.B,

18.29%,

1/11/27

..

2,252

2,213

L2412214.UP.FTS.B,

18.34%,

1/11/27

....

2,716

2,689

L2407240.UP.FTS.B,

18.45%,

1/11/27

....

9,242

2,548

L2413233.UP.FTS.B,

18.45%,

1/11/27

....

2,253

2,221

L2412345.UP.FTS.B,

18.51%,

1/11/27

....

3,066

3,014

L2406617.UP.FTS.B,

18.6%,

1/11/27

.....

1,915

138

L2413035.UP.FTS.B,

18.66%,

1/11/27

....

2,668

2,621

FW2406958.UP.FTS.B,

18.83%,

1/11/27

..

2,209

2,177

L2407160.UP.FTS.B,

18.83%,

1/11/27

....

15,788

15,564

FW2406995.UP.FTS.B,

18.92%,

1/11/27

..

11,149

10,976

L2409397.UP.FTS.B,

18.93%,

1/11/27

....

7,220

7,117

L2413429.UP.FTS.B,

19.09%,

1/11/27

....

808

799

L2407535.UP.FTS.B,

19.16%,

1/11/27

....

4,876

4,807

L2412374.UP.FTS.B,

19.25%,

1/11/27

....

10,871

10,746

L2413002.UP.FTS.B,

19.57%,

1/11/27

....

3,977

3,909

L2410320.UP.FTS.B,

19.7%,

1/11/27

.....

9,393

682

L2407259.UP.FTS.B,

19.81%,

1/11/27

....

8,278

2,292

FW2410395.UP.FTS.B,

20.34%,

1/11/27

..

4,529

4,450

FW2412607.UP.FTS.B,

20.39%,

1/11/27

..

4,336

4,288

FW2410858.UP.FTS.B,

20.48%,

1/11/27

..

2,003

1,975

L2395966.UP.FTS.B,

20.59%,

1/11/27

....

14,863

14,705

FW2412890.UP.FTS.B,

20.68%,

1/11/27

..

9,065

8,968

FW2410350.UP.FTS.B,

20.75%,

1/11/27

..

9,067

8,970

L2406944.UP.FTS.B,

20.79%,

1/11/27

....

9,647

9,536

FW2411255.UP.FTS.B,

20.89%,

1/11/27

..

4,280

632

L2402977.UP.FTS.B,

20.95%,

1/11/27

....

1,832

1,812

L2407644.UP.FTS.B,

21.08%,

1/11/27

....

3,630

3,591

FW2409292.UP.FTS.B,

21.09%,

1/11/27

..

23,483

3,366

L2412421.UP.FTS.B,

21.23%,

1/11/27

....

2,457

2,428

L2406830.UP.FTS.B,

21.4%,

1/11/27

.....

16,917

2,424

L2410708.UP.FTS.B,

21.43%,

1/11/27

....

2,192

2,159

L2410907.UP.FTS.B,

21.6%,

1/11/27

.....

3,180

3,146

FW2411595.UP.FTS.B,

21.83%,

1/11/27

..

4,545

4,467

FW2413140.UP.FTS.B,

22.12%,

1/11/27

..

4,549

4,500

L2413585.UP.FTS.B,

22.13%,

1/11/27

....

7,278

7,201

FW2413038.UP.FTS.B,

22.18%,

1/11/27

..

1,820

1,800

L2413170.UP.FTS.B,

22.26%,

1/11/27

....

6,862

6,765

FW2411932.UP.FTS.B,

22.38%,

1/11/27

..

4,894

2,586

L2413345.UP.FTS.B,

22.45%,

1/11/27

....

5,463

5,404

L2410843.UP.FTS.B,

22.81%,

1/11/27

....

4,101

4,057

FW2412276.UP.FTS.B,

22.84%,

1/11/27

..

3,565

3,524

FW2408730.UP.FTS.B,

22.91%,

1/11/27

..

16,276

16,094

L2410433.UP.FTS.B,

22.92%,

1/11/27

....

1,823

1,792

FW2409793.UP.FTS.B,

22.96%,

1/11/27

..

9,118

9,020

L2410796.UP.FTS.B,

23%,

1/11/27

......

6,545

6,474

L2410622.UP.FTS.B,

23.11%,

1/11/27

....

4,377

4,331

L2413027.UP.FTS.B,

23.16%,

1/11/27

....

7,296

7,218

L2399356.UP.FTS.B,

23.25%,

1/11/27

....

5,473

5,415

FW2412083.UP.FTS.B,

23.34%,

1/11/27

..

4,197

4,152

FW2411494.UP.FTS.B,

23.55%,

1/11/27

..

3,395

981

L2411082.UP.FTS.B,

23.57%,

1/11/27

....

10,491

10,379

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2408703.UP.FTS.B,

23.63%,

1/11/27

....

$

5,391

$

5,329

L2413373.UP.FTS.B,

23.72%,

1/11/27

....

27,658

27,353

L2411227.UP.FTS.B,

23.8%,

1/11/27

.....

3,821

562

FW2413529.UP.FTS.B,

23.86%,

1/11/27

..

1,827

1,808

L2412570.UP.FTS.B,

23.87%,

1/11/27

....

19,069

274

L2411288.UP.FTS.B,

23.94%,

1/11/27

....

10,807

1,569

L2409471.UP.FTS.B,

23.96%,

1/11/27

....

5,482

5,424

L2412292.UP.FTS.B,

24.03%,

1/11/27

....

17,246

10,236

L2413379.UP.FTS.B,

24.03%,

1/11/27

....

18,278

18,083

L2413360.UP.FTS.B,

24.07%,

1/11/27

....

1,828

1,809

FW2412786.UP.FTS.B,

24.26%,

1/11/27

..

7,773

7,690

L2413922.UP.FTS.B,

24.27%,

1/11/27

....

3,099

223

L2412474.UP.FTS.B,

24.3%,

1/11/27

.....

6,375

6,264

L2406745.UP.FTS.B,

24.41%,

1/11/27

....

1,994

558

FW2409686.UP.FTS.B,

24.48%,

1/11/27

..

6,407

6,338

FW2412331.UP.FTS.B,

24.55%,

1/11/27

..

18,701

5,369

FW2411158.UP.FTS.B,

24.56%,

1/11/27

..

2,856

419

L2411714.UP.FTS.B,

24.56%,

1/11/27

....

2,460

2,433

L2407599.UP.FTS.B,

24.69%,

1/11/27

....

10,807

10,687

FW2409812.UP.FTS.B,

24.81%,

1/11/27

..

2,730

2,700

L2402374.UP.FTS.B,

24.82%,

1/11/27

....

936

254

L2412557.UP.FTS.B,

24.83%,

1/11/27

....

6,614

967

L2407837.UP.FTS.B,

24.89%,

1/11/27

....

2,693

2,658

FW2411057.UP.FTS.B,

24.91%,

1/11/27

..

3,225

3,189

FW2407461.UP.FTS.B,

25.01%,

1/11/27

..

4,580

4,531

L2410747.UP.FTS.B,

25.02%,

1/11/27

....

1,374

1,359

L2413166.UP.FTS.B,

25.02%,

1/11/27

....

2,620

1,557

L2413478.UP.FTS.B,

25.02%,

1/11/27

....

3,174

919

L2407824.UP.FTS.B,

25.08%,

1/11/27

....

3,756

3,716

L2389901.UP.FTS.B,

25.09%,

1/11/27

....

1,067

1,048

L2412701.UP.FTS.B,

25.09%,

1/11/27

....

1,183

1,166

L2412420.UP.FTS.B,

25.12%,

1/11/27

....

1,344

1,329

L2402682.UP.FTS.B,

25.13%,

1/11/27

....

1,008

997

L2410276.UP.FTS.B,

25.16%,

1/11/27

....

875

864

L2412631.UP.FTS.B,

25.16%,

1/11/27

....

1,191

1,178

FW2412505.UP.FTS.B,

25.22%,

1/11/27

..

4,307

4,261

L2406959.UP.FTS.B,

25.22%,

1/11/27

....

10,509

10,374

L2413584.UP.FTS.B,

25.24%,

1/11/27

....

1,100

1,081

L2413218.UP.FTS.B,

25.25%,

1/11/27

....

1,124

314

L2412108.UP.FTS.B,

25.28%,

1/11/27

....

3,264

(33)

L2406872.UP.FTS.B,

25.29%,

1/11/27

....

4,860

4,808

L2413560.UP.FTS.B,

25.29%,

1/11/27

....

3,220

3,183

L2410164.UP.FTS.B,

25.3%,

1/11/27

.....

1,110

1,098

L2412052.UP.FTS.B,

25.3%,

1/11/27

.....

12,334

12,154

L2406611.UP.FTS.B,

25.32%,

1/11/27

....

21,268

21,020

FW2411982.UP.FTS.B,

25.34%,

1/11/27

..

4,566

4,515

L2409213.UP.FTS.B,

25.34%,

1/11/27

....

4,908

2,914

L2413580.UP.FTS.B,

25.34%,

1/11/27

....

1,639

117

L2411780.UP.FTS.B,

25.37%,

1/11/27

....

3,330

3,278

L2413809.UP.FTS.B,

25.37%,

1/11/27

....

7,244

7,167

L2393106.UP.FTS.B,

25.38%,

1/11/27

....

8,809

5,061

L2409900.UP.FTS.B,

25.4%,

1/11/27

.....

929

552

L2411491.UP.FTS.B,

25.4%,

1/11/27

.....

2,265

2,226

L2413553.UP.FTS.B,

25.42%,

1/11/27

....

1,265

90

L2407550.UP.FTS.B,

25.46%,

1/11/27

....

1,040

152

L2412889.UP.FTS.B,

25.46%,

1/11/27

....

1,742

1,724

L2406911.UP.FTS.B,

25.47%,

1/11/27

....

2,038

2,007

L2411973.UP.FTS.B,

25.47%,

1/11/27

....

1,192

1,179

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

173

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2411979.UP.FTS.B,

25.48%,

1/11/27

....

$

1,008

$

997

L2412081.UP.FTS.B,

25.48%,

1/11/27

....

5,777

5,715

L2411173.UP.FTS.B,

25.49%,

1/11/27

....

1,284

1,271

L2413595.UP.FTS.B,

25.51%,

1/11/27

....

3,026

2,994

L2412805.UP.FTS.B,

25.53%,

1/11/27

....

6,145

6,079

FW2412928.UP.FTS.B,

25.61%,

1/11/27

..

1,835

1,815

FW2407809.UP.FTS.B,

25.64%,

1/11/27

..

11,650

11,525

L2410766.UP.FTS.B,

25.7%,

1/11/27

.....

6,241

3,709

FW2410664.UP.FTS.B,

25.72%,

1/11/27

..

1,855

1,102

FW2410079.UP.FTS.B,

25.81%,

1/11/27

..

2,810

1,671

L2406866.UP.FTS.B,

25.98%,

1/11/27

....

1,660

1,641

L2413661.UP.FTS.B,

25.98%,

1/11/27

....

2,401

2,374

L2408715.UP.FTS.B,

26.2%,

1/11/27

.....

13,061

12,917

L2412410.UP.FTS.B,

26.21%,

1/11/27

....

6,888

6,815

FW2412377.UP.FTS.B,

26.3%,

1/11/27

...

5,715

5,649

FW2411046.UP.FTS.B,

26.47%,

1/11/27

..

8,099

8,001

L2409231.UP.FTS.B,

26.66%,

1/11/27

....

4,449

4,396

L2410155.UP.FTS.B,

26.8%,

1/11/27

.....

7,358

7,279

FW2409497.UP.FTS.B,

26.87%,

1/11/27

..

1,838

1,818

FW2410552.UP.FTS.B,

27%,

1/11/27

....

1,860

1,106

FW2410687.UP.FTS.B,

27.05%,

1/11/27

..

13,803

13,655

FW2408955.UP.FTS.B,

27.26%,

1/11/27

..

2,307

2,280

FW2407003.UP.FTS.B,

27.4%,

1/11/27

...

6,316

924

FW2413526.UP.FTS.B,

27.48%,

1/11/27

..

9,222

9,115

FW2410353.UP.FTS.B,

27.55%,

1/11/27

..

8,323

8,229

FW2410176.UP.FTS.B,

27.65%,

1/11/27

..

5,564

5,502

FW2412354.UP.FTS.B,

27.69%,

1/11/27

..

922

912

FW2412160.UP.FTS.B,

27.76%,

1/11/27

..

3,686

3,647

FW2406988.UP.FTS.B,

27.86%,

1/11/27

..

4,609

4,560

FW2408818.UP.FTS.B,

27.86%,

1/11/27

..

10,439

10,301

FW2410214.UP.FTS.B,

27.92%,

1/11/27

..

48,751

3,478

FW2410159.UP.FTS.B,

27.94%,

1/11/27

..

4,110

4,064

FW2402005.UP.FTS.B,

28.28%,

1/11/27

..

1,744

1,721

FW2413704.UP.FTS.B,

28.34%,

1/11/27

..

21,810

3,227

FW2406115.UP.FTS.B,

28.41%,

1/11/27

..

5,076

5,022

FW2410714.UP.FTS.B,

28.59%,

1/11/27

..

1,119

667

FW2405234.UP.FTS.B,

28.71%,

1/11/27

..

1,088

1,075

FW2413762.UP.FTS.B,

28.85%,

1/11/27

..

3,695

3,655

FW2410593.UP.FTS.B,

28.88%,

1/11/27

..

8,315

8,226

FW2412229.UP.FTS.B,

28.91%,

1/11/27

..

3,848

2,288

FW2412768.UP.FTS.B,

29.24%,

1/11/27

..

2,709

190

FW2411293.UP.FTS.B,

29.42%,

1/11/27

..

1,480

1,464

FW2407567.UP.FTS.B,

29.43%,

1/11/27

..

3,701

3,661

FW2412515.UP.FTS.B,

29.43%,

1/11/27

..

1,869

1,114

FW2407055.UP.FTS.B,

29.46%,

1/11/27

..

4,459

4,403

FW2408568.UP.FTS.B,

29.5%,

1/11/27

...

4,163

4,118

FW2411354.UP.FTS.B,

29.5%,

1/11/27

...

3,242

(37)

FW2403902.UP.FTS.B,

29.51%,

1/11/27

..

2,056

1,227

FW2410442.UP.FTS.B,

29.53%,

1/11/27

..

1,846

1,826

FW2412625.UP.FTS.B,

30.04%,

1/11/27

..

5,809

407

FW2407473.UP.FTS.B,

30.14%,

1/11/27

..

3,170

3,119

FW2412942.UP.FTS.B,

30.18%,

1/11/27

..

3,520

3,482

FW2400724.UP.FTS.B,

30.27%,

1/11/27

..

6,704

4,011

FW2413192.UP.FTS.B,

30.3%,

1/11/27

...

5,931

5,867

FW2413390.UP.FTS.B,

30.33%,

1/11/27

..

4,050

4,005

FW2409559.UP.FTS.B,

30.37%,

1/11/27

..

1,020

1,009

FW2407748.UP.FTS.B,

30.43%,

1/11/27

..

2,224

2,200

FW2395496.UP.FTS.B,

30.49%,

1/11/27

..

5,298

5,237

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2413147.UP.FTS.B,

30.55%,

1/11/27

..

$

3,767

$

3,725

FW2390839.UP.FTS.B,

30.58%,

1/11/27

..

773

758

FW2410881.UP.FTS.B,

30.59%,

1/11/27

..

918

547

FW2413484.UP.FTS.B,

30.59%,

1/11/27

..

936

559

FW2413018.UP.FTS.B,

30.69%,

1/11/27

..

1,134

1,113

FW2410149.UP.FTS.B,

30.7%,

1/11/27

...

1,476

105

FW2408341.UP.FTS.B,

30.72%,

1/11/27

..

961

946

FW2413509.UP.FTS.B,

30.72%,

1/11/27

..

1,157

1,143

FW2410308.UP.FTS.B,

30.74%,

1/11/27

..

1,018

1,007

FW2412502.UP.FTS.B,

30.76%,

1/11/27

..

13,911

13,761

FW2410401.UP.FTS.B,

30.79%,

1/11/27

..

1,206

1,193

FW2413758.UP.FTS.B,

30.79%,

1/11/27

..

1,634

(18)

FW2412911.UP.FTS.B,

30.8%,

1/11/27

...

969

68

FW2408824.UP.FTS.B,

30.81%,

1/11/27

..

1,577

1,560

FW2412224.UP.FTS.B,

30.81%,

1/11/27

..

2,595

(29)

FW2410697.UP.FTS.B,

30.88%,

1/11/27

..

1,749

1,729

FW2411299.UP.FTS.B,

30.92%,

1/11/27

..

1,598

954

FW2392367.UP.FTS.B,

30.94%,

1/11/27

..

2,131

1,271

FW2411070.UP.FTS.B,

30.94%,

1/11/27

..

4,457

311

FW2411172.UP.FTS.B,

30.96%,

1/11/27

..

5,381

5,324

FW2413017.UP.FTS.B,

30.97%,

1/11/27

..

2,343

2,317

FW2411010.UP.FTS.B,

31.02%,

1/11/27

..

4,176

4,132

FW2409966.UP.FTS.B,

31.03%,

1/11/27

..

3,062

3,029

FW2412503.UP.FTS.B,

31.04%,

1/11/27

..

1,744

257

FW2407947.UP.FTS.B,

31.05%,

1/11/27

..

3,341

3,305

FW2412394.UP.FTS.B,

31.05%,

1/11/27

..

1,949

1,928

FW2411701.UP.FTS.B,

31.06%,

1/11/27

..

2,149

2,119

FW2411738.UP.FTS.B,

31.08%,

1/11/27

..

1,670

1,653

FW2412486.UP.FTS.B,

31.11%,

1/11/27

..

4,311

2,574

FW2408288.UP.FTS.B,

31.13%,

1/11/27

..

2,070

2,040

FW2413942.UP.FTS.B,

31.15%,

1/11/27

..

1,114

1,102

FW2407798.UP.FTS.B,

31.16%,

1/11/27

..

5,942

(89)

FW2409027.UP.FTS.B,

31.16%,

1/11/27

..

1,485

1,469

FW2413313.UP.FTS.B,

31.16%,

1/11/27

..

3,876

270

FW2413418.UP.FTS.B,

31.16%,

1/11/27

..

7,171

500

FW2407226.UP.FTS.B,

31.18%,

1/11/27

..

3,052

3,019

FW2410271.UP.FTS.B,

31.19%,

1/11/27

..

1,764

1,745

FW2412133.UP.FTS.B,

31.2%,

1/11/27

...

1,179

1,162

FW2413443.UP.FTS.B,

31.32%,

1/11/27

..

4,034

2,410

FW2409156.UP.FTS.B,

31.35%,

1/11/27

..

3,801

1,103

FW2410499.UP.FTS.B,

31.67%,

1/11/27

..

1,669

985

FW2408747.UP.FTS.B,

31.68%,

1/11/27

..

11,325

11,199

FW2410407.UP.FTS.B,

31.96%,

1/11/27

..

2,892

843

FW2411062.UP.FTS.B,

32.46%,

1/11/27

..

6,514

6,444

FW2413772.UP.FTS.B,

32.47%,

1/11/27

..

1,928

1,892

FW2412816.UP.FTS.B,

33.43%,

1/11/27

..

1,486

430

FW2410751.UP.FTS.B,

34.47%,

1/11/27

..

4,577

4,528

L2419418.UP.FTS.B,

5.42%,

1/12/27

....

15,077

15,003

L2415328.UP.FTS.B,

5.83%,

1/12/27

....

42,316

42,110

L2418737.UP.FTS.B,

5.93%,

1/12/27

....

3,472

3,456

L2414458.UP.FTS.B,

5.96%,

1/12/27

....

26,044

25,922

L2393298.UP.FTS.B,

5.98%,

1/12/27

....

1,322

1,314

L2414801.UP.FTS.B,

6.11%,

1/12/27

.....

9,551

9,506

L2419934.UP.FTS.B,

6.15%,

1/12/27

....

8,692

8,653

L2418198.UP.FTS.B,

6.19%,

1/12/27

....

14,609

1,909

L2419361.UP.FTS.B,

6.41%,

1/12/27

....

1,304

1,298

L2402757.UP.FTS.B,

6.51%,

1/12/27

....

6,088

6,060

L2416784.UP.FTS.B,

6.53%,

1/12/27

....

1,740

1,732

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

174

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2418799.UP.FTS.B,

6.56%,

1/12/27

....

$

10,444

$

10,397

L2417049.UP.FTS.B,

6.6%,

1/12/27

.....

5,078

5,049

FW2414856.UP.FTS.B,

6.64%,

1/12/27

...

870

866

L2415375.UP.FTS.B,

6.85%,

1/12/27

....

5,223

5,199

L2416695.UP.FTS.B,

6.86%,

1/12/27

....

3,918

3,901

L2414595.UP.FTS.B,

7.05%,

1/12/27

....

6,535

6,490

L2419333.UP.FTS.B,

7.27%,

1/12/27

....

12,195

12,111

FW2415988.UP.FTS.B,

7.29%,

1/12/27

...

17,440

17,320

L2417990.UP.FTS.B,

7.34%,

1/12/27

....

43,606

43,306

L2419307.UP.FTS.B,

7.34%,

1/12/27

....

35,496

35,336

L2417199.UP.FTS.B,

7.43%,

1/12/27

....

39,595

39,317

FW2415894.UP.FTS.B,

7.44%,

1/12/27

...

13,097

13,040

FW2419541.UP.FTS.B,

7.5%,

1/12/27

....

13,089

12,999

L2414153.UP.FTS.B,

7.51%,

1/12/27

....

2,182

2,172

L2419299.UP.FTS.B,

7.55%,

1/12/27

....

10,471

10,399

L2417691.UP.FTS.B,

7.69%,

1/12/27

....

19,852

19,762

L2414031.UP.FTS.B,

7.78%,

1/12/27

....

13,974

13,878

L2417969.UP.FTS.B,

8.13%,

1/12/27

....

6,470

6,426

FW2416734.UP.FTS.B,

8.22%,

1/12/27

...

4,235

4,205

L2416137.UP.FTS.B,

8.26%,

1/12/27

....

9,097

9,035

L2417948.UP.FTS.B,

8.36%,

1/12/27

....

964

957

FW2415662.UP.FTS.B,

8.6%,

1/12/27

....

6,148

6,107

L2418166.UP.FTS.B,

8.62%,

1/12/27

....

4,272

4,242

L2414318.UP.FTS.B,

8.81%,

1/12/27

....

14,502

14,405

FW2416458.UP.FTS.B,

9.06%,

1/12/27

...

2,813

2,795

FW2419066.UP.FTS.B,

9.06%,

1/12/27

...

1,691

1,679

L2414012.UP.FTS.B,

9.06%,

1/12/27

....

8,770

8,732

L2416545.UP.FTS.B,

9.07%,

1/12/27

....

12,842

12,753

L2418009.UP.FTS.B,

9.08%,

1/12/27

....

10,524

10,454

L2414474.UP.FTS.B,

9.1%,

1/12/27

.....

5,284

5,250

L2414926.UP.FTS.B,

9.43%,

1/12/27

....

27,304

27,125

L2413887.UP.FTS.B,

9.49%,

1/12/27

....

5,267

5,218

FW2419389.UP.FTS.B,

9.58%,

1/12/27

...

2,005

1,990

L2418929.UP.FTS.B,

9.6%,

1/12/27

.....

13,178

13,091

FW2415990.UP.FTS.B,

9.9%,

1/12/27

....

26,381

26,134

L2414275.UP.FTS.B,

9.91%,

1/12/27

....

35,173

34,941

L2417012.UP.FTS.B,

10.17%,

1/12/27

....

1,760

1,749

L2415942.UP.FTS.B,

10.21%,

1/12/27

....

13,203

13,116

FW2417548.UP.FTS.B,

10.24%,

1/12/27

..

13,204

13,117

FW2418007.UP.FTS.B,

10.28%,

1/12/27

..

2,201

2,180

FW2418613.UP.FTS.B,

10.3%,

1/12/27

...

3,489

3,465

FW2417403.UP.FTS.B,

10.31%,

1/12/27

..

6,186

6,128

L2417034.UP.FTS.B,

10.34%,

1/12/27

....

23,573

23,420

L2415901.UP.FTS.B,

10.41%,

1/12/27

....

14,092

13,961

L2414981.UP.FTS.B,

10.47%,

1/12/27

....

11,187

11,084

L2417379.UP.FTS.B,

10.69%,

1/12/27

....

1,593

1,573

L2414718.UP.FTS.B,

10.85%,

1/12/27

....

3,528

3,495

L2418788.UP.FTS.B,

10.88%,

1/12/27

....

6,478

6,401

L2414601.UP.FTS.B,

11.39%,

1/12/27

....

3,533

3,501

L2416866.UP.FTS.B,

11.39%,

1/12/27

....

2,905

2,878

FW2415761.UP.FTS.B,

11.51%,

1/12/27

..

4,440

4,399

FW2419104.UP.FTS.B,

11.58%,

1/12/27

..

7,071

7,006

L2415315.UP.FTS.B,

11.71%,

1/12/27

....

13,211

13,089

L2414779.UP.FTS.B,

11.77%,

1/12/27

....

3,538

3,505

L2416933.UP.FTS.B,

11.86%,

1/12/27

....

6,172

448

L2414313.UP.FTS.B,

12.04%,

1/12/27

....

8,851

8,770

L2419136.UP.FTS.B,

12.23%,

1/12/27

....

6,289

856

L2415035.UP.FTS.B,

12.36%,

1/12/27

....

10,676

10,579

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2415490.UP.FTS.B,

12.71%,

1/12/27

....

$

14,094

$

13,968

FW2415223.UP.FTS.B,

12.84%,

1/12/27

..

3,754

189

L2418046.UP.FTS.B,

12.84%,

1/12/27

....

3,549

3,517

L2419353.UP.FTS.B,

12.95%,

1/12/27

....

28,933

28,672

L2416405.UP.FTS.B,

13.12%,

1/12/27

....

890

880

L2418973.UP.FTS.B,

13.17%,

1/12/27

....

18,650

18,482

L2419419.UP.FTS.B,

13.25%,

1/12/27

....

6,218

6,162

L2419424.UP.FTS.B,

13.54%,

1/12/27

....

8,593

8,487

L2414757.UP.FTS.B,

13.72%,

1/12/27

....

9,765

9,673

L2419716.UP.FTS.B,

13.82%,

1/12/27

....

8,453

8,378

L2418679.UP.FTS.B,

13.97%,

1/12/27

....

9,654

9,556

FW2417958.UP.FTS.B,

14.2%,

1/12/27

...

7,766

7,697

L2414553.UP.FTS.B,

14.38%,

1/12/27

....

18,200

18,037

L2416143.UP.FTS.B,

14.39%,

1/12/27

....

1,782

1,767

L2417256.UP.FTS.B,

14.46%,

1/12/27

....

28,354

28,103

L2418826.UP.FTS.B,

14.49%,

1/12/27

....

5,695

5,632

L2416103.UP.FTS.B,

14.61%,

1/12/27

....

8,918

8,839

L2419563.UP.FTS.B,

14.64%,

1/12/27

....

26,734

26,496

L2419336.UP.FTS.B,

14.72%,

1/12/27

....

19,626

19,453

L2416456.UP.FTS.B,

14.82%,

1/12/27

....

4,825

349

L2420324.UP.FTS.B,

14.82%,

1/12/27

....

6,723

925

FW2417528.UP.FTS.B,

14.86%,

1/12/27

..

4,462

4,423

L2407266.UP.FTS.B,

14.91%,

1/12/27

....

31,749

16,707

L2419366.UP.FTS.B,

14.95%,

1/12/27

....

5,576

759

FW2414824.UP.FTS.B,

15.13%,

1/12/27

..

31,259

30,984

L2418818.UP.FTS.B,

15.34%,

1/12/27

....

6,220

6,164

FW2420218.UP.FTS.B,

15.49%,

1/12/27

..

5,333

5,285

L2418960.UP.FTS.B,

15.54%,

1/12/27

....

17,883

17,652

FW2417751.UP.FTS.B,

15.65%,

1/12/27

..

3,578

3,546

L2416354.UP.FTS.B,

15.71%,

1/12/27

....

4,475

4,436

L2417088.UP.FTS.B,

15.78%,

1/12/27

....

6,799

6,711

FW2418121.UP.FTS.B,

15.9%,

1/12/27

...

35,856

35,385

L2414253.UP.FTS.B,

16.15%,

1/12/27

....

7,166

7,073

L2416434.UP.FTS.B,

16.25%,

1/12/27

....

9,676

9,551

L2414062.UP.FTS.B,

16.39%,

1/12/27

....

4,750

4,689

L2414473.UP.FTS.B,

16.4%,

1/12/27

....

896

885

L2415142.UP.FTS.B,

16.59%,

1/12/27

....

2,006

1,969

L2420474.UP.FTS.B,

16.75%,

1/12/27

....

13,457

13,341

L2420206.UP.FTS.B,

16.98%,

1/12/27

....

9,875

9,748

L2416327.UP.FTS.B,

17.17%,

1/12/27

....

22,454

22,261

L2417581.UP.FTS.B,

17.27%,

1/12/27

....

3,953

3,902

L2415513.UP.FTS.B,

17.29%,

1/12/27

....

3,498

3,440

FW2414008.UP.FTS.B,

17.55%,

1/12/27

..

2,901

2,876

FW2417755.UP.FTS.B,

18.05%,

1/12/27

..

15,200

8,436

FW2394068.UP.FTS.B,

18.18%,

1/12/27

..

7,205

7,092

L2419094.UP.FTS.B,

18.31%,

1/12/27

....

4,379

4,320

L2416524.UP.FTS.B,

18.36%,

1/12/27

....

4,498

4,459

L2415786.UP.FTS.B,

18.43%,

1/12/27

....

3,875

3,814

L2415190.UP.FTS.B,

18.58%,

1/12/27

....

4,508

4,437

L2415900.UP.FTS.B,

18.63%,

1/12/27

....

7,262

528

L2415554.UP.FTS.B,

19.01%,

1/12/27

....

702

690

FW2420321.UP.FTS.B,

19.58%,

1/12/27

..

2,061

573

L2415184.UP.FTS.B,

19.76%,

1/12/27

....

13,566

13,395

FW2415024.UP.FTS.B,

19.94%,

1/12/27

..

7,872

7,802

L2414022.UP.FTS.B,

20.3%,

1/12/27

....

36,231

35,908

FW2414368.UP.FTS.B,

20.45%,

1/12/27

..

2,302

2,279

L2418100.UP.FTS.B,

20.74%,

1/12/27

....

16,410

16,156

L2418147.UP.FTS.B,

21.2%,

1/12/27

....

2,826

203

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

175

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2416916.UP.FTS.B,

21.22%,

1/12/27

....

$

4,541

$

4,501

L2416598.UP.FTS.B,

21.42%,

1/12/27

....

6,766

6,706

L2404728.UP.FTS.B,

21.56%,

1/12/27

....

1,363

1,351

L2414877.UP.FTS.B,

21.7%,

1/12/27

....

5,022

4,974

L2414359.UP.FTS.B,

21.93%,

1/12/27

....

1,599

236

L2389418.UP.FTS.B,

22.12%,

1/12/27

....

5,639

5,589

L2415810.UP.FTS.B,

22.13%,

1/12/27

....

4,549

4,509

L2415799.UP.FTS.B,

22.22%,

1/12/27

....

4,490

4,447

FW2408502.UP.FTS.B,

22.28%,

1/12/27

..

5,894

3,497

L2418697.UP.FTS.B,

22.86%,

1/12/27

....

4,101

4,038

L2416737.UP.FTS.B,

23.4%,

1/12/27

....

2,467

2,443

FW2416362.UP.FTS.B,

23.42%,

1/12/27

..

4,563

4,523

L2409743.UP.FTS.B,

23.49%,

1/12/27

....

10,012

5,321

L2418647.UP.FTS.B,

23.67%,

1/12/27

....

10,218

1,502

L2416109.UP.FTS.B,

23.75%,

1/12/27

....

11,331

6,529

FW2418430.UP.FTS.B,

23.78%,

1/12/27

..

2,635

2,595

FW2414282.UP.FTS.B,

23.79%,

1/12/27

..

1,827

1,811

FW2415097.UP.FTS.B,

23.87%,

1/12/27

..

2,598

2,569

L2410860.UP.FTS.B,

23.88%,

1/12/27

....

5,742

5,680

L2417411.UP.FTS.B,

24%,

1/12/27

......

9,021

8,939

L2415306.UP.FTS.B,

24.21%,

1/12/27

....

9,874

9,789

L2414849.UP.FTS.B,

24.57%,

1/12/27

....

3,099

3,071

L2417607.UP.FTS.B,

24.68%,

1/12/27

....

5,493

5,427

L2416551.UP.FTS.B,

24.77%,

1/12/27

....

6,422

462

FW2415034.UP.FTS.B,

24.95%,

1/12/27

..

5,031

4,988

L2416370.UP.FTS.B,

25.03%,

1/12/27

....

13,897

8,271

L2415025.UP.FTS.B,

25.05%,

1/12/27

....

3,206

926

L2416425.UP.FTS.B,

25.07%,

1/12/27

....

1,164

1,144

L2416166.UP.FTS.B,

25.14%,

1/12/27

....

3,470

247

L2415797.UP.FTS.B,

25.15%,

1/12/27

....

1,668

993

FW2415852.UP.FTS.B,

25.19%,

1/12/27

..

8,344

4,967

L2415512.UP.FTS.B,

25.19%,

1/12/27

....

4,081

4,007

L2420285.UP.FTS.B,

25.25%,

1/12/27

....

2,221

2,188

L2420169.UP.FTS.B,

25.29%,

1/12/27

....

3,212

229

L2418700.UP.FTS.B,

25.3%,

1/12/27

....

1,925

1,908

FW2414825.UP.FTS.B,

25.31%,

1/12/27

..

4,583

4,544

L2414994.UP.FTS.B,

25.32%,

1/12/27

....

2,723

2,698

L2411740.UP.FTS.B,

25.36%,

1/12/27

....

1,467

1,454

L2419040.UP.FTS.B,

25.37%,

1/12/27

....

1,193

1,178

FW2416291.UP.FTS.B,

25.38%,

1/12/27

..

12,874

12,689

L2418717.UP.FTS.B,

25.38%,

1/12/27

....

3,118

3,091

FW2414842.UP.FTS.B,

25.41%,

1/12/27

..

927

552

L2414777.UP.FTS.B,

25.43%,

1/12/27

....

1,274

1,263

L2416664.UP.FTS.B,

25.43%,

1/12/27

....

1,376

1,355

L2417967.UP.FTS.B,

25.45%,

1/12/27

....

5,502

5,454

L2417114.UP.FTS.B,

25.49%,

1/12/27

....

1,742

1,727

L2418684.UP.FTS.B,

25.49%,

1/12/27

....

2,478

2,454

L2416550.UP.FTS.B,

25.5%,

1/12/27

....

2,823

202

FW2419476.UP.FTS.B,

25.59%,

1/12/27

..

3,225

928

FW2419758.UP.FTS.B,

25.64%,

1/12/27

..

4,876

350

FW2415078.UP.FTS.B,

25.67%,

1/12/27

..

3,644

3,611

FW2418617.UP.FTS.B,

25.69%,

1/12/27

..

11,836

11,728

L2418539.UP.FTS.B,

25.72%,

1/12/27

....

4,724

694

FW2416204.UP.FTS.B,

25.74%,

1/12/27

..

11,083

10,983

L2415253.UP.FTS.B,

25.75%,

1/12/27

....

6,976

57

FW2418174.UP.FTS.B,

25.89%,

1/12/27

..

9,128

9,046

L2413654.UP.FTS.B,

25.91%,

1/12/27

....

5,140

5,062

L2414249.UP.FTS.B,

26.35%,

1/12/27

....

3,675

3,644

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2414970.UP.FTS.B,

26.42%,

1/12/27

..

$

9,197

$

9,111

FW2419574.UP.FTS.B,

26.43%,

1/12/27

..

17,735

17,571

FW2415609.UP.FTS.B,

26.58%,

1/12/27

..

1,747

1,732

FW2415999.UP.FTS.B,

26.93%,

1/12/27

..

8,464

8,392

FW2417312.UP.FTS.B,

27.53%,

1/12/27

..

2,764

2,740

L2414422.UP.FTS.B,

27.95%,

1/12/27

....

2,674

2,651

FW2416040.UP.FTS.B,

27.97%,

1/12/27

..

6,818

4,073

FW2414923.UP.FTS.B,

28.06%,

1/12/27

..

5,986

427

FW2411493.UP.FTS.B,

28.18%,

1/12/27

..

13,294

13,158

FW2418131.UP.FTS.B,

28.24%,

1/12/27

..

13,838

13,722

FW2417708.UP.FTS.B,

28.27%,

1/12/27

..

9,227

9,149

FW2414646.UP.FTS.B,

28.47%,

1/12/27

..

649

638

FW2418727.UP.FTS.B,

28.6%,

1/12/27

...

5,699

834

L2417119.UP.FTS.B,

28.65%,

1/12/27

....

8,692

5,195

FW2415920.UP.FTS.B,

28.81%,

1/12/27

..

11,087

10,995

FW2418008.UP.FTS.B,

28.88%,

1/12/27

..

1,571

1,557

FW2417123.UP.FTS.B,

29.19%,

1/12/27

..

15,192

9,075

FW2415652.UP.FTS.B,

29.37%,

1/12/27

..

12,947

12,839

FW2419252.UP.FTS.B,

29.51%,

1/12/27

..

2,220

2,202

FW2416858.UP.FTS.B,

29.58%,

1/12/27

..

5,008

1,471

FW2418306.UP.FTS.B,

29.61%,

1/12/27

..

6,477

6,423

FW2416828.UP.FTS.B,

29.67%,

1/12/27

..

488

480

FW2412114.UP.FTS.B,

30.39%,

1/12/27

..

4,305

4,269

FW2415348.UP.FTS.B,

30.45%,

1/12/27

..

19,815

19,624

FW2417338.UP.FTS.B,

30.54%,

1/12/27

..

1,403

(13)

FW2419466.UP.FTS.B,

30.59%,

1/12/27

..

5,006

4,965

FW2414026.UP.FTS.B,

30.61%,

1/12/27

..

1,031

1,022

FW2415122.UP.FTS.B,

30.76%,

1/12/27

..

2,133

2,116

FW2413399.UP.FTS.B,

30.8%,

1/12/27

...

1,752

124

FW2417562.UP.FTS.B,

30.84%,

1/12/27

..

928

920

FW2418392.UP.FTS.B,

30.87%,

1/12/27

..

2,025

2,007

FW2418950.UP.FTS.B,

30.94%,

1/12/27

..

1,956

1,928

FW2413630.UP.FTS.B,

30.97%,

1/12/27

..

1,318

1,306

FW2416140.UP.FTS.B,

30.99%,

1/12/27

..

2,041

2,024

FW2415090.UP.FTS.B,

31%,

1/12/27

....

17,630

17,485

FW2417415.UP.FTS.B,

31.03%,

1/12/27

..

1,670

1,657

FW2415567.UP.FTS.B,

31.06%,

1/12/27

..

1,239

181

FW2420487.UP.FTS.B,

31.06%,

1/12/27

..

1,730

1,710

FW2415692.UP.FTS.B,

31.1%,

1/12/27

...

8,284

8,210

FW2415518.UP.FTS.B,

31.11%,

1/12/27

..

5,476

5,431

FW2417950.UP.FTS.B,

31.11%,

1/12/27

..

895

886

FW2414984.UP.FTS.B,

31.12%,

1/12/27

..

3,527

3,498

FW2418991.UP.FTS.B,

31.12%,

1/12/27

..

4,675

4,632

FW2410767.UP.FTS.B,

31.15%,

1/12/27

..

1,163

81

FW2415964.UP.FTS.B,

31.16%,

1/12/27

..

1,193

1,182

FW2417489.UP.FTS.B,

31.18%,

1/12/27

..

1,406

842

FW2416377.UP.FTS.B,

31.22%,

1/12/27

..

4,548

4,511

FW2419575.UP.FTS.B,

31.24%,

1/12/27

..

1,943

137

FW2411958.UP.FTS.B,

31.91%,

1/12/27

..

10,181

708

FW2402573.UP.FTS.B,

32.37%,

1/12/27

..

10,802

10,715

FW2416032.UP.FTS.B,

32.75%,

1/12/27

..

18,534

18,384

FW2414360.UP.FTS.B,

33.08%,

1/12/27

..

2,143

2,125

FW2419527.UP.FTS.B,

33.12%,

1/12/27

..

1,322

1,311

FW2414624.UP.FTS.B,

33.41%,

1/12/27

..

2,667

2,643

L1710099.UP.FTS.B,

16.39%,

2/14/27

....

11,332

11,186

FW1711645.UP.FTS.B,

20.26%,

2/14/27

..

23,822

23,419

L1710153.UP.FTS.B,

22.07%,

2/14/27

....

6,391

38

L1711058.UP.FTS.B,

22.48%,

2/14/27

....

7,696

7,618

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

176

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW1710506.UP.FTS.B,

24.97%,

2/14/27

..

$

5,109

$

5,053

L1709217.UP.FTS.B,

25.78%,

2/14/27

....

22,439

13,339

L1710004.UP.FTS.B,

26.05%,

2/14/27

....

9,183

9,115

FW1711816.UP.FTS.B,

27.5%,

2/14/27

...

1,357

1,343

FW1712574.UP.FTS.B,

28.34%,

2/14/27

..

4,692

4,642

FW1712038.UP.FTS.B,

31.06%,

2/14/27

..

2,986

427

FW1710082.UP.FTS.B,

31.29%,

2/14/27

..

938

271

FW1711329.UP.FTS.B,

32.12%,

2/14/27

..

3,326

1,988

L2632095.UP.FTS.B,

5.13%,

2/15/27

....

8,808

8,767

L2632551.UP.FTS.B,

5.37%,

2/15/27

....

10,577

10,528

L2632779.UP.FTS.B,

5.63%,

2/15/27

....

6,175

6,146

L2633842.UP.FTS.B,

6.31%,

2/15/27

....

8,757

8,503

L2633588.UP.FTS.B,

6.56%,

2/15/27

....

29,189

29,054

L2631314.UP.FTS.B,

6.7%,

2/15/27

.....

18,583

18,496

L2633374.UP.FTS.B,

7.21%,

2/15/27

....

16,838

16,760

L2633603.UP.FTS.B,

8.38%,

2/15/27

....

15,122

15,019

FW2637564.UP.FTS.B,

8.54%,

2/15/27

...

12,651

11,894

FW2631935.UP.FTS.B,

8.55%,

2/15/27

...

33,313

33,088

L2630774.UP.FTS.B,

8.69%,

2/15/27

....

3,560

3,544

FW2634707.UP.FTS.B,

9.24%,

2/15/27

...

7,492

7,439

L2635638.UP.FTS.B,

9.41%,

2/15/27

....

8,705

8,643

L2631278.UP.FTS.B,

9.42%,

2/15/27

....

4,459

4,428

FW2633029.UP.FTS.B,

9.57%,

2/15/27

...

1,338

1,329

FW2636440.UP.FTS.B,

9.62%,

2/15/27

...

5,922

5,568

FW2633295.UP.FTS.B,

9.71%,

2/15/27

...

16,511

16,398

FW2635362.UP.FTS.B,

9.75%,

2/15/27

...

10,711

10,638

L2633022.UP.FTS.B,

9.86%,

2/15/27

....

13,377

13,286

FW2635247.UP.FTS.B,

10.37%,

2/15/27

..

7,661

7,588

L2632143.UP.FTS.B,

10.83%,

2/15/27

....

5,273

5,232

FW2637614.UP.FTS.B,

11.51%,

2/15/27

..

11,986

11,870

L2589493.UP.FTS.B,

11.56%,

2/15/27

....

14,352

14,217

L2637309.UP.FTS.B,

11.72%,

2/15/27

....

44,869

44,448

L2632232.UP.FTS.B,

11.83%,

2/15/27

....

8,259

8,171

L2633836.UP.FTS.B,

12%,

2/15/27

......

9,521

9,432

FW2636201.UP.FTS.B,

12.12%,

2/15/27

..

6,289

6,230

L2630147.UP.FTS.B,

12.15%,

2/15/27

....

35,936

35,599

L2635861.UP.FTS.B,

12.41%,

2/15/27

....

7,642

7,570

L2636245.UP.FTS.B,

12.68%,

2/15/27

....

35,986

35,649

L2631815.UP.FTS.B,

13.01%,

2/15/27

....

5,489

5,158

L2628202.UP.FTS.B,

13.1%,

2/15/27

....

5,847

5,792

L2637042.UP.FTS.B,

13.14%,

2/15/27

....

7,206

7,139

L2631332.UP.FTS.B,

13.22%,

2/15/27

....

4,505

4,462

FW2633237.UP.FTS.B,

13.24%,

2/15/27

..

3,604

3,570

L2631964.UP.FTS.B,

14%,

2/15/27

......

6,761

6,698

L2632724.UP.FTS.B,

14.48%,

2/15/27

....

4,791

4,746

FW2634262.UP.FTS.B,

14.51%,

2/15/27

..

14,462

14,327

FW2635512.UP.FTS.B,

14.58%,

2/15/27

..

16,280

16,129

L2637603.UP.FTS.B,

14.83%,

2/15/27

....

5,764

5,710

FW2631558.UP.FTS.B,

15.18%,

2/15/27

..

13,581

13,454

L2635221.UP.FTS.B,

15.45%,

2/15/27

....

6,704

6,642

FW2633986.UP.FTS.B,

15.46%,

2/15/27

..

22,745

21,381

FW2631951.UP.FTS.B,

15.91%,

2/15/27

..

7,929

7,825

FW2634727.UP.FTS.B,

16.18%,

2/15/27

..

5,990

5,911

L2636525.UP.FTS.B,

16.23%,

2/15/27

....

12,856

12,078

L2635424.UP.FTS.B,

16.37%,

2/15/27

....

36,322

35,841

FW2633906.UP.FTS.B,

16.65%,

2/15/27

..

2,076

295

L2610013.UP.FTS.B,

16.95%,

2/15/27

....

3,728

3,504

L2630011.UP.FTS.B,

16.96%,

2/15/27

....

4,547

4,505

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2631718.UP.FTS.B,

16.99%,

2/15/27

....

$

4,547

$

4,487

L2636076.UP.FTS.B,

17.15%,

2/15/27

....

6,823

6,733

L2635318.UP.FTS.B,

17.22%,

2/15/27

....

7,853

7,778

FW2635945.UP.FTS.B,

17.32%,

2/15/27

..

5,005

4,925

L2633537.UP.FTS.B,

17.39%,

2/15/27

....

9,102

8,982

FW2635975.UP.FTS.B,

18.14%,

2/15/27

..

14,206

13,352

FW2635531.UP.FTS.B,

18.53%,

2/15/27

..

10,770

10,627

FW2632933.UP.FTS.B,

18.59%,

2/15/27

..

9,128

9,008

FW2632544.UP.FTS.B,

18.69%,

2/15/27

..

22,826

22,460

FW2634470.UP.FTS.B,

18.69%,

2/15/27

..

4,569

4,495

L2610892.UP.FTS.B,

18.7%,

2/15/27

....

13,579

13,359

L2634353.UP.FTS.B,

19.06%,

2/15/27

....

9,049

8,901

FW2634297.UP.FTS.B,

19.29%,

2/15/27

..

12,069

11,909

FW2629363.UP.FTS.B,

19.37%,

2/15/27

..

5,437

5,347

L2635892.UP.FTS.B,

19.39%,

2/15/27

....

780

767

L2633453.UP.FTS.B,

19.72%,

2/15/27

....

13,825

13,646

L2632256.UP.FTS.B,

19.82%,

2/15/27

....

915

903

L2632250.UP.FTS.B,

19.92%,

2/15/27

....

5,768

171

L2634883.UP.FTS.B,

19.98%,

2/15/27

....

7,360

7,243

L2637386.UP.FTS.B,

20.16%,

2/15/27

....

6,871

6,760

L2635013.UP.FTS.B,

20.25%,

2/15/27

....

5,499

5,410

L2633648.UP.FTS.B,

20.29%,

2/15/27

....

9,368

9,241

L2636615.UP.FTS.B,

20.46%,

2/15/27

....

2,003

554

FW2632574.UP.FTS.B,

20.97%,

2/15/27

..

13,960

13,710

L2632212.UP.FTS.B,

21.09%,

2/15/27

....

3,599

3,540

FW2637242.UP.FTS.B,

21.26%,

2/15/27

..

8,265

8,156

L2630116.UP.FTS.B,

21.26%,

2/15/27

....

5,510

5,422

L2637476.UP.FTS.B,

21.48%,

2/15/27

....

10,004

9,847

L2626721.UP.FTS.B,

21.64%,

2/15/27

....

4,438

4,362

L2633936.UP.FTS.B,

21.75%,

2/15/27

....

3,069

2,904

FW2631142.UP.FTS.B,

21.84%,

2/15/27

..

2,920

2,890

L2636132.UP.FTS.B,

21.91%,

2/15/27

....

9,196

9,107

FW2632067.UP.FTS.B,

22.05%,

2/15/27

..

3,235

233

FW2634641.UP.FTS.B,

22.06%,

2/15/27

..

12,879

12,753

L2636088.UP.FTS.B,

22.06%,

2/15/27

....

345

340

L2636740.UP.FTS.B,

22.15%,

2/15/27

....

920

911

L2633500.UP.FTS.B,

22.28%,

2/15/27

....

4,704

4,451

FW2635428.UP.FTS.B,

22.3%,

2/15/27

...

15,095

14,947

L2633766.UP.FTS.B,

22.63%,

2/15/27

....

5,315

137

L2631928.UP.FTS.B,

22.74%,

2/15/27

....

6,904

6,836

L2636620.UP.FTS.B,

22.94%,

2/15/27

....

7,445

7,370

FW2632621.UP.FTS.B,

22.95%,

2/15/27

..

4,977

4,928

FW2632848.UP.FTS.B,

22.95%,

2/15/27

..

5,057

5,007

L2635474.UP.FTS.B,

23.01%,

2/15/27

....

7,374

7,302

FW2636073.UP.FTS.B,

23.1%,

2/15/27

...

4,625

4,577

L2632041.UP.FTS.B,

23.26%,

2/15/27

....

11,067

10,890

L2631781.UP.FTS.B,

23.47%,

2/15/27

....

2,687

2,636

FW2633249.UP.FTS.B,

23.49%,

2/15/27

..

5,075

5,025

FW2634082.UP.FTS.B,

24.01%,

2/15/27

..

5,542

5,488

L2635262.UP.FTS.B,

24.04%,

2/15/27

....

8,314

8,232

L2633254.UP.FTS.B,

24.29%,

2/15/27

....

20,148

19,825

FW2632068.UP.FTS.B,

24.31%,

2/15/27

..

448

441

L2632195.UP.FTS.B,

24.38%,

2/15/27

....

1,753

1,725

FW2628626.UP.FTS.B,

24.39%,

2/15/27

..

9,653

381

FW2632915.UP.FTS.B,

24.46%,

2/15/27

..

14,053

13,915

L2629665.UP.FTS.B,

24.47%,

2/15/27

....

6,526

6,460

FW2634252.UP.FTS.B,

24.49%,

2/15/27

..

5,917

5,859

L2633167.UP.FTS.B,

24.54%,

2/15/27

....

5,111

5,030

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

177

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2636078.UP.FTS.B,

24.6%,

2/15/27

....

$

13,967

$

13,830

FW2632893.UP.FTS.B,

24.67%,

2/15/27

..

20,163

19,965

FW2636783.UP.FTS.B,

24.67%,

2/15/27

..

10,082

9,983

FW2632707.UP.FTS.B,

24.74%,

2/15/27

..

5,088

5,038

L2631848.UP.FTS.B,

24.9%,

2/15/27

....

5,574

5,517

L2627623.UP.FTS.B,

24.92%,

2/15/27

....

4,442

4,398

L2634268.UP.FTS.B,

25.05%,

2/15/27

....

2,223

2,201

FW2635941.UP.FTS.B,

25.09%,

2/15/27

..

5,091

5,041

L2637318.UP.FTS.B,

25.13%,

2/15/27

....

3,055

3,006

L2631220.UP.FTS.B,

25.21%,

2/15/27

....

2,778

2,751

L2635044.UP.FTS.B,

25.22%,

2/15/27

....

1,123

1,063

L2634635.UP.FTS.B,

25.23%,

2/15/27

....

7,309

7,232

L2633582.UP.FTS.B,

25.26%,

2/15/27

....

1,852

1,834

L2632822.UP.FTS.B,

25.28%,

2/15/27

....

1,407

407

L2634539.UP.FTS.B,

25.3%,

2/15/27

....

1,760

1,742

L2630368.UP.FTS.B,

25.31%,

2/15/27

....

2,686

2,659

L2632154.UP.FTS.B,

25.31%,

2/15/27

....

21,764

21,550

L2633915.UP.FTS.B,

25.37%,

2/15/27

....

1,575

1,549

L2633587.UP.FTS.B,

25.38%,

2/15/27

....

1,575

1,559

L2637368.UP.FTS.B,

25.39%,

2/15/27

....

1,853

1,823

L2635003.UP.FTS.B,

25.4%,

2/15/27

....

10,018

1,494

L2636370.UP.FTS.B,

25.4%,

2/15/27

....

2,779

2,751

L2631133.UP.FTS.B,

25.41%,

2/15/27

....

1,389

1,367

L2631893.UP.FTS.B,

25.41%,

2/15/27

....

3,336

3,303

L2636222.UP.FTS.B,

25.41%,

2/15/27

....

18,526

18,344

L2605748.UP.FTS.B,

25.45%,

2/15/27

....

1,667

1,651

L2631820.UP.FTS.B,

25.45%,

2/15/27

....

8,521

8,062

L2634591.UP.FTS.B,

25.45%,

2/15/27

....

1,019

1,009

L2632552.UP.FTS.B,

25.56%,

2/15/27

....

3,058

3,028

L2633900.UP.FTS.B,

25.57%,

2/15/27

....

4,049

44

FW2631141.UP.FTS.B,

25.72%,

2/15/27

..

12,142

12,022

FW2632953.UP.FTS.B,

25.74%,

2/15/27

..

5,207

1,521

L2634677.UP.FTS.B,

25.78%,

2/15/27

....

3,708

3,672

FW2635210.UP.FTS.B,

25.81%,

2/15/27

..

5,562

5,508

L2636195.UP.FTS.B,

25.92%,

2/15/27

....

13,909

13,772

FW2634765.UP.FTS.B,

26.22%,

2/15/27

..

16,700

16,536

L2635199.UP.FTS.B,

26.23%,

2/15/27

....

5,845

5,788

FW2635628.UP.FTS.B,

26.36%,

2/15/27

..

2,726

47

FW2634760.UP.FTS.B,

26.38%,

2/15/27

..

5,476

5,422

L2634070.UP.FTS.B,

26.45%,

2/15/27

....

23,112

22,884

FW2632882.UP.FTS.B,

26.51%,

2/15/27

..

2,123

16

L2635219.UP.FTS.B,

26.59%,

2/15/27

....

3,900

3,861

FW2637086.UP.FTS.B,

26.68%,

2/15/27

..

3,064

3,034

FW2632673.UP.FTS.B,

27.01%,

2/15/27

..

2,025

2,003

FW2637233.UP.FTS.B,

27.15%,

2/15/27

..

16,731

16,566

FW2631843.UP.FTS.B,

27.26%,

2/15/27

..

4,555

4,510

FW2637044.UP.FTS.B,

27.28%,

2/15/27

..

1,802

1,741

FW2633233.UP.FTS.B,

27.31%,

2/15/27

..

7,996

7,917

L2631102.UP.FTS.B,

27.44%,

2/15/27

....

3,110

2,987

FW2634310.UP.FTS.B,

27.59%,

2/15/27

..

6,884

6,816

FW2632247.UP.FTS.B,

27.6%,

2/15/27

...

10,256

10,149

FW2632183.UP.FTS.B,

27.72%,

2/15/27

..

6,513

6,449

FW2636178.UP.FTS.B,

28%,

2/15/27

....

5,643

5,339

FW2632116.UP.FTS.B,

28.1%,

2/15/27

...

9,311

9,219

FW2634627.UP.FTS.B,

28.11%,

2/15/27

..

5,587

5,531

FW2635226.UP.FTS.B,

28.22%,

2/15/27

..

2,107

617

FW2634686.UP.FTS.B,

28.47%,

2/15/27

..

5,615

1,631

FW2587827.UP.FTS.B,

28.49%,

2/15/27

..

11,158

11,046

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2635435.UP.FTS.B,

28.75%,

2/15/27

..

$

1,821

$

1,801

FW2634423.UP.FTS.B,

28.99%,

2/15/27

..

18,653

18,468

FW2636790.UP.FTS.B,

29.27%,

2/15/27

..

21,600

1,514

FW2632227.UP.FTS.B,

29.31%,

2/15/27

..

18,664

18,479

FW2634087.UP.FTS.B,

29.37%,

2/15/27

..

5,372

5,310

FW2636066.UP.FTS.B,

29.41%,

2/15/27

..

3,029

2,993

FW2633754.UP.FTS.B,

29.46%,

2/15/27

..

27,821

27,533

FW2600453.UP.FTS.B,

29.54%,

2/15/27

..

3,933

279

FW2635622.UP.FTS.B,

29.54%,

2/15/27

..

4,454

4,388

FW2632506.UP.FTS.B,

29.8%,

2/15/27

...

5,318

5,265

FW2636841.UP.FTS.B,

30.04%,

2/15/27

..

25,416

25,164

FW2633450.UP.FTS.B,

30.19%,

2/15/27

..

1,604

1,518

FW2632167.UP.FTS.B,

30.21%,

2/15/27

..

935

926

FW2631008.UP.FTS.B,

30.31%,

2/15/27

..

902

891

FW2636372.UP.FTS.B,

30.35%,

2/15/27

..

5,610

5,554

FW2632070.UP.FTS.B,

30.58%,

2/15/27

..

2,989

2,959

FW2631994.UP.FTS.B,

30.71%,

2/15/27

..

4,889

4,836

FW2631249.UP.FTS.B,

30.81%,

2/15/27

..

1,177

173

FW2631494.UP.FTS.B,

30.85%,

2/15/27

..

4,211

4,169

FW2635126.UP.FTS.B,

30.85%,

2/15/27

..

1,684

1,668

FW2629864.UP.FTS.B,

30.9%,

2/15/27

...

2,152

2,131

FW2633675.UP.FTS.B,

30.91%,

2/15/27

..

1,039

983

FW2634617.UP.FTS.B,

30.93%,

2/15/27

..

3,483

3,448

FW2631125.UP.FTS.B,

30.96%,

2/15/27

..

885

874

FW2631968.UP.FTS.B,

30.98%,

2/15/27

..

6,574

6,491

FW2636445.UP.FTS.B,

31%,

2/15/27

....

1,685

1,668

FW2631988.UP.FTS.B,

31.03%,

2/15/27

..

2,332

162

FW2635952.UP.FTS.B,

31.06%,

2/15/27

..

1,498

1,483

FW2633314.UP.FTS.B,

31.08%,

2/15/27

..

1,009

998

FW2635281.UP.FTS.B,

31.1%,

2/15/27

...

5,203

4,924

FW2637419.UP.FTS.B,

31.1%,

2/15/27

...

3,129

3,095

FW2633604.UP.FTS.B,

31.13%,

2/15/27

..

2,434

2,410

FW2635800.UP.FTS.B,

31.13%,

2/15/27

..

4,820

4,561

FW2637089.UP.FTS.B,

31.23%,

2/15/27

..

7,865

7,787

FW2633883.UP.FTS.B,

31.33%,

2/15/27

..

3,171

468

FW2634457.UP.FTS.B,

31.36%,

2/15/27

..

3,642

12

FW2632904.UP.FTS.B,

31.38%,

2/15/27

..

3,468

3,433

FW2632054.UP.FTS.B,

31.53%,

2/15/27

..

4,198

292

FW2636781.UP.FTS.B,

31.59%,

2/15/27

..

2,735

2,689

FW2634910.UP.FTS.B,

32.02%,

2/15/27

..

3,312

3,134

FW2635681.UP.FTS.B,

32.24%,

2/15/27

..

3,769

552

L2644100.UP.FTS.B,

5.16%,

2/16/27

....

5,573

5,388

L2640422.UP.FTS.B,

7.19%,

2/16/27

....

5,301

5,268

FW2639217.UP.FTS.B,

7.48%,

2/16/27

...

11,973

11,898

L2638196.UP.FTS.B,

7.54%,

2/16/27

....

16,490

16,422

L2642691.UP.FTS.B,

8.69%,

2/16/27

....

29,293

29,111

L2644170.UP.FTS.B,

8.74%,

2/16/27

....

24,477

24,326

L2644467.UP.FTS.B,

8.99%,

2/16/27

....

1,949

1,933

L2641249.UP.FTS.B,

9.09%,

2/16/27

....

13,097

13,017

L2643996.UP.FTS.B,

9.54%,

2/16/27

....

13,381

13,300

FW2640044.UP.FTS.B,

9.77%,

2/16/27

...

5,214

5,182

FW2639996.UP.FTS.B,

9.85%,

2/16/27

...

6,923

6,860

L2638227.UP.FTS.B,

10.2%,

2/16/27

....

13,612

12,803

L2644692.UP.FTS.B,

10.37%,

2/16/27

....

3,576

3,555

L2628258.UP.FTS.B,

10.4%,

2/16/27

....

14,566

14,441

L2639939.UP.FTS.B,

10.73%,

2/16/27

....

12,955

12,844

L2642767.UP.FTS.B,

10.84%,

2/16/27

....

11,549

11,451

L2642462.UP.FTS.B,

10.86%,

2/16/27

....

6,267

6,214

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

178

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2639271.UP.FTS.B,

10.98%,

2/16/27

..

$

44,926

$

44,548

FW2636951.UP.FTS.B,

11.21%,

2/16/27

..

14,608

14,484

L2643884.UP.FTS.B,

11.41%,

2/16/27

....

6,725

6,668

L2640107.UP.FTS.B,

11.57%,

2/16/27

....

9,598

9,517

L2642580.UP.FTS.B,

11.66%,

2/16/27

....

3,140

3,114

FW2644262.UP.FTS.B,

11.83%,

2/16/27

..

8,976

8,901

L2642829.UP.FTS.B,

11.96%,

2/16/27

....

19,216

19,055

L2643133.UP.FTS.B,

12.13%,

2/16/27

....

9,829

9,746

L2640589.UP.FTS.B,

12.31%,

2/16/27

....

44,938

44,562

L2637999.UP.FTS.B,

12.45%,

2/16/27

....

10,062

9,978

L2644043.UP.FTS.B,

12.51%,

2/16/27

....

4,762

4,582

FW2642297.UP.FTS.B,

12.63%,

2/16/27

..

8,636

8,564

FW2641042.UP.FTS.B,

12.73%,

2/16/27

..

1,080

1,071

FW2640270.UP.FTS.B,

13.17%,

2/16/27

..

14,345

792

FW2644450.UP.FTS.B,

13.29%,

2/16/27

..

1,340

1,328

L2641626.UP.FTS.B,

13.94%,

2/16/27

....

903

895

L2639543.UP.FTS.B,

14.06%,

2/16/27

....

9,029

8,955

FW2641444.UP.FTS.B,

14.17%,

2/16/27

..

5,870

5,822

L2643434.UP.FTS.B,

14.29%,

2/16/27

....

9,024

8,950

FW2639288.UP.FTS.B,

14.3%,

2/16/27

...

14,575

14,454

L2640031.UP.FTS.B,

14.45%,

2/16/27

....

9,038

8,964

FW2637881.UP.FTS.B,

14.54%,

2/16/27

..

5,419

5,375

L2637807.UP.FTS.B,

14.59%,

2/16/27

....

13,494

13,383

L2643572.UP.FTS.B,

14.72%,

2/16/27

....

1,809

1,794

L2641778.UP.FTS.B,

14.87%,

2/16/27

....

40,908

38,481

FW2640160.UP.FTS.B,

14.88%,

2/16/27

..

20,809

20,639

L2641628.UP.FTS.B,

14.9%,

2/16/27

....

10,586

10,500

FW2644643.UP.FTS.B,

15%,

2/16/27

....

3,982

3,950

L2644502.UP.FTS.B,

15.74%,

2/16/27

....

19,496

19,338

L2643245.UP.FTS.B,

15.83%,

2/16/27

....

19,679

19,520

L2642945.UP.FTS.B,

15.91%,

2/16/27

....

1,361

1,350

FW2643582.UP.FTS.B,

16.21%,

2/16/27

..

18,254

18,039

FW2637690.UP.FTS.B,

16.3%,

2/16/27

...

5,897

5,849

FW2643607.UP.FTS.B,

16.31%,

2/16/27

..

45,395

44,857

FW2638305.UP.FTS.B,

16.48%,

2/16/27

..

9,751

9,635

L2641861.UP.FTS.B,

16.53%,

2/16/27

....

18,843

18,595

L2639711.UP.FTS.B,

16.7%,

2/16/27

.....

1,454

1,437

L2639647.UP.FTS.B,

17.04%,

2/16/27

....

9,095

8,988

L2640734.UP.FTS.B,

17.15%,

2/16/27

....

45,469

44,933

FW2641664.UP.FTS.B,

17.29%,

2/16/27

..

5,326

5,261

L2643228.UP.FTS.B,

17.64%,

2/16/27

....

4,554

4,501

L2641429.UP.FTS.B,

17.81%,

2/16/27

....

11,845

11,706

FW2643031.UP.FTS.B,

17.82%,

2/16/27

..

34,625

34,352

L2641792.UP.FTS.B,

17.85%,

2/16/27

....

4,611

4,339

FW2641155.UP.FTS.B,

18.14%,

2/16/27

..

5,015

4,943

L2642906.UP.FTS.B,

18.21%,

2/16/27

....

45,625

44,967

L2638277.UP.FTS.B,

18.32%,

2/16/27

....

4,564

4,510

L2643141.UP.FTS.B,

18.53%,

2/16/27

....

19,893

19,653

FW2642517.UP.FTS.B,

18.63%,

2/16/27

..

9,859

9,744

L2640308.UP.FTS.B,

18.76%,

2/16/27

....

31,962

31,501

FW2640157.UP.FTS.B,

18.91%,

2/16/27

..

9,700

9,584

L2639156.UP.FTS.B,

18.92%,

2/16/27

....

22,838

22,572

L2607183.UP.FTS.B,

19.09%,

2/16/27

....

18,414

18,204

FW2643386.UP.FTS.B,

19.11%,

2/16/27

..

3,470

3,428

L2640102.UP.FTS.B,

19.59%,

2/16/27

....

23,807

23,532

L2642912.UP.FTS.B,

19.59%,

2/16/27

....

18,112

17,897

L2642762.UP.FTS.B,

19.61%,

2/16/27

....

2,196

2,165

L2640760.UP.FTS.B,

19.65%,

2/16/27

....

4,387

4,127

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2637788.UP.FTS.B,

19.66%,

2/16/27

....

$

3,020

$

2,976

L2644725.UP.FTS.B,

19.78%,

2/16/27

....

9,211

8,658

L2643324.UP.FTS.B,

19.84%,

2/16/27

....

43,356

42,821

L2639353.UP.FTS.B,

19.93%,

2/16/27

....

27,579

27,262

FW2639991.UP.FTS.B,

19.94%,

2/16/27

..

2,747

2,708

L2639587.UP.FTS.B,

20.1%,

2/16/27

....

3,664

3,611

FW2640938.UP.FTS.B,

20.16%,

2/16/27

..

9,986

9,906

L2644661.UP.FTS.B,

20.31%,

2/16/27

....

2,177

2,145

L2644267.UP.FTS.B,

20.32%,

2/16/27

....

916

909

L2643431.UP.FTS.B,

20.38%,

2/16/27

....

13,045

12,272

L2631654.UP.FTS.B,

20.62%,

2/16/27

....

20,542

20,378

FW2644103.UP.FTS.B,

20.8%,

2/16/27

...

6,883

6,804

FW2639130.UP.FTS.B,

21.01%,

2/16/27

..

3,671

3,642

L2638809.UP.FTS.B,

21.09%,

2/16/27

....

5,759

159

FW2640179.UP.FTS.B,

21.11%,

2/16/27

..

4,066

4,033

FW2642916.UP.FTS.B,

21.2%,

2/16/27

...

13,645

13,444

FW2638739.UP.FTS.B,

21.34%,

2/16/27

..

2,849

429

L2640498.UP.FTS.B,

21.39%,

2/16/27

....

9,186

9,113

FW2641696.UP.FTS.B,

21.58%,

2/16/27

..

3,473

3,430

L2638952.UP.FTS.B,

21.6%,

2/16/27

....

26,003

25,623

FW2640087.UP.FTS.B,

21.67%,

2/16/27

..

19,026

18,876

FW2638136.UP.FTS.B,

21.78%,

2/16/27

..

7,355

7,297

FW2643646.UP.FTS.B,

21.86%,

2/16/27

..

14,804

14,687

FW2644820.UP.FTS.B,

21.87%,

2/16/27

..

6,437

6,386

L2641584.UP.FTS.B,

21.92%,

2/16/27

....

47,104

44,377

L2637535.UP.FTS.B,

21.95%,

2/16/27

....

27,039

26,826

L2641532.UP.FTS.B,

22.02%,

2/16/27

....

6,347

6,297

L2641233.UP.FTS.B,

22.03%,

2/16/27

....

15,829

15,705

FW2641686.UP.FTS.B,

22.07%,

2/16/27

..

3,024

2,981

L2631819.UP.FTS.B,

22.11%,

2/16/27

....

26,860

26,616

L2637903.UP.FTS.B,

22.13%,

2/16/27

....

10,942

10,781

L2640343.UP.FTS.B,

22.15%,

2/16/27

....

2,779

801

FW2640578.UP.FTS.B,

22.42%,

2/16/27

..

857

848

L2640051.UP.FTS.B,

22.42%,

2/16/27

....

8,320

8,250

L2640329.UP.FTS.B,

22.77%,

2/16/27

....

4,054

4,022

L2639752.UP.FTS.B,

22.85%,

2/16/27

....

46,073

45,421

FW2643850.UP.FTS.B,

23.05%,

2/16/27

..

13,782

13,671

L2644478.UP.FTS.B,

23.24%,

2/16/27

....

18,448

18,305

FW2641930.UP.FTS.B,

23.25%,

2/16/27

..

9,596

9,460

FW2640017.UP.FTS.B,

23.28%,

2/16/27

..

46,133

45,775

FW2639536.UP.FTS.B,

23.38%,

2/16/27

..

10,750

10,626

L2633805.UP.FTS.B,

23.55%,

2/16/27

....

5,711

855

L2636952.UP.FTS.B,

23.58%,

2/16/27

....

9,229

9,157

FW2639691.UP.FTS.B,

23.69%,

2/16/27

..

16,800

16,669

L2644610.UP.FTS.B,

23.76%,

2/16/27

....

2,259

161

FW2643737.UP.FTS.B,

23.79%,

2/16/27

..

14,696

14,571

L2643173.UP.FTS.B,

23.83%,

2/16/27

....

4,573

4,507

FW2639280.UP.FTS.B,

23.91%,

2/16/27

..

2,032

2,016

L2641033.UP.FTS.B,

24.08%,

2/16/27

....

1,429

214

L2644184.UP.FTS.B,

24.14%,

2/16/27

....

8,189

8,095

FW2638182.UP.FTS.B,

24.2%,

2/16/27

...

4,703

1,296

FW2641835.UP.FTS.B,

24.33%,

2/16/27

..

9,533

1,391

L2638762.UP.FTS.B,

24.36%,

2/16/27

....

3,155

2,990

L2642186.UP.FTS.B,

24.42%,

2/16/27

....

2,077

1,970

L2638731.UP.FTS.B,

24.44%,

2/16/27

....

3,698

3,669

L2642402.UP.FTS.B,

24.44%,

2/16/27

....

12,018

11,925

FW2643566.UP.FTS.B,

24.68%,

2/16/27

..

3,895

280

FW2641976.UP.FTS.B,

24.71%,

2/16/27

..

12,210

12,116

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

179

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2638887.UP.FTS.B,

24.84%,

2/16/27

....

$

1,851

$

1,836

L2643360.UP.FTS.B,

24.93%,

2/16/27

....

3,054

3,030

L2642616.UP.FTS.B,

24.96%,

2/16/27

....

1,264

89

L2642235.UP.FTS.B,

24.97%,

2/16/27

....

1,388

1,378

L2640445.UP.FTS.B,

25.03%,

2/16/27

....

3,054

457

FW2642257.UP.FTS.B,

25.15%,

2/16/27

..

9,244

9,172

FW2640811.UP.FTS.B,

25.17%,

2/16/27

..

27,776

27,562

L2638208.UP.FTS.B,

25.18%,

2/16/27

....

2,315

2,297

L2644708.UP.FTS.B,

25.19%,

2/16/27

....

4,259

4,226

L2639167.UP.FTS.B,

25.24%,

2/16/27

....

4,445

4,411

L2640859.UP.FTS.B,

25.24%,

2/16/27

....

4,091

291

L2629944.UP.FTS.B,

25.26%,

2/16/27

....

1,111

1,103

L2639868.UP.FTS.B,

25.27%,

2/16/27

....

1,019

1,011

L2639974.UP.FTS.B,

25.28%,

2/16/27

....

2,440

2,417

L2644756.UP.FTS.B,

25.29%,

2/16/27

....

2,436

2,309

FW2644569.UP.FTS.B,

25.34%,

2/16/27

..

9,447

8,959

L2640772.UP.FTS.B,

25.34%,

2/16/27

....

1,483

1,472

L2640475.UP.FTS.B,

25.37%,

2/16/27

....

3,149

3,125

L2641882.UP.FTS.B,

25.38%,

2/16/27

....

2,418

2,380

L2642246.UP.FTS.B,

25.42%,

2/16/27

....

2,038

2,022

L2637328.UP.FTS.B,

25.43%,

2/16/27

....

5,651

5,607

L2643718.UP.FTS.B,

25.45%,

2/16/27

....

1,297

1,287

L2638486.UP.FTS.B,

25.48%,

2/16/27

....

9,542

9,469

L2644251.UP.FTS.B,

25.49%,

2/16/27

....

1,115

1,106

L2643938.UP.FTS.B,

25.5%,

2/16/27

....

1,390

1,379

L2643974.UP.FTS.B,

25.5%,

2/16/27

....

3,362

3,336

L2644656.UP.FTS.B,

25.52%,

2/16/27

....

3,613

3,586

L2638794.UP.FTS.B,

25.6%,

2/16/27

....

12,047

11,954

L2638678.UP.FTS.B,

25.84%,

2/16/27

....

9,271

9,200

FW2639725.UP.FTS.B,

25.86%,

2/16/27

..

10,017

9,941

FW2642963.UP.FTS.B,

25.88%,

2/16/27

..

4,450

4,416

FW2634599.UP.FTS.B,

26.05%,

2/16/27

..

15,280

14,490

L2640846.UP.FTS.B,

26.29%,

2/16/27

....

23,444

22,232

FW2639867.UP.FTS.B,

26.3%,

2/16/27

...

1,856

1,842

FW2642156.UP.FTS.B,

26.37%,

2/16/27

..

2,605

2,584

FW2642879.UP.FTS.B,

26.39%,

2/16/27

..

7,503

7,116

FW2640075.UP.FTS.B,

26.63%,

2/16/27

..

1,947

571

L2640994.UP.FTS.B,

27.05%,

2/16/27

....

18,586

18,445

FW2641067.UP.FTS.B,

27.08%,

2/16/27

..

6,481

6,430

FW2638017.UP.FTS.B,

27.09%,

2/16/27

..

7,992

7,932

FW2640323.UP.FTS.B,

27.2%,

2/16/27

...

6,391

6,341

L2644222.UP.FTS.B,

27.35%,

2/16/27

....

6,230

6,183

FW2636711.UP.FTS.B,

27.4%,

2/16/27

...

9,299

9,229

FW2641807.UP.FTS.B,

27.73%,

2/16/27

..

10,909

3,188

FW2639797.UP.FTS.B,

28.19%,

2/16/27

..

2,608

2,588

FW2644724.UP.FTS.B,

28.24%,

2/16/27

..

46,748

46,376

FW2643525.UP.FTS.B,

28.34%,

2/16/27

..

10,620

10,540

FW2644630.UP.FTS.B,

28.55%,

2/16/27

..

9,336

9,260

FW2642505.UP.FTS.B,

29.14%,

2/16/27

..

1,945

1,929

FW2644598.UP.FTS.B,

29.38%,

2/16/27

..

10,173

10,098

FW2642765.UP.FTS.B,

29.42%,

2/16/27

..

9,751

683

FW2638694.UP.FTS.B,

29.47%,

2/16/27

..

3,351

984

FW2638733.UP.FTS.B,

29.69%,

2/16/27

..

4,016

3,986

FW2637102.UP.FTS.B,

30%,

2/16/27

....

10,091

10,016

FW2643620.UP.FTS.B,

30.03%,

2/16/27

..

1,355

(10)

FW2641230.UP.FTS.B,

30.11%,

2/16/27

..

2,225

2,204

FW2639696.UP.FTS.B,

30.14%,

2/16/27

..

935

928

FW2640894.UP.FTS.B,

30.14%,

2/16/27

..

25,421

25,233

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2644440.UP.FTS.B,

30.21%,

2/16/27

..

$

1,215

$

1,206

FW2641475.UP.FTS.B,

30.33%,

2/16/27

..

1,577

1,565

FW2642574.UP.FTS.B,

30.52%,

2/16/27

..

17,887

17,662

FW2639097.UP.FTS.B,

30.54%,

2/16/27

..

935

928

FW2641049.UP.FTS.B,

30.61%,

2/16/27

..

2,268

74

FW2632545.UP.FTS.B,

30.71%,

2/16/27

..

1,961

1,931

FW2644847.UP.FTS.B,

30.77%,

2/16/27

..

1,353

1,337

FW2640492.UP.FTS.B,

30.82%,

2/16/27

..

1,269

88

FW2641207.UP.FTS.B,

30.9%,

2/16/27

...

3,182

3,159

FW2643698.UP.FTS.B,

30.91%,

2/16/27

..

6,789

480

FW2642662.UP.FTS.B,

30.94%,

2/16/27

..

5,054

5,017

FW2641385.UP.FTS.B,

30.96%,

2/16/27

..

1,253

1,238

FW2643800.UP.FTS.B,

31.1%,

2/16/27

...

1,395

1,347

FW2638255.UP.FTS.B,

31.12%,

2/16/27

..

2,071

2,052

FW2641109.UP.FTS.B,

31.12%,

2/16/27

..

41,285

39,180

FW2610188.UP.FTS.B,

31.13%,

2/16/27

..

9,382

9,308

FW2641269.UP.FTS.B,

31.13%,

2/16/27

..

10,683

10,606

FW2644572.UP.FTS.B,

31.14%,

2/16/27

..

18,718

18,580

FW2642792.UP.FTS.B,

31.15%,

2/16/27

..

1,128

1,119

FW2639361.UP.FTS.B,

31.17%,

2/16/27

..

1,311

1,301

FW2638262.UP.FTS.B,

31.18%,

2/16/27

..

2,245

156

FW2638060.UP.FTS.B,

31.21%,

2/16/27

..

2,435

2,417

FW2640012.UP.FTS.B,

31.21%,

2/16/27

..

1,248

87

FW2643874.UP.FTS.B,

31.23%,

2/16/27

..

4,394

4,362

FW2623499.UP.FTS.B,

31.32%,

2/16/27

..

13,599

12,907

FW2638899.UP.FTS.B,

31.34%,

2/16/27

..

3,973

(36)

FW2635345.UP.FTS.B,

31.4%,

2/16/27

...

2,288

673

FW2638691.UP.FTS.B,

31.42%,

2/16/27

..

8,898

8,833

FW2641390.UP.FTS.B,

31.53%,

2/16/27

..

16,208

16,089

FW2643082.UP.FTS.B,

31.96%,

2/16/27

..

1,614

1,599

FW2639818.UP.FTS.B,

33.34%,

2/16/27

..

3,882

(63)

FW2641809.UP.FTS.B,

33.83%,

2/16/27

..

1,975

1,961

L2645179.UP.FTS.B,

6.87%,

2/17/27

....

12,121

12,065

FW2645552.UP.FTS.B,

9.48%,

2/17/27

...

7,135

7,093

L2645113.UP.FTS.B,

10.21%,

2/17/27

....

7,173

7,113

FW2645630.UP.FTS.B,

12.87%,

2/17/27

..

11,622

11,525

L2644980.UP.FTS.B,

12.95%,

2/17/27

....

1,749

1,734

L2645342.UP.FTS.B,

13.93%,

2/17/27

....

27,045

26,826

FW2645588.UP.FTS.B,

15.61%,

2/17/27

..

3,610

3,568

FW2645675.UP.FTS.B,

15.8%,

2/17/27

...

24,665

24,377

FW2645832.UP.FTS.B,

18.88%,

2/17/27

..

13,702

13,545

L2645909.UP.FTS.B,

19.06%,

2/17/27

....

4,607

4,553

L2645010.UP.FTS.B,

20.52%,

2/17/27

....

10,085

9,944

FW2642053.UP.FTS.B,

21.61%,

2/17/27

..

3,854

3,825

L2645135.UP.FTS.B,

21.7%,

2/17/27

....

2,022

2,007

FW2645361.UP.FTS.B,

22.1%,

2/17/27

...

24,147

1,722

L2645558.UP.FTS.B,

22.43%,

2/17/27

....

2,658

2,620

L2645378.UP.FTS.B,

22.72%,

2/17/27

....

4,790

4,755

L2645573.UP.FTS.B,

22.94%,

2/17/27

....

1,784

1,758

FW2645248.UP.FTS.B,

23.66%,

2/17/27

..

5,048

759

FW2645101.UP.FTS.B,

24.46%,

2/17/27

..

4,160

4,130

L2644940.UP.FTS.B,

25.36%,

2/17/27

....

2,779

2,758

L2645037.UP.FTS.B,

25.41%,

2/17/27

....

2,131

2,115

L2645131.UP.FTS.B,

25.45%,

2/17/27

....

1,281

1,271

L2645504.UP.FTS.B,

26.01%,

2/17/27

....

10,665

10,587

FW2644444.UP.FTS.B,

26.02%,

2/17/27

..

7,708

1,161

L2645397.UP.FTS.B,

26.19%,

2/17/27

....

2,319

2,302

FW2645900.UP.FTS.B,

26.25%,

2/17/27

..

1,856

1,842

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

180

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2645472.UP.FTS.B,

26.31%,

2/17/27

..

$

15,775

$

15,661

FW2645571.UP.FTS.B,

26.48%,

2/17/27

..

3,713

3,686

FW2645486.UP.FTS.B,

26.67%,

2/17/27

..

6,483

458

FW2645165.UP.FTS.B,

26.81%,

2/17/27

..

1,069

1,052

FW2644890.UP.FTS.B,

27.01%,

2/17/27

..

3,682

260

FW2645599.UP.FTS.B,

27.57%,

2/17/27

..

23,254

23,087

FW2644978.UP.FTS.B,

28.18%,

2/17/27

..

10,010

9,935

FW2644973.UP.FTS.B,

28.39%,

2/17/27

..

8,049

7,988

FW2645842.UP.FTS.B,

30.86%,

2/17/27

..

2,949

2,925

FW2645763.UP.FTS.B,

30.98%,

2/17/27

..

1,441

215

FW2645290.UP.FTS.B,

31.68%,

2/17/27

..

8,153

8,096

L1874015.UP.FTS.B,

15.07%,

3/18/27

....

13,944

13,754

L1874238.UP.FTS.B,

17.32%,

3/18/27

....

4,370

4,303

L1874161.UP.FTS.B,

22.65%,

3/18/27

....

4,817

348

L1873293.UP.FTS.B,

23.76%,

3/18/27

....

1,696

488

FW1873439.UP.FTS.B,

25.66%,

3/18/27

..

1,336

1,328

L1874548.UP.FTS.B,

26.04%,

3/18/27

....

5,937

5,890

L1873838.UP.FTS.B,

26.46%,

3/18/27

....

3,814

3,781

FW1873756.UP.FTS.B,

27.59%,

3/18/27

..

3,745

(159)

FW1872134.UP.FTS.B,

29.12%,

3/18/27

..

4,758

1,380

FW1873137.UP.FTS.B,

30.77%,

3/18/27

..

1,543

1,533

FW1874317.UP.FTS.B,

30.79%,

3/18/27

..

4,599

4,458

FW1868928.UP.FTS.B,

30.91%,

3/18/27

..

9,930

9,411

FW1867639.UP.FTS.B,

31%,

3/18/27

....

2,977

874

FW1872958.UP.FTS.B,

31.09%,

3/18/27

..

4,073

1,163

FW1874385.UP.FTS.B,

31.32%,

3/18/27

..

2,954

2,862

L2006933.UP.FTS.B,

23.7%,

4/09/27

....

4,767

4,727

L2009664.UP.FTS.B,

25.29%,

4/09/27

....

1,345

1,332

L1984143.UP.FTS.B,

25.48%,

4/09/27

....

7,564

544

L2004832.UP.FTS.B,

25.91%,

4/09/27

....

3,580

3,531

L2004842.UP.FTS.B,

26.33%,

4/09/27

....

6,567

6,488

FW2009830.UP.FTS.B,

28.06%,

4/09/27

..

24,797

24,572

FW2009768.UP.FTS.B,

29.9%,

4/09/27

...

4,802

(260)

FW2009466.UP.FTS.B,

29.96%,

4/09/27

..

1,612

1,598

FW2008743.UP.FTS.B,

30.92%,

4/09/27

..

1,865

132

FW2009848.UP.FTS.B,

31.08%,

4/09/27

..

19,177

5,524

FW2008914.UP.FTS.B,

31.18%,

4/09/27

..

3,256

3,221

FW2008689.UP.FTS.B,

31.62%,

4/09/27

..

2,179

1,299

L2079809.UP.FTS.B,

11.68%,

4/19/27

....

6,096

5,732

FW2080454.UP.FTS.B,

15.49%,

4/19/27

..

9,424

8,858

L2076923.UP.FTS.B,

15.84%,

4/19/27

....

15,662

15,527

L2077275.UP.FTS.B,

17.44%,

4/19/27

....

5,995

5,925

L2080091.UP.FTS.B,

20.35%,

4/19/27

....

2,265

2,237

FW2077930.UP.FTS.B,

20.81%,

4/19/27

..

9,175

9,104

L2071630.UP.FTS.B,

22.65%,

4/19/27

....

6,471

6,413

L2073677.UP.FTS.B,

24.99%,

4/19/27

....

13,641

13,542

L2078594.UP.FTS.B,

25.45%,

4/19/27

....

20,248

19,520

FW2075118.UP.FTS.B,

26.16%,

4/19/27

..

2,272

2,259

FW2076494.UP.FTS.B,

27.89%,

4/19/27

..

5,288

5,252

FW2079292.UP.FTS.B,

28.03%,

4/19/27

..

1,862

281

FW2077308.UP.FTS.B,

28.64%,

4/19/27

..

2,835

2,688

FW2079282.UP.FTS.B,

30.4%,

4/19/27

...

1,146

1,138

FW2078551.UP.FTS.B,

31.14%,

4/19/27

..

9,884

(678)

L2196990.UP.FTS.B,

14.16%,

5/07/27

....

14,196

14,048

L2200243.UP.FTS.B,

17.54%,

5/07/27

....

917

903

L2196814.UP.FTS.B,

17.8%,

5/07/27

....

14,360

14,235

FW2197884.UP.FTS.B,

20.55%,

5/07/27

..

8,708

8,550

L2197644.UP.FTS.B,

20.86%,

5/07/27

....

1,939

1,919

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2187878.UP.FTS.B,

21.23%,

5/07/27

....

$

48,428

$

(62)

L2197009.UP.FTS.B,

22.01%,

5/07/27

....

5,747

3,396

FW2197402.UP.FTS.B,

23.87%,

5/07/27

..

2,801

2,764

L2197075.UP.FTS.B,

24.86%,

5/07/27

....

1,050

(11)

FW2199514.UP.FTS.B,

25.91%,

5/07/27

..

2,353

2,322

FW2197220.UP.FTS.B,

29.81%,

5/07/27

..

2,135

2,106

FW2199905.UP.FTS.B,

30.79%,

5/07/27

..

1,673

1,651

FW2197058.UP.FTS.B,

31%,

5/07/27

....

4,328

4,277

FW2199111.UP.FTS.B,

31.05%,

5/07/27

..

1,668

1,647

L2194438.UP.FTS.B,

19.48%,

5/08/27

....

5,751

3,279

L2203837.UP.FTS.B,

20.89%,

5/08/27

....

10,754

10,644

L2202018.UP.FTS.B,

21.02%,

5/08/27

....

6,766

982

L2203189.UP.FTS.B,

21.23%,

5/08/27

....

17,043

9,732

L2201398.UP.FTS.B,

22.49%,

5/08/27

....

10,414

10,239

L2169853.UP.FTS.B,

22.52%,

5/08/27

....

4,582

4,529

L2201738.UP.FTS.B,

22.82%,

5/08/27

....

14,565

14,436

FW2156213.UP.FTS.B,

23.43%,

5/08/27

..

9,108

(277)

FW2205649.UP.FTS.B,

23.84%,

5/08/27

..

3,597

3,558

L2200698.UP.FTS.B,

24.01%,

5/08/27

....

4,302

618

FW2201153.UP.FTS.B,

24.4%,

5/08/27

...

13,678

3,906

FW2201944.UP.FTS.B,

25.52%,

5/08/27

..

4,672

4,616

L2204916.UP.FTS.B,

25.63%,

5/08/27

....

9,344

9,232

L2204844.UP.FTS.B,

25.75%,

5/08/27

....

2,970

848

L2206165.UP.FTS.B,

26.19%,

5/08/27

....

7,401

7,329

L2205662.UP.FTS.B,

26.26%,

5/08/27

....

7,746

(72)

FW2201816.UP.FTS.B,

26.65%,

5/08/27

..

4,264

4,212

FW2199020.UP.FTS.B,

29.97%,

5/08/27

..

8,984

8,872

FW2206271.UP.FTS.B,

30.18%,

5/08/27

..

7,685

2,192

FW2199475.UP.FTS.B,

30.86%,

5/08/27

..

3,946

3,913

FW2200744.UP.FTS.B,

30.97%,

5/08/27

..

4,787

2,856

FW2202450.UP.FTS.B,

31.05%,

5/08/27

..

2,664

2,641

FW2201216.UP.FTS.B,

31.06%,

5/08/27

..

2,395

2,372

FW2203796.UP.FTS.B,

31.21%,

5/08/27

..

6,033

5,969

FW2411320.UP.FTS.B,

10.63%,

6/11/27

..

4,185

4,144

FW2407061.UP.FTS.B,

16.61%,

6/11/27

..

15,396

15,223

L2408543.UP.FTS.B,

21.71%,

6/11/27

....

4,417

642

FW2406392.UP.FTS.B,

23.41%,

6/11/27

..

8,471

8,366

FW2407476.UP.FTS.B,

24.28%,

6/11/27

..

4,376

4,327

L2412285.UP.FTS.B,

25.08%,

6/11/27

....

11,699

11,557

FW2411228.UP.FTS.B,

26.37%,

6/11/27

..

3,864

3,821

L2407955.UP.FTS.B,

27%,

6/11/27

......

7,657

7,556

FW2412851.UP.FTS.B,

28.09%,

6/11/27

..

4,423

4,375

FW2410113.UP.FTS.B,

29.34%,

6/11/27

..

2,989

2,958

FW2413380.UP.FTS.B,

30.45%,

6/11/27

..

3,783

3,742

FW2412683.UP.FTS.B,

30.78%,

6/11/27

..

38,075

37,607

FW2407168.UP.FTS.B,

30.95%,

6/11/27

..

1,158

337

FW2410302.UP.FTS.B,

30.97%,

6/11/27

..

1,730

1,708

FW2411563.UP.FTS.B,

31.19%,

6/11/27

..

4,100

591

FW2412681.UP.FTS.B,

31.21%,

6/11/27

..

1,679

999

FW2411177.UP.FTS.B,

31.23%,

6/11/27

..

2,908

2,877

FW2408291.UP.FTS.B,

31.44%,

6/11/27

..

7,289

4,350

FW2418154.UP.FTS.B,

10.71%,

6/12/27

..

2,892

1,505

L2418555.UP.FTS.B,

15.62%,

6/12/27

....

14,569

14,442

L2419121.UP.FTS.B,

17.04%,

6/12/27

....

6,353

6,270

L2415568.UP.FTS.B,

19.57%,

6/12/27

....

3,224

3,191

L2416765.UP.FTS.B,

21.01%,

6/12/27

....

5,382

1,535

FW2419008.UP.FTS.B,

22.47%,

6/12/27

..

3,276

3,243

L2417908.UP.FTS.B,

23.41%,

6/12/27

....

3,752

3,714

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

181

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2414632.UP.FTS.B,

24.07%,

6/12/27

..

$

966

$

574

L2416850.UP.FTS.B,

24.48%,

6/12/27

....

23,502

23,283

L2418124.UP.FTS.B,

25.47%,

6/12/27

....

21,594

21,390

FW2415712.UP.FTS.B,

26.64%,

6/12/27

..

1,930

279

FW2420083.UP.FTS.B,

27.39%,

6/12/27

..

46,536

46,109

FW2417889.UP.FTS.B,

30.34%,

6/12/27

..

2,683

2,661

FW2412961.UP.FTS.B,

30.81%,

6/12/27

..

1,726

1,709

FW2418092.UP.FTS.B,

30.98%,

6/12/27

..

1,334

1,321

FW2420156.UP.FTS.B,

31.98%,

6/12/27

..

2,616

2,591

L1708685.UP.FTS.B,

16.63%,

7/14/27

....

2,615

2,588

FW1706254.UP.FTS.B,

26.93%,

7/14/27

..

27,799

8,056

FW2631473.UP.FTS.B,

23.57%,

7/15/27

..

1,072

309

L2631727.UP.FTS.B,

25.43%,

7/15/27

....

12,858

3,728

FW2644039.UP.FTS.B,

16.97%,

7/16/27

..

7,122

7,058

FW2639528.UP.FTS.B,

18.78%,

7/16/27

..

39,353

39,050

L2639355.UP.FTS.B,

21.49%,

7/16/27

....

3,254

3,207

L2640849.UP.FTS.B,

22.86%,

7/16/27

....

3,644

3,613

L2640906.UP.FTS.B,

23.61%,

7/16/27

....

5,685

5,636

L2640669.UP.FTS.B,

23.79%,

7/16/27

....

14,446

14,331

L2643831.UP.FTS.B,

24.23%,

7/16/27

....

4,334

4,107

L2643306.UP.FTS.B,

25.49%,

7/16/27

....

18,215

18,078

FW2630978.UP.FTS.B,

26.06%,

7/16/27

..

1,070

1,015

FW2638344.UP.FTS.B,

26.96%,

7/16/27

..

2,727

2,708

FW2644291.UP.FTS.B,

28.88%,

7/16/27

..

5,819

846

FW2644628.UP.FTS.B,

30.88%,

7/16/27

..

1,341

1,329

FW2643274.UP.FTS.B,

30.91%,

7/16/27

..

17,339

17,189

FW2641966.UP.FTS.B,

30.93%,

7/16/27

..

1,152

337

L2642277.UP.FTS.B,

22.82%,

7/17/27

....

6,095

6,021

L2642860.UP.FTS.B,

25.01%,

7/17/27

....

4,466

663

FW2645345.UP.FTS.B,

29.29%,

7/17/27

..

3,933

1,140

FW2007802.UP.FTS.B,

23.93%,

9/09/27

..

31,817

31,409

FW2008085.UP.FTS.B,

31.48%,

9/09/27

..

5,114

726

L2202846.UP.FTS.B,

8.79%,

10/08/27

....

16,304

16,190

L2202378.UP.FTS.B,

16.57%,

10/08/27

...

5,597

879

L2205138.UP.FTS.B,

24.86%,

10/08/27

...

3,223

3,175

FW2202975.UP.FTS.B,

30.2%,

10/08/27

..

3,202

3,169

L2407212.UP.FTS.B,

7.8%,

11/11/27

.....

16,674

8,441

L2413593.UP.FTS.B,

23.06%,

11/11/27

...

8,396

8,311

FW2414721.UP.FTS.B,

28.43%,

11/12/27

.

5,740

5,882

FW2631740.UP.FTS.B,

34.39%,

12/15/27

.

3,823

1,115

FW2639053.UP.FTS.B,

29.06%,

12/16/27

.

3,233

3,202

FW2643411.UP.FTS.B,

29.58%,

12/16/27

.

5,109

5,065

L1710242.UP.FTS.B,

16.42%,

9/14/28

....

2,708

2,691

L1708682.UP.FTS.B,

24.71%,

9/14/28

....

46,395

26,251

L2008544.UP.FTS.B,

14.54%,

11/09/28

...

4,594

4,573

L1973640.UP.FTS.B,

20.1%,

11/09/28

....

9,709

9,658

L2008144.UP.FTS.B,

25.61%,

11/09/28

...

2,296

631

L2009558.UP.FTS.B,

26.34%,

11/09/28

...

17,455

17,309

L2195991.UP.FTS.B,

26.01%,

12/07/28

...

8,605

8,516

L2197007.UP.FTS.B,

26.07%,

12/07/28

...

2,477

2,451

L2204377.UP.FTS.B,

25.94%,

12/08/28

...

4,191

4,153

L2635238.UP.FTS.B,

13.81%,

2/15/29

....

14,097

14,026

L2631621.UP.FTS.B,

15.64%,

2/15/29

....

20,360

20,231

L2633434.UP.FTS.B,

17.36%,

2/15/29

....

4,357

4,336

L2633944.UP.FTS.B,

25.93%,

2/15/29

....

1,757

251

L2633742.UP.FTS.B,

25.95%,

2/15/29

....

3,078

3,059

L2634808.UP.FTS.B,

26.03%,

2/15/29

....

1,924

1,903

L2635718.UP.FTS.B,

26.25%,

2/15/29

....

2,405

2,383

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2633894.UP.FTS.B,

26.42%,

2/15/29

....

$

4,510

$

4,457

L2635317.UP.FTS.B,

27.28%,

2/15/29

....

2,216

2,196

L2637431.UP.FTS.B,

26.27%,

7/15/29

....

6,579

6,504

20,261,820

Total

Marketplace

Loans

(Cost

$80,904,694)

....

$75,310,374

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

October

31,

2022

Franklin

Strategic

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

182

At

October

31,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1

(

d

). 

At

October

31,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

At

October

31,

2022,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(d). 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

U.S.

Treasury

10

Year

Notes

....................

Long

440

$

48,661,250

12/20/22

$

(3,035,915)

U.S.

Treasury

10

Year

Ultra

Notes

................

Long

208

24,124,750

12/20/22

(733,893)

U.S.

Treasury

5

Year

Notes

.....................

Long

80

8,527,500

12/30/22

(366,200)

U.S.

Treasury

Ultra

Bonds

......................

Long

166

21,190,938

12/20/22

(3,601,666)

Total

Futures

Contracts

......................................................................

$(7,737,674)

*

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

Buy

38,100,000

7,272,519

11/07/22

$

96,523

$

—

Brazilian

Real

......

JPHQ

Sell

48,000,000

9,029,855

11/07/22

—

(253,978)

Columbian

Peso

....

JPHQ

Sell

57,000,000,000

12,857,820

11/30/22

1,376,367

—

Euro

.............

JPHQ

Sell

20,000,000

19,578,600

1/17/23

—

(317,839)

Indonesian

Rupiah

..

JPHQ

Buy

32,350,000,000

2,082,395

1/17/23

—

(18,885)

Indonesian

Rupiah

..

JPHQ

Sell

32,350,000,000

2,092,361

1/17/23

28,852

—

Total

Forward

Exchange

Contracts

...................................................

$1,501,742

$(590,702)

Net

unrealized

appreciation

(depreciation)

............................................

$911,040

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

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.EM.37

.

(1.00)%

Quarterly

6/20/27

21,820,000

$

1,540,101

$

1,910,613

$

(370,512)

CDX.NA.HY.39

.

(5.00)%

Quarterly

12/20/27

9,000,000

15,828

191,721

(175,893)

CDX.NA.IG.39

..

(1.00)%

Quarterly

12/20/27

31,300,000

(174,304)

164,620

(338,924)

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

183

Credit

Default

Swap

Contracts

(continued)

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

(continued)

Contracts

to

Sell

Protection

(c)(d)

Traded

Index

iTraxx

Europe

Main

38

....

1.00%

Quarterly

12/20/27

31,300,000

EUR

$

(164,604)

$

(505,946)

$

341,342

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

.....................................

$1,217,021

$1,761,008

$(543,987)

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Carnival

Corp.

..

1.00%

Quarterly

CITI

6/20/27

17,820,000

(7,232,313)

(2,993,090)

(4,239,223)

B-

Mexico

Government

Bond

......

1.00%

Quarterly

GSCO

6/20/26

9,250,000

(65,167)

19,542

(84,709)

BBB

Traded

Index

(e)

BNP

Paribas

Bespoke

Haverhill

Index,

Mezzanine

Tranche

5-10%

4.10%

Quarterly

BNDP

12/20/23

3,150,000

EUR

(139,247)

—

(139,247)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kenai

Index,

Equity

Tranche

0-5%

—%

Quarterly

CITI

12/20/23

22,100,000

(9,981,758)

(3,848,053)

(6,133,705)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kona

Index,

Equity

Tranche

0-5%

—%

Quarterly

CITI

12/20/22

9,500,000

(641,911)

(176,280)

(465,631)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kona

Index,

Mezzanine

Tranche

5-10%

2.42%

Quarterly

CITI

12/20/22

7,900,000

(5,544)

—

(5,544)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Palm

Beach

Index,

Mezzanine

Tranche

5-10%

1.97%

Quarterly

CITI

12/20/22

10,600,000

2,312

—

2,312

Non-

Investment

Grade

(e)

Citibank

Bespoke

Rotorua

Index,

Mezzanine

Tranche

5-10%

3.60%

Quarterly

CITI

12/20/23

5,300,000

(210,484)

—

(210,484)

Non-

Investment

Grade

MCDX.

NA.MAIN.31

.

1.00%

Quarterly

CITI

12/20/23

23,060,000

141,297

52,953

88,344

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$(18,132,815)

$(6,944,928)

$(11,187,887)

Total

Credit

Default

Swap

Contracts

....................................

$(16,915,794)

$

(5,183,920)

$(11,731,874)

(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.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

184

At

October

31,

2022,

the

Fund

had

the

following total

return

swap

contracts outstanding.

See

Note

1(d). 

(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.

Total

Return

Swap

Contracts

Underlying

Instruments

Financing

Rate

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Value

*

Value/

Unrealized

Appreciation

(Depreciation)

OTC

Swap

Contracts

Short

(a)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

BZWS

3/20/23

13,800,000

$

(15,239)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

MSCO

3/20/23

8,855,000

15,657

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

BNDP

3/20/23

1,820,000

(12,026)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

BNDP

3/20/23

5,525,000

(22,063)

Total

Return

Swap

Contracts

...................................................................

$(33,671)

See

Note

11

regarding

other

derivative

information.

See

Abbreviations

on

page

208.

Franklin

Strategic

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

October

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

185

Franklin

Strategic

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$3,021,201,822

Cost

-

Controlled

affiliates

(Note

3

f

)

............................................................

223,160,246

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

37,963,032

Cost

-

Unaffiliated

repurchase

agreements

......................................................

54,074,822

Value

-

Unaffiliated

issuers

..................................................................

$2,591,184,742

Value

-

Controlled

affiliates

(Note

3

f

)

...........................................................

178,754,852

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

37,963,032

Value

-

Unaffiliated

repurchase

agreements

......................................................

54,074,822

Cash

....................................................................................

15,172,905

Receivables:

Investment

securities

sold

...................................................................

87,692,421

Capital

shares

sold

........................................................................

638,783

Dividends

and

interest

.....................................................................

29,269,117

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

18,870,000

Futures

contracts

........................................................................

2,651,000

Centrally

cleared

swap

contracts

............................................................

1,248,840

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

125,561

OTC

swap

contracts

(upfront

payments

$257,108)

..................................................

72,495

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

1,501,742

Unrealized

appreciation

on

OTC

swap

contracts

....................................................

106,313

Deferred

tax

benefit

.........................................................................

287,971

Total

assets

..........................................................................

3,019,614,596

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

90,038,762

Capital

shares

redeemed

...................................................................

2,960,332

Management

fees

.........................................................................

1,005,896

Distribution

fees

..........................................................................

576,913

Transfer

agent

fees

........................................................................

1,045,635

Trustees'

fees

and

expenses

.................................................................

9,838

Variation

margin

on

futures

contracts

...........................................................

614,624

OTC

swap

contracts

(upfront

receipts

$12,556,100)

.................................................

7,017,423

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

11,327,871

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

590,702

Accrued

expenses

and

other

liabilities

...........................................................

1,281,967

Total

liabilities

.........................................................................

116,469,963

Net

assets,

at

value

.................................................................

$2,903,144,633

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$4,193,535,638

Total

distributable

earnings

(losses)

.............................................................

(1,290,391,005)

Net

assets,

at

value

.................................................................

$2,903,144,633

Franklin

Strategic

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

October

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

186

Franklin

Strategic

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,290,353,235

Shares

outstanding

........................................................................

290,491,980

Net

asset

value

per

share

a

..................................................................

$7.88

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$8.19

Class

C:

Net

assets,

at

value

.......................................................................

$122,307,888

Shares

outstanding

........................................................................

15,502,444

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$7.89

Class

R:

Net

assets,

at

value

.......................................................................

$41,359,422

Shares

outstanding

........................................................................

5,269,522

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.85

Class

R6:

Net

assets,

at

value

.......................................................................

$118,072,306

Shares

outstanding

........................................................................

14,950,322

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.90

Advisor

Class:

Net

assets,

at

value

.......................................................................

$331,051,782

Shares

outstanding

........................................................................

41,931,599

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.90

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

six

months

ended

October

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

187

Franklin

Strategic

Income

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$3,505,659

Controlled

affiliates

(Note

3

f

)

.................................................................

7,754,786

Non-controlled

affiliates

(Note

3

f

)

.............................................................

284,590

Interest:

(net

of

foreign

taxes

of

$116,237)

Unaffiliated

issuers

........................................................................

65,608,891

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

6,202

Non-controlled

affiliates

(Note

3

f

)

.............................................................

1,120

Total

investment

income

...................................................................

77,161,248

Expenses:

Management

fees

(Note

3

a

)

...................................................................

7,220,647

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

3,087,394

    Class

C

................................................................................

479,561

    Class

R

................................................................................

113,616

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

2,057,064

    Class

C

................................................................................

122,546

    Class

R

................................................................................

37,844

    Class

R6

...............................................................................

33,416

    Advisor

Class

............................................................................

301,964

Custodian

fees

(Note

4

)

......................................................................

32,712

Reports

to

shareholders

fees

..................................................................

177,169

Registration

and

filing

fees

....................................................................

55,729

Professional

fees

...........................................................................

67,391

Trustees'

fees

and

expenses

..................................................................

8,424

Marketplace

lending

fees

(Note

1

g

)

.............................................................

745,720

Other

....................................................................................

112,245

Total

expenses

.........................................................................

14,653,442

Expense

reductions

(Note

4

)

...............................................................

(15,074)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

..............................................

(1,025,253)

Net

expenses

.........................................................................

13,613,115

Net

investment

income

................................................................

63,548,133

Franklin

Strategic

Series

Financial

Statements

Statement

of

Operations

(continued)

for

the

six

months

ended

October

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

188

Franklin

Strategic

Income

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(93,107,364)

Controlled

affiliates

(Note

3

f

)

...............................................................

(35,343,967)

Foreign

currency

transactions

................................................................

(15,862)

Forward

exchange

contracts

.................................................................

3,539,030

Futures

contracts

.........................................................................

(3,863,672)

TBA

sale

commitments

.....................................................................

53,799

Swap

contracts

...........................................................................

5,772,259

Net

realized

gain

(loss)

..................................................................

(122,965,777)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(130,221,382)

Controlled

affiliates

(Note

3

f

)

...............................................................

13,851,218

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(34,433)

Forward

exchange

contracts

.................................................................

686,215

Futures

contracts

.........................................................................

(6,535,533)

Swap

contracts

...........................................................................

(8,529,881)

Change

in

deferred

tax

benefit

...............................................................

(693,084)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

31,461

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(131,445,419)

Net

realized

and

unrealized

gain

(loss)

............................................................

(254,411,196)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(190,863,063)

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

189

Franklin

Strategic

Income

Fund

Six

Months

Ended

October

31,

2022

(unaudited)

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$63,548,133

$117,877,083

Net

realized

gain

(loss)

.................................................

(122,965,777)

(74,161,229)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(131,445,419)

(261,970,566)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(190,863,063)

(218,254,712)

Distributions

to

shareholders:

Class

A

.............................................................

(48,497,088)

(104,476,136)

Class

C

.............................................................

(2,521,793)

(7,926,927)

Class

R

.............................................................

(836,971)

(1,847,687)

Class

R6

............................................................

(2,744,811)

(5,646,868)

Advisor

Class

........................................................

(7,550,255)

(16,976,765)

Total

distributions

to

shareholders

..........................................

(62,150,918)

(136,874,383)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(121,309,917)

24,319,901

Class

C

.............................................................

(37,256,377)

(198,078,184)

Class

R

.............................................................

(3,409,295)

(5,859,698)

Class

R6

............................................................

(7,845,907)

17,687,072

Advisor

Class

........................................................

(30,023,056)

(31,320,044)

Total

capital

share

transactions

............................................

(199,844,552)

(193,250,953)

Net

increase

(decrease)

in

net

assets

...................................

(452,858,533)

(548,380,048)

Net

assets:

Beginning

of

period

.....................................................

3,356,003,166

3,904,383,214

End

of

period

..........................................................

$2,903,144,633

$3,356,003,166

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

Franklin

Strategic

Income

Fund

190

franklintempleton.com

Semiannual

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

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.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

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

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

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

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

191

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

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

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

October

31,

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

192

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

for

repurchase

agreements.

In

the

event

of

default

by

either

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

period

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

October

31,

2022.

d.

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

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.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

193

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

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

total

return

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

risk

of

an

underlying

instrument

such

as

a

stock,

bond,

index

or

basket

of

securities

or

indices.

A

total

return

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

a

return

linked

to

an

underlying

instrument

for

a

floating

or

fixed

rate

payment,

both

based

upon

a

notional

amount.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

or

received

are

accrued

daily

and

recorded

as

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

recognized

as

realized

gain

or

loss.

See

Note

11 regarding

other

derivative

information.

e.

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.

f.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

194

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

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.

At

October

31,

2022,

the

Fund

had

no

securities

on

loan.

g.

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

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.

h.

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.

i.

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.

j.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Securities

Lending

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

195

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

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

October

31,

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. 

k.

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.

l.

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.

m.

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)

j.

Income

and

Deferred

Taxes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

196

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

October

31,

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:

Six

Months

Ended

October

31,

2022

Year

Ended

April

30,

2022

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

11,869,856

$97,471,880

50,761,516

$476,945,327

Shares

issued

in

reinvestment

of

distributions

..........

5,639,798

45,920,990

10,659,429

98,830,200

Shares

redeemed

...............................

(32,259,622)

(264,702,787)

(59,388,810)

(551,455,626)

Net

increase

(decrease)

..........................

(14,749,968)

$(121,309,917)

2,032,135

$24,319,901

Class

C

Shares:

Shares

sold

...................................

489,326

$4,042,445

2,402,939

$22,494,001

Shares

issued

in

reinvestment

of

distributions

..........

300,029

2,447,334

824,330

7,682,094

Shares

redeemed

a

..............................

(5,323,309)

(43,746,156)

(24,241,492)

(228,254,279)

Net

increase

(decrease)

..........................

(4,533,954)

$(37,256,377)

(21,014,223)

$(198,078,184)

Class

R

Shares:

Shares

sold

...................................

360,503

$2,954,018

1,138,464

$10,527,911

Shares

issued

in

reinvestment

of

distributions

..........

102,757

833,081

199,131

1,839,350

Shares

redeemed

...............................

(885,984)

(7,196,394)

(1,961,445)

(18,226,959)

Net

increase

(decrease)

..........................

(422,724)

$(3,409,295)

(623,850)

$(5,859,698)

Class

R6

Shares:

Shares

sold

...................................

1,298,686

$10,731,683

5,621,353

$52,543,321

Shares

issued

in

reinvestment

of

distributions

..........

282,919

2,308,159

515,123

4,780,872

Shares

redeemed

...............................

(2,534,587)

(20,885,749)

(4,272,613)

(39,637,121)

Net

increase

(decrease)

..........................

(952,982)

$(7,845,907)

1,863,863

$17,687,072

Advisor

Class

Shares:

Shares

sold

...................................

3,694,919

$30,460,751

7,408,475

$68,923,330

Shares

issued

in

reinvestment

of

distributions

..........

804,112

6,577,631

1,727,789

16,053,275

Shares

redeemed

...............................

(8,179,672)

(67,061,438)

(12,457,836)

(116,296,649)

Net

increase

(decrease)

..........................

(3,680,641)

$(30,023,056)

(3,321,572)

$(31,320,044)

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

(unaudited)

197

franklintempleton.com

Semiannual

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

period

ended

October

31,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.458%

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

period:

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

(unaudited)

198

franklintempleton.com

Semiannual

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.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

period

ended

October

31,

2022,

the

Fund

paid

transfer

agent

fees

of

$2,552,834,

of

which $1,025,502

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

period

ended

October

31,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$22,379

CDSC

retained

..............................................................................

$26,518

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Strategic

Income

Fund

Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

..................

$

318,685,701

$

—

$

(118,438,100)

$

(35,343,967)

$

13,851,218

$

178,754,852

23,707,540

$

7,754,786

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$

43,841,735

$

4,478,943

$

(10,357,646)

$

—

$

—

$

37,963,032

37,963,032

$

284,590

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

2.86%

.

$4,261,000

$288,000

$(4,549,000)

$—

$—

$—

—

$1,120

Total

Affiliated

Securities

...

$366,788,436

$4,766,943

$(133,344,746)

$(35,343,967)

$13,851,218

$216,717,884

$8,040,496

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

199

franklintempleton.com

Semiannual

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,

2023.

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

period

ended

October

31,

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:

At

October

31,

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

period

ended

October

31,

2022,

aggregated

$1,156,984,280

and

$1,296,176,465,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

October

31,

2022,

the

Fund

had

26.6%

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.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$82,618,474

Long

term

................................................................................

610,690,429

Total

capital

loss

carryforwards

...............................................................

$693,308,903

Cost

of

investments

..........................................................................

$3,308,274,823

Unrealized

appreciation

........................................................................

$65,692,785

Unrealized

depreciation

........................................................................

(535,766,259)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(470,073,474)

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

200

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

October

31,

2022,

the

aggregate

value

of

these

securities

was

$13,530,392,

representing

0.5%

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

October

31,

2022,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

11.

Other

Derivative

Information

At

October

31,

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

125,940,079

K2016470219

South

Africa

Ltd.,

A

...............

2/08/13

-

2/01/17

$

977,123

$

—

12,532,821

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

9,307

—

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)

..............

$21,266,508

$—

*

In

U.S.

dollars

unless

otherwise

indicated.

7.

Credit Risk

and

Defaulted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

201

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

For

the

period

ended

October

31,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

October

31,

2022,

the

average

month

end

notional

amount

of

futures

contracts

and

swap

contracts

represented

$192,579,790

and

$206,544,598,

respectively.

The

average

month

end

contract

value

of

forward

exchange

contracts

was

$82,498,975.

At

October

31,

2022,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

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

$

—

Variation

margin

on

futures

contracts

$

7,737,674

a

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

1,501,742

Unrealized

depreciation

on

OTC

forward

exchange

contracts

590,702

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

341,342

b

Variation

margin

on

centrally

cleared

swap

contracts

885,329

b

OTC

swap

contracts

(upfront

payments)

72,495

OTC

swap

contracts

(upfront

receipts)

7,017,423

Unrealized

appreciation

on

OTC

swap

contracts

106,313

Unrealized

depreciation

on

OTC

swap

contracts

11,327,871

Total

....................

$2,021,892

$27,558,999

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

period

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

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Strategic

Income

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Futures

contracts

$(3,863,672)

Futures

contracts

$(6,535,533)

Foreign

exchange

contracts

.....

Forward

exchange

contracts

3,539,030

Forward

exchange

contracts

686,215

Credit

contracts

...............

Swap

contracts

5,772,259

Swap

contracts

(8,529,881)

Total

.......................

$5,447,617

$(14,379,199)

11.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

202

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

At

October

31,

2022,

OTC

derivative

assets,

which

may

be

offset

against

the

Fund's

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

At

October

31,

2022,

OTC

derivative

liabilities,

which

may

be

offset

against

the

Fund's

OTC

derivative

assets

and

collateral

pledged

to

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

.............................

$

1,501,742

$

590,702

Swap

contracts

.......................................

178,808

18,345,294

Total

.............................................

$1,680,550

$18,935,996

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

a

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

BZWS

...................

—

—

—

—

—

CITI

.....................

143,609

(143,609)

—

—

—

GSCO

...................

19,542

(19,542)

—

—

—

JPHQ

...................

1,501,742

(590,702)

(484,321)

—

426,719

MSCO

...................

15,657

—

—

—

15,657

Total

...................

$1,680,550

$(753,853)

$

(484,321)

$—

$442,376

$

1

11.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

203

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

See

Note

1(d)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

208

.

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

period

ended

October

31,

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

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

b

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

Fund

Counterparty

BNDP

...................

$173,336

$—

$—

$(173,336)

$—

BZWS

...................

15,239

—

—

—

15,239

CITI

.....................

18,072,010

(143,609)

—

(17,928,401)

—

GSCO

...................

84,709

(19,542)

—

—

65,167

JPHQ

...................

590,702

(590,702)

—

—

—

MSCO

...................

—

—

—

—

—

Total

...................

$18,935,996

$(753,853)

$—

$(18,101,737)

$80,406

a

At

October

31,

2022,

the

Fund

received

U.S.

Treasury

Bills,

Bonds

and

Notes

as

collateral

for

derivatives.

b

In

some

instances,

the

collateral

amounts

disclosed

in

the

table

above

were

adjusted

due

to

the

requirement

to

limit

collateral

amounts

to

avoid

the

effect

of

over

collateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

11.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

204

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

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

October

31,

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

.............

$

6,316,395

$

—

$

—

$

6,316,395

Media

...............................

1,377,332

—

—

1,377,332

Multiline

Retail

........................

—

—

—

a

—

Oil,

Gas

&

Consumable

Fuels

.............

52,298

7,767,122

—

7,819,420

Management

Investment

Companies

.........

—

178,754,852

—

178,754,852

Warrants

..............................

—

—

—

a

—

Convertible

Bonds

.......................

—

47,435

—

47,435

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

21,531,034

—

21,531,034

Air

Freight

&

Logistics

...................

—

2,935,505

—

2,935,505

Airlines

..............................

—

19,288,826

—

19,288,826

Auto

Components

......................

—

29,138,245

—

29,138,245

Automobiles

..........................

—

8,360,064

—

8,360,064

Banks

...............................

—

135,432,107

—

135,432,107

Beverages

...........................

—

7,045,513

—

7,045,513

Biotechnology

.........................

—

8,856,179

—

8,856,179

Building

Products

......................

—

28,589,349

—

28,589,349

Capital

Markets

........................

—

81,096,941

—

81,096,941

Chemicals

...........................

—

65,279,151

—

65,279,151

Commercial

Services

&

Supplies

...........

—

14,286,071

—

14,286,071

Communications

Equipment

..............

—

5,158,557

—

5,158,557

Construction

&

Engineering

...............

—

2,245,269

—

2,245,269

Consumer

Finance

.....................

—

14,730,675

—

14,730,675

Containers

&

Packaging

.................

—

26,617,563

—

26,617,563

Diversified

Consumer

Services

............

—

6,721,875

—

6,721,875

Diversified

Financial

Services

.............

—

14,359,755

1,603,523

15,963,278

Diversified

Telecommunication

Services

.....

—

37,962,746

—

37,962,746

Electric

Utilities

........................

—

43,965,171

—

43,965,171

Electrical

Equipment

....................

—

9,101,960

—

9,101,960

Electronic

Equipment,

Instruments

&

Components

........................

—

10,413,734

—

10,413,734

Energy

Equipment

&

Services

.............

—

3,930,256

—

3,930,256

Entertainment

.........................

—

15,091,683

—

15,091,683

Equity

Real

Estate

Investment

Trusts

(REITs)

.

—

27,466,967

—

27,466,967

Food

Products

........................

—

9,498,494

—

9,498,494

Gas

Utilities

..........................

—

1,788,847

—

1,788,847

Health

Care

Equipment

&

Supplies

.........

—

6,917,960

—

6,917,960

Health

Care

Providers

&

Services

..........

—

46,028,895

—

46,028,895

Hotels,

Restaurants

&

Leisure

.............

—

35,380,974

—

35,380,974

Household

Durables

....................

—

6,274,657

—

6,274,657

Household

Products

....................

—

9,233,451

—

9,233,451

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

205

franklintempleton.com

Semiannual

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

period.

At October

31,

2022,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Independent

Power

and

Renewable

Electricity

Producers

..........................

$

—

$

49,912,090

$

—

$

49,912,090

Insurance

............................

—

9,206,781

—

9,206,781

Interactive

Media

&

Services

..............

—

15,314,186

—

15,314,186

Internet

&

Direct

Marketing

Retail

..........

—

7,087,484

—

7,087,484

IT

Services

...........................

—

26,381,824

—

26,381,824

Machinery

............................

—

3,508,051

—

3,508,051

Marine

..............................

—

11,953,800

—

11,953,800

Media

...............................

—

60,091,088

—

60,091,088

Metals

&

Mining

.......................

—

13,709,512

—

13,709,512

Multiline

Retail

........................

—

—

—

a

—

Multi-Utilities

..........................

—

9,589,506

—

9,589,506

Oil,

Gas

&

Consumable

Fuels

.............

—

122,873,218

—

122,873,218

Paper

&

Forest

Products

.................

—

11,728,429

—

11,728,429

Personal

Products

.....................

—

7,321,532

—

7,321,532

Pharmaceuticals

.......................

—

33,597,285

—

33,597,285

Real

Estate

Management

&

Development

....

—

13,352,459

—

13,352,459

Road

&

Rail

..........................

—

6,560,660

—

6,560,660

Software

.............................

—

14,056,367

—

14,056,367

Specialty

Retail

........................

—

19,043,710

—

19,043,710

Technology

Hardware,

Storage

&

Peripherals

.

—

1,639,251

—

1,639,251

Thrifts

&

Mortgage

Finance

...............

—

14,549,804

—

14,549,804

Tobacco

.............................

—

14,572,349

—

14,572,349

Trading

Companies

&

Distributors

..........

—

20,934,778

—

20,934,778

Transportation

Infrastructure

..............

—

670,651

—

670,651

Wireless

Telecommunication

Services

.......

—

18,731,159

—

18,731,159

Senior

Floating

Rate

Interests

...............

—

—

—

a

—

Marketplace

Loans

......................

—

—

75,310,374

75,310,374

Foreign

Government

and

Agency

Securities

....

—

160,175,664

—

160,175,664

U.S.

Government

and

Agency

Securities

.......

—

546,570,086

—

546,570,086

Asset-Backed

Securities

..................

—

179,561,332

—

179,561,332

Commercial

Mortgage-Backed

Securities

......

—

16,047,489

—

16,047,489

Mortgage-Backed

Securities

................

—

181,338,427

—

181,338,427

Residential

Mortgage-Backed

Securities

......

—

153,842,817

—

153,842,817

Escrows

and

Litigation

Trusts

...............

—

60,000

—

a

60,000

Short

Term

Investments

...................

37,963,032

54,074,822

—

92,037,854

Total

Investments

in

Securities

...........

$45,709,057

$2,739,354,494

$76,913,897

$2,861,977,448

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

1,501,742

$

—

$

1,501,742

Swap

contracts

.........................

—

447,655

—

447,655

Total

Other

Financial

Instruments

.........

$—

$1,949,397

$—

$1,949,397

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

590,702

$

—

$

590,702

Futures

contracts

........................

7,737,674

—

—

7,737,674

Swap

contracts

..........................

—

12,213,200

—

12,213,200

Total

Other

Financial

Instruments

.........

$7,737,674

$12,803,902

$—

$20,541,576

a

Includes

financial

instruments

determined

to

have

no

value

at

October

31,

2022.

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

206

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

c

Transfer

Out

of

Level

3

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Strategic

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Media

...........

$

28,864

$

—

$

(44,779)

$

—

$

—

$

—

$

—

$

15,915

$

—

$

—

Multiline

Retail

......

—

d

—

—

—

—

—

—

—

—

d

—

Oil,

Gas

&

Consumable

Fuels

..........

—

d

—

(2,534)

—

—

—

(1,255,950)

1,258,484

—

—

Warrants

:

Oil,

Gas

&

Consumable

Fuels

..........

24

d

—

—

d

—

—

—

—

(24)

—

d

—

Software

..........

—

d

—

—

—

—

—

—

—

—

d

—

Corporate

Bonds

:

Diversified

Financial

Services

........

—

—

—

2,297,537

—

(10,398)

—

(683,616)

1,603,523

(683,616)

Multiline

Retail

......

—

d

—

d

—

—

—

—

—

—

—

d

—

Senior

Floating

Rate

Interests

:

Software

..........

—

d

—

—

—

—

—

—

—

—

d

—

Marketplace

Loans

:

Diversified

Financial

Services

........

83,510,806

36,429,734

(41,338,055)

—

—

—

(388,974)

(2,903,137)

75,310,374

(3,385,402)

Escrows

and

Litigation

Trusts

...........

—

d

—

(6,421)

—

—

—

6,421

—

—

d

—

Total

Investments

in

Securities

............

$83,539,694

$36,429,734

$(41,391,789)

$2,297,537

$—

$(10,398)

$(1,638,503)

$(2,312,378)

$76,913,897

$(4,069,018)

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

into

level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

or

as

a

result

of

the

unreliability

of

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

d

Includes

financial

instruments

determined

to

have

no

value.

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

207

franklintempleton.com

Semiannual

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

October

31,

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. 

In June

2022,

the

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

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

Period

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.

$71,612,585

Discounted

cash

flow

Loss-adjusted

discount

rate

2.6%

–

10.8%

(9.1%)

Decrease

c

Projected

loss

rate

6.8%

–

27.7%

(15.0%)

Decrease

c

All

Other

Investments

.

.

.

.

.

.

.

5,301,312

d,e

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.........

$76,913,897

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

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.

e

Includes

financial

instruments

determined

to

have

no

value

at

October

31,

2022.

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

(unaudited)

208

franklintempleton.com

Semiannual

Report

Franklin

Strategic

Income

Fund

(continued)

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

BZWS

Barclays

Bank

plc

CITI

Citigroup,

Inc.

GSCO

Goldman

Sachs

Group,

Inc.

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Cu

r

rency

BRL

Brazilian

Real

COP

Colombian

Peso

DOP

Dominican

Peso

EUR

Euro

USD

United

States

Dollar

Index

CDX.NA.EM.

Series

number

CDX

North

America

Emerging

Markets

Index

CDX.NA.HY.

Series

number

CDX

North

America

High

Yield

Index

CDX.NA.IG.

Series

number

CDX

North

America

Investment

Grade

Index

MCDX.NA.

Series

number

MCDX

North

America

Index

Selected

Portfolio

BZDIOVRA

Brazil

Inter-Bank

Deposit

Rate

CLO

Collateralized

Loan

Obligation

CMT

Constant

Monthly

U.S.

Treasury

Securities

Yield

Curve

Rate

Index

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

LIBOR

London

Inter-Bank

Offered

Rate

MBS

Mortgage-Backed

Security

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

T-Note

Treasury

Note

Franklin

Strategic

Series

Shareholder

Information

209

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

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

210

franklintempleton.com

Semiannual

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

S

12/22

©

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.

Semiannual

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.

N/A

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

codeofethics

(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

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(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

section906

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  December 22, 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  December 22, 2022

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  December 22, 2022